Technical Advisory Committee for Rocky Mountain Region Utility

A regional utility service approximately 1.5 million people in the City and surrounding suburbs is one of the largest utilities in the state. The relationship between the utility and its extraterritorial customers – suburban wholesale customers, called “Distributors” – is delicate. The utility is allowed to earn a return on their investment to serve Distributors; however, that return and all other costs of service must follow cost-allocation methods prescribed by the wholesale service agreements. The way that the utility performs those calculations has a significant impact on the rates that the Distributors pay and, therefore, the Distributors have ongoing concerns regarding the utility’s processes.