Publications
Publications
- January 1996 (Revised February 1997)
- HBS Case Collection
Tennessee Valley Authority: Option Purchase Agreements
By: Peter Tufano
Abstract
James Cross, VP of customer planning at the Tennessee Valley Authority, a major supplier of electric power in the Southeast United States, is considering meeting its incremental capacity needs by creating new financial contracts, Option Purchase Agreements (OPAs) to buy or sell electricity. Cross must resolve many design issues with the OPAs and evaluate the OPA proposal in light of the rapidly evolving, increasingly competitive electricity market.
Keywords
Risk and Uncertainty; Risk Management; Energy Generation; Corporate Finance; Energy Industry; United States
Citation
Tufano, Peter, and Cameron Poetzscher. "Tennessee Valley Authority: Option Purchase Agreements." Harvard Business School Case 296-038, January 1996. (Revised February 1997.)
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