Financial risk evaluation for New Brunswick Power Corporation: A Monte Carlo simulation

To meet its energy obligations, NB Power uses a generation portfolio comprised of thermal, nuclear, and renewables sources such as wind and hydro. The fuel cost incurred by the corporation to generate electricity represents one of its largest expenditures. NB Power is subject to numerous factors that can affect its future financial projections. It currently evaluates a limited number of scenarios for the items that impact this cost and thus seeks to perform a more in-depth analysis of the risks by incorporating probabilistic techniques in its evaluation. This project will help NB Power improve its financial forecast and allow for stakeholders to have a better understanding of how current and future rates may change. This research project benefits the intern in several aspects. Firstly, the intern will have the opportunity to apply the knowledge s/he acquired in the classroom to solve real-life problems. Secondly, the intern will work on a real-life problem that s/he may not have learned in class. Thirdly, the intern has the opportunity to work closely with industry practitioners.

Faculty Supervisor:

Donglei Du

Student:

Partner:

NB Power

Discipline:

Business

Sector:

Finance and Insurance; Energy and Utilities; Natural Gas

University:

University of New Brunswick

Program: