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What We Do

Transmission Formula Rate Analysis

Formula rate review for existing transmission owners

MCR conducts reviews of transmission formula rates, (MISO Attach. O, & SPP/PJM Attach. H) to substantiate costs and optimize revenue.

Development of annual transmission revenue requirements (“ATRR”) for new transmission owners

MCR develops cost data to support full RTO revenue recovery for new transmission owners (“TOs”), which involves, for example, developing MISO’s Attachment O, and Attachment H in SPP and PJM. In addition, MCR develops and reviews client updates to annual formula rates and defends client updates against challenges from neighboring utilities, as appropriate.

Review/Challenge to incumbent formula rate costs

MCR reviews neighboring utility transmission costs or RTO cost calculations to ensure transmission charges are appropriate.

Staff education workshops on formula rates

MCR conducts workshops to educate client staff on formula rates and the implications of business changes on ATRR.

FERC Filings

Section 205 rate filings and testimony

MCR provides expert FERC testimony for Section 205 rate filings, including new ATRR filings related to joining an RTO. Our expertise includes testimony and formula rate template development/changes.

Transmission incentive rate filings and testimony

MCR provides analytics, formula rates and testimony for transmission incentives rate applications to FERC. This includes requests for hypothetical capital structure, CWIP, abandoned plant and regulatory asset.

Cost of capital expert testimony

MCR provides expert testimony and analytics to support proposed cost of capital for new and existing formula rates for public power and cooperatives, including margin requirement, ROE and capital structure.

Intervention and settlement support

MCR provides our clients analytical and intervention response support during intervention, settlement, mediation and hearings.

James Pardikes Direct FERC Testimony Experience

James Pardikes Experience Statement

Strategic Economic Analysis

Development of transmission business plans

MCR works with clients to define transmission business plans that lead to running transmission as a business. This work includes identifying transmission-related issues, developing strategies to address priority issues, and identifying transmission projects, including providing analytic/economic support for proposed projects.

Economic evaluation of new transmission projects

MCR analyzes cash flows of proposed transmission projects. MCR’s Transmission Project Evaluation Tool™ highlights how value is created under various cost allocation and recovery scenarios and helps prioritize capital.

RTO membership evaluations

MCR conducts economic analysis using MCR’s RTO Evaluation Model™ to assess whether to become a transmission owner in an RTO.

Analysis of joint zone investment and 7-factor tests

MCR provides analytical support in negotiations with incumbents on the appropriate share of eligible transmission investment in a joint pricing zone. In addition, MCR works with our clients to assess the eligibility of their transmission assets under RTO tariffs, including conducting analyses under the FERC 7-factor test.

Analysis of the potential purchase or sale of assets

MCR conducts strategic and financial analysis related to value created from buying or selling transmission facilities. MCR provides various valuation techniques to assess the market value of transmission assets under various market/competitive environments.

Transmission Cost/Rate Competitiveness

Peer cost comparison by FERC account

MCR conducts transmission cost comparisons with peer utilities by FERC account for transmission owners to identify potential areas warranting cost reduction and/or differences in the recording of costs.

Rate strategy and transmission revenue forecasting

MCR develops forecasts of ATRR and transmission rates for its clients to assess their rate competitiveness and better understand the levers to manage future rate increases. ATRR forecasts are developed under various transmission investment scenarios. Analyses also include evaluating generator interconnection investment options such as utility-funded and customer-funded investment.

Transmission capital investment and metric comparisons

MCR maintains a proprietary database of transmission capital investment, load and comparative cost metrics for TOs and industry segments in various RTOs. This information provides analytical support in cost competitive analyses, MCR expert testimony in FERC filings and in negotiations with incumbents on the appropriate share of transmission investment in a joint pricing zone.