Power Valuation is a comprehensive introductory program using lectures, discussion and case studies to demonstrate how to value both individual assets and whole companies in the energy sector. The program is led by Jim Bowen, a veteran practitioner with over 15 years of experience valuing hundreds of power plants and utilities.
Unlike generic valuation courses, Power Valuation focuses specifically on the energy sector. You get information and techniques that have direct application to the industry.
Over the course of two days - in lectures, discussion and case studies - Power Valuation provides the background, perspective and tools you need to value individual assets and whole companies with confidence.
You'll leave the course knowing the essential concepts and methodologies it takes to succeed.
Day One
Registration and continental breakfast open at 7:45 a.m. Session begins at 8:30 a.m.
Introduction and Overview
Valuation of a Single Plant
• Discounted cash flow modeling of power assets
• 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
Case Study
• Discounted case flow models
Other Valuation Techniques: Comparables and Multiples
• Application and use of transaction and market peer comparables and multiples to single plant
Other Valuation Techniques: Real Options
• Real options, including growth, market switching and fuel switching options; and how to apply real options to plant valuation
• How could the plant be used outside of routine operations?
Valuation of other generation assets: Hydro, Nuclear, Coal, Renewables and Peaking Assets
• The unique characteristics of each production technology in the asset or company valuation
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
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
Putting the Pieces Together: Valuing an Integrated Utility
• Financial flows, energy balances, corporate overhead
Case Study
•Testing models and assumptions
M&A and Regulatory Environment Considerations
• Estimating synergies between merged or acquired companies
• Accounting for regulatory requirements for approval, including impact on valuation of anticipated rate reduction
Regulatory Value Drivers
• Including recoverable vs. non-recoverable expenditures, stranded assets, multi-jurisdictional challenges, and allowable rate of return
Valuing Power Purchase Agreements (PPAs) and Tolling Agreements
• Understanding PPAs, tolling agreements, steam contracts, and similar financial arrangements
Day Two concludes at approximately 5:00 p.m.
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This live group seminar is eligible for 18.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.
Finance, corporate development/strategy, and investor relations professionals at power and gas companies. Professionals in investment banking, project finance, asset management, hedge funds, or equity-fixed income research. Also,consultants, accountants and lawyers who advise power and gas clients. Current and potential suppliers or professionals looking for an understanding of how Wall Street analyzes the power and gas sector and the fundamentals that bear on their analyses.
This program presumes familiarity with basic accounting and finance concepts. Participants will need to bring a laptop computer equipped with Microsoft Excel.
Attendees leave SNL Energy training seminars with practical tools and greater insight into the power sector, delivered by professionals from within the power sector who have successfully faced the same challenges you face in areas that include rate cases, utility mergers and acquisitions,utilities accounting, credit analysis and valuation. Try us out, and learn why over 1,000 energy companies, commercial and investment banks, investment managers, regulators, and others trust SNL Energy to provide their professionals with market leading training and intelligence solutions.