Cost Allocation and Rate Design Testimony
On behalf of Counsel to the Nova Scotia Utility and Review Board, Melissa Whited provided expert witness testimony regarding Riverport Electric Light Commission’s General Rate Application. Ms. Whited's testimony addressed the utility's proposal for cost allocation, rate design, storm costs, and a deferral account for purchased power cost increases.
As a result of Ms. Whited's testimony, the utility agreed to withdraw its storm cost proposal and undertake a process to enhance the data and analysis underpinning its cost allocation factors.
In its decision, the Board accepted Ms. Whited's proposal to classify transformers as 100% demand-related; base the customer charge on cost of service principles, rather than increasing all rate elements proportionately; and modify the allocation of costs to bring each class closer to acceptable revenue-to-cost ratios. In addition, the Board responded to Ms. Whited's rate design concerns by directing the utility to conduct a more detailed review of its declining block rate structures for its next general rate application.
Project completed in 2023.