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Principles of Valuation in the Power Sector--In Partnership with SNL Energy


A Two-Day Classroom Seminar (CPE Approved)

Register Soon to get Early Bird Pricing.

Principles of Valuation in the Power Sector is a comprehensive introductory training program that uses lectures, discussion and case studies to demonstrate how to value individual assets as well as 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.

Power Valuation - unlike generic valuation courses - focuses specifically on the energy sector. Over the course of two-days - in lectures, discussion and case studies - provides you with valuation concepts and methodologies that have direct application to the industry so you can hit the ground running.

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What You Will Learn
  • Identifying the valuation methodologies specific to the U.S. power sector, including DCF, comparables, multiples and real options
  • Understanding value drivers and capital structure
  • Techniques to find the data used for modeling assumptions
  • Valuing single plants, T&D assets, regulated generation assets and whole companies
  • Incorporating revenue drivers, including forward and spot pricing, and implied heat rates
  • Assessing M&A synergies and regulatory considerations
  • Understanding the role of power purchase agreements, tolling agreements, steam contracts and other financial arrangements Case studies, hands-on modeling and take-away templates
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Seminar Agenda
Untitled Document
7:45 am

DAY ONE

  • Registration and continental breakfast open
8:30 am

Introduction and Overview

9:00 am

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
10:30 am

Refreshment Break

10:45 am

Case Study: Discounted Cash Flow (DCF) Models

1:00 pm

Lunch

2:30 pm

Other Valuation Techniques: Comparables and multiples

  • 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?
3:30 pm

Refreshment Break

3:45 pm

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?
5:00 pm

Day One Wrap-up

8:00 am

DAY TWO

  • Continental breakfast opens
8:30 am

Valuation of a Regulated Utility

  • Overview of key valuation techniques, including value drivers, capital structure, and techniques for finding data to be used as inputs for valuation models
10:00 am

Refreshment Break

10:15 am

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
11:00 am

Valuing Regulated Generation Assets

  • Recovery of environmental compliance costs, off-system sales (decoupling) and fuel cost management-sharing formulas
12:00 pm

Lunch

1:00 pm

Putting the Pieces Together: Valuing an integrated utility

  • Financial flows, energy balances, corporate overhead
1:45 pm

Case Study: Testing Models and Assumptions

2:45 pm

Refreshment Break

3:00 pm

Other Valuation Issues

  • M&A and Regulatory Environment Considerations
    1. Estimating synergies between merged or acquired companies
    2. Accounting for regulatory requirements for approval, including impact on valuation of anticipated rate reduction
  • Valuation of other generation assets: Hydro, Nuclear, Coal, Renewables and Peaking Assets
    1. The unique characteristics of each production technology in the asset or company valuation
  • Regulatory Value Drivers
    1. Including recoverable vs. non-recoverable expenditures, stranded assets, multi-jurisdictional challenges, and allowable rate of return
  • Valuing Power Purchase Agreements (PPAs) and Tolling Agreements
5:00 pm

Summary and Wrap-up

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Hotel and Seminar Information
This two-day seminar will be held at the hotels listed below. The seminar will start promptly at 8:30 AM and will finish at 5:00 PM on the first day. On the second day, the seminar will resume at 8:30 AM and will finish at 5:00 PM. The program includes continental breakfast, lunch and all program work materials. Dress is casual for all seminars.
COVID 19 Information: Please click here for the PGS Covid-19 policy. You can confirm each hotel's specific COVID 19 policy using the link(s) provided below.
Registration Fee and Discounts
The price for this comprehensive two-day seminar is $2,395 (USD).
Register online or Call (843) 212-4038.
  • Additional attendees and government employees receive a 10% discount.
  • Register 4 or more attendees and receive 20% Off. Special pricing is available for groups of 5 or more.
    If you want attendees to pay with separate credit cards or have other questions, please call (843) 212-4038 for assistance.
Payments and Cancellations
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 26 Teal Lane • Hilton Head Island, SC 29926. Cancellations will result in a credit that is good for 2 years which can be transferred to a colleague. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (843) 212-4038.
CPE Credits in Specialized Knowledge

This live group seminar is eligible for 16.0 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.

PGS Energy Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements.
PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd. Please inform PGS Energy Training that you are a GARP CPE participant upon seminar registration.

The Global Association of Risk Professionals (GARP) is a not-for-profit membership association dedicated to preparing professionals and organizations for making better-informed risk decisions. GARP's membership represents more than 150,000 risk management practitioners and researchers at academic institutions, banks, corporations, government agencies, and investment management firms in 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and Energy Risk Professional (ERP) Exams – certifications recognized by risk professionals worldwide. Visit www.garp.org/cpd.
Who Should Attend

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.

Prerequisites and Advance Preparation

This program presumes familiarity with basic accounting and finance concepts. Participants will need to bring a laptop computer equipped with Microsoft Excel.

Why Choose PGS?

PGS in Partnership with SNL Energy seminars are known for their clear explanations and in-depth content. Register today, and join the energy professionals who have already attended one of these proven programs.

Program Level & Delivery Method
Intermediate level. CPE delivery method is "Group-Live."