STATE AND PUBLIC ENTITIES

We have provided a range of services for state and local entities including in-depth market studies, and various implementation activities related to energy policy (e.g., renewable portfolio requirements and industry restructuring). Additionally, we have helped cities and townships in property tax proceedings, assisting professional appraisers.

WHO WE SERVE

California Bureau of State Audits
Following the California energy crisis, we assisted the BSA with a statutory audit of the Department of Water Resources (DWR’s) power procurement program, including $43 billion in long-term contracts and over $10 billion in short-term contracts and spot market transactions. We reviewed DWR’s procurement process, contract management, economic analysis, and portfolio planning associated with its contracts and helped BSA prepare its audit report.

City of Philadelphia
The City of Philadelphia hired La Capra to provide technical assistance and economic analysis regarding the tax proceeding of the Susquehanna Nuclear Station, a 2,100 MW facility. The City was an intervener in the property tax proceeding and relied on our general advice regarding the appropriateness of assumptions and how their professional appraiser should structure the economic analysis.

La Capra critiqued the appraisals submitted by the taxing district and other intervening parties, focusing our efforts on income and replacement cost valuation methodologies. We also submitted a written report regarding stranded generation costs to the plant owner, which was supported in oral testimony.

Connecticut Clean Energy Fund
In 2003, the Connecticut Legislature enacted revised RPS requirements, including a requirement that the state’s electric distribution companies enter into at least 100 MW of long-term contracts with renewable energy generators by 2007. These projects must also be financially supported by the CCEF.

In 2004, we were engaged to assist the CCEF in reviewing the contracting process, associated regulatory policies, and various implementation details. This work resulted in testimony before the Connecticut DPUC and provides the foundation for the CCEF implementation approach as this program unfolds.

Massachusetts Technology Collaborative
The Massachusetts Technology Collaborative (MTC) supports potential new renewable generating projects through a range of commercial means (e.g., primary and secondary loans, grants, purchases of and options for Renewable Energy Certificates). We have assisted MTC in many of its implementation programs, including due diligence assessments, review of renewable energy project proposals, and market studies.

We assisted MTC with due diligence and associated negotiations for proposed loans to several renewable generation projects that are now operational. In this effort, we reviewed the key components of the projects, assessed expected performance, and suggested ways to improve the transaction structure for MTC.

La Capra provided advice and analysis for the MTC in connection with the design and implementation of their recent Request for Proposals for long-term REC contracts. This included collaboration on the RFP bid package. Our team simultaneously developed a conceptual and quantitative assessment concerning the cost and benefits of long-term contracts for RECs and the associated energy including market risk considerations.

We have also conducted renewable energy impact studies on the wholesale and emissions markets in New England and estimated the cost of the Massachusetts RPS

New York State Energy Research and Development Authority
La Capra Associates has participated in studies and implementation plans involving New York’s Renewable Portfolio Standard (RPS) and the Regional Greenhouse Gas Initiative (RGGI).

Most recently, in collaboration with Sustainable Energy Advantage, we analyzed the cost of meeting New York’s proposed RPS. The process included screening renewable technologies that could potentially be implemented in New York and the surrounding areas and creating a database of potential renewable supply. From this, we constructed a detailed renewable supply curve that captured both cost and quantity of renewable resources to estimate which technologies were most economic to meet the RPS requirement and to project the cost of compliance.

La Capra provided expert testimony regarding the RPS report in a proceeding before the New York Public Service Commission. We are also advising NYSERDA on various implementation issues.

RGGI is a cooperative effort by nine states ( Delaware, New Jersey, New York and the six New England states) to discuss the design of a regional cap-and-trade program initially covering carbon dioxide emissions from power plants in the region. NYSERDA has lead responsibility for directing various aspects of the energy resource modeling.

La Capra developed the renewable energy inputs including available resources and costs for the model. La Capra's work has included detailed review and analysis of resource and cost information for the nine states, plus Maryland, Pennsylvania, West Virginia and several of the eastern Canadian provinces. The forecast covers the period 2005 to 2020 and includes analysis of the demand created by various renewable portfolio requirements.