Bond Issuance Engineer’s Reports
EES Consulting assists clients as Consulting Engineer by providing a review of all relevant existing project documents to establish key parameters such as project output, construction costs, operating costs, project schedule, permit status, project capital costs, and project output sales contracts. Existing documentation will be assumed to be accurate and correct. From these key parameters, EES Consulting develops a 20-30 year financial proforma (depending on the term of the underlying revenue bonds) and measures the financial feasibility of the project. This financial feasibility is typically measured in terms of annual debt service coverage ratios. EES Consulting works with the Client’s bond council, financial advisor, and underwriter as needed. In addition, EES Consulting staff can provide technical assistance in meetings with rating agency.
Clark Public Utilities
For more than a decade EES Consulting has prepared Engineer’s Reports for Clark Public Utilities (CPU) for bond issuances associated with its Electric and Generating Systems. The reports include power supply cost projections, retail revenue projections, non-power costs projections and projected debt service coverage ratios. The Engineer’s Reports require that EES Consulting be intimately familiar with all of CPU’s power supply and natural gas supply contracts. Understanding CPU’s resource portfolio from its combustion turbine to its BPA Slice/Block contract to its wind purchase agreement are all necessary to draft a detailed Engineer’s Report, forecast power supply costs (including off-system sales) and forecast key financial targets such as financial reserve and debt service coverage ratios. EES Consulting also presents key results to ratings agencies on CPU’s behalf and assists CPU in meeting all requirements associated with successfully issuing bonds.
Lakeview Light and Power
EES Consulting has prepared several Engineer’s Reports for Lakeview Light and Power to assist Lakeview in the issuance of bonds. The Engineer’s Reports required EES Consulting to project Lakeview’s power and non-power cost for a five-year forecast period and calculate key financial statistics including financial reserves and debt service coverage ratios. The expenses, revenues and financial targets of Lakeview’s two subsidiary companies were tracked separately in the report. The combined revenues, expenses and financial targets of the parent company and the two subsidiaries were also included in the report. The reports include sensitivity analysis with respect to key assumptions that are used in the calculation of power supply costs and off-system sales revenue. The potential impacts of various scenarios on Lakeview’s retail rates were also calculated and formalized in the final report. EES Consulting prepared and presented power point slides summarizing the reports key findings.
