Evaluation of electricity pricing sensitivity to an aluminum smelter

In a study for a large producer of aluminum, CRA evaluated the sensitivity of electricity pricing and contracting arrangements to an aluminum smelter. CRA provided a “bottom-up” estimate of likely operating economies. As part of the study, CRA analyzed the smelters’ cash operating costs based on electricity pricing information available publicly, made an engineering evaluation of the curtailment in production associated with various degrees of electricity demand reduction, and estimated the associated loss of profit.