Financial Analysis
Experience and insights in developing power and utilities industry specific forecasts can help you have confidence in your decisions. Financial analysis provides that foundation.
Our industry experience leads to insightful analysis:
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Long-range forecasting is an essential step in providing future reliable services. We work with your team to develop 5, 10, 15, and 20-year forecasts based on current industry trends. Forecasting will give your organization financial and operational options and leverage in negotiations.
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Long-range planning will detail the timing and amount of future rate increases, project funding, and borrowing needs. Forecasts will help position your organization for the best possible financial ratings and lowest possible borrowing costs.
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We perform competitive analysis projects for existing broadband utilities seeking to expand their services and transition from cable providers.
For cooperatives and municipalities considering broadband services, we prepare financial analysis, business plans, service pricing, and cost of ownership studies to determine the feasibility of providing services.
Currently, there are many grant programs available to fund broadband expansion. But, once the grant funds are spent, the cost of ownership must be funded. Preparing a feasibility study before deciding to build out broadband services is prudent.
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We provide performance benchmarking studies that measure financial and operational performance and identify strengths and improvement opportunities. Benchmarking is essential to planning and implementing short- and long-term strategies.
Benchmarks are based on industry standards, including those of bond rating agencies', and tailored to your organization. The project deliverables include dashboards for presentation to Boards and management and training to your team on the use of the benchmarking model.
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Our team has deep experience in analyzing billings under joint power plant ownership contracts, including the major area of dispute - cost allocations between joint owners.
We conduct engagements by evaluating charges by plant operators compared to language in joint ownership agreements.
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We developed industry benchmarks for an electric utility to use in their evaluation of financial performance and goals for employees. The benchmarks were based on industry peer comparables in key areas.
The project included developing policies and procedures for gathering data to develop the benchmarks from utility financial information. We also developed online dashboards for more concise reporting to management and the oversight Board.
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A Midwest cooperative wished to expand its broadband services in a competitive market. We evaluated the competitive cost structure of broadband services and made recommendations for pricing and marketing of managed network services. We also evaluated business processes and marketing approaches, making recommendations for efficiencies and greater outreach.
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California municipal electric utilities - We prepared a cost model for two utilities to evaluate joint costs for outsourced electric distribution maintenance as an aid in their contract negotiations.
The study included a forecast of cost increases coupled with increased service needs.
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We prepared a 15-year funding plan for an electric and water utilities capital plan. The funding sources included earnings, debt, grants, and rate increases.
The plan forecasted the timing of rate increases based on customer load trends coupled with increased electric and water supply needs.
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Recent projects include a review of joint power plant billings by the plant operator to minority unit owners. We evaluated cost allocations, direct billings, and decommissioning cost charges for accuracy and adherence to management ownership agreements to supply information in a billing dispute. The process included providing depositions on our analysis.