Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
707316 | The Electricity Journal | 2008 | 6 Pages |
Abstract
Should a lower discount rate be used for evaluating a tolling agreement than used for a renewable energy contract? The California Energy Commission seems to think so. An analysis suggests that a risk-adjusted discount rate is inappropriate. A correct approach should quantify the effect of risk on a contract's financial performance, thereby providing useful information for decision-making.
Related Topics
Physical Sciences and Engineering
Energy
Energy Engineering and Power Technology
Authors
C.K. Woo, Brian Horii, Michele Chait, Ira Horowitz,