1. The energy and utility market is changing like at no
other time in the past 50 years. Advancements and developments in
smart grid, renewable energy, regulations, rates, distributed generation, energy efficiency and
electric vehicles are driving significant change in the electric grid, utility operations, financial
performance and consumer expectations and behavior. NewGen’s approach helps our energy
and utility clients navigate and optimize these issues and options by applying multiple, expert
perspectives in each project we perform. We specifically address each client’s unique
requirements and deliver tangible results to meet our client’s needs. Properly navigating these
issues and delivering a tangible path forward for our clients ensures successful implementation
and adoption of the required changes.
NewGen delivers tangible results and high value by providing clients a clear
direction, improving and performance supporting effective
strategic and financial decision-making.
Appraisal and Valuation Services
NewGen’s appraisal and valuation team has broad experience across the power and utility
business spectrums, including expertise in generation assets of all kinds, electric transmission and
distribution, water, wastewater, solid waste, gas and oil assets.
NewGen’s appraisal and valuation consulting practice provides comprehensive valuation services
and expertise in the following areas:
Appraisal Services
 Our reports comply with the Uniform Standards of Professional Appraisal Practice
(USPAP)
 Our appraisals consider the three generally accepted approaches to value: Cost Approach,
Income Approach, and Market Approach
 NewGen employs two of the approximately 30 Accredited Senior Appraisers accredited by
the American Society of Appraisers with a public utilities designation
Valuation Consulting
Our appraisers have a wealth of experience assisting in the transaction process with valuation
assistance including:
 Fairness opinions
 Valuation for financing
 Depreciation studies
Economics | Strategy | Stakeholders | Sustainability

2. Litigation Support
 Expert witness testimony before courts and regulatory bodies across the country
 Our comprehensive analyses support litigation efforts at trial
 Our reputation for objectivity and unbiased conclusions provides credibility at trial
Our Team
NewGen’s appraisal/valuation team is led by two of the leading experts in the United States.
Nancy Hughes has 35 years of experience in utility rates and regulation, depreciation and
valuation. Ms. Hughes has performed appraisal studies of electric, water, wastewater, solid
waste, natural gas and oil pipeline properties, and has testified as an expert witness before
regulatory commissions, arbitration boards and courts of law.
Michael Lane has been active in the power plant, electric distribution, water, and gas industries
for over 25 years including experience in management, operations, finance and valuation. Mr.
Lane’s broad range of experience includes strategic and business planning, business development,
financial and economic feasibility studies, cost-of-service analysis and rate design, system
valuation studies, and power plant operation, maintenance and planning.
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3. Power Generation
Appraisal of Scherer 2 Coal Plant
Bank of America Leasing
As Bank of America Leasing’s (BOA) existing sale-leaseback arrangement was scheduled to expire,
Mr. Lane’s assistance was requested regarding negotiations surrounding the renewal/termination
of the sale lease-back agreement of the Scherer 2 coal-fired plant. Mr. Lane was able to provide
a fair market value of the facility, including projected fair market rental payments, in order to
allow BOA to enter into negotiations regarding an extension of the lease or sale of the assets.
Mr. Lane researched the technical profile of the facility, conducted a market simulation, and
calculated net cash flow projections, analyzing the gross revenue and operating expenses of
Scherer 2, assuming output from the facility is sold into the open market. In addition to the
income approach, Mr. Lane also estimated the value of the facility based on cost and market
approaches.
Appraisal of Boston Generating Projects
Capstone Advisory Group / Boston Generating, LLC, Massachusetts
Mr. Lane was retained by Boston Generating, LLC to perform an appraisal study to determine
the fair market value of four electric generating facilities owned by subsidiaries and affiliates
of Boston Generating and by a special purpose entity of the lenders. The appra isal included
four facilities in Massachusetts, and was conducted to comply with Financial Accounting
Standards Board (FASB) Rule No. 141 reporting requirements. This included valuing tangible
and intangible benefits associated with the Boston Generating projects.
Mr. Lane conducted an inspection of the facilities in connection with the appraisal. As the
studies and analyses also required an evaluation with respect to the fair market value of the
Boston Generating projects, our appraisal team relied on generally accepted valuation
methods and procedures.
Valuation Analysis in Support Possible Litigation and Appraisal Activities
Alcoa Power Generating, Inc., Pennsylvania
During the early 1900’s, America’s first hydro-electric dam became the property of Alcoa,
along with several other hydro-electric projects in Tennessee and North Carolina. Together,
these assets comprise a major portion of the power portfolio owned by Alcoa Power
Generating, Inc. (APGI). In 2003, APGI’s assets in Graham County, North Carolina, were
appraised by a Graham County property assessor. APGI disputed the valuation, but lost its
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4. appeal before the tax commission. As a result, NewGen Staff was retained to provide
consulting services to help APGI devise a strategy to deal with issues relating to a possible
increase in the assessed value of its generating assets in Tennessee. Mr. Lane provided
valuation consulting and negotiation support, assisting AGI in negotiating a reasonable value.
