Supporting the participation of energy efficiency programs and demand response providers in wholesale markets through market rulemaking proceedings
Assessing the overall costs and benefits of ISO and RTO structures
Synapse’s participation in New England’s conversion to an RTO structure led to the creation of the Alternative Resources Sector, a voting block within NEPOOL that is populated by renewable generators, distributed generation, demand response, and energy efficiency providers.
Price Forecasting & Market Analysis
Price forecasting plays a crucial role in planning and project development in the electricity markets, as well as in asset valuation, contract dispute resolution, and projecting the impact of proposed market regulations and infrastructure investments. Synapse’s work in this area stands out due to our attention to market fundamentals, our in-depth treatment of regulatory trends—including our treatment of carbon dioxide and other emissions costs—and our ability to apply the most appropriate forecasting tools for any given project. Our services include:
Producing electricity price forecasts in support of long-range planning exercises
Performing detailed scenario analysis on electric energy and capacity markets, including transmission constraints, cost-based or strategic bidding, and analysis of proposed regulations
Reviewing price projections for regional electricity markets to evaluate utilities’ stranded cost estimates, project future electricity generation costs, evaluate demand-side management investments, and assess the rate impact of renewable portfolio and energy efficiency standards
Generating Asset Valuation
Determining the value of generating assets and power contracts is an important aspect of property tax assessment, evaluation of asset transactions, and utility ratemaking (including stranded cost rate treatment). Our asset valuation work often includes simulation modeling and market price forecasting. Our services in this area include:
Identifying and quantifying all projected sources of revenue and cost
Determining the value of generating assets and purchased power contracts
Estimating the magnitude of stranded costs
Developing analysis and recommendations with respect to the appropriate regulatory treatment of stranded costs and gains
Market Power & Mergers
Synapse analyzes market power in the context of wholesale electricity market restructuring, energy company mergers, and antitrust investigations. Our team of experts conducts quantitative studies using models such as PROSYM. We also review market power analyses filed by others, and we assist clients with negotiations involving market power monitoring and mitigation procedures.