Register Today for Courses in Cost of Service and Rate Design for Natural Gas Interstate Pipeline Companies (January 26th-27th)
Brown, Williams, Moorhead & Quinn, Inc.

Cost allocation involves apportioning the functionalized costs among customers or classes of customers, between services, and among zones. The costs are usually allocated based on allocation factors, which in most cases are the billing determinants (volumes) that a customer or a class of customers transports. Billing determinants are also used to design rates. In some instances, allocation factors and billing determinants can be the same and both are based on some measure of service level to a particular customer, or class of customers. Brown Williams has been around the block a few times making assessments of pipeline cost structures and seeing to it that its clients interests are served when it comes to allocation of costs