Electricity Market Design and DevelopmentElectricity Market Design & Development

EAI consults on a wide range of electric industry regulation and market restructuring issues.  We strive to design and develop electricity markets with a key focus on least-cost, safe and reliable that are open, fair and equitable all industry participants.

Our specialized services encompass the following areas:

Electricity Market Analysis & Modeling

Our analysis involves chronological, multi-area electricity market modeling that can be used to forecast electricity market prices, heat rate projections, analyze market power, quantify marginal production costs and estimate strategic pricing behavior in wholesale and emerging electricity markets.

Asset Valuation & Stranded Costs

In addition to evaluating assets through income and life-cycle costing approach, EAI offers applied statistical services to estimate the market value of electric power plants and power-purchase agreements (PPAs) in open and regulated electricity markets.  Our expert analytics include electric distribution and transmission system planning, stranded cost determination, asset valuation for tax assessment and utility rate design. 

Performance-based Tariff Development

We evaluate the potential merits and suitability of Performance-based Tariff  (PBR) in a specific electricity market structure. EAI develops options to ensure regulated utilities are provided with meaningful incentives to reduce cost and improve operating efficiency. We assess and create performance standards to ensure that utilities will maintain (or improve) customer service, better address their customers’ needs and support innovative electricity distribution asset-based solutions.

Wholesale Electricity Market Operators

In select international markets, our consultants participate in the assessment, development and governance of Independent System Operators (ISO) and Regional Transmission Organizations (RTO) that oversee the operation and integrity of wholesale electricity markets.  EAI provides consultation and policy recommendations to promote fair, open-access competition in physical supply and wholesale trading electricity markets.

Click here for a sampling of our clients served.

For more information, please click here to contact our team.