Rate Case Strategies

Teamwork, electrical engineer and tablet in power plant with inspection for electricity transmission or tower check. Engineering, collaboration or data transfer for energy distribution or maintenance

Publications

Utility Rate Cases that Withstand Regulatory Heat

Rate change cases are increasingly complex, with regulators demanding rigorous technical justification and cost-benefit analyses. Utilities must demonstrate detailed, evidence-based rationale for funding requests, linking asset health, risk modeling, and financial analysis into a coherent regulatory case. Our integrated approach — combining decades of utilities engineering expertise, quantitative risk assessments, and strategic testimony support throughout the process — helps create defensible filings that regulators respect. With climate change amplifying risk, our end-to-end framework enables utilities to manage assets proactively, justify investments effectively, and secure funding for long-term safety and reliability.

Our utilities experts can perform health assessments to identify gaps, help develop the testimony and technical basis in rate cases, and can help fill the gaps programmatically by developing new or revised standards and procedures. After projects have been approved, we can also manage maintenance and construction programs to facilitate timely and cost-effective completion.

Capabilities

Our specialists have decades of experience assessing grid assets to determine their condition and ability to serve customers currently and in the future. We perform detailed gap analysis, comparing utility standards and procedures to current regulations and industry best practices. We work with utilities to gather maintenance data, survey asset conditions in the field, and review outage rates, current and past modernization projects, and more. We evaluate current trends like data center expansion and the ongoing transition to renewable energy sources to help utilities make more informed decisions about future plans. Once gaps are identified, we can help fill them by updating procedures and providing project management support. Using statistical, mechanical, and scientific analysis, we enable utilities to determine current and future grid needs and provide detailed projections to help make the case for improvements and rate increases.
We deliver powerful, science-based risk assessment frameworks that support smarter, data-driven investment decisions. Our quantitative models analyze vast datasets on asset condition, age, and exposure to risks like extreme weather, earthquakes, and other natural hazards to identify and prioritize high-risk infrastructure. By quantifying both the probability and impact of asset failure, we turn complex data into clear, actionable insights that support asset replacement planning, funding requests, and risk mitigation strategies. Unlike traditional qualitative methods, our approach provides the transparency that regulators and stakeholders demand — backing capital needs with measurable cost-benefit ratios.
From wildfire risk to storm resilience, utilities are under pressure to forecast climate-driven asset degradation and justify investments to regulators. Our experts provide Climate Adaptation Vulnerability Assessments (CAVA) that enable utilities to quantify how climate conditions will impact long-term grid safety and reliability. These insights help guide internal investment decisions and provide regulators with the assurance that you are proactively managing systemic risk.
Exponent can help support the entire rate case life cycle, including quantifying risk during the risk assessment and mitigation phase, developing the general rate case and associated testimony, supporting discovery responses, developing rebuttal testimony, serving as a witness or preparing a witness for evidentiary hearings, and supporting the opening and reply briefs. Exponent leverages our experience in serving as experts in legal matters to develop a defensible case and identify gaps in opposing arguments.

Thought leadership

When Should Electric Utilities Go Underground?

What Can We Help You Solve?

Contact us now

Relevant Right Now

How can utilities balance revenue requirements and customer rate impacts?

The challenge is to recover prudent costs while maintaining affordability and public trust. Utilities can use phased-in increases, decoupling mechanisms, and targeted rate design to avoid rate shock. Communicating the value of reliability, safety, and modernization helps customers understand why the increase is needed.

What test year and forecasting approach should utilities use?

Choosing between a historical, adjusted, or forecast test year affects how current costs are reflected in rates. A forward-looking test year may better capture ongoing investment needs but requires strong justification and data transparency. The goal is to reflect realistic costs within regulatory precedent and evidentiary standards.

How do utilities support capital investments and demonstrate prudence?

To gain approval, utilities must tie capital expenditures to clear outcomes — such as reliability, resiliency, and environmental compliance — and show that alternatives were evaluated. Strong documentation, project governance, and performance metrics help regulators see that investments are both necessary and will be efficiently executed by the utility.

What is the appropriate capital structure and return on equity (ROE)?

Utilities can benefit from presenting market-based analyses, peer comparisons, and credit metrics to support a fair ROE and capital structure. Evidence that the proposed return attracts investment and reflects business risk strengthens the case. Clear rationale — especially for any requested premium — builds regulatory credibility.

How should utilities manage stakeholder engagement and communication?

Effective engagement begins well before filing. Utilities can reduce opposition by informing stakeholders of planned investments, gathering feedback, and building consistent messaging around customer value. Internally, coordinated testimony, discovery preparation, and media readiness ensure a cohesive narrative throughout the proceeding.

Our Capabilities Are Unparalleled

Exponent helps utilities build defensible, data-backed rate cases through integrated engineering and quantitative risk modeling, performing program health assessments, creating science-based risk frameworks, and offering regulatory testimony support.

Wind turbines standing in a field of crops on a sunny day. Exponent engineers provide support for all energy systems.

Experts

Our global and comprehensive expertise across industries gives us a deep understanding of current challenges, best industry practices, and the implications of emerging technologies.