Expert Testimony on Performance Based Ratemaking in New Hampshire
Synapse was retained by the New Hampshire Office of the Consumer Advocate to provide expert witness services related to Liberty Utilities' proposal for performance based ratemaking (PBR), which consisted of a multi-year rate plan (MRP) and performance incentive mechanisms (PIM). The testimony critiqued the design of Liberty's MRP, indicating it was not in the public interest, did not provide incentives for utility cost-containment, and shifted risks to customers. Synapse also critiqued Liberty's proposed reliability PIM, which would have provided financial incentives for actions associated with its core public service obligations. This case ended in a settlement without the MRP and PIMs. The settlement indicated that Liberty may propose an MRP, a PBR plan, and/or step adjustments in its next base distribution rate case.