CA Energy Consulting Files Expert Testimony in New Hampshire

Categories: Performance-Based Ratemaking, Rate Design

December 13, 2023 - Nicholas Crowley and Michael Ty Clark

CA Energy Consulting experts Dr. Michael Clark and Mr. Nicholas Crowley filed testimony on December 13, 2023, on behalf of the New Hampshire Department of Energy.

Dr. Clark’s testimony evaluated marginal cost and rate design issues related to an electric utility proposal. Marginal costs can be used to inform rate design as well as allocate revenue requirements. Dr. Clark provided an assessment of the econometric techniques used to estimate marginal costs. Dr. Clark also provided recommendations on rate design topic areas including Time-of-Use, electric vehicle rates, and revenue decoupling.

Mr. Crowley’s testimony assessed an electric utility performance-based regulation (PBR) framework. The framework included a multi-year rate plan and several performance incentive mechanisms. Assessing a PBR plan requires an understanding of how different rate proposal components interact to provide the utility with improved cost efficiency incentives relative to traditional cost of service. Mr. Crowley offered suggestions for improvements to the proposed approach.

Their testimony can be found under Docket DE 23-039 of the New Hampshire Public Utilities Commission.