LEI has an extensive array of experience creating integrated wholesale electricity market simulations to identify beneficiaries and quantify the costs and benefits from proposed transmission lines. In addition to our array of proprietary quantitative models, LEI’s staff has in depth industry experience across North America, with a strong focus on the United States and Canada. LEI’s also has testified for state policymakers, regulators, and siting organizations on transmission rate-setting, and transmission policy design.

Valuing Transmission: LEI combines fundamental economic and statistical analytical expertise with an exhaustive knowledge of electricity markets to create meaningful simulations of investment impact using a suite of proprietary integrated wholesale electricity models. Our Valuation of Transmission Augmentation Links (ViTAL) modeling framework was specifically designed for regulators and transmission system owners and operators. Other tools employed in our cost-benefit analysis include our network simulation model, PoolMOD which is used to forecast electricity prices and quantify benefits of new transmission capacity. In addition, LEI provides advice and analysis related to the valuation of congestion contracts across North America using real options coupled with PoolMOD.

Transmission Tariff Design: LEI has significant global experience in analyzing transmission market rules and developing new transmission tariffs, assessing demand elasticity, and undertaking comprehensive market analysis for transmission companies and regulators.

Procurement Process and Contract Design: LEI applies fundamental economic principles and an exhaustive knowledge of electricity markets to help governments, regulators, and private companies create effective, rational, and transparent procurement processes including competitive solicitations for transmission capacity. LEI’s support for procurement processes includes proposing selection criteria, drafting contracts, publicizing the procurement, communicating with stakeholders, monitoring the opening and examination of bids, creation of an analytic and modeling framework to evaluate bids.