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, and other financial issues. Our clients are utility commissioners, consumer advocacy groups, 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.

Our research focuses on strategies that drive innovative solutions to society’s energy needs.

We understand the challenges of stimulating innovation in the energy sector. Well-intentioned policy makers want to spur production but often have conflicting goals. Legislators may prioritize job growth, while utility commissioners have a mandate to lower energy costs. At Rothschild Financial, we strive to find common ground.

We design financial mechanisms and procurement processes that attract investment, promote job growth, and deliver lower-cost energy. Because in the end, it is not just about what we pay for energy, it is also about promoting the economy, spurring innovation, and providing long-term energy security.

"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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