A Fortune 100 pharmaceutical company sought outside perspective to perform an assessment of its internal procure-to-pay (P2P) operations. Once the appropriate measures were in place, management wanted to identify initiatives that would improve the efficiency and effectiveness of this process.
In 2013, Xcel issued its first competitive bidding process for new generation capacity. The Minnesota Public Utilities Commission (PUC) accepted five proposals including 430 MW of natural gas capacity from Xcel and 100 MW of distributed solar from Geronimo Energy. The PUC deemed the case a “contested case hearing” and sought a report and recommendation from an Administrative Law Judge (ALJ). Following an evidentiary hearing, the ALJ recommended the solar proposal as the most reasonable and prudent. The ALJ concluded solar offered the lowest cost on a per-MWh basis after accounting for additional attributes.
It is our view that establishing a governance model for NERC compliance is key to mitigate violations found by auditors and avoid costly fines. Asset owners must provide governance and oversight. We see well-defined compliance processes and open communication with outsourced providers as critical to success.
Congress allowed the production tax credit (PTC) for wind energy to expire on January 1, 2014. However, projects under construction at the end of 2013 may still qualify for the PTC. Therefore, we expect a significant number of new wind projects to come online in 2014 and 2015.
Net metering is one of several policies supporting the growth of distributed generation. In many instances, net metered systems receive credit at retail rates for excess generation supplied to the electric grid. Utilities and regulators have begun raising concerns that net metered systems, and rooftop solar systems in particular, are not paying an equitable share of fixed costs required to support the electric grid.
In their quarterly assessment released last week, GTM Research and the Solar Electric Industries Association (SEIA) report the United States installed 930 MW of solar PV in Q3 2013. This is the second-largest quarter in history and the largest quarter ever for residential PV installations. In addition, the national average for installation prices (across all system sizes) declined 4.2% last quarter from $3.13/W to $3.00/W.
SolarCity is getting into the commercial energy storage business by installing and financing behind-the-meter solar-battery systems and smart software in California, Massachusetts, and Connecticut.
ScottMadden assisted Tennessee Valley Authority (TVA), a large nuclear generator, to execute its Security Upgrade Project to comply with the Code of Federal Regulations 10 CFR 73.55 and meet its Nuclear Regulatory Commission (NRC) commitment dates.
Learn how we worked with a gas delivery organization of a large utility to assess existing practices and identify opportunities for improvement.
In 2008, the state of California established a goal for investor-owned utilities of 33% renewables by 2020, an amount skeptics considered wildly unrealistic. As a result of this policy support, RPS capacity installed has grown tenfold from 692 MW at the end of 2008 to an expected 7,225 MW by the end of 2013. The state has served as an incubator to test new technologies, policies, and business models for renewables. This trend continues as California turns its attention to kick starting the storage industry.
ScottMadden recently conducted a survey to gather opinions on the top strategic priority for not-for-profit electric utilities. While 44 percent of respondents selected “Keeping Costs/Rates Low” as the top strategic priority, the majority selected different priorities. This indicates that these utilities face challenges on multiple fronts. Customers expect low rates, help with local economic development, and improved service and performance, among other things.
Bruce Power’s 2,300-acre site on the shores of Lake Huron, Ontario, houses the Bruce A and B nuclear-generating stations; each holds four Canadian Deuterium Uranium (CANDU) reactors. All eight of the units are operational and producing more than 6,300 megawatts of clean, reliable, low-cost electricity, which is enough to power one in four hospitals, homes, and schools in Ontario. For six months, ScottMadden assisted this private nuclear energy generator with establishing an operational performance review (OPR) to improve station performance and increase accountability among the first-line supervisors.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.
