In the United States, aging infrastructure and the unlocking of renewable energy sources are driving new transmission investment. Transmission formula rates are attractive to many entities exploring ways to form, build and operate transmission-only companies, either as regulated or merchant transmission entities. FTI Consulting utility experts, many having worked in the industry before joining the firm, are well-versed in helping transmission entities explore such opportunities. With this expertise within one firm, we can move fast to help clients develop strategies and make decisions. Across Europe, transmission and distribution regulations are evolving, and FTI Consulting experts have been involved in designing many of the changes. Our work includes interpreting and evaluating whether to apply some of the latest UK regulatory changes from Ofgem’s RIIO approach.
Our Service Offerings
Our experts have represented utilities and other clients involved in disputes about the allocation of costs for new regional transmission facilities. These high-stakes assignments draw on our extensive knowledge of the operation of power markets, our technical understanding of transmission operations, and our experience as energy economists and regulatory experts. We have a strong industry reputation built on our understanding of the relationship between the engineering and economics of transmission system operation.
Transmission-owning entities are subject to Federal Energy Regulatory Commission (“FERC”) proceedings, policy, enforcement and environmental reviews. FTI Consulting professionals are well-versed in the rules and regulations governing how new transmission is selected and built in regional markets managed by independent system operators and regional transmission organizations and become involved in the allocation of the associated costs. We are recognized at FERC for our expertise in understanding the complex interaction between reliability and market economics arising in decisions about what transmission will be built and where. Within Europe, transmission policies and regulations are changing to meet the challenges of security of supply and the need to adhere to the European Union’s unbundling policies. FTI Consulting has been helping clients negotiate with regulators on how new electricity interconnectors can participate in capacity markets.
In building a new transmission line, companies have to fight for every foot of its route. The transmission industry faces ongoing challenges — permitting, siting, stakeholder management — requiring outreach to staff at FERC and Capitol Hill and at state regulatory agencies to ensure that policy decisions work for our clients. Outreach to local government and to the public also is needed to help mitigate “not in my backyard!” resistance. Influencing these disparate but critical audiences requires deft and experienced communications. The Strategic Communications specialists at FTI Consulting offer clients that expertise, creating and publishing policy and corporate positions appropriate to various audiences and developing communications and public affairs/community relations strategies that are reasoned and focused.
Transmission owners face large risks and uncertainties in the transition to regional markets for wholesale energy. These include ways to recover transmission revenue requirements in a restructured market that eliminates some or all rate pancaking; ways to protect a transmission company from the financial and legal consequences of reliability problems arising in a wholesale market operated by a third party; and ways to provide for horizontal separation of transmission from the generation and distribution businesses of a vertically integrated utility without degrading the rights of native load customers. FTI Consulting professionals have a lengthy track record and recognized expertise in working with transmission owners to better understand the impact of restructured wholesale energy markets on the transmission business.
Strategic & Business Consulting
The traditional business of transmission and distribution networks is changing rapidly. Traditional centralized energy systems are evolving to address how to derive value from smart data, how to manage distributed generation/gas production connecting to local networks, how to manage intermittent renewable energy flows and how to respond to greater public scrutiny of constructing new assets within local communities. FTI Consulting specialists are actively advising a range of clients on how to navigate through this transition and make the right strategic choices to secure the company’s commercial future and maintain its social license to operate with stakeholders.
The success of a restructuring, merger, acquisition, carveout, spin-off or divestiture may depend on how quickly management voids can be filled once the transaction is completed. 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. In a moment’s notice, our experienced and credentialed senior executives assume C-level roles, providing the leadership and strategic decision-making ability to maintain momentum, establish corporate priorities, build morale and provide critical continuity. Our C-level executives serve in the following roles: chief executive officer, chief operating officer, chief financial officer, chief restructuring officer, controller and treasurer.