Spreadsheet: richard_sanders__31743__Brazos Buyout @ 07-Nov-00 (WIP)
Sheet: Litigation Analysis

Brazos Electric Power Cooperative, Inc.
Cleburne Analysis ($000)
This Information Is CONFIDENTIAL Per Section 5 of the Facilitation Agreement
 |  |  |  |  |  |  | t = 0
Judgement in Year |  |  |  |  | 3 | Date =
Pre-Judgement Interest |  |  |  |  | 0.06 | n =
Contract Discount Rate |  |  |  |  | 0.05 | PVIF =
Legal Costs ($/Year) |  |  |  |  | 10000
10 Year Treasury
RUS Spread
Discount Rate |  |  |  |  |  | PVIF =
Merchant Discount Rate |  |  |  |  | 0.14
Spread |  |  |  |  | 0
Discount Rate |  |  |  |  |  | PVIF =
Statutory Discount Rate |  |  |  |  | 0.06
Spread |  |  |  |  | 0
Discount Rate |  |  |  |  |  | PVIF =
Liquidated Damages Per Contract:
 | Contract Capacity |  |  |  |  |  | (kW)
 | Months in Year |  |  |  |  |  |  | 12
 | Billing Units |  |  |  |  |  | (kW)
 | Capacity Component ($/kW) |  |  |  |  |  | ($/kW-mo.)
 | O & M Adjustment ($/kW) |  |  |  |  |  | ($/kW-mo.) | -3.42 | -5.95 | -2.65 | -2.74 | -5.33 | -4.45 | -3.19 | -10.45 | -3.53 | -3.75 | -6.74 | -4.08 | -4.32 | -9.21 | -4.73 | -4.99 | -10.49 | -5.5 | -8.87
 | Buyout Capacity Component ($/kW)
 | Capacity Payment
 | DCF Per Contract
 | Damages Awarded @ NPV |  |  |  |  |  |  |  |  | 362118.8860725815
 | DCF
FMV Offset:
 | Market Price |  |  |  |  |  | ($/MWh)
 | Quantity Sold |  |  |  |  |  | (MWh)
 | Merchant Revenue
 | Operating Costs (PPE Proforma Net of EWG Savings)
 | Operating Margin
 | DCF
 |  |  |  |  |  |  |  | Equal To |  | Per kW
Pre-Judgement Interest:
 | Damage Award
 | Annual Interest from Date of Breach @
 | DCF
Legal Costs:
 | Annual Cost
 | DCF
Replacement Contract
 | Market Price |  |  |  |  |  | ($/MWh)
 | Purchased Quantity |  |  |  |  |  | (MWh)
 | Cost of Replacement Contract
 | DCF
Total Cost to Brazos
NPV Savings (Cost) vs. [NAME]
NPV Savings (Cost) vs. Ownership
[NAME] |  |  |  |  |  |  |  |  |  | ENA Perspective
Cleburne Litigation Risk Analysis |  |  |  |  |  |  |  |  |  | Cleburne Litigation Risk Analysis
 |  |  |  |  |  |  |  | Break-Even
 |  |  |  |  |  | Section | Break-Even | to Own at |  |  |  |  | 2000-06-30 00:00:00 | 2001-06-30 00:00:00 | 2002-06-30 00:00:00 | 2003-06-30 00:00:00 | 2003-12-31 00:00:00
 |  |  |  |  | Note | 11.02 (PV5) | to PPA | $405.1 EV |  | Section 11.02 (PV5)
 |  |  |  |  |  |  |  |  |  | Purchase Price |  |  | -210800
Partnership Capital |  |  |  |  |  |  |  |  |  | "Book-Up" |  |  | -19200
Bank Capital |  |  |  |  | (1) |  |  |  |  | Legal Costs
Total "Damages" Awarded |  |  |  |  |  | 531853.6850679944 | 362118.8860725815 | 227436.2758843209 |  | Damages & Interest
 |  |  |  |  |  |  |  |  |  | Legal Costs
 |  |  |  |  |  |  |  |  |  | [NAME] (Pace)
NPV Impact on Brazos Electric |  |  |  |  |  |  |  |  |  | Debt Service |  |  | 0 | -15447.7109685329 | -15234.9991961905 | -15413.5187267937 | -138456
Total "Damages" Awarded |  |  |  |  | (2) |  |  |  |  | Total
FMV Offset |  |  |  |  | (3) |  |  |  |  | XNPV | 0.1125
Pre-Judgement Interest |  |  |  |  | (4) | 89890.4322870377 | 61202.96638389079 | 38439.79224169873
Legal Costs |  |  |  |  | (5) |  |  |  |  | Break-Even to ENA "Carried Value"
Replacement Contract |  |  |  |  | (6) |  |  |  |  | Purchase Price
Total Cost |  |  |  |  |  |  |  |  |  | "Book-Up"
 |  |  |  |  |  |  |  |  |  | Legal Costs
PPA Cost |  |  |  |  |  |  |  |  |  | Damages & Interest |  |  |  |  |  |  | 531216.8841770539
Delta vs. PPA |  |  |  |  |  |  |  |  |  | Legal Costs
 |  |  |  |  |  |  |  |  |  | Debt Service
Ownership Cost |  |  |  |  |  |  |  |  |  | Total
Delta vs. Ownership |  |  |  |  |  |  |  |  |  | XNPV
 |  |  |  |  |  |  |  |  |  | Worst Case (UCC Interpretation)
 |  | NOTES: |  |  |  |  |  |  |  | Purchase Price
 |  |  |  |  |  |  |  |  |  | "Book-Up"
 |  |  |  |  |  |  |  |  |  | Legal Costs
 |  |  |  |  |  |  |  |  |  | Damages (Including PLD) & Interest
 |  | (1) | At December 31, 2000 |  |  |  |  |  |  | Legal Costs
 |  | (2) |  |  |  |  |  |  |  | Debt Service
 |  | (3) |  |  |  |  |  |  |  | Total
 |  | (4) |  |  |  |  |  |  |  | XNPV
 |  | (5)
 |  | (6) | Assumes pricing from Pace Global Energy, 2001-36
 | [NAME] Interpretation
 | Contract Price Upon Breach
 | Market Price Upon Breach
 | Delta Price
 | Quantity Purchased
 | Project-Level Debt
 | Total Damages