Case Study | Rates Consulting


Tangibl prepared and supported a complete base rate case for three small, affiliated electric utilities in the mid-Atlantic region. The assignment involved preparation of all minimum filing requirements (MFRs) revised tariff sheets, customer notices and testimony before the regulatory commission. As part of the filing requirements Tangibl prepared a fully allocated cost of service study, a lead / lag study, support for the company’s cost of capital, support for the proposed merger of three utilities and two other affiliated companies into one entity, and documentation supporting the utility’s request for emergency rate relief. 

The merger filing included three small electric utilities, a management company, and a retail electric component warehouse/sales company, so the analysis of the benefits to the customers of consolidation and the allocation of costs to the utility vs. non-utility operations were important factors in the case. Tangibl prepared the exhibits which supported the jurisdictional allocations and merger benefit. 

The electric utilities had never had a fully allocated cost of service study and had not prepared a lead / lag study in support of their prior cash working capital claims. As such rates did not reflect the allocated cost of service, and cash working capital requests were routinely denied by regulators. 

The case was completed over a seven-month period and ultimately settled to the satisfaction of all parties. The settlement included merging the three utilities and moving rates for the individual service areas closer together with the goal being a consolidated tariff for the new company. Tangibl played a key role in settlement negotiations with Staff.

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