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The power authority faced the risk of aging infrastructure related to its most critical generation and transmission assets, but lacked the analytical capability to inform the prioritization of funding those high-risk concerns. Capital planning had not adequately accounted for such acute risk mitigation needs, as historical allocations remained largely unchanged for decades (and multiple political administrations).
The onset of significant (but non-catastrophic) asset failures was a catalyst of the need for more rigorous risk analysis.
We developed a robust analysis framework that combined both failure risk analysis with the associated losses of generation and transmission revenues, including cost impacts of transmission congestion and replacement generation. The modeling, which was developed in close collaboration with asset operations, enabled the authority to develop a financial plan for funding large-scale restoration investments as well as calibrate strategic sinking funds for major risk mitigation needs in the future.
Energy Asset Development and Operational Risk
Regulated Utilities and Public Power Authorities
Public Power Authority
