In today's market, it is imperative to develop pricing strategies that recognize and embrace market dynamics and the economics of competition while avoiding regulatory disputes. SAIC's approach to rates design integrates both traditional methods that consider consumer class, demand, and energy usage with emerging pricing methods such as business case evaluations for energy efficiency initiatives and demand response programs.
We have developed sophisticated computer models to forecast future fixed and variable costs of utility operations, allowing a detailed examination of future revenue and regulatory requirements and resulting rate levels. SAIC's rates and regulatory services integrates long-range impacts on the cost of service of proposed climate change regulations with dynamic real-time pricing strategies, providing our customers with solutions that capture both company and consumer needs.
Our thorough knowledge of the current market dynamics helps our customers understand the factors that influence retail rate setting and pricing signals and how they can best maneuver in the changing environment. Retail rates can be seriously impacted by factors such as the heavy levels of new investment, technological breakthroughs, government mandates, wholesale power deregulation, and advanced metering. SAIC's rates and regulatory consulting services help our customers maintain or enhance their financial stability while providing reliable service at equitable rates for their consumers.