CRA supported Jersey Central Power and Light (JCP&L) in reviewing responsive options to reforms in the PJM capacity market, which threaten to lead to over-procurement and increased costs to ratepayers. CRA’s analysis, filed with the New Jersey Board of Public Utilities, was designed to inform JCP&L in understanding the economic and administrative considerations with certain responsive options, including a particular proposal put forth by other stakeholders. CRA experts also put forth an alternative capacity procurement “straw man” proposal that accounts for prevailing participant incentives and will support cost effective outcomes for New Jersey customers. CRA’s analysis included total and distributional cost issues, procurement considerations, market power, and risk management.
Seeing what sellers miss—a constructive approach to utility M&A in an age of increasing uncertainty
CRA’s Jim McMahon highlights how consolidation in the utility sector is accelerating due to increased uncertainty and the influx of private capital, but the...