Alternative Ratemaking in Maryland

Maryland Office of People’s Counsel
Project Completed January 2020

Synapse was retained by the Maryland Office of the People's Counsel (OPC) to provide technical support for alternative ratemaking proceedings, with a focus on multi-year rate plans (MRPs). Per Maryland Public Service Commission Order No. 89226, a Working Group was established to develop an implementation report for MRPs. Synapse assisted OPC by helping develop positions, drafting comments and rebuttal comments, and attending workshops. Our focus was on the overarching design of MRPs to ensure that they operate in the public interest, provide proper incentives to utilities, and mitigate information asymmetries. Our work included methods for setting allowed annual revenue requirements, the design of earnings sharing mechanisms, operation of any reconciliation mechanisms, specifying utility reporting requirements, and proposing accompanying planning processes.