Case study

KeySpan Corporation

Designing, implementing and supporting the asset optimization group

KeySpan Corporation (KeySpan) is the fifth largest distributor of natural gas in the United States and the largest in the Northeast, 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 capacity needs.

KeySpan engaged PA Consulting Group to lead a large-scale reorganization and develop the Asset Optimization Group (AOG). The objectives of the reorganization were to better leverage the company’s expertise in commodity markets and asset operations, extract value from organizational and communication efficiencies, and facilitate identification of new projects and transactions that offer near-term and long-term profitable growth for the core business.

PA guided KeySpan through a strategic change program to optimize the company’s portfolio of regulated and non-regulated assets and create additional value for its ratepayers and shareholders – from strategy creation and selection through to organizational realignment. When combined with the development and implementation of a proprietary portfolio optimization model and associated strategy assessment protocols, this large-scale program helped ensure KeySpan would be positioned to meet short-term and long-term challenges.