HKA assists utility in recovering legal expenses through rate base
Brief
Since 1982, an energy regulatory body has charged utilities throughout the United States a fee for every kilowatt-hour of electricity sold by nuclear power plants. In return for the fee, the energy regulatory body was required to begin removing the highly radioactive used nuclear fuel from these plants no later than January 31, 1998. The energy regulatory body had yet to perform this, causing a delay in performance for the client utility. The utility incurred significant costs to store substantially greater quantities of discharged spent fuel on-site at one of its nuclear power plants than it would have had the energy regulatory body performed as contractually required.
In 2000, following unsuccessful attempts at settlement, the utility filed a complaint with the U.S. Court of Federal Claims to recover the costs that would not have otherwise been incurred if the energy regulatory body had performed its contractual obligations. After an extended proceeding that culminated in a lengthy trial in 2007, the utility successfully settled its claim against the energy regulatory body for approximately US$45.5 million in 2011.
What we did
HKA experts were retained by outside counsel for the client utility to provide detailed analyses of various spent nuclear fuel cases and litigation fees incurred. We memorialized the results of the analyses in pre-filed rebuttal testimony with the state’s Public Service Commission (PSC), which regulates the state’s public utilities. Our rebuttal testimony detailed various aspects of the utility’s spent nuclear fuel suit and compared it to other spent nuclear fuel cases, noting various unique issues and aspects of the utility’s spent nuclear fuel case regarding damages and causation.
HKA’s rebuttal testimony also opined that a head-to-head comparison between any two spent nuclear fuel cases is difficult at best, especially given the significant differences between other spent nuclear fuel cases and the current case. After detailing specific issues and facts related to the utility’s spent nuclear fuel matter, HKA opined that the legal fees incurred in this case were reasonable and in line with, or less than, those incurred by other utilities in other cases. Our experts also testified live at a PSC hearing on the matter, with cross-examination by interveners and PSC staff.
Outcomes
The state’s PSC decided not to reduce the amount of legal fees recovered by the client utility. The PSC found that it was “difficult to determine the reasonableness of legal expenses in one case by comparing them to legal expenses from another case.” This finding validated or adopted the conclusions and opinions provided in the HKA pre-filed and live testimony. Through our experts’ knowledge of the nuclear industry, and specifically of spent nuclear fuel matters, we were able to assist the utility in fully recovering its legal expenses from the spent nuclear fuel suit.
The utility has and will continue to refund its customers the settlement amount from the energy regulatory body. After an intervener group compared the settlement the utility received from the energy regulatory body with the legal costs expended against the settlement amount and legal fees of another utility, it proposed a reduction in the legal fees the utility could recover from the rate base.
![](https://cdn.hka.com/wp-content/uploads/2019/07/shutterstock_137593487-480x340.jpg)
"Through our experts’ knowledge of the nuclear industry, and specifically of spent nuclear fuel matters, we were able to assist the utility in fully recovering its legal expenses from the spent nuclear fuel suit."
-
ClientUtility
-
ValueUS$45.5 million
-
ServicesCommercial Damages and Valuation, Expert
-
SectorsConstruction and Engineering, Power and Utilities
RELATED PROJECTS
RELATED PROJECTS
![](https://cdn.hka.com/wp-content/uploads/2019/08/shutterstock_1112383511-280x210.jpg)
Major Canadian Utility Commercial Damages Matter
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/10/Picture2-280x210.jpg)
New School Campus, Ultimo Primary School
