Powder River Energy Corporation (PRECorp), a rapidly growing electric distribution cooperative, provides service in northeast Wyoming. Large coal mines have been a significant portion of the PRECorp's load for many years. Recently, growth in the coal bed methane industry has required PRECorp to make sizeable investments to serve new load. Historically, PRECorp sought to provide service at rates to its members based on the cost of providing service. To accomplish this goal, PRECORp routinely updated their cost of service study to reflect the changing conditions on their system.
To make rate changes, PRECorp is required to prepare a rate filing package that satisfies the specific filing requirements of the Wyoming Public Service Commission. GUERNSEY has worked with PRECorp to prepare the study and provide representation before the Commission on several occasions. One challenge was the development of adjustments for known and measurable changes, reflecting the impact of the significant growth in sales and plant investment that was acceptable to all interveners and regulators. Extensive testimony and discussions were required to resolve the issues of rate design to each rate class based on the results of the cost of service study.
As was the case for PRECorp, it is often necessary in a contested rate case to respond to numerous requests for information from interveners and Commission staff. GUERNSEY’s experienced team of rate consultants have worked in many jurisdictions and testified before the Commissions in several states including Arizona, Arkansas, Colorado, Kansas, Oklahoma, Texas and Wyoming.
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