Our service offerings include:
Retail Markets Services: This practice area focuses on providing relevant, experience-based services to energy companies involved in supplying electric and/or natural gas under retail access tariffs to large commercial and industrial customers, and residential and small commercial mass markets. Principal areas of emphasis include Market Analysis, Evaluation of ESCO Operations, Acquisition/Valuation Analysis, and Business Start-Up. More...
Advanced Analytical Services: Our Advanced Analytical Services practice area focuses on performing complex modeling and analyses for clients in several key area of the business, including Consumption and Load Analysis, Financial Risk Management Analysis, and Project Modeling and Analyses. More...
Training Services: We offer four rigorous courses to energy professionals, usually conducted at your place of business, including Basic Electricity, Basic Natural Gas, Risk Management, and Retail Product Development. More...
RETAIL MARKETS SERVICES
Electric and gas utility restructuring continues in many states; the most successful programs bring significant economic benefits to large commercial and industrial customers, and the mass markets. However, unlike other deregulated industries, unique state-by-state characteristics have led to inconsistent program designs and potential pitfalls for those enterprises seeking opportunities outside their familiar core territories. Our service professionals have hands-on expertise with most every state's restructuring process; their experience with the details of rates and tariffs combine with a thorough understanding of wholesale commodity pricing to bring value to our clients and save them time and money.
Our Retail Markets practice area focuses on providing relevant, experience-based services to energy companies involved in supplying electric and/or natural gas under retail access tariffs to large commercial and industrial customers, and residential and small commercial mass markets. Principal areas of emphasis include:
Market Analysis: This service focuses on regional, state and utility-specific details of direct access programs to determine if there is an opportunity to obtain a high value, low-risk return. Instead of high-level monitoring, we normally perform in-depth, multi-faceted projects, including analyses of laws, regulations, retail access tariffs, target customer rate schedules and options, the supplier service and billing agreements, energy scheduling, metering, load curves and profiling methodology, wholesale energy prices, suppliers and liquidity, and retail competitors.
Evaluation of ESCo Operations: Our personnel have successfully performed most front, middle and back office functions in an energy service company; and we can review any functional area or group within your organization and align it with the requirements of the retail markets in which the business competes. This service can get very detailed in designing software tools, retail products, hedging techniques and job responsibilities.
Acquisition/Valuation Analysis: We provide our expertise in evaluating potential acquisitions of energy service providers and books of business, including negotiations, appraisals and due diligence.
Business Start-Up: We have occasionally been asked to develop an entire business model for a particular market or channel, and then staff and execute the plan. Our personnel each have experience with several start-up businesses, including several successful firms currently operating in retail natural gas and electricity markets in the United States.
Some client engagements include:
- Analyzed electric open access programs in several states for margin opportunity for a utility-affiliated energy service company; we recommended participating in a couple of programs and advised against participating in several other programs. We have performed this service in both natural gas and electricity many times for many of our clients.
- Prepared a comprehensive analysis of retail natural gas competition in a market territory in advance of our client, a large electric utility, entering the market.
- Reorganized and reprioritized the derivatives trading function of an affiliate of a combination utility.
- Performed a valuation and due diligence of a retail energy book of business for an independent energy service firm.
- Developed a business model for a start-up retail electric energy service provider for a combination utility, and then staffed and executed the plan.
- Designed an entire rate book and submitted testimony and analyses to the state utility commission for a new natural gas utility being developed by a large electric utility.
ADVANCED ANALYTICAL SERVICES
Today more than ever, energy executives need assurance that the details are correct. Whether committing to an expansion to a new retail territory, issuing complex information on your commodity position and mark-to-market value, or committing to a portfolio of power products to meet your customers' load requirements, the executive must be comfortable that the data used is accurate and the quantitative methods are appropriate. Our Advanced Analytical Services practice area focuses on performing complex modeling and analyses for clients in several key area of the business, including:
Consumption and Load Analysis: This service area focuses on analyzing and aggregating customer consumption data for making supply management and operational decisions. These projects typically have a dual focus; first, manipulating and analyzing load data, load duration curves, proxy curves and other usage data for decision support; and second, developing and implementing the analytical tools used to maintain the processes after the project is done. We are constantly refining many different types of analytical tools for evaluating aggregated load data, proxy curves, potential savings under retail access rates and individual customer interval load information.
Financial Risk Management Analysis: Our personnel have significant experience with energy commodity risk exposures and the data and reporting requirements associated with financial risk management activities, including natural gas and electricity commodity positions, mark-to-market analyses and policy compliance. Again, our service focus has been on collecting, analyzing and reporting, and on developing and implementing analytical tools so the job can be systematically be done after the project has concluded.
Project Modeling and Analyses: We frequently provide our expertise in developing custom economic models geared toward a complex aspect of the energy business.
Some representative engagements include:
- Developed several tools for analyzing customer interval data and measuring potential savings under retail open access for an independent energy service provider. We have performed this service in both natural gas and electricity many times for many of our clients.
- Analyzed the load requirements of an independent electric service provider and recommended a wholesale purchase strategy.
- Developed commodity position reports and mark-to-market analyses tools for an independent energy service provider.
- Developed an economic model and utility commission testimony for cost justification of a new natural gas utility being developed by a large electric utility.
We offer four courses for energy companies:
Basic Electricity: This course covers the basics of the retail electric business, including load evaluation and analysis, enrollments, wholesale supply procurement, scheduling, meter data acquisition, imbalances, reporting, restructuring, and state regulation. Key concepts are introduced and reinforced throughout the course; including tagging, demand metering, cycles, interval data, line losses and retail access tariffs. Frequent use of key metrics help participants get familiar with their use. It is a one-day course, but extends to two days when modified for a particular state and/or utility program.
Basic Natural Gas: This course covers the basics of the retail natural gas business, including marketing, enrollments, wholesale supply procurement, nominations, imbalances, reporting, deregulation, and state regulation. It is a one-day course, but extends to two days when modified for a particular state and/or utility program.
Risk Management: This one-day course covers the topic of risk management from the perspective of the commercial operations, and deals mostly with maximizing a company's investment in this vital function while fully complying with risk policies and reporting standards. It covers the basic methods used to hedge energy price exposures, with extensive use of expiration charts and graphs.
Retail Product Development: This is a two-day advanced course for front and middle office personnel looking to develop new retail commodity products within corporate guidelines and risk policies. Using our proprietary methodology, participants walk through the process of defining new retail products, product positioning, establishing, managing and closing hedges, performing a risk assessment and identifying key metrics and product support requirements.