Case study

KeySpan Corporation

Designing and implementing a business portfolio for optimization solution

KeySpan Corporation (KeySpan) is the fifth largest distributor of natural gas in the United States and the largest in the Northeast region, operating regulated gas utilities in New York, Massachusetts and New Hampshire, with 2.5 million customers. KeySpan is also the largest electric generator in New York State. The company owns approximately 6,600 megawatts of generating capacity, providing power to 1.1 million customers of the Long Island Power Authority on Long Island and supplying approximately 25 percent of New York City’s needs.

KeySpan initiated a program to optimize the company’s portfolio of regulated and non-regulated assets and create additional value for its ratepayers and shareholders. The primary components of this program included a large-scale reorganization to realize creative synergies between once-separate market experts, the insourcing of portfolio management activities previously executed  by outside service providers, and the development of a business portfolio optimization (BPO) tool that provides decision support information to optimize day-to-day as well as strategic decision-making around the company's network of contractual and physical assets.

PA Consulting Group worked in close co-ordination with KeySpan to develop and implement the BPO tool, which has enabled the company to actively identify methods of extracting more value from current assets and opportunities to enhance the composition of the portfolio long-term. The development and implementation of revised business processes stemming from this analysis will enhance operational decision making around the KeySpan portfolio.