Volume 3 — Valuation and Risk Metrics © Copyright 2002, CCRO. All rights reserved. 9 • The levels of equity financing that may be required. The economic value takes into account: • The modeling paradigm of the asset • The asset’s operating characteristics • The market structure expected to prevail over the economic life of the asset. Fair value should be calculated for the market years to show the current value relative to all the commodity markets affecting the asset. For the non-market years, the fair value should be calculated using commodity positions to focus on the expected value. 2.2 Typical Outputs Example reports for several of the outputs are in Appendix B. The following items can be presented to understand and analyze the asset value: • Valuation − The fair value of the asset for the market years component of the asset life − The fair value of the hedges associated with that asset and over the same interval − Combined fair value of the asset plus the hedge positions − The fair value of all the assets and the hedge positions in a given region − Change in fair value (P&L) − Spark spread or price of the asset or trading value • Volume − Model-defined delta equivalent commodity volume by location and/or tenor associated with the asset − Hedge transaction (delta) equivalent commodity volume by location and/or tenor associated with the asset − Combined delta equivalent commodity volume by location and tenor A geographical breakup or other level of granularity is reasonable where this information can be usefully conveyed and is not competitively sensitive. For an example, see Appendix B. However, a consolidated presentation should be used in cases where the regional breakup conveys less information or is detrimental in that it conveys competitively sensitive information.