“Our expertise ensures consumers benefit from cost-efficient and relaible electricity system with minimal implact on the environment and the regulatory system.”
Wholesale & Retail Electric Market Development
EAI advises many clients on a wide range of electric industry regulation and market restructuring issues. Our approach ensures that consumers are provided with low-cost, safe, reliable electricity services with minimal impact on the environment. We assess changes to the structure of the electricity market as well as innovative regulatory policies. Our professional consulting services cover the following areas:
i) Electricity Market Analysis & Modeling
EAI combines the application of computer models and real-time metering based research to simulate the operation of electric power markets. Our analysis involves chronological, multi-area electricity market simulation model that can be used to forecast electricity market prices, analyze market power, quantify production costs and fuel requirements, and estimate air emissions including strategic pricing behavior in wholesale electricity markets. Our risk analysis methods can be further used to assess the extent to which market domination will be a problem in specific situations, and the extent to which various policies will be effective at mitigating price and supply domination.
ii) Market Price Projections
EAI develops projections of electricity market prices for range of purposes using a variety of approaches. Our market price projections have been used for system planning, stranded cost determination, asset valuation for property tax assessment, and utility rate design. Depending on the purpose of the market price projection, we offer the flexibility to use the simplified proxy plant methods or detailed finite-element based computer simulation models.
iii) Stranded Costs and Generating Asset Valuation
EAI typically values assets using the income and life-cycle costing approach. We have also developed and applied statistical techniques to estimate the market value of electric power plants based upon actual sales of power-purchase agreements (PPAs) in the wholesale and trading markets.
Our testimony on utility company stranded costs has addressed quantitative and policy issues. That is, in addition to estimating the magnitude of stranded costs, we have developed analysis and recommendations with respect to the appropriate regulatory treatment of stranded costs and gains.
iv) Performance-Based Tariff Development
EAI will evaluate the potential of implementing performance-based tariff (PBT) in a specific market structure. We develop options to ensure that regulated utilities are provided with meaningful financial incentives as Asset Managers to reduce cost and increase efficiency. We also assess and develop performance standards to ensure that utilities will maintain (or improve) customer service, address the needs of low-income customers, and adequately support innovative resources such as energy efficiency and distributed generation. We also investigate performance standards to ensure that utilities continue to provide safe reliable service to all customers under all conditions.
v) Wholesale Electricity Market Operators
In select international markets, EAI participates in the assessment, development and governance of Independent System Operators and Regional Transmission Organizations that oversee the operation of wholesale electricity markets. Our work includes promoting governance systems and operating parameters that ensure that these entities are truly independent. We also recommend policies and institutional structures to promote fair and open-access competition in the physical and procurement wholesale electricity markets, and ensure that retail customers enjoy the benefits of a liquid deregulated wholesale electricity market. We address issues of importance to end-users, such as market power monitoring and mitigation, open access to the transmission system, the removal of barriers to renewable resources, and the development of effective demand response programs.
For more information on how we can improve your existing electricity market structure to enhance/optimize generation supply and provide a cost-efficient price signal to all industry stakeholders, please contact us with the above subject title at enquiries@eaiglobal.com
International Client Projects
Professional
Practice Areas
Energy Supply Portfolio Management
Wholesale & Retail Electric Market Development
Energy Management - Asset Based Utility Programs
Energy Sales & Marketing - Customer Choice
Fugitive Emissions Management - Natural Gas
INTERNATIONAL
ENERGY ASSOCIATES