Article ID Journal Published Year Pages File Type
707316 The Electricity Journal 2008 6 Pages PDF
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
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