Asset management

Line Dividing Regulation and Management

Utility performance, investment versus dividends, rate of return incentives

Generally speaking, regulatory commissions and courts are not anxious to substitute their judgement for that of utility management. A recent example where state regulators found it prudent to gingerly cross the line can be seen in a recent case involving Indianapolis Power and Light Company.

Growth Through Productivity

Enterprise Management: Taking a wider view of asset management.

Utility executives today see few choices if they wish to achieve growth. Better scheduling can improve overall productivity by 10-15 percent, offering the potential for growth. Yet it is not sufficient simply to focus narrowly on work execution in the field.

Business Model Mashup

Three ‘power plays’ for utilities seeking growth.

Threats to the utility business model mean that it’s time to make choices about future growth to protect cash flows while investing in new ventures.

Managing Assets is Not Asset Management

The real thing demands a culture shift toward long-range thinking.

Rather, it involves a culture shift: towards a broader view to encompass such business processes as life-cycle planning, performance analysis, and the entire value chain.

Taking Digital to Scale

Eight key ‘plays’ to alter how work is managed and performed.

Adopting digital capabilities to transform operations and processes holds immense promise for utilities. Indeed, it’s the best path to growth.

Appendix: Opening the Black Box

 

 

Appendix:

Mathematical Structure of the Methodology

In this appendix to “Opening the Black Box,” (Fortnightly, January 2014), we briefly describe the basic components of the models for managing aging assets: how to represent the condition of such assets and the outcome of replacement, maintenance, and testing decisions.  

Opening the Black Box

A new approach to utility asset management.

Creating a dynamic statistical approach to designing an overall strategy for utility asset management.

M&A Value Creation: Combating the "Winner's Curse"

Significant value waits to be unlocked through consolidation, but conventional approaches have been inadequate.

Can consolidation create sustainable long-term value, or will it prove seductive but, ultimately, disappointing to shareholders, employees, customers, and management alike?