Regulatory Strategy Forms Foundation for Future Negotiations
For a leading utility, SDG developed the legislative strategy, analyzed different dimensions shaping the region’s regulatory strategy, determined the optimal shareholder value relative to these dimensions, and laid the foundation for future regulatory negotiations with various stakeholders.
The joint SDG and client team evaluated more than 20 different dimensions, including stranded cost design and estimation, retail pricing, timing and options for customer choice phase-in, and ownership of metering and customer service functions. For each dimension, the study assessed the importance and impact by business unit as well as to the company overall, determined key factors and the means to influence them, and identified the complex interactions among them.
The resulting strategy generated new opportunities worth about $500 million for the utility. This regulatory design has served as a template for other states’ deregulatory efforts.
