MCR conducts reviews of transmission formula rates, (MISO Attach. O, & SPP/PJM Attach. H) to substantiate costs and optimize revenue.
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.
MCR reviews neighboring utility transmission costs or RTO cost calculations to ensure transmission charges are appropriate.
MCR conducts workshops to educate client staff on formula rates and the implications of business changes on ATRR.
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.
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.
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.
MCR provides our clients analytical and intervention response support during intervention, settlement, mediation and hearings.
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.
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.
MCR conducts economic analysis using MCR’s RTO Evaluation Model™ to assess whether to become a transmission owner in an RTO.
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.
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.
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.
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.
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.