Mr. Lane’s assistance aided in a successful conclusion of APGI’s Tennessee tax negotiations.
Appraisal of Wind Power Facilities
Capstar Partners Capital, LLC, Oregon
In early 2006, Capstar Partners Capital, LLC (Capstar) and other select energy companies
combined a portfolio of wind generation assets to be sold on the open market. As part of the
transaction, Capstar required an appraisal of the wind power facilities co llectively known as
Aeolus Wind Power I Facilities. Mr. Lane assembled a team of professionals with national
experience in public utility and power plant appraisals that provided the expertise needed by
Capstar.
The team visited the facilities and reviewed associated documents to assess the fair market
value, and then developed indicators of value. Mr. Lane additionally prepared an estimate of
the facilities’ replacement cost, which included calculation of the facilities’ depreciation
based on the age and estimated useful life remaining.
From this analysis, an appraisal report was provided, documenting the basis for the estimate
of the fair market value of the facilities, including a description of the facilities, the
methodology used, and information supporting the opinion of the fair market value.
Appraisal of Biomass Facility
Smurfit-Stone Container, South Carolina
Smurfit-Stone Container needed to determine the estimated fair market value of its 72 MW
cogenerations facilities located in Florence, South Carolina. Mr. Lane’s thorough analysis
assisted Smurfit-Stone Container in deciding whether to purchase the facilities at fair market
value, extend its current lease of the facilities at the fair market value rental rate, or extend
its lease at a mutually agreed-upon rate. Mr. Lane began the process by reviewing
documents to assess the fair market value, while incorporating additional information
obtained from previous work efforts. After the initial analysis, Mr. Lane performed an
inspection of the facility to supplement the data received. He then interviewed staff
responsible for plant management to gain insight on future plans, procedures and programs.
Following, the fair market value and fair market rental value of the facility were estimated.
The appraisal report included a review of the facility, the methodology incorporated to
arrive at his findings, and a summary outlining his opinion of the fair market value of the
facility, the remaining useful life, and the fair market rental value of the fac ility.
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5. Valuation of Generating Assets
Confidential Client
In today’s competitive marketplace, cooperatives are faced with evaluating their power
supply arrangements with generating and wholesale suppliers in order to remain
competitive themselves. A confidential client had begun to examine the competitiveness of
its purchasing arrangement with the Generation and Transmission (G&T) cooperative of
which it is a member. As the client had identified the need to determine the value of its
equity interest in the G&T’s generating assets, Mr. Lane was asked to conduct a valuation.
Mr. Lane reviewed contracts and documents associated with the generating assets in order
to assess their value impact, and to help define parameters likely to affect the overall value.
The results of this valuation supported the client in negotiations with the G&T relating to its
wholesale power contract, including any potential separation agreement reached by the
parties.
Springerville Power Station
Key Equipment Finance Corporation
Mr. Lane performed an appraisal of the common facilities associated with the coal-fired
generation plant at the Springerville Power Station in Arizona. Mr. Lane developed a replacement
cost new less depreciation (RCNLD) value estimate of the common facilities to support a
sale/lease-back transaction for Key Equipment Finance Corporation. Results of the analysis were
used for internal decision-making regarding the transaction. Mr. Lane also appraised the common
facilities at Springerville Power Station for lease negotiations in 2005, 2017, and 2021 to
determine the fair market value of these assets.
South Texas Project Electric Generating Station
Nuclear Innovation North America
The South Texas Project (STP) Electric Generating Station is one of the newest and largest nuclear
power facilities in the nation. The STP’s two units produce 2,700 megawatts of carbon-free
electricity - providing clean energy to two million Texas homes. In anticipation of the proposed
addition of two new reactor units, the developer retained Mr. Lane to perform an appraisal study
to determine the fair market value of existing facilities (common facilities) that would be required
to operate the proposed addition. Included were a 7,000-acre cooling reservoir and associated
equipment, a nuclear training facility, maintenance buildings and structures, a warehouse and
security functions, water treatment systems, and roadways/parking lots. Mr. Lane also
determined fair market value of participation rights associated with the expansion. While the
common facilities and participation rights belong to the existing facility owners, NINA would have
the rights, or option, to purchase them. In both cases, fair market value was estimated using the
income approach.
