Incorporating Transmission Congestion, Price Spikes & Ancillary Services Revenues Into A Real Options Framework Los Altos, California  

This workshop may be offered to individual companies at their convenience and will be customized to the specific needs of each organization.

Presented By   LCG Consulting Los Altos, California 94022 Tel: (650) 962-9670 Fax: (650) 962-9615




A Real Options perspective can contribute to the appropriate valuation of transmission and ancillary products and services. Rights to transmission can be evaluated as spread options between the receipt point and the delivery point. Ancillary products can likewise be valued using spread option (i.e. higher of ancillary product or energy product value) approaches. In this workshop we will discuss how to use these options valuation approaches and how they can be integrated into your overall generation asset valuation analysis.



  • Basic valuation approaches
  • Physical flows and constraints versus the contractual flows, terms and conditions
  • Alternate contractual mechanisms and impact on value
  • Specific examples from existing ISO structures
  • Assessment of regulatory uncertainty


LCG Consulting and the Presenters

LCG Consulting is actively involved in utility restructuring and competition in the U.S. and abroad, is an industry leader in providing specialized software and consulting services on planning, operations, asset valuation and pricing in power pools and competitive markets. LCG's UPLAN system integrates the following functional components:

Forward Market Model for energy and ancillary service auctions and bilateral sales.

  • The Real-time Dispatch Model using AC Optimal Power Flow (OPF) for congestion management, real-time prices, analyses of losses, loop flow, etc.
  • Multi-Market Analysis for evaluation of congestion and wheeling revenues, and comparison of tariff alternatives.
  • Monte-Carlo System for grid reliability and risk-aware financial analyses.
  • The Merchant Plant Model for assessment of new entrants and their impact on future prices and on future grid requirements.


Your speakers and case study leaders are as follows:

Dr. Rajat Deb, President of LCG Consulting and chief architect of the UPLAN program, is an internationally recognized authority in electricity industry restructuring and power system modeling.

Mr. Richard Albert, VP Consulting of LCG, is an industry expert in resource planning and evaluation. He has over 25 years of experience in utility planning and has been project manager for more than 150 restructuring and integrated resource planning studies.

Ms. Lie-Long Hsue, Director of Software Development at LCG, is an expert in optimal power flow (OPF) and ancillary service modeling and optimization of gas market simulations.


For more information, please contact

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