The importance of asset valuation can arise in various contexts for a pipeline. Whether engaged in arbitration or addressing rate regulation issues, REG offers the required skills and credentials in accounting, valuation, and economics to assist clients facing valuation-related concerns. The following provide a sample of matters in which REG has supported pipeline clients.

Fair Value Rate Base
If a pipeline commits assets to common carrier service, the fair value of these assets at the date of conversion may have important implications on the rates a pipeline charges. An assessment and defense of such valuation plays a critical role in the commercial interests of a pipeline in context of a rate proceeding. REG has presented formal testimony in some cases and consultation with commission staff in other cases setting forth the regulatory rationale and a professional valuation estimate to be used as the starting rate base of new assets place in public service.

Reproduction Cost New
In a rate regulation context, reproduction cost new valuation may provide the determination of certain capital elements in the pipeline's rate base. REG has provided such estimates of value in accordance with regulatory principles and precedent in multiple rate proceedings and other client engagements.

Ad Valorem
Valuation data integrity, analysis and presentation are critical to ad valorem tax assessment for pipelines. REG has provided ongoing support to valuation experts estimating the value of the Trans Alaska Pipeline System in this context. REG has also supported an Arizona pipeline in a similar regard relating to ad valorem tax.

Valuation Models
In an arbitration setting, REG has developed, defended and implemented a valuation model for determining pipeline rates. This model was accepted by the arbitrator for the resolution of the matters contended.