Validation of advanced electricity pricing models for major US utility company
- Risk Management
Prescio Consulting was requested to validate advanced electricity pricing models by the wholesale power-marketing group of a major US Utility.
The wholesale power-marketing analytical group of a large US utility needed to validate their state-of-the-art in-house electricity forward curve and stochastic price forecasting models by an independent third party. Prescio Consulting developed the complete flow map of the models from data input to results and reporting.
Prescio Consulting identified the fundamental premises on which these models were based and the mathematical techniques applied to develop the models. While the models were appropriate in most aspects, Prescio Consulting recommended certain additions and mathematical techniques to incorporate several missing variables.