A Midwestern electric utility needed to develop and file for approval of a regional transmission tariff application to value newly acquired electric transmission assets according to Federal Energy Regulatory Commission (FERC) requirements.
Baker Tilly solution
Baker Tilly’s energy and utilities team developed a regional transmission rate tariff utilizing a cost-based methodology, which involved gathering details of the utility’s transmission system at the individual asset level (i.e., quantity, age/condition) and determining a replacement price of the asset using the Handy-Whitman Index. We then performed an electric revenue requirement analysis with a cash flow projection, cost of service and rate design study.
Through Baker Tilly’s assistance, the electric utility gained regulatory approval of the tariff to charge its transmission customers. It was also able to update its retail customer collection rates.
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