We utilize our extensive knowledge of worldwide energy and infrastructure markets to provide expert testimony services in a wide range of energy, infrastructure, and network economics- related litigation matters. London Economics International LLC offers attorneys a unique combination of real-world experience and academic knowledge. We have worked around the globe in environments as diverse as Thailand, California, Alberta, and Argentina. Thus, we are frequently able to apply firsthand local knowledge in contract disputes and other litigation matters. We provide expert assistance to attorneys on economic and financial matters involving:
- Commodity futures;
- Contract disputes;
- Corporate finance and valuation;
- Electricity markets, including price forecasts and design flaws;
- Mergers and acquisitions;
LEI also works with clients to develop specific services to meet their needs. These include building and /or deconstructing financial models, forecasting and backcasting, analyzing and preparing deposition documents, scenario analysis, and market research in addition to testimonies before courts and regulatory agencies.
Our expert testimony experience includes extensive review, response, and writing of submissions to state regulatory commissions, the Federal Energy Regulatory Commission (FERC), and Canadian and other international bodies. This includes drafting Section 203 filings, testifying regarding the relative value of selected transmission investments, tariff design issues, defense of market-based rates, and assessment of whether prices reflect competitive conditions, among other topics.
Featured work – PPA dispute in Asia London Economics International LLC was contracted by a major international law firm to serve as an expert on the power industry in Asia. The arbitration matter revolved around a major international energy company’s purchase of a set of independent power projects. Subsequent to the close of the transaction, amendments to certain power purchase agreements (PPAs) were discovered which the acquiring company deemed to have resulted in material damages to the company.
LEI was asked to assess the damage claim made by the acquiring company. In developing a case strategy, LEI met with the client’s attorneys to consider and develop arguments to be used in the arbitration proceeding. Below is a list of the some of the tasks completed by our firm in the matter:
- Created a financial model to value damages arising from the undisclosed contract amendments;
- Valued potential losses arising from alleged loss of franchise rights;
- Conducted an analysis of load trends in Asia;
- Examined key trends in the industries of selected PPA counterparties;
- Analyzed the potential impact of the introduction of a competitive power pool on potential damage claims;
- Reviewed due diligence documents and developed arguments in support of claims.
- Provided statistical analysis to demonstrate that a Material Adverse Change had occurred
- Showed that alternative indices to an index no longer available did not exist, underpinning an argument for contract frustration
- Utilized knowledge of European power markets to provide foundation for arguments regarding economic substance of transactions challenged by tax authorities
- Reviewed documentation and estimated value of services associated with procurement of renewable energy offtake agreements
- Created detailed price impact model to prove that a proposed transaction would result in an increase in market power
- Testified regarding cost of capital issues and appropriate discount rates to be used when valuing an independent power company