- Electric Cost-of-Service & Rate Design Study - Burlington
Our team is conducting a comprehensive electric cost-of-service and rate design study for the Burlington Electric Department (BED). The study includes development of a financial forecast, cost-of-service analysis, and rate design. The detailed cost-of-service analysis includes the allocation of costs using both embedded costs and marginal costs basis consistent with industry standards. Rates will be designed to include time of use and other customer options and standard rates.
The study is being completed in two phases. Phase 1 efforts included surveying available dynamic rate structures that are in use nationally to determine rate structures that could be used as benchmarks for rate design as well as potential changes to current rates based on new technologies. In addition, Phase 1 included public involvement efforts designed to determine BED customer knowledge of existing rate offerings as well as interest in new rate options.
Phase 2 services are similar and typical for scopes used in completing electric cost-of-service rate studies for many utility systems across the country. We completed the development of a forecast for revenue requirements and are completing an analysis of costs of service by customer class. When the cost-of-service analysis is completed, we will develop rate options for consideration by BED.
The study will identify the cost to serve each class of customers and develop appropriate rates for each rate class. Included with the rates developed will be standard rate design and innovative rates designed to encourage customer engagement in a number of utility initiatives. We will provide support in submitting the rate study along with testimony to the Vermont Public Service Commission.
- Financial model development
- Financial planning
- Cost-of-service analysis
- Retail electric rate design
- City council presentation