Concentric provided analysis, expert testimony, and hearings support to a U.S. natural gas and electric utility during its multi-year cost of capital proceeding before the California Public Utilities Commission. Our role was to assess and quantify the unique risks faced by the utility, and, more broadly, the California utilities, resulting from the greater degree and prevalence of wildfires in the state in recent years.
We also assessed the risk that the company might be found liable for damages, regardless of fault, such as in cases where the doctrine of inverse condemnation applies, and the risk that the company may be unable to recover any such costs in rates from customers in California.
Both John Reed and Jim Coyne served as expert witnesses for the company, analyzing projected wildfire risks, risk mitigation programs, insurance options, legislative and regulatory programs to address wildfire cost recovery, and what a compensatory return would have to be if regulatory and legislative solutions were not implemented.
