Perspectives

Case Study

Developing Comprehensive Energy Plans for a New York City Utility

Developing comprehensive long range electric, gas and steam plans for a New York City utility, backed by strategic planning, financial analyses and the facilitation of cross-functional working sessions.

Client Situation

A leading New York City utility was required by a PSC-mandated management audit to develop a 20-year plan for each commodity (electric, gas, steam).

Bridge worked collaboratively with dedicated client teams to bring together interests of multiple functions (e.g. finance, regulatory) and operating units (e.g. transmission, distribution) to develop an integrated 20-year strategy with full testing of rate and shareholder implications and authored the plan documents.

Approach

  • Facilitated development of 20-year demand forecasts for electricity, gas and steam
  • Introduced scenario approach to forecasting
  • Incorporated impact of environmental legislation at the Federal and New York State level (e.g. energy efficiency targets)
  • Incorporated impacts of energy efficiency, demand response and distributed generation
  • Determined production, transmission, and distribution infrastructure requirements to meet customer demand. Utilized workshops to gain alignment across operating units and functional areas.
  • Implemented “right-sizing” strategy to align steam production capacity to demand; included recommendation of plant closures, seasonal  plant operation, expansion of cogeneration and exploration of distributed steam supply via CHP
  • Built out asset management strategy to lengthen lives of electric distribution components via enhanced monitoring and control
  • Validated 20-year electric substation plan
  • Developed advanced metering infrastructure rollout plan for electric and gas customers; built business case
  • Developed methodology to identify circuit-level opportunities to leverage DSM and distributed generation to offset need for  incremental transmission and distribution infrastructure. Leveraged best-practice benchmarks to identify potential for load offset
  • Tested opportunities to introduce  new and emerging technologies to reduce costs and enhance reliability and safety e.g. SmartGrid, AMI, storage, enhanced monitoring and control, ‘asset-lite ‘substation designs (e.g. asset sharing, transferrable feeder groups, virtual substations)
  • Developed financial model linking capital and O&M investments to operating metrics for cost, risk and reliability. Measured impact of individual investments on customer affordability.
  • Authored final report

Results

All long-range plans approved by the Board of Directors and successfully presented to the Public Service Commission. Follow this link to the long-range plans.