Principles of Valuation in the Power Sector--In Partnership with S&P Global Market Intelligence
Join us for two full days of comprehensive training, providing the skills you need to quickly and accurately value individual U.S. power sector assets and whole companies. You will learn by doing - studying real-world case studies, rather than getting mired in theoretical abstractions. You will also take home time-tested model templates that will save you effort as you apply these techniques when you return to your business.
This comprehensive introductory program uses lectures, discussion and case studies to demonstrate how to value individual assets as well as whole companies. The program is specifically focused on the energy sector, led by an active practitioner and will give you practice in real-world case studies to provide you with the knowledge to apply these techniques in your own business.
This course is produced by the Knowledge Center, expert training from S&P Global Market Intelligence. Unless otherwise noted, instructors are not affiliated with S&P Global Market Intelligence or PGS Energy Training. This course will only be held twice this year and seats fill quickly, so register now to secure your place.
- 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
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
- 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
- Mitigating Risks to Value
- 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
COVID-19 Information: Please see the PGS COVID-19 policy. You can confirm each hotel's specific COVID-19 policy using the link(s) below.
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. Call (843) 212-4038 for assistance.
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees are charged at the time of registration unless other arrangements have been made. Checks payable to “PGS Energy Training,” 26 Teal Lane, Hilton Head Island, SC 29926. Cancellations result in a credit good for 2 years, transferable to a colleague. Substitutions may be made at any time. For more on PGS policies, contact our offices at (843) 212-4038.
This live group seminar is eligible for 13.5 CPE credits in Specialized Knowledge. 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 accepts one-half credits.
PGS is a NASBA-registered CPE sponsor and a GARP-approved CPD provider, so see accreditation details.