ScottMadden, Inc., one of North America’s leading energy consulting firms, recently released its Fall Energy Industry Update. Themed “Generation to Generation: An Energy Evolution,” this report will give you bottom-line insights, distill recent events, and help you as you prepare to anticipate and respond to emerging trends, including the wholesale energy competition conundrum.
Our energy industry is evolving. It is a time of surprising developments and new ideas. FERC has, for a while, attempted to find a price formation construct in competitive electric markets that provides the “right” price signals. It is a difficult economic problem that, so far, has evaded a simple solution. Complicating this, the Department of Energy now has proposed action to compensate “fuel secure” resources, defined by DOE as those with a 90-day fuel supply on site. This compensation would ensure such resources recover their costs. In this report, ScottMadden takes a close look at the underlying problem, its causes, and some solutions being considered.
“The balance between short-term pricing and long-lived investments in power generation has long been a tricky one to manage,” said Stuart Pearman, partner and energy practice leader at ScottMadden. “Now FERC has to navigate recent state-driven, outside-of-market compensation mechanisms and a new consideration in this process—the DOE’s Grid Resiliency Pricing Rule proposal. Comments on the DOE proposal have been, to put it mildly, robust. Some think it promises to be a Gordian Knot. It surely will generate much industry interest in the coming months.”
If you were unable to join our Energy Industry Update webcast, the final recording is now available. Hear what our industry experts have to say about changes to, and potential solutions for, FERC-regulated wholesale markets, the future of utility solar, and grid investment in this new session.
About ScottMadden’s Energy Practice
We know energy from the ground up. Since 1983, we have been energy consultants. We have served more than 400 clients, including 20 of the top 20 energy utilities. We have performed more than 3,000 projects across every energy utility business unit and every function. We have helped our clients develop strategies, improve operations, reorganize companies, and implement initiatives. Our broad and deep energy utility expertise is not theoretical—it is experience based.
About ScottMadden, Inc.
ScottMadden is the management consulting firm that does what it takes to get it done right. Our practice areas include Energy, Clean Tech & Sustainability, Corporate & Shared Services, Grid Transformation, and Rates, Regulation, & Planning. We deliver a broad array of consulting services ranging from strategic planning through implementation across many industries, business units, and functions. To learn more, visit www.scottmadden.com | Twitter | Facebook | LinkedIn.