1. City and County of San Francisco Local Agency Formation Commission
April 19, 2002
William Pezalla
Adrian Chiosea
Linda Stevens

2. Markets Served Office Locations
United States
Atlanta, GA Office
United Kingdom
London Office
United States
Sacramento, CA
Corporate Office
North America
Western Europe
Australia
Other Regions
Future Plans
Australia
Adelaide Office

3. Strategic Consulting Services
Henwood
Strategic Consulting Services
Henwood helps clients create value,
analyze power market opportunities and risks,
and optimize energy portfolio performance through the
strategic assessment of energy markets, prices, assets and risk.

4. Initial Project Tasks Risks Benefits Feasibility Investigate the:
for providing electric utility services

5. Vertically Integrated Value Chain
Utility Operations
Vertically Integrated Value Chain
Fuel Procurement
Generation
Transmission
Distribution
Retail Services

6. Key Elements of Energy Service
Power supply procurement & management
Load forecasting & supply scheduling
Risk management
Energy delivery facilities
Revenue cycle services & settlements
Customer services
Regulatory requirements

7. The City’s Interests Managing energy costs is essential for:
Current residents
Future growth/development
Lowering energy costs to maintain services within budget
Create self-sustaining operations

8. Energy Strategy Selection
There is no “one size fits all” approach
Identify City’s key drivers
Balance economic, social and political factors
Identify possible City roles
Evaluate opportunities

9. Define Key Drivers City objectives (long-term & short-term)
Expected benefits
Risk tolerance
Available resources
Constituents’ requirements/support
Level of commitment

10. Possible City Roles Be a provider of specific Value Chain services
Fuel Procurement
Generation
Transmission
Distribution
Retail Services
Commodity
Be a provider of specific Value Chain services
Delivery
Systems
Customer Service
Facilitate actions by others

11. “Sample” Investigations
Strategic alliance opportunities with other local entities
Economic, social and environmental values of “green” power
Legal and political threats
Distributed generation to enhance reliability, power supply and price stability

12. Merced Irrigation District
Henwood Experience
Merced Irrigation District
Provided strategic planning and management assistance in becoming a retail electric utility
Developed strategic plans for providing competitively priced retail electric services
Negotiated inter-utility contract agreements
Managed the procurement of economic power supplies and other wholesale electric services
Supported regulatory and legal proceedings

13. Henwood Experience Presidio Trust
Developed strategic utilities business planning
Provided financial analysis of utilities
Developed utility load forecasts
Assisted with commodity procurement
Assessed utility easements

14. Hetch-Hetchy Water and Power
Henwood Experience
Hetch-Hetchy Water and Power
Treasure Island utilities system transfer
Port of San Francisco electric distribution system transfer from PG&E
Hunters Point utilities system assessment
San Francisco International Airport – power interconnection at transmission level

15. Oakland Base Reuse Authority
Henwood Experience
OBRA
Oakland Base Reuse Authority
Developed a strategic plan to take over the operation of utilities at Oakland Army Base
Provided financial analysis of utility operations and forecasted future cash flows
Investigated procurement contracts for commodities and developed a financial model to calculate utility rates
Negotiated utilities partnership program with Port of Oakland
Managed the start-up and interim operations

16. City and County of San Francisco Local Agency Formation Commission
April 19, 2002
William Pezalla—Project Manager, Power Business Solutions
ext. 358
Adrian Chiosea—Project Manager, Power Business Solutions
ext. 312
Linda Stevens—Marketing Manager, Strategic Consulting
ext. 322