BEFORE THE RÉGIE DE L'ÉNERGIE IN THE MATTER OF: HYDRO QUÉBEC TRANSÉNERGIE Demande relative à la modification des tarifs et conditions des services de transport d'Hydro-Québec à compter du 1er janvier 2009 DOSSIER R-3669-2008 prepared on behalf of: l'Association québécoise des consommateurs industriels d'électricité (AQCIE) 29 October 2008 Conseil de l'industrie forestière du Québec (CIFQ) prepared evidence of: Robert D. Knecht Industrial Economics, Incorporated 2067 Massachusetts Avenue Cambridge, MA 02140 1 2 3 4 5 6 My name is Robert D. Knecht. I am a Principal and the Treasurer of Industrial Economics, Incorporated (“IEc”), a consulting firm located at 2067 Massachusetts Avenue, Cambridge, MA 02140. As part of my consulting practice, I prepare analyses and expert testimony in the field of regulatory economics. In Canada, I have submitted expert evidence in regulatory proceedings in Québec, Ontario, Alberta, New Brunswick, Nova Scotia, Manitoba, and Prince Edward Island. 7 8 9 10 11 12 13 14 This is my first appearance in a proceeding involving Hydro Québec TransÉnergie (“HQT”). I participated extensively in several hearings in Alberta regarding the evolution of rates for transmission service, from the integrated utility-owned “Gridco,” to the independent “Transmission Administrator,” and on to the current Alberta Electric System Operator. Also, in matters regarding Hydro Québec Distribution (“HQD”), I have submitted evidence or reports before the Régie in dockets R-3477-2001, R-3492-2002 (Phases 1 and 2), R-3541-2004, 3563-2005, R3579-2005, R-3610-2006, R-3644-2007, R-3648-2007 and R-3673-2008. 15 16 17 18 19 I obtained a B.S. degree in Economics from the Massachusetts Institute of Technology in 1978, and a M.S. degree in Management from the Sloan School of Management at M.I.T. in 1982, with concentrations in applied economics and finance. My curriculum vitae and a schedule of my expert evidence presented to regulatory tribunals during the past five years are attached as Exhibit RDK-1. 20 21 22 23 24 25 I was retained by l'Association québécoise des consommateurs industriels d'électricité (“AQCIE”) and the Conseil de l'industrie forestière du Québec (“CIFQ”) to evaluate the cost allocation methods adopted by HQT in this proceeding, focusing on those aspects that have changed since HQT’s last rates proceeding at Docket No. R-36402007. AQCIE/CIFQ also asked me to investigate any changes in cost allocation and rate design proposals put forward by other parties in this proceeding. 26 27 28 P L E A S E S U M M A R I Z E T H E M AT E R I A L S T H AT Y O U R E V I E W E D F O R T H I S A S S I G N M E N T. My review included the following materials: 29 30 31 • Various materials filed at Docket R-3549-2004, including some of the HQT filing, and the evidence submitted by Dr. Orans, Dr. El-Ramly, Mr. Harper, and London Economics, Inc. (“LEI”); 32 • The Régie’s decision in that proceeding at D-2006-66; 33 • HQT’s cost allocation study filed in R-3640-2007; 34 35 • The Régie’s decision at D-2008-019 (relating to cost allocation and rate design matters); 36 37 38 • Excerpts from the filing in the current case, focusing on exhibits HQT-11 and HQT-12, with parts of exhibit HQT-1 for background and exhibit HQT9 for system planning; Evidence of Robert D. Knecht Docket No. R-3669-2008 1 1 2 • HQT responses to IRs from AQCIE/CIFQ, Option Consommateurs (“OC”), and the Régie. 3 4 5 In addition, as noted earlier, I participated in several HQD proceedings in which the cost allocation methodology adopted by the Régie for HQT has been ported down to the distribution level. 6 7 8 9 10 11 12 As a newcomer to the HQT proceedings, I recognize that much water has already flowed under the bridge, and that I still could benefit from additional review of all of the history that supports the current HQT policies. I will continue to review the historical record as this proceeding goes forward. The conclusions and recommendations in this evidence are based on my current understanding and evaluation, and I will notify the Régie promptly of any additional conclusions or changes to this evidence. 13 14 15 16 17 18 19 20 21 22 P L E A S E S U M M A R I Z E Y O U R U N D E R S TA N D I N G O F T H E K E Y C O S T The Régie laid out the basics for both cost allocation and rate design in its decision D2006-66. For the purposes of this proceeding, HQT’s cost allocation study allocates costs between native load service and point-to-point service. However, the results of the cost allocation analysis are not used in the transmission rate design process. It appears that the primary (or perhaps only) purpose of the transmission cost allocation analysis is to establish the methodology for allocating transmission costs at the distribution (HQD) level. 