Cost of Capital Testimony

We provide expert witness testimony on measuring the cost of capital, which is the return a regulated utility must pay its investors to raise debt and equity financing on reasonable terms and fulfill their obligation to provide reliable electric, gas and water The cost of debt is the interest rate the company must pay their bondholders. The cost of equity is the expected return investors demand to purchase shares and cannot be published like an interest rate on a bond. Instead, the cost of equity, often referred as return on equity (ROE) in utility rate case proceedings, must be calculated by applying financial models to published data such as the stock price, dividend yield and expected growth. The Discounted Cash Flow (DCF) method is widely used and often given a primary role in determining the ROE to set rates for a regulated utility company and calculating rates for transmission service.

The accurate calculation of the Cost of Capital balances the interests of consumers and investors and promotes the efficient allocation of resources. While our testimony is an impartial evaluation our analyses take into account commission policy, precedents, and established rules. Overall, we strive to ensure decision makers are adequately informed so as to represent the goals of their constituents as optimally as possible.

Rothschild Financial has testified in over 400 cases in the following states and territories:

|Alabama | Arizona | California | Connecticut | Colorado | Delaware | FERC | Florida | Georgia | Illinois | Kentucky | Maryland | Maine | Massachusetts | Minnesota | New Jersey |North Dakota | New York | Nova Scotia | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | Vermont | Washington, DC | Washington|

 

Rothschild Financial has filed testimonies in the following dockets over the past 15-years:

CALIFORNIA

Southern California Edison, Application 19-04-014, Rate of Return, August 2019

Pacific Gas and Electric Company, Application 19-04-015, Rate of Return, August 2019

San Diego Gas & Electric Company, Application 19-04-017, Rate of Return, August 2019

Southern California Gas Company, Application 19-04-016, Rate of Return, August 2019

Great Oaks Water Company, Application A.18-05-001, Rate of Return, August 2018

Liberty Utilities, Application A.18-05-006, Rate of Return, August 2018

San Gabriel Water Company, Application A.18-05-005, Rate of Return, August 2018

Suburban Water Company, Application A.18-05-004, Rate of Return, August 2018

California American Water Company, Application A.17-04-003, Rate of Return, August 2017

California Water Service Company, Application A.17-04-006, Rate of Return, August 2017

Golden State Water Company, Application A.17-04-002, Rate of Return, August 2017

San Jose Water Company, Application A.17-04-001, Rate of Return, August 2017

COLORADO

Public Service Company of Colorado; Docket No. 11AL-947E, Rate of Return, March

2012

CONNECTICUT

United Water Connecticut; Docket No. 07-05-44, Rate of Return, November 2008

Valley Water Systems; Docket No. 06-10-07, Rate of Return, May 2007

DELAWARE

Tidewater Utilities, Inc.; PSC Docket No. 11-397, Rate of Return, April 2012

Delmarva Power & Light, PSC Docket No. 09-414, Rate of Return, February 2010

Delmarva Power & Light, PSC Docket No. 09-276T, Rate of Return, February 2010

FLORIDA

Florida Power & Light (FPL); Docket No. 070001-EI, October 2007

Florida Power Corp; Docket No. 060001 Fuel Clause, September 2007

NEW JERSEY

Aqua New Jersey, Inc.; BPU Docket No. WR11120859, Rate of Return, April 2012

MARYLAND

Potomac Electric Power Company; Case No. 9311, Rate of Return, 2013

Delmarva Power & Light; Case No. 9317, Rate of Return, June 2013

Columbia Gas of Maryland; Case No. 9316, Rate of Return, May 2013

Delmarva Power & Light; Case No. 9285, Rate of Return, March 2012

Potomac Electric Power Company; Case No. 9286, Rate of Return, March 2012

NORTH DAKOTA

Otter Tail Power Company; Case No. PU-17-398, Rate of Return, May 2018

Montana-Dakota Utilities Co; Case No. PU-15-90, Rate of Return, August 2015

Northern States Power; Case No. PU-400-04-578, Rate of Return, March 2005

PENNSYLVANIA

Twin Lakes Utilities, Inc., Docket No. R-2019-3010958, Rate of Return, October 2019

City of Lancaster Sewer Fund, Docket No. R-2019-3010955, Rate of Return, October 2019

Newtown Artesian Water Company, Docket No. R-20019-3006904, Rate of Return, May 2019

Community Utilities of Pennsylvania Inc. Water Division, Docket No. R-2019-3008947, Rate of Return, July 2019

Community Utilities of Pennsylvania Inc. Wastewater Division, Docket No. R-2019-3008948, Rate of Return, July 2019

Hidden Valley Utility Services, L.P. – Water; Docket No. R-2018-3001306, Rate of Return, September 2018

Hidden Valley Utility Services, L.P. – Wastewater Division; Docket No. R-2018-3001307, Rate of Return, September 2018

The York Water Company; Docket No. R-2018-3000019, Rate of Return, August 2018

SUEZ PA Pennsylvania, Inc.; Docket No. R-2018-000834, Rate of Return, July 2018

UGI Utilities, Inc. – Electric Division; Docket No. R-2017-2640058, Rate of Return, April 2018

Citizens’ Electric Company of Lewisburg, Pa; Docket No. R-2016-2531550, Rate of Return, December 2016

Wellsboro Electric Company; Docket No. R-2016-2531551, Rate of Return, December 2016

Columbia Gas of Pennsylvania, Inc.; Docket No. R-2016-2529660, Rate of Return, June 2016

Columbia Gas of Pennsylvania, Inc.; Docket No. R-2015-2468056, Rate of Return, June 2015

Pike County Light & Power Company; Docket No. R-2013-2397237(electric), Rate of Return, April 2014

Pike County Light & Power Company; Docket No. R-2013-2397353 (gas), Rate of Return, April 2014

Columbia Water Company; Docket No. R-2013-2360798, Rate of Return, August 2013

Peoples TWP LLC; Docket No. R-2013-2355886, Rate of Return, July 2013

City of Dubois – Bureau of Water; Docket No. R-2013-2350509, Rate of Return, July 2013

City of Lancaster – Sewer Fund, Docket No. R-2012-2310366, Rate of Return, December 2012

Citizens’ Electric Company of Lewisburg, Pa; Docket No. R-2010-2172662, Rate of Return, September 2010

Wellsboro Electric Company; Docket No. R-2010-2172665, Rate of Return, September 2010

York Water Company; Docket No. R-2010-2157140, Rate of Return, August 2010

T.W. Phillips Gas and Oil Company; Docket No. R-2010-2167797, Rate of Return, August 2010

Joint Application of The Peoples Natural Gas Company, Dominion Resources, Inc. and Peoples Hope Gas Company LLC, Docket No. A-2008-2063737, Financial Analysis, December 2008

York Water Company; Docket No. R-2008-2023067, Rate of Return, August 2008

SOUTH CAROLINA

Blue Granite Water Company, Docket No. 2019-290-WS, Rate of Return, January 2020

VERMONT

Central Vermont Public Service Corp., Docket No. 7321, Rate of Return, September 2007