Baker Tilly’s template rate model addresses unique needs of joint action agency’s electric utility members

Client need

An East Coast joint action agency needed assistance in preparing electric retail cost of service and rate design studies for its member municipal electric utilities.

Baker Tilly solution

Baker Tilly’s specialized energy and utilities team developed a template rate model that could be used to determine each member utility’s revenue requirements with respect to unique circumstances, such as debt covenant requirements, wholesale power discounts through separate agreements with other power providers, impact of increased customer solar distributed generation (DG), and participation in load curtailment programs. Baker Tilly also trained joint action agency staff to utilize the rate model and answer specific rate study questions from stakeholders, including member electric utility boards and city council members.

Results

Through use of Baker Tilly’s template rate model, the joint action agency’s member electric utilities received clarification on issues affecting their electric retail business, such as recovery of energy efficiency or DG program costs and fixed costs due to lost revenues, and deferral mechanisms to recover certain volatile utility operational costs.

For more information on this topic, or to learn how Baker Tilly energy and utility specialists can help, contact our team.