Case Study
Major North American Power Generator Reduces Forced Outages to Generate $26.2M in New High-Margin Revenue
$26.2M
High-Margin Revenue Generated
Strategic Imperative
To generate in high-margin revenue by fully implementing the corporate operating model across three large power-generating plants in Phase I of a three-year post-merger integration plan, achieving premier top-decile ranking, and capturing greater high-margin earnings through increased commercial availability
Client Background
- Major U.S. energy holding company serving 8.7M electric customers, with approximately 55,700 MW of energy capacity
- Phase I scope included three large power-generating plants within a three-year post-merger integration plan
- Plant economics depended on commercial availability, forced-outage control, operating discipline, and timely revenue capture
- Strong top-quartile industry performance established a credible foundation for premier top-decile improvement
- Recent power-generation acquisition increased need to integrate culture, management practices, and the corporate operating model
- Forced outages constrained commercial availability, limiting access to additional high-margin revenue opportunities
Key Issues & Barriers
- Defined operating model was strong, but not fully implemented or practiced with consistent discipline
- Commercial sensitivity remained underdeveloped, weakening employee awareness of revenue and margin-capture implications
- Management infrastructure was not consistently executing to support timely operating decisions and performance control
- Core online and outage work-management processes lacked consistent compliance across planning, scheduling, execution, and follow-up
- Middle-level managers lacked the capability and knowledge required to move performance management to a higher level
- Internal resource constraints inhibited the robust change process needed to sustain disciplined operating-model adoption
Key Implementation Components
- Developed commercial availability modeling tool to show daily performance, shortfall value, and margin-capture opportunities
- Established commercial focus measurement, real-time communications, and feedback processes linking availability to plant operations
- Improved net-margin procedures and ROI-/EBIT-focused decision thresholds for plant operating and investment choices
- Deployed performance management metrics, reporting, work standards, and control points across the operating model
- Drove compliance in online and outage work management from origination through close-out
- Integrated corporate initiatives, continuous improvement routines, and supervisor coaching to reinforce sustained premier-operator behaviors
Benefits & Results
$26.2M
Annualized High-Margin Revenue Generated
73%
Forced Outage Hours Reduction
125%
Of Target Achieved