Consolidated Water Power Company (CWPco) Valuation Brief

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Complete Financial Solutions, Inc. (CFSU) preliminary due-diligence on the Consolidated Water Power Company in Wisconsin Rapids, WI., combined with the following research, estimated the value of CWPco between $96 MM and $112 MM

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The estimated valuation took into consideration the following factors:

  • Consolidated Water Power Company 40 Megawatt output.
  • Transaction Comps (see slide/page #5) based on $903/kW and $1,309/kW output for Hydropower Asset sales.
  • CWPco owns 20K acres (current estimated valued of $60 MM).
  • CWPco's $40 MM purchase price includes $7 MM in the bank account.
  • CWPco has Secured, Long-Term Contracts (PPAs), and 25 years of stable reliable Megawatt output record.
  • As load grows by double digits from 2026–2030, hydropower will increase in strategic and financial value.
  • Electricity Supply-Demand for AI and Manufacturing driving the load growth.
  • Aligns with National Defense and Security Priorities.
  • CWPco PURCHASE PRICE $40 MM / ESTIMATE VALUE $96 MM - $112 MM

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U.S. Electricity Supply-Demand Growth and CWPCo's Strategic Position

25% Demand Growth by 2030

U.S. electricity demand is projected to grow by roughly 25% by 2030, driven by AI data centers, electrification, reshoring of manufacturing, and federal energy-security priorities.

Urgent Need for Baseload Power

This surge is creating an urgent need for stable, dispatchable, carbon-free baseload generation that can support national-priority infrastructure and industrial expansion.

24/7 Reliability

CWPCo's hydropower assets provide immediate, 24/7 reliability without the intermittency or fuel-supply risks associated with solar, wind, or natural gas.

No Permitting Delays

Unlike new generation projects, CWPCo requires no multi-year permitting, environmental reviews, or construction timelines—allowing investors to capitalize on rising demand immediately.

Proven Performance

Existing hydro capacity with long-lived infrastructure and proven operational performance offers a defensible, appreciating asset amid tightening grid conditions.

Strategic Value

As load grows by double digits from 2026–2030, dependable hydropower will increase in strategic and financial value, positioning CWPCo as a scarce, high-quality asset in a rapidly tightening power market.

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Complete Financial Solutions owning Consolidated Water Power Company Aligns with the National Defense and Security Priorities of the United States

U.S. Energy Dominance

The Trump administration emphasizes U.S. energy dominance as a core national security priority. CWPCo's hydropower assets directly support this priority by providing domestically controlled, fuel-independent, resilient baseload power that strengthens U.S. energy security and reduces reliance on vulnerable supply chains.

Critical Infrastructure Security

The administration continues to prioritize rebuilding and securing critical infrastructure to enhance defense readiness and industrial capacity. CWPCo's fully permitted, long-lived hydropower facilities contribute to this goal by reinforcing regional grid stability for defense manufacturers, secure data centers, and mission-essential federal operations.

Defense-Industrial Base Strengthening

Strengthening and reshoring the U.S. defense-industrial base remains a major policy focus. CWPCo provides the type of stable, low-cost, continuous electricity supply required to anchor advanced manufacturing, AI compute infrastructure, propulsion production, and other critical defense-related industries.

Grid Resilience

National security policy places high importance on grid resilience against cyber threats, physical attacks, and natural disasters. Hydropower offers inherent resilience because it is dispatchable, hardened, and not dependent on fuel deliveries or pipelines—making CWPCo a valuable contributor to continuity-of-operations planning.

AI and Secure Digital Infrastructure

As the administration places growing emphasis on U.S.-controlled AI compute and secure digital infrastructure, CWPCo's ability to power high-security compute facilities with predictable, carbon-free baseload energy aligns directly with efforts to protect national technological advantage and ensure sovereign, dependable computing capacity for defense and intelligence missions.

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Price Per Unit of Capacity Multiples

Valuation multiples for hydroelectric power plants in the United States are highly site-specific and generally fall within the following ranges, with specific values depending heavily on the plant's condition, the predictability of water flow, and power purchase agreements. Another common metric in the power industry is the price per kilowatt (kW) of installed capacity.

