A major Midwest utility faced rapidly increasing operating and maintenance (O&M) expenses in its generation business, as well as substandard plant performance. SDG worked closely with the client to redesign its generation resource allocation process. The resulting process enabled the company to compare all capital and O&M investments based on their impact on shareholder value, cash flow, earnings, and enhancements to plant performance.

The project transformed the annual budget process, eliminated about 30% of the capital and O&M budget, and increased plant performance throughout the past few years. This value-based resource allocation process is now becoming the standard across the organization, and will soon be used in the electricity and gas delivery businesses as well.