Gas-Fired Power Plant Valuation & Due Diligence Report

Client: Seminole Electric Cooperative
Completion Date: 2016
Location: Tampa, Florida

Summary

We were retained by Seminole Electric Cooperative to support development of the fair market value for a peaking power plant for sale in Florida. The valuation was conducted in parallel with other technical due diligence efforts.

The scope included valuing the generating units using the market approach, cost approach and income approach. The market approach included a comparison of similar units exchanged in the market. The cost approach included the development of a reproduction cost new less depreciation valuation. The income approach included the development of a revenue and expense pro forma model to analyze the potential net present value of the unit to a potential acquirer. The study was prepared to support the acquisition of the new generating unit.

The due diligence included an examination of historical O&M records, environmental permits, cost forecasts, performance, staffing and the plant’s key contracts. The purpose of the due diligence was to identify any fatal flaws in the potential acquisition and to provide input into subsequent valuation analyses.

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