The staff of Energy Economics Consulting Corporation (“EECC”) are recognized experts in the field of retail rates. The firm's expertise is derived from years of consulting experience in the area of retail rates. The firm also has a proprietary cost-of-service and rate study program (COSARS™) that it utilizes in providing its rate services. COSARS™ is a comprehensive integrated model used to prepare fully allocating, unbundled cost-of-service and rate studies.

EECC's Retail Rate Services include allocated cost of service and rate studies, innovative rate design, demand side management rates, unbundled cost of service studies, expert witness and industrial rate negotiation.

Retail Rate Design

It has been said that retail rate design is as much an art as it is a science. The staff of EECC has years of experience in customizing rates based on the priorities of its clients. Factors that are considered in the rate design process include; subsidy/excess reduction, marginal cost pricing, incentive pricing, cost causation, and competitive analysis with neighboring utilities. EECC evaluates each of these components, along with specific issues that are unique to our clients, in order to develop rates that meet the needs of our clients.

Allocated Cost-of-Service Study

The methodology employed in COSARS™ is principally based on the general concepts and guidelines stated in the Electric Utility Cost Allocation Manual as prepared by the National Association of Regulatory Commissioners. The purpose of the unbundled cost-of-service study is to allocate revenue responsibility among the various rate classes as well as to determine the appropriateness of the rate design within each class.

An unbundled cost-of-service is the functionalization, classification and allocation of plant and expenses to various rate classes using methods consistent with generally accepted guidelines. Functionalization is the process of categorizing plant and expenses into the following groups; production, transmission, sub-transmission, substation, primary 3-phase, primary 1-phase, secondary 3-phase, secondary 1-phase, meters 3-phase, meters 1-phase, metering & billing, and consumer services. Classification is the process of separating the functionalized plant and expenses into demand, energy and consumer related components. Finally, allocation is the process of allocating these components to the various rate classes. The result is an allocation of revenue responsibilities and subsequent determination of subsidies and excesses being paid by the individual rate classes.