Significant valuation issues relating to fossil fuel plants

BVWireIssue #79-4
April 22, 2009

The latest issue of the Energy Market Insights newsletter from NERA Economic Consulting includes an insightful article, Valuing Fossil Fuel Generation Assets in a Green Economy, by NERA vice president James Heidell and senior vice president, Mike King. The piece notes that “challenges for valuing fossil fuel plants will increase going forward as the result of the potential impact of greenhouse gas regulation and policies designed to encourage the development of renewable generating technology,” and outlines a  “stochastic model to help investors gain insights into the critical valuation issues surrounding fossil fuel generation plants.”

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