We provided the client with extensive analysis and expert evidence relating to its next generation Incentive Regulation (“IR”) Plan proposal. Our role included conducting an assessment of relevant regulatory precedents in select North American jurisdictions pertaining to IR plans and researching productivity factors and methods established in other jurisdictions for estimating utility productivity.
The research found that a variety of IR frameworks have been implemented over the past two decades in the U.S. and Canada. Four basic approaches have been utilized: multi-year “fixed” rate plans (or “rate freeze”); I-X plans; building block ratemaking; and targeted rate adjustment mechanisms.
Our analysis was filed in the client’s base rate case and its IR proceeding, which included defending the study through written discovery and oral technical conferences and hearings. The client’s proposed IR plan was accepted by its regulator in July 2014.