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6. Natural Gas-Fired Combustion Turbine Generating Facilities
Philip Morris Capital Corporation
Mr. Lane was hired to determine the fair market value of six 65 megawatt natural gas-fired
combustion turbine generating facilities owned by Philip Morris and operated and maintained by
Luminant Power. The facilities appraised consisted of the generating units and associated step up
transformers. Each facility was comprised of GE combustion-type turbines with associated electric
generators.
Mr. Lane determined that the income approach to valuation was the best indicator of value for
the property. The value of the facilities was then determined from the discounted net cash flow
that could be supported by the earnings stream.
Renewable Energy
Granite Reliable Power
Granite Reliable Power, LLC
Mr. Lane performed an appraisal of the Granite Reliable Project in Coos County, New Hampshire.
Mr. Lane estimated the fair market value of the project assets, which included 33 Vestas-
American Wind Technology, Inc. Model V90-3.0 wind turbine generators, each capable of
producing 3.0 megawatts of electricity. The results of the appraisal were used by Granite Reliable
to support the purchase of an equity interest in the project and to support the requirements
established by the U.S. Department of Energy under the Section 1705 Loan Guarantee Program.
Tieton Hydroelectric Project
Southern California Public Power Authority
The Tieton Hydroelectric Project, located in central Washington, is a qualified generator of
renewable energy credits and production tax credits, and is certified by the California Energy
Commission as eligible for California’s renewable portfolio standard (RPS). The Southern California
Public Power Authority (SCPPA) sought to purchase the project to help support RPS requirements
and hired Ms. Hughes to perform an independent appraisal to determine the project’s fair market
value.
The facilities appraised included a 13.6-megawatt hydroelectric generating plant, a substation
(13.8/115 kV), and a 22-mile 115-kV transmission line that interconnects the hydroelectric
generating plant to the PacifiCorp electric system. The appraisal was performed using the income
approach with a discounted cash flow model.
Based on the outcome of the independent appraisal, Ms. Hughes assisted SCPPA in negotiating
the purchase price, which resulted in successful acquisition of the project in 2010.
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7. North Brawley Geothermal Energy Project
Ormat Nevada, Inc.
Mr. Lane was retained to perform an appraisal of the North Brawley geothermal facility. The
facility is located in the Southern California town of Brawley, and consists of a geothermal power
generation cycle in which energy is extracted from a high-temperature geothermal resource (i.e.,
brine) and converted into electricity through an Ormat Energy Converter system. The project is
supported by a long-term Purchase Power Agreement and eligible for production tax credit. Mr.
Lane estimated the fair market value of the facility using the income approach, and the study
results were used to facilitate a potential sale of the facility.
Delano Biomass Energy Facility
AES Corporation
As a green power source, AES Corporation’s biomass fired generating plant, located in Delano,
California, can collect Production Tax Credits as a part of its revenue. When the tax credit was set
to expire in 2009, Mr. Lane performed an appraisal of the entire plant to estimate the fair market
value and set the stage for the facility to re-qualify for credit after it was sold and deemed a
capital-upgraded facility. Throughout the appraisal, the team worked closely with Mr. Lane
financial and technical experts to determine upgrade costs based on plant condition. Mr. Lane
also called upon an in-plant specialist to add credibility to the condition assessment and to
enhance the integrity of the appraisal value presented to potential buyers.
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8. Electric Transmission and Distribution
Value of Electric Distribution System
South San Joaquin Irrigation District, California
Ms. Hughes performed appraisals in 2006 and 2009 for South San Joaquin Irrigation District
(SSJID) to determine the fair market value of electrical distribution facilities that SSJID sought
to acquire from Pacific Gas and Electric Company (PG&E) in order to provide retail electric service
to customers within SSJID’s service territory. The SSJID service territory covers approximately 112
square miles and includes the cities of Escalon, Manteca and Ripon, and portions of
unincorporated San Joaquin County. The appraisal reports also estimated severance damages
due PG&E resulting from the separation of the electrical distribution facilities and compensation
for the value of remaining PG&E substation facilities that may be impaired due to the transfer of
customers and electric loads to SSJID. Ms. Hughes continues to assist SSJID in its acquisition
efforts.
Electric Transmission and Distribution System Appraisal
Dayton Power and Light Company/Dayton, Ohio
Ms. Hughes was the project manager on an independent appraisal study to determine the fair
market value of the electric transmission and distribution system located at Wright-Patterson Air
Force Base that DP&L purchased from the U.S. Department of Defense.
