Tariff Design Optimizer
Design and validate complex utility rate structures with revenue reconciliation
What You Can Do
You can transform revenue requirements into defensible rate structures by modeling load profiles, calculating cost allocations, and simulating rate impacts across customer segments. The skill helps you identify cross-subsidy flows, draft compliant rate schedules, and document design rationale for regulatory filings—turning tariff design from a linear process into an iterative optimization cycle.
Features
Convert approved revenue requirements into rate structure components with mathematical precision
Apply embedded cost of service or marginal cost methodologies across residential, commercial, industrial, and specialty customer classes
Quantify and visualize unintended subsidy flows between customer segments to ensure equitable rate design
Incorporate historical billing data and demand forecasts to model realistic consumption patterns and rate impacts
Generate clear, legally precise tariff language with all required terms, conditions, and effective dates
Test rate impacts under different demand scenarios, seasonal variations, and customer behavior assumptions
Check proposed rates against cost recovery requirements, rate design principles, and jurisdiction-specific standards
Build defensible design exhibits and rationale statements for regulatory hearings and public filings
Example Output
Example 1: Cost Allocation Summary
Residential Class:
- Allocated Cost: $45.2M (58%)
- Peak Demand Share: 42%
- Energy Share: 65%
- Proposed Revenue: $46.8M
- Cost Recovery Ratio: 1.035x
Commercial Class:
- Allocated Cost: $28.1M (36%)
- Peak Demand Share: 45%
- Energy Share: 30%
- Proposed Revenue: $27.3M
- Cost Recovery Ratio: 0.971x
Example 2: Cross-Subsidy Alert Residential customers subsidizing EV charging by $2.1M annually due to demand-only allocation method. Recommend demand + energy hybrid approach to reduce subsidy to $0.8M.
Example 3: Rate Schedule Excerpt Schedule RSC (Residential Service - Current): Base Charge: $18.50/month Energy Charge: $0.1247/kWh (flat) Demand Charge (if >15kW peak): $12.40/kW-month
What's Included
- SKILL.md instruction file with rate design methodology and validation frameworks:
- Cost Allocation Template: Excel-ready structure for embedding service study data and calculating class-specific allocations
- Cross-Subsidy Analysis Checklist: Step-by-step guide for identifying and quantifying subsidy flows
- Rate Schedule Drafting Framework: Standard tariff language templates for common rate structures (fixed-variable, TOU, inclining block, demand response)
- Regulatory Compliance Validation Worksheet: Checklist of cost recovery, rate design principles, and jurisdiction-specific requirements
Who It's For
- Rate Analysts — Design and model tariff structures in regulated utility environments
- Utility Planning Managers — Evaluate rate design alternatives for cost recovery and customer impact
- Regulatory Affairs Specialists — Prepare tariff design exhibits and cost allocation documentation for filings
- Energy Consultants — Advise municipal and cooperative utilities on rate structure optimization
- Revenue Requirement Specialists — Translate approved revenue into rate design components with allocation precision
Best For
- Designing new rate schedules or restructuring existing tariff classes
- Allocating costs across residential, commercial, industrial, and specialty (EV, solar, storage) customer classes
- Comparing multiple tariff design methodologies (embedded cost, marginal cost, hybrid approaches)
- Modeling rate impacts and cross-subsidies under different demand and consumption scenarios
- Drafting rate schedule language and preparing regulatory filing exhibits with design rationale
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