To forecast financial metrics of generation asset portfolios requires the ability to accommodate the constraints that are imposed on them and simulate how they will operate under forward market forecasts. The financial metrics needed to develop pro formas include the revenue from power and ancillary services sales as well as costs from associated fuel burn, start-up costs, and variable O&M. In addition to deterministic financial metrics, stochastic metrics resulting from market uncertainty may also be determined, thus forecasting both intrinsic and extrinsic value.

To accurately forecast these metrics, financial planners need the same level of detail as the operations and asset management groups. The flexibility of PCI GENTRADER® makes this detail possible.

PCI delivers solutions in this area that allow:

	Asset/Portfolio Valuation
		A generation asset is a complex option position. Valuing it requires the ability to include the physical operating constraints of the generator.
		Justifying the capital expenditure for a plant improvement requires the differential of the pre-enhancement gross margin and the post-enhancement gross margin.
		Developing joint operations benefits or merger synergies requires modeling several units in separate portfolios and in joint operating portfolios.
	Budgeting/Forecasting
		Establish MTM profit/loss forecast.
		Determine earnings guidance around generation assets.