Spreadsheet: benjamin_rogers__1217__UAE's Cost Model 03-23-00
Sheet: Assumptions

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PROJECT NAME: UAE-Lowell
UAE Cost Sceanrio
ASSUMPTIONS & SUMMARY OUTPUT
SOURCES & USES: |  |  |  |  | PROJECT DESCRIPTION: |  |  |  |  |  | OPERATING COSTS ASSUMPTIONS (FROM ENGINEERS/ASSET MANAGEMENT): |  |  |  |  |  |  |  |  | Fuel | Capacity $ | VOM | Residual Value | Capacity | Chillers | Compressor | Debt
 |  |  |  |  |  |  |  |  |  |  | (1st year Annualized) |  |  |  |  |  |  |  |  | Index | Base | Pass-through | EBITDA Exit Multiple | ISO | Yes | Yes | Bank LT Debt
Sources of Funds | % | 000 $ | $/kW |  | Type of Turbine |  | LM6000 |  |  |  |  |  |  |  |  |  |  |  |  | Fixed | Low | Not Pass-through | % of Project Cost | 95 degrees | No | No | Capital Market
Total Equity |  |  |  |  | Cost Per Turbine (w Carry Cost) (000$) |  | 14260 |  |  |  | CPI Escalator (%) |  | 0.03 |  |  |  |  |  |  | Custom | Index |  | 000$/MW |  |  |  | Mini-perm
Debt Issuance |  |  |  |  | Number of Turbines |  | 5 |  |  |  |  |  |  |  |  |  |  |  |  |  | Custom |  | None
 |  |  |  |  | Net Turbine Rating (MW) |  | 46 |  |  |  | Escalated Costs: |  |  |  |  |  |  |  |  | 1 | 1 | 1 | 1 | 2 | 1 |  | 1
Total Sources |  |  |  |  | Heat Rate-New and Clean (HHV) |  | 10100 |  |  |  |  |  | 000$ -year | $/kW-year | $/mWh
 |  |  |  |  | Heat Rate-Degraded (HHV) |  | 10200 |  |  |  | Variable Operating Cost |  |  |  | 0.3
 |  |  |  |  | No. of Construction Months |  | 7 |  |  |  | Major [NAME] |  |  |  | 1.9 |  |  |  |  |  | With Chillers | Without Chillers
Uses of Funds |  |  |  |  | Start of Commercial Operation |  | 2001-05-01 00:00:00 |  |  |  | Total VOM |  |  |  |  |  |  |  |  | ISO | 11 | 21
 |  |  |  |  | No. of Months in the 1st Operating year |  | 8 |  |  |  |  |  |  |  | ESC. |  |  |  |  | 95o | 12 | 22
EPC (From Engineers/Nepco): |  | ENA Turbines with UAE Costs |  |  | Project Life (Years) |  | 20 |  |  |  | Labor, [NAME]. Inspection, Fixed (Maint), Op. Fee |  | 494
Turbine (with Carrying Cost) |  |  |  |  | Location (State) |  | MA |  |  |  | Property & BI Insurance |  | 400
Sprint Package Adder |  | 0 |  |  |  |  |  |  |  |  | Water Supply Discharge |  | 0
BOP & Construction |  | 10220 |  |  | Residual Value (at year 20) |  |  |  |  |  | Nox Budget/Audit Costs |  | 125
Pipeline |  | 1500 |  |  | EBITDA Exit Multiple |  | 5 |  |  |  | Water / Supply Discharge |  | 100
Switchgear/MCC/Relays |  | 1250 |  |  | % of Initial Project Cost |  | 0.2 |  |  |  | Asset Mhmt. Cost |  | 100
SCR, CO oxidation Catalyst, DLE Combuster Turbine |  | 6150 |  |  | $/kW |  | 200 |  |  |  | Interconnect & Nepool Fees |  | 100
Dual Fuel |  | 0 |  |  |  |  |  |  |  |  | Total Fixed Escalating Cost
Black Start |  | 0 |  |  | FINANCING ASSUMPTIONS:
Gas Compression |  | 1500 |  |  | DEBT |  | Construction Loan |  |  |  | Non-Escalated Costs:
Demineralized Water Facility |  | 0 |  |  | Debt Issued | 2000-10-01 00:00:00 |  |  |  |  | Fuel
Stacks, [NAME], Buildings |  | 1500 |  |  | Treasury Rate as of: | 2000-02-15 00:00:00 |  |  |  |  | Property Tax |  | 500 |  | 0.02
