Sunflower Electric’s Expansion Proposal Illuminates Carbon-Risk Exposure and Financing Challenges of New Coal-Fired Power Plants in Light of Impending Climate Legislation.

25 March 2008 - Innovest Strategic Value Advisors, the world’s #1 provider of financial research that quantifies hidden risks and value, today released a case study on coal-plant financing called ‘Sunflower Electric Power: Carbon Risks Outweigh Benefits of Holcomb Expansion’. The report examines how current and proposed regulatory scenarios, alternatives to coal-fired generation, regulatory and stakeholder opposition, and rising construction costs continue to shift the competitive balance away from coal-fired electricity generation.

Innovest examined the economics of the transaction and determined that under the most plausible regulatory scenarios the decision to build new coal generating capacity will put Sunflower Electric’s ratepayers – who in this particular case are the actual owners – at significant risk. The report concludes that Sunflower’s management has not adequately addressed the competitive and financial risks associated with climate change in deciding to pursue the expansion of its Holcomb Station power plant.

To download the report, please click here.

For more information, please contact the authors:

Drew Fryer, Senior Analyst
Sydney
+61 407 932 370
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Eric Kane, Senior Analyst
New York
+1 212 421 2000 x 207
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Mario Lopez-Alcalá, Senior Analyst
New York
+1 212 421 2000 x214
\n mlopezalcala@innovestgroup.com This email address is being protected from spam bots, you need Javascript enabled to view it