The utility industry has transformed from a set of relatively homogenous options that provided a safe haven for risk-averse investors to a set of complex and diverse companies whose profiles can differ significantly. Utilities today must not only manage the operating and financial risks of their regulatory compacts but also potentially diversify into a host of non-regulated, higher risk income-producing ventures for its shareholders. Low natural gas prices, increased penetration of renewable generation, out-of-market contracts, and emerging consumption patterns have changed utility economics. Evolving customer demands, environmental risks, and new regulatory regimes are putting significant stress on customer rates, business profitability, or both. A utility’s regulatory compact is far more complex and subject to financial downside than in the past. Regulators in many jurisdictions have taken an increased interest in the operational capabilities of the utility, and, in some cases, actively pushing for aggressive change. Utilities are grappling with these new realities now, all while concurrently managing their broad array of complex assets and contractual obligations to provide safe and reliable service to customers. 

Scidan Consulting’s team has a proven track record of delivering solutions to these utility client challenges in many different regulatory environments. Additionally, we can assist with assessing and evaluating the strategic and tactical aspects of non-regulated ventures and provide insight into the risks and benefits of these strategic opportunities.