Practice Overview

Utilities
Mercer Management Consulting helps utility and related
energy companies address strategic and operational
challenges through proven, results-oriented approaches.
We have completed hundreds of engagements for over 75
of the leading energy utilities across North America and
Europe, creating sustainable shareholder value. Our group
of dedicated consultants brings an average of 15 years of
experience providing counsel to utilities.
Over the past 10 years, we have completed hundreds of business strategy and operational
improvement projects with leading utilities.
Representative engagements include:
Experience
Portfolio strategy: Mercer helped a major U.S. combination
utility review portions of its portfolio of unregulated busi-
nesses to determine their targeted future role and contribu-
tion. This work supported our client's decision to exit a sig-
nificant infrastructure services business line and the suc-
cessful sale of a $750 million subsidiary.
Due diligence: Mercer has assisted a number of utilities in
screening and evaluating potential synergy targets. We help
our clients to evaluate the types of acquisitions and compa-
nies that would best fit with their strategy, identify potential
candidates, and then estimate the potential value that would
be created from the combination. We use a proprietary set of
databases and tools to estimate the cost savings synergies
associated with the personnel savings from combining utili-
ty companies and the potential non-labor savings that could
accrue from the combination.
Post-merger integration: Mercer assisted functional integra-
tion teams of a North American utility in consolidating "back
office" functions and driving consistency throughout the
organization. Results exceeded anticipated savings by
over $70 million annually and addressed chronic perform-
ance issue areasreduced write-offs by 50% and call
durations by 10%.
Business and organization strategy: Mercer developed a
business and organization strategy for a local distribution
company. The work identified over $100 million in opera-
tional savings through work elimination and productivity
improvement, and created new functions/processes to
address energy supply and work management needs.
Sourcing: Mercer assisted two merging utilities in rethinking
sourcing strategies and supplier relationship management
programs across the combining companies. Results led to
identification of $75M+ in pro forma savings across T&D and
corporate center purchase categories.
Nuclear generation performance improvement: Mercer
assisted a nuclear operator in improving its outage planning
processes. The work identified several initiatives that closed
the cost gap by more than 50%.
Fossil generation maintenance management: Mercer ana-
lyzed and provided recommendations to a large integrated
state-owned utility company for improving fossil generation
maintenance. Recommendations allowed the utility compa-
ny to close its gap to best practices.
Electric transmission & distribution process improvement:
Mercer has helped many utilities to redesign and improve
delivery-related process. Illustrative results include 50%
reduction in cycle time and improved customer satisfaction
scores in New Service Delivery; 15% reduction in cycle
time and improved project management in Substation
Engineering & Construction; and standardized work esti-
mation practices and improved engineer utilization in
Engineering.
Gas distribution: The recent volatility of natural gas prices
has driven unexpected requirements of LDCs. Corresponding
fluctuations in usage, unpredictable population growth pat-
terns, the impact of theftall have led to the need for LDCs
to drive consistent high-performance of their operations so
that they can respond to and minimize the effects of volatil-
ity. Mercer has helped numerous LDCs reach a high level of
performance and control of their operations. Driving out sig-
nificant costs as well as increasing the visibility and consis-
tency of operations have helped our LDC clients build
stronger companies that deliver consistent results.
Customer service - "Meter-to-cash" (collections): Mercer
worked with a client to realign from a functional approach to
an integrated end-to-end process. This effort reduced receiv-
ables and bad debt expenses by 20-30% within one year.
Retail services - In-market experimentation: Mercer worked
with a company to increase the effectiveness of its marketing
campaigns. Results led to improvements over the base mar-
keting campaign of more than 50% in terms of response
rates.
Support services redesign: Mercer worked with a utility
client to redesign and consolidate decentralized HR,
Communications, IT, Fleet, Real Estate, Facilities, and
Environmental functions. The resulting organization
achieved operating cost savings of 13%.
