As regulators seek to ensure that competitive procurements are truly “least-cost,” they have been confounded by the financial impacts of long-term purchase contracts on utilities’ balance sheets.
Whereas some ratings agencies and regulators have assigned arbitrary risk “adders” to account for the leverage impacts, informed resource choices can only be made using empirically-based comparisons between the financial risks to utilities from long-term contracts and the risks from own-resource development.
Bates White professionals have developed stochastic models to comprehensively assess these financial risks, which ensures that resources generated from all sources are evaluated in an equivalent manner and that consumers are provided with least-cost electricity options.
