Rothschild Financial Consulting provides expert testimonies for U.S. government offices and consumer advocate groups in support of utility rate regulation, including financial modeling and cross examination.

Since 1985, we have testified in more than 400 regulatory cases throughout the U.S. and Canada on cost of capital, rate of return, accounting, securitization and other financial issues. Our clients are utility commissioners, consumer advocacy groups, foundations and other organizations that require cost of capital expertise and testimony.

Our analyses assess financial markets and consider the entire rate-making process, determining the cost of capital that aligns investment return with risk.

Over the past few years, RFC has developed a novel way of using stock option pricing data to measure investor expectations in the capital markets. This approach results in market-based volatility, beta, and growth estimates for companies that can be used in conventional DCF and CAPM analyses. RFC’s comprehensive and unique cost of capital calculation methodology, including the use of stock option pricing, has withstood rigorous scrutiny and has been well-received by utility commissions.

"Amongst the three witnesses, Consumer Affairs Rothschild’s approach was unique in that he included the use of both historical and forward-looking, market-based data in his analysis. Based on the testimony and facts presented, the Commission therefore adopts the recommended ROE of 7.46% proposed by witness Rothschild. This ROE allows Blue Granite to raise the capital it needs to provide safe and reliable service to its customers."

The Public Service Commission of South Carolina
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