23 24 In summary, HQT’s costs are functionalized into the five general categories listed below, and then classified and allocated as follows: F U N C T I O N A L I Z AT I O N , C L A S S I F I C AT I O N A N D A L L O C AT I O N A S P E C T S O F H Q T ’ S C O S T A L L O C AT I O N S T U D Y. 25 26 27 28 • Generation Integration Facilities (Step-up transformers and connection lines to the network): Costs are classified into energy and demand components by system load factor, and allocated on energy and 1 CP demand; 29 30 31 • High Voltage Network around Montréal and Montréal to Québec: Costs are classified as 100% demand-related and allocated using a 1 CP demand allocator; 32 33 34 35 • Very High Voltage and 450 kV Systems (including the very high voltage transmission lines from power producing regions to consuming regions): Costs are classified into energy and demand components by load factor, and allocated on energy and 1 CP demand; 36 37 38 • Interconnections (including both Churchill Falls and others): Costs are classified into energy and demand components by load factor, and allocated on energy and 1 CP demand; Evidence of Robert D. Knecht Docket No. R-3669-2008 2 Customer Connections: Direct assignment.1 • 1 2 3 4 5 For the 2009 study, the load factor classification split is approximately 58.5 percent energy-related, 41.5 percent demand-related. In total, of HQT’s $2,876 million revenue requirement, some 51 percent ($1,468 million) is demand-related, 29 percent is energy-related ($835 million) and 20 percent ($573 million) is directly assigned. 6 7 8 9 W H AT A R E T H E M A J O R C H A N G E S I N H Q T ’ S C O S T A L L O C AT I O N S T U D Y I N T H I S PROCEEDING? The major changes to HQT’s methodology are both quantitative and methodological. At this writing, I have identified four material changes: 10 11 12 13 14 15 • First, HQT has segregated out some $86 million in costs that are “customer connections of the type Toulnustouc,” which it has included in the customer connections cost category, and which it has directly assigned to point-topoint service. At this writing, it is not clear to me where these costs were previously recorded. The only cost category that shows a material decline since 2008 is “other high voltage,” and that decline is some $30 million. 16 17 • Second, peak demand for point-to-point service has increased substantially, from 591 MW in 2008 to 1934 MW in 2009. 18 19 20 21 22 23 24 • Third, because HQT does not meter energy used in point-to-point service (nor does it bill on an energy basis), it must estimate the energy used for cost allocation purposes. In 2008, the assumed load factor for point-topoint service was about 65 percent; in 2009, it is 57 percent. It is my understanding that the 2009 load factor is based on extrapolating from metered information for two export interconnections (HQT-MASS and HQT-NE). 25 26 27 28 29 30 • Fourth, HQT’s revenue requirement includes some $44 million in costs related to a new Ontario interconnection. HQT proposes to treat these costs for cost allocation purposes in the same manner as all other interconnection costs. That is, HQT classifies the costs using a load factor split and allocates them using energy and 1 CP allocators. Under this method, some 94 percent of these costs are assigned to native load service. 31 32 33 The first of these two changes contribute substantially to the rise in costs allocated to point-to-point service from $38 million in last year’s study to $205 million in the current study. 34 35 36 37 DO YOU DISAGREE WITH ANY OF HQT’S PROPOSALS IN ANY OF THESE FOUR AREAS? Based on my review thus far, I am addressing only the issue of the classification and allocation of Ontario interconnection costs. In both its decision in the last proceeding 1 See HQT-11, Document 2, Tables 7, 8 and 9 Evidence of Robert D. Knecht Docket No. R-3669-2008 3 1 2 and in Decision D-2008-116 in this proceeding, the Régie identified this cost allocation issue as a matter of concern.2 3 4 5 6 7 8 9 10 11 HQT’s proposal for the classification and allocation of these costs is based primarily on Régie precedent. HQT offers little in the way of any analysis demonstrating that the costs associated with the Ontario interconnection should be classified as 58.6 percent energy and 41.4 percent demand-related.3 Moreover, HQT does not explain why these costs should be assigned as 94 percent related to native (HQD) load and only 6 percent to point-to-point service. HQT’s argument is the (quite logical) argument that cost causation for the Ontario interconnection is similar to the cost causation for the “other interconnections,” and therefore the same methodology should apply.4 12 13 14 Nevertheless, because the Régie has identified this as an issue, it is reasonable to subject it separately to cost causation principles. And, to do so, the key question that should be asked is “why was this interconnection installed.” 