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The company’s property, plant and equipment relates to the operating segments as shown in the following table: 

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The table above outlines property, plant and equipment measured at fair value, all of which are classified as level 3 in the fair value hierarchy given the inclusion of unobservable inputs outlined below. 

## a) Renewable Energy 

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Renewable energy assets include the company’s hydroelectric generating stations, wind energy, pumped storage and natural gas-fired co-generation facilities. 

Renewable energy assets are accounted for under the revaluation model and the most recent date of revaluation was December 31, 2013. Valuations utilize significant unobservable inputs (level 3) when determining the fair value of renewable energy assets. The significant level 3 inputs include: 

## Valuation technique(s) 

Discounted cash flow models 

## Significant unobservable input(s) 

• Future cash flows – primarily driven by future electricity price assumptions 

• Discount rate 

• Terminal capitalization rate 

## Relationship of unobservable input(s) to fair value 

• Increases (decreases) in future cash flows will increase (decrease) the fair value 

• Increases (decreases) in discount rate will decrease (increase) the fair value 

• Increases (decreases) in terminal capitalization rate will decrease (increase) the fair value 

The company’s estimate of future renewable power pricing is based on management’s estimate of the cost of securing new energy from renewable sources to meet future demand by 2020, which will maintain system reliability and provide adequate levels of reserve generations. 

The key valuation metrics of the company’s hydro and wind generating facilities at the end of 2013 and 2012 are summarized below. 

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Terminal values are included in the valuation of hydroelectric assets in the United States and Canada. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset without consideration of potential renewal value. The weighted-average remaining duration at December 31, 2013 is 16 years (2012 – 17 years). Consequently, there is no terminal value attributed to the hydroelectric assets in Brazil. 