This is often used for comparison with development or replacement costs.

Installed Cost per kW

The valuation of a plant can be benchmarked against its original or replacement cost.

The typical range for small hydropower projects (1-10 MW) in the U.S. is approximately $1,300 to $8,000 per kilowatt (kW).

Cost Variations

Refurbishment or adding capacity at existing non-powered dams can be cheaper, potentially as low as $500/kW, while greenfield development often falls in the $3,000 to $7,000/kW range.

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Transaction Comps – $/kW for Hydro Assets

From the U.S. Hydropower Market Report (2023), DOE summarizes four hydropower sales (2020–2023) where prices were disclosed:

The Department of Energy's Energy.gov

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HQI US Holding (Hydro-Québec)

  • 13 hydropower plants, 589 MW (Northeast)
  • Approximate value $2.0B including 30k acres of land
  • Price ≈ $3,400/kW
2

Hydrogen Charbone Corp

  • 3 small hydros in Michigan
  • Operational 2.75 MW total hydro output
  • Price ≈ $1,309/kW
3

PG&E → SMUD

  • Operational 10.4 MW total hydro output
  • Price ≈ $903/kW
4

PG&E → Kern & Tule Hydro

  • Out-of-service 6.4 MW plant
  • Price ≈ $506/kW

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Earnings Multiple Model

Considered valuation method of CWPco after CFSU is up listed to a Major U.S. Stock Exchange, and power output increases to support defense contractors.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is the most common metric for valuing operational power generation assets.

EBITDA Multiples

Typical Range

The typical EV/EBITDA ratio for a hydroelectric power plant is approximately 6x to 13x, depending on whether it is a private or public company and its specific risk profile, and renewable energy assets often command higher multiples due to stable cash flows and long asset lives.

Green Energy Companies

Typical ranges for small hydro plants producing 10 MW to 50 MW can vary widely, but general green energy companies have median EV/EBITDA (Enterprise Value/EBITDA) multiples around 11x to 13x, with top performers reaching over 20x.

Portfolio Sales

Specific small-to-medium hydropower portfolios have been sold at multiples such as 7.7x.

The exact multiple is heavily negotiated based on risk profile, remaining license life, and certainty of revenue (e.g., long-term power purchase agreements command higher multiples).

Profit & Loss

The updated financial overview in the table below includes performance through Q3 2025 and confirms several long-term structural trends in CWPCo’s profitability. While total revenue for 2025 is not included in this table, the profitability metrics indicate continued operational stability despite substantial variations in load, hydrology, and customer mix.

CWPCo’s financial performance from 2020 through Q3 2025 demonstrates a structurally stable and resilient profitability profile, despite significant year-on-year fluctuations in operating revenues driven primarily by hydrology and industrial customer usage patterns. EBITDA improved markedly in 2021 and 2022, reflecting strong load conditions and efficient cost control, before softening in 2023–2024 as industrial demand declined.

The Q3 2025 results continue this stabilizing trend, with year-to-date EBITDA of USD 2.2m and EBIT of USD 0.7m, both indicating that the company is on track to deliver a positive full-year (2025) result consistent with its 2024 performance. Operating Income remains positive for the fifth consecutive year, reinforcing the underlying stability of the hydropower operations.

Key takeaway

Even with lower sales volumes, the EBITDA margin remains relatively stable, indicating:

A strong fixed-cost structure, Robust O&M discipline, Regulated cost recovery mechanisms, and relatively low sensitivity to volume swings compared to revenue. This stability is typical for hydropower-based utilities with long-lived assets.

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Key Factors Influencing the Multiple

The specific multiple will depend on several factors:

Ownership

Private companies often trade at lower multiples than public ones.

Contract Structure

Hydropower assets with stable, long-term power purchase agreements (PPAs) typically command higher multiples due to predictable cash flows, which investors value.

Asset Size and Age

Smaller, older plants might have higher operational costs and trade at lower multiples compared to large, modern facilities.

