Michael E. Lillis
SENIOR CONSULTANT
PROFESSIONAL EXPERIENCE:
L. E. Peabody & Associates, Inc. (Since 1995) -- Mr. Lillis has over thirty-seven (37) years of experience solving economic, transportation and fuel supply problems for electric utilities throughout the United States. He organized economic studies, prepared reports and developed testimony on behalf of a number of major utilities, shortline railroads, trucking companies and other commercial interests.
Mr. Lillis participated in studies that utilize various formulas employed by the Surface Transportation Board ("STB") in the development of costs for common carriers, including the Uniform Railroad Costing System ("URCS") formula. He developed variable costs for common carriers with particular emphasis on the general purpose costing system for rail carriers. Mr. Lillis also performed extensive analyses in the area of stand-alone costing including route layout, design and construction costs, traffic and revenue development, forecasting and the development of detailed operating plans for various stand-alone railroads.
Mr. Lillis conducted numerous studies for electric utilities regarding least cost alternatives for coal and natural gas delivery to various power plants. These studies included the valuation of existing contractual arrangements for fuel supply and transportation service, the evaluation of alternative fuel sources and transportation options (including trucking coal from nearby railroad locations, rail built-out to a competing railroad and conveyor delivery) and the development of operating characteristics and the associated operating and investment costs for each alternative. He also developed numerous forecasts of coal prices, natural gas prices, freight rates and general economic indicators for electric utilities.
Mr. Lillis developed written testimony for presentation to federal courts and arbitration panels concerning contested provisions in fuel and transportation contracts including the operation of coal price adjustment mechanisms, gross inequity provisions, and the appropriate reopened price for nuclear fuel bundles based on the cost of fuel bundle fabrication. He also developed written testimony for presentation to State Corporation Commissions related to utility cost of service computations.
Mr. Lillis assisted utilities in determining the financial impact of inefficient rail service on the operation of electric generating stations.
PREVIOUS RELATED EXPERIENCE:
Prior to joining L. E. Peabody & Associates, Inc. Mr. Lillis worked for Western Fuels Association, Inc., ("WFA") a national fuel supply organization in the electric utility industry. While with WFA, he managed coal supply and rail transportation agreements for shippers that represented the membership of WFA. He organized and presented numerous economic studies and analyses for shippers relating to coal transportation, coal supply and related economic and regulatory problems. Mr. Lillis negotiated, implemented and monitored both long term coal supply and rail transportation agreements. Mr. Lillis conducted field trips to coal suppliers in Wyoming's Powder River Basin and New Mexico's San Juan Basin to develop on-site information used in the quantification of contract provisions and the development of operational mine costs. Mr. Lillis developed a database of delivered fuel costs to electric utilities based upon FERC/EIA information, as well as generally available market information.
EDUCATION:
Mr. Lillis received a BA in Economics from the University of Virginia. He has taken continuing education courses in law at the University of Virginia and has taken numerous graduate courses while enrolled in the MBA program at George Washington University.
