Tariff Analysis

Few customers understand that a utility is only required to place a customer on an appropriate rate, not necessarily the one yielding the lowest annual cost. Fortunately for its customers, Luthin Associates has extensive experience in interpreting and modeling utility tariffs. In one case, Luthin secured a Business Incentive Rate (BIR) offering a substantial discount off the utility bill for a customer that was rehabilitating a building. For another, it worked out a deal to re-price a utility charge for a data center’s electric service expansion savings the customer $17 million. Under a State program tied to job creation, Luthin secured a discounted electric rate for another customer that saved more than $3 million during the life of the award. Through such work, Luthin has saved more than $150 million for its clients.

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Despite the increasing complexity of tariffs, we successfully guide our clients by analyzing details of the rates and characteristics of our clients’ facilities. We have, for example, modeled electric and steam standby rates as well as natural gas tariffs for distributed generation. With the same keen eye, we help customers choose between standard or voluntary time-of-use (TOU) rates. Large customers (subject to hourly supply pricing) are advised that it may be more beneficial for them to contract for third-party power supply instead. To determine which options will annually cost less, Luthin performs a sophisticated analysis using complex utility data. The same technical precision is applied to modeling standby rates, redistribution to tenants, and rate switching, just to name a few. We are known for our ability to negotiate favorable long-term discounted rates for our electric, natural gas and steam clients.

Our extensive knowledge and presence in the regulatory arena provides us with an insider’s view of many rate cases. We have developed numerous proprietary market and utility rate models which have been fully vetted internally and by independent market and regulatory experts. These proprietary market and utility rate models are useful in Tariff and Cost Optimization and analyze the cost-benefit opportunities for our clients across different rate structures. When desirable, Luthin staff will propose a different rate design or economic opportunity.  Luthin Associates is extremely well regarded within this area of expertise and should be your consultant of choice.

Capturing those savings requires perseverance and planning. Luthin Associates manages the entire process to expedite issuance of refunds, review subsequent bills to ensure accuracy, and oversee communications with agencies and clients to ensure that there are no missteps.