The Brattle Group’s skills in financial modeling, market analysis and forecasting, cost of capital, option pricing, decision analysis, and risk management allow us to offer an independent perspective on valuation and planning decisions in emerging and rapidly evolving markets.
For an electric utility in New England, The Brattle Group assessed the financial exposure from the breach of a purchased power agreement with a non-utility generator (NUG). We developed contract performance and financial impact models for the utility and the NUG, and determined how to address uncertainties in parameters affecting contract performance, such as fuel, O&M costs, and dispatch pool system lambdas. We also assessed damages exposure and feasible settlement ranges for the litigation.
On behalf of a foreign government, The Brattle Group valued wireless spectrum in preparation for an upcoming auction. The analysis required building a valuation model that reflected local pricing costs and demand. An econometric analysis of market comparables was also performed to benchmark the valuation.
Members of The Brattle Group have assisted creditor groups with the valuation of energy firms in bankruptcy. For a producer-creditor of a major interstate natural gas pipeline, we evaluated alternative claims valuation methodologies for rejected long-term gas supply contracts. For the bondholders’ committee of a project-financed independent power producer, we participated in the development of overall case strategy, the valuation of the debtor’s single generating asset, and the evaluation of the debtor’s pre-petition power marketing efforts.
For a utility in the Northeast, members of The Brattle Group analyzed the economics of converting oil-fired steam plants to natural gas. The project assessed total plant value when fueled by oil, the expected incremental value of the planned conversion, the resulting changes in the regional dispatch order, the required level of variable fuel costs needed to ensure sufficient dispatch and gas consumption, and the option value of maintaining dual-fuel capability given future scenarios of seasonal oil and gas price combinations.
On behalf of the Bankruptcy Trustee for the Bank of New England Corporation, members of The Brattle Group led a team of consultants performing the valuation analysis for more than $500 million of non-bank assets owned by the holding company prior to a takeover. In addition to the valuation analysis, our team helped to prepare the expert reports and support the expert at deposition.