Silverpoint Consulting's principal has over twenty-five years of experience conducting management audits at regulated electric and natural gas utilities. As one example, Silverpoint conducted a comprehensive management performance audit on behalf of New Jersey regulators that encompassed areas such as distribution system operations and maintenance, T&D capital planning and construction, system reliability, emergency preparedness, storm restoration capability, customer service, strategic planning, governance, finance, human resources, IT, affiliate relations, and cost allocation. Specific areas of focus in that audit included cybersecurity, implementation of smart grid and advanced metering technologies, and distributed energy resources.
The public version of the final report from that engagement is available on the New Jersey BPU website at https://www.bpu.state.nj.us/bpu/pdf/boardorders/2019/20190807/8-7-19-1B.pdf.
The public version of the final report from that engagement is available on the New Jersey BPU website at https://www.bpu.state.nj.us/bpu/pdf/boardorders/2019/20190807/8-7-19-1B.pdf.
∙ REPRESENTATIVE SILVERPOINT PROJECTS ∙
Electric and Gas Utility Management Performance Audits
Natural Gas Procurement Policies and Practices
Silverpoint Consulting completed a detailed review of natural gas procurement policies and practices at a multi-state natural gas distribution company, Washington Gas Light, on behalf of the Public Service Commission of the District of Columbia in 2017. As part of the investigation, our team evaluated the efficiency and effectiveness of the company's default gas supply functions, including demand forecasting, capacity resource portfolio planning, commodity procurement, and management of transportation, storage, and peaking assets. We also evaluated the utility's asset management efforts and its risk management practices, including physical and financial hedging. Silverpoint conducted similar gas procurement audits at Washington Gas in 2021 and 2025, as well as at gas utilities in other states.
A copy of the public version of our final report from our first audit at Washington Gas is available on the DC Commission’s website: https://edocket.dcpsc.org/apis/api/Filing/download?attachId=18273&guidFileName=c46f5602-094f-46ba-8fa1-d0a38011e8e2.pdf.
Electric Distribution System Infrastructure
Silverpoint Consulting was selected by the Maryland Public Service Commission to conduct an evaluation of the long-term infrastructure hardening plans and storm restoration improvement plans submitted by the state's six electric distribution companies. A copy of the public version of our final report from that engagement is available on the Commission’s website (Item 98 in Case No. 9298):
https://webpscxb.psc.state.md.us/DMS/case/9298
In another engagement, Silverpoint testified on behalf of Delaware Commission Staff regarding our team’s evaluation of the appropriateness of Delmarva Power & Light’s proposed distribution infrastructure and reliability-related investments.
In another engagement, Silverpoint testified on behalf of Delaware Commission Staff regarding our team’s evaluation of the appropriateness of Delmarva Power & Light’s proposed distribution infrastructure and reliability-related investments.
Storm Preparedness and Response
During 2012, Silverpoint Consulting worked for the Massachusetts Attorney General's Office, providing technical support and expert testimony in connection with the Department of Public Utilities' investigation into the response by the state's electric utilities to the October 2011 snowstorm. Our team examined utility pre-event preparedness and operational response, including the timeliness of its requests for outside assistance. We also evaluated the quality and effectiveness of utility communications with customers and with state, local, and municipal officials before, during, and after the event.
Verizon Performance Assurance Plans
During 2012, Silverpoint Consulting completed a review of Verizon’s wholesale performance metrics and performance assurance plan remedies on behalf of the Pennsylvania Public Utility Commission. As part of our investigation, we verified the integrity and accuracy of the underlying data, which originate from Verizon’s pre-ordering, ordering, provisioning, maintenance and repair, and billing operational support systems. We confirmed that the company’s calculation procedures conformed to established carrier-to-carrier guidelines. The team also ascertained whether the company’s metric and statistical test calculations were mathematically correct and consistent with documented procedures.
Silverpoint conducted a similar investigation on behalf of the Massachusetts Department of Telecommunications and Cable in 2013.
Pepco Reliability and Service Quality
Silverpoint Consulting LLC and First Quartile Consulting completed an evaluation of the reliability and quality of the electric distribution system of Potomac Electric Power Company (Pepco) for the Maryland Public Service Commission. The team examined the adequacy of Pepco’s system infrastructure and considered the sufficiency of its reliability-related capital investments and system maintenance practices, including vegetation management. We identified the root causes for Pepco’s reliability problems and evaluated the most recent set of initiatives the company offered to address them. Part of our charter was to evaluate Pepco’s emergency preparedness and restoration efforts during four major storm events of 2010. We assessed the company’s physical restoration efforts and the effectiveness of its communications with customers during the outages. The team also investigated the underlying causes for Pepco’s difficulty in providing customers with a reliable estimated time of restoration.
A copy of our final report in Case No. 9240 is available on the Commission website (Item 44 in Case No. 9240):
https://webpscxb.psc.state.md.us/DMS/case/9240
FirstEnergy – Allegheny Energy Merger
Silverpoint Consulting LLC, in conjunction with the law firm of Nixon Peabody LLP, served as advisors to the Maryland Public Service Commission in connection with its evaluation of the acquisition of Allegheny Energy, Inc. by FirstEnergy Corp. Silverpoint Consulting's principal was the team’s lead on non-legal issues, and managed the contributions of the consulting team’s financial, investment banking, utility operations, accounting, and energy market subject matter experts. Prominent issues in this proceeding included the adequacy of ring-fencing provisions and the quantification and sharing of expected net merger savings.