Public Utility Rate Regulation
BWMQ advises clients regarding the complex arena of regulatory policies and procedures in the development of cost-based rates, market-based rates, tariff provisions, asset acquisitions, depreciation & negative salvage rates, terminal decommissioning rates, and tax allowances.
Cost-Based Rates
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Establishing Rate Base -
Allocation and Rate Design -
Setting Return on Equity -
Calculating Cost of Debt -
Estimating Terminal Decommissioning -
Setting Depreciation Rates -
Deriving Corporate Taxes -
Functionalizing Costs
Market-Based Rates
To gain FERC approval to charge market-based rates, an applicant must file a detailed market power study demonstrating that it lacks market power and that its customers have sufficient alternatives or that it can mitigate its market power. BWMQ has been at the forefront of market-based rate design and participated in litigated FERC proceedings involving market-based rate applications for both pipelines and storage facilities. BWMQ can provide an initial market power study to help the client determine whether it is likely that market-based rates can be justified, and follow through with the documentation and persuasive reports to support its client’s needs.
- Natural Gas Storage & Hub Services
- Natural Gas Pipeline Transportation Services
- Natural Gas Liquids Pipeline Transportation Services
- Oil Pipeline Transportation Services
Electric Transmission Rates
BWMQ assists clients working under RTO, ISO, or TRANSCO structures to craft tariff provisions, develop transmission pricing parameters, and power sales.
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Congestion Management
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Zonal/Grid Rates
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Ancillary Services
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Revenue Allocations
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Grid Expansion Costs
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Treatment of Pre-Exiting Agreements
Oil Pipeline Rates
- Annual Indexing
- Cost of Service
- Oil Ratemaking Methodologies
- Trans-Alaska Pipeline System
- Trended Original Cost
Intrastate Filings
- Hinsaw Pipeliens
- Statement of Operating Conditions
- Intrastate Applications