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June 19, 2013
Brattle Consultants to Present at Center for Research in Regulated Industries 26th Annual Western Conference

Several consultants from The Brattle Group will present at the upcoming Center for Research in Regulated Industries (CRRI) 26th Annual Western Conference, taking place June 19-21, 2013 in Monterey, California. The conference will focus on recent developments in network industries, especially energy. In particular, the conference will examine matters related to deregulation, market structure, policy and regulatory issues, environmental policy and GHG, telecommunications and water, pricing and demand response, and capacity and reliability.

Brattle principal Ahmad Faruqui, senior associate Sanem Sergici, and associate Neil Lessem will discuss rate response in a session titled “An Impact Evaluation of a Southern Utility’s Technology Enabled Smart Pricing Pilot.” In the session, the presenters will discuss their research with respect to a pilot pricing program by Southern Utility, which was designed to measure the impact of innovative new smart grid technologies, while maintaining more standard smart grid applications.

Additionally, Brattle principals Joe Wharton, Michael Vilbert, and Rich Goldberg, along with senior associate Toby Brown will present on “The Impact of Decoupling on the Cost of Capital: an Empirical Investigation.” Revenue decoupling is an important modern form of regulated ratemaking that helps facilitate energy efficiency programs run by regulated utilities in the natural gas, electric and water industries. But recently this “cure” has been alleged in certain regulatory proceedings to substantial lower the cost of capital, as much as a 3% reduction (300 basis points) in the allowed return on equity. This presentation will investigate whether any material inverse relationship between decoupling and the cost of capital can be measured by accepted techniques.

For more information on the conference, please visit the CRRI website.