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enStratalytics LLC is a full service energy and management consulting and advisory firm specializing in helping energy organizations understand and respond to the challenges of today’s energy markets. enStratalytics can provide mission critical support to energy organizations, their advisors, their customers, their regulators, their investors, and their customers. enStratalytics brings extensive industry knowledge, functional experience, and a deep interest in results to its clients.

Key service areas include:
• Strategy & Corporate Leadership
• Financial and Quantitative Services
• Corporate Development
• Operational Efficiency Processes

An abbreviated review of the recent past demonstrates the forces elements of change the energy industry has faced:

Unbundling of natural gas service began in the 1980’s. Since then, competitive natural gas commodity markets have matured exposing distributors, their customers, as well as their investors to the risks of mature, transparent, and efficient markets. The benefits and risks have increased for everyone as Adam Smith’s invisible hand controls prices and supply development in natural gas commodity markets.

Local gas distribution companies (“LDC’s”) have been operating under shifting regulatory sands for several decades. LDC’s face the need to maintain safe, reliable service under fixed or declining rate regimes. They have had to do this while costs continued a relentless march upward and regulatory requirements have continued to increase. In concert with the unbundling of the natural gas value chain, retail competition initiatives were undertaken in virtually every jurisdiction to varying degrees of success. LDC's have been asked to foster the creation of competitive retail markets. As a result, LDC management teams have been faced with the challenges of operating in both regulated and competitive markets simultaneously.

The electric industry is faced with similar forces of change. The FERC has facilitated the launch of interstate wholesale electric markets. In addition, many State Public Utility Commissions have experimented with retail access for electric service.

Independent Power Producers have aggressively entered these competitive markets for the sale of electric energy. In the transmission segment, Independent System Operator’s are now operating to facilitate the development of the interstate electric transmission networks. These networks will be the physical and operational backbone on which the wholesale electric market will operate. The great Blackout of 2003 is proof positive that all the issues associated with the maturation of these transmission networks have not been resolved. While these developments move forward, electric distribution companies continue to face the arduous task of providing low cost and highly reliable supplies of electricity to all customers.

Energy companies face pressures from the investment community as well. Capital formation requirements demand that energy companies are able to acquire capital at reasonable cost. To do this, energy companies must demonstrate the ability to earn acceptable rates of return and to be able to launch earnings growth initiatives. Achieving a strong and growing earnings outlook requires energy companies to execute their core businesses at a high level of performance, as well as to identify strategic value creation opportunities that will provide a positive earnings outlook for the future.

enStratalytics will partner with energy industry decision makers facing these challenges in order to identify targeted strategic responses. enStratalytics has the breadth of experience to draft solutions based on objective, quantifiable analysis and to assist in the implementation of those solutions. No solution is right for all organizations. Solutions must be crafted to fit the market characteristics as well as core capabilities of each individual organization. enStratalytics will help in the identification of solutions and responses that fit the needs of each individual client.

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