Utility Regulatory Policy and Ratemaking
Rate Design, Cost Allocation, and Rate Structure
Overview
Engagements
Experts
Publications

The Brattle Group advises utilities and government agencies on the proper design of regulated rates in the electricity and natural gas industries. Our expert witnesses testify on rate structure and rate design matters before state regulatory commissions and the Federal Energy Regulatory Commission (FERC).

We prepare expert testimony and studies addressing electric retail ratemaking issues such as automatic adjustment clauses, cost allocation, marginal cost of service, economic development rates, and performance-based ratemaking. We also provide energy economic consulting on incentives for energy efficiency programs, real-time pricing, interruptible demand tariffs, and other rate mechanisms designed to encourage greater demand response to changing wholesale prices. With regard to wholesale ratemaking, we address topics such as rate design for RTO transmission access and administrative charges, allocation of costs paid to “reliability must-run” generators, and allocation of gas pipeline expansion costs on an average versus marginal/incremental basis.

Our economic experts have experience in directing rate design studies, have frequently taught rate design and related subjects through organizations such as the Electric Power Research Institute (EPRI) and the Edison Electric Institute (EEI), and have presented before a number of industry groups, including the National Association of Regulatory Utility Commissioners (NARUC).

Principals
Arthur 056
Principal
+1.617.864.7900
Dr. Arthur has more than 15 years of consulting and litigation experience in the natural gas, natural gas liquids, and petroleum industries. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Metin 087
Principal
+1.617.864.7900
Dr. Metin Celebi provides expertise in electricity markets and analysis of environmental and climate policy. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Faruqui web
Principal
+1.925.408.0149
Dr. Faruqui specializes in smart grid strategies involving the consumer. His expertise includes demand forecasting, innovative rate design, energy efficiency, demand response, advanced metering infrastructure, technology assessment, and cost-benefit analysis. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Hanser 080
Principal
+1.617.864.7900
Mr. Hanser assists clients in issues ranging from utility industry structure and market power and associated regulatory questions, to specific operational and strategic issues, such as transmission pricing, generation planning, and tariff strategies. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Harris 129
Principal
(Rome) +39.06.48.888.146
(London) +44.20.3829.2340
Mr. Harris has more than fifteen years of experience as expert in valuation, quantification of damages, and the economics of gas and electricity markets. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Lapuerta 103pp
Principal
+44.20.7406.7900
Mr. Lapuerta is an expert in economic analysis and financial valuation, which he frequently applies to estimate damages in international arbitration proceedings. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Levine 056a
Principal
+1.617.234.5729
Mr. Levine specializes in energy and regulatory economics and is an expert in the economics of the natural gas, oil, and liquefied natural gas markets. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
O'loughlin 109 1
Principal
+1.617.864.7900
Mr. O'Loughlin specializes in regulatory economics and valuation as applied to the natural gas, oil pipeline, and electric power industries. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Pfeifenberger 034 edited
Principal
Mr. Pfeifenberger is an economist with a background in electrical engineering and over twenty-five years of experience in the areas of regulatory economics and finance. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Sergici 102
Principal
+1.617.864.7900
Dr. Sergici assists electric utilities, regulators, and wholesale market operators in their strategic questions related to energy efficiency, demand response, and customer behavior in the context of Smart Grid. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Jurgen weiss0492
Principal
+1.617.864.7900
Dr. Weiss specializes in issues broadly motivated by climate change concerns, such as renewable energy, energy efficiency, energy storage, the interaction between electricity, gas and transportation, and carbon pricing. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Principal Emeritus
Wharton 123
Principal Emeritus
+1.415.217.1000
Dr. Wharton specializes in the development of new business models and innovative pricing policies for regulated industries. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Academic Advisors
Academic Advisor
Dr. Robinson is a Senior Fellow of the Oxford Institute for Energy Studies. He consults on competition, regulation, and corporate strategy in energy and other regulated sectors. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Senior Consultants
Senior Consultant
+1.202.955.5050
Article
February 2017
Ahmad Faruqui, Josephine Duh, and Ingrid Rohmund
Published in the February 2017 issue of Electricity Policy’s Electricity Daily

This article addresses the issue of econometric models over-forecasting utility sales, resulting in revenue shortfall.

Presentation
Curating the Future of Rate Design
October 20, 2016
Presented at the EUCI Residential Demand Charges Conference
Presentation
Retail Costing and Pricing for Electricity
August 11, 2016
Presented at IPU's 58th Annual Regulatory Studies Program: The Fundamentals Course
Report
July 18, 2016
Ahmad Faruqui, Wade Davis , Josephine Duh, and Cody Warner
Published in Electricity Policy
Presentation
Brattle Tariff Design Best Practices
June 1, 2016
Prepared for Tenaga Nasional Berhad (TNB) and the Government of Malaysia
Presentation
May 13, 2016
Presented to the Alternative Rate Design Stakeholder Process for Xcel Energy
Report
April 2016
Prepared for Citizens Advice
Report
An Evaluation of SRP’s Electric Rate Proposal for Residential Customers with Distributed Generation
January 5, 2015
Prepared for the Salt River Project
Report
Incentive-Based Ratemaking: Recommendations to the Hawaiian Electric Companies
May 20, 2014
Prepared for The Hawaiian Electric Companies