Economic Analysis of the California Electricity Crisis
Analysis Group worked with Shell Energy North America in a dispute before the Federal Energy Regulatory Commission (FERC). Shell was accused of allegedly defrauding California with overpriced long-term power contracts negotiated during the energy crisis of 2000–2001. Our team, including Vice Presidents Megan Accordino, Carlo Gallimberti, and Charles Wu, and Managers Muath Ibaid, and Daniel Stuart, supported Principals Todd Schatzki and Paul Hibbard, Vice President Joseph Cavicchi, and affiliates Steven Puller and Kelly Hauert. The five experts testified to the competitiveness of the contract procurement process and presented reasonable benchmark prices against which the actual contract prices could be compared. The experts’ testimony was cited repeatedly by the administrative law judge in her initial decision dismissing or modifying the complainants’ proposed benchmarks.