Typical Questions Whitebirch Answers:

  • What is the impact to customer bills from the existing and future environmental mandates of the utility? How much debt does the utility need to issue to address these mandates? What is the impact of changing interest rates and debt amortization?
  • What is the impact from the continuing trend of distributed generation? How do solar feed-in tariffs impact cost of generation and the planning for long-term resources?
  • What is the optimal capital structure? How much of the capital improvement program should be debt funded to equitably allocate costs over time without increasing the debt to a point it limits future flexibility to fund future needs?
  • What is the impact to the financials from the volatility in commodity and fuel prices in the market? Are there tools to manage the commodity price risk? How does the financial strategy change, if at all, with rising commodity prices for natural gas?
  • What strategies are available to keep customer rates affordable, and address low-income customers who are most affected by the rising costs due to environmental compliance?
  • How will conservation measures impact the financial picture of the utility? How can the utility send appropriate price signals such that conservation efforts tie into a long-term financial plan?

Common Uses:

  • Generation costs by resource
  • Conservation impacts and load growth
  • Natural gas and other commodity prices
  • Commodity price hedging options
  • Economic dispatch of power
  • Renewable mandates
  • Wholesale market sales
  • O&M cost impacts
    • Changing Regulatory standards
    • Pension and OPEB funding
  • Outstanding debt
  • Capital Improvement program
    • Debt/Equity options
    • Financing alternatives
    • Debt restructuring

Whitebirch Solves for Public Power Utilities

Public power utilities are facing a daunting task of financial planning in a rapidly changing and unknown regulatory environment. While certain state regulatory landscapes take clearer form, federal regulations, including the Clean Power Plan, continue to evolve as legal challenges work through the courts, and changes to prior executive orders potentially alter the current compliance targets. Overlaying those uncertainties are advances in distribution generation that add difficulties to resource decision-making and long-term planning efforts.

PFM Solutions President, Brett Matteo, discusses PFM’s experience in the Utilities sector:
financial modeling software for public utilities
Solutions Specialist Rob McInerney discusses Whitebirch features for Public Power Utilities:
better financial decisions for public utilities