Power & Gas: Process & Technology: Nodal Program Implementation
The Electric Reliability Council of Texas (ERCOT) is an independent systems operator that manages the flow of electric power to 24 million Texas customers, representing close to 90 percent of the state’s electric load. Total capacity in the ERCOT market exceeds 74,000 megawatts. Initially, ERCOT engaged Opportune to design, build, and run a financial management office that would budget, forecast, and control the $550 million of costs related to Nodal implementation. Further, ERCOT engaged Opportune to lead the Nodal Credit Management implementation.
Opportune was engaged by ERCOT management during a high profile crisis of confidence in the Nodal’s project management office to execute against a plan on time and on cost. In concert with bringing in a new overall project executive, ERCOT hired Opportune to provide a coordinated, yet independent financial perspective on the Nodal project. Opportune reported directly to ERCOT’s chief financial officer and the Board of Directors on a monthly basis. Ultimately, the program was delivered one month early and nearly $80 million under the re-budgeted authorization.
The Nodal Program improved the market’s price signals, identified and assigned congestion costs more efficiently, and created generation operating efficiencies. Opportune acted as the Credit Lead and successfully delivered the Credit Management & Monitoring System (CMM) application and DAM Credit Collateral Requirements calculation and compliance functionality. Our team also created training and materials for market participants and managing credit. And, Opportune was responsible for developing internal reports for managing credit and external reports for market participants. Opportune’s experienced team provided support and guidance through this implementation, fostering efficient and reliable operations for ERCOT.
Business processes and technology are core competencies of Opportune’s consultants. Our deep knowledge of the energy industry includes exploration and production, processing and pipelines, feedstock sourcing, refining, power and gas utilities, and financial and physical products marketing and trading. This makes us well-suited to advise and drive results across the energy supply chain through business processes and technology deployment and optimization. Our clients look to us for informed, actionable analysis, design, and implementation that support a quest for operational excellence and superior business results.
Through business process reengineering and automation, Opportune steps in to evaluate and rethink energy business processes, making expert recommendations, and leading the transformation to help our clients realize their potential. For additional information, click here.