Cost of Service
We specialize in the areas of economic, financial and technical analysis related to regulated industries with an emphasis on cost-of-service analysis. We provide a wide array of cost-of-service solutions to clients ranging from day-to-day technical and business assistance, to more complex solutions including expert witness services and economic cost modeling aimed at better understanding the internal cost structure of multi-product, network-based firms. Our experts have been continuously involved in analyzing various cost of service issues since the 1990s, including embedded, forward-looking, and financial forecasting cost models developed in various contexts, such as rate case, competitive pricing, mergers and acquisitions, commercial damages and taxation. We have also built client-specific cost models for numerous clients and various purposes. Those studies assist our clients in identifying and projecting costs specific to given services, allocating costs between regulated and non-regulated entities and meeting other requirements, such as tax-related studies, transfer pricing and commercial damages.
Valuation of Shared Use Facilities
QSI's analysts have also been called-upon to review regulatory requirements across state and federal jurisdictions to determine how best to estimate the value, required price ranges, operational and logistic costs associated with shared-use assets, such as utility poles, and other related assets. This work helps our clients to be better informed regarding actual costs, opportunity costs and likely outcomes stemming from litigation where negotiations as to joint-use facilities do not result in mutually agreeable prices terms and conditions. In addition, we assist our clients in allocating the cost of various common and shared-use facilities that support more than one service (for example, network components, barges or corporate accounting software systems) between services for purposes of rate setting.
Our consultants have successfully participated as expert witnesses in arbitration, state and federal court proceedings involving damages related to breach of contract, patent infringement and various other technical issues. We have successfully supported the factual, policy and mathematical underpinning of damages calculations on behalf of our clients including claims of lost profits, quantum meruit, and unjust enrichment. Likewise, we have successfully challenged alleged damages of opposing parties, meaning that our critiques have led to significantly reduced damages in cases where damages have been awarded against our clients. None of our consultants have been precluded from addressing damages at trial as a result of a motion in limine or a Daubert challenge.