Procurement Design, Implementation, and Independent Administration

LEI applies relevant economic principles and its exhaustive knowledge of electricity markets to help governments and companies create effective, rational, and transparent procurement processes. Our support for procurement processes includes proposing selection criteria, publicizing the procurement, communicating with stakeholders, monitoring the opening and examination of bids, creating an analytic framework to evaluate bids, and developing supporting models to compare present values of various options proposed.
LEI has served in varied roles related to procurement, including designing procurements, administering them, serving as an independent evaluator, and auditing results. These skills can be deployed both for procurement of power under contract and procurement of actual generation plants, as well as for processes involving commodities other than power, such as transmission. For example, our team designed and ran a number of transmission-related open solicitations.
LEI was hired by a US public utility to oversee the Transitional Standard Offer (TSO) auction by an electricity provider. The scope of the project included approving the Request for Proposal (RFP) and communication protocol, participating in all bidder calls and negotiations, analyzing the New England market and developing scenarios for likely bids, and auditing the utility’s decision-making process for selecting winning bids. LEI was also solicited to provide testimony to support its assessment of the auction.