Cogen-Energy

Services

Financial Modeling in support of Project Development, bid submission, and rate design.
Prepared detailed pro-forma financial models for projects under development. In early stages, financial models are used to determine project feasibility and guide development. More mature projects are analyzed for tax implications and effect on financial statements of the parent company. Preparation and presentation of financial information to Senior Management, Equity Partners or Lenders. Recent work includes a number of biomass and gas turbine based combined heat and power projects. In the past year I have prepared pro-forma models for ethanol projects for two different clients.
Calculated rate design components to pass through or minimize proponent risk on fuel price, return on capital, O&M, and steam load, for both power and steam contracts. Rate components are calculated in the form required in support of a bid under an RFP.

Feasibility Analysis, Configuration Optimization and Equipment Selection
Primarily in support of projects under development. Services include plant performance modeling and construction of screening or pro-forma financial models for the various configurations under consideration. Consulted to a major gas turbine equipment supplier in assisting clients with project feasibility and in responding to development type proposals. Configuration and equipment selection is complicated by time of generation rates, fluctuating steam loads, and trade-offs between efficiency and capital cost, making it important to predict overall performance based on a number of operating cases.

Valuation and Due Diligence for Acquisition of Operating Assets
Consulted to a client pursuing acquisition of existing projects. These projects are operational with existing client base, power purchase and other agreements, and were offered through a RFP process to prospective purchasers. Services include analysis of operating statistics, performance modeling, and support of due diligence and preparation of detailed pro-forma valuation models. Projects include gas turbine and biomass fired combined heat and power plants and district heating utilities.

Cash Flow Modeling and Optimization of Contribution to Net Income for Existing Assets
Over time, original operating assumptions may no longer be appropriate as prevailing price levels change, and/or fuel supply contracts or power purchase agreements expire or are amended. Often considerable asset value is not realized. Consulted to a gas turbine based CHP project owner facing considerable losses if they continued to operate as usual after their fuel supply contract expired. Services included optimization of the operation of existing assets within the provisions of the PPA and steam sales contracts based on forward natural gas market information. A detailed cash flow model was built to predict short term borrowing requirements.