First Principles Economics, LLC was founded in 2009 by Dr. Ron McNamara. A former academic economist at the University of Auckland (New Zealand), Ron was responsible for co-designing, and then implementing, operating and monitoring the New Zealand wholesale electricity market, which was the first nodal-based (locational marginal pricing) competitive wholesale electricity market in the world. The New Zealand market design is the foundation for all the electricity markets in the United States as well as the markets in Alberta, Central America, Singapore and the Philippines.

Subsequently, as the Vice President of Market Management and Chief Economist with the Midwest (now Midcontinent) ISO market (the largest geographic electricity market in the world), Ron was responsible for all aspects of the market – including operating the US$100 million per day Day Ahead Market, establishing the locational marginal prices in the Day Ahead and Real Time markets, operating the US$600 million Financial Transmission Rights market, clearing and settlement of more than US$30 billion in annual market transactions as well as the purchase of more than US$400 million in transmission service.

First Principles Economics is a boutique strategy and economic research firm with expertise and direct experience in the design, operation, monitoring and regulation of markets. Our name reflects our approach. We begin our analysis with, and build upon, sound first principles based on theory, pragmatism and existing conditions in order to deliver individually tailored and logically consistent solutions designed specifically to assist our clients in achieving their goals and objectives. The core values of the company are: integrity, intellectual rigor and honesty, accuracy, dependability, discretion, creativity and independence. To that end, our services include: independent expert testimony and support (including support for lawsuits, contract disputes, and regulatory proceedings), strategic and tactical advice, data analytics (including statistics, econometrics, time series and spectral analysis), market design, mechanism design, tariff design, and design of regulatory structures.

Core Competencies:

• Economic Analysis – Theoretical, Legal, Transaction Cost, Statistical Analysis (Econometrics, Time Series).
• Regulatory Economics – Regulatory Strategy, Project Management of Regulatory Proceedings, Regulatory/Market Compliance and Training.
• Expert Witness Testimony.
• Energy Markets – Design, Implementation, Operation, Monitoring and Regulation.
• Electricity Trading – Physical, Wheeling, Financial and Congestion.
• Contract Development – Physical and Financial.
• Risk Management – Hedging Strategies.
• Electricity Generation – Thermal, Hydro, Nuclear, Renewable and Intermittent.
• Electricity Transmission.

He served as a state regulator for Queensland, Australia with responsibilities over the electricity, natural gas, and ports sectors. In addition to his work in the United States, New Zealand and Australia, he has been involved in projects in the Philippines, Ghana, Nigeria, East Africa, Pakistan, Georgia (the country) and Central America and has advised government and industry officials from China, Singapore, Malaysia, Indonesia, Viet Nam, Thailand, Lao PDR, Cambodia, the Philippines, Guatemala, Honduras, El Salvador, Costa Rica, and South Africa on electricity market design, implementation, operation, regulation and monitoring. Ron has provided expert witness testimony to the Federal Regulatory Energy Commission as well as to a number of State legislative and regulatory proceedings on various aspects of the design, operation and regulation of electricity markets. Additionally he has testified in commercial disputes related to various contractual terms and obligations, including the effects of intermittent and renewable generation, in electricity markets. Internationally he has provided testimony in regulatory and legal proceedings in Australia and New Zealand. He holds a B.A. in Economics and a B.A. in Social Ecology (with an emphasis in Environmental Ecology) from the University of California, Irvine, a M.A. from the University of Rhode Island, and a M.A. and Ph.D. in Economics from the University of California, Davis. A former NCAA All American in tennis, he played a number of ATP events and has coached nationally ranked players and teams at the collegiate level. He holds dual citizenship with New Zealand and the United States of America. Ron is also affiliated with Synergies Economic Consulting in Australia. (All photos used on this website can be found here.)