AREAS OF EXPERTISE: Expertise Areas
of Focus Forecasting w Supply and Demand: All Energy Services w Prices:
All Energy Services w Refining Operations w Transmission and Distribution Planning w Fuel Planning and Strategy w Natural Gas Transportation & Storage w Exploration and Development Market
Analysis w All Energy Sources w
Supply/Demand/Transport w
Market Power Contracts w Review, Interpretation, Negotiation w Litigation Permits w Social and Economic Impact Assessment w Fiscal Impacts Regulated
and Market Rates w Cost Allocation and Rate Design w Revenue Requirements w Access and Other Tariff Provisions w Incentive Ratemaking Capital
Issues w Cost of Capital - Rate of Return w Capital Recovery Computer
Modeling w Rate Impacts w Tariffs and Rates w Financial Models w Econometrics and Statistics w Production Costs Regulated
Industry Restructuring w Stranded Investment w Market Structure w Competitive Assessments E n e r g y E c o n o m i c s EWE's practices in energy and regulated utility industries are mutually
beneficial, and provide the firm with an in-depth understanding of many of the
issues confronting today's markets. Our expertise in the
Energy Sector includes: w Institutional
knowledge of fossil fuels markets: crude oil, products, natural gas and coal. w Institutional
knowledge of the electric utility industry. w Natural
gas & electricity industry restructuring and transportation and
transmission grid access issues. w Decision-oriented
management studies to support fuels and power contract negotiation, supply
acquisition, conservation, demand, prices and transportation. w Financial
analysis of regulated and unregulated businesses. w Testimony
before state and federal courts, arbitration panels, regulatory commissions and
state and federal legislative committees. w Information
searches and acquisitions to obtain in-depth and up-to-date data and
information on rapidly changing issues. w Survey
approaches to data gathering, especially in instances where the task is to
quantify complex economic, environmental and demographic phenomena. Our experience and
skills, coupled with our familiarity with policy issues at the state and
federal levels, enable EWE professionals to take a pragmatic, business-oriented
approach to solving highly complex problems.
Whether it is economic analysis, testimony before courts or public
agencies, EWE professionals possess the depth of experience, education and
stature to deliver effective results. EWE
professionals are specialists in regional economic and public policy
analysis. Our expertise has been
successfully employed to assess the economic impacts of proposed public policy
changes as well as significant energy and water projects. Using state-of-the-art computer models such
as IMPLAN and REMI, EWE experts are able to analyze how proposed policies and
projects will affect the local, regional, and national economies. EWE
has applied its regional economic modeling expertise to estimate the economic
impact of offshore natural gas and oil development in California and the Gulf
of Mexico, to determine how Southern California will be affected by a major new
reservoir development, and to find the net economic impact of proposed
legislation and regulations.
Recent large
projects include evaluation of TVA's reservoir operating alternatives and
estimation of Lake Lanier, Georgia, regional economic benefits.
Additional information may be found at
http://www.remi.com/consulting/partners.html
Areas
of Focus Socio-economic
impact assessments of proposed public policies and projects utilizing IMPLAN
and REMI models. Fiscal analysis,
including projecting local government expenditures and revenues. Municipal finance,
including developing and analyzing development fees, redevelopment areas and
other public financing mechanisms. Demographic and
economic forecasting. Regional
economic impacts of proposed environmental regulations. Industry-specific
policy-impact studies. w
Socioeconomic impacts w
Regional economic modeling w
Fiscal forecasting w
Demographics w
Municipal finance RECENT ENERGY PROJECTS
ENERGY AND UTILITIES
Social and Economic Impact Projects
"Regional Economic Analysis of Alternative Operating Regimes to enhance
power supply, navigation, recreation and flood control: TVA Re-Operations
Study," 2002 - 2003.
Dr. Wade joined a team of TVA professionals to undertake the economic
evaluation of TVA's ongoing multi-million dollar reservoir operation study (ROS).
The project entailed the estimation of regional economic impacts of selected
alternatives using the REMI model, a dynamic econometric model. The Tennessee
Valley was partitioned into ten subregions in order to input local changes to
operations and trace the results across the entire TVA region. [TVA
ROS Economic Appendix 1103 - PDF file]
Chevron Gulf of Mexico Business Unit and Minerals Management Services, 1994 - 1999
Beginning in 1994, Dr. Wade and his group at Foster Associates initiated a series of studies, first for Chevron's Destin Dome EIS and subsequently for the Minerals Management Services. This work entailed substantial local area research to develop the social and economic impact analyses required by MMS's rigorous guidelines. This body of work included social impacts assessment under the SIA guidelines. It documented local and regionwide economic impacts from historic and proposed gas development; Analyzed demographic changes, fiscal impacts to region and community infrastructure impacts related to proposed offshore development scenario. In the modeling element, we calibrated and ran REMI and IMPLAN I-O Models for Norphlet gas production inputs. The following report titles illustrate the work:
• “Social and Economic Effects of Mobile Bay and Florida Destin Dome Norphlet
Gas Development and Production,” 1994, 1996, 1998.