Appraisal Study of Kaua‘i Electric
County of Kaua‘i, Hawai‘i
Ms. Hughes was the project manager of an appraisal study to determine the estimated fair
market value of Kaua‘i Electric (KE). KE served approximately 30,000 customers on the Island of
Kaua‘i. Citizens Communications Company, which owned KE, announced plans in 2000 to sell KE
and its other energy and water utilities in order to focus its business in the telecommunications
industry. An agreement was reached in 2000 between Citizens and the Kaua‘i Island Utility
Cooperative (KIUC), a newly formed electric cooperative, in which KIUC would purchase KE for
$270 million. However, the Hawai‘i Public Utilities Commission denied the sale amidst concerns
over the financial fitness of the cooperative and the purchase price being too high.
In 2001, Ms. Hughes performed an independent appraisal study of KE for the County of Kaua‘i.
The property appraised included all of the generating, transmission, distribution and general plant
assets of the utility. Citizens declined to cooperate with the appraisal so it was necessary to
develop the inventory of the system based on field review and publicly available information.
Under Ms. Hughes’ direction, indicators of value were developed based on the cost and income
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9. approaches to valuation. The market approach was not relied upon due to a lack of comparable
sales, KE being an isolated, island utility system. Ms. Hughes estimated the fair market value of KE
to be $190 million. Ms. Hughes presented the results of the appraisal to the County Council and
in meetings with Citizens and KIUC. In March 2002, Citizens and KIUC announced that an
agreement had been reached to sell KE for $215 million.
Appraisal of Electric Distribution Property
City of Hermiston, Oregon
In September 1998 the citizens of Hermiston, Oregon affirmatively voted to acquire by
negotiation or condemnation PacifiCorp’s electrical distribution property within the City in order
to establish a municipal electric utility serving the City. Ms. Hughes performed an appraisal to
estimate the fair market value of the facilities, which included an analysis of severance costs. In
June 1999, the City filed a condemnation action against PacifiCorp to acquire the electric
distribution facilities. Ms. Hughes provided expert witness services to the City and its counsel
during legal proceedings. In August 2001, after two years of legal proceedings, the City and
PacifiCorp reached a settlement regarding the purchase price for the electric distribution
property. The City’s new municipal electric utility began operations on October 1, 2001.
Appraisal of Douglas-Hayfork 60-kV Transmission Line
Trinity Public Utilities District, California
Ms. Hughes performed an independent appraisal for Trinity Public Utilities District to determine
the fair market value of Pacific Gas & Electric Company’s Douglas-Hayfork 60-kV electric
transmission line, which the District sought to acquire from PG&E. The appraisal also included an
estimate of severance costs. Ms. Hughes’ opinion of fair market value was based on the cost and
income approaches, taking into account the effect of rate regulation and the process by which
utility owners are compensated by the California Independent System Operator (CAISO), which
has operational control of the electric transmission line system in California. PG&E declined the
District’s offer to purchase the transmission line; consequently, the District brought an eminent
domain action to condemn the line. Following confidential negotiations, the District and PG&E
reached a settlement agreement for the District to acquire the transmission line.
Appraisal of Electric Distribution Facilities
Lafayette Utilities System/Lafayette, Louisiana
R. W. Beck was retained by Lafayette Utilities System (LUS) to perform an independent appraisal
to determine the just compensation due Entergy Gulf States Utilities in connection with the
expropriation of electric distribution facilities located in sixteen parcels of land that were annexed
by the City of Lafayette. Entergy provided electric service to approximately 453 customers
located in the parcels. The matter had been disputed between LUS and Entergy for many years.
Ms. Hughes provided expert testimony on behalf of LUS at the expropriation hearing regarding
the value of the facilities acquired. The trial court decision adopted Ms. Hughes’ appraisal and
opinion of fair market value.
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10. Appraisal of Electric Distribution Property
Eugene Water and Electric Board and Springfield Utility Board/Oregon
Ms. Hughes prepared an independent appraisal study for the Eugene Water and Electric Board
(EWEB) and the Springfield Utility Board (SUB) to estimate the value of electric distribution
property EWEB planned to sell to SUB. The property to be sold involved three separate areas with
approximately 1,400 residential EWEB customers. Over the years, the urban growth boundary for
the City of Springfield had grown to the point where it overlapped in certain areas with EWEB's
service territory. The two municipal utilities agreed that, in these areas, it made sense for EWEB
to sell its electric distribution facilities to SUB. Electrical engineers on the appraisal team led by
Ms. Hughes developed an inventory of the facilities to be sold based on maps and records
provided by EWEB, and conducted field inspections to verify the inventory data and determine
the age and condition of the facilities. Ms. Hughes developed indicators of value based on the
original cost less depreciation (OCLD) and reproduction cost new less depreciation (RCNLD) value
of the facilities. The results of the appraisal study were used by EWEB and SUB to negotiate a
purchase price for the facilities.
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