Pricing, Rate Design, and Rate Regulation

La Capra Associates offers broad experience in traditional cost of service regulation and rate design and in more complex rate making issues that have arisen recently with restructuring of the electric industry.

We have developed and sponsored entire tariffs for utilities and also critiqued other utility tariffs for other stakeholders. In addition to rate design, we have experience with utility cost classification, functionalization and allocation. We have also participated extensively in rate unbundling and cost recovery cases. We have worked for dozens of consumer advocates, user groups, cooperative utilities and investor-owned utilities, and have provided expert testimony in all areas of utility ratemaking


REPRESENTATIVE PROJECTS & CLIENTS

Cost Allocation and Rate Design for Georgia Public Service Commission
La Capra testified for Staff in a Savannah Electric Power Company rate case, in which the addition of a new power plant was the major cause of the case. Our testimony addressed the allocation of power costs, the use of a minimum distribution system, and rate design.

Cost Allocation and Rate Design for Groton Utilities/Bozrah Light and Power
We developed class unbundled rates that could be charged for separate services for Groton Utilities. The utility board accepted our recommendations. In addition, we designed standby and exit rates for the utility and for Bozrah Light and Power.

Open Access Transmission Pricing for Various Clients, Including the Pennsylvania Office of the Consumer Advocate
La Capra provided expert testimony in a FERC case concerning (1) the cost-shifting impact of the proposed Seams Elimination Charge Adjustment on customers in the original PJM states, and (2) the long-run development of interregional transmission pricing regarding proposals to eliminate Regional Through or Out Rates for MISO and PJM.

Unbundling Retail Rates for Arizona Corporation Commission
La Capra has helped the staff of the ACC in the development of unbundled rates as part of restructuring, review of rate case applications, cost recovery proceedings, and a utility merger. We managed the development of unbundled rates for the twelve regulated utilities in Arizona, including both investor-owned and cooperative utilities.

Cost Recovery Proceeding on Behalf of Oklahoma Industrial Energy Consumers (OIEC)
La Capra is currently assisting the OIEC with a requested rate increase by Oklahoma Gas & Electric (OG&E). The rate increase request stems in part from the utility’s acquisition of a power plant from a merchant energy company. La Capra is assessing the prudency of the asset acquisition and developing expert testimony on behalf of the OIEC.