Energy and Utility Industries

We have assisted many energy companies and investors in a variety of growth strategies, including mergers and acquisitions and international investments, as well as divestitures/expansions of diversified non-regulated businesses and tax-related issues.

• We provided purchase price allocation and valuation services to a utility company serving northeastern markets on acquisitions that markedly increased the size of its customer base and expanded its operations.
• We provided purchase price allocation and valuation services to a utility, which acquired natural gas distribution companies to increase the scale and scope of its operations in strategic jurisdictions in the north central US. 
• For federal income tax planning purposes, we valued a large energy holding company, including its regulated and non-regulated businesses and investments in Latin America, Africa, India, and the Middle East. 
• We were engaged by an electric power distribution company to ensure that management fees charged to subsidiaries and affiliated companies adhered to the arm’s-length standard in accordance with US transfer pricing regulations. 
• We valued real estate sold by a gas and electric utility to a government entity authorized to acquire land in order to preserve natural resources.  An independent appraisal was required by the utility company to demonstrate that the property’s fair market value was in excess of the sales price, to support state and federal income tax filings. 
• For property tax purposes, we were engaged by a regional energy development company, which owned and operated alternative energy facilities.  The original assessments of the facilities were based on projections of “avoided cost” energy rates and construction costs; however, the models and assumptions used to derive the assessments were no longer valid.  ACG’s income model prevailed, resulting in assessment reductions of 50 to 75 percent per facility. 
• As a result of industry deregulation (unbundling), utility companies divested themselves of numerous power plants.  Within two years following the passage of FERC 888 and 889, we had valued electric power plants with an aggregate capacity of approximately 20,000 megawatts.