A municipality asked us to evaluate competing proposals for the supply of electricity to its utility. Our analysis covered the difference in cost as proposed, potential differences under different market conditions and other variables that could affect the final cost of power.
In a market that was restructured, the clients asked us to provide input on the development of the vesting contracts to cover the soon-to-be deregulated generating plants owned by the utilities. After the development process was finished, we were retained by a coalition of all the consumer groups to submit evidence and recommended changes to the proposed vesting contracts.
A major industrial user retained us to advise them on bidding for slices of the vesting contracts, which were being auctioned in multi-year strips. Our analysis included forecast costs under high, medium and low power cost conditions. In the end, the client did not purchase any of the strips and was able to purchase spot market power at much lower costs.