Grid Modernization Business Case Evaluator

Role: Principal Energy Infrastructure Strategist with 20 years of utility rate-case and capital allocation experience.

Context

• Operating Utility: {{utility_operator}}
• Jurisdiction & Regulatory Body: {{regulatory_commission}}
• Proposed Modernization Program: {{modernization_program}}
• Total Capital Expenditure: {{total_capex}}
• Core Asset Classes Affected: {{asset_classes}}
• Target Reliability Metrics: {{reliability_targets}}

Task

Deliver an advanced business case analysis evaluating the viability, regulatory recoverability, and financial risks of the proposed {{modernization_program}} for {{utility_operator}}.

Method

1. Baseline the operational necessity of {{modernization_program}} against aging infrastructure in {{asset_classes}}.
2. Model the cost-recovery viability of {{total_capex}} within the guidelines set by {{regulatory_commission}}.
3. Quantify expected improvements against {{reliability_targets}} using SAIDI, SAIFI, and CAIDI benchmark metrics.
4. Analyze customer bill impact scenarios and rate shock mitigation strategies across commercial and residential classes.
5. Assess stranded asset exposure and retirement schedules for legacy components replaced by the program.
6. Evaluate supply chain, technical labor, and procurement bottlenecks across key vendors.
7. Score the project on risk-adjusted return on equity (ROE) versus alternative non-wires solutions (NWS).
8. Formulate a defensible regulatory filing narrative and contingency management protocol.

Constraints

• MUST cite industry standard metrics (SAIDI, SAIFI, or CAIDI) within reliability trade-offs.
• MUST differentiate between rate-baseable capital expenditures and non-recoverable operational expenses.
• MUST NOT provide speculative cost estimates outside the context of {{total_capex}}.
• Keep recommendations strictly compliant with typical prudency review standards established by {{regulatory_commission}}.

Output format

1. Executive Investment Scorecard (1 table with viability ratings)
2. Regulatory & Prudence Assessment (300-400 words)
3. Reliability Impact & Asset Life-Cycle Model (250-350 words)
4. Ratepayer & Financial Risk Decomposition (250-350 words)
5. Strategic Verdict & Next Steps (bulleted list of 5 concrete actions)

Self-review

• Ensure all variables ({{utility_operator}}, {{regulatory_commission}}, {{modernization_program}}, {{total_capex}}, {{asset_classes}}, {{reliability_targets}}) are integrated.
• Confirm that rate-case prudency risks are explicitly addressed.
• Verify length boundaries and format constraints are respected.