In light of recent goals established in New York State related to decarbonization of the natural gas industry, two clients engaged Concentric to provide support on this complex issue.
Concentric is working with New York’s large investor-owned LDCs to draft comments related to integrated planning for natural gas utilities. One of the LDCs has separately engaged Concentric to prepare an assessment of the potential impact of decarbonization on system throughput, revenue requirements, customer bills, utility financial circumstances, and depreciation rates.
Concentric developed a financial model linked to a detailed depreciation model and was able to assess the impact of alternative “Economic Planning Horizon” (EPH) assumptions on customer bills and utility rate base under alternative throughput scenarios. We also evaluated the ability to address fixed cost recovery challenges using deferral, securitization, and trust fund policy tools.
