Utility Tariff Design At A Glance

Capabilities and Services

Since our inception, NERA has provided extensive tariff design consulting services to electric and gas sector clients. NERA advises clients on tariff design issues ranging from the formulation of pricing strategy and the development of innovative tariff solutions to detailed analyses of the building blocks on which tariff policy is based (e.g., studies of marginal costs, bill impacts, and customer response to new tariffs).

Our team has conducted numerous electric, gas, and water utility cost studies; designed innovative electric tariffs; and testified widely before regulatory commissions on matters related to electric and gas utility pricing. We have served electric and gas sector clients in all US states, most of the Canadian provinces, and many jurisdictions around the world.

NERA also has extensive experience with marginal cost pricing as applied to electricity and gas tariffs. NERA's methods for estimating marginal costs set the industry standard in the US when marginal cost pricing was introduced in the late 1970s. Our methods have been continually updated and enhanced, incorporating more rigorous techniques for capturing time-of-use and geographic differences in costs, for estimating short-run costs, and for providing a sound basis for efficient delivery tariffs as well as charges for bundled service.