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 interstate regulation of crude oil pipelines and refined products pipelines is governed by several unique cost-of-service and rate design concepts and methodologies. Its trended original cost (TOC) rate base, starting rate base adders, and deferred return on equity present a challenging cost of service model from the outset. The equity rate base incorporates the equity portion of the original cost plus a "starting rate base" adder and an inflation-based "accumulated deferred return" adder. Thus the equity rate base includes original cost plus layer upon layer of inflation of that equity portion, hence the term 'trended original cost'. Brown Williams is adept at the nuances of the oil pipeline cost of service model and can assess the rate base for fairness and correct compilation.