- Electric Cost-of-Service & Rate Studies - Jackson
We have assisted the City of Jackson with evaluations of its costs of providing electric service and the development of electric rates for more than a decade. In each study update, we work with the city to prepare rates that generate adequate revenues to meet projected operating and capital costs and maintain the sound financial position of the electric system; reflect the costs of providing electric service to customers; and meet Jackson’s electric system service policies and objectives.
Our electric cost-of-service studies have included the development of a system financial plan, cost-of-service analysis, and updates to the electric rate design. The projection of revenues under existing rates and system expenditures are summarized in a cash flow analysis to assess the adequacy of revenues to meet all operating and capital requirements.
The cash flow analysis identifies the overall increase in revenues needed on an annual basis to meet the overall financial objectives. The annual revenue requirement is developed from the cash flow analysis. A cost-of-service analysis allocates utility cost to each customer class. Electric rates are designed to recover the cost of service by customer classification.
We have prepared electric utility cost-of-service and rate design studies for Jackson in 2006, 2010, 2012 and 2015.
- Financial modeling
- Cost of service
- Rate design