Spreadsheet: benjamin_rogers__1067__NewCo-1-19-00
Sheet: Vansycle

Vansycle |  | 25 | MW
INCOME STATEMENT
('000 $) |  |  | 1999 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total | Net Total
Revenue
PPA Period:
Demand Payment |  |  | 1
Energy Payment |  |  | 1
Block Payment |  |  | 1
Market Period:
Demand Payment |  |  | 1
Variable Revenue |  |  | 1
Energy Margin |  |  | 1
Interest Income |  |  | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total Revenue
Expense
Fuel  (Includes Fixed Transportation) |  |  | 0
Fixed O&M |  |  | 0
Variable O&M |  |  | 0
Major Maintenance & Ongoing Capex (Cash) |  |  | 0
Insurance |  |  | 0
SG&A |  |  | 0
Utility Start Up Power (included in O&M) |  |  | 0
Property, Other Taxes |  |  | 0
Debt Service L/C Fee |  |  | 0
Marketing Fee |  |  | 0
Administrative Fee |  |  | 0
O&M Fees |  |  | 0
Total Expense
EBITDA
Depreciation & Amortization |  |  |  | 0
EBIT
Interest Expense |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
EBT
Book State Tax Benefit / (Expense) |  | 0.05
Shareholder Fed. Tax Benefit / (Expense) |  | 0.35
Net Income
PTC
 |  |  | implied CF
CASH FLOW
FPLE Interest |  | 1
('000 $) |  |  | 1999
EBITDA
Capital Expenditures |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Debt Service |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  |  |  | 0
Pre Tax Cash Flow
Cash Taxes Benefit (Expense)
After Tax Cash Flow
Net Income to FPLE
Distributable Cash to FPLE
Valuation
Pre Tax Cash Flow
Tax Benefit / (Expense)