Spreadsheet: michelle_lokay__26653__redrockcomp120Cs
Sheet: Sheet1

Tranwwestern Pipeline Company
Red Rock Analysis Comparison (120 Case)
(MM's)
Investment | 72
Equity Investment
Unleveraged - Income before Income Taxes (Budget Year) | DCF | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016
Original Contracts | 0.0624 | 7.92 | 6.98 | 5.67 | 5.64 | 5.61 | 8.64 | 8.59 | 8.56 | 8.54 | 8.54 | 8.48 | 8.45 | 7.91 | 7.73 | 7.68
Original Contracts and non contract volumes @ $[NAME] | 0.1514 | 11.91 | 15.33 | 14.83 | 14.8 | 14.78 | 15.51 | 15.45 | 15.43 | 15.4 | 15.4 | 15.35 | 15.32 | 15.32 | 15.32 | 15.26
Original Contracts and New PPL Contract | 0.0686 | 8.47 | 8.04 | 6.7 | 6.67 | 6.63 | 6.65 | 8.59 | 8.57 | 8.54 | 8.55 | 8.49 | 8.46 | 7.92 | 7.74 | 7.68
Unleveraged - NPV @ 7.5% (Annual from In Service) | NPV | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15
Original Contracts | 65.959 | 8.95 | 7.75 | 6.69 | 6.44 | 6.2 | 7.86 | 7.73 | 7.72 | 7.7 | 7.7 | 7.67 | 7.65 | 7.32 | 7.21 | 7.18
Original Contracts and non contract volumes @ $[NAME] | 108.081 | 13.79 | 12.87 | 12.3 | 12.05 | 11.82 | 12.06 | 11.94 | 11.92 | 11.91 | 11.91 | 11.88 | 11.86 | 11.86 | 11.86 | 11.82
Original Contracts and New PPL Contract | 68.475 | 9.59 | 8.39 | 7.31 | 7.05 | 6.81 | 7.85 | 7.73 | 7.71 | 7.7 | 7.7 | 7.67 | 7.65 | 7.32 | 7.2 | 7.17
Leveraged - Income before Income Taxes (Budget Year) | DCF | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016
Original Contracts | 0.081 | 6.02 | 3.95 | 2.84 | 3.04 | 3.23 | 6.47 | 6.63 | 6.82 | 7.01 | 7.23 | 7.39 | 7.58 | 7.25 | 7.29 | 7.45
Original Contracts and non contract volumes @ $.095 | 0.1508 | 7.79 | 7.44 | 6.63 | 6.82 | 7.01 | 7.95 | 8.12 | 8.31 | 8.5 | 8.72 | 8.88 | 9.06 | 8.85 | 8.93 | 9.09
Original Contracts and New PPL Contract | 0.0952 | 6.57 | 5 | 3.89 | 4.06 | 4.25 | 6.48 | 6.64 | 6.83 | 7.02 | 7.24 | 7.4 | 7.59 | 7.26 | 7.3 | 7.45
Original Contracts and New PPL Contract and volumes @ $.0825 | 0.1521 | 7.91 | 7.66 | 6.83 | 7.02 | 7.21 | 7.76 | 7.92 | 8.11 | 8.31 | 8.52 | 8.68 | 8.87 | 8.64 | 8.72 | 8.88
Original Contracts and New PPL Contract and Western (5Yrs @ $.35) | 0.1209 | 7.52 | 6.83 | 5.69 | 5.88 | 6.05 | 6.47 | 6.63 | 6.82 | 7.01 | 7.23 | 7.39 | 7.58 | 7.25 | 7.29 | 7.45
Original Contracts and New PPL, Western (5Yrs @ $.35) and other at $.0325 | 0.1526 | 8.24 | 8.26 | 7.36 | 7.55 | 7.74 | 6.99 | 7.15 | 7.34 | 7.53 | 7.75 | 7.91 | 8.1 | 7.81 | 7.86 | 8.02
Original Contracts and New PPL Contract and Western (15Yrs @ $.225) | 0.1257 | 7.31 | 6.39 | 5.24 | 5.43 | 5.62 | 7.3 | 7.46 | 7.65 | 7.84 | 8.07 | 8.22 | 8.41 | 8.08 | 8.12 | 8.28
