Utility Recession Proofing
Managing emergent economic, regulatory and environmental changes
A presentation by two ScottMadden partners, Jere Jacobi and Steve Sanders, who are actively engaged in supporting clients on this most important issue.
Despite a widely held assumption that utilities have generally been "recession-proof", history demonstrates that utilities have faced a different set of circumstances in every recession, and therefore past recessions cannot be used to predict utility behavior in the current climate. Utilities face unprecedented internal and external pressures in the current marketplace with declining reserve margins, increased demand, increased costs and rate case uncertainty. Utilities can employ a variety of strategies to mitigate their risks depending on their current position in the marketplace.
ScottMadden consultants are applying their energy industry knowledge and experience to develop unique solutions to combat recessionary pressures. We believe that potential strategies range from tactical to opportunistic, and each strategy must consider a wide spectrum of options to best position a utility for financial success. Our approach aides clients in identifying and assessing strategic options and developing practical solutions to address emerging cost issues.