Electric utilities are impacted by regulatory decisions made by state public utility commissions (PUCs), Federal regulatory commissions, court rulings and legislatures. It is imperative utilities have competent representation and sound advice when addressing regulatory matters. GUERNSEY’s staff of consultants and economists have worked for electric cooperatives and municipalities representing public power - protecting the utilities, their members and customers.
Highly seasoned staff, armed with detailed analyses and years of experience providing testimony and expert witness, GUERNSEY clients are assured they have the right experts in their corner. They are confident GUERNSEY’s seven-plus decades of electric utility experience translates into a complete understanding of the utility regulatory environment and markets.
GUERNSEY’s staff of economists and engineers have performed many analyses involving the valuation of utility assets, including studies supporting capital asset acquisitions, condemnations, sales, valuations and project feasibility. Depending upon the needs of the client, such analyses use a variety of analytic methodologies, including discounted cash flow models, comparable market based sales, and other valuations based upon the principles of original cost and replacement cost new less depreciation. Sensitivity analyses are performed to determine the viability of the valuations reached under different scenarios. GUERNSEY has used these techniques to value assets across a broad range of utilities, including the valuation of electrical, natural gas, telecommunications, water/wastewater and related systems. Several of our consultants are qualified experts in this field, thus providing clients with the flexibility to use GUERNSEY’s studies and staff in support of a wide variety of legislative, regulatory or legal proceedings.
GUERNSEY Economists' Leading Edge Research |
IThe Depressed Natural Gas Market Creates Opportunities for Long-Term Price Hedges – As the chart shows, despite the sharp decline in natural gas front month NYMEX prices over the past year, the out-year prices have remained relatively steady. This is an expression of the traders’ expectations of future values compared to the current depressed prices. To the large natural gas consumers currently acquiring supplies for the upcoming peak period, the current prices provide a respite from the higher prices of recent years. However, in addition to the lower current prices, the current-future price differential creates an unusual opportunity for the large consumer to hedge forward prices by taking a position on the supply side and locking in the lower market values. Read the full article here.
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Angie Salyer
405-416-8203
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