Using an Independent Expert to Support Rate and Accounting Positions

Using an Independent Expert to Support Rate and Accounting Positions

How have we helped utilities as an expert witness?

There are times you will need an independent analysis and voice for electric rate or other approvals before your Board or other regulatory bodies. Here are examples of how we assisted clients with expert witness testimony to support rate and accounting issues:

  • Joint owners of a power plant disputed the allocation of administrative and general expenses by the power plant operator in an arbitration matter.
  • Wholesale power customers questioned the impact of impairment accounting for retired units on their rates and required testimony before the Federal Energy Regulatory Commission (FERC).
  • A utility sought recovery of the construction costs of an abandoned power plant project in its rate base and required testimony before a state utility commission.
  • A cooperative defended its industry method of developing revenue requirements before FERC.
  • An insurance company required insights and testimony on cost recovery for utility pole accidents in a lawsuit.
  • We testified for a utility defending its method for recording power plant decommissioning costs before FERC.
  • We assisted a transmission utility with testimony before the Texas Public Utilities Commission, providing an analysis of allocated costs between regulated and unregulated businesses.

Why Use an Expert Witness?

Could these clients have handled these issues adequately without outside help? For the most part, yes. But an expert witness can provide added support to your rate filing, litigation, or arbitration. Their background and experience offer an outside, independent view of industry best practices, plus an unbiased presentation of the supporting facts and standards for your accounting, rates, and other positions.

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About the Author

Russ Hissom, CPA is a principal of UtilityEducation.com, providing on-demand professional education classes in FERC, RUS, FASB, and GASB accounting, finance, ratemaking, artificial intelligence, and management for electric, gas, wastewater, and water utilities and electric cooperatives.

Contact Russ at [email protected]

The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists, LLC. You should seek formal advice on this topic from your accounting or legal advisor.