The expanded number of market variables and increased requirement for strong corporate governance make incorporating risk into long-term resource decisions more important than ever. Pace’s Risk Integrated Resource Planning (Pace RIRP^SM) approach systematically addresses market volatility and major risk elements, overcoming many of the failures of traditional resource planning methods.

We distill a company’s long-term supply risk into a manageable and actionable analytical framework that allows for meaningful comparisons across a range of potential outcomes. Pace uses stochastic methods to establish the probabilistic range of impacts a firm bears from its specific energy supply portfolio. Further, Pace RIRP^SM allows distinct stress testing of the proposed supply plans across a wide range of viable outcomes including provisional events such as future climate change regulatory action. The consideration of climate change is among the most important considerations for effective resource planning and Pace incorporates the strategic impact that this future regulatory action may have on a company’s resource mix, competitive position, customer rates and stakeholder value.

From initial engagement to the development of the final portfolio recommendation, the Pace RIRP^SM approach is a collaborative process. We work with our clients to understand their business objectives and risk perspectives to establish current and future risk profile. We then construct resource options, consider the risk profile of each and evaluate against the strategic business objectives that have been established.