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Utility Financial Modeling: Spreadsheets Can Deliver Results (point of view)

Financial and regulatory analysts working at utilities understand the need for utility-specific models as the unique challenges of utility forecasting cannot be shoehorned into a model built for other types of businesses. No other industry requires the type of logic needed to translate forecasts of expense, revenue and capital investment into an integrated whole while providing insight into the business. Whether its earnings forecasts for investor-owned utilities or financial metric analysis and rate forecasts for public and cooperative entities, forecast groups must provide models that generate reliable and defensible answers. Modeling for utilities is complex, leading some analysts to believe that the complexity does not lend itself to spreadsheet modeling. But advances in technology and modeling practices make spreadsheets a superior choice for both accuracy and flexibility.

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