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Services Offered by NSI Consulting & Development

Electric Utility Consulting

NSI is one of the few real estate firms that specialize in electric utility real estate, particularly corridor and rights of way management.

Since 1993, NSI has worked with over twenty electric utilities throughout the United States, managing a wide variety of generation, distribution, and transmission real estate projects and ongoing management assignments. To the best of our knowledge, NSI is only real estate services firm that specializes in this field.  NSI is also unique in having extensive experience consulting with utilities on managing mergers, acquisitions, divestitures and restructuring initiatives, all from a real estate perspective.  We are also skilled in assignments associated with transmission separations and spin-offs, such as Trans-Electís acquisition of the Michigan Electric Transmission Company.

Tapping our extensive industry knowledge, NSI's capabilities include:

  • Separation of transmission real estate from distribution and generation
  • Excess property identification and disposition
  • Merger, acquisition restructuring
  • Records management, digitization, and process modernization
  • Right-of-Way and asset management (regulated and non-regulated)
  • Formal and recorded transfers of thousands of individual properties and hundreds of thousands of new easements.
Our client list includes such well-recognized names as American Electric Power, Exelon, Detroit Edison, International Transmission Company, Niagara Mohawk Power, Sierra Pacific Resources, Trans-Elect, New York State Electric & Gas, and many more.

Electric Utility Industry

Once considered the ultimate regulated monopoly, the electric utility industry is facing fundamental change with the coming world of deregulation. Spurred by federal and state legislation, electric utilities are being forced to restructure by separating the businesses of generation, transmission, and distribution.

One of the major drives to this change is the fact that the Federal Energy Regulatory Commission (FERC) is calling for the formation of Regional Transmission Organizations (RTOs).  These transmission entities facilitate the wholesale competition of energy sales and consolidate complex operations demanded in the new electricity market structure.

As a result, electric utilities are faced with the challenge of identifying and separating transmission assets from that of generation and distribution, assets that have been managed on a co-mingled basis for the better part of the century.  From a real estate perspective, the task of identifying and separating these assets, particularly the chore of separating transmission from distribution, often is a monumental and costly task.

Another challenge facing electric utilities in the world of deregulation is how best to manage the vast amounts of real estate they own.  In a regulated market, utilities were allowed to capture profit on a "cost-plus" basis.  This approach typically rewarded a utility that could acquire more real estate that may be critical for a given project.  Since the regulated monopoly market provided little incentive for managing cost and improving profitability, over the years utilities have typically amassed more real estate than would be prudent for a competitive company focused on profitability.  As deregulation begins to take hold, utilities will need to begin capitalizing on their assets by identifying and disposing of excess property that is no longer providing a regulated rate of return.  By implementing an effective disposition program, forward-thinking utilities have demonstrated that is possible to repatriate hundreds of million dollars of cash to utility coffers.  This work has just begun.

For more information, please contact Mike Schira

 

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