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Developing transmission rate incentive filings at FERC for a joint action agency


“MCR is very good at explaining complex issues, which led to good, effective testimony … they were willing to take on challenges that I don’t think other consultants would be willing to do. Yet, they were able to help us stay disciplined and realistic about what strategies we should be willing to take on … with their help, we were successful attaining what many people in the industry considered precedent setting outcomes.”

—CEO


 

Background

A joint action agency decided to invest in a major new transmission project with other surrounding utilities. The economic advantages for its members, however, were dependent on receiving transmission rate incentives for the project, including a hypothetical capital structure, abandoned plant cost recovery, recovery of construction work in progress in rate base and the establishment of a regulatory asset for deferred costs. MCR was asked to oversee the filings.

Solution

We worked closely with our client and their Washington-based legal counsel on multiple required filings. MCR developed the filing outlines, drafted testimonies sponsored by the client and by MCR, and provided the required changes to the standard templates to implement the changes in the pro forma formula rate. MCR provided ongoing intervention support during the process, including mediation and settlement discussions with interveners, RTO tariff staff and FERC staff on select issues.

Results

The Commission issued very positive rulings. Mediation and settlement discussions led to agreements that were also favorable to our client. MCR and our client subsequently worked closely with the RTO to implement the rulings.