When legislative leadership meets next week, it will choose among three bidders for a study that will examine the state’s rising utility rates.
Statehouse sources this week confirmed that these three firms have responded to requests for proposals to do the study:
- London Economics International of Boston.
- Energy and Environmental Economics of San Francisco
- Energy Ventures Analysis of Arlington, Va.
It was unknown how much the firms priced the study, which some fear could be much more than the approximately $1 million that was estimated earlier this year.
Some lawmakers have expressed concerns that the compressed timeline for completing the study – the first phase must be done by early January – will drive up the cost.
Here is a little background on each of the firms bidding on the study. They will be reviewed by legislative leadership Monday.
London Economics International
The firm sells itself as a “global economic, financial, and strategic advisory professional services firm specializing in energy, water, and infrastructure.”
The company, led by president A.J. Goulding, says it has expertise in the economic and financial issues related to the power, gas, and water. Its work includes a study in Hawaii of different models for utility ownership and regulation.
The company also did consulting work that examined the benefits of transmission line across Maine that would connect Canadian hydropower to electricity customers in Massachusetts.
It also did a study for the New York Energy Consumers Council that examined how limits on fossil fuel use and total energy use for New York City buildings would affect electric rates.
The firm also studied ways for Hawaii to reach its 100% renewable portfolio standard.
Founded in 1997, the firm is based in Boston, but also has offices in Los Angeles, Toronto, London, Paris and others abroad, according to Bloomberg.
The firm’s clients include the electric, natural gas, water, telecommunications, transportation, and renewable energy industries as well as independent power companies.
Energy and Environmental Economics
The San Francisco firm was founded in 1989. It portrays itself as “a fast-growing energy consulting firm that helps utilities, regulators, policy makers, developers, and investors make the best strategic decisions possible as they implement new public policies…”
It’s work has included a study that examined the financial impact of newly-constructed, all-electric homes when compared to houses powered by gas. The study concluded that a transition to all-electric homes and away from gas could save residents $130 to $540 a year.
The company’s clients include an array of investor-owned utilities such as Kansas City Power & Light, Consolidated Edison, Oklahoma Gas and Electric Co., New York State Electric and Gas Corp., Southern California Edison and Pacific Gas and Electric Co.
Bloomberg reports that the company specializes in emerging technology strategies, resource planning, transmission planning and pricing, cost of service and rate design.
The company’s expertise areas also include renewables and emerging technologies, energy efficiency as well as energy and climate policies.
Energy Ventures Analysis
The firm – founded in 1981 – bills itself as a “boutique world-class energy consulting firm” that offers “in-depth knowledge and expert energy consulting services to clients in the electric power, natural gas & oil, coal, environmental and renewable energies.”
It’s work included a 2018 study done for the mining industry that found the cost of Indiana moving to natural gas power plants would be more costly than keeping coal plants running. Here’s coverage of that study from Terre Haute Tribune-Star.
Earlier this year, the company’s president, Seth Schwartz, testified on behalf of the coal industry in favor of a “pause” on plans to shut down coal plants in the state.
The company also did a study in 2018 for the Independence Institute – described as a Libertarian think tank – that examined the impact of expanding Colorado’s renewable energy portfolio standards to 100% in 2040 from 30% in 2020.
In 2019, Forbes ranked the company as one of the country’s best management consulting firms. The company received the same rating from Forbes in 2018 and 2017.
The Kansas Legislature this year authorized the utility rate study to examine why the state has the highest rates among its Midwestern neighbors.
The study, approved by the Legislature this session, will be broken down into two segments.
The first part must be completed by next Jan. 8, and the second half must be done by July 1 of next year. The study will deal with different issues in each segment.
The study is estimated to cost about $1.1 million, although there has been some concern that the price will come in higher because of the tight timeline approved by the Legislature.
