ENERGY
SPECIFIC ENGAGEMENTS
The
section below provides examples of relevant engagements performed by M&A and
our Consultants. As previously
indicated, we have extensive qualifications and experience in the utility
industry, particularly in market and financial analysis, risk assessment,
pricing, and the regulation of utilities.
M&As extensive experience
with utility companies includes the projects summarized below.
The following projects demonstrate our understanding and commitment to
provide excellent professional counsel to the BPA.
Bonneville Power Administration
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Assisted
the Bonneville Power Administration in administering its rate equalization program.
Identified regulatory and financial issues relating to public and private
utilities program participation. Analyzed
economic, legal, and political factors. Incorporated
customer and party concerns to resolve complex program issues.
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Provided
the economic and fiscal evaluation of the alternative proposal developed in the Regional
Review regarding BPAs structure and the regions electricity supply
exposure to Endangered Species Act. Developed
the financial forecasting and simulation model used for the analysis of
alternative proposals under the review and their effect on treasury repayment.
The model is capable of addressing issues such as alternative fish cost
expenditures, energy pricing options and river operations.
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Quantified
the potential stranded investment for BPA and every major West Coast investor
owned utility.
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Market
Analysis
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Rate Case
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Provided
the economic and financial assessment of the feasibility of BPAs portion of
the Third AC Transmission Line. The
analysis included the assessment of the Non-Federal participation (Northwest Utilities).
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Provided
the economic and financial assessment of the feasibility of the proposed inland
intertie.
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Valuation & Summary of issues relevant to the potential sale of BPA
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Analysis
of PGEs rate spread methodology & marginal cost study
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Assisted
the Transmission Business Line in developing revenue-forecasting system.
Specified business objectives and functional requirements for actual and
forecasted revenue by product, customer, and contract.
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Directed
the analysis and the negotiations of a long-term
capacity and energy exchange contract, including transmission access.
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Trojan
Decommissioning
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Developed
and taught courses focused on customer load profiling, customer class
definition, load research, demand forecasting, conservation program impacts and
rate design.
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Quantified
the benefits
of Federal Tax Subsidies to IOU's.
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Provided
a comprehensive analysis of BPAs
competitiveness in the current markets and its competitiveness in an
open market environment.
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Analyzed
West Coast investor own and generating publics regarding their competitiveness
in the emerging open market.
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Analysis
of Californias Restructuring
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Assisted
BPA in the development of its
Capital Budgeting process. The
engagement's requirements ranged from the assessment of alternative measurement
techniques to the development of the process for project.
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Merger Analysis: Analyzed
the operational and financial effects of Northwest utility mergers. Assessed competitive implications of the mergers on the West
Coast electricity market and BPA.
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PacifiCorp/Utah
Power
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Washington
Water Power/Sierra Pacific
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PGE/Enron
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Puget
Sound Power & Light/Washington Natural Gas
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Clark/Cogentrix: Performed
an analysis of the bids to supply electricity submitted to Clark County PUD.
Performed an extensive post-mortem review of the winning bid (Cogentrix)
relative to BPAs bid.
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Performed
an analysis of the bids to supply electricity submitted to Snohomish County PUD
in it attempt to bypass BPA.
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Provided
the economic and financial assessment of the feasibility of BPAs portion of
the Third
AC Transmission Line. The
analysis included the assessment of the Non-Federal participation (Northwest Utilities).
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Provided
the economic
and financial assessment of the feasibility of the proposed inland
intertie.
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Reviewed
and evaluated the Least Cost Plans of the major investor owned utilities in the
Pacific Northwest. The evaluation is being used in the determination of the
prudency of resource acquisition and the long-run cost and the financial effects
of the resource acquisition.
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Identified
and qualified environmental effects of alternative electricity generation or
demand-side options. Analyzed how Federal and State regulatory agencies are
requiring energy producers to internalize environmental effects.
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Developed
an Energy
System Strategic Planning and Optimizing Model. The model is a detailed
simulation model capable of simulating the monthly and seasonal operation of the
hydropower system and its interaction with the alternative generation and
conservation components. The model also addresses economic dispatch, capacity
expansion, financial and rates impact.
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Financial
Benchmarking
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Transmission Costs -- Calculation of estimated transmission Costs for selected IOUs and
public utilities
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California's
Competitive Market Marginal Cost
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Privatization
of BPA
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Developed
the data base management system and utility financial forecasting model (TUFFS)
utilized to forecast the financial condition for 108 public and 8 investor owned
utilities.
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Directed
the development of an Energy
System Strategic Planning and Optimizing Model. The model is a detailed simulation model capable of simulating the
monthly and seasonal operation of the hydropower system and its interaction with
the alternative generation and conservation components (in place and planned) of
the power system given alternative forecasts of demand. The models also address
economic dispatch, capacity expansion, financial and rate impact. The model
operates at both monthly and annual levels for a 20-year time horizon.
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Margin
Management
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Analyzed
the impact of the proposed open access and the resulting market competition on
BPAs financial position.
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Developed
the computer models utilized by the PUD in its Capital Budgeting process.
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Provided
the need for power analysis in the PUDs 1996 $300 million bond
refinancing.
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Developed
a West Coast Energy Pricing Model to be utilized in the marketing of the
PUDs surplus energy
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Assisted
in the development of budget preparation policies and procedures.
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Assisted
in developing a five-year financial plan and supporting a computer model.
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Assisted
in evaluating financing alternatives and development of a financing plan.
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Assisted
in the development of budget preparation policies and procedures. |
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Reviewed
Chelans rate proposal, which included proposed revenue requirements
(operating expenses, debt service coverage, etc. and rates.)
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| Developed
Option Pricing models (Hydro, Price, and Load Risk) |