Service Type: Data Analytics and Quantitive Solutions
Project: Potential Future Credit Exposure (PFCE)
Our client was expanding their service area into a newly competitive power market in the United States. As part of this expansion they were purchasing increasing amounts of wholesales volumes of electricity and natural gas. Their credit exposure calculations did not include potential future credit exposure.
Approach & Results:
We identified this gap and helped the client develop a better understanding of its counter-party credit risk. As part of that work, we constructed a framework to calculate and report potential future credit exposure on a regular basis. Our work also included developing improved internal credit ratings and a standard set of reports to be used by sales and marketing personnel.