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Shift your rate case strategy from reactive to proactive.

Preparing for a rate case can consume thousands of staff hours.  The more time a company spends gathering data, the less time there is for analysis. Many organizations struggle to accurately monitor actuals and budgets against case, making it difficult to identify where costs have changed faster than expected. Even more challenging, regulatory data is often fragmented and managed in silos.

PowerPlan Rate Case and ROE Management Suite simplifies the process by transforming financial data into a fully integrated regulatory ledger, with a rich set of analytics that lets your company react quicker to business changes and make adjustments through fast and accurate insights.

  • Automated data collection ensures all regulatory data is accurately captured and stored on a ledger that’s visible to all stakeholders.
  • Seamless integration with your company’s financial systems enables real-time sharing of current, accurate information.
  • Jurisdictional templates standardize how business rules, allocations and adjustments are captured, ensuring consistency and accuracy.
  • Scenario analysis capabilities make it easy to test inputs when preparing for a rate case to determine which factors could yield the best return on assets.
  • Ongoing monitoring allows companies to track regulatory performance and evaluate alternative mechanisms like riders and trackers during, and outside of, the rate case process.

Regulatory Ledger

The PowerPlan Regulatory Ledger is an integrated solution providing a single source of consolidated regulatory data visible to all stakeholders, along with a rich set of analytics that enable optimal revenue recovery. It eliminates the need for multiple teams to track , consolidate and reconcile data inconsistencies among different departments. This reduces the risk of errors, which can in turn damage credibility.

  • Automated data collection ensures all regulatory data is accurately captured and stored on a ledger that’s visible to all stakeholders. Data is integrated from other PowerPlan modules, including Fixed Assets, Tax Fixed Assets, Provision, Capital Budget, Departmental Budget, Depreciation Forecast.  In addition, PowerPlan can pull data from ERPs and other planning systems.
  • Regulatory monitoring traces financial returns to regulatory returns, providing the clarity needed to make strategic decisions that impact all stakeholders. Decision makers can compare the effectiveness of individual recovery mechanisms as well as base rates.
  • Robust case structures let you quickly analyze multiple adjustments and scenarios, making it easier to determine the best time to initiate a rate case.
  • Purpose-built functionality handles regulatory adjustments, known and measurable changes, and specific jurisdictional methodologies such as working capital or deferred taxes.
  • Unique data structures meet your specific regulatory accounting needs and provide built-in, drill-down reporting capabilities.
  • Multi-tiered separations produce results by jurisdiction. Each jurisdiction can be configured with unique methodologies and adjustments, and special recovery clauses and associated costs can be further segregated.
  • Historical and forecast data is accessible to all stakeholders, making it easier to determine the root cause of anomalies.

Rate Case Planning and Modeling

Utilities face a range of challenges when preparing for a rate case. Traditional financial systems weren’t built to track and manage how regulatory requirements impact operations and rate base. That means information must be pulled from across the organization and manually reconciled, which increases the chance of errors and makes it difficult to run scenarios or do comprehensive analysis. Without a clear picture of how regulatory strategy impacts budgets and forecasts, a utility is at a disadvantage.

PowerPlan’s Rate Case Planning and Modeling module automates the process of gathering regulatory data, and provides insight into the entire regulatory environment. This insight enables regulatory management to make a clear and confident case when talking about budgets, forecasts and strategic direction. 

  • Automated processes capture and store all information required for a rate case–from financial and tax data to budgets and forecasts–on a common platform. Some PowerPlan customers have reduced the time it takes to gather monthly data by almost 80%.
  • Regulatory ledger automatically organizes rate case data and reconciles to historical actuals while separately tracking adjustments.
  • Superior analytics let you test assumptions and run scenarios based on different variables, so you can see at a granular level how changes impact the overall picture. This is critical for utilities that operate across multiple jurisdictions where the overall strategy has to take into account the requirements of different states or counties.

Return on Equity (ROE) Performance Analysis

Regulated utilities are facing a number of forces that threaten their ability to earn revenue and an adequate ROE for their shareholders. A decreasing demand for energy, combined with significantly lower ROE from rate cases, is driving utilities to seek new ways of improving their internal processes and optimize financial performance. PowerPlan’s ROE Performance Analysis module provides the data you need to build the foundation for better rate cases and improve your overall financial performance.

  • Central data repository provides a clear view to all the financial data that supports the rate case, and access to the information you need to quickly and confidently respond to regulators.
  • Dashboards and reports make it easy to combine historical actuals with your multi-year forecast to determine which 12-month period would be most advantageous for a rate case.
  • Real-time monitoring enables you to track how well your alternative recovery mechanisms are performing.
  • Drill back capability provides a better understanding of the underlying causes of variances.