We can help manage the tax and financial aspects of your closely held business, renewable energy or energy storage project.
Custom Tax Reduction Plans
Energy Focused Business Consulting
We have helped our clients through many issues during the development and operating phases of their energy projects. The following is a list of a few of the common issues that with which we have helped. Whatever the issue (or the opportunity) we probably have the background in the energy business to be able to come up with a solution.
Tax Reduction Planning: We can typically save $12,000 or more per year in tax liability using over 60 strategies for closely held business owners. We design structures to maximize the savings available under new law from entity choice, tax free reimbursement plans, home office, travel, entertainment, vehicles, depreciation incentives, medical and health insurance costs.
Project Financing: There are many great project ideas but few that achieve financing. We have been through project financing efforts and closed deals with insurance companies, wall street banks and local banks. Financing terms may be the largest driver of the size of your future distributions and management fees.
Power Purchase Agreement/ Energy Storage Agreement (PPA/ ESA): Failing to get the right PPA/ ESA is probably the most common fatal flaw that keeps an otherwise good project from achieving commercial success. A project with the best location and technology with a bad PPA can’t succeed. However, in our experience, all other things being equal, a project with an average location and old technology with a good PPA can succeed. Don’t ignore it until it is too late.
RFP Submittals: Keeping track of and responding to RFPs is often overwhelming. Let us share the burden. We have been through it before. Sometimes we can offer insights into financing or other cost drivers that can enable you to sharpen your offer. We can help with up front planning to make the process smoother and to produce a better proposal.
Project Costing: Whether you are putting together the original capital cost estimate or trying to lower your costs or just want to better understand where you stand with project costs we can help. We have done it before. We can integrate your project cost, schedule, accounting software, lender draw requests.
Waterfall Calculations: Does your loan agreement have a 15-page description of the waterfall calculation required to be performed before you can take a distribution. We love those! We have done hundreds of waterfall calculations. We can also consider this information is forecasting future cash distributions. Still evaluating lenders – lets look at their proposed waterfall.
Cash Flow Projections: We can help you prepare an investment grade cash flow projection that you can give to lenders or use for your own insights and planning.
Budgeting: We can prepare budgets, compare to actuals, and offer insights that helps manage the project or satisfies lender reporting.
Lender reporting: Do you have a set of financial reports required by your lender that is overwhelming your current staff. Are you falling short of what your lender wants or requires? We can help.
Feasibility Study: We can work with a team of experts from engineering, to fuel/feedstock supply, met data scientists to convert the engineering information into an investment grade cash flow projection.
Funding: When should you raise money from angel investors, when from venture capital, when from project finance institutions (and should it be bank or insurance companies?)? We can help you make the best choices that leaves you with maximum cash distributions for you the sponsor over the life of the project.
Interest During Construction: Can you calculate it properly? We can. Sometimes we see capital budgets with no provision for this item even though it is often the largest single line item in the capital cost.
ITC/ PTC: Should you take the PTC or the ITC? How are you documenting the commencement of construction and continuity of construction? We work with attorneys that specialize in the policy guidance. We make sure your accounting records properly reflect your efforts to satisfy the qualifying tests. Missing this documentation could ruin your project.
Cost of Delivered Energy: It is time to stop using industry averages or whatever you heard at the last conference. Let’s calculate the actual required revenue your project needs to be financeable and worth building. Let’s understand what we need to improve to win the next RFP award.
Choosing a Feed-in-Tariff: Confused about which feed in tariff to use. Confused about how to model it? Or just want a second opinion on your own work? We convert words in the tariff to a reliable estimate of your revenue and determine if it works for your project.
Keeping up with Regulators and Utilities: Don’t have time to keep up with what your local utility commission and utility is doing. Need deeper insights. If it is in Washington, Oregon or California we are probably already there and we can represent you, keep you informed or even promote your issues.
Sensitivity Cases: What if you did this differently? What if you changed prime movers? What if you refinanced? We can run sensitivity cases to help you decide.