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Principles of Valuation in the Power Sector - November 2013  -  November 5-6, 2013

7:45 am

DAY ONE - Tuesday, November 5

  • 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 - Wednesday, November 6

  • 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

James W. Bowen
President, Momentum Development Corporation

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 Knowledge Center for over two years.

As a veteran consultant in the energy industry, Jim 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 has taught regularly at McKinsey & Company's internal training programs, 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, a Master of Finance from the University of London, and a B.S. in Economics from the U.S. Military Academy.

Event Date:
November 5-6, 2013
Event Location:
The Houstonian Hotel
111 N Post Oak Lane
Houston, TX, US
Registration Fee:
$2,395 
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Principles of Valuation in the Power Sector is designed for:

  • 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
  • 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:

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

Event Date:
November 5-6, 2013
Venue:
The Houstonian Hotel
111 N Post Oak Lane
Houston, TX, US
Phone:
713-316-5944
Accommodations:
A block of rooms at the The Houstonian Hotel has been reserved for program attendees at a special rate, starting at $239 per night, exclusive of taxes and fees. Discounted rates are available through October 14, 2013 or until the block is filled, whichever comes first.

To reserve your room, please call the hotel directly at (800) 231-2759 and mention SNL Principles of Valuation in the Power Sector.
CFA Institute
13.5 Professional Development hours
SNL Knowledge Center is registered with CFA Institute as an Approved Provider of professional development programs. This program is eligible for 14 PD credit hours, as granted by CFA Institute. If you are a CFA Institute member, PD credit for your attendance at this event will be automatically recorded in your PD Diary.
National Association of State Boards of Accountancy
16 hours of CPE credit
Participants attending the entire program qualify for 18 CPE credit hours (Specialized Knowledge and Applications). Program Level: Intermediate. Delivery Method: Group-Live. SNL Knowledge Center 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 addressed to the National Registry of CPE Sponsors, 150 4th Ave N, Ste 700, Nashville, TN, 37219-2417. Web site: www.nasba.org
What is the dress code?
Business casual

Do I need a laptop?
Yes, because this seminar features Excel based analysis, participants will need to bring a laptop computer with access to Microsoft Excel and a calculator.  

What is the cancellation policy?
Cancellations for this program are eligible for a full refund, less a $150.00 administrative fee, if received at least 15 business days prior to the start of the program. Cancellations received after that date but at least 5 business days prior to the start of the program receive a credit in the amount of the registration fee, less a $150.00 administrative fee, to attend another SNL Knowledge Center program within 13 months. Cancellations received fewer than 5 business days prior to the start of the program are not eligible for a refund or credit.

Attendee substitutions from the same company may be made at any time.

In the event of a cancellation from a group discount, refunds or credits are issued beginning with the most heavily discounted price, minus a $150.00 administration fee.

"No shows" - or those who cancel within 15 days of the program - and have registered under the Invoice option, remain liable for the full program fee.

SNL Knowledge Center reserves the right to cancel/change programs, content, speakers or venue at any time. SNL Knowledge Center reserves the right to make portions of the program registration information available to program sponsors. SNL Knowledge Center will not be held liable for any costs incurred by registrant due to individual registration cancellation. In the event that a seminar is cancelled due to inclement weather, faculty cancellation or force majeure, SNL Knowledge Center will refund the registrant's tuition in full, however SNL Knowledge Center will not be liable for incidental or consequential out of pocket expenses incurred by the registrant. If you have questions regarding SNL Knowledge Center's refund, complaint or program cancellation policy, please call us at (434) 951-7786.
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