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:
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.
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
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.
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.
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.
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.