Michael Hsu

Dr. Hsu advises corporations and law firms on a broad spectrum of litigation and strategic issues. He consults with utilities and power generators in the energy industry on portfolio risk management strategy and valuation matters pertaining to physical and financial assets. He is one of the first practitioners to apply the spark spread option concept in valuing natural gas power plants. Dr. Hsu also has been engaged on varied business litigation cases including breach-of-contract, securities fraud, and patent infringement disputes. Recently, his analysis was instrumental in facilitating a $30 million settlement for a leasing company in its breach-of-contract lawsuit against a major computer equipment manufacturer. For the case, Dr. Hsu developed a complex financial model to track the lost business opportunities and determine the profits that the leasing company would have earned but-for the breach. Dr. Hsu has published numerous articles on power asset valuation, energy price risk management, and transmission pricing, and has presented his research at industry conferences.

 Articles by this Author

Spark Spread Options Are Hot!

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Published in: The Electricity Journal
Publication year: 1998

In a competitive electricity industry, natural gas power plant operators should dispatch a generation unit based on prevailing spot electricity and gas prices. This choice is best described by the “spread option” concepts often discussed in the financial arena. Ignorance of these concepts will inevitably lead to values lost.