PJM MARKET / SEC. 363 AUCTION IRA SEC 48 ENERGY COMM: 10% BONUS

Distressed Coal Plant Bankruptcy Bid & Repurposing Workbench

NRG Energy M&A Stalking Horse Valuation & Repowering Matrix (Appalachian 1,200 MW Unit 1-2)

Bidding & Repurposing Architecture

Stalking Horse Cash Bid $85.0M
Assumed Remediation Liabilities (CCR/ELG) $42.0M
Interconnection Capacity Valuation $120/kW
PJM BRA Capacity Price $269.92/MW-day
Delivered Fuel Cost $2.85/MMBtu
Wholesale Power Price (PJM West Hub) $48.50/MWh
INTERCONNECTION & GRID SPECS:
Voltage: 500 kV Intertie | Point of Interconnection: PJM Dominion Zone
Nameplate: 1,200 MW | ARO Discount Rate: 7.5%
Net Effective Acquisition
$127.0M
Cash $85.0M + Liabilities $42.0M
Interconnection Value
$144.0M
1,200 MW @ $120/kW
15-Yr Net Present Value
$114.6M
WACC: 8.5% | Net of ARO
Unlevered IRR
18.4%
Payback: 4.8 Years
Break-Even PJM Capacity
$142.3/MW-d
Zero-NPV Floor

Financial Valuation & Repurposing Cashflow Stack

IRA Section 48 10% Energy Community Eligible
PJM Capacity Clearing ($/MW-day) $150/MW-d $200/MW-d $269.92/MW-d (Base) $320/MW-d $380/MW-d
Pro-Forma Metric ($M) Yr 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 15
Generating Due Diligence Memorandum...
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