Dec. 7, 2012 - City selects financial advisors, engineers to assist with municipalization research
Andrew Barth, Energy Future, 303-441-1937
Sarah Huntley, Media Relations, 303-441-3155
City selects financial advisors, engineers to assist with municipalization research
Representatives from the chosen firms will brief council Dec. 11
The City of Boulder has selected industry experts in the areas of finance and engineering to assist in the ongoing efforts to consider the possible creation of a city-owned electric utility.
Public Financial Management, Inc. (PFM) will advise the city on financial matters related to municipalization, including cost modeling, rate projection and bonding scenarios. Two engineering firms – Exponential Engineering Company and Schneider Electric – have agreed to work together to advise the city about optimal ways to separate Xcel Energy’s distribution system from the assets a city utility would need, as well as the engineering and technical steps the city would want to take to operate the “utility of the future.” Schneider Electric’s work product will include the development of a “best practices” manual that is designed to help the city provide reliable energy within a variety of customer groups as a service rather than a commodity.
“The focus of the utility we are considering is significantly different from those of most electric companies operating today, and we couldn’t be more pleased with the level of expertise we have assisting us,” said Heather Bailey, executive director of energy strategy and electric utility development. “Any decision we make will be aided by valuable input from these professionals, as well as the dedicated and diverse community members who are volunteering their time to vet our assumptions and ensure that we are weighing all of the critical factors.”
The contracts signed with each of these companies provide for maximum budgets for the first phase of work as follows: PFM, $70,000; Exponential Engineering Company, $120,000; and Schneider Electric, $40,000.
Representatives from PFM and Exponential are planning to attend a City Council study session on Tuesday, Dec. 11. The meeting is scheduled to start at 6 p.m. in Council Chambers, 1777 Broadway. The consultants will make brief presentations and answer questions from the city’s elected officials.
The PFM Group of companies, including Public Financial Management, Inc. and PFM Asset Management LLC, are national leaders in providing independent financial advice as well as investment advisory, management and consulting services to local, state, and regional government and non-profit clients. PFM’s Public Power Group has worked on more public power transactions than any investment bank during the past ten years and their clients represent some 75% of the national public power population. The professionals on PFM’s core team working with the city have spent their entire careers in public finance and include former CFOs, investment bankers, and rating agency analysts with a total of more than 70 years of experience. As a firm, PFM has completed nearly $84 billion in public power financing transactions since 1984. Public Financial Management, Inc. is a registered municipal advisor with the SEC and the MSRB under the Dodd-Frank Act of 2010.
Exponential Engineering Company (EEC) is a full-service power engineering consulting firm with a commitment to lasting relationships with clients and employees. Since 1993, EEC has provided professional electrical engineering consulting to Rural Electric Associations, municipalities, industrial and commercial facilities, other architect/engineering firms, and government entities as well as private citizens. From four offices located in Colorado, EEC engineers and technical staff complete design projects that extend across the country. With 10 licensed professional engineers, EEC brings diverse expertise to every project. The 30 employees of EEC are proud of the company they have helped to build, and are excited to celebrate the 20th anniversary of the company in January of 2013.
About Schneider Electric
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in Utilities & Infrastructures, Industries & Machine Manufacturers, Non-Residential Buildings, Data Centers & Networks and Residential. Schneider Electric provides energy management and sustainability services across all market segments. Leading companies to cost-effective strategies by providing energy procurement, sustainability consulting, energy efficiency, energy risk management, and rate analysis and demand response services. Managing more than $30 billion in annualized energy spending for more than 4,500 clients and thousands of facilities worldwide. Focusing on making energy safe, reliable, efficient, productive and green, the company's 130,000 plus employees achieved sales of about $26 billion in 2011, through an active commitment to help individuals and organizations make the most of their energy.
City staff is hoping to begin sharing strategy recommendations with the community and council in the first quarter of 2013. For more information about the Energy Future project, please visit www.boulderenergyfuture.com.
Last Updated on Tuesday, 11 December 2012 10:27