Strategic Assistance on the Auction Floor in Ontario

An advisory team of management consultants and engineers was assembled to assist a client bidding on hydraulic assets that were being sold in Ontario.We analyzed expected price performance and developed both average and peak price scenarios, drew on hydraulic engineering expertise to analyze river flows and production performance, assisted in due diligence to determine future operating and rehabilitation costs, analyzed the potential for further development of hydroelectric capacity in the river system based, in part, on our knowledge of environmental and political

uncertainties that would have to be addressed, constructed optimization scenarios drawing on Synexus Global's river basin performance modeling, and developed a range of possible bid values for the client. As the bid took shape, we also advised the client on innovative financial structures including income trusts and cross-border arrangements to lower the cost of financing. Risk analysis was also undertaken, including an analysis of transmission constraints and possible regulatory changes that could affect future value of the assets.