Utilities face complex market, administrative, and regulatory challenges in the procurement of energy, capacity, and ancillary services to meet their retail load obligations. Large customers have similar challenges in satisfying their power requirements.  Solicitations for power supplies are robustly competitive only when bidders have confidence in the integrity of the procurement process.  LAI can help state regulatory commissions, utilities, and end-users ensure objectivity and transparency.  LAI has established a track record of success in facilitating solicitations for short, intermediate, and long term power supplies.  The firm’s testifying witnesses can attest to the fairness and efficiency of the solicitation process.  We can help market participants design the auction process in accord with best industry practice.  Our expertise with financial and market analysis will help optimize the selection of physical and financial product options, and can help clients apply portfolio management principles.

In recent years, merchant transmission cables have opened up new pathways for inter-market transactions.  Moreover, evolving market rules establishing locational energy and capacity values, between and within markets, provide expanded arbitrage opportunities.  LAI helps market participants understand the complex market rules governing inter-market transactions.  We provide support for negotiating and administering contracts for energy, capacity, and transmission entitlements.  We ensure that risk is reasonably allocated between the counterparties and that our clients’ energy and capacity benefits are preserved.

Our areas of expertise include:

	Auction design, facilitation, and oversight
	Mark-to-market analysis of rival bids
	Supply portfolio optimization
	Benchmarking
	Valuation of financial transmission rights
	Inter-market regulatory liaison
	Contract design, negotiation, and administration support