• Chevron Destin Dome DPP, Volume IV.A, “Economic, Fiscal and Infrastructure
Impacts,” 1994 & 1996.
• “Case Study of Coastal Alabama Mutual Use of Resources: Gas, Tourism and
Fisheries,” 1997.
• “Research and Modeling Challenges to Estimate Economic Effects of Coastal
Alabama Exploration and Development,” 1998.
• “Effects of Oil and Gas Support Industries on Florida and Panhandle Economy,”
1998.
• “History of Coastal Alabama Natural Gas Exploration and Development,” 1998.
• “Potential Gulf of Mexico Gas Supply Forecast,” 1999.
"Social and Economic Impacts of Mobile Bay and Destin Dome Natural Gas Exploration and Development," Chevron U.S.A, 1994 – 1996 - 98.
This project estimated local and regionwide social and economic impacts from historic and proposed gas development offshore Mobile, Al. The results of the project satisfied Chevron's EIS "socioeconomics" requirements by predicting demographic changes, fiscal impacts to region and community infrastructure impacts related to proposed offshore development scenario. REMI and IMPLAN I-O Models were calibrated for Norphlet gas production inputs and used in the project.
This research documents the economic and social effects of historical natural gas development in the Mobile Bay/Mobile OCS Area and projected development in the Destin Dome OCS Area off the Florida Panhandle.
Based on inquiries to the major Mobile Bay operators, capital and operating costs and company and contractor labor were tabulated as the basis to estimate economic, land use, and community infrastructure impacts of the baseline Mobile Bay activity and the proposed Destin Dome extension off Florida. Local and regionwide economic impacts were estimated using both REMI and IMPLAN models. Extensive data on demographics, fiscal stimulus and public services were collected to identify changes in the region over time. Baseline community impacts were identified and future impacts were estimated based on proposed development scenarios. Societal perceptions and concerns about offshore Florida exploration were measured by survey research in the Panhandle region of Florida.
Three reports were issued by MMS under contract 1435-01-CT-96-30829:
• Social and Economic Consequences of Onshore OCS-Related Activities in
Coastal Alabama;
MMS
98-0046.
• History of Coastal Alabama Natural Gas Exploration and Development;
MMS
99-0031.
• Economic Effects of Coastal Alabama and Destin Dome Offshore Natural Gas
Exploration, Development, and Production, OCS Study
MMS 2000-044.
See Murdock, S.H., F.L. Leistritz and S. Albrecht. 2002. “An Examination of Selected Recent MMS Socioeconomic Studies and Assessments in the Gulf of Mexico.” OCS Study MMS 2002-057.
“Bay County Economic Growth Related to Tourism and Oil and Gas Support Industries,” 1998.
Dr. Wade conducted onsite interviews with representatives of offshore oil and gas support industries in Bay County, Florida. The objective was to understand more about the coexistence of these industries relative to the locally dominant tourism industry. The qualitative study provides an assessment of the economic contribution of these industries to the local economy in terms of jobs, earnings and spending. Contrasts are made with the Pensacola tourism-based economy based on our own research and research of local academics. Contacts in both Pensacola and Panama City will be useful to MMS’s new project.
"Regional Economic Effects of Multi-Million Dollar Reservoir Recreation Facilities on local and county economies," Metropolitan Water District of Southern California, 1995 - 1999.
As part of a five year ongoing recreation facilities planning project in relation to the now-open $2 billion Diamond Valley Reservoir in Riverside County, CA, we used our forecasts of visitation and direct recreation expenditures to forecast economic and fiscal impacts on local Hemet, CA, and Riverside County economies. These reports were exceedingly interesting to City and County Commissioners. In part, the underlying studies relied on the IMPLAN model; but, much local data was assembled and used.
MMS Offshore Environmental Cost Model Project.
Forecasting Environmental and Social Externalities Associated with OCS
Oil and Gas Development: The Offshore Environmental Cost Model, OCS Study
MMS 2001 - 017& 018.) 2000 - 2001.
Estimates of environmental and social costs and consumer surplus benefits associated with offshore leasing are essential components of the judicially mandated cost-benefit analysis performed for the 5-Year Leasing Program. Dr. Wade led a team that developed a model to forecast social and environmental costs associated with OCS development. The model estimates environmental and social costs for all 26 OCS planning areas in relation to OCS exploration and development. The estimates are calculated using economic models and up-to-date economic, social, and environmental information. The model and data base assigns dollar costs for subsequent cost-benefit analysis cited at the above MMS reference.