15 16 Based on my review of the evidence available, HQT’s justifications for this interconnection appear to be: 17 • System reliability in that geographic region; and, 18 • Increased ability to trade with Ontario and/or wheel power through Québec.5 19 20 21 In addition, it appears that the 1,250 MW interconnection capacity has been reserved by HQP in total for 50 years.6 This suggests that the primary motivating factor for the interconnection is export service. 22 23 24 Thus, to the extent that the Régie wishes to focus on cost causation related to these costs, I recommend that the costs be split 50/50 between native load service (for the reliability benefits) and point-to-point service (for the export trade ability). 25 26 Moreover, for the cost component that is related to reliability, I recommend that it be classified as 100 percent demand-related. System reliability requirements are most 2 I recognize that the Régie also identified HQT’s estimate of the energy use by point-to-point customers as an issue for this proceeding. However, I have no better information than that used by HQT in this proceeding for such an estimate, and I therefore do not address this issue. 3 The system load factor used by HQT for classifying interconnection costs is slightly different than that used for generation integration and other high voltage costs. See HQT-13, Document 4, pages 23 to 24. 4 This reference to “other interconnections” means the existing interconnections other than Churchill Falls. Although D-2006-66 specifies that the same cost classification and allocation methodology should apply to both the Churchill Falls and the other interconnections, the cost causation factors for those two types of interconnections are quite different. 5 See, in particular, HQT-13, Document 4. Pages 16 to 19. 6 Id. Evidence of Robert D. Knecht Docket No. R-3669-2008 4 1 2 3 4 critical during peak periods. As such, there are no energy-related aspects to cost causation. Unlike generation interconnections, where costs may be similar to the fixed costs of generation, the interconnections are necessary to meet extreme conditions. Therefore a demand classification is appropriate for these costs. 5 6 7 D O Y O U H AV E A N Y A D D I T I O N A L C O N C L U S I O N S O R R E C O M M E N D AT I O N S R E G A R D I N G H Q T ’ S C O S T A L L O C AT I O N A N D R AT E D E S I G N P R O P O S A L S . Not at this time. Evidence of Robert D. Knecht Docket No. R-3669-2008 5 EXHIBIT IEc-1 CURRICULUM VITAE AND EXPERT TESTIMONY SCHEDULE OF ROBERT D. KNECHT Evidence of Robert D. Knecht Docket No. R-3677-2008 ROBERT D. KNECHT Robert D. Knecht specializes in the practical application of economics, finance and management theory to issues facing public and private sector clients. Mr. Knecht has more than twenty years of consulting experience, focusing primarily on the energy, metals, and mining industries. He has consulted to industry, law firms, and government clients, both in the U.S. and internationally. He has participated in strategic and business planning studies, project evaluations, litigation and regulatory proceedings and policy analyses. His practice currently focuses primarily on utility regulation, and he has provided analysis and expert testimony in numerous U.S. and Canadian jurisdictions. In addition, as Treasurer of IEc since 1995, Mr. Knecht is responsible for the firm's accounting, finance and tax planning, as well as administration of the firm's retirement plans. Mr. Knecht's consulting assignments include the following projects: C For the Pennsylvania Office of Small Business Advocate, Mr. Knecht provides analysis and expert testimony in industry restructuring, base rates and purchased energy cost proceedings involving electric, steam and natural gas distribution utilities. Mr. Knecht has analyzed the economics and financial issues of electric industry restructuring, stranded cost determination, fair rate of return, claimed