Asset Valuation Services

e-Acumen asset valuation experts provide independent market assessments for those wishing to divest, purchase, and build generating capacity. The team uses a proprietary system called AcuVal for valuing assets with a market-based methodology. Production cost is just one piece of the puzzle. Modeling spot prices for electricity must incorporate price spikes that occur during periods of tight reserve margins. In addition, AcuVal incorporates business cycles, simulation of unit dispatch, ancillary services, derivative instrument revenue and new unit entry as key factors in simulating accurate prices and revenue streams. The program provides the following value added to the asset financing process:

•Consistency with the fundamentals of newly competitive electricity markets
•Incremental leverage achieved through more accurate and credible price forecasts
•Acceptance by S&P and Moody's
•The ability to finance deals that cannot be financed with production cost models or simple volatility adders
•Essential support for equity investment decision analysis
•Building on a production cost model framework, incorporation of the new drivers of competitive electricity markets that result in highly volatile prices