Corporate Finance Advisory for Large Power Utility

• Location: Southeastern United States
• Sectors: Utilities, Electric Utility
• Ownership: Public
• Situation Type: Corporate Finance Advisory/Strategic Consulting

Company Overview:

The Company is a large publicly traded electric utility operating in the Southeast U.S.

Situation:

In addition to its core power generation business, the Company operates a non-regulated division that sells
products and services to its power generation customers. Among other things, the Company sells and finances
home appliances, HVAC systems, heat pumps and other mission critical appliances to residential homeowners. The
Company hired Brookline to evaluate its non-regulated business and identify ways to improve profit margins,
increase cash flows and boost the Company’s overall return on equity (ROE).

Brookline Solution

After conducting a comprehensive review of the non-regulated business, Brookline completed several key
initiatives including the following:

1. Developed a dynamic financial dashboard that allowed the company to measure and manage the
   profitability of its non-regulated business
2. Formulated a more efficient logistics solution for delivery of retail products to residential consumers
3. Evaluated a new third-party warranty product to sell with the consumer goods
4. Devised a way for the Company to boost its ROE on its consumer loan portfolio through creative financing
   and free up cash flow to invest in other non-regulated businesses
5. Identified additional consumer products the Company could sell to its existing consumer base