Regulatory Environment

Plants in stable, favorable regulatory environments are seen as less risky and thus attract higher valuations.

Growth Potential

While utilities are generally considered slower-growth industries and thus have lower multiples than tech companies, the renewable energy sector has seen strong investment, which can push multiples toward the higher end of the range

Important Considerations for Multiples

  • Site Specificity: Unlike other renewables, hydro valuation is extremely site-specific due to unique flow rates, head (vertical drop of water), and environmental constraints.
  • Capacity Factor: A plant's actual output relative to its maximum capacity is a key driver of earnings, directly impacting the appropriate multiple.
  • Licensing: The status and length of the FERC operating license are critical, as relicensing is a complex and potentially costly process that affects long-term profitability.
  • Asset vs. Income Approach: For operational plants, an income approach (DCF/EBITDA multiple) is generally more reflective of the business's value than a pure asset-based approach, which may not capture future earning potential or regulatory burdens.



A recent 3rd quarter 2025 report published by PCE Valuations, LLC. can be reviewed at:

HTTPS://WWW.PCECOMPANIES.COM/RESOURCES/INDUSTRY-REPORTS/POWER-ENERGY-Q3-2025-PCE-INVESTMENT-BANKERS

Power & Energy Q3 2025

OCTOBER 13 2025

(Also see the same report below)

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Power & Energy Q3 2025

OCTOBER 13 2025

HTTPS://WWW.PCECOMPANIES.COM/RESOURCES/INDUSTRY-REPORTS/POWER-ENERGY-Q3-2025-PCE-INVESTMENT-BANKERS

Executive Summary

M&A activity in the Power & Energy sector slowed further in Q3 2025, with 258 transactions closed in the last twelve months (LTM), down from 323 in the prior year. Strategic buyers drove 78.3% of transactions, financial buyers 19.0%, and undisclosed buyers 2.7 %. This reflects a market still focused on consolidation and scale, even amid weak volume. Despite fewer deals, valuations remain resilient: the median TEV/EBITDA edged up to 10.73× (from 10.67×), and the median TEV/Revenue increased to 3.68× (from 3.34×). Buyers continue to compete aggressively for high-quality, contracted, and strategically important assets. 1

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes

EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization

LTM - Last Twelve Months

TEV - Total Enterprise Value

Information Sources:

  1. Source: CapIQ data (Transaction volume, buyer composition, valuation multiples, geographic distribution, and deal data).
  1. IEA. "Executive summary – World Energy Investment 2025." 2025.
  1. Wood Mackenzie. "Power transformers and distribution transformers will face supply deficits of 30% and 10% in 2025.14 August, 2025.
  1. McKinsey. "How might tariffs affect the energy transition?” 22 July, 2025.
  1. IEA. "AI is set to drive surging electricity demand from data centres." 10 April, 2025.
  1. McKinsey. "Rich in resilience: Dealmakers deliver strong first-half results in M&A." 7 August, 2025.
  1. Argus Media. "Tariffs, policy shifts hold back US renewables." 5 September, 2025.
  1. Utility Dive. "Why surging demand and grid transformation will define utilities in 2025." 9 May, 2025.

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Market Dynamics

Deal activity in Power & Energy declined 20.1% year-over-year. This continues the multi-year downtrend from the 2021 peak of 504 deals. High financing costs, regulatory uncertainty, and delays in grid interconnections and equipment supply have elevated execution risk and tempered deal activity. However, higher valuation multiples show a “flight to quality”: acquirers are paying up for assets with long-term contracts, regulated revenue, or strategic positioning in energy transition and reliability. 1

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Buyer Landscape

Strategic Acquirers: Leading with 202 deals (78.3%), strategic buyers targeted pipeline, energy transition, and grid infrastructure assets to corner critical capabilities in transmission and distribution. A signature deal was Brookfield Infrastructure Partners L.P.’s ~$9 billion acquisition of Colonial Enterprises, enhancing its pipeline/infrastructure footprint. 1

