Energy Training & Electric Power Classroom Seminars

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. Click here to register.

1. Identifying the valuation methodologies specific to the U.S. power sector, including DCF, comparables, multiples and real options
2. Understanding value drivers and capital structure
3. Techniques to find the data used for modeling assumptions
4. Valuing single plants, T&D assets, regulated generation assets and whole companies
5. Incorporating revenue drivers, including forward and spot pricing, and implied heat rates
6. Assessing M&A synergies and regulatory considerations
7. Understanding the role of power purchase agreements, tolling agreements, steam contracts and other financial arrangements
8. Case studies, hands-on modeling and take-away templates

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.

Jim Bowen is President of Momentum Development Corporation, which provides advisory and management services to clients in the energy sector, including banks, investment funds, and principal investors. He has been an instructor for SNL Center for Financial Education for more than two years.

As a veteran consultant in the energy industry, he has valued hundreds of power plants, integrated utilities, transmission and distribution systems, power purchase agreements, tolling agreements, options, and midstream and downstream energy assets.

Jim regularly taught in-house for McKinsey & Company, and was an adjunct faculty member at the U.S. Military Academy at West Point. Prior to founding Momentum Development, Jim was a consultant with McKinsey, a litigation attorney with Akin, Gump, Strauss, Hauer & Feld LLP, and an officer in the U.S. Army.

He holds a J.D., cum laude, from the Harvard Law School, an M.Sc. in Financial Management from the University of London, and a B.S. in Economics from the U.S. Military Academy.

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.

Intermediate level.

Group-live.

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.

Register Now and invest in your future. The price for this comprehensive two-day seminar is $2,395 (USD).

• Additional attendees and government employees receive a 10% discount.
• Members of TOGA, AIPRO, INGAA or IOGA-NY receive a 15% discount. Please call (440) 853-1038.
• Sign up for 4 or more classroom seats during the same month and all attendees will receive a 20% total discount.
  (If you plan to register 4 or more classroom seats, but want attendees to pay by separate credit cards, register one party now and mention this fact in the "Comments" section of the registration form. We will manually subtract the 20% discount from the first registrant's seminar fee. Tell other parties in your group to mention your name when they register, and we will give them the 20% discount as well.) Please call (440) 853-1038 for more information.
  Special pricing is available for groups of 5 or more. Please call Janice Ohmura at (440) 853-1038.

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, Diners Club, 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 can be made up to five (5) business days prior to the start of the seminar for a full refund. No refunds will be made thereafter, but a one year full seminar credit will be given toward future workshops upon receipt of $175 which will used to help offset the non-refundable food, beverage, manual and other expenses incurred by PGS. Substitutions may be made at any time. If PGS needs to cancel a seminar due to instructor unavailability, lack of attendance or other unforeseen reason, you will be offered the choice of rescheduling for another seminar, a seminar credit, or a refund. PGS will not be responsible for any airline, hotel or other fees in such situations. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.

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.

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.learningmarket.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements. PGS telephone seminars are eligible for CPE credits only if seminar participants use the printed seminar slides - not the Internet posted slides.