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.

The allocation of costs as either reservation (demand) or commodity (usage) is the first step in rate design. Classification of variable costs to the commodity component is a relatively settled matter but the classification of fixed costs between demand and commodity continues to be controversial issue that can hamper settlement talks and lead to litigation. The choice of a cost classification method can have direct effects not only on the rates paid, but also on the revenue responsibility of a particular class of customer. That’s why Brown Williams’ is called upon to represent its clients through the whole process from functionalization to classification with supporting documentation, precise spreadsheet models, and written testimony to explain and support the client’s interests.