Market Design, Rates & Regulation
Over the last 30 years, energy markets in throughout the world have undergone significant transformations in deregulation, resulting in competitive wholesale energy markets, which seek to improve the economic signals between generators and consumers and allocate resources efficiently. FTI Consulting experts have been instrumental in designing, analyzing and integrating these energy markets around the world, including energy-only markets, capacity markets and ancillary and other service markets. Our clients, ranging from market participants to system operators and regulators, seek FTI Consulting's unique expertise as they navigate design challenges for the evolving market, which today include the integration of renewable generation, increasing reliability standards and enhanced flexibility.
In conjunction with the establishment the wholesale markets around the world, utility ratemaking and network regulation has also undergone a dramatic transformation into a model that applies the concepts of competition and incentives to drive innovation. FTI Consulting's expertise spans economics, finance, statistics and public policy, resulting in our unique approach to helping utilities make compelling arguments to regulators in an effort to be effectively compensated for the risk they bear. Our expert witnesses have testified and authored expert reports on topics ranging from cost of capital (ROE) and capital structure, to incentive design and management audits.
Our Industry Services
FTI Consulting’s experts routinely testify on behalf of electric transmission & distribution utilities, natural gas pipelines, independent energy providers, FERC and state jurisdictions and other stakeholders. Our expertise spans rates and tariffs (cost-of-service and incentives), cost of capital analyses (ROE), rulemakings and management audits.
FTI Consulting professionals have a lengthy track record and recognized expertise in working with utilities, regulators and other stakeholders to better understand the impact of deregulated wholesale energy markets on the utility business.
Policy Development and Analysis
FTI Consulting experts were responsible for developing the Locational Marginal Pricing (LMP) system and associated financial transmission rights (FTRs) used in all organized power markets in the United States and globally. The same set of experts who have been instrumental in designing modern energy markets, also offer key expertise in analyzing the functioning of these markets, both on behalf of policy makers and market participants who seek new opportunities in the ever-changing energy policy landscape.
Strategic Rate Advisory
In addition to providing expert testimony, our cost-of-service and ratemaking experts help utilities strategize rate case approaches, understand ratemaking implications of regulatory and policy changes, prepare regulatory filings for a range of utility activities. We help utilities identify business initiatives, implement performance and emergency response improvements, build greater resilience into the systems and, if necessary, secure appropriate funding.