Concentric Energy Advisors
The Concentric Connection • June, 2017 www.ceadvisors.com
Our team of insightful and diligent experts guided clients through a variety of challenging situations in 2016. Here is a brief review of a few remarkable projects.
Concentric Energy Advisors
Achieved Significant Savings

By completing a thorough, professional appraisal of our client’s property and transmission and distribution systems, Concentric helped a public utility achieve significant savings on property taxes: the difference between our appraised value of the assets and the town appraiser’s valuation was more than $140 million in the 2012 tax year and $124 million in the 2013 tax year. The case was litigated, and our appraisal and valuation methodology were both accepted in full by the Superior Court.

Concentric Energy Advisors
Going Above and Beyond

Concentric was retained by a client mid-way through the regulatory review process of a proposed merger to provide rebuttal testimony. When the case became more contentious than originally anticipated, our involvement expanded significantly to include providing advice on regulatory commitments, reviewing testimonies, engaging in extensive witness preparation, and supporting the client at hearings, all in addition to providing expert testimony. Concentric’s services were highly praised by both parties to the transaction, and led to new provisions which met or exceeded national norms for merger approvals.

Concentric Energy Advisors
Confidently Delivered a Turn-Key Transaction

We provided a client with a turnkey solution to a large-scale asset auction. Concentric performed all of the logistical auction processes that might have been allocated to multiple vendors, such as developing the blueprint for the auction process, marketing the asset, due diligence, and technical expertise. The turnkey solution resulted in a highly successful auction and transaction terms that were highly favorable for the seller.

Fulfilled an Energy Vision

Concentric helped two New York utility subsidiaries create and file their first Distributed System Implementation Plan (DSIP) with timeliness and expertise. The DSIP allowed them to fulfill their vision of transforming their electric utility business to integrate clean energy resources and serve as a platform to provide customers with new products and services. Concentric collaborated with a large and diverse client team to develop the filing and to organize the effort required to execute the plan. Concentric supported the client Project Management Office’s efforts to define, review, and integrate materials that described the changes to the utilities’ grid operations, integrated distribution system planning process, and market enablement functions.

Concentric Energy Advisors
Concentric Energy Advisors
Simplified the Highly Complex

The client was evaluating a significant investment in on-site solar projects and needed to understand the potential for reducing or eliminating net metering credits across seven states in the coming years. Concentric built tariff models for each state to demonstrate the cost shifting impact of various levels of solar penetration under varying rate structures. By simplifying a highly complex financial and regulatory situation, Concentric supported the client in identifying markets with the most efficient risk-reward trade-offs.

Numbers, Dollars, and Dates

Our client was facing a lawsuit seeking $7.6 billion in damages based on a claim that its faulty equipment had caused the owners of a power station to prematurely retire the station and incur billions in lost profits. Concentric analyzed the claim for damages which included an in-depth analysis of topics ranging from power and natural gas prices, CO2 emissions, geological threats, and coastal regulations. Our team concluded that there were many plausible scenarios in which damages (not including out-of-pocket costs already incurred by the claimants) were $0. The court awarded the claimants a net award of $67 million, less than 1% of their original claim, and required that the claimants pay all of our client’s legal and consulting fees.

Concentric Energy Advisors
Concentric Energy Advisors
Recent Trends in Utility Mergers: Standards of Review

Mergers and acquisitions are changing the business landscape of the utility industry.  While each merger is based on a unique set of facts and circumstances, we can also learn from the broader trends underlying the drive toward consolidation in the industry.  As is evidenced in the chart below, the number of investor-owned utilities has declined by more than 50%, and the pace has not slowed.  This is the first in a series of articles where we will explore recent trends in utility mergers.



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The Foster Report's Featured Story
Concentric Energy Advisors
FERC Nominees Questioned at Senate Hearing, With Support From Republicans

In a May 25 hearing before the Senate Energy and Natural Resources Committee, President Donald Drumpf’s nominees for FERC and the Department of Energy (DOE) faced questions but limited resistance from lawmakers, and the chairman of the committee expressed hope that they could quickly be confirmed.



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