Assisting an investor owned utility provide reasonable rate options to its industrial customers

Background

A large electric utility had not filed a general rate case in more than 20 years. The industrial customers had been utilizing a real time pricing rate design and time of use tariff that had not changed in a number of years. In anticipation of a general rate case and a need to review rate alternatives with their large customers, the company requested MCR provide an overview of current rate alternatives, regulatory approvals, and an assessment of the utility’s rate menu for large customers.

Solution

MCR provided a pre-fling review of IOU electric utility large customer rates across the country, recent tariff changes, regulatory approvals and current “hot trends” for these types of customers. Working with the client’s pricing staff, MCR provided an assessment of tariff options currently being offered by the utility and alternatives that may or may not be included in the tariff options. In collaboration with the client staff, MCR also surveyed representatives of the large customer rate class on their experience with the existing rates and rates being offered to their companies’ facilities in other areas of the country.

Results

MCR was able to confirm and provide documentation showing the utility was offering the majority of rate options that other large customers across the country had available to them, giving the customer assurance the existing rate and pricing structure was still relevant. Our client was able to utilize this information in its general rate filing and during negotiations and settlement with the large customer participants in the rate case.