Concentric provided research, analysis, and expert testimony on the issues of earnings sharing, rate riders, rate design, cost of capital, and Energy Transition-related cost recovery to a Canadian electric utility in its 2022 General Rate Application.
Concentric provided expert testimony in support of a new deferral account mechanism—the Decarbonization Deferral Account or DDA—that would accumulate costs related to the transition to renewable energy, including accelerated depreciation on thermal assets and related infrastructure, incremental accretion expenses related to decommissioning, renewable energy costs, employee transition costs, and potentially other transition costs. The DDA was structured to capture and defer these Energy Transition costs for future recovery as they became known. It provided the regulator with flexibility in determining the appropriate recovery period.
