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Energy Services Outsourcing: Opportunities And Challenges
Energy Services Outsourcing: Opportunities And Challenges
Public Utilities Reports, Inc.

Energy Services Outsourcing: Opportunities And Challenges

Regular price $79.00 $0.00
In Energy Services Outsourcing: Opportunities and Challenges, two seasoned industry professionals take an in-depth look at this source of new products for utility and energy companies.

Although most ESO applications today focus on energy delivery and energy management, the potential for services ranges from a limited IT project to a complex internal communications network to a "virtual" company with all energy-related infrastructure outsourced.

This comprehensive book highlights the best markets to target for ESO, examines the expertise and resources most valued, and discusses the role for regulation. It also points out how to avoid the potential pitfalls of being an ESO provider.

Details and Features:

AUTHORS: DR. MICHAEL SCHMIDT and DR. DANIEL DURAN

AVAILABILITY: This title usually ships within 1 to 2 weeks.

ISBN: 978-0910325-9-05
11 x 8 x 0.5 inches
Hard cover, spiral bound
149 pages

Table of Contents:

CHAPTER 1 - INTRODUCTION
Energy Industry Restructuring/Unbundling
Energy Services Outsourcing
Benefits
The ESO Lifecycle
Three Ways of Looking at ESO
The ESO business
Rationale and History of Outsourcing
ESO Products and Services/Providers
ESO Models
ESO Applications/Options for Utilities
ESO Products/Services for Commercial and Industrial End-Users
Emergence of Regional Energy Entities
Value Added
Common Myths and Realities of ESO
The Role for Regulation
Regulatory/Legislative Incentives
Regulatory/Legislative Impediments
CHAPTER 2 - INFORMATION MANAGEMENT, METERING, BILLING SERVICES, AND E-COMMERCE SERVICES
Energy Information Systems and Their Management: A Key to Success
Utility-Based Information Management Systems
New Services
Metering Services
Metering Technology
Bill Auditing and Rate Analysis
Rate Tariff
Billing Characteristics
Role of the ESO Provider
Utility Impediments
Regulatory Issues
Embedded versus Marginal Cost
Real-Time Metering
Recommendations
CHAPTER 3 - RATIONALE AND STRATEGIES FOR UTILITY OUTSOURCING
Why Utilities Outsource
Financial Pressures
External Market Forces
Customer/End-User Forces
Identifying Core Utility Business and Competencies
What Utilities Have Outsourced—or Could
Information Technology
Customer Call Centers and Service
Billing and Metering
Transmission and Distribution
Payroll and Other HR Functions
Criteria Used to Make Outsourcing Decisions
Lessons Learned from Utility Outsourcing
Case Study: Puget Power - T&D ESO
Antitrust Issues
Case Study: Trigen Antitrust Suit
The trial Court Verdict
The Appeal
Implications of the Appeals Court Decision
Appeal to the U.S. Supreme Court
Recommendations
The Role for Regulation
Premium Services
Utility Restructuring
Utility Outsourcing from an Affiliate
Performance Based Ratemaking
Ratebase/Rate of Return Model
CHAPTER 4 - RATIONALE AND STRATEGIES FOR COMMERCIAL AND INDUSTRIAL CUSTOMER OUTSOURCING
Sample Segment Targets and Profiles
Private Health Care
Universities
Government
Technology Sector
Commercial Real Estate
Food Processors
Risk
The Utility as an ESO Provider
Case Study: Edison Carrier Solutions
Outsourcing Frame of Reference for Operations
Evolution of Carrier Solutions
Regulatory Concerns and Approval
Value Proposition for Edison Carrier Solutions' Customers
Lessons Learned
Customer Risk of Ownership
Commodity Risks
Supplier Risks
Capital Constraints for Customers
Risks for ESO Providers
Long-Term Contracts
Marketing Risks
Credit and Settlement Risks
Technological Obsolescence
Regulatory Risks
CHAPTER 5 - CONTRACTING FOR ESO
Evaluation
Scope of Services
Service Levels
Pricing
Control Provisions
Management
Exit Rights
Summary
Recommendations
CHAPTER 6 - COMPETITION IN ENERGY COMMODITY SERVICES
Electric Commodity
Competition from Alternative Suppliers
Emergence of ESCOS and Energy Advisors
Types and Roles of Aggregators
Municipalization
Financial vs. Physical Deals
Impact of Direct Access on Customer Classes and Serving Utilities
Services
In Power Block Pricing
Peak Reduction
Hedging
Forwards
Swaps
Options
Extraordinary Reliability
Real-Time Pricing
Demand-Side Management
Price Response Load Programs
Natural Gas Commodity
Natural Gas Industry Structure
Changes in Federal Policy
Choice of Business Partners for Suppliers and Markets
Individual Rules for Pipelines and Utilities
Selling Natural Gas
Buying Natural Gas
Transporting Natural Gas
Local Distribution of Natural Gas
Accounting for Natural Gas
Pricing
Recommendations
CHAPTER 7 - THE REGULATORY ENVIRONMENT
Regulatory/Legislative Incentives
Regulatory/Legislative Impediments
Stranded Investment Recovery
Licensing Requirements/Retail Access Rules
Affiliate Rules
Retail Price Capping
Price Capping in the Wholesale Market Structure - The California Situation
Default Service
Utility Retains Default Customers
Default Customers Transferred to Another Supplier
Default Service Awarded Based on Revenue Bids
Default Service Awarded Based on Price Bids
Exit Fees and Competition
Green Power Requirements
Compliance Filing Requirements
Consumer Protection and Billing
Transmission Bottlenecks
CHAPTER 8 - DISTRIBUTED GENERATION
Definition
Identifying and Quantifying DG Applications
Technical Factors
Micro-turbines
Cogeneration
Reciprocating Engines
Combustion Turbines
Typical Product Offerings
Regulatory/Legislative/Incumbent Utility Incentives
Regulatory/Legislative/Incumbent Utility Impediments
Stand-by Services
DG/Utility Technical Interface
Recommendations
Need for Standards
The Stand-by Tariff
Role of the Distribution Utility
Role of Regulation
CHAPTER 9 - ASSET MONETIZATION/ASSET SERVICES
Purchase/Replacement
Common ESO assets
Case Study: The Venetian Hotel and Casino
Advantages to Customer
Top Ten Reasons to Outsource Energy Operations
Disadvantages to Customer
Advantages to ESO Provider
Disadvantages to ESO Provider
Sample Asset Monetization
Asset Monetization
Cogeneration/Related Power Marketing
Other Energy Conservation Opportunities
Energy Information/Invoice Management
Energy Procurement Management
Natural Gas
Electric
Operations Maintenance
CHAPTER 10 - FACILITY SERVICES
Typical Services
Energy management
Carrier Corporation
Kwery Corporation
KW Aware
Powerweb Technologies
Advantages to Customer
Disadvantages to Customer
CHAPTER 11 - CONCLUSION
Customer Value Proposition
Distribution Utilities
C&I Applications
Regulatory Issues
The Future
The Utility
The C&I customer
The Regulator