Management Applications Consulting, Inc.

Services provided by Management Application Consulting, Inc.


Pricing and Rate Making

Today's competitive utility market requires examining traditional and innovative pricing strategies. MAC's consultants are nationally recognized experts in state-of-the-art computer techniques and rate consulting services for all types of utilities, regulatory agencies, and large power consumers. MAC gives you the competitive edge you need.

Pricing and Rate Making Services

Before the implementation of competitive electric service, there was little need for comprehensive and integrated pricing strategies. However, major changes in the competitive market for electricity have forced utilities, customers, and regulators to re-examine traditional pricing strategies. The impact of intensifying competition, customer knowledge, and technological progress has placed increased importance upon pricing electricity. Although the impact of these competitive and operational forces will differ from company to company, every utility and every consumer will be affected to some degree. Utilities that succeed in an increasingly competitive economic environment will be those that have been able to identify potential markets, formulate intelligent marketing and pricing objectives, and effectively implement programs aimed at carrying out these objectives. No rate form is ideal for all situations. The proper pricing path you chose depends upon your unique circumstances that the pricing strategy must address.

MAC's services employ state-of-the-art computer techniques and have provided rate consulting services to investor owned utilities, municipal utilities, cooperative owned electric utilities, regulatory agencies, and large power consumers for more than a decade in a practical and economical fashion. MAC's consultants are nationally recognized as experts in the field of electric and natural gas utility pricing services. We have experience in time-of-use pricing, real time pricing, economic development rates, special contract pricing, multi-part tariffs, pricing unbundled services, ancillary service pricing for unbundled transactions, interruptible rates, and many other innovative pricing forms.

If you would like additional information regarding our pricing services, we will be glad to send it to you. Click here to fill out the no obligation request for information Order Form.

Cost Analyses

The costs of providing service are among the most frequently cited and useful criteria used in the development of rates. MAC consultants provide the know-how and experience to help you define and support your pricing recommendations.

Embedded Cost of Service Model

The Embedded Cost of Service Model produces an accounting cost of service study to identify class costs of service and revenue requirements suitable for retail rate filing. This model can produce time-differentiated studies identifying costs by component (capacity, energy and customer) and/or by function (production, transmission and distribution). This state-of-the-art model produces exhibit-quality output capable of satisfying any electric, gas or jurisdictional requirements.

Marginal Cost of Service Model

The Marginal Cost of Service Model is an integrated spreadsheet that develops marginal unit cost data for the total system and for each customer class. The model employs many different techniques, such as statistical trending of historical and/or projected plant and O&M data to mechanically derive multiple estimates of marginal costs. The model also produces typical weekday and typical weekend day hourly marginal cost data in order to objectively define rating periods or to estimate real time pricing rates.

If you would like additional information regarding our marginal cost of service model or our embedded cost of service model, we will be glad to send it to you. Click here to fill out the no obligation request for information order form.

Loss Analyses

MAC's unique approach to line and unaccounted-for energy loss analysis provides invaluable data for more accurate results. Use MAC to provide a comprehensive "turn-key" service, or use us to provide customized training and logistical support to your personnel.

Bottom Up and Top Down Integration

MAC's extensive background in performing line and transformer demand and energy loss studies for our clients is unsurpassed. Our technically superior line loss software is unique to the market today. MAC's methodology has been accepted by numerous regulatory authorities. Our approach develops separate demand (kW) and energy (kWh) cumulative loss factors for each voltage level of service. These loss factors can be readily used to adjust metered sales data for losses in performing cost-of-service studies, determining voltage discounts, adjusting rates for service delivery voltages, and other analyses which may require loss adjustments. We employ "in house" resources such as load flow results, transformer loading reports, and distribution plant investments based on accounting records and published reports. Our services are available as either a "turn key" service or as a service that trains your personnel to effectively and efficiently use our loss analysis software in future projects.

MAC's experience, knowledge, and dedication to quality work products can be a valuable service to you. If you would like additional information about MAC's Loss Analysis services, we will be glad to send it to you. Click here to fill out the no obligation request for information Order Form.

Lead Lag Studies

MAC has performed numerous lead lag studies for gas and electric utilities. These studies involve determining the working capital requirements for base rates and also working capital requirements for recoveries outside of base rates such as fuel, purchased power, purchased gas, and specific expense recovery clauses.

For more information regarding MAC’s lead lag study capabilities, call us at (610) 670-9199 and ask for Michael Morganti or Paul Normand, e-mail Michael Morganti at mmorganti@manapp.com, or click here to fill out the no obligation request for information Order Form.

Depreciation Service

MAC's internationally recognized depreciation experts provide crucial information that enables you to establish the appropriate level for recovery of capital. Whether your company is a regulated utility or a private sector business, MAC's experienced professionals can assist you in capital recovery and other depreciation issues.

MAC’s consultants have undertaken depreciation studies that have been accepted in numerous regulatory proceedings. MAC’s depreciation studies are commonly used in regulatory proceedings to support depreciation rates. By our careful and complete analysis of utility plant life characteristics, salvage value and cost of removal, we can provide your utility with the appropriate rates for the accrual of depreciation. MAC’s depreciation experts review accounting records, conduct on-site investigations of property, interview company personnel, review plant construction budgets and resource plans, select the mortality characteristics appropriate for calculating depreciation rates, and calculate the appropriate rates. MAC’s specialized training and experience are unique in the field of depreciation and can provide solid support for your utility’s depreciation rates.
For more information regarding MAC’s depreciation services, call us at (610) 670-9199 and ask for Paul Normand or James Aikman, e-mail Paul Normand at pnormand@manapp.com, or click here to fill out the no obligation request for information Order Form.

Witness Preparation

A successful rate case hearing can make a world of difference to your bottom line. MAC draws on experience from hundreds of successful rate cases to offer training services from basic terminology and information to highly specialized witness preparation. Our professionals can ensure you are prepared for your rate hearings.

Customized Software

MAC has created numerous customized software packages to deal with highly specialized needs. MAC's software, accepted by many regulatory commissions, includes programs to simplify difficult tasks such as Cost of Service studies, Marginal Cost of Service studies, and demand and energy loss data maintenance. Ask MAC's experts about our other software packages, or about customizing software for you

Other MAC Services

Because MAC has a diverse mixture of cross-trained economists, accountants, and engineers with wide-ranging real world experience, our clients often use us to address those hard-to-define, one-of-a-kind jobs. These jobs are quite varied and include such services as electric plant valuation, weather normalization studies adjusting sales and revenues, preparation of line extension policies, customer information and billing program design and implementation, rate case training, instructional workshops, unbilled calculations review, review and support of affiliated service organization charges, competitive market implementation strategies, management reviews, and other diverse services. We are not all things to all people. However, our unique combination of experience, expertise, and job dedication places MAC’s consultants among the most effective problem solvers available in today’s consulting market.