Cost Intelligence: Manage Cost and Volatility Exposure

PowerAdvocate provides supply market cost trends on equipment, components, services and materials through our Cost Intelligence product. Our indices track both the direct and intangible costs to manufacture a piece of equipment, to install permanent materials, or to deliver a type of service. Real-time cost transparency provides our clients with needed insight into the cost volatility inherent in building or operating different types of energy facilities.


SEE EVERYTHING

Market Cost Visibility

Follow historic cost trends and breakdowns to identify cost drivers

Access PowerAdvocate's proprietary supply market database to monitor the impact of market conditions to direct item costs by tracking commodity indices.

  • Track over 10,000 global commodity indices
  • Indices mapped to over 740 common industry "items"

Industry-specific, customizable facility cost model templates:

  • Enterprise Portfolios:

    • Electric Distribution Operating Units
    • Electric Transmission Operating Units
    • Gas Distribution Operating Units

DIVE DEEPER

Dive Deeper

Understand Volatility Impact

Drill down into over 740 items to uncover commodity drivers

Avoid unreasonable or unexpected price increases from your suppliers by understanding your commodity exposure. Validate alliance pricing through Should-Cost analysis. 

Custom Cost Models Customize models within your regional and technical specifications to meet your project and O&M needs.

Perform Sensitivity and "What-If" Scenarios – Understand your exposure and identify "best-case" contract approaches:

  • Pick the "right" index
  • Evaluate escalation methodologies

NAVIGATE THE FUTURE 

Mitigate Risks

Forecast costs to manage risk and cost overruns

Configure a plan for future cost volatility. Sustain cost savings and transparency through each phase of the contract lifecycle.

Identify Savings Opportunities – Quantify commodity impact and identify market opportunities to achieve savings. Benchmark project cost escalation with industry standards. 

Contract Negotiations – Ensure fact-based negotiations with supporting forecasts and estimates of future costs. Negotiate your contract with real time market conditions and forecasts.

Budgeting and Planning – Strategically evaluate project schedules based on cost and market data. Gain visibility into major cost drivers to hedge your risk and incorporate into purchasing plans.

Monitor Index-Based Contracts As the market shifts from fixed-price to index-based contracts, market volatility increases risk of exposure if not properly monitored.

  • Automate compliance tracking to monitor more index-based contracts quickly and accurately
  • Monitor and compare Actual Price Paid to Contract Price
  • Validate supplier price escalations against contract terms

Rate Case Support Demonstrate cost prudency and justify spend escalation with third-party market cost data to validate enterprise spend and spend forecasts.

 


 

Cost Intelligence: Manage Cost and Volatility Exposure

PowerAdvocate provides supply market cost trends on equipment, components, services and materials through our Cost Intelligence product. Our indices track both the direct and intangible costs to manufacture a piece of equipment, to install permanent materials, or to deliver a type of service. Real-time cost transparency provides our clients with needed insight into the cost volatility inherent in building or operating different types of energy facilities.

 Independent Method to Verify Market Bid Quotes

Current Market Adjustment: Identify cost drivers within categories and adjust costs to current market conditions by breaking down cost component to commodity levels

Negotiation Preparation: Produce quantitative cost indices breakdowns with qualitative market analysis to attain real savings

Contract Indexing: Tie contract to cost indices to monitor cost escalation and volatility during the life of your contract

Capital Project Planning: Customize models with demand plans to identify five-year cost

Commodity Exposure: Granular breakdown of cost drivers to commodity level for both capital projects and O&M

Cost Intelligence: Manage Cost and Volatility Exposure

PowerAdvocate provides supply market cost trends on equipment, components, services and materials through our Cost Intelligence product. Our indices track both the direct and intangible costs to manufacture a piece of equipment, to install permanent materials, or to deliver a type of service. Real-time cost transparency provides our clients with needed insight into the cost volatility inherent in building or operating different types of energy facilities.

Indexed Approach:
Perform a multi-tiered analysis to deliver cost trends at the item, sub-category, category and business unit level for O&M, Construction, and Renewable projects.

Customized Models:
Models and projections can be customized to account for different regions, key technologies, or facility idiosyncrasies, by adjusting key items in the database of 740 identified items.

Probabilistic Forecast:
Provide transparency into the critical drivers of tomorrow’s prices through a “Cone of Probability”, a five-year forecasting tool, which draws upon supply market constraints, demand components and historic volatility models.

Quarterly Updates:
Deliver timely updates to the historical indices and forecasts in order to provide customers with relevant, real-time data.

Should-Cost Calculator:
Identify a cost component pricing model independent of bid quotes and empower key decision makers to determine a plausible “should-cost” price that can be used to ensure appropriate vendor participation in negotiations.

 

Energy Intelligence Group

The Energy Intelligence Group (EIG) is PowerAdvocate’s research and analysis team, providing energy industry decision makers with research and market insight. The analysts, with backgrounds in economics, energy markets, regulatory schemes and renewable technologies, track real-time cost data in order to forecast capital build and maintenance costs for utilities. The EIG Cost Intelligence tool provides analytical cost breakdowns at all levels of the energy industry.

Default Cost Intelligence Models

Cost Intelligence has an expanding portfolio of industry-specific facility cost model templates that allow you to monitor the impact of market conditions to direct item costs by tracking commodity indices through custom cost models. Cost Intelligence provides the flexibility to create your own cost models from the ground up. Additionally, the default models listed below can be easily customized to your regional and technical specifications to meet your project and O&M needs. 

  • Covers U.S. and European energy facilities
  • Easily accessible and customizable
  • Continuously expanding portfolio

  • Biomass Construction
  • Biomass Construction - EU
  • Coal Constructions
  • Coal O&M
  • Combined Cycle Construction
  • Combined Cycle O&M
  • Concentrating Solar Construction
  • Corporate O&M
  • Corporate O&M - UK
  • Gas Distribution
  • Hydro Construction
  • Integrated Gasification Combined Cycle (IGCC) Construction
  • Nuclear Construction
  • Nuclear Construction - EU
  • Nuclear O&M
  • Onshore Pipeline Construction
  • Photovoltaic Solar Construction - Ground Mount
  • Photovolatic Solar Construction - Rooftop
  • Scrubber Construction
  • Simple Cycle Construction
  • Simple Cycle Construction - UK
  • Simple Cycle O&M
  • Smart Grid AMI System
  • Thin Film PV Solar Construction
  • Transmission & Distribution O&M
  • Transmission & Distribution O&M - UK
  • Transmission Construction
  • Transmission Construction - UK
  • Wind Construction
  • ...and many more

 

Cost Intelligence Brochure

PowerAdvocate Cost Intelligence: Manage Cost and Volatility Exposure

A bottom-up approach to analyzing complex projects and operations

In this ever-changing industry landscape, uncertainty challenges utilities to improve their ability to manage opportunities, risks and costs differently than they have in the past. To do this, utilities need access to timely and accurate cost information. Do you monitor your cost against market volatility? Do you know if your supplier is quoting you a fair market price? Do you have the market data to support your negotiations? Do you have the fact-based cost data to communicate with your regulators?

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