Competitive Power Solicitations

Assuring Fairness, Efficiency, and Transparency

Robust, competitive solicitations are predicated on bidders' confidence in the integrity of the procurement process. LAI is a national leader in providing procurement design and oversight assistance to ensure that state commissions and utilities can bank on the objectivity, fairness, and transparency of the procurement process. We have established a track record of success in facilitating solicitations for power, transmission, and gas products, both physical and financial in nature. On behalf of state entities, LAI helps design and implement the procurement process in accord with best industry practice, including the establishment of robust evaluation protocols and metrics. IMPLAN related socio-economic analysis of direct, indirect and induced economic impacts may be an applicable part of the economic benefit/cost analysis. We assist buyers with developing commercial terms for long-term contracts, including credit and collateral requirements. In a primary or oversight capacity, we have been responsible for website security and administration to safeguard the integrity of the procurement process. We develop and apply risk versus reward optimization tools to assist in selecting offers that best balance least cost and risk mitigation objective while satisfying various physical and financial constraints. In support of petitions by utilities before state commissions for contract approval and rate recovery, LAI testifies to the fairness and efficiency of the solicitation results.

LAI has become one of the leading providers of technical support services for offshore wind procurement. Our consultants understand wind project performance and transmission issues, and how contract structures can appropriately share risks of uncertain performance and transmission interconnection costs. We have served as the lead consultant or as an advisor for states' efforts in Connecticut, Maine, Massachusetts, Maryland, New Jersey, and New York. LAI has helped state agencies design robust price-based and non-price selection criteria to help states meet goals to minimize cost, maximize economic development, and identify the most viable projects. We have developed sophisticated financial modeling and power market simulation tools for evaluating and scoring offshore wind bids. Similar tools and competencies have also been utilized to support procurements of onshore renewables and conventional generators such as nuclear power.

We have also monitored electric utilities' procurement of power for retail customers on behalf of utilities and state commissions and supported procurement of power and gas for large end users. From coast to coast, our procurement experience has resulted in technical innovation and informed decision making to support the procurement of conventional, renewable, and financial products in strict accord with standards of professional excellence.

Our competitive procurement advisory services include:

• Auction design and product definition
• Procurement administration, oversight, and independent assessment
• Supply portfolio risk management and optimization
• Management of bidder communications
• Document control and website security
• Development of price and non-price metrics
• Contract negotiation support
• Optimal selection of offers given target quantities, temporal considerations ("buy now versus buy later") and contingent bids
• Credit standards and collateral requirements
• Benchmark price development