Our Services

Rate design and cost of service (Phase 2)

  • Design rates for various customer classes

  • Allocate costs to various customers

  • Methods for recovering utility investment

Depreciation and net salvage

  • Depreciation and net salvage studies

  • Analysis of different methods of cost recovery

  • Depreciation curve analysis and recommendations

Cost of capital

  • Return on equity and debt analysis

  • Capital structure assessment

  • Fair value rate base, AFUDC and CWIP in rate base assessments

 

Cost-of-service and incentive based regulation (Phase 1)

  • Development of cost-of-service and incentive-based ratemaking schedules and rates

  • Design elements of the chosen framework

  • Alignment with core regulatory/ratemaking principles

IFRS/US GAAP

  • Advice on IFRS and US GAAP rules specific to the utility industry

  • Assessment of compliance with standards and industry trends

  • Alignment between regulatory and financial principles

Income taxes

  • Calculation and analysis of deferred and current taxes

  • Strategic considerations to minimize taxes and variance from forecast

  • Cost recovery methodologies within rates

Forecasting of costs

  • Analysis and development of all components of applied for revenue requirement

  • Provision of evidence and testimony on discrete operating costs, capital, income taxes, depreciation, and revenue offsets

  • Assessment of costs against benchmarks and budgeting approaches (i.e. zero-based budgeting)

Prudence assessments

  • Analysis of and development of support to assess the prudence of costs and management decisions

  • Risk assessment of decisions

  • Development or assessment of decision-making frameworks to support key decisions and costs incurred

Deferral and reserve accounts

  • Assessment of deferral criteria and need

  • Mechanics for accumulation and recovery of costs

  • Analysis of regulatory principles including intergenerational considerations related to deferral

 

Business valuations

  • Fair market valuations, including fair value rate base assessments

  • Replacement cost new less depreciation and reproduction cost calculations

  • Assessment of purchase price and goodwill implications on utility rates

  • No harm test assessments of utility purchases

Capital expenditures

  • Analyze or develop estimates of capital costs

  • Prepare or assess evidence supporting the need for specific capital programs

  • Provide information on cost and approach to capital programs, including benchmarking and best practices

Other services

  • Various other management advisory services including business planning, succession planning, staffing decisions, and treasury management

  • Strategic advice offered on unique utility specific issues, including recommendations on how best to address each issue