PA Consulting Group was retained by a major Southeast utility to provide market insights and articulate the investment climate of power markets outside of its native service territory as part of a corporate initiative to explore strategic asset acquisition opportunities. As part of its activities, PA analyzed seven power markets including an analysis of major market players, typical contract structures, market operations, and environmental regulations. In addition, the team provided market fundamentals such as projected future supply/demand mix and reserve margin. Through its market expert analysis, we were able to assist the client in understanding the major drivers of power plant values, and investment risks and opportunities for each power market.
A confidential private equity client engaged PA to provide a forecast of energy and capacity price products for all U.S. power market hubs on a quarterly basis. The team examined the short and long term impacts of changing supply and demand, environmental initiatives, commodity pricing, and other major market drivers as they arise. PA’s insights are used by the client to adjust short and long term investment strategies and value transactions in the derivative markets.
PA was engaged by a major utility to provide market insight and a long range forecast of power prices to support the client’s application for a Federal Loan Guarantee. Our team of subject matter experts provided a 30-year forecast of energy and capacity prices under a base case and several scenarios examining the impact of gas prices, supply-demand balance, and environmental and other regulatory scenarios. PA provided the utility with a report detailing the long term market outlook, and highlighting key investment risks in the focus market.
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