Is discounted cash flow (DCF) still a reliable tool for determining equity cost?
Carmen L. Gentile and Monica M. Berry
The time-honored discounted cash flow method for determining appropriate utility returns falls short when interest rates are low. Inadequate ROEs ultimately increase cost of capital and wipe away any temporary savings.
Williams completes Transco pipeline expansion and plans a new one; Hudson Transmission electrifies underwater line between New Jersey and Manhattan; Northern Power wind turbines installed at Hawaii microgrid project; GE boosts efficiency of diesels powering remote Alaskan cooperative; Siemens installs supercapacitor on Oregon rail line; plus contracts and announcements from Bonneville Power Administration, Primus Power, Ameren, ComEd, Silver Spring Networks, Toshiba, Babcock & Wilcox, and others.
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