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BSA Gas and Electric Utility Support
| BSA provides a portfolio of strategy,
analysis and advisory services to clients in the energy sector. We
help clients understand and respond to drivers of change in the energy
industry. We believe that we must embrace unbridled change as an ally.
Changing conditions generate many opportunities- but the opportunities
must be seized. Clear vision, leadership, and execution bring success
to the new energy enterprise under the new emerging environment. BSA
has worked with several gas and electric utilities and supported them
with addressing issues that included market growth, organization
design, mergers & acquisitions, diversification, gas acquisition and a
myriad of operational concerns. BSA has addressed
the following issues in this work:
 | We provided support to a major gas utility in analysis of the
economics of a major expansion of its gas pipeline network. Major
changes in natural gas infrastructure has a long-term impact upon
gas pricing and basis within the region by fostering structural
economic changes that filter down to ratepayers. We have
documented such changes in a number of client assignments for energy
utilities, and have provided expert testimony along these lines in
state and federal regulatory proceedings.
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| Our electric utility clients have examined diversification into
unregulated energy businesses with our assistance. These have
included getting into the propane business as a precursor to
entering gas distribution business, energy marketing and unregulated
operational services. Diversifying into other energy businesses and
providing additional services to the existing customers can be an
effective way to strengthen relationships with existing customers
and maintain their loyalty.
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| BSA has performed due diligence evaluation on several gas
distribution companies as part of their acquisition. These have
included detailed examination of existing and projected markets and
the contractual arrangements for gas acquisition, transportation and
storage to serve them. We have also made comprehensive evaluation of
physical assets of the acquired utility with particular emphasis on
the integrity and safety of the gas distribution system. Our
evaluation has examined any latent environment-related liabilities
such as former gas manufacturing plant sites.
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| Seeking new franchises for unserved areas, as opposed to
acquisition of an existing utility, is often a viable option to
diversify into gas distribution business. Towards that end we have
examined the regulatory conditions and requirements in the area of
interest to our clients and developed strategies for winning the new
franchises. We have also evaluated competing franchise applications
for new gas distribution franchises and advised on strategies to
establish competitive advantage.
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| Finding and serving an anchor customer that needs gas and then
serving other markets off of the anchor’s gas distribution system is
yet another way to diversify into gas distribution. BSA has helped
its clients with the pursuit of this option by researching the
market area for gas growth potential and examining the options and
economics of serving them.
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| We have used our expertise and decades of experience in the gas
supply management area to help several clients with the development
of optimal gas acquisition and transportation portfolio.
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| Our colleagues are senior and seasoned professionals who have
leveraged their broad and diverse background to educate several
international gas utilities on the revolutionary regulatory changes,
the resultant new commercial ways of conducting gas business, and on
organizational and operational practices in the gas industry in the
United States.
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| As part of energy reform processes in
Eastern Europe, BSA has examined the feasibility of upgrading the
physical integrity of distribution systems as well as identified
organization design options for gas utilities in former Soviet Union
countries towards the privatization and commercialization of these
utilities. |
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Benjamin Schlesinger and Associates, Inc.
The Bethesda Gateway
7201 Wisconsin Avenue, Suite 740
Bethesda, MD 20814
(301) 951-7266
Fax (301) 951-3381
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