CA Energy Consulting Experts File Testimony in New Hampshire

Categories: Performance-Based Ratemaking, Rate Design

January 24, 2025 - Nicholas Crowley, Dan McLeod, and Michael Ty Clark

CA Energy Consulting experts Mr. Nicholas Crowley, Dr. Daniel McLeod, and Dr. Michael Clark filed testimony on January 24, 2025, on behalf of the New Hampshire Department of Energy.

Dr. Clark’s testimony evaluated the cost-of-service studies (embedded and marginal) and rate designs related to an electric utility’s general rate case proposal. Embedded and marginal costs can be used to inform rate design as well as allocate revenue requirements. Dr. Clark provided an assessment of the methods used, including an evaluation of the need for weather adjustments to test year sales. Dr. Clark provided recommendations on rate design topic areas including Time-of-Use and revenue decoupling.

Mr. Crowley and Dr. McLeod filed joint testimony assessing an electric utility performance-based regulation (PBR) framework. The framework included a four-year indexed cap and two performance incentive mechanisms. The distribution utility also proposed to operate under a capital supplement known as K-bar. Mr. Crowley and Dr. McLeod explained the benefits and drawbacks of employing K-bar relative to other capital supplement options, and outlined an alternative—known as the F factor—to provide the New Hampshire Public Utilities Commission with another option.

Their testimony can be found under Docket DE 24-070 of the New Hampshire Public Utilities Commission.