Reliable and well-designed projections of electricity market prices are often the basis for many analyses utilities rely on for critical decision making. Our experts utilize market simulation tools to forecast both expected power prices and future market conditions as well as risk scenarios with logical combinations of alternative outcomes for key drivers, from which we apply financial valuation techniques to assess the operating characteristics and costs of plants. Similarly, clients depend on our market simulation modeling of price forecasts and volatility to determine the optimal timing and size of transmission projects. Our simulation of market prices also includes the impacts of renewable generation projects or potential transmission constraints on locational prices. We have also supported utilities seeking stranded cost settlements requiring credible projections of future market prices based on projected fuel prices and environmental compliance costs.

We also develop forecasts of Renewable Energy Credit (REC) prices across multiple states. This analysis considers state-level Renewable Portfolio Standard (RPS) requirements over time, as well as potential federal renewable requirements, looking at the cost and geographic availability of several potential renewable resource types and incorporating the effect of in-state requirements and alternative compliance payments. Similarly, we also develop forecasts for carbon prices and other environmental compliance costs.