Rothschild Financial Consulting (RFC)


Founded in 1985, Rothschild Financial Consulting has provided rate of return (cost of equity, cost of debt, capital structure) witness testimony behalf of consumer advocate groups and state utility commission staff in over 400 utility cases (cases from past 15-years) in twenty-five states over the past 30 years.  RFC has recently provided analytical support for Return on Equity (ROE) cases before the Federal Energy Regulatory Commission (FERC) cases as well.

Recent high-profile cases include the joint 2020 Cost of Capital rate setting proceedings for the three largest California Electric Utilities and the joint 2018 Cost of Capital rate setting proceedings for the three largest California Water Utilities, among many others.  RFC is currently the lead consultant for the California Office of Public Advocates for analyses related to the highly complex Pacific Gas and Electric (PG&E) bankruptcy, including measuring the consequences of wildfire cost recovery decisions on their financial strength.

Wide Range of Capabilities

Rothschild Financial Consulting has ample experience using established methodologies of calculating cost of equity such as the Discounted Cash Flow (DCF), Capital Asset Pricing Model (CAPM) and Risk Premium Model (RPM).  Our cost of equity recommendations have assisted state utility commissions across the country to determine the appropriate return on equity (ROE), and overall rate of return, to set rates for regulated utility companies (electric, water and gas).

RFC can also provide numerous other types of financial analyses, including financial policy analysis, innovation policy analysis, detailed financial modeling, valuation, stress-testing, and optimal capital structure analysis.

Over the past few years, RFC has become a leading authority on using stock options to interpret investors’ expectations for individual companies or the market as a whole.  Using proprietary technology to process large numbers of option trading data, RFC is able to calculate (LINK) investor-based forward-looking volatilities, betas, and (soon) growth expectations for individual companies or entire proxy groups.  RFC has used these forward-looking betas as an integral part of the CAPM methodology in several cost of capital cases, including the two high-profile California cases mentioned above, and they have been very well-received.

Complete Team

Rothschild Financial Consulting has a team of experts in financial analysis, automated data processing, and testimony writing that can complete all requirements for cost of capital cases completely in-house.

Through established partnerships, RFC can also provide additional expert witnesses services related to utility regulation, including bankruptcy legal monitoring, revenue requirement, depreciation studies, rate design and prudence reviews.

Rothschild Financial is an independent consulting firm that specializes in the energy sector. We provide expert testimony, design industry-specific documents, and conduct research on public policy and innovation. We are based in Ridgefield, CT.

Rothschild Financial has testified in over 400 cases in the following states and territories:

Alabama | Arizona | California | Connecticut | Colorado | Delaware | FERC | Florida | Georgia | Illinois | Kentucky | Maryland | Maine | Massachusetts | Minnesota | New Jersey | New York | Nova Scotia | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | Vermont | Washington, DC | Washington


Aaron L. Rothschild

Aaron Rothschild has extensive experience in the financial analysis of regulated utilities, including electric, gas, water, and telecommunications. He has provided expert witness testimony on cost of capital and rate of return throughout the United States, and has assisted attorneys on all phases of rate case proceedings. Currently he’s involved in research into transmission rates and other financial incentive mechanisms in the energy and utility sectors.

Prior to joining Rothschild Financial, he managed the financial business plan evaluation process of telecommunications and undersea cable projects in North America and Asia Pacific for MCI and 360 Networks. He has held management positions in Hong Kong and Chicago, including serving as head of business development position for MCI in Tokyo.

He received an MBA in finance from Vanderbilt University and a BA in mathematics from Clark University.

James A. Rothschild

James Rothschild is a nationally recognized expert in the energy industry. He has provided expert witness testimony on rate of return, accounting, and financial issues relating to electric, telephone, gas, water, health care and insurance rate setting. He has evaluated the profitability of expansion and new venture proposals and provided financial support material for contract negotiations.

He received an MBA in banking and finance from Case Western Reserve University and a BS in chemical engineering from the University of Pittsburgh.

Edgar Bandera 
Senior Consultant 

Edgar Bandera is a successful entrepreneur with broad and demonstrated skills, including strategic vision, leadership, financial and operations management, product and process design, implementation, and enterprise-level sales.  He is an active independent investor and the principal of Flagship Endeavors, a business and financial consulting firm.

Edgar was a co-founder of DealMaven, Inc., a financial software firm serving many of Wall Street’s investment banks.  He served as DealMaven’s Chief Operating Officer and Chief Financial Officer for many years before selling the company to FactSet Research Systems, a global public company serving a similar client base.  Edgar subsequently served as Vice President and Market Strategist for FactSet’s Corporate Finance product line.  Other relevant business experience includes owning and managing a home painting franchise, being a junior partner in a $100 million private equity fund, and working as a Financial Analyst at Deutsche Bank’s Latin American Mergers and Acquisitions team.

Edgar graduated Magna Cum Laude from Harvard University, where he earned a double degree in Chemistry and Physics.  He has also studied in France, Spain, and Italy.



Aaron Rothschild

Phone: (203) 241-7824

Office Addresses

15 Lake Road
Ridgefield, CT 06877

2411 Rim Road
Duarte, CA 91008-1242