Our ability to granularly model each electric generating unit and each specific coal as well as natural gas going into those units allows us to determine whether the value of those individual pieces is likely to increase or diminish under proposed future conditions, and to make quantitative estimates of the amount of that value change, whether it is for the generating unit or for the specific fuel competing to be burned in the unit.
In addition, since our analytic approach is simultaneously considering all of those changing values and how they reach consistent market equilibrium, the portfolio effect of combining different pieces together into one competitive entity can be determined. Specifically, we are able to force different combinations and either expansion or limitation of their utilization in order to see how the surrounding competitive marketplace reacts to those forced situations and whether the combined entity is more or less profitable than the separate pieces. This ability can be extremely valuable for anti-trust considerations for attorneys representing merger or acquisition participants.
