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.

Functionalizing the cost-of-service is done by directly assigning or allocating operation and maintenance expenses and other costs incurred by the company to the two primary functions, Storage and Transmission. While O&M expenses are generally directly assigned, A&G expenses often cannot be easily identified with a particular function and are allocated between the functions using the “K-N Method.” Other cost of service elements, like depreciation, taxes, income taxes, return, and revenue credits are functionalized in various ways. Brown William helps clients functionalize costs accurately to ensure adequate and proper cost recovery, as well as move through the FERC settlement process smoothly and efficiently.