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Energy | Services

Regulatory and public policy

Cost allocation and rate design

Regulated companies, regulators, and politicians are increasingly concerned that regulated prices and tariffs provide the right economic signals to customers and investors. Bates White has expertise in cost allocation methods and rate design in all regulated industries. We have been involved in all types of rate cases, from the meticulous allocation of costs in cost-of-service anaylsis to the complexity of setting end-users tariffs using methods such as marginal cost, LRIC, zone-gate, mcf-mile, and others. We have developed tariff models for a large number of clients. Many of these models have been adopted as industry standards in the countries where they were implemented.

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Areas of expertise
Market design and competition
Regulatory policy and strategy
Asset valuation and investment strategy
Cost allocation and rate design
Revenue requirement
Prudence
Incentive regulation and passthrough mechanisms
Rate of return
Depreciation analysis
Econometric studies