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/12/shutterstock_1085652248-280x210.jpeg)
Subsea Power Cable Failure
Asia
![](https://cdn.hka.com/wp-content/uploads/2022/06/ralph-kelly-z9fFOzL5L_Y-unsplash-280x210.jpg)
Home security company sale agreement
Americas
![](https://cdn.hka.com/wp-content/uploads/2024/07/shutterstock_1528754699-small-280x210.jpg)
Public transport service improvement
Oceania
![](https://cdn.hka.com/wp-content/uploads/2020/01/faris-mohammed-uG5_ERHN040-unsplash-280x210.jpg)
Independent Quantum Expert Opinion of Highway Maintenance Contract
Europe
![](https://cdn.hka.com/wp-content/uploads/2020/10/UNSW5-280x210.jpg)
UNSW Capital Projects Sustainability Framework
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/12/shutterstock_1289920885-280x210.jpeg)
Subsea Cable Installation & Trenching Operations
Asia
![](https://cdn.hka.com/wp-content/uploads/2022/09/chris-dack-6H9XK16F3wU-unsplash-280x210.jpeg)
Business Park, Surrey
Europe
![](https://cdn.hka.com/wp-content/uploads/2019/06/pexels-pixabay-162646-280x210.jpeg)
Missouri Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/01/matt-seymour-NcmOysOF_Mw-unsplash-280x210.jpg)
Independent Commercial, Cost & Risk Review of Road Development
Europe
![](https://cdn.hka.com/wp-content/uploads/2020/11/yucar-fotografik-cfR-V1QuEKw-unsplash-280x210.jpg)
Sydney Water, Partnering for Success (P4S)
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/12/shutterstock_1372606610-280x210.jpeg)
Subsea Interconnector Cable Failure
Europe
![](https://cdn.hka.com/wp-content/uploads/2022/09/pexels-julia-volk-5201944-280x210.jpeg)
Highway Rock Cuttings
Middle East
![](https://cdn.hka.com/wp-content/uploads/2019/07/pexels-johannes-plenio-4460676-280x210.jpeg)
Spent Nuclear Fuel Verdicts & Settlements
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/01/shutterstock_739242352-280x210.jpeg)
Independent Quantum Expert Review of Maintenance Contract
Europe
![](https://cdn.hka.com/wp-content/uploads/2021/01/AdobeStock_261723143_Melbourne_web-e1707447623872-280x210.jpg)
Melbourne Airport Rail
Oceania
![](https://cdn.hka.com/wp-content/uploads/2022/01/FACD-280x210.jpg)
Energy and Telecom Cable Manufacturer
Americas & Asia
![](https://cdn.hka.com/wp-content/uploads/2022/11/shutterstock_191351435-280x210.jpg)
Coal-fired power plant
Asia
![](https://cdn.hka.com/wp-content/uploads/2019/07/shutterstock_609628034-280x210.jpg)
Longview Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/01/shutterstock_64845340-1-280x210.jpg)
Major Light Rail Transit
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/07/shutterstock_1315203980-3-280x210.jpg)
Liquefied Natural Gas (LNG) Project Australia
Oceania
![](https://cdn.hka.com/wp-content/uploads/2022/06/subhaan-saleem-so4Syln9Pvk-unsplash-280x210.jpg)
Franchise Fraudulent Transfer Matter
Americas
![](https://cdn.hka.com/wp-content/uploads/2022/11/shutterstock_576018130-280x210.jpg)
Coal-fired power plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2019/07/pexels-pixabay-263402-280x210.jpeg)
University of North Carolina Hospitals
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/02/shutterstock_701032348-1-280x210.jpg)
Two New Venues
Middle East
![](https://cdn.hka.com/wp-content/uploads/2021/08/WhatsApp-Image-2021-08-08-at-10.38.13-AM-280x210.jpeg)
Residential Development
Middle East
![](https://cdn.hka.com/wp-content/uploads/2022/07/shutterstock_526595785-280x210.jpeg)
Clean Fuels Project
Middle East
![](https://cdn.hka.com/wp-content/uploads/2022/11/shutterstock_2012903819-280x210.jpg)
Water desalination plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2019/07/shutterstock_1931109776-280x210.jpg)
Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/02/pexels-thirdman-5327915-280x210.jpeg)
A Major Teaching & Research Hospital
Europe
![](https://cdn.hka.com/wp-content/uploads/2021/08/shutterstock_671935024-scaled-1-280x210.jpg)
Natural Gas-Fired Power Plant
Asia
![](https://cdn.hka.com/wp-content/uploads/2022/07/shutterstock_1700360854-280x210.jpg)
Nuclear Power Plant Decommissioning
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/06/shutterstock_539854030-280x210.jpeg)
