Valuation Study

Location: Benson, Ariz.

Client: Arizona Electric Power Cooperative Inc.

Arizona Electric Power Cooperative Inc. (AEPCO) retained Burns & McDonnell to perform a valuation study for portions of its generation and transmission plant. As AEPCO’s risk management group evaluated its insurance requirements, it recognized the need to have its plant appraised at 100 percent of its replacement cost. An independent appraisal was needed to support a request to the Rural Utility Services to adjust their property insurance coverage level.

Burns & McDonnell performed an appraisal of AEPCO’s assets at the Apache Generating Station and its network of 18 transmission substations. The valuation report was prepared using the replacement cost methodology in accordance with the Uniform Standards of Professional Appraisal Practice defined by the Appraisal Foundation. The Burns & McDonnell study provided AEPCO with 100 percent replacement cost values and successfully supported AEPCO’s request to the Rural Utility Service to modify its insurance coverage.