We've
prepared answers to the list of frequently asked questions shown below.
Just click on the question(s) you're interested in to see the answer.
If you have a question that's not addressed here, please send us an
email by clicking on the "Contact" tab at the top of this page.
Can my local utility or power marketer provide what CFR offers?
CFR’s offering is distinctive in the market and its business model has
been designed to achieve its mission: Help large end-users achieve
their energy aspirations with tailored, economically-attractive
renewable supply solutions that produce the benefits of ownership
without the hassle. Utilities’ and power marketers’ missions, customer
orientation and incentives are different – their primary focus is on
earning a return on physical assets or maximizing margin on resold
power. This makes it extremely difficult, if not impossible, for them
to match CFR’s value proposition.
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Why work with CFR when I could build my own renewable solutions?
Most companies view energy supply development and management as outside
their core business focus. CFR is set up to deliver economically
attractive solutions in an efficient and effective way. In addition,
there are benefits of being part of a larger whole (e.g., participating
in a larger capacity pool, privileged relationships with turbine and
other supplier) that a company could not replicate on their own.
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Can I trust CFR to look out for my interests?
CFR’s mission and values were patterned after leading professional
service firms and were designed to always put customers’ interests
first. 100% of CFR’s focus is on creating and delivering solutions that
exceed the expectations of its customers. CFR’s incentives ensure it
focuses on maximizing value by being tied directly to the revenues
generated by customer capacity (both kWh and price).
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Why now?
Acting sooner rather than later will likely produce better outcomes.
Current market conditions make many wind farm costs (land, turbines,
construction labor) lower today than they will be as the economy
rebounds. In addition, as energy costs go up with increased economic
activity, CFR’s returns improve. Finally, CFR has been organized to
access from day one the best design, development and delivery
capabilities to expedite the development process.
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Who owns the wind farm capacity?
CFR has ownership and operational responsibility for the assets. We
eliminate the hassle of ownership. Customers contract for the amount of
generating capacity (MW) that meets their needs over the life of the
project and receive the operational and economic benefits of the
underlying assets.
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What operational risks may alter my expected ROI with CFR?
The capacity factor of the generating assets (i.e., actual kWh output
relative to theoretical maximum) and market power prices are the two
biggest factors. CFR assumes conservative base lines for both and
they’re transparent to its customers. Depending on risk tolerance, we
can also deploy strategies that help mitigate operational risks.
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Won’t some of CFR’s smaller, inside the fence options be uneconomic?
CFR’s mission focuses it on identifying and pursuing value-creating
projects. As such, the argument for entering into subscale projects
rests with its customers.
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What happens if CFR changes hands or goes out of business sometime during the contract period?
The physical assets customers contract for with CFR have a long
expected life and they retain their interests and rights to those
assets for the agreed duration. In addition, CFR’s operational
incentives are designed to maximize the benefits of those assets over
the life of the contract and would be contractually assumed by any CFR
successor.
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Can I liquidate my investment during the 20 year time frame?
Yes. CFR’s contracts with each customer provide a long-term commitment
on a specified amount of physical generating capacity. As such, these
contracts can be valued and resold to other purchasers at any point
during the duration of the contract. We anticipate that the liquidity
of these contracts will increase over time as more end-users become
aware of the benefits of CFR’s model.
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Won’t it take 2-3 years before my units become operational?
In many cases we can shorten the normal development cycle through our
partnership with developers. Our primary focus is on developing sites
that are "shovel ready" as opposed to starting from square one. Our
goal will generally be to deliver operating assets in a 12-18 month
time frame. |
