Project Background: Lincoln Electric System (LES) is a public utility providing electricity to approximately 121,494 retail customers (meters) and has Total Operating Revenues of $168,487,700 as of December 31, 2004. LES currently uses a financial modeling system to aid in decision and rate making and to display the financial condition of LES to the rating agencies.

The current financial modeling software was developed over 25 years ago. System stability of the existing technology is a risk to LES as is potential incompatibility with new operating systems. Upgrading the system to add new financial tests and indicators for use by management and outside analysts provides additional limitations. The new system will provide the ability to electronically exchange inputs and outputs and the ability to perform analysis on alternative financial scenarios.

Project Goals: The goals of the corporate financial model are to provide the ability to

analyze corporate historical and future financial conditions,
quickly produce and track results of various financial services,
produce the information and reports required by financial rating agencies,
have system portability, so that it will operate with or without network connectivity, and
complete sensitivity analysis on key variables.