Services for the integrated, generation, transmission, distribution, or retail Utility
Some jurisdictions have public vertically integrated utilities while others have unbundled into generation, transmission, distribution, and retail.
Usually generation and retail areas have been deregulated while transmission and distribution areas are regulated.
The Regulator ensures competitive markets in generation and retail areas by establishing rules and monitoring compliance.
The Regular acts as a proxy for competition in transmission and distribution areas.
The Regulator reviews prudency of utility investments and expenditures, and provides incentives for continuous improvement in efficiency.
NextEra Insights supports utilities in maximizing profits while complying with all regulatory requirements.
We can lead or assist the utility in following areas:
Revenue requirement or phase 1
Rates or phase 2
Regulated Utility is required to obtain approval of rates it would charge to its customers to collect its approved revenue requirement. This involves determining functionalization, classification, services, rate classes, cost share, benefit share, allocation, economic efficiency, rate design, bill impact, and implementation.
(Integrated Resource) Planning
Need or Permit & License
Regulated Utility is required to obtain approval of its major capital investment by filing a need or permit & license application. This involves establishing the need on technical or economic basis, presenting all viable options, comparison on lifecycle cost basis, and detailed design and cost estimate for the preferred option.
Deferral account reconcilliation
Regulated Utility’s revenue requirement and rates are approved on test years i.e. forecast basis. Any variance between forecasts and actuals is disposed in deferral account reconciliation i.e. true up application. This involves obtaining Regulator’s approval of the true up methodology and then apply it to the Regulator’s satisfaction.
Regulated retail rate
Most jurisdictions with retail competition require a Utility to act as retailer of last resort by offering a regulated retail rate option to all consumers. The Regulator sets the rules on how this regulated retail rate is to be calculated, The Utility complies with these rules by filing energy price setting plan and then monthly rate.
The Utility is subject to multitude of regulatory and legal obligations from economic regulator, environmental agency, system operator, market, industry, suppliers, and customers. The obligations are quite varied in nature – engineering, economics, planning, project management, operations, commercial, financial, or contractual.