The Alliance Consulting Group professionals have all been actively involved in the utility industry for over twenty-five years, and we value our high reputation. We have provided consulting services for clients ranging from utilities to regulatory bodies at all levels of government. We have provided consulting assistance to virtually every type of utility including electric, gas, steam, cable, telecommunications, water and wastewater.

Our consulting encompasses a broad spectrum of services and includes:

• Rate consultation, planning and analysis
• Provision of expert testimony
• Operations and fixed asset consulting for utilities
• Preparation for adopting International Financial Reporting Standards (IFRS)
• Special studies

SCOPE OF UTILITIES AND REGULATORY CONSULTING SERVICES

Alliance Consulting Group maintains expertise in the following areas:

• Depreciation and valuation services
• Rate case consultation, investigation, provision of expert testimony, operations, and fixed asset consulting
• Litigation support

DEPRECIATION AND VALUATION SERVICES

Alliance Consulting Group has performed numerous engagements dealing with both depreciation and valuation studies for all types of utilities including public and private. These studies incorporate life analysis of aged and unaged data, net salvage analysis, and depreciation system recommendations for both regulated and non-regulated clients. We also offer property valuation services used in merger, acquisition, stranded cost, or other special studies. Our professionals have over seventy-five years of experience in depreciation and valuation combined, as well as many years working as a team. Our clients have included electric, gas distribution, gas transmission, mining, generation, telecommunicatins, cable, water, and wastewater utilities. Whether assessing the impact of deregulation or working with a regulated utility, we have analyzed property policies, fixed asset structure, and finally depreciation studies.

With the services of a registered professional engineer, a Ph.D. in depreciation theory and a former "Big Four" accountant, our depreciation professionals bring an unparalleled level of service with industry specific experience. Our team has:

• Managed the property accounting function of a Fortune 100 company with generation, transmission, electric, gas, and mining assets
• Conducted depreciation studies for more than twenty -five years for a wide range of assets
• Directed capitalization policy and property unit standards for one of the nation’s largest utilities
• Assured compliance to GAAP for fixed assets for a major utility
• Lead a company’s property accounting organization from regulation to non-rate regulated competition
• Led industry (EEI) taskforce to study depreciation policies for FAS 143
• Presented expert testimony on various topics regarding depreciation, valuation, rate base, and capital recovery in more than 28 cases
• Extensive experience with Deloitte & Touche LLP
• Trained utility personnel from across the nation on depreciation issues

POLICY RECOMMENDATIONS AND REVIEW OF PROPERTY ACCOUNTING PRACTICE
Whether you seek a review of accounting policies or seek direction to an unregulated environment, we can offer an unrivaled dimension over most consultants. We have been there and done it for other clients and can offer unparalleled service in your capital policy reviews.

DEPRECIATION STUDIES, VALUATIONS, AND LITIGATION SUPPORT
Preparation of depreciation studies or valuations are our specialty. Reasoned engineering judgment, discussions with your operations staff, and experience of many industries are integral to our studies. Whether a study requires litigation or not, we offer expert witness testimony for written and oral arguments. From depreciation system recommendations to analysis of changing trends, we support our studies thoroughly in arenas of all types.

SOFTWARE
We are the only consultants in the United States licensed to use Power Plan software. By thoroughly testing this software against various systems and sources, we are prepared to support the results in all proceedings. For companies which use Power Plan for their CPR, we can take a direct feed from your system. We can import data from other CPR systems for other clients. Alliance Consulting Group software offers vast flexibility to review many types of depreciation system decisions easily and at a reasonable cost.

TRAINING
The best clients are those who understand the impact on capital whether the issue is accounting policy or forces of nature. Alliance Consulting Group can offer training in depreciation, valuation, and capital recovery. Our professionals have taught in many forums: Depreciation Programs, Society of Depreciation Professionals (SDP) training sessions, and Edison Electric Institute/American Gas Association training sessions. Our consultants are industry leaders who have directed industry policy for complex issues such as FASB 143 implementation.

RATE CASE CONSULTATION AND PROVISION OF EXPERT TESTIMONY

Historically, rate case consultation and analysis has represented the most significant segment of our regulatory consulting practice. Alliance Consulting Group professionals have performed numerous rate case investigations before regulatory bodies on rate base and other related matters.

We provide expert testimony in the following areas:

• Depreciation and Valuation Services
• Rate Base  
• Other related matters

In addition to providing expert testimony, Alliance Consulting Group professionals have worked closely with legal counsel to develop cross-examination strategies, prepare cross-examination outlines, provide assistance during preparation of all hearing briefs, and orient and assist legal counsel.



LITIGATION SUPPORT

In addition to rate case and expert testimony experience, Alliance Consulting Group professionals have a strong history of providing litigation support. This work often includes hearings before various levels of a judicial branch. Our professionals have firmly established themselves as one of a small group of professional service firms that has a consistent record of producing quality litigation support results within the schedule and budgetary parameters. We are proud of our record and believe that our approach to project management has contributed significantly to this record. This approach is spelled out in our philosophy of litigation support project management, the major elements of which are described below. Each must be present to produce a successful engagement.

Organization and Project Planning - Engagements must be well organized; that is, the specific objectives must be defined and responsibility for work elements delegated to appropriate staff. It is critical that project tasks be scheduled in proper sequence to ensure that the workflow builds a cumulative body of knowledge, rather than clusters of interesting data and stand-alone conclusions. In essence, this means the project team must have, at all times, a relatively accurate perspective on the expected product results.

Supervision and Control - The most clearly defined objectives and well-designed work plans will not, in and of themselves, ensure that the project is completed satisfactorily. Management supervision and control must be continuously applied, striking the balance between too much control, which stifles creativity, and too little control, which could result in missed deadlines and nonproductive work. Alliance Consulting Group places significant emphasis on developing, within its organization, project managers who are able to direct engagements that achieve stated objectives.

Expertise - Staff assigned to a project must be fully capable of sound and professional technical analysis in the area of litigation support. Theory and practicality must be balanced to result in findings that are meaningful as well as useful.

Consolidation - All analyses and hypotheses must be continually assessed in a holistic context. The project team frequently meets to discuss progress, review preliminary findings and propose hypotheses, thus ensuring that eventual findings are as thorough as possible. We have performed numerous engagements involving utilities and regulatory authorities. Our public utility and regulatory engagements have encompassed a full range of management disciplines including accounting, finance, personnel management, systems, operations and general management. We have provided services in matters pertaining to virtually all types of utilities including electric, gas distribution, and gas transmission, telecommunications, cable, water, and wastewater companies.