Articles and Books

Crisis Capital: Volatile Markets Call for Alternative Financial Models

Categorized Under: Energy



Published in Public Utilities Fortnightly, September 2009, by Anant Kumar and Elliot Roseman of ICF International. This article demonstrates that establishing the cost of capital for electric utilities and independent power producers is a challenging undertaking, especially under volatile financial market conditions such as we have recently experienced. This article also discusses the recent history of financing available to the electric power sector, and the divergence of costs between different players. It further summarizes the primary approaches and issues associated with determining both the cost of debt and cost of equity. Finally, this article proposes a methodology to develop reasonable estimates of financing costs.

Authored By

  • Eliott Roseman

    Vice PresidentICF International

    A senior advisor with 30 years of energy industry experience, Elliot Roseman has expertise in policy analysis, strategic planning, regulatory and legislative strategy, project development, and financial analysis. He supports clients in evaluating energy and electric transmission opportunities, analyzing markets, and developing regulatory and business policies. His experience includes developing business, policy, and regulatory strategies; evaluating potential impacts of specific transactions; and conducting project due diligence.

    Mr. Roseman has managed major policy assignments for private and public utilities, independent power generators, transmission developers, multilateral institutions, regulators, and government officials. He is an adjunct professor at George Washington University, teaching a graduate course on “Worldwide Energy Challenges.”

Insight Details

Published: Sep 1, 2009
Authors: ,

Anant Kumar

Source: Public Utilities Fortnightly

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