Offshore refinery contractor performance review
Asia
![](https://cdn.hka.com/wp-content/uploads/2019/06/zbynek-burival-517983-unsplash-280x210.jpg)
South American Oil Refinery
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/04/shutterstock_1898870809.jpg)
Nuclear Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/06/shutterstock_93575686-280x210.jpeg)
Industrial Manufacturing Facility
Europe
![](https://cdn.hka.com/wp-content/uploads/2022/06/Generic-Industrial-Manufacturing-33-280x210.jpg)
Global chemicals manufacturer
Americas & Europe
![](https://cdn.hka.com/wp-content/uploads/2023/11/Rozelle-interchange-280x210.jpg)
WestConnex Rozelle Interchange
Oceania
![Sydney Water Lower South Creek Treatment Program Australia Tap](https://cdn.hka.com/wp-content/uploads/2019/01/bathroom-black-and-white-blur-615326-280x210.jpg)
Lower South Creek Treatment Program
Oceania
![](https://cdn.hka.com/wp-content/uploads/2019/01/pexels-trinity-kubassek-230620-280x210.jpg)
Share our Space Program
Oceania
![Pioneering Spirit Allseas Oil and Gas Offshore](https://cdn.hka.com/wp-content/uploads/2019/01/allseas-pioneering-spirit-280x210.jpg)
Allseas & Pioneering Spirit
Europe
![Hume Housing | Infrastructure | Expertise | HKA](https://cdn.hka.com/wp-content/uploads/2018/11/Hume-Housing-280x210.png)
Hume Community Housing
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/09/joey-kyber-Pihl8kTtX-s-unsplash-280x210.jpeg)
Infrastructure Investment Assurance Framework
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/09/bigstock-Two-electricians-securing-powe-26134499-280x210.jpg)
Electricity Network Improvement
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/06/shutterstock_535814989-280x210.jpg)
High Speed 2 (HS2) Project
Europe
![Sydney Major Transport | Infrastructure | Expertise | HKA](https://cdn.hka.com/wp-content/uploads/2018/10/Sydney-Major-Projects-e1554899277213-280x210.jpeg)
Major Transport Projects Review
Oceania
![City metro Australia Newcastle Project Advisory](https://cdn.hka.com/wp-content/uploads/2018/08/Newcastle_City-Metro-Rail-motion-blur-280x210.jpg)
Urban Transformation & Transport Programme
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/08/EssentialEnergy-280x210.jpg)
Strategic Procurement & Programme Management Improvement
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/08/Endeavour-Energy_Power-lines-at-sunset-280x210.jpg)
Business Reform & Procurement Strategy
Australia
![](https://cdn.hka.com/wp-content/uploads/2017/03/AdobeStock_378243029-280x210.jpeg)
Sydney Metro
Oceania
![Ultimo Pop Up School Australia Sydney](https://cdn.hka.com/wp-content/uploads/2018/07/Ultimo-Pop-Up-School-Australia-280x210.jpg)
Temporary School at Ultimo Primary School
Oceania
![](https://cdn.hka.com/wp-content/uploads/2020/11/Construction-image-scaled-e1635262262716-280x210.jpg)
Gerald Desmond Bridge
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/03/shutterstock_1140608543-280x210.jpg)
Office and Retail Landmark
Americas
![](https://cdn.hka.com/wp-content/uploads/2017/10/shutterstock_2101749-1-280x210.jpg)
Port of Long Beach
Americas
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_577717501-280x210.jpeg)
Airport Pavement Management Survey
Americas
![](https://cdn.hka.com/wp-content/uploads/2017/03/pexels-marina-hinic-730778-280x210.jpeg)
Greenfield St George Airport, Utah
Americas
![Kashagan Oilfield Kazakhstan](https://cdn.hka.com/wp-content/uploads/2018/04/Kashagan-280x210.jpg)
A Giant Oilfield
Asia
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_691234552-280x210.jpeg)
Hunter River Remediation
New South Wales, Australia
![](https://cdn.hka.com/wp-content/uploads/2017/03/pexels-pixabay-56832-280x210.jpeg)
Great Western Highway Widening
Victoria, Australia
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_1947842533-280x210.jpeg)
Rail Rehabilitation Scheme
Bucharest to Brasov line, Romania
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_324754607-280x210.jpeg)
Yanbu Power & Desalination Plant
Yanbu Industrial City, Saudi Arabia
Follow HKA on WeChat
关注我们的官方微信公众号
![HKA WeChat](https://cdn.hka.com/wp-content/themes/hka2/assets/img/hka-wechat-qr-code.jpg)