Cliff Hamal, Managing Director and Principal at Navigant Economics, specializes in economic issues in the electric power and related industries. For 30 years he has been involved in a wide variety of engagements, as an economic consultant since 1989 and in technical roles involving power system operations in prior years. Mr. Hamal brings to each assignment a deep understanding of the industry, its operations, and the dynamics of its markets. He approaches each engagement openly, allowing the unique circumstances of each situation to determine the analyses and methodologies most likely to provide insights into the relevant issues. He particularly enjoys unique challenges that require tailored solutions. His clients have included vertically integrated electric utilities, unregulated electric generation companies, load serving entities, fuel and pipeline companies, equipment suppliers, a debt rating agency, a hedge fund and the US Department of Justice. He has provided testimony in cases before the Federal Energy Regulatory Commission, federal courts, state public utility commissions, and the Ontario Energy Board.
Topical Summary of Prior Engagements
Market Design
Support electricity market development, including analysis of rules, development of modifications, evaluation of likely participant behavior, and assessment of strategic implications. Analyze capacity markets and provide recommendations for their development and evolution. Review dispatch algorithms to determine how subtle changes could affect market prices and efficiencies. Develop market rules that address the potential exercise of market power during periods of congestion.
Competitive Strategy
Assess investment opportunities in electricity generation market. Evaluate a new merchant transm! ission project that would face unique technical challenges. Analyze th e potential for repowering a generation facility. Assist in the establishment of a power marketing organization and the development of its strategy. Model a large generation portfolio and evaluate divestiture options. Evaluate business opportunities and public policy options for equipment suppliers.
Power Purchase Agreements
Negotiate and renegotiate power purchase agreements. Review whether changes to force majeure practices could lower energy costs. Evaluate contract pricing terms in light of changed market circumstances. Review implications of "good faith" terms on specific circumstances related to changed market circumstances. Analyze the value of a power contract to assess employee compensation claims. Work with investors to structure power purchase terms that might replace an industrial firm's ownership in power generation facilities.
Investment Analysis
Evaluate the value of power generation facilities for a potential buyer. Analyze pa! rtnership opportunities related to new projects in development. Evaluate price forecasts and revenue projections for project-financed investments to support credit ratings by Standard & Poor's. Evaluate investment opportunities at existing facilities related to repowering, pollution control upgrades, and other modifications. Review a company's acquisition history to evaluate its investment decisions.
Environmental Strategy
Analyze implications of cap-and-trade and carbon tax climate change initiatives. Investigate strategic implications of changing environmental regulations. Provide a comprehensive analysis of the effect on the U.S. economy of policies adopted to promote green-collar jobs and environmental benefits. Evaluate pollution control equipment upgrades and fuel switching options related to meeting emission standards. Consider implications of new environmental regulations on asset values.
Antitrust Analyses
Evaluate the implication of ! mergers and asset acquisitions on market power before the Federal Ener gy Regulatory Commission and the US Department of Justice. Prepare market based rate applications using FERC's market screen and Appendix A methodologies. Evaluate claims of antitrust violations under the Clayton Act.
Electricity Market Participant Behavior
Evaluate participant behavior in markets, including bidding patterns and generation unit availability. Analyze differences in market dynamics and participant behavior in real-time, day-ahead, and longer-term energy markets. Evaluate claims of inappropriate market behavior by generators. Evaluate the behavior of a financial participant in energy and financial transmission rights (FTR) markets. Evaluate ancillary services markets regarding the implications of different market structures on participant behavior. Analyze the potential for specific trades to influence reported market prices.
Economic Testimony
Testify regarding damages in cases involving breach of contract. Serve as an arbitrator ! in an insurance claim matter involving the value of lost electricity generation. Testify on power contracting issues. Opine on market design issues. Testify regarding cost responsibilities for must run generation in a dispute centering on changes in the electricity market structure. Testify regarding electricity price forecasts associated with stranded cost recovery.