utility expenses, cost allocation methods and rate design issues. C For independent power producers and industrial customers in Alberta, Mr. Knecht has provided analysis and expert testimony in a variety of electric industry proceedings, including industry restructuring, cost unbundling, stranded cost recovery, transmission rate design, cost allocation and rate design. C For industrial customers in Québec, Mr. Knecht has prepared economic analysis and expert testimony in regulatory proceedings regarding cost allocation, compliance with legislative requirements for crosssubsidization, and rate design. C As part of international teams of experts, Mr. Knecht has prepared the economic and financial analysis for industry restructuring studies involving the steel and iron ore industries in Venezuela, Poland, and Nigeria. C For the U.S. Department of Justice and for several private sector clients, Mr. Knecht has prepared analyses of economic damages in a variety of litigation matters, including ERISA discrimination, breach of contract, fraudulent conveyance, natural resource damages and anti-trust cases. C Mr. Knecht participates in numerous projects with colleagues at IEc preparing economic and environmental analyses associated with energy and utility industries for the U.S. Environmental Protection Agency. Mr. Knecht holds a M.S. in Management from the Sloan School of Management at M.I.T., with concentrations in applied economics and finance. He also holds a B.S. in Economics from M.I.T. Prior to joining Industrial Economics as a principal in 1989, Mr. Knecht worked for seven years as an economic and management consultant at Marshall Bartlett, Incorporated. He also worked for two years as an economist in the Energy Group of Data Resources, Incorporated. Industrial Economics, Incorporated 2067 Massachusetts Avenue Cambridge, MA 02140 USA 617.354.0074 | 617.354.0463 fax August, 2006 www.indecon.com ROBERT D. KNECHT EXPERT TESTIMONY SUBMITTED IN REGULATORY PROCEEDINGS: 2004 TO 2008 DOCKET # REGULATOR UTILITY DATE CLIENT TOPICS P-20082044561 Pennsylvania Public Utility Commission Pike County Light & Power October 2008 Pennsylvania Office of Small Business Advocate Electric default service procurement R-3673-2008 Régie de l’Énergie, Québec Hydro Québec Distribution August 2008 AQCIE/CIFQ Electric supply contract modifications. 1550487 Alberta Utilities Commission ENMAX Power Corporation July 2008 D410 Group Formula-based (performance-based) ratemaking; ratepayer-supplied equity contributions. R-20082039417 et al. Pennsylvania Public Utility Commission UGI Utilities (Gas Division) July 2008 Pennsylvania Office of Small Business Advocate Design day demand forecast. R-20082039284 Pennsylvania Public Utility Commission UGI Penn Natural Gas July 2008 Pennsylvania Office of Small Business Advocate Revenue sharing, gas supply costs. R-20082039634 Pennsylvania Public Utility Commission PPL Gas Utilities July 2008 Pennsylvania Office of Small Business Advocate Lost and unaccounted-for gas, gas supply costs. A-20082034045 Pennsylvania Public Utility Commission UGI Utilities, PPL Gas Utilities June 2008 Pennsylvania Office of Small Business Advocate Public benefits of proposed sale. R-20082011621 Pennsylvania Public Utility Commission Columbia Gas of Pennsylvania May 2008 Pennsylvania Office of Small Business Advocate Cost allocation, revenue allocation, rate design. R-20082028039 Pennsylvania Public Utility Commission Columbia Gas of Pennsylvania May 2008 Pennsylvania Office of Small Business Advocate Gas supply cost functionalization; cost reconciliation method, sharing mechanisms. R-3648-2007 Régie de l’Énergie, Québec Hydro Québec Distribution April 2008 AQCIE/CIFQ Electric supply contract modifications. R-20082021348 Pennsylvania Public Utility Commission Philadelphia Gas Works April 2008 Pennsylvania Office of Small Business Advocate Sharing mechanisms, gas supply contracts. R-20082012502 Pennsylvania Public Utility Commission National Fuel Gas Distribution Company March 2008 Pennsylvania Office of Small Business Advocate Transportation and sales customer rate design, design day forecasts. 