On behalf of the Council of the City of New Orleans (Council), Members of the Firm served as technical advisors regarding Entergy Louisiana, LLC’s (ELL) March 28, 2013 rate case application (Docket UD-13-01).
- ELL’s filing requested a $12.8 million annual increase in electric rates for customers of ELL in the Algiers ward of New Orleans.
- Members of the Firm managed the docket, preformed analysis, and sponsored expert testimony before the Council in the areas of:
- ELL’s allowed Return on Equity (ROE)
- The recoverability of specific costs requested by ELL
- The allocation of costs between Algiers and ELL’s service territory regulated by the Louisiana Public Service Commission
- Ratemaking issues related to ELL’s cost to restore service following major hurricanes
- Retail rate design to implement any increase in ELL’s overall revenue requirement
- Ongoing adjustments to rates in the form of annual Formula Rate Plans
- On June 25, 2014, the Council approved a negotiated settlement that provided for:
- An approximately 24% reduction in rates compared to ELL’s initial filing request
- A phase-in of new rates through four equal annual increases
- Four annual evaluations of ELL’s actual earnings and rate resets as required (FRPs)
Members of the Firm provided their valuable expertise to the Council in the areas of regulatory ratemaking, allowed Return on Equity (ROE) determination, financial analysis, expert testimony, cost allocation metrics, and settlement negotiation.