AKT’s Public Utility Consulting Services are designed to help you achieve outcomes
vital to your success.  AKT’s services are not canned approaches.  They are uniquely designed to
address your organization.  Our Public Utility Consulting Services include:

• Utility Rate Studies
• Cost-of-Service Studies  
• Rate Design Studies
• Cost Allocation Studies
 
Our public utility consulting team specializes in providing these services to a broad range of public
utility sectors to include telecommunication companies, water and wastewater companies and
refuse companies.  We have the expertise to develop, support and defend the results of these
studies on behalf of our clients in formal proceedings before a state regulatory commissions or local
city councils.  AKT’s studies are consistently accurate, thorough, well-developed and supported,
and yet are completed at reasonable cost and in a timely fashion.  AKT and its principals pride
themselves on the quality work the firm has performed over the years and the credibility it has
gained with the clients we serve.  
 
Utility Rate Studies
Utility rate studies focus on determining the level of revenue a utility is entitled to receive.  Our
studies will determine whether, at existing rates, a utility is operating at a revenue surplus or at a
deficiency.  From these results we can determine the percentage rate increase or decrease needed
to existing rates so that the utility can achieve the required revenue level necessary to meet its
service requirements to its ratepayers.  

Cost-of-Service Studies
Cost-of-Service Studies focus on determining the contribution margin associated with a utility’s
services by service category.  These studies provide information to policy makers to determine if
rates should be adjusted to reflect their direct costs.  
 
Rate Design Studies
Rate design studies are developed when the utility proposes to change its existing rate structure. 
AKT assists clients in designing rate structures to meet its goals and objectives whether they
involve changes to the rate structure to match cost causer with cost payer goals; conservation of
the utility’s resources by modifying rates from a flat rate to metered rate application, or other public
policy goals and objectives that can be achieved through changing the utility’s rate structure. 

Cost Allocation Studies
Cost allocation studies focus on determining how costs are shared between affiliated entities, both
regulated and non-regulated, or in the case of a municipally owned utility these studies determine
how indirect centralized services cost are shared between general government departments and
the utilities.  The goal in using these studies is to ensure that cross-subsidization is not occurring
between a utilities mix of regulated and non-regulated utilities and operations or between service
areas.  In the case of municipally owned utilities the goal of this study is to ensure that the utility is
not incurring more than its fair share of the municipalities indirect centralized services cost.

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