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Henwood Strategic Consulting Services helps the City of San Francisco analyze power market opportunities and risks, optimize energy portfolio performance, and manage energy costs. We provide strategic assessments of energy markets, prices, assets, and risks to create value for the city.
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City and County of San Francisco Local Agency Formation Commission April 19, 2002 William Pezalla Adrian Chiosea Linda Stevens
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Henwood Strategic Consulting Services Henwood helps clients create value, analyze power market opportunities and risks, and optimize energy portfolio performance through the strategic assessment of energy markets, prices, assets and risk.
Risks Benefits Feasibility Initial Project Tasks Investigate the: for providing electric utility services
Vertically Integrated Value Chain Utility Operations Fuel Procurement Generation Transmission Distribution Retail Services
Power supply procurement & management Load forecasting & supply scheduling Risk management Energy delivery facilities Revenue cycle services & settlements Customer services Regulatory requirements Key Elements of Energy Service
The City’s Interests • Managing energy costs is essential for: • Current residents • Future growth/development • Lowering energy costs to maintain services within budget • Create self-sustaining operations
Identify City’s key drivers Balance economic, social and political factors Identify possible City roles Evaluate opportunities Energy Strategy Selection There is no “one size fits all” approach
City objectives (long-term & short-term) Expected benefits Risk tolerance Available resources Constituents’ requirements/support Level of commitment Define Key Drivers
Fuel Procurement Generation Transmission Distribution Retail Services Possible City Roles Commodity • Be a provider of specific Value Chain services Delivery Systems Customer Service Facilitate actions by others
Strategic alliance opportunities with other local entities Economic, social and environmental values of “green” power Legal and political threats Distributed generation to enhance reliability, power supply and price stability “Sample” Investigations
Henwood Experience • Provided strategic planning and management assistance in becoming a retail electric utility • Developed strategic plans for providing competitively priced retail electric services • Negotiated inter-utility contract agreements • Managed the procurement of economic power supplies and other wholesale electric services • Supported regulatory and legal proceedings Merced Irrigation District
Henwood Experience • Developed strategic utilities business planning • Provided financial analysis of utilities • Developed utility load forecasts • Assisted with commodity procurement • Assessed utility easements Presidio Trust
Henwood Experience • Treasure Island utilities system transfer Hetch-Hetchy Water and Power Port of San Francisco electric distribution system transfer from PG&E Hunters Point utilities system assessment San Francisco International Airport – power interconnection at transmission level
Henwood Experience OBRA • Developed a strategic plan to take over the operation of utilities at Oakland Army Base • Provided financial analysis of utility operations and forecasted future cash flows • Investigated procurement contracts for commodities and developed a financial model to calculate utility rates • Negotiated utilities partnership program with Port of Oakland • Managed the start-up and interim operations Oakland Base Reuse Authority
City and County of San Francisco Local Agency Formation Commission April 19, 2002 William Pezalla—Project Manager, Power Business Solutions 916-569-0985 ext. 358 wpezalla@hesinet.com Adrian Chiosea—Project Manager, Power Business Solutions 916-569-0985 ext. 312 achiosea@hesinet.com Linda Stevens—Marketing Manager, Strategic Consulting 916-569-0985 ext. 322 lstevens@hesinet.com