Cost-of-Service Studies
Allocate costs across customer classes, calculate rates of return and uncover where existing structures differ from cost causation.
The Prime Group · Established 1996
Clarity behind every rate decision.
Specialized cost-of-service studies, rate design, financial analysis and regulatory support for utilities facing decisions that need to stand up to scrutiny.
From operating costs to defensible rates
Analysis → Insight → ActionTPG / 01
1996
Firm established
200+
Utilities served since 1996*
Direct
Principal-led consulting
What we do
Specialized support when the numbers really matter.
Our work brings together engineering, economics, financial data and the practical realities of utility governance.
Rate Design & Pricing
Develop cost-based, time-of-use, demand and other rate options with transparent revenue and customer-impact modeling.
Revenue Requirements
Evaluate historical financial results, pro forma adjustments and anticipated costs to support sound revenue planning.
Regulatory & Rate Cases
Support filings, data requests, analytical exhibits and expert testimony in regulatory proceedings.
Financial & Technical Analysis
Assess depreciation, load characteristics, cost recovery and financial implications of alternative strategies.
Board Presentations
Translate technical findings into clear options that management teams and boards can understand and evaluate.
The Prime Group approach
More than a report. A model you can actually use.
The strongest analysis gives decision-makers the ability to understand assumptions, compare alternatives and defend their choices.
Our approach emphasizes customized models, transparent methodology and direct involvement from an experienced consultant. Deliverables are shaped around your utility's structure, its governing body and the questions you need answered.
Model licensing and final deliverables are determined by the engagement agreement.
1
Understand the utilityReview the existing rates, financial information, customers, load patterns and goals.
2
Build defensible analysisDevelop cost allocations, revenue requirements and scenario-based rate models.
3
Make the tradeoffs visibleCompare rate alternatives, customer impacts and potential revenue outcomes.
4
Support informed decisionsCommunicate findings to management, boards and regulators as needed.
Jeff WernertPrincipal · Since 2016
Meet the principal
Jeff Wernert
Principal · The Prime Group, LLC
Jeff has served utilities through The Prime Group since 2009 and has led the firm as Principal since 2016. He holds both bachelor’s and master’s degrees in Electrical Engineering from the University of Louisville, combining technical judgment with cost-of-service and utility rate expertise.
His work spans investor-owned utilities, electric cooperatives, and municipal utilities across the United States. Jeff develops wholesale and retail rate structures, supports regulatory filings and testimony, presents findings to utility boards, and advises clients on Midcontinent ISO technical matters. Today, clients work directly with Jeff throughout the engagement.
Experience across the full process: cost allocation, revenue requirements, rate alternatives, board presentations and regulatory support.
B.S. & M.S., Electrical EngineeringUniversity of LouisvilleUtility consulting since 2009Principal since 2016
Who we serve
Built for utility decision-makers.
The Prime Group has historically served investor-owned, cooperative and municipal utilities across electric, gas and water sectors. Jeff’s current practice is particularly focused on electric utility analysis.
Electric CooperativesDistribution and generation & transmission
Investor-Owned UtilitiesFinancial and regulatory analysis
Municipal UtilitiesRate strategy and governing-board support
Gas & Water UtilitiesCost allocation and financial planning
Experience & perspective
Technical work. Decisions with real consequences.
Jeff’s experience includes rate case support in Kentucky, Indiana and Maryland, presentations to electric cooperative boards and industry organizations, and ongoing work on wholesale market issues. Engagement-specific examples can be added with client approval.
Adapting rates to changing consumption
Distributed generation, time-of-use and load shifts all affect how utilities recover the costs of service.
What does it actually cost to serve each class?
Cost-of-service models help utilities understand cross-subsidies, margin recovery and structural rate tradeoffs.
Helping decision-makers understand the options
A rate recommendation is only useful when leaders can assess its assumptions, impacts and consequences.
Start a conversation
Have a rate or regulatory challenge?
Tell Jeff about your utility, the questions you're navigating and the decision you're working toward.
Work directly with Jeff to scope the analysis and decisions your utility needs to make.
Contact the principal
Tell us about your project
Share a few details and Jeff will follow up directly.