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Multi-jurisdictional utility-owned power generation fleet

Situation

The company’s $2B annual generation budgeting process was paralyzed, as plant managers and regional leaders jockeyed for capital on the basis of an ineffective, multi-attribute weighting formula used to prioritize projects.  While fleet performance continued to deteriorate, legacy allocations dominated, as leadership lacked an objective, consistent means of assessing the impact of funded and deferred projects.

Solution

We quantified the Equivalent Forced Outage (EFoR) risk profile of every generation plant in the fleet to enable leadership to understand the plant-level and aggregate portfolio performance risk of the generation fleet.  Enabled assessment of the impact of funding both ongoing and new projects on performance to make the investment-risk tradeoff transparent.  The ability to objectively target capex substantially reduced the budget cycle while measurably improving EFoR outcomes where most needed.

Services:

Energy Asset Development & Operational Risk

Market:

Regulated Utilities and Public Power Authorities

Client:

Multi-jurisdictional utility-owned power generation fleet

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