Accenture helped electric utility FirstEnergy develop its cash flow improvement program that is expected to help deliver $453 million in cost savings over the next three years.
The project, currently being implemented, was launched in April 2015 to capture both immediate and long-term savings to help drive competitiveness and improve the agility of operations.
With the support of Accenture Strategy, FirstEnergy conducted a 12-week analysis of savings and operational improvements that focused on cost savings in supply chain, finance, customer care, transmission and distribution and power generation.
The program is an enterprise-wide effort to help improve cash flow through reduced expenses in both company operations and the generating fleet, with a particular focus on sub-critical fossil-fuel power plants and lower fossil fuel and fuel-related commodity expenses. Employee attrition across the company and a more selective hiring program also are helping drive cost savings.
The project identified more than 100 cost-reduction opportunities, with about 65 percent of the savings expected from lower operating expenses and 35 percent from lower capital expenditure and nuclear fuel expenditure improvements over a three-year period.