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| Overview Capabilities Staff Projects |
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Generating Asset Valuation
Determining the value of generating assets and power contracts is an important aspect of property tax assesment, evaluation of asset transactions, and utility ratemaking (including stranded cost rate treatment). Synapse typically values assets using the income approach in which annual net revenues are projected into the future and then discounted to the present using an appropriate time value of money. We have also developed and applied statistical techniques to estimate the market value of electric power plants based upon recent actual sales of other power plants.
Our testimony on utility company stranded costs has addressed quantitative and policy issues. That is, in addition to estimating the magnitude of stranded costs, we have developed analysis and recommendations with respect to the appropriate regulatory treatment of stranded costs and gains.
Our asset valuation work typically includes simulation modeling and market price forecasting.
Synapse projects dealing with asset valuation include: |
Appraisals of hydroelectric generation facilities along the Connecticut and Deerfield River |
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Evaluation of a purchased power contract by Vermont utilities and recommendations for appropriate rate treatment |
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Analyses of electric utility stranded costs in West Virginia, Mississippi, and Massachusetts |
