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  "documentTitle": "Sunrun Inc. (RUN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
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  "presentationDate": "2022-07-28 00:00:00",
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  "notes": "This is a research note page focusing on financial modeling critique.",
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      "text": "The net result of these models is to value RUN Power Purchase Agreements (“PPAs”) at ~$4.75 to $5.00 / watt. We believe that a far more realistic approach would yield a value of approximately $3.65 / watt.",
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      "text": "Renewal Rate: RUN assumes that 90% of subscribers renew after the 20- / 25-year contract period through 30 years... Panel Removal Cost: RUN assumes zero cost... Maintenance Cost: RUN assumes maintenance costs of $15 / kW.",
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      "text": "RUN utilizes two different sets of models to significantly manipulate values for investor and tax incentive purposes, respectively the “Investor Models” and “Tax Models.” The Investor Models and one of the Tax Models, the “Income Approach” use a discounted free cash flow analysis. The net result of these models is to value RUN Power Purchase Agreements (“PPAs”) at ~$4.75 to $5.00 / watt. We believe that a far more realistic approach would yield a value of approximately $3.65 / watt.",
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      "text": "6 RUN claims its Net Earning Assets represent the company’s proportional claim on PPA cash flows... 7 RUN 2021 10-K, p. 59. 8 We forecast higher churn in Years 21 and 26...",
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      "kind": "title",
      "text": "How RUN Builds Reality Intolerant Models",
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