Nearly all utilities – water, power and natural gas – are under pressure from regulators or government officials to keep rates low. At the same time, customers are demanding service providers show value for the utility rates paid.
- Local natural gas distribution companies (LDCs) are working to enhance safety and reliability through methodical capital programs that prioritize aging infrastructure replacement based on risk.
- Electric utilities have unique challenges as well. The more than 100-year model of central plant generation with one-way transmission and distribution is becoming obsolete.
- Stronger justification for decisions related to utility investments in Advanced Metering Infrastructure (AMI) and smart grid programs require detailed cost/benefit analyses and business cases that can be supported before regulators and other stakeholders.
- For water and wastewater utilities, addressing declining consumption, aging infrastructure and meeting environmental requirements requires new approaches to rate development that integrates with capital budget planning.
More than 80 percent of our utility rate study engagements are from repeat clients, confirming our partnership approach, the quality of our work, the value we bring to our clients, and our commitment to project schedules and budgets.
Black & Veatch’s utility rates and regulatory services provide clients with integrated financial plans and rate case and regulatory strategies that balance system renewal with overall costs while preserving and growing revenue streams that provide for capital funding. We help our clients justify investments through our financial efficiency and risk quantification capabilities. We demonstrate to regulators, customers and other stakeholders the value each investment provides.
Specific services include:
- Utility user fee program development.
- Innovative utility ratemaking strategies.
- Rate case management and support.
- Expert testimony and energy litigation support.
- Technology-related cost/benefit analyses and business cases.
- Regulatory compliance assistance.
- Integrated financial and capital planning.
- Operations efficiency and business transformation.
- Distributed Generation Cost Analysis.