Deregulation has created opportunities for large industrial, institutional, and commercial entities to materially lower their energy costs. The road to an optimal energy strategy is paved with complex tradeoffs and hidden second-tier costs. The financial rewards associated with inside-the-fence cogeneration can be tenuous, especially when the incumbent distribution company has state regulatory authorization to impose costly back-up wire charges. New procurement initiatives can be saddled with weighty transition charges. Protection against energy price volatility requires knowledge of market dynamics and well-conceived risk management programs.

LAI can help you identify traps and hidden risk factors. We can design a long-term strategy that best fits your reliability and economic imperatives. We have the requisite expertise to define a practical strategy to achieve beneficial efficiencies in the competitive market. We bring to the decision-making process advanced power engineering expertise coupled with the transactional experience needed to blend physical and financial solutions.

LAI's expertise has allowed our clients to:

	Understand changing federal and state energy policy, in particular, Standard Market Design, automatic price mitigation, and congestion effects
	Evaluate cogeneration and merchant power plant options
	Simulate day-to-day competitive operation of an existing or proposed power facility
	Issue RFPs and manage negotiations
	Identify and arbitrage opportunities to lock-in gas/power spreads
	Formulate tolling arrangements that shift gas/power linkage risk to third parties
	Assess available transmission capacity to transport power to and from the competitive market
	Coalesce user groups to achieve market supply economics