The 2005 Energy Policy Act repeals PUHCA and should open up M&A activity.  LAI can uncover sources of value and potential hazards, plus facilitate favorable state regulatory approval and credit rating treatment.  Our market insights and quantitative prowess help clients gauge the potential for earnings enhancement or dilution associated with a merger or purchase/sale of power assets.

Our M&A team addresses market risk, fuel-electric price linkage, and financial performance.  We have conducted due diligence on generation and distribution assets in the U.S. and Latin America.  Our work products facilitate recapitalization of operating assets.  Our assessments help lenders and investors simulate the operational performance of transmission and generating assets over the relevant study horizon.  LAI's knowledge of fuel markets, power technology, and energy contract fixes for projects in workout can help define risk mitigation and credit enhancement techniques.

LAI breaks down key risk factors by focusing on the:

	Rate and revenue impacts under rival operating regimes and market rules
	Variance in linkage quality under fuel price and dispatch scenarios
	Merit of decontracting all or a portion of a venture's fuel supply under contract reformation initiatives
	Feasibility of business plan changes
	Opportunities for portfolio operating synergies
	Impacts of fuel, generation technology improvements, and pollution control strategy selection on threshold coverage ratios or other relevant bond covenants
	Use of risk mitigation techniques to hedge fuel risk