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Energy | Services

Regulatory and public policy

Rate of return

A firm’s overall weighted cost of capital, along with its allowed return on equity and capital structure, are crucial components in establishing revenue requirements. Bates White has extensive experience estimating and providing expert testimony on the cost of capital. Using our detailed knowledge of business and financial risks, industry trends, and sophisticated empirical analysis, we have determined and testified as to the cost of capital for regulated electric, natural gas, oil, and telecommunications firms.

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Areas of expertise
Market design and competition
Regulatory policy and strategy
Asset valuation and investment strategy
Cost allocation and rate design
Revenue requirement
Prudence
Incentive regulation and passthrough mechanisms
Rate of return
Depreciation analysis
Econometric studies