Client Stories

A Large Integrated Utility Achieves Cost Reduction Through Risk-Informed Budgeting

A large integrated utility in the Southwest was challenged to limit electric rate increases to 2% per year and to further keep electric bills in the bottom 50% of all electric utilities in the state. With significant O&M cost reduction as the goal, the chief operating officer approached MCR for help. MCR identified a total of $15 million in O&M savings opportunities, enabling the client to meet its affordability goals.

A Top 10 Integrated Utility Achieves Cost Reduction Through Risk-Informed Budgeting

A utility sought a sustainable methodology to provide visibility into cost drivers, incorporate risk valuation, maximize the value of each budget dollar, and help management ensure credible budget targets for the future. MCR’s extensive risk-informed budgeting experience helped the client identify $99 million in O&M savings opportunities and meet its cost targets.

Updating a Unit of Property Catalog for a Large Utility

MCR partnered with a large utility to modernize its unit of property catalog amid complex accounting of aging asset replacements. MCR successfully reduced catalog complexity, improved capitalization flexibility, and identified an annual shift of about $40 million from O&M to capital spending.

Planning a Coal Plant Decommissioning, Demolition, and Site Remediation

A large generation owner engaged MCR to develop a defensible financial forecast to retire a multi-unit coal-fired plant. MCR integrated unit retirement timing, an updated five-year O&M budget, new demolition estimates, and environmental remediation strategies into a financial plan to support decision making and ARO accounting. MCR’s work provided the client a clear road map for decommissioning, demolition, and site remediation with quantified cost and risk trade-offs.