Cost Recovery Mechanisms
The Prime Group can assist your utility in developing cost recovery mechanisms such as fuel adjustment clauses ("FACs"), purchased power adjustment clauses ("PPAs"), environmental cost recovery mechanisms ("ECRs'), and gas cost recovery adjustments ("GCRs"). These mechanisms provide for proper cost recovery while helping protect the utility from earnings erosion. We can also help you develop alternative rate mechanisms such as earnings sharing mechanisms and performance based rates. We testified as expert witnesses in federal and state jurisdictions regarding these cost recovery mechanisms.
