Power & Utilities | FTI Consulting
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Power & Utilities

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Parties involved in the production, transmission, distribution and trading of electric power face a range of strategic, financial, reputational, customer and regulatory challenges. Overcoming these challenges effectively requires comprehensive knowledge of the industry — experience that the power and utility experts at FTI Consulting bring, along with an analytical approach to problem solving. Clients across all markets, jurisdictions and countries around the world benefit from our firm’s global reach and knowledge of regional markets, regulations and governments. Rely on us to quickly ascertain key issues and address structural changes in the power industry, conflicting regulatory frameworks and pervasive contractual disputes, and to improve operations, increase profitability, and maximize and protect enterprise value.


Areas of Expertise

Clean Tech, Mobility and Efficiency

Companies are challenged to change the way they manage energy, driven by increasing energy costs, innovative technologies, and pressure to reduce pollution and emissions. In addition, new opportunities are arising from declining costs of energy storage, digital innovations, growth of the hydrogen economy, and a transformed mobility market, including electric vehicles and alternative powertrains, connected and autonomous cars and trucks, and on-demand mobility and shared services. FTI Consulting provides a wide array of advisory services in clean tech, mobility and efficiency that address the strategic, financial, operational, technical, reputational, regulatory and capital needs of companies as the energy and mobility markets continue to be disrupted.

Energy Retail & Services

Society-wide decarbonization goals have resulted in swift changes in the generation mix, new asset classes, and ongoing assessment of investments and divestitures. Integration of digital tools throughout the energy market has not only enhanced grid connectivity and system performance but has also afforded customers powerful options in how they consume, source and manage energy. These complex market trends are shaping a new paradigm for utility planning, policy making and investors. We help clients to explicitly evaluate resiliency, reliability and new ways to engage stakeholders. Our team of economists, engineers and C-suite executives — many with extensive experience running utilities themselves — bring their market-leading expertise to help you navigate these challenges and capitalize on new opportunities.

Market Design, Rates & Regulation

Over the past several decades, energy markets worldwide have undergone significant transformations in deregulation, resulting in competitive wholesale energy markets that seek to improve the economic signals between generators and consumers and allocate resources efficiently. Our experts have been instrumental in designing, analyzing and integrating these energy markets around the world, including energy-only markets, capacity markets and ancillary and other service markets. Our clients, ranging from market participants to system operators and regulators, seek our unique expertise as they navigate design challenges for the evolving market, which today include the integration of renewable generation, increasing reliability standards and enhanced flexibility. Our expertise spans economics, finance, statistics and public policy, resulting in our unique approach to helping utilities make compelling arguments to regulators in an effort to be effectively compensated for the risk they bear. Our expert witnesses have testified and authored expert reports on topics ranging from cost of capital (ROE) and capital structure, to incentive design and management audits.

Power & Renewables

Companies involved in power generation face numerous hurdles, including low natural gas prices, slow growth in mature power generation markets, barriers to entry (both low and high), excess and idled plant capacity, reliance of renewable assets on supportive government policy incentives, global commoditization and economic natural gas alternatives, development of innovative technologies and entrance into new markets. Our global team delivers comprehensive services that address every need of companies involved in utility-scale generation, including nuclear, thermal, solar, wind and biomass, among other emerging low-carbon clean technologies, as well as energy storage.

Transmission & Distribution

Transmission and distribution entities rely on our utility experts — many of whom have held executive positions within the industry in Europe and the U.S. — to assist them in exploring opportunities, developing strategies and making decisions. We’ve been involved in designing many of the changes to Europe’s regulatory frameworks, and we know how to interpret and evaluate the latest regulatory approaches to transmission and distribution globally to help stakeholders set strategies and optimize the regulatory relationship. In advising our clients, we draw on our extensive knowledge of the operation of power markets, our technical understanding of transmission and distribution operations, and our experience as energy economists and regulatory experts.


How We Help

Business Transformation

Our global team of highly experienced business transformation professionals provides an expert-driven partnership model to our clients. We help you improve efficiency and effectiveness, executing with a balanced approach between short-term benefits and long-term strategic goals. We deploy best practices tailored to the industry dynamics of each client, focusing on the specific challenges that face power and utility companies and the opportunities that drive performance.

Disputes

Our experts have represented utilities, governments, investors and other clients involved in disputes about the allocation of costs for new regional transmission facilities, as well as disputes related to contractual issues, environmental liabilities and third-party agreements. These high-stakes assignments draw on our extensive knowledge of the operation of power markets and clean energy markets, our technical understanding of products, services, and transmission and distribution operations, and our experience as energy economists and regulatory experts.

Expert Testimony

Our experts routinely testify on behalf of electric transmission and distribution utilities, natural gas pipelines, independent energy providers, FERC and state jurisdictions and other stakeholders. Our expertise spans rates and tariffs (cost-of-service and incentives), cost of capital analyses (ROE), rulemakings and management audits.

Interim Management

A transaction or restructuring’s success depends on how quickly voids in management can be filled. The seasoned energy professionals with C-level experience at FTI Consulting are prepared to fill the void when client companies face leadership, financial or operational challenges. Our C-level executives frequently serve in the roles of chief executive officer, chief operating officer, chief financial officer, chief restructuring officer, controller and treasurer.

Market Deregulation

FTI Consulting professionals have a lengthy track record and recognized expertise in working with utilities, regulators and other stakeholders to better understand the impact of deregulated wholesale energy markets on the utility business.

Policy

Clients trust us because we are well versed in the rules and regulations facing utility-scale generation owners and shaping the behind-the-meter landscape in markets managed by various independent system operators and regulators across the globe. We understand the laws that govern how new transmission and distribution networks are selected and built. We have advised governments on international best practice in network development policies, and have helped network developers find opportunities within new policy mandates.

FTI Consulting experts were responsible for developing the Locational Marginal Pricing (LMP) system and associated financial transmission rights (FTRs) used in all organized power markets around the world. The same set of experts who have been instrumental in designing modern energy markets, also offer key expertise in analyzing the functioning of these markets, both on behalf of policy makers and market participants who seek new opportunities in the ever-changing energy policy landscape.

Strategic Advisory

Clients rely on our guidance to navigate through the transition from traditional transmission and distribution business to more distributed and intermittent energy flows. We help identify opportunities for new investments and design strategic choices to meet evolving customer demands. We also advise on transitioning from conventional generation business to a cleaner, more efficient and nimble generation portfolio, helping these clients determine opportunities to maximize options for existing generation portfolios, and develop and message strategy.

In addition, many clients rely on our support to capture opportunities from the falling costs of energy storage, the new technologies increasingly enabled by advances in digital, the rise of the hydrogen economy and the unprecedented transformation of the mobility market. We leverage commercial, technical and policy expertise plus data-driven analysis to develop and evaluate action-oriented strategic plans, including portfolio strategy and resource prioritization, shareholder value optimization, business unit strategies, long-term business plans, new market-entry strategies, new business-model development and digital strategies.

Strategic Communications

From decades of work, we have a deep understanding of the ongoing issues that each sector and player in the power industry faces. Power generation faces environmental pressures for fossil fuel plants and depressed power and capacity prices. The transmission industry faces ongoing challenges in permitting, siting and stakeholder management. And the clean tech, mobility and efficiency sectors face environmental pressures for incumbents, changing regulations and a rapidly changing marketplace. All of these require outreach to governmental and regulatory agencies to ensure that policy decisions work for our clients. The strategic communications professionals at FTI Consulting offer clients that expertise, creating and publishing policy and corporate positions appropriately tailored to various audiences, as well as developing communications and public affairs/community relations strategies that are reasoned and targeted.

Strategic Rate Advisory

In addition to providing expert testimony, our cost-of-service and ratemaking experts help utilities strategize rate case approaches, understand ratemaking implications of regulatory and policy changes, and prepare regulatory filings for a range of utility activities. We help utilities identify business initiatives, implement performance and emergency response improvements, build greater resilience into the systems and, if necessary, secure appropriate funding.

Transaction Advisory

Companies, private equity funds, institutional investors and utilities all engage our experts for advisory on potential acquisition or sale of assets and businesses. We perform financial and commercial due diligence for both sell- and buy-side transactions; devise actionable investment theses to buy, sell or expand; provide valuation and cash flow modeling services; and undertake M&A screening to identify targets that will meet the business, financial and strategic goals of our clients.

Turnaround & Restructuring

The turnaround and restructuring experts at FTI Consulting help management teams and lenders to distressed power and utility companies stabilize finances and operations in order to reassure all parties in interest that proactive steps are being taken to enhance value. For clients in crisis, the team develops liquidity forecasts, improves cash flow management, obtains additional financing, negotiates loan covenant waivers and guides complex debt restructuring.

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