Consultants

Michael Webb

Vice President

Dr. Webb has more than twenty-four years of energy industry experience.    Dr. Webb has extensive experience in all aspects of energy regulation at the Federal, State, and International levels.  His testimony, on behalf of investor class was favorably cited in decision of the Delaware Court of Chancery resulting in a judgement in favor of the class and damages in excess of $800 million. He has participated in numerous projects involving the calculation of cost-based rates. He has also prepared several applications for authority to charge market-based rates on interstate oil pipelines. He has prepared whitepapers and met with FTC Staff to gain approval for mergers on behalf of oil companies. Dr. Webb holds a PhD in economics from George Mason University in Fairfax, Virginia and has published in the journals Public Choice and Natural Gas & Electricity. His academic interests include applied microeconomics, industrial organization, and auction theory. He has taught courses in Law and Economics, the Economics of Regulation, and the Economics of Energy at the graduate and undergraduate level for over ten years.

Relevant Experience

Testimony Experience

  • Testimony relied upon by State and Federal Regulatory Agencies throughout North America.
  • Formally qualified as an expert in FERC principles and natural gas ratemaking by the Delaware Court of Chancery and favorably cited in resulting decision.
  • Filed numerous expert reports and pre-filed testimony before state and Federal regulatory agencies, Canadian regulatory agencies, arbitration panels, and courts.
  • Subject to cross examination before various agencies, arbitration panels and courts numerous times.
  • Assisted counsel in preparing cross examination regarding cost-based ratemaking and regulatory theory.

Rate Regulation Issues

  • Filed multiple pieces of testimony before FERC and state regulatory agencies cost of service calculations on behalf of large energy companies.
  • Filed multiple pieces of testimony before FERC and state regulatory agencies explaining the theoretical basis to include an Income Tax Allowance in the rates of tax pass through entities.
  • Filed multiple pieces of testimony before the FERC explaining the theoretical basis to exclude Accumulated Deferred Income Tax ("ADIT") from the rate base of pass through entities who are denied an Income Tax Allowance.
  • Led project teams in developing data and preparing cost-of-service calculation in cost-based rate cases. Assisted multiple witnesses in drafting testimony regarding FERC requirements for cost-based ratemaking.
  • Prepared cost-of-service filings, consistent with FERC regulations in 18 CFR § 346.2 on behalf of numerous oil pipelines.

Contract and Investor Disputes

  • Provided expert testimony on behalf of an investor class beforet the Court of Chancery of the State of Delaware that was favorably cited by the Court in finding liability and damages to the investor class in excess of $800 million.
  • Developed complex economic models to demonstrate that a lease between a joint venture operator and affiliate had been conducted at arms-length and did not represent self-dealing, resulting in a favorable settlement for the client.
  • Led a multi-witness project team opposing a claim of damages in a liquids terminal dispute, resulting in a finding of no damages for the client.

Damage Calculations

  • Provided damage calculations in a multimillion dollar action in a case before the American Arbitration Association.
  • Calculated reparations under the Interstate Commerce Act for multiple entities.
  • Led an international project team developing damage calculations associated with an international energy project in a case before the International Court of Claims.

Market Analysis  

  • Developed a complex economic models to demonstrate the subsitutability of different grades of crude oil using both public and proprietary data.
  • Presented analysis of refined product markets in Pennsylvania to demonstrate that a pipeline reversal was in the public interest.
  • Developed econometric models to demonstrate how tolls on a private toll road were impacting traffic on the road and surrounding surface streets.
  • Presented testimony to multiple state Commissions explaining how rates should be regulated in the presence of competition.

Antitrust Matters

  • Prepared a whitepaper for the Federal Trade Commission analyzing the competitive impact of a pipeline acquisition in the Eastern Pennsylvania area.
  • Developed a computer-based model to analyze the competitive impact of an oil pipeline acquisition in the mid-continent region. Prepared a detailed whitepaper explaining the theory behind the analysis and the results of the analysis. Met with FTC Staff to discuss the results of this analysis.
  • Analyzed the competitive impact of a refinery acquisition in the northeastern United States. Prepared multiple whitepapers reporting results of the analysis. Met with FTC Staff to discuss the results of the analysis.

Market-Based Rate Filings 

  • Filed testimony and associated exhibits consisten with 18 CFR § 348 on behalf of Buckeye Linden Pipe Line Company LLC, Wood River Pipe Line, LLC, White Cliffs Pipeline, LLC, and MPLX Ozark Pipe Line, LLC at the FERC.
  • Assisted in the preparation of an application for market-based ratemaking authority and associated exhibits consistent with 18 CFR § 348 on behalf of Sunoco Pipeline, LP’s market-based rate filing.
  • Assisted in the preparation of expert testimony and exhibits filed in Shell Pipe Line Company LP in market-power case.
  • Participated in the development of applications for market-based ratemaking authority on behalf of Chase Pipeline Company, Inc. West Shore Pipeline Company, Inc, and Marathon-Ashland Pipe Line LLC.

Acquisition Due Diligence

  • Participated in a project team analyzing the regulatory risk that a private equity fund faced if it acquired a controlling interest in liquids.
  • Participated in a project team analyzing the regulatory risk that a pipeline company considering a conversion in ownership structure from a corporation to a master limited partnership could face if its rates were contested by its shippers.

Education

  • George Mason University, Ph.D., Economics
  • American University,  BA Economics/International Studies (Magna Cum Laude)