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Regulatory and public policy
Incentive regulation and passthrough mechanisms
As many regulators adopt hybrid market designs that incorporate fully regulated and incentive-based components, evaluating and designing appropriate incentive regulation mechanisms is crucial.
Bates White has evaluated all forms of incentive regulation mechanisms and analyzed how those mechanisms affect other basic cost components, such as cost of capital.
Our professionals develop sophisticated and detailed empirical analysis to evaluate the risk-reward tradeoffs faced by our clients, providing them with the tools they need to assess their financial risk and the expert testimony to back it up.
Our professionals have also used complex techniques to determine the parameters that are adopted in the price adjustment formulas.
These techniques include total factor productivity (TFP), data envelope analysis (DEA), stochastic frontier analysis (SFA), profiling, cost-benefit for quality of service, and others.
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