Cost Insights
by PowerAdvocate

Intelligence for energy companies seeking a data-driven approach to cost management

How Data Enhances Utility Supply Chain Value

March 15, 2017 at 1:57 PM / by Kristen Brewitt posted in Utility, Cost Transformation, Supply Chain Transformation, Data and Analytics

Utilities rely on supply chain to manage resources efficiently and effectively across a wide range of projects and operations. Delivering on this mandate is increasingly challenging – and critical – as utilities adjust operational cost models and investment strategies to satisfy stakeholders and stay competitive. By connecting new data sources for more accessible, powerful historic usage data, many utility Supply Chain organizations are enhancing their enterprise-wide value.


Collaboration and the Art of Utility Cost Transformation

January 26, 2017 at 10:20 AM / by Kristen Brewitt posted in Utility, Cost Transformation, Supply Chain Transformation

When it comes to the utility cost transformation journey, every group has a different role to play. Supply Chain organizations are in a unique position to apply their deep spend, cost, and supplier management expertise to help advance enterprise-wide objectives. One path for sustained value creation is through enhanced stakeholder collaboration – both internally with business units and externally with suppliers.


Adapting Supply Chain to the New Utility Business Model

January 24, 2017 at 6:01 PM / by Kristen Brewitt posted in Utility, Cost Transformation, Supply Chain Transformation

Utility Supply Chain continues to be in the spotlight, reflected in how much these organizations are asked to adapt and change. Driven by short-term earnings pressure, revenue challenges, and debt limitations, the C-suite needs more cost savings more quickly. The challenge for Supply Chain is to stay ahead of changing priorities and secure executive buy-in on the budget. While it may be easier said than done, earning the respect of business units helps pave the way to shared success.   


Webinar On-demand: Q3 2016 Utility Market Update – Trump, Steel and Freight

December 1, 2016 at 2:06 PM / by Jaclyn Tran posted in Utility, Market Update

Curious how the election of Donald Trump may impact your supply chain? Looking for new approaches to purchasing steel-based equipment within an environment of increasing protectionism? Wondering whether the bankruptcy of major shipping companies affects your logistics and freight costs?

Watch our Q3 2016 Quarterly Market Outlook webinar on-demand to get answers to questions like these and more.

2 New Metrics to Evaluate Gas Distribution Replacement Performance

October 6, 2016 at 11:44 AM / by Adam Pearson posted in Utility, Gas Distribution, Capital Projects, T&D

The scatterplot results from our previous blog post reveal two findings around utility gas distribution replacement rates that surprised us. First, our analysis shows that at the current rate of replacement, the majority of the industry will require at least 25 years to complete their programs. Second, we find capable, prominent companies plotted on the bottom of the y-axis – near a zero percent Replacement Rate. There are two metrics that help shed some light on what’s behind these findings.  


How Does Your Gas Distribution Replacement Rate Compare with Utility Peers?

September 20, 2016 at 7:29 AM / by Paul Cappello posted in Utility, Gas Distribution, Capital Projects, T&D

Gas distribution replacement programs are big, complex, and critical capital initiatives to manage. Natural gas utilities spend $22 billion and modernize 30,000 miles of distribution pipeline annually to ensure safety and to enhance system reliability and integrity.  From our experience providing technology and consulting to 14 of the top 50 U.S. gas utilities and helping them manage some $2.6 billion in annual gas infrastructure spend, we’ve seen utilities across the country ramp up their efforts to meet the challenge.


[launchPAd 2016] Debrief on Our 9th Annual User Group

August 3, 2016 at 1:32 PM / by PowerAdvocate posted in Cost Reduction, E&P, Utility, Midstream, Downstream

Thanks to everyone for our 9th successful User Group conference!

In today's post, we share a brief recap of the content, and if you're interested in hearing more about any of the presentations, just send us an email at, and we'd be happy to set you up with any of our presenters.

Members of the Energy Intelligence Group present their "State of the Market" update



The UK Votes to Leave the EU: Market Reactions to “Brexit” and Implications for Global Trade and Price Trends

June 27, 2016 at 9:45 PM / by Maciek Wojdakowski posted in Cost Reduction, E&P, Utility, Midstream, Downstream

In a referendum on June 23, a majority of voters in the United Kingdom decided to leave the European Union, one of North America’s largest trading partners. While the “Brexit” vote is theoretically non-binding and does not immediately put the UK outside of the EU, it creates substantial uncertainty for UK businesses and all those engaged in commerce with the country. The result immediately jolted global markets and raises the prospect of other EU members holding similar votes following the successful “Leave” campaign in the UK.

In today's post, we cover the significance of this event as well as the challenges it raises for energy Supply Chain organizations.


Hot-Rolled Coil Preliminary Duties Are Out. How Will They Impact Your Project Costs?

March 17, 2016 at 3:24 PM / by Energy Intelligence Group posted in Project Estimation, Cost Reduction, E&P, Utility, Midstream, Downstream

After much anticipation, both the preliminary antidumping and countervailing duties on hot-rolled coil have been announced by the Department of Commerce.  This high profile trade case has the potential to send steel prices soaring for many items that energy companies purchase. So how will these developments impact you?

Read on to learn what’s happened with hot-rolled coil and to receive a list of suppliers that are most impacted by these new duties.



4 Costly Problems with Your Spend Data

March 8, 2016 at 9:15 AM / by PowerAdvocate posted in Utility

At it’s core, conducting spend analysis to inform sourcing strategies relies on answering two basic questions about every transaction:

  1. What are you spending this money on?
  2. Who are you spending it with?

If you are able to answer these questions, you can answer the more complex questions listed below, and achieve significant savings:


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