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Cost allocation, one of the major steps in the traditional regulatory process for setting utility rates, has been addressed in several important publications over the past 60 years. These works and historic best practices are foundational — but the legacy methods from the 20th century are no more suited to the new realities of the 21st century than the engineering of internal combustion engines is to the design of new electric motors.

Charting a new path on cost allocation is an important part of creating the fair, efficient and clean electric system of the future. RAP’s new manual, Electric Cost Allocation for a New Era, offers a comprehensive approach to this new path. In this webinar, Mark LeBel and Jim Lazar from RAP and Paul Chernick from Resource Insight discussed and answered questions about their newly published work, covering the basics of cost allocation, current best practices and cutting-edge reforms.