@article {Mcisaac13, author = {Glenn Mcisaac and Chris Beale and Jonathan Lindenberg}, title = {Financing the New Merchant Power Generation Business}, volume = {6}, number = {1}, pages = {13--19}, year = {2000}, doi = {10.3905/jsf.2000.320183}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Restructuring of the electric power industry in the U.S. is creating a large new merchant power generation business {\textendash} and a corresponding wave of financing innovations. While merchant generation involves potentially significant market risks, merchant generators are employing a variety of operating and financial structures to manage these risks and establish {\textquotedblleft}stand-alone{\textquotedblright} capital structures with significant levels of limited or nonrecourse debt. By bundling assets into large, diverse gencos; hedging market exposures through offtake and supply arrangements; and using financial structures such as leases, commercial paper conduit funding, and project bonds, the new merchant players are achieving the competitive advantages of lower-cost funding, deferral of equity investment, enhanced earnings profiles, tax benefits, and increased financial flexibility.}, issn = {1551-9783}, URL = {https://jsf.pm-research.com/content/6/1/13}, eprint = {https://jsf.pm-research.com/content/6/1/13.full.pdf}, journal = {The Journal of Structured Finance} }