Mr. Michael Tolleth specializes in the financial analysis of energy markets, with a dual emphasis on the cost of capital and regulatory economics in the oil and natural gas industries. His experience includes cost of service, rate design, market-based rates analysis, and damages calculation for oil and natural gas pipelines. He has assisted clients with issues related to competition and commercial damages in the downstream petroleum product marketing sector, and with financial analysis of upstream oil and gas production operations. Mr. Tolleth’s work involves financial modeling of energy assets for regulatory, valuation, and policy evaluation purposes, as well as application of asset pricing theory to energy derivatives markets. He also has extensive experience estimating the cost of capital for regulated companies in the utilities, pipeline, and railroad industries, as well as for valuation applications.
Mr. Tolleth has prior professional experience in the fields of STEM education and curriculum publishing that informs his ability to frame problems conceptually and explain complex analyses effectively to diverse audiences. He also completed a finance internship at Exelon Corporation, where he analyzed equity valuation methodologies for competitive integrated electric utility companies.
Mr. Tolleth earned an M.B.A. with High Honors from the University of Chicago Booth School of Business. His degree concentrations were in finance, economics, and statistics and econometrics. He also holds a B.S. magna cum laude in Chemical Physics from the University of California at San Diego.
In a proceeding before the National Energy Board (NEB), assisted in the development of testimony supporting TransCanada Pipeline Company’s discretionary pricing of short term and interruptible natural gas transportation services. The analysis demonstrated adequate competition from primary and market alternatives as well as a lack of statistical support for the claim that spikes gas prices during the “polar vortex” winder of 2013-14 were causally related to TransCanada’s pricing.
In an open access application before the Queensland Competition Authority (QCA), analyzed the statistical properties of equity beta estimates and evaluated relevant business risk comparability characteristics to determine the appropriate weighted average cost of capital (WACC) for a coal rail network.
In a proceeding before the Regulatory Commission of Alaska (RCA), assisted in developing a proposal for deferred recovery of capital costs associated with a newly built combined cycle natural gas power plant, whose addition to the electric utility’s rate base would otherwise result in a sudden and substantial rate increase.
In rulemaking and policy determination proceedings before the FERC, provided and supported testimony on behalf of refiners, marketers, and end-users of petroleum products on issue of regulatory policy for oil pipelines, including the methodology for calculating indexed rate increases, cost of service reporting requirements, and income tax ratemaking treatment for tax pass-through entities.
In support of testimony evaluating evidence of market power for crude oil and petroleum products pipelines, estimated the pipelines’ long run marginal cost (LRMC) as a proxy for the rates that would prevail in a competitive market.
Before the Federal Energy Regulatory Commission, sworn Affidavit on behalf of Airlines for America, the National Propane Gas Association, and Valero Marketing and Supply Company, Revisions to Indexing Policies and Page 700 of FERC Form No. 6, Docket No. RM17-1-000, January 2017.
Before the Federal Energy Regulatory Commission, sworn Affidavit on behalf of Airlines for America, the National Propane Gas Association, and Valero Marketing and Supply Company, Petition for Rulemaking, Docket No. RM15-19-000, September 2015.
Analysis of Initial Comments Regarding Commission’s Income Tax Allowance Policy for Partnership Pipelines
Submitted on behalf of United Airlines Petitioners and Aligned Shippers, in FERC Docket No. PL17-1-000
Aurizon Network 2016 Access Undertaking: Aspects of the WACC
November 30, 2016
Prepared for Aurizon Network for submission to the Queensland Competition Authority
Natural Gas Pipeline FERC ROE
Presented at the Interstate Natural Gas Association of America (INGAA) Rate of Return Seminar
Understanding Crude Oil and Product Markets
Published by the American Petroleum Institute
Paying for Pipelines
September 9, 2013
Presented at Law Seminars International’s (LSI) Energy in the Northeast Conference
The University of Chicago Booth School of Business, MBA (with concentrations in Finance, Economics, and Econometrics and Statistics)
University of California, San Diego, B.S. in Chemical Physics