BURLINGTON, Mass., Nov. 27, 2001 — XENERGY is hosting an interactive exchange for electric utility members to explore the future of the electric distribution business as part of its “Crossed Wires: Scenarios for the Future of the Distribution Business.”
This multi-company assessment of what lies ahead for regulated distribution companies will provide a framework for examining the future and for addressing the risks and opportunities that will arise.
While the early years of industry restructuring have focused on designing wholesale markets and launching retail markets, the distribution function faces the most complex challenges. Challenges related to provider-of-last-resort obligations and reliability have tested the risk tolerance, operating performance, and financial strength of some venerable companies.
Crossed Wires is designed as a meeting of the minds about the great uncertainty distribution companies now face. Who would have been able to forecast the extreme upheaval of 2001’s energy markets, with the bankruptcy of the country’s largest utility and the collapse of the largest energy trading company and advocate of restructuring?
According to Bruce Humphrey, XENERGY vice president, “Many more threats will be surfacing within the next few years that will have a major effect on the structure and earnings of distribution companies.”
“Even functions such as service connections that have traditionally been routine now have implications for service pricing and financial performance,” said Humphrey. “It is not clear that all of the distribution strategies being pursued today will stand up well to the business and regulatory environment ahead.”
Crossed Wires is a unique and timely opportunity to interact with industry experts and peers to test ideas about the future of electric distribution and is being led by Bruce Humphrey and Ron Davis of XENERGY. Please contact Bruce Humphrey at (781) 273-5700 for more information.
XENERGY (www.xenergy.com) is an energy consulting, information technology and energy services firm headquartered in Burlington, Massachusetts, with offices across the United States and in Canada.
The company offers consulting services on a wide range of energy issues, and works with utilities, energy service companies, industrial and commercial customers, institutions and government agencies. Founded in 1975, XENERGY is a wholly-owned subsidiary of KEMA Consulting.