Gas Transmission & Distribution

Gas local distribution companies (LDCs) are facing challenges on a number of fronts: higher and more volatile gas prices, which affect customer satisfaction, uncollectibles, and company-use gas costs; greater capital expenditure to ensure system integrity and replace aging infrastructure; significant changes in gas supply dynamics through LNG imports and new pipeline development; increased scrutiny from regulatory commissions; and investor pressure to increase profits and sustain the current rebound.

Oliver Wyman has assisted many companies in addressing these business challenges in the areas of:

Operations and separation of assets
Project planning and management
Acquisition targeting and assessment
Post-merger integration
Gas controls
Customer targeting and marketing effectiveness
Asset management
Reliability improvement
Revenue leakage / managing lost gas
Work management and field force productivity
Lean operations
Customer service optimization
Back office and support effectiveness
Storage/midstream asset utilization
Ancillary business strategy (e.g., appliance service)

Recent engagement examples

Performance improvement: Oliver Wyman has helped numerous LDCs reach a high level of performance and control over their operations. Driving out significant costs as well as increasing the visibility and consistency of operations have helped our LDC clients build stronger companies that deliver consistent results.

Revenue leakage: LDCs are finding that significant revenue is "leaking" out of their cash cycle, representing substantial opportunities to recapture value. Issues from increased lost/unaccounted for gas to unbilled/uncollected non-metered revenue all contribute to this leakage. With the array of opportunities and issues spread throughout the organization, no one function has the ability to drive the changes required to recapture this value. Oliver Wyman provides the programmatic approach and support to reach across the organization to effect needed changes.