This letter / 01
My portfolio total counted improvements that could not simply be added
Standalone opportunities can interact when they change the same system. Strategy needs an account of the combination before the arithmetic becomes a promise about the portfolio.
I approved the total because the underlying work looked serious. Twelve standalone efficiency estimates had been assembled into a portfolio paper, and the sum was 19.2 GWh a year. Each estimate had a purpose. What I failed to ask was whether the measures could be combined on the basis the total implied. Several affected the same system. Their individual accounts did not establish the benefit of implementing them together. The arithmetic was not the difficult part; the strategic interpretation was.
