Asset Management

Kelson's asset managers specialize in the negotiation, management and optimization of key facility contracts. This focus assures compliance with legal and commercial obligations, while also exploring opportunities to reduce costs and streamline commitments. Kelson has significant experience in managing:

• Plant services agreements
• Interconnection agreements
• Energy management agreements
• Project loan agreements
• PILOT and other tax agreements
• Long term equipment maintenance agreements
• Real estate agreements

Kelson works with premier O&M service providers to staff, operate, and maintain our client plants. In this role, we typically:

• Manage the O&M provider, working directly with the plant management team to achieve the client's strategic and commercial objective.
• Manage relationships and contracts with key suppliers, including long term maintenance agreements with OEMs.
• Develop and manage budgets to balance client objectives and facility requirements including long term planning for capital investment.
• Develop annual revenue and operating forecasts based on client objectives and plant capabilities using proprietary market simulations.
• Provide engineering management and support for key activities, including capital project development and investment evaluation, root cause analyses, and equipment design reviews and optimization.
• Provide engineering management for plant thermal performance and reliability optimization.
• Evaluate potential facility performance upgrades and modifications considering economic impacts; technical/performance implications; transmission availability; and permitting requirements.

Kelson has engaged many prominent Energy Management service providers to actively participate in the local or regional energy and capacity markets that our plants reside in. In this role, we typically:

• Provide daily strategic guidance to the Energy Manager for day-ahead and real-time market offers and associated fuel purchases.
• Develop operating and risk protocols that incorporate our client's commercial and risk management objectives.
• Develop market offer parameters based on commercial objectives and plant technical capabilities.
• Develop and execute long term origination and hedging strategies for both energy and fuel.
• Review commercial settlement data provided by the Energy Manager.
• Use Kelson's proprietary market models to help optimize market participation.
• Monitor and participate in Regional Transmission Organizations and other stakeholder groups to promote our client's interests.

Depending on our client's needs, Kelson can customize a wide range of accounting services, interfacing between local plant staff functions and the client's financial team. These include:

• Implementation of accounting and bill payment software systems and processes.
• Implementation of treasury functions and controls including the establishment of bank accounts and cash management processes.
• Delivery of periodic financial reports including variance reporting against budgets.
• Supporting annual tax filings and audit processes.

Kelson manages the placement of property damage and liability insurances, as well as unique, niche policies to cover specific risks. Such support includes coordination with brokers and markets, and supporting technical assessments of the facilities.

While property tax assessments and processes vary significantly from region to region, Kelson routinely works with expert consultants to control property tax costs.

Kelson's team has extensive experience with federal, state and local regulatory requirements and has managed compliance for all plant life phases including development, construction, and operation. We always lead with a “culture of compliance,” installing that attitude in our plant teams and demonstrating it to regulatory authorities. Our areas of involvement typically include:

• Facility level Environmental, Health and Safety oversight
• North American Electric Reliability Corporation (NERC) program development
• Federal Energy Regulatory Commission (FERC) and Department of Energy (DOE) compliance and reporting

Kelson has extensive experience in providing asset management to facilities with multiple owners. We have instituted shared management protocols and successfully managed facilities on behalf of ownership consortiums.