MSB ENERGY ASSOCIATES

SERVICES AND EXPERIENCE

The principals and staff of MSB Energy Associates have many years of experience in electric and gas utility issues. We have managed and carried out complex projects; developed, presented and defended testimony; written numerous briefs and orders; and prepared many analyses and reports. Since forming MSB Energy Associates in January 1988, we have provided services in utility analysis, planning, and regulation to a wide variety of clients. MSB is committed to providing its services in a timely and cost-effective manner. As our experience is firmly grounded in utility regulation, we have a deep appreciation for the information and processes needed by regulatory decision-makers. MSB's professional staff is trained in a wide variety of disciplines related to energy and environmental analysis and policy. We offer services in:

· Assessment of the impacts of proposals to restructure the electric industry

· Analysis of environmental aspects of utility plans and restructuring proposals

· Economic and emissions impact analyses of air pollution control strategies

· Comprehensive system planning studies, including production cost modelling, life-cycle cost analysis, development of resource screening models, and project-specific economic analysis

· Review and development of low-income energy efficiency programs

· Review of utility energy efficiency program plans

· Development of independent energy efficiency programs

· Analysis of electric and gas utility plans

· Assistance to regulators in developing rules and procedures

· Development of independent integrated resource plans

· Analysis of economic and financial issues related to electric and gas integrated planning, including cost recovery, incentives, lost revenues, market failure and cost-benefit methods

· Development of avoided costs and buy-back rates for cogeneration and other PURPA projects

· Comprehensive hearing support, including testimony, briefing, and order drafting

· Training and staff development.

PROJECT SUMMARIES

The following pages contain selected recent examples of MSB's work experience in the most relevant areas. Examples are arranged in the following categories:

· Clean Air Act/Environment

· System Planning/Distributed Utility Planning

· Electric Integrated Resource Planning

Clean Air Act/Environment

Listed below are recent examples of MSB Energy Associates' work regarding the Clean Air Act and other environmental issues. Clean Air Act assistance includes regulatory guidance, review of utility SO₂ compliance strategies, and analysis of emission reduction alternatives.

Clean Air Task Force

MSB has been providing a wide range of technical services to the Clean Air Task Force since 1999.

New England Clean Air Campaign

MSB in 1998 analyzed air emissions control technology options and costs for power plants in New England.

New Jersey Public Interest Research Group

In 1997, MSB assisted NJPIRG in estimating the cost of emission reductions at the most air-polluting power plants in New Jersey.

US Department of Justice

In 1997, MSB performed an electric vehicle emission analysis for a New England EV implementation program proposed by the Department of Justice in a settlement case with General Motors.

Sierra Club Great Lakes Program

In 1997, MSB prepared a report on toxic air pollution on behalf of the Sierra Club Great Lakes Program. Written to educate the general public, the report addressed the problems associated with toxic air pollution, current efforts to control toxic air pollution, and recommended approaches for clean air.

Public Service Electric & Gas Company

MSB in 1996 conducted an exhaustive review for the PSE&G air quality collaborative of emissions of ozone and fine particle precursors, air toxics, and other pollutants of concern. This effort included a review of atmospheric modeling, epidemiology, ecosystem effects, and the impacts of utility restructuring.

Boston Edison Settlement Board

In this 1995-96 project for the Boston Edison DSM Settlement Board, MSB examined the possibility of using an integrated approach to controlling NO_x, ozone, SO₂, CO₂, and air toxics in the New England region in light of future regulation. MSB analyzed the economic and air quality impacts of early plant retirements, gas conversions, and retrofitting of plants in the New England region.

System Planning/Distributed Utility Planning

The projects listed below provide some recent examples of MSB Energy Associates' work in system planning. MSB conducts supply-side planning, transmission planning, and production-simulation modeling, and calculates the emissions impacts of alternate plans. MSB has developed regulatory and analytical guidelines for distributed resource planning and analyzes distributed utility issues.

Confidential Utility Client

MSB is currently assessing the effectiveness of distributed generation for a large midwest utility.

Confidential Utility Client

MSB is currently assessing the technical, legal and financial opportunities and constraints to development of a green power program for a large midwest utility.

