IN-PERSON CLASSROOM SEMINARS

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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.

Join us for two full days of comprehensive power valuation training, providing the skills you need to quickly and accurately value individual U.S. power sector assets and whole companies. The power valuation techniques you'll learn are specific to the industry, so you can apply these principles immediately in your day-to-day efforts.

You will learn by doing - studying real world case studies, rather than getting mired in theoretical abstractions. Build your knowledge of power assets, power plant valuation, power purchase agreements and tolling contracts and utility valuation. You will take home time-tested model templates that will save you effort as you apply these techniques yourself.

Please note: This course is only being held twice this year and seats fill quickly, so register now to secure your place!

What You Will Learn
  • Create more accurate valuations by applying the standard valuation methods, including DCF, comparable analysis, and multiple analysis
  • See how to get the data that is used in standard modeling assumptions
  • Learn how to incorporate market based revenue and cost drivers, including forward and spot pricing and implied heat rates to develop more relevant, robust valuations
  • Discuss the role of PPAs, tolling agreements, steam contracts, and other financial arrangements that affect the value of a deal
  • Gain invaluable real world insight from a seasoned, world class instructor with decades of transaction experience in the power sector
  • Practice using take-home models that value single plants, T&D assets, regulated generation assets and whole companies so you can apply the principles you've learned immediately upon your return to work
Seminar Agenda
Untitled Document

Day One  

8:00 am

Registration and Continental Breakfast Open

9:00 am

Introduction and Overview

9:05 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

12:00 pm

Lunch

1:00 pm

SNL Product Features for Valuation Overview

1:30 pm

Valuing Power Purchase Agreements (PPAs) and Tolling Agreements

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

2:15 pm

Other Valuation Techniques: Comparables, Multiples, Real Options

  • Application and use of transaction and market peer comparables and multiples to single plant valuation
  • 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?

3:00 pm

Refreshment Break

3:15 pm

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

4:15 pm

Other Valuation Issues: M&A and Regulatory Environment Considerations, Regulatory Value Drivers

5:00 pm

Day One Concludes

Day Two

8:30 am

Continental Breakfast Opens

9:00 am

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

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

Renewables Valuation

  • 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
  • Regulatory Value Drivers
    1. Including recoverable vs. non-recoverable expenditures, stranded assets, multi-jurisdictional challenges, and allowable rate of return
  • Mitigating Risks to Value
    1. What are some of the common drivers of volatility in valuations and how can those drivers be mitigated

3:45 pm

Mitigating Risks to Value

4:00 pm

Program Concludes

Hotel and Seminar Information
This two-day seminar will be held at the hotel listed below. The seminar will start promptly at 8:00 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 4:00 PM. The program includes continental breakfast, lunch and all program work materials. Dress is business casual.
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 (440) 853-1038.
  • 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 (440) 853-1038 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 (440) 853-1038.
CPE Credits in Specialized Knowledge

This live group seminar is eligible for 13.5 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. The SNL Energy seminars are produced by the Knowledge Center, expert training from S&P Global Market Intelligence. Register today, and join the energy professionals who have already attended one of these proven programs.

Program Level & Delivery Method
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level. Delivery method is "Group-Live.”