Register Today for Courses in Cost of Service and Rate Design for Natural Gas Interstate Pipeline Companies (January 26th-27th)
Brown, Williams, Moorhead & Quinn, Inc.

A significant portion of any cost of capital study is devoted to the determination of, and justification for, the proxy group. The proxy group is a list of public companies that closely resemble the subject/filing company. This group is used for purposes ranging from the determination of the return on equity to other issues where a view of the market conditions is needed (cost of debt, capital structure, etc.). The application of the guidelines, as set forth by the FERC, involves a thorough review of potential candidates based on their financial statements and consideration of the rapidly changing marketplace (through merger and acquisition activity, volatile equity markets, and pipeline purchase/ sales/construction). Brown Williams has both an in-depth understanding of the guidelines and requirements for building a representative proxy group, and the hands-on experience defending these studies throughout the litigation process.