Concerned River Valley Citizens

In 1998, MSB provided expert engineering services for the CRVC to review the adequacy, need, planning and potential alternatives (transmission and distributed generation) of a proposed 230 kV transmission line in Eastern Minnesota and Northwest Wisconsin. Our analysis found that better alternatives to the power line exist and our conclusions were presented to the Minnesota Environmental Quality Board in November 1998. A regulatory decision is pending.

Hart Intervenors

In 1998, MSB provided the Hart Intervenors citizens group with technical support and analysis of a prposed Entergy 138kV transmission line. The results of the MSB analysis were presented to the Arkansas Public Service Commission.

Vermont Public Service Board

In 1997, MSB served as an independent investigator to assess Green Mountain Power Company's resource planning and contract management activities regarding purchased power from Hydro Quebec. MSB presented testimony regarding the imprudence of the utility's activities surrounding the contract in the rate case, and suggested disallowances.

Enron Corporation

In 1997-98, MSB is assisting Enron in evaluating the bulk electric power transmission system with respect to technical performance, available transmission capacity (MSB is a registered OASIS user), and policy considerations throughout multiple regions of the country.

Wisconsin Energy Bureau

Operating under a grant from the Wisconsin Energy Bureau, MSB in 1998 is led a coalition involving an investor-owned utility, the University of Wisconsin and the Wisconsin Energy Bureau to identify high value sites for the installation of photovoltaics as part of the utility's green power portfolio and/or to maximize grid benefits.

Environmental Law and Policy Center of the Midwest

MSB assisted ELPC in 1997 in analyzing the energy efficiency and renewable resource opportunities to replace inoperative nuclear units in the Midwest. This included estimating the future cost of making the nuclear units operable, the cost and availability of efficiency and renewables, and the capability of the transmission system to bring power into the Chicago area.

Citizens for a Better Way

MSB provided Citizens for a Better Way, an Ohio grassroots organization, technical support and analysis of Centerior Energy's proposed 138kV transmission line. Several lower-cost distributed resource alternatives were identified and presented to the Ohio Power Siting Board.

Alliance for Clean Energy Sources (ACES)

MSB assisted ACES in the 1994-1997 Wisconsin Advance Plan 7 proceeding by developing jointly with the utilities and other intervenor groups an approach to include the distributed utility concept, or targeted area planning, in Wisconsin's planning approach. MSB continued its work with ACES in 1996 and 1997 as part of this collaborative group to develop and apply new analytical tools and regulatory policies for electric transmission and distribution planning.

Electric Integrated Resource Planning

MSB's integrated resource planning expertise includes developing administrative rules, reviewing utility integrated resource plans, and developing independent integrated resource plans. There is little recent experience in this area because the practice of planning has, for the most part, disappeared for U.S. utilities.

PSE&G IRP Collaborative - Non-Utility Members

On behalf of the non-utility members of the Public Service Electric and Gas integrated resource planning collaborative, MSB in 1996 analyzed PSE&G's IRP process. MSB reviewed and made recommendations regarding planning tools, data, and supply- and demand-side resources.

Michigan Community Action Agency Association

In 1997, MSB analyzed and testified for MCAAA regarding Indiana-Michigan Power Company's proposed power cost recovery factors in the "Act 304" proceeding, Michigan's planning process. MSB evaluated the impact on fuel costs of I&M's power purchase and sale opportunities (especially in light of utility restructuring), load building impacts, and coal contract mix.

Missouri Public Service Commission

In 1995, MSB assisted the Missouri PSC in its review of the integrated resource plans of Kansas City Power and Light and Missouri Public Service Company. MSB prepared an analysis of the supply-side, system integration, and risk analysis portions of the plan, and assisted in the Commission staff's negotiations with the utilities.

Connecticut Light and Power Non-Utility Parties

In 1992-1993 MSB provided technical assistance to the non-utility parties in their collaborative working group evaluating the integrated resource planning efforts of Connecticut Light and Power.

Minnesota Department of Public Service

In 1992, MSB assisted the Department in reviewing and assessing the adequacy of the integrated resource plans of Northern States Power Company. As part of the review, MSB developed avoided costs for Northern States Power.