Analyzing and communicating the financial and operational complexities involved in separating a distribution system from its broader service area are crucial in responding to a municipalization proposal.
Concentric’s team of trusted experts specializes in municipalization initiatives and possesses a thorough understanding of the complex financial and operational challenges that arise when separating distribution assets from the wider system. We leverage our deep knowledge of asset valuation alongside our extensive expertise in the operating and regulatory environments of electric utilities, backed by decades of experience in the acquisition and sale of utility assets.
Our approach begins with a high-level estimate of the value of the client’s distribution assets and the costs associated with separating the utility. Our valuation is based on an assessment of fair value or what a third-party buyer would likely pay for the assets in a competitive market solicitation.
We analyze the potential acquisition costs for the assets and property, as well as potential separation and stranded costs that may result from detaching the assets from the current system. Our evaluation also includes estimating the operating costs associated with the newly formed municipal utility. We incorporate historical context regarding municipal power, outlining the benefits and risks associated with the formation of municipal utilities.
Our experts collaborate closely with the client to adapt our services in response to an evolving environment. We offer continuous technical support to communicate the scope, assumptions, scenarios, and results of our work. In partnership with the client’s communications team, we assist in developing a messaging strategy tailored to meet the needs of the local community and key stakeholders.
