Product Details

by Richard K. Ellsworth
Fall 2002 issue

Leasing has become an attractive financing option for companies investing in electric generating facilities. Appraisal studies aid lessors Ð and their financial and legal advisors Ð in analyzing the economic and tax consequences of these transactions. This article describes key elements of the valuation process. It takes significant investment capital to finance the construction of electric generating facilities, with developers and operators seeking creative financial solutions from available capital sources. In the current economic environment, lease transactions represent an attractive financing alternative for many companies.