Cost-of-Service Studies

When state or federal agencies seek to regulate a common-carrier pipeline, allowed rates are frequently based on the costs of providing service. This cost-of-service approach to ratemaking requires significant technical analyses to establish and defend new rates.  With REG, clients reap the benefits of our extensive experience in developing cost-of-service studies, as well as delivering expert testimony in support of contested rate filings.  The professionals at REG apply their unique technical expertise to provide a wide range of consulting services related to cost-based ratemaking, such as:

  • Total system cost-of-service analysis
  • Segmented system cost-of-service analysis
  • Fully-allocated-cost rate analysis
  • Competitively-constrained rate analysis

REG does not believe in a one-size-fits-all approach to Cost-of-Service analysis. We bring with us an acute understanding of ratemaking methodologies, allowing us to tailor cost-of-service and rate-design models to serve the specific needs of each client and project.  REG has developed cost of service models which have been incorporated in settlements for pipelines in the contiguous United States and Alaska.