1 ROBERT D. KNECHT EXPERT TESTIMONY SUBMITTED IN REGULATORY PROCEEDINGS: 2004 TO 2008 DOCKET # REGULATOR UTILITY R-20082013026 Pennsylvania Public Utility Commission T.W. Phillips Gas and Oil Company P-00072342 Pennsylvania Public Utility Commission 2007-004 DATE CLIENT TOPICS March 2008 Pennsylvania Office of Small Business Advocate Rate design treatment of capacity release revenues. West Penn Power d/b/a Allegheny Power February 2008 Pennsylvania Office of Small Business Advocate Default service electricity procurement, rate design, reconciliation. New Brunswick Board of Commissioners of Public Utilities New Brunswick Power Distribution and Customer Service Corporation November 2007 New Brunswick Public Intervenor Cost allocation, revenue allocation, rate design. R-3644-2007 Régie de l'Énergie, Québec Hydro Québec Distribution October 2007 AQCIE/CIFQ Cost allocation, revenue allocation, rate design. P-00072305 Pennsylvania Public Utility Commission Pennsylvania Power Corporation July 2007 Pennsylvania Office of Small Business Advocate Default electric service procurement. R-00072334 Pennsylvania Public Utility Commission UGI Penn Natural Gas, Inc. July 2007 Pennsylvania Office of Small Business Advocate Asset management arrangement, gas procurement. R-00072333 Pennsylvania Public Utility Commission PPL Gas Utilities Corporation July 2007 Pennsylvania Office of Small Business Advocate Design day forecasting, gas procurement. R-00072155 Pennsylvania Public Utility Commission PPL Electric Utilities Corporation July 2007 Pennsylvania Office of Small Business Advocate Cost allocation, revenue allocation, rate design, energy efficiency. R-00049255 (Remand) Pennsylvania Public Utility Commission PPL Electric Utilities Corporation May 2007 Pennsylvania Office of Small Business Advocate Revenue allocation. R-00072175 Pennsylvania Public Utility Commission Columbia Gas of Pennsylvania, Inc. May 2007 Pennsylvania Office of Small Business Advocate Gas procurement. R-00072110 Pennsylvania Public Utility Commission Philadelphia Gas Works April 2007 Pennsylvania Office of Small Business Advocate Gas procurement, margin sharing mechanisms. R-00061931 Pennsylvania Public Utility Commission Philadelphia Gas Works April 2007 Pennsylvania Office of Small Business Advocate Cost allocation, revenue allocation, retail gas competition. P-00072245 Pennsylvania Public Utility Commission Pike County Light & Power Company March 2007 Pennsylvania Office of Small Business Advocate Default service procurement, rate design. 2 ROBERT D. KNECHT EXPERT TESTIMONY SUBMITTED IN REGULATORY PROCEEDINGS: 2004 TO 2008 DOCKET # REGULATOR UTILITY R-00072043 Pennsylvania Public Utility Commission National Fuel Gas Distribution Company C-20065942 Pennsylvania Public Utility Commission R-3610-2006 DATE CLIENT TOPICS March 2007 Pennsylvania Office of Small Business Advocate Design day requirements. Pike County Light & Power Company November 2006 Pennsylvania Office of Small Business Advocate Wholesale power procurement by provider of last resort. Régie de l'Énergie, Québec Hydro Québec Distribution November 2006 AQCIE/CIFQ Post-patrimonial generation cost allocation; cross-subsidization; rate design. P-00052188 Pennsylvania Public Utility Commission Pennsylvania Power Company September 2006 Pennsylvania Office of Small Business Advocate Affidavit: POLR rates, wholesale to retail. R-00061493 Pennsylvania Public Utility Commission National Fuel Gas Distribution Corporation September 2006 Pennsylvania Office of Small Business Advocate Rate of return, load forecasting, cost allocation, revenue allocation, rate design, revenue decoupling. R-00061398 Pennsylvania Public Utility Commission PPL Gas Utilities Corporation August 2006 Pennsylvania Office of Small Business Advocate Cost allocation, revenue allocation, rate design. R-00061365 Pennsylvania Public Utility Commission PG Energy/Southern Union Company July 2006 Pennsylvania Office of Small Business Advocate Merger savings, cost allocation, revenue allocation, rate design. R-00061519 Pennsylvania Public Utility Commission PPL Gas Utilities Corporation July 2006 Pennsylvania Office of Small Business Advocate Design day weather and throughput forecasts; gas supply hedging. R-00061518 Pennsylvania Public Utility Commission PG Energy/Southern Union Company July 2006 Pennsylvania Office of Small Business Advocate Design day weather and throughput forecasts; gas supply hedging. A-125146 Pennsylvania Public Utility Commission UGI Utilities, Inc., Southern Union Company June 2006 Pennsylvania Office of Small Business Advocate Public benefits of proposed sale of PG Energy to UGI; asset management agreement. R-00061355 Pennsylvania Public Utility Commission Columbia Gas of Pennsylvania May 2006 Pennsylvania Office of Small Business Advocate Gas supply and hedging plan; procedural issues R-00061296 Pennsylvania Public Utility Commission Philadelphia Gas Works April 2006 Pennsylvania Office of Small Business Advocate Gas procurement and procedural issues. R-00061246 Pennsylvania Public Utility Commission National Fuel Gas Distribution March 2006 Pennsylvania Office of Small Business Advocate Gas procurement; unaccounted for gas retention rates. 2005-002 Refiling New Brunswick Board of Commissioners of Public Utilities New Brunswick Power Distribution and Customer Service Company New Brunswick Public Intervenor Cost allocation, rate design. February 2006 3 ROBERT D. KNECHT EXPERT TESTIMONY SUBMITTED IN REGULATORY PROCEEDINGS: 2004 TO 2008 DOCKET # REGULATOR UTILITY P-00052188 Pennsylvania Public Utility Commission Pennsylvania Power Company R-3579-2005 Régie de l'Énergie, Québec 2005-002 DATE CLIENT TOPICS December 2005 Pennsylvania Office of Small Business Advocate Cost allocation and rate design for POLR supplies. Hydro Québec Distribution November 2005 AQCIE/CIFQ Generation cost allocation; crosssubsidization; revenue allocation. New Brunswick Board of Commissioners of Public Utilities New Brunswick Power Distribution and Customer Service Company August 2005 New Brunswick Public Intervenor Cost allocation, rate design. R-00050538 Pennsylvania Public Utility Commission PG Energy July 2005 Pennsylvania Office of Small Business Advocate Gas procurement diversification. R-00050540 Pennsylvania Public Utility Commission PPL Gas Utilities Corporation July 2005 Pennsylvania Office of Small Business Advocate Gas procurement, hedging, retention rates, sharing mechanism. R-00050340 Pennsylvania Public Utility Commission Columbia Gas of Pennsylvania May 2005 Pennsylvania Office of Small Business Advocate Gas procurement, hedging and diversification. R-3563-2005 Régie de l'Énergie, Québec Hydro Québec Distribution April 2005 AQCIE/CIFQ Generation cost allocation; industrial demand response. R-00050264 Pennsylvania Public Utility Commission Philadelphia Gas Works April 2005 Pennsylvania Office of Small Business Advocate Gas procurement, risk hedging, financing costs in the gas cost rate. R-00050216 Pennsylvania Public Utility Commission National Fuel Gas Distribution March 2005 Pennsylvania Office of Small Business Advocate Gas supply procurement and forward pricing policies. EB-2004-0542 Ontario Energy Board Union Gas Limited March 2005 Tribute Resources Inc. Cost allocation and rate design for service to embedded storage pools. R-00049884 Pennsylvania Public Utility Commission Pike County Light and Power (Gas Service) January 2005 Pennsylvania Office of Small Business Advocate Fair rate of return, cost allocation, class revenue assignment. R-00049656 Pennsylvania Public Utility Commission National Fuel Gas Distribution December 2004 Pennsylvania Office of Small Business Advocate Fair rate of return, uncollectibles costs, automatic rate adjustments, cost allocation, rate design. R-3541-2004 Régie de l'Énergie, Québec Hydro Québec Distribution November 2004 AQCIE, CIFQ Allocation of post-patrimonial generation costs. C-20031302 Pennsylvania Public Utility Commission Columbia Gas of Pennsylvania July 2004 Pennsylvania Office of Small Business Advocate Customer assistance program funding and cost allocation. R-049255 Pennsylvania Public Utility Commission PPL Electric Utilities Corporation June 2004 Pennsylvania Office of Small Business Advocate Transmission and distribution cost allocation, rate design, automatic distribution increases. 4 ROBERT D. KNECHT EXPERT TESTIMONY SUBMITTED IN REGULATORY PROCEEDINGS: 2004 TO 2008 DOCKET # REGULATOR UTILITY P-042090 et al. Pennsylvania Public Utility Commission Philadelphia Gas Works RP-2003-0203 Ontario Energy Board R-049157 P-042090 DATE CLIENT TOPICS June 2004 Pennsylvania Office of Small Business Advocate Collections and universal service cost issues. Enbridge Gas Distribution May 2004 Vulnerable Energy Consumers Coalition et al. Cost allocation, rate design for pipeline and storage costs. Pennsylvania Public Utility Commission Philadelphia Gas Works April 2004 Pennsylvania Office of Small Business Advocate Cash receipts reconciliation clause. R-049108 Pennsylvania Public Utility Commission National Fuel Gas Distribution March 2004 Pennsylvania Office of Small Business Advocate Uncollectible cost responsibility for standby charges. Application 1306819 Alberta Energy and Utilities Board ENMAX Power Corporation January 2004 Calgary Industrial Group Calgary Building Owners T&D cost allocation, rate design, ratepayer equity funding. October 2008 Industrial Economics, Incorporated 2067 Massachusetts Avenue Cambridge, MA 02140 USA 617.354.0074 | 617.354.0463 fax www.indecon.com 5