MCR works with clients to develop a regulatory strategy that will be sustainable in the long run. We carefully examine the nature of expected short-term and long-term changes to both costs and revenues; and, then we identify alternative potential regulatory strategies addressing the specific circumstances that each client faces.
MCR provides pre-filing reviews of regulatory petitions, pre-filed testimony, tariffs, exhibits, and minimum filing requirements before submission to regulatory commissions. MCR’s experienced professionals bring a wide variety of regulatory and ratemaking experiences; our clients benefit from our constructive reviews and recommendations on improvements to proposed filings. Conducting fully independent pre-filing reviews improves filings and builds more compelling cases for the desired regulatory outcomes.
MCR helps clients develop successful rate case strategies for state jurisdictions and the Federal Energy Regulatory Commission (FERC). We help evaluate the decision to file a case, define overall objectives, support the underlying rationale, prepare supporting analysis of regulatory issues, and determine the optimal timing for cases. MCR also provides an assessment of the probability of full or partial recovery and quantifies the financial implications using our proprietary risk analytic models.
MCR works collaboratively with clients to provide customized revenue enhancement strategies, based on corporate goals and the client’s existing regulatory environment. We leverage our regulatory and financial expertise to ensure viable opportunities are offered without sacrificing customers or customer experiences. MCR’s process involves facilitating client team discussions, strategically thinking through options and analyzing the viable ones; choosing the service(s) that provide(s) the greatest revenue potential; and developing a regulatory plan to gain approval for the offerings while ensuring the services align with corporate objectives. The resulting revenue enhancement strategy provides an actionable plan for our clients to achieve increased revenue opportunities.
MCR works with clients to develop regulatory filings that allow recovery of revenue requirements through a variety of traditional and alternative mechanisms, including straight fixed variable rates, decoupling, weather normalization, forward-looking test years, special riders, and formula rates for changes in infrastructure and operating costs. MCR helps clients determine the mechanisms that fit our clients’ specific circumstances and works to develop regulatory filings based on solid justifications to support the selected approaches.
MCR develops studies to allocate rate class revenue requirements and to design specific rate components. We have the ability to develop embedded and marginal class cost of service studies. We also prepare studies for revenue requirement calculations, and seasonal and time of use pricing. We develop sustainable solutions that adapt to changing market conditions, achieve new regulatory and pricing objectives, and match cost recovery with cost causation.
MCR develops analyses that are based on decades of experience and industry best practices. Our final report includes an analysis of each rate schedule with findings, professional insights and actionable recommendations, leading to improved consistency across all tariffs. When tariffs are analyzed by an independent organization, utilities gain better control over the process outside a formal rate case proceeding.
MCR facilitates the development and management of rate and regulatory cases at both the state and federal levels. We provide support and guidance in overall process management, prioritize and address key issues, develop structure and strategy of supporting studies, refine testimony and exhibits, administer the flow of interrogatories and other discovery requests and responses, and manage the filing of required schedules and work papers.
MCR staff supports clients in preparing and providing testimony; our expert contributions enable utilities to succeed in response to regulatory and market changes. MCR staff has successfully testified regarding revenue requirements, cost of service, rate design and alternative ratemaking. Our staff members have presented and supported expert testimony on behalf of clients before state regulatory bodies and FERC.
MCR offers training courses in ratemaking, regulatory accounting, and witness effectiveness. Our Understanding Ratemaking course covers the fundamentals of ratemaking, advanced ratemaking, and contemporary topics in ratemaking. Similarly, MCR’s Regulatory Accounting class helps bridge the understanding gap between traditional GAAP and regulatory accounting requirements. Our Becoming a More Effective Witness course is customized for participants who have been designated a role in an upcoming hearing and need to understand how to become an effective witness.
MCR combines its regulatory experience with its energy efficiency experience to support our clients in these types of filings. From developing and defending load potential studies, to designing programs, to the nuances of setting incentive levels and applying cost effectiveness tests, MCR professionals are able to develop or review energy efficiency plans and create needed regulatory filings and justifications. MCR also has experience working through EM&V processes and dealing with state-wide evaluators to ensure program results are presented in a manner that supports proper credit for the results achieved.
MCR assists clients in interpreting and developing a systematic approach to ensure proper rate schedule determination for your customers. Through our rate option review and analysis services, we help our clients proactively provide outreach to their customers. Utilities benefit from this offering through improved relationships with customers and regulators.
MCR helps our clients develop and implement this process, as well as assist with specific tasks within the process. We review and evaluate drafts of legislation and regulations, and prepare comments and opinions regarding impacts to the client. MCR has advocated client interests before state regulatory commissions while coordinating regulatory efforts across corporate functions. MCR’s experiences cover a wide array of topics, such as deregulation and re-regulation drafts, RTO formation, energy efficiency and demand response program development, FERC transmission issues, advanced metering, distributed generation, microgrids and electric vehicles. MCR collaboratively works with our clients on creating policy and regulatory positions, while developing advocacy strategies that align with corporate strategies.
MCR works jointly with clients to assess the appropriateness of their load forecasting process and supporting models, and to identify any opportunities for improvement. This analysis can include a granular level review of a client’s requirement of data collection or a macro-level assessment of load forecasting that ultimately supports power supply requirements. MCR’s assessment can include a benchmarking study of our client’s peers, which provides our clients meaningful comparisons to their peers.
During the review, MCR documents how the existing forecast is used, compares the forecast’s historical accuracy vs actual experience on the system and benchmarks these results against peers. We also document data sources, assumptions, and models. MCR conducts interviews with senior management and staff to gauge expectations regarding the forecast. We develop a summary of the load forecasting process and provide recommendations for improvements, which we present to the client.