NERA Expert Files Rate Case Testimony on Marginal Cost

Thu Sep 17 16:24:38 EDT 2009
By Dr. Hethie Parmesano

On 17 September 2009, NERA Special Consultant Dr. Hethie Parmesano filed direct testimony in rates cases submitted by New York State Electric and Gas Corp. (Cases 09-E-0715 and 09-G-0716) and Rochester Electric & Gas Corp. (Cases 09-E-0717 and 09-G- 0718). In both proceedings, Dr. Parmesano's testimony covers the nature of marginal gas and electricity delivery service, the history of the use of marginal costs in gas and electric rates in New York, and the results of gas and electric marginal cost studies performed by Dr. Parmesano, with assistance from Vice President Amparo Nieto. The results of the marginal cost studies (included as Exhibits to the testimony) were used by the utilities as a guide for both class revenue allocation and rate design.