Insuring system performance to limit financial risk
The days when feasibility studies had implicit confidence in construction schedules, plant availability, and capacity factors are gone. Risk has emerged as a predominant consideration in the planning of new facilities. Third party financing has increased awareness of the problem. The third party assumes the risk of his investment, but the operator must assume many other risks. The operating entity must therefore assess its own risk from plant outage. An insurance company submits a quotation to the operator indicating its willingness to insure the risk. The quotation is contingent upon the feasibility study. A brief and preliminary description (by outline) is given of the terms and conditions of a system performance insurance policy.
- Research Organization:
- Gibbs and Hill, Inc., New York, NY
- OSTI ID:
- 5563798
- Report Number(s):
- CONF-820217-
- Journal Information:
- Energy Technol. (Wash., D.C.); (United States), Vol. 9; Conference: 9. energy technology conference, Washington, DC, USA, 16 Feb 1982
- Country of Publication:
- United States
- Language:
- English
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