Assisting an investor owned utility meet stipulation requirements for filing a future general rate case

Background

An investor owned utility in the Southwest needed to meet the requirements of a Stipulation resolving its last rate case before filing a future rate case. The Stipulation required the design of rates and cost allocation mechanisms for certain large commercial and industrial customers. Needing an outside expert to lead and facilitate the process, the company asked MCR for assistance.

Solution

We worked with our client on several key items, including developing an analysis of the rate impact and rate studies, as required in the Stipulation, for discussion with the customers. The analysis compared the rate designs using embedded and marginal cost studies as the basis. We prepared rate options and facilitated discussions with customers to solicit their input and gain alignment on issues, including appropriate seasonal and time-of-use peak periods, load shifting and energy efficiency disincentives.

Results

The requirements of the Stipulation were completed and the client received favorable feedback from the customers about the rate design meetings. The project positioned the client to focus on addressing its greater upcoming issues involving generating resource mix, cost allocation and revenue requirements for its upcoming rate proceeding.