Original Contracts and New PPL, Western (15Yrs @ $.225) and other at $.0307 | 0.1523 | 8 | 7.78 | 6.87 | 7.06 | 7.25 | 7.66 | 7.82 | 8.01 | 8.21 | 8.43 | 8.58 | 8.77 | 8.48 | 8.53 | 8.69
Original Contracts and New PPL Contract and BP Energy | 0.1577 | 9.73 | 9.24 | 6.91 | 6.95 | 7.13 | 6.47 | 6.63 | 6.82 | 7.01 | 7.23 | 7.39 | 7.58 | 7.25 | 7.29 | 7.45
Leveraged - NPV @ 7.5% (Annual from In Service) | NPV | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15
Original Contracts | 29.673 | 4.08 | 3.03 | 2.09 | 1.98 | 1.87 | 3.66 | 3.66 | 3.78 | 3.9 | 4.03 | 4.13 | 4.24 | 4.04 | 4.07 | 4.17
Original Contracts and non contract volumes @ $.095 | 43.151 | 6.22 | 5.17 | 4.41 | 4.28 | 4.18 | 4.56 | 4.57 | 4.69 | 4.81 | 4.94 | 5.04 | 5.15 | 5.02 | 5.07 | 5.17
Original Contracts and New PPL Contract | 32.28 | 4.74 | 3.68 | 2.73 | 2.6 | 2.5 | 3.66 | 3.67 | 3.78 | 3.9 | 4.03 | 4.13 | 4.25 | 4.05 | 4.07 | 4.17
Original Contracts and New PPL Contract and volumes @ $.0825 | 43.11 | 6.37 | 5.3 | 4.53 | 4.41 | 4.31 | 4.45 | 4.45 | 4.57 | 4.69 | 4.82 | 4.92 | 5.03 | 4.9 | 4.94 | 5.04
Original Contracts and New PPL Contract and Western (5Yrs @ $.35) | 36.79 | 5.9 | 4.8 | 3.83 | 3.71 | 3.6 | 3.66 | 3.66 | 3.78 | 3.9 | 4.03 | 4.13 | 4.24 | 4.04 | 4.07 | 4.17
Original Contracts and New PPL, Western (5Yrs @ $.35) and other at $.0325 | 42.21 | 6.77 | 5.67 | 4.85 | 4.73 | 4.63 | 3.98 | 3.98 | 4.1 | 4.22 | 4.35 | 4.45 | 4.56 | 4.38 | 4.41 | 4.51
Original Contracts and New PPL Contract and Western (15Yrs @ $.225) | 38.126 | 5.64 | 4.52 | 3.55 | 3.43 | 3.33 | 4.17 | 4.17 | 4.29 | 4.41 | 4.54 | 4.64 | 4.75 | 4.55 | 4.57 | 4.67
Original Contracts and New PPL, Western (15Yrs @ $.225) and other at $.0307 | 42.977 | 6.48 | 5.37 | 4.55 | 4.43 | 4.33 | 4.39 | 4.39 | 4.51 | 4.63 | 4.76 | 4.86 | 4.97 | 4.8 | 4.83 | 4.92
Original Contracts and New PPL Contract and BP Energy | 42.11 | 8.57 | 6.27 | 4.58 | 4.36 | 4.26 | 3.66 | 3.66 | 3.78 | 3.9 | 4.03 | 4.13 | 4.24 | 4.05 | 4.07 | 4.17
Unleverage NPV Required to Cover Investment Shortfall
Volume | 15.8
Rate | 0.26
Years | 5
NPV
Assumptions:
Existing Horsepower operating cost is $85/HP and replacement Horsepower operating cost is $35/HP
Fuel Prices is based on forward curve as of 1-4-2001 from RAC.
Site [NAME] is 80,500 and required horsepower is 73,155
BTU/HPHR for new unit is 7300 and for old units 7000.
Old units will be abandon
Ad Valorem Tax will be the same for Options 1 & 2
Future Capital Avoidance not included in analysis
30 Yr Book Depreciation Life
15 Yr Tax Depreciation Life
[NAME] starts in 2007
Discount Factor
 | 1
 | 2
 | 3
 | 4
 | 5
 | 6
 | 7
 | 8
 | 9
 | 10
 | 11
 | 12
 | 13
 | 14
 | 15
 | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15
Risk Free Rate | 0.075
Discount Factor @ Rf