Drawing on the firm’s cost analysis and modeling expertise, as well as its extensive experience in utility price regulation, PBA prepares studies of utility revenue requirements and service-specific cost studies for its clients. In addition, PBA prepares Rate Design and Cost of Capital analyses for its clients. These analyses are used in support of client positions in regulatory proceedings, for internal analyses of pricing and cost recovery options, for determination of cost-based affiliate transaction prices and as cost bases for high cost funding support, among other applications.
In the course of providing these services PBA often develops mechanized models for clients’ ongoing applications in areas such as cost allocations between regulated and unregulated activities, jurisdictional cost allocations, and service-specific cost calculations for end user and affiliate transaction prices. Results from such revenue requirement, cost of service, rate design, and cost of capital analyses often are used in support of rate proceedings, tariff filings, regulated earnings reviews and regulatory accounting compliance.
Revenue Requirements, Cost of Service, Rate Design, and Cost of Capital Analyses: