Our Approach

The primary purpose of a cost of service study is to allocate a utility’s overall revenue requirements to the various classes of service in a manner that reflects the relative costs of providing service to each class. A cost of service study is an analysis of costs that assigns to each class of customers its proportionate share of the utility’s total cost of service, i.e., the utility’s total revenue requirement.

The primary purpose of a cost of service study is to allocate a utility’s overall revenue requirements to the various classes of service in a manner that reflects the relative costs of providing service to each class. A cost of service study is an analysis of costs that assigns to each class of customers its proportionate share of the utility’s total cost of service, i.e., the utility’s total revenue requirement.

Atrium Economics’ senior energy industry professionals rely on their wide-ranging industry knowledge and experience to deliver practical, measurable improvements to impower value creation across the regulated utility and unregulated enterprises. We approach each management challenge and regulatory issue with objective, independent, and principled advice.

Resource planning provides the strategic direction guiding a utility’s long-term resource acquisition. Through the planning process, utilities analyze how to meet customer demands for energy and capacity using supply-side resource procurement and demand-side resources.

A number of rate design principles or objectives find broad acceptance in utility regulatory and policy literature. These include: efficiency, cost of service, value of service, stability, non-discrimination, administrative simplicity, and balanced budget.