Pace Global

Shipper Group Advocacy and Intervention Support in Pipeline Rate Case

Clien Need
Client Need:
A governmental agency required a defense against an independent power developer that was claiming damages to its development efforts stemming from a constitutional change that transferred concession contracts with a government guarantee to private law contracts.

Our Role
Our Role:
Pace Global worked closely with the legal team to evaluate the independent power development project in order to determine if the developer had fulfilled all of its obligations in terms of making the Concession Agreement between the Ministry and the developer effective. Pace Global provided expert opinion on project development, structuring, financing, and valuation, including (i) the accepted standards for risk allocation; (ii) the interpretation of government obligations in Concession Agreements; and (iii) conventions for determining when a project is “investable.” The Pace Global witness provided initial testimony and was cross-examined.

As a result of Pace Global’s work, the shipper group was able to lower its costs by millions of dollars per year due to the introduction of new pipeline services that were better tailored to meet its needs. The shipper group also reduced costs through different cost allocation, rate design, and penalty schemes.
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