ESAI's power analysis provides an objective, independent view of the increasingly complex and dynamic deregulated power markets. Our clients realize that in order to stay ahead of the competition, they need access to the most innovative analysis and to be challenged by new ideas for opportunities within the industry. In order to carry out their due diligence, they need ESAI. Benefits of the power analysis include:

Regional focus - Targeted analysis of Northeast U.S. markets, including ISO New England (ISO-NE), New York ISO (NYISO), and PJM.

Pool, Zonal, and Nodal Pricing - With Locational Marginal Pricing (LMP) at the heart of FERC's Standard Market Design (SMD) rules, ESAI provides clients with forecasts for power prices at the pool-wide (or hub) level, but also at the zonal and nodal level, where our assessment of intra-pool, intra-node, and generator dynamics takes market analysis to a more granular level.

Market dynamics - Exploration and understanding of the distinct elements unique to each regional power market, including regulatory policies and rules, transmission system configuration, capacity markets, generation fuel mix, dispatch stack, and market liquidity in the ISO-administered, as well as over-the-counter (OTC) energy markets.

Power flow modeling - ESAI has developed it's own optimal power flow modeling capability, which utilizes a Power World™ flow model engine and proprietary economic inputs. Providing a richer analysis than a traditional dispatch stack/production cost model, power flow analysis is used to assess congestion, measure the system impact of capacity additions, outages, and loop flows, and determine locational pricing at the nodal and zonal levels.

Capacity assessment - ESAI's Capacity Watch provides a subjective evaluation of generation and transmission capacity project development. Each project receives a probability of completion weighting and the proprietary capacity outlooks are then used in power flow modeling. ESAI performs in-depth forecasts of capacity market clearing prices.

Access ESAI's July 2005 Capacity Watch as referenced in the PJM Report "Impacts of the PJM RTO Market Expansion"

Bidding behavior - Incorporation of generator bidding behavior into power price forecasting and flow modeling. Work includes identification and exploration of various bidding strategies across unit types - including base load, peakers, and hydro facilities. Analytics include Bidding Behavior Study of the New York Control Area.

Transmission economics - Understanding and modeling of transmission economics. Expertise includes dynamic transmission modeling through flow analysis, seams issues and inter-pool flows, congestion, and utilization of transmission rights.

Locational input fuel forecasts - Incorporation of ESAI's proprietary input fuel forecasts for natural gas, fuel oil, and other crude products. Natural gas forecasts include prices for Henry Hub, Transco Zone 6, TETCO M3, Algonquin CityGate, Malin, Sumas, SoCal, Waha, Permian, Kern.

ESAI's regular analysis includes short-term (weekly), medium-term (six month), and long-term (5-10 year) price and market outlooks. Click here for a complete listing of ESAI's regular reports.

Direct Access
ESAI clients have direct access to our experienced team of senior analysts -- considered some of the best experts in the energy industry -- who are recognized worldwide for their knowledge of electricity, natural gas, and petroleum markets.

Customized Solutions
ESAI also helps clients solve specific business problems through project work. These projects include risk management consulting, decision support, energy project evaluation, and litigation, arbitration, or regulatory support services.

Studies, Reports, and Articles
Aside from its regular publications, ESAI also performs research and analytical work via multi-client studies, occasional memo reports, and industry articles. Multi-client studies are meant to explore major issues and developments facing the industry, one example being a cost-benefit analysis performed for the Midwest ISO. Occasional memos are timely assessments that are meant to provide our clients with insight and interpretation of recent market developments. ESAI analysts publish industry articles regularly and are considered to be among the market's leading experts in energy analysis.

For more information on ESAI's power services, please contact Thomas Sutro at 781.245.2036 or tsutro@esai.com