The Cost of Service Tool (COST™) is the newest addition to MCR’s suite of spreadsheet applications. COST™ is ideal for regulatory professionals seeking to provide greater transparency to regulators, intervenors and other stakeholders. The modeling tool also provides flexibility for in-house scenario analysis and rate design options. Built in Microsoft Excel, COST™ is a fully functional cost of service model with open logic for audit, review and user editing.
MCR works with our clients to determine the best approach to cost of service. We offer a few options for rolling out our Cost of Service Tool (COST™), including licensing the model along with additional consulting support. Download our brief overview, Cost of Service Options for Utilities, to learn more about these alternatives.
The use of Alternative Ratemaking Mechanisms (“ARM”) is not a new concept. Yet, despite its solid record of being beneficial to utilities, regulators, and stakeholders, it has historically had a slow level of adoption by many states. That has now changed, and we are entering a new regulatory age: The Age of ARM. Even states that have been extremely reticent to shift away from the traditional rate design methodology are now moving to embrace the use of alternative ratemaking. Whether or not your state has adopted the use of ARM, it is important to consider ways in which these mechanisms could create both opportunities and challenges.Download the ARM paper
In this era of increasing regulatory transparency and the need for innovation in rate design alternatives, utilities must have a state-of-the-art cost of service model to perform the necessary analyses. MCR recently conducted a survey of utility regulatory professionals on what they see as the “Top Five” key features that are required of today’s cost of service models. MCR’s Cost of Service model was developed to address these key features.Download the Cost of Service point of view
Are the decommissioning and ash pond closure activities for shuttered coal plants causing management distractions and cost overruns? If so, Environmental Liability Risk Transfer (Risk Transfer) can provide a fixed cost solution to transfer the obligations and risk of decommissioning activities to a third party. Additionally Risk Transfer can create a viable redevelopment plan for the site, thereby creating goodwill with the community, ratepayers and regulators.
Join MCR Performance Solutions and Forsite Development Inc. for a free webinar discussing the benefits of Risk Transfer. We will discuss a number of aspects of this process, including:
We will also take real-time questions from the audience. We hope you’ll join us!
August 15, 2017
12:00pm (Central time)
About Cindy Menhorn, MCR Performance Solutions
Cindy is a Vice President of Regulatory Services at MCR. She has over 30 years of experience in rates, energy efficiency, load research, revenue forecasting, cost allocation and regulatory affairs, including work on over 80 rate cases and testimony before numerous state commissions. She has directed a multifunctional rate department, managing all aspects of electric rate case development, including development of revenue requirements, cost of service studies, revenue allocation and rate design, rate case strategy, testimony development and interrogatory response development.
MCR is a management consulting firm specializing in the electric, natural gas and water utility industries. MCR helps clients achieve superior performance through innovative and effective solutions in their strategies, operations, processes, finances, forecasting, organizational designs, economics, testimony, and business cases. Our practices include Regulatory Services, Energy Efficiency, Transmission Strategy, Nuclear Generation, Financial Advisory and Utility Transformation Services. For more information, please visit www.mcr-group.com.
About Tom McKittrick, Forsite Development
Tom is the President / founder of Forsite Development, Inc. and manages all aspects of the company’s operations. Tom started Forsite in December 2004 with the idea that there was a significant supply of vacant corporate surplus industrial facilities throughout the Southeast that could be acquired aggressively and then repositioned.
Forsite Development has redeveloped 7 million square feet of facilities on 3,000+ acres in North Carolina and South Carolina, and created or preserved more than 1,000 jobs. Forsite has performed Risk Transfer transactions on a variety of sites including: coal fired power plants, chemical plants, and metal plating facilities, among others. Forsite was recently chosen to demolish and redevelop two Consumers Energy coal plants in Michigan. For more information, please visit www.forsiteinc.com.
MCR works jointly with clients to perform a complete and exhaustive review of each rate schedule. At the end of this review, we provide our clients with a report that includes an analysis of each rate schedule with findings, professional insights and recommendations for improvement.
MCR and its team of experts have performed these types of reviews for decades. We believe any utility company with a tariff should consider this review: electric, natural gas and water IOUs; municipals and cooperatives; companies in the midst of merging with or acquiring new entities; and companies with distribution tariffs, supplier tariffs or bundled tariffs.
For more information about tariff reviews, check out the presentation given by MCR and TECO at the 2016 spring meeting of the EEI Rates and Regulatory Affairs Committee.Click here for downloadable PDF
For the past two decades (at least), distributed generation (DG) supporters (or perhaps better put, evangelists) have predicted that the dramatic rise of DG, and conversely the dramatic fall of utilities as we know them, was just around the corner. All that was needed was an additional tax credit (or two) to get the ball rolling towards the economies of scale that would drive costs down and drive demand up. But little happened – until now.Download the distributed generation white paper
The traditional electric utility business model successfully served customers, regulators and shareholders for well over 100 years. The model was simple. An increase in sales corresponded to customer growth and an upward trend in use per customer. Utilities responded by investing in more utility plant and supporting infrastructure, then filed rate cases on the new level of rate base. Revised rates provided new revenue and cash flow, which helped earnings grow. As long as sales continued to grow, the business model worked beautifully. Yes, as long as sales continued to grow …Download the ratemaking approaches white paper
MCR provides services to enhance our clients’ abilities to present and advocate their positions in regulatory proceedings. MCR educators pull from their own experiences presenting and supporting expert testimony on behalf of clients before numerous state regulatory bodies and FERC. Additionally, MCR conducts seminars, workshops and mock trial training exercises to enhance the effectiveness of rate departments and in-house fact, policy and expert witnesses.
Our program, “Becoming a More Effective Witness,” provides a comprehensive approach to developing and refining communication skills. It combines classroom instruction, workshop activities and mock hearing experiences. The class addresses the theory, application and practice of effective witness skills and techniques. It also provides practical guidance to prepare and present every phase of testimony. “Becoming a More Effective Witness” focuses on the unique challenges of presenting testimony before a regulatory body.Download the witness effectiveness course brochure
A number of MCR’s clients have expressed a need for a comprehensive ratemaking course for their internal regulatory teams. While there are certainly a number of existing alternative rate classes to choose from, they don’t always fit a utility’s needs because they:
MCR’s “Contemporary Ratemaking” training course addresses the issues mentioned above and helps our clients increase their staff’s understanding of the regulatory process and enhance their skills in becoming better cost of service and rate design professionals.
The course is customized to meet our client’s specific needs, including those from rates, legal, accounting and operations. Some of the participants are relatively new to rates and regulation and others are more experienced. To meet the needs of both, the course is held over multiple days and is designed to cover the fundamentals, advanced ratemaking and hot topics.