June 11, 2019 – Skipping Stone, a global energy markets consulting and technology services firm, and Scoville Risk Partners, specializing in valuation, risk management and portfolio analytics in the energy and commodities sectors, announce a new U.S. generation asset monitoring service for international investors that covers all U.S. ISO wholesale power markets.
International investment in U.S. generation projects has grown dramatically over the past several years. Typically, international companies take a minority position in a generation project and invest based on expectations of a suitable rate of return using the project developer’s prospectus. The financial forecast in any prospectus will be different than actual results over the life of the project due to a variety of factors, including wholesale market price swings.
Many international investors lack expertise in the workings of US markets and struggle to explain to their boards of directors why their investment projects’ performance results differ from the initial prospectus. While generation project owners provide detailed information on performance metrics and explanations of deviations, this often doesn’t fully satisfy investors. These investors require independent verification of project performance and an analysis of key metrics to explain deviations from expected performance.
“Our generation asset monitoring service does not merely report and provide analysis of what has happened; we also explain why it happened and provide a perspective on what should have happened so international investors can understand any deviations and explain it to their boards,” explained Peter Weigand, Skipping Stone CEO. “This also helps the asset owner by avoiding tension due to their international investors not understanding how the US markets work.”
Glen Swindle, Managing Partner at Scoville added, “Our proprietary software sources performance data from the asset itself as well as complex, detailed market pricing information based on the asset location. We empower the investor with comprehensible explanations of the factors that caused any surprises or significant deviations from forecasted financial results, allowing them to raise potential issues with developers and outsourced asset managers.”
Skipping Stone and Scoville Risk Partners have decades of experience, access to all the market and pricing data and proprietary systems to calculate and track complex pricing formulas against actual market results.
About Scoville Risk Partners
Scoville Risk Partners specializes in valuation, risk management and portfolio analytics in the energy and commodities sectors, utilizing extensive commercial experience to provide a full range of outsourced analytic solutions and advisory services. Their proprietary technology solutions provide clients with efficient and accurate analysis of complex portfolios across a broad range of financial and physical assets.
Scoville’s advisory services are a combination of quantitative skills and trading experience that put the company in a unique position to assist clients in asset acquisitions, enterprise valuation and transaction structuring. Scoville’s existing client base includes investment banks and utilities, private equity firms, independent generation owners and retail energy suppliers.
About Skipping Stone
Skipping Stone is an energy markets consulting firm that helps clients navigate market changes, capitalize on opportunities and manage business risks. Our services include market assessment, strategy development, strategy implementation, managed services, technology selection, technology implementation, project management, and talent management. Our sector focus areas are natural gas and power markets, demand response, technology services, renewable energy, and distributed energy resources. Our subsidiary, Capacity Center, capacitycenter.com, is the only gas pipeline capacity trading & flow data technology system in the U.S.
Headquartered in Boston, the firm has regional offices in Atlanta, Houston, Los Angeles, Tokyo, and London. For more information, visit SkippingStone.com.
Skipping Stone, LLC
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