Situation
A transmission-owning utility faced the prospect of a major regional transmission buildout that could result in significant new costs for its customers. While the utility recognized the reliability and broader system benefits of transmission expansion, leadership wanted to understand how it could mitigate customer rate impacts and potentially participate economically in the infrastructure being developed.
Approach
CRA’s Energy Practice worked with the utility to develop and evaluate a range of strategic alternatives. We assessed potential direct investment and ownership structures, partnerships with other similarly situated utilities, alternative financial and rate-credit mechanisms, and opportunities to influence regional and state policy. CRA brought together expertise in transmission strategy, ratemaking, infrastructure investment, and commercial structuring to evaluate the advantages, risks, and feasibility of each pathway and help leadership build consensus around a preferred strategy.
Result
CRA provided leadership with a strategic framework for responding proactively to regional transmission expansion rather than treating resulting costs as a fixed outcome. The work identified potential pathways for reducing customer impacts, participating in transmission investment, and collaborating with other utilities to strengthen the company’s strategic position as the regional transmission system evolved.