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We help clients improve top- and bottom-line performance and address the challenge
of creating differentiated value in an increasingly challenging marketplace. Our services
address both enterprise-wide and function-focused issues:
Services
Portfolio strategy and planning
Business design development
New business development
and launch
Regulatory strategy
Organizational redesign
Re-staffing
Talent/aging workforce
management
Process redesign
Benchmarking and
performance management
Supply chain management/
value sourcing strategy
Working capital management
Revenue leakage
Enterprise-Wide
Corporate
Strategy
Organizational
Transformation
Performance
Improvement
Generation
strategy:
nuclear, fossil,
hydro
Asset sales
Power plant
competitiveness
Fuels strategy
Bulk power
alliances and
entry strategy
Bulk power
marketing
strategy
Gas supply and
transportation
Separtation
of assets and
operations
Project planning
and management
Outsourcing
and alliances
Gas control
Asset
management
Reliability
Work
management
and field force
productivity
"Back office"
and support
effectiveness
Meter-to-cash
process
management
(meter reading,
collections,
call center,
and billing)
Customer
satisfaction
New service
delivery
Marketing and
pricing strategy
Branding
strategy
Customer value
engineering/
in-market
experimentation
Alliances
Wholesale Delivery Retail Support
Electric
Generation&
Gas Supply
Wholesale
Marketing
& Trading
Transmission Distribution
Customer
Service
Retail
Services
Targeting
Strategic due diligence
Synergy analysis
Post-merger integration
Mergers and
Acquisitions
Corporate
and Shared
Services
Alignment of
corporate
support services
Outsourcing
Performance
improvement
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Sectors Served & Practice Leader
We have worked with leading utilities operating in the United States, Canada, Mexico,
France, Spain, and the United Kingdom.
David Hoffman
David Hoffman is a Director of Mercer Management Consulting and
leads the firm's North American Utility practice. David has counseled
electric and gas utilities for more than 20 years and has directed significant engage-
ments in business strategy and value creation, post-merger integration, and targeted
performance and cost improvements resulting in hundreds of millions of dollars of
bottom-line efficiency and profit improvements for his clients. He specializes in the
areas of strategic planning, strategic due diligence, organization transformation, and
operational improvement. David holds a B.S. in finance from Boston University and
an M.B.A. (with honors) in management information systems from Boston University.
david.hoffman@mercermc.com
Our clients span both traditional and non-traditional participants in today's evolving utility
markets. These include:
Integrated electric, gas, and water utilities
Nuclear, fossil, and hydro generators
Merchant generators/wholesale energy marketers
Independent system operators/regional transmission organizations
Delivery electric and gas utilities
Retail energy marketers
Energy and infrastructure services providers
Shared service and corporate center organizations
Americas
Canada
John Calhoun, 1 416 868 2727
john.calhoun@mercermc.com
Mexico
Daniel Silva, 52 55 5063 9001
daniel.silva@mercermc.com
United States
George Faigen, 1 212 345 8296
george.faigen@mercermc.com
Europe
France
Karine Jullien, 33 1 45 02 32 51
karine.jullien@mercermc.com
Germany
Pierre Derad, 49 89 939 49 599
pierre.deraed@mercermc.com
Portugal
Soledad Mnendez, 34 91 212 6336
soledad.menendez@mercermc.com
Spain
Soledad Mnendez, 34 91 212 6336
soledad.menendez@mercermc.com
Switzerland
Joris DInc, 41 44 208 7749
joris.dinca@mercermc.com
United Kingdom
Louise Simms, 44 20 7915 9246
louise.simms@mercermc.com
for consulting assistance
and media relations
Asia
China
Larry Alberts, 852 2110 3314
larry.alberts@mercermc.com
Hong Kong
Jonathan Gove, 852 2110 3314
jonathan.gove@mercermc.com
Korea
Young-joon Kim, 82 2 399 5533
young-joon.kim@mercermc.com
A Marsh & McLennan Company
Mercer Management Consulting
As one of the worlds premier corporate strategy and operations firms, Mercer Management
Consulting helps leading enterprises develop, build, and operate strong businesses that
deliver sustained shareholder value growth. Mercers proprietary business design
techniques, combined with its specialized industry knowledge and global reach, enable
companies to anticipate changes in customer priorities and the competitive environment,
and then design their businesses and improve operations to seize opportunities created by
those changes. The firm serves clients from 26 offices in the Americas, Europe, Asia, and
the Middle East.
www.mercermc.com
Copyright 2006, Mercer Management Consulting. All rights reserved.
For consulting assistance, please contact our practice head directly:
David Hoffman, Boston
dhoffman@mercermc.com
Or contact one of the following country representatives: