Rate Cases

Utility ratemaking lies at the core of federal regulation of the utility business. Despite the evolution of market-based rates in the energy business, traditional cost-of-service ratemaking remains a cornerstone of the public-utility business model. Troutman Sanders excels in regulatory work and remains a leader in developing and prosecuting traditional cost-of-service rate cases for transmission and power.

We represent transmission owners and power suppliers in filing and defending cost-based regulated rates at the Federal Energy Regulatory Commission (FERC) and have the technical knowledge necessary to handle those engagements effectively. Our lawyers have considerable know-how in the development of cost-based rates arena. This includes full cost-of-service studies, development of revenue requirements, rate base, depreciation, rates of return (including return on equity, or ROE), expense calculations and load-divisor calculations.

  • Stated Transmission Rates – In the last several years, our lawyers have prepared and defended full cost-of-service transmission-rate cases for several utilities adopting fixed, or stated, transmission rates.
  • Formula Transmission Rates – Many transmission owners now use formula rates for transmission service. While still based on cost-of-service principles and inputs, formula rates present different opportunities and challenges for recovering a transmission-revenue requirement over time. Our lawyers have considerable experience with formula rates and their implementation protocols.
  • Production-Side Rates – Many power sales or bundled-requirements sales are still made on a cost-of-service basis. Our lawyers have prepared and filed rate cases for requirements service in recent years and have considerable experience in this area.


Practice Highlights