Day One

Registration and continental breakfast open at 7:45 a.m.

Session begins at 8:30 a.m. 

Introduction and Overview of Course

Valuation of a Single Plant: Discussion

• Discounted cash flow modeling of power assets
• Creation of free cash flow projections
• Revenue drivers, including forward strips vs. predicted spot prices; implied  heat rates
• Plant costs, including fixed costs, depreciation, and fired hour costs; other non-cash items; application of initial and ongoing capital expenditures;
• Calculating terminal value and computing discount rates

Refreshment Break

Single Plant Valuation: Case Study

• Hands on opportunity to work with and test discounted cash flow models and assumptions

Lunch

Group Discussion: Single Plant Valuation Case

Other Valuation Techniques: Comparables and Multiples

• Application and use of transaction and market peer comparables and multiples to single plant valuation
• Identification of valid peers

Refreshment Break

Other Valuation Techniques:  Real Options

• Examine real options including growth, market switching, and fuel switching options, and how to apply them to plant valuation 
• How could the plant be used outside of routine operations?

Day One concludes at approximately 5:00 p.m.

Day Two

Continental breakfast opens at 8:00 a.m.

Session begins at 8:30 a.m.

Valuation of a Regulated Utility: Discussion

• Overview of key valuation techniques, including value drivers, capital structure, and techniques for finding data to be used as inputs for valuation models

Refreshment Break

Valuing Transmission and Distribution Businesses and Assets

• Regulated rate of return, customer service costs, reliability and operating risk, rate base assets, fuel cost recovery and cost sharing formulas

Valuing Regulated Generation Assets

• Recovery of environmental compliance costs, off-system sales (decoupling), and fuel cost management

Lunch

Putting the Pieces Together: Valuing an Integrated Utility

• Financial flows, energy balances, corporate overhead

Integrated Utility Valuation: Case Study

• Hands-on opportunity to work with and test models and assumptions

Refreshment Break

Group Discussion: Utility Valuation Case Study

Other Issues: M&A Considerations, Regulatory Environment

• Estimate synergies between merged or acquired companies and purchaser
• Account for regulatory requirements for approval, including impact on valuation of anticipated rate reduction

Day Two concludes at approximately 5:00 p.m.

Day Three

Continental breakfast opens at 8:00 a.m.

Session begins at 8:30 a.m.

Valuation of Generation Technologies Other Than Gas: Hydro, Nuclear, Coal, Peaking Assets

• Including unique characteristics of each production technology in the asset or company valuation

Valuing Power Purchase Agreements (PPAs) and Tolling Agreements

• Understanding PPAs, tolling agreements, steam contracts, and similar financial arrangements

Refreshment Break

Gas LDCs and Other Non-Electric Business Units

• Incorporating non-power subsidiaries into the utility holding company valuation

Regulatory Value Drivers

• Including recoverable vs. non-recoverable expenditures, stranded assets, multi-jurisdictional challenges, and allowable rate of return

Valuing Renewable Assets

• Understanding the sources of renewable asset value, including conventional value and value of subsidies, production and investment tax credits, special incentives, and feed-in tariffs

Day Three concludes at approximately 1:00 p.m.