||COMGAS (Natural Gas – Brazil)|
|Comgas is the largest natural gas distribution company of Brazil located in a highly competitive market.
Setting energy prices for consumers in competitive markets is particularly challenging for regulated utilities. The company aims to maximize business value while meeting constraints of public regulatory agencies. BG Group wanted an analytic decision tool to explore and optimize the effects of changing consumer tariffs, to be used by natural gas distribution companies in several parts of the world, including South America and India.
The tool had to model the price elasticity of demand, capital investments, and the effects on operating costs over time. This information feeds a financial model to evaluate the effect on financial returns and company value.
One of the main uses of the planning model implemented at Comgas is to explore and discover the combination of tariffs and investments that maximizes company outputs captured on financial statements.
The benefits of collaboration through implementing and integrated planning model had spread deeply in Comgas organization driving the creation of an integrated planning department formed by representatives from every area of the company.
||Panama Canal Authority (Transportation – Panama)|
|The Panama Canal is a 77 km (48 mi) ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade.
On September 7, 1977 the President of the United States Jimmy Carter and Omar Torrijos of Panama signed a treaty guaranteeing the permanent neutrality of the canal. The treaty led to full Panamanian control effective at noon on December 31, 1999, and the Panama Canal Authority (ACP) assumed command of the waterway.
The treaty impose on Panama-ACP a main restriction on setting tolls: they cannot discriminate tolls based on origin-destination of vessels.
This constraint imposes to answer a critical question for ACP. How much should ACP charge for crossing the canal? If tolls are to low you will be leaving money on the table and operating a congested facility. If tolls are too high some ships will decide to take the alternative routes and you will have idle capacity.
In order to help on setting tolls for the canal it was developed a Cubeplan planning model that computes the cost of transporting goods through almost 1000 routes with origin and destination in 200 ports. The cost is calculated for each market segment (container, dry bulk, car carriers, Liquid Bulk) for different vessels sizes and operating under different conditions (laden/ballast, etc).
With this tool the ACP is now capable of discovering how competitive they are when they increase or decrease their tolls.
||Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE) – (Electricity – Dominican Republic)
|This state owned energy holding controls 3 distribution companies, 1 transmission company and 1 power generation company that operates 21 generation companies.
Electricity in this country has been subsidized for attending poor population sectors and the cost of the subsidy is one of the most important line in the country annual budget.
During the oil price peak occurred in 2008 the electricity subsidy became a presidential concern. The CDEEE has the task of accurately estimate the amount of subsidy the government has to finance. The process of elaborating the answer used to take2 weeks and its accuracy was on doubt.
In order to speed up that process and to gain transparency and confidence on the calculated number it was developed a model that projects the entire energy sector of Dominican Republic.
The model includes projecting demand for each region and tariff category. Then it has a module for dispatching power units minimizing the cost of supplying. Latter operational expenditures and investments where projected. And at last all that information feed complete financial statements for each company.
As a result from implementing a Cubeplan based solution, the time for estimating has been reduced to hours and the planning model is used for several other purposes.
||Hospital del Trabajador de Santiago (Healthcare – Chile)|
|This leading Chilean institution wanted an integrated planning model that helps them understanding how to extract the maximum value from its infrastructure, and decide the best way to grow.
The model developed includes all parts of hospital business allowing them to answer several types of critical business questions.