Concentric conducted research and analysis and provided expert testimony regarding earnings sharing, rate riders, rate design, cost of capital, and cost recovery related to the energy transition for a Canadian electric utility during its 2022 General Rate Application.
Concentric provided expert testimony in support of a new deferral account mechanism titled Decarbonization Deferral Account (DDA). This account would accumulate costs associated with 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-related costs. The DDA was structured to capture and defer the energy transition costs for future recovery as they became known, offering regulators flexibility in determining the appropriate recovery period.
