Utility Ratemaking & Regulation
We have performed tailored economic and financial analyses, market-structure studies, rate designs, resource evaluations, and power-sector modeling related to utility ratemaking, asset investment, competitive procurement, and performance-based regulation. This work includes expert testimony and policy comments before state and federal regulatory commissions, and preparation of white papers and workshops.
We combine analytic capabilities in energy economics and regulatory policy with strong communications skills and experience in public agencies involved in regulation.
Our professionals have analyzed new business and regulatory designs to assess investment in utility generation, transmission and distribution infrastructure, planning processes and pricing, market designs, and strategic risk assessment of utilities and regional transmission organizations.
Our analyses of utility ratemaking have focused on:
- Assessments and benchmarking of service quality, utility costs, cost allocations, and rate designs
- Advanced ratemaking mechanisms, including performance-based ratemaking, revenue decoupling, capital cost trackers, incentive regulation, and other rate-adjustment mechanisms
- Assessment of the implications of ratemaking outcomes for utility financial condition
- Cost-allocation policies and approaches for transmission investment
- Regulatory policies related to cost-of-service items, including test-year selection and the appropriateness of different cost-recovery mechanisms
- Property taxation and regulatory treatment of various types of utility assets
- Evaluation of other economic and financial dimensions of utility rate proposals
We have also been actively involved in other utility regulation, including:
- Regulatory policies for power resources, including energy efficiency and renewable energy
- Competitive power procurements
- Methods for assessing the value of utility rights of way
- Screening for market-based rate authorities in wholesale electricity markets
