We frequently appear as experts and consultants on projects related to the appropriate cost of capital for electric, natural gas, pipeline, railroad, water, and other regulated network industries. For the estimation of the cost of equity, we rely on traditional measures such as the Capital Asset Pricing Model and the Discounted Cash Flow model, as well as innovative methods designated to estimate the cost of capital at a line-of-business level for companies considering vertical disintegration, for firms entering foreign markets, and for companies facing radical changes to their cost structure. We carefully evaluate traditional techniques to ensure that the results properly reflect current changing macroeconomic risks.

Our results reflect an evaluation of the business, financial, or other risks facing the client and, if applicable, considers the regulatory regime in the jurisdiction where our analysis will be used. We frequently provide expert testimony before regulatory bodies in North America, Australia and Europe; and before courts and arbitration panels regarding appropriate cost of capital, allowed rate of return, discount rate, and capital structure.