CLIENT SUCCESS 3  Analyzing Regulatory Leakage


Our client’s regulatory return on equity relative to their financial return was lagging, and without a more detailed system, they were left to impose top-side changes to their expense and capital forecast. This approach lacked the requisite detail to identify and correct specific problem areas.



The client was able to determine precisely what was contributing to the lower regulatory ROE and make strategic decisions to improve the loss. Better information about the sources of leakage helped the company’s regulatory affairs department work with commissions to suggest changes to the jurisdictional rules.