Generating cash from counterparty negotiations and process improvements

Non-energy invoices and particularly counterparty cost recovery for shared infrastructure can be an overlooked and under-appreciated area within any utility where the traditional focus rests on energy billing and collections.

Our team was able to uncover, validate, document, and collect on hundreds of millions of dollars of system maintenance on joint use equipment.

In many instances, these non-energy amounts were “found money” that had not yet been reflected on financial statements and served as an important and incremental source of funding for critical system investments. Further, when compared to the cost of third-party funding sources, this incremental cash created meaningful value for not only customers, but also shareholders.

AlixPartners further identified and enabled incremental value that could be sustained over time by addressing the root cause issues, negotiating future governance with counterparties and automating the supporting processes.