Assessment of Utility Costs

Exeter has conducted more than 50 utility rate analysis studies for federal installations in just the last five years. These studies include a comprehensive evaluation of options and methods for reducing utility costs, and for making effective, efficient use of utility services. Exeter has specific experience with the review and assessment of special utility service arrangements; for example, those involving federal power marketing agencies which often have unusual and complicated arrangements with multiple wholesale and retail electric service providers.

As part of the assessment of utility costs, Exeter develops facility-specific bill simulation models to determine the financial impacts of rate changes, market prices, or new or revised utility contracts. Bill simulations are also used to validate utility costs, contract terms and conditions, rate charges, and rate design components. Very large utility customers, such as military installations or federal government complexes, must make a special effort to regularly audit the accuracy and the appropriateness of the utility charges for which they are invoiced. This is because small errors in the rates or billing determinants used can result in a substantial error in total costs due to the large volumes of energy involved, and because such large customers often have special contractual arrangements that make the billing process very complicated and subject to frequent errors.

The Exeter Team has performed well over 100 billing and financial due diligence reviews for a wide variety of utility service arrangements, including both competitive and regulated market environments. Bill reviews are often conducted as part of a broader utility study, rate case intervention, contract negotiation, or procurement assistance. A significant component of the bill review is an understanding of the charges applied and the rate design in place.