Project Purpose

The objective of this project was to conduct a comprehensive performance analysis of the Barr, Mears, and Cypress Creek Hydroelectric Facilities. The analysis was performed as part of due diligence on behalf of Canadian Western Bank for the acquisition of the three hydropower facility assets.

Project Scope and Methodology

1. Historical Performance Review
- Operational Data Analysis: Reviewed roughly 25 years (total) of plant operation data to assess performance metrics and operational efficiency.
- Comparison with Original Projections: Compared actual operational performance against the original hydrological analysis, which served as the basis for the initial financial viability of each facility.

2. Updated Hydrological Analysis
- Resource Assessment Update: Conducted an updated hydrological analysis to re-evaluate the energy generation potential of each facility.
- Period of Observation Comparison: Compared the period of operation with the period of observation used in the original hydrological assessment to estimate energy generation potential and present value.

3. Operational Observations
- Plant Operation Decisions: Analyzed plant operation decisions, including the timing, frequency, and duration of plant shutdowns, to identify patterns and impacts on performance.
- Spill Estimation: Quantified the volume of water spilled by each plant to estimate bounds of revenue loss.

4. Financial Risk and Performance Analysis
- Energy Production Projections: Summarized the analysis to communicate future expected energy production, supporting asset valuation and financial risk assessments.
- Asset Valuation: Provided insights into the present value of each facility based on updated energy generation forecasts and operational data.

Project Outcomes

• 1. Enhanced Financial Insights: The analysis provided detailed insights into the financial performance and risk associated with the Barr, Mears, and Cypress Creek Hydroelectric Facilities.
• 2. Informed Investment Decisions: Supported Canadian Western Bank in making informed investment decisions by providing a comprehensive review of operational performance and future energy production potential.
• 3. Accurate Asset Valuation: The updated hydrological analysis and operational observations contributed to a more accurate valuation of the facilities, ensuring a sound financial assessment.

This project delivered a thorough performance and financial risk analysis, supporting the due diligence process and ensuring a robust foundation for asset acquisition decisions.