As a result of our work, the client was able to transform its business into a sustainable model allowing it to effectively compete in the new environment. The project not only improved the bottom line, but also developed crucial firm competencies. The client improved its bottom line by:

• Growing revenues for existing customers by supporting a premium for new portfolio management services
• Adding new customers as well as maintaining existing profitable customers by offering superior portfolio management services
• Reducing losses from overly aggressive sales by identifying unfavorable retail contract structures and pricing combinations using our risk management models
• Improving the efficiency of operations by utilizing our portfolio management processes and supporting tools
• Extending its presence in the market by providing elements of portfolio management services to affiliated utilities in other regions

The project also developed new competencies at the client, improving its strategic positioning and providing growth options going forward. Benefits in these areas include:

• Transition from a supplier to a full service intermediary, improving its customer relationships and opportunities for growth
• Development of a functioning trading floor to support portfolio management and other market oriented activities
• Development of a comprehensive risk management infrastructure to measure and control the risks of the new organization
• Creation of flexible, customized tools specific to the regulatory and market environment to support portfolio management and other market oriented activities
• Development of a growth option to conduct position trading or market making activities in the future, subject to a rigorous risk management approval process