Freight |  | 500 |  |  |  |  |  |  |  |  | Franchise Tax
Overhead & Fees - EE&CC |  | 0 |  |  | Amount ('000 $) |  |  |  |  |  | [NAME]
Overhead & Fees - Nepco |  | 0 |  |  | Term (yrs) | 20 |  |  |  |  | Debt Service Reserve Fee
LMP Cost Adder |  |  |  |  | Final Maturity | 2017-04-01 00:00:00
Chillers (Check that BOP did not already include this) |  | 0 |  |  | Average Life (yrs) |  |  |  |  |  | DEPRECIATION ASSUMPTIONS:
Sub Total
 |  |  |  |  | Treasury Rate (%) | 0.065 | 0.065 |  |  |  |  |  | Year | Method | Residual (%)
Soft Cost (From Engineers/Asset Management): |  |  |  |  | Spread (%) | 0.0175 | 0.0175 |  |  |  | Federal & State Tax Depreciation
Spare Parts Inventory |  | 350 |  |  | All-In Rate (%) |  |  |  |  |  | EPC Costs |  | 15 | MACRS | 0
Owners Cost |  | 15521 |  |  |  |  |  |  |  |  | Start-Up Cost |  | 5 | SL | 0
Others Costs |  | 750 |  |  | Maximum DSR Amount (000 $) | 0 | 0 | (months/year) |  |  | Transaction Costs |  | 20 | SL | 0
Environmental Permitting |  | 0 |  |  | Debt Service Reserve [NAME] | 0.02
Insurance |  | 0 |  |  | Interest Income Rate | 0 |  |  |  |  | Book Depreciation
Capitalized Salaries |  | 0 |  |  |  |  |  |  |  |  | EPC Costs |  | 30 | SL | 0.1
Owner's Engineer |  | 0 |  |  | EQUITY |  |  |  |  |  | Start-Up Cost |  | 5 | SL | 0
Development Expenses |  | 0 |  |  | Equity Closed | 2000-04-01 00:00:00 |  |  |  |  | Transaction Costs |  | 20 | SL | 0
Legal Expense |  | 0 |  |  | Equity Partner's Share | 0
Interconnect Study |  | 0 |  |  | Enron's Share |  |  |  |  |  | TAX ASSUMPTIONS (PROJECT MAY INCLUDE SPECIFIC TAXES):
IDC |  | 0
Land |  | 1000 |  |  | PPA ASSUMPTIONS (MAKE CHANGES AS NEEDED): |  |  |  |  |  | Federal Income Tax Rate (%) |  | 0.35
Sales & Used Tax |  | 4540 |  |  |  |  |  |  |  |  | State Income Tax Rate (average %) |  | 0.07 | (Project Specific)
Contingency |  | 0 |  |  | Fixed Price PPA |  |  |  |  |  | Franchise Tax (% on Net Asset) |  | 0 | (Project Specific)
Sub Total |  |  |  |  | No. of years |  | 20 |  |  |  | [NAME] (%) |  | 0 | (Project Specific)
 |  |  |  |  | Capacity Charge ($/kW-mo.) |  | 6.416927545809557 |  |  |  | Sales & Used Tax Rate on Fuel (%) |  | 0.015 | (Project Specific)
Financing Costs: |  |  |  |  |  |  |  |  |  |  | Sales & Used Tax Rate on Hard Cost (%) |  | 0.05 | (Project Specific)
Lender's Engineer |  | 0 |  |  | Merchant Price Period
Lender's Counsel |  | 0 |  |  | No. of years
Financing Fee (All-in Fees) |  | 0 |  |  | Capacity Charge ($/kW-mo.)
Sub Total
 |  |  |  |  | Variable Payment ($/mWh)
Total Uses
 |  |  |  |  | Net Generation (MWh)
SUMMARY OUTPUT:
 |  |  |  |  | TECHNICAL ASSUMPTIONS:
All-in Capital Cost ($/kW)
 |  |  |  |  | Site Condition (MW)
 |  | [NAME]. | Min |  | Evaporative Cooler (MW) |  | 0
DSCR |  |  |  |  | Net Output (MW)
Enron Equity Returns |  |  |  |  | No. of Starts per year |  | 140
20 Yrs After-Tax Cashflow with Zero Residual Value |  |  |  |  | Available PSIG |  | 400
 |  |  | Target |  | No. of Run Hours per year |  | 2450
 |  |  | 0.12
Key Stats
EBITDA (000 $)
Net Income (000 $)
Pre-Tax Cashflow (000 $)
Cashflow to Equity (000 $)