Power | Economic Consulting | FTI Consulting
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Power

FTI Consulting has a calibrated suite of proprietary and third-party models to conduct deep-dive analyses of the evolving North American energy markets. These models are used in a range of engagements from the environmental, economic, and market impacts of a proposed legislation to conducting the valuation of an energy asset or company. Our team of experts applies its integrated power, natural gas, coal, and economic impact market models to forecast, among other things, prices for energy, capacity, and renewable energy credit (REC) prices, economic new builds and retirements, unit generation, coal and gas production, transportation, consumption, prices, emissions, and economic impact. These analyses are typically conducted either stochastically or deterministically using a scenario approach that identifies a range of outcomes given potential market, technology, and regulatory uncertainties.

We use our nodal and zonal power market production cost models to assist clients with important business decisions, such as portfolio optimization; developing, contracting, acquiring, or divesting energy assets; integrated resource planning; or strategy development to meet critical stakeholder objectives, such as reliability, resiliency, sustainability, and financial viability. Through its unparalleled modeling capability and deep market expertise, FTI Consulting has delivered critical insights to Fortune 500 companies, federal and state policy makers, trade associations, state governments, and utilities.

Our Service Offerings

Energy Policy Analysis

FTI Consulting experts have developed a unique approach to policy analysis by linking macroeconomic tools with its energy market models to assess the impact of proposed energy policy, regulatory, and legislative initiatives. This integrated approach enables us to analyze policies such as greenhouse gas cap-and-trade programs or carbon tax regimes, on the electricity sector and the U.S. economy. Our experts have presented the results of such analyses to audiences ranging from corporate executive committees and Board of Directors to state and federal legislators.

Mark-to-Market and Value at Risk (VAR)

FTI Consulting experts use market-modeling tools to monitor, manage, and optimize the energy portfolios of Fortune 100 corporations, developers, and large asset managers through value at risk (VAR) assessment. These clients face a market with more weather variation, plentiful natural gas resources, continued baseload retirements, increasing renewables and storage mandates, and growth in corporate renewable power purchase agreements (PPAs). Our extensive experience, simulating hourly day-ahead and real-time hub and nodal prices across the U.S. under various market scenarios, has provided critical insight for our clients to formulate strategies that maximize portfolio performance and manage market exposure.

Due Diligence and Valuation

FTI Consulting experts have significant experience using market modeling capabilities to provide insights to clients on buy and sell-side transactions. Our modeling tools simulate energy, capacity, REC, and fuel prices to inform the asset or corporate valuation. As such, we conduct commercial, contractual, market, and technical due diligence as well as conduct valuation for diverse energy assets. Clients have included developers, investors, utilities, and banks.

Integrated Resource Planning

FTI Consulting experts have decades of combined experience using market modeling tools to help utilities assess their long-term system needs and address new challenges and risks. Recent market trends – such as the increasing complexity of the grid, penetration of behind-the-meter resources, increasing intermittent resources, and retirement of nuclear and coal generators – pose unique challenges that test cost constraints and system reliability. With its integrated suite of market modeling tools, our experts help clients formulate strategies that best achieve objectives of reliability, resiliency, sustainability, and financial viability.

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