Financial Buyers: Closed 49 deals (19.0%), with sponsors favoring regulated utility carve-outs and stable cash flows. The top financial deal was Bernhard Capital Partners’ acquisition of Entergy New Orleans’ gas business for $286 million. 1

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Industry Comparison

The sector’s ~20.1 % drop in deal volume is steeper than in many resilient sectors, but the presence of several large-scale strategic deals underscores that infrastructure imperatives (pipeline, grid, firm power) still override broad market caution. Rising or stable multiples suggest a bifurcation: premium, lower-risk assets attract aggressive bids; the broader field sees limited appetite. 6



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Geographic Expansion

Top U.S. States

Deal flow was concentrated in Texas (51 deals), California (22), and New York (10), reflecting a mix of oil & gas, renewables integration, and grid modernization in those states.1

Cross-Border Trends

Though most deals remained domestic, international capital continues to participate. Notable cross-border or foreign buyer activity includes Brookfield (Canada) acquiring Colonial, Rosebank Industries plc (UK) acquiring Electrical Components International, and Partners Group (Switzerland) investing in U.S. power platform deals.1


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Notable Transactions

Largest Transactions Closed



Other Financial Buyer Transactions Closed


Other Strategic Buyer Transactions Closed

Source S&P Capital IQ as of 10/2/2025 and PCE Proprietary Data

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Emerging Trends

Key trends shaping Power and Energy M&A:

1

Grid Modernization & T&D Upgrades

Utilities are accelerating investment to relieve congestion, modernize networks, and support load growth, creating demand for M&A in grid equipment and service companies. 4

2

AI / Data Center Power Demand

Surging demand from hyper scalers is pushing buyers toward firm generation and grid interface assets. 5

3

Supply Chain and Equipment Constraints

Transformer and critical component scarcity is reshaping timelines, forcing prioritization of companies with supply chain strength. 3

4

Sponsor Focus on Regulated & Contracted Platforms

Private capital increasingly favors cash flows insulated from merchant exposure for lower underwriting risk. 6

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Subsector Spotlight: Power Generation

This subsector is a focal point of M&A as utilities and investors seek to balance reliability with decarbonization. Assets with flexible generation capabilities that can support intermittent renewables are commanding premium valuations. 7

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Subsector Spotlight: Energy Equipment & Services

Consolidation continues among service providers as companies aim to offer integrated solutions. Deals are focused on acquiring specialized technologies and expanding service offerings to support efficiency, from drilling to renewable project development. 8


Outlook for Next Quarter (Q4 2025)

Power and AI Data Center Opportunities:

The acceleration of electrification, data center buildouts, and renewed federal infrastructure funding will likely sustain strategic demand for transmission, storage, and firm power assets. 2

Risks (for others) Opportunity (for CWPco)

Execution risk is high. With permitting delays, interconnection backlogs, equipment supply constraints, and policy shifts, tariffs could substantially slow or scuttle deals. 3

Predicted Activity

Expect continued divestitures of non-core assets by large corporations seeking to streamline their portfolios. Private equity firms, armed with significant dry powder, are expected to remain active, pursuing take-private deals and forming strategic partnerships to fund large-scale energy infrastructure projects. 5

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes

EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization

LTM - Last Twelve Months

TEV - Total Enterprise Value

Information Sources:

  1. Source: CapIQ data (Transaction volume, buyer composition, valuation multiples, geographic distribution, and deal data).
  1. IEA. "Executive summary – World Energy Investment 2025." 2025.
  1. Wood Mackenzie. "Power transformers and distribution transformers will face supply deficits of 30% and 10% in 2025.14 August, 2025.
  1. McKinsey. "How might tariffs affect the energy transition?” 22 July, 2025.
  1. IEA. "AI is set to drive surging electricity demand from data centres." 10 April, 2025.
  1. McKinsey. "Rich in resilience: Dealmakers deliver strong first-half results in M&A." 7 August, 2025.
  1. Argus Media. "Tariffs, policy shifts hold back US renewables." 5 September, 2025.
  1. Utility Dive. "Why surging demand and grid transformation will define utilities in 2025." 9 May, 2025.

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