Conduct bill audits and energy cost reduction assessments

Energy and purchasing managers turn to us for fast and effective service... creative solutions... and an aggressive and consistent pursuit of excellence. An established and respected partner like BAI can help achieve measurable results in the rapidly changing energy and utilities industry. Typical activities that our professionals engage in:

• Utility Rate Cases - Whether working for an individual client or an intervenor group, we review the utility rate filing to determine the reasonableness of the total rate increase requested, along with allocation of rate responsibility to customer rate classes, and the design of rates.  If unreasonable proposals are made, we investigate the issues in more detail, including preparation of discovery requests.  If problems remain, we prepare and submit expert testimony addressing the problem area or areas, on behalf of the client(s). Then, our witnesses defend their positions by responding to discovery requests, addressing adverse witnesses' testimony and withstanding cross-examination.  In addition, we often provide technical assistance in the preparation of briefs in the case.

• Energy Procurement - Informed and diligent electricity or natural gas procurement is critical to success due to the energy dollars at stake.  In a typical procurement assistance project, we first help the customer determine the best energy products to seek, based on their risk tolerance, budget objectives and expectations of future energy needs (especially if operations are changing).  We then prepare and distribute a solicitation of supply offers, usually through a request for proposals, or RFP, specifying the load to be served and the rate products sought. We then administer the solicitation, answer questions and receive the responses.  Once responses are received, we interpret them and provide an economic evaluation of the offer, taking care to ensure that all offers are analyzed and presented on a comparable basis.  Then, as needed, we accept price refreshes and assist in contract execution.

• Ongoing Energy Management - No rate or supply contract lasts forever.  In the case of competitive supply, it is often wise to set contract terms in accordance with market conditions, whether it is related to volatility or general trends in market prices.  Many clients diversify their cost exposure to market swings by strategically hedging portions of energy spend and layering in additional hedge positions from time to time.  We assist such customers by continually monitoring market conditions, the customers' hedge positions and providing periodic reports.  By continually monitoring these conditions, we can identify opportunities for (and threats to) reduced energy prices.  In addition, for some clients, we regularly verify energy related charges from suppliers, utilities and transmission providers, to ensure accurate billings.

• Legislative and Regulatory Policy - When new laws or public utility commission rules that can affect our clients' costs are presented, we are often called upon to provide technical analysis of the potential impact on customers' energy bills, and to assist in the negotiation of legislation and implementation of rules.  Sometimes this even leads to providing expert testimony to legislative or regulatory bodies.

• Special Studies - With our broad base of expertise in the energy field, we are hired for assistance on a variety of energy related matters.  Such special study engagements include, but are not limited to, the following:

  • Forecasting - Provide clients with cost and price forecasts, based on our knowledge of applicable market conditions and factors that will drive future energy cost trends.  This analysis often involves production cost modeling to determine expected average and incremental energy costs.

  • Plant siting - For energy intensive industries, energy costs can be as important to plant siting decisions as are input materials, transportation and labor.  Because of our knowledge of both regulated and competitive energy markets, we can provide clients with information to help them select the optimal plant site.

  • Contract negotiations - Even in regulated markets, supply contracts are often necessary.  We provide intelligence to our clients on underlying cost and regulatory parameters to help them negotiate the most favorable contract terms.

  • Interconnection studies - We perform load flow and stability analyses to evaluate transmission limitations in connection with interconnecting new generation or cogeneration facilities.
    
    

• Seminars and Training - Annually we offer our Spring Conference on Utility Ratemaking Fundamentals.  In this two-day seminar, our professionals provide information on the various parts of a utility rate case, wholesale and retail energy procurement, and emerging issues.  In addition, we provide customized, on-site training to clients on a variety of regulatory and procurement issues.

Our consulting services fall into two broad categories:

Energy, Economic, and Regulatory Consulting

We provide consulting services in the economic, technical, accounting, and financial aspects of utility ratemaking. This includes development of cost of service, rate design and revenue requirements and all regulatory related matters that affect rates now and in the future.  Our professionals have represented clients in thousands of utility regulatory and other rate proceedings involving most of the major electric utilities in the United States and Canada, natural gas distribution utilities and many water and wastewater utilities. We prepare special energy-related studies to assist in the corporate decision-making process.  We also support legislative coalitions seeking to implement or alter legislation.

Energy Procurement and Management  

We provide energy procurement   and management services such as securing least cost reliable energy,  development of energy purchasing strategies, energy usage analysis, price forecasts, preparation of requests for proposals and contract negotiations. We assist clients in meeting environmental targets in the evolving landscape of environmental sustainability and compliance.