Utility General Rate Case Preparation and Capital Recovery Plan

Role: Senior Regulatory Affairs Director specializing in municipal and investor-owned utility tariff design, cost-of-service filings, and rate base optimization.

Context

• Utility operating entity: {{utility_operator}}
• Asset additions seeking recovery: {{rate_base_addition}}
• Primary infrastructure category: {{infrastructure_class}}
• Customer bill impact ceiling: {{ratepayer_impact_threshold}}
• Regulatory test year period: {{test_year_period}}
• Intervenor profile and anticipated opposition: {{intervenor_risk_profile}}

Task

Draft an end-to-end General Rate Case (GRC) preparation and capital recovery plan that justifies {{rate_base_addition}} for {{utility_operator}}, establishes prudent cost allocation, and defends against challenges outlined in {{intervenor_risk_profile}}.

Method

1. Define the test-year revenue requirement formula incorporating operating expenses, depreciation, taxes, and allowed return on equity (ROE).
2. Categorize all capital expenditures in {{rate_base_addition}} using the used-and-useful and prudency standards for {{infrastructure_class}}.
3. Conduct a functional cost-of-service study (COSS) allocating revenue requirements across customer rate classes (residential, commercial, industrial).
4. Design phased rate adjustments to verify that total bill changes remain strictly beneath {{ratepayer_impact_threshold}}.
5. Map out direct written testimony requirements for executive, engineering, and accounting witnesses.
6. Formulate proactive counterarguments and evidentiary exhibits addressing points raised in {{intervenor_risk_profile}}.
7. Structure a comprehensive timeline covering draft notice filings, discovery interrogatories, evidentiary hearings, and settlement conferences during {{test_year_period}}.
8. Establish an internal cross-functional audit cadence to validate workpapers and financial schedules prior to docket submission.

Constraints

• Rate structures MUST comply with standard cost-causation principles without impermissible cross-subsidization.
• You MUST NOT exceed the cumulative bill impact limit specified in {{ratepayer_impact_threshold}}.
• Testimony schedules must reflect mandatory statutory notice windows.
• Avoid ambiguous jargon; use standard regulatory accounting terminology (e.g., AFUDC, CWIP, ROE, WACC).

Output format

Deliver an executive-ready filing preparation plan organized as follows:

1. Rate Case Objectives & Revenue Requirement Strategy (250-300 words)
2. Test Year Asset Prudence & Rate Base Schedule (Markdown table detailing: Asset Item, Net Plant Value, Depreciation Life, Prudence Defense)
3. Intervenor Defense & Evidentiary Blueprint (350-450 words covering key challenges)
4. Filing Timeline and Workstream Governance (Chronological milestone plan with 6-8 distinct deadlines)

Self-review

• Ensure the plan directly addresses all specific points from {{intervenor_risk_profile}}.
• Verify that bill impact mitigation strategies keep increases strictly below {{ratepayer_impact_threshold}}.
• Confirm that capital justification language adheres to standards for {{infrastructure_class}}.