Valuation of Distribution Assets

PPA executed a Modern Equivalent Asset (MEA) valuation for the Electricity Distribution System of a major distribution utility and supported the company in its negotiations with the Government.

Description of Services Provided:



In the valuation of assets, PPA applied benchmark contrasts for certain metrics of asset value per Megawatt-hour of energy supplied, or per customer. A technical assessment of each category of asset was carried out to determine the closest modern equivalent unit currently being used by the distribution utility. The current cost of these assets was then used to determine the replacement cost before computing a final value discounted to reflect the remaining useful asset life. The current asset condition and asset inventories were reviewed in detail before agreeing residual life algorithms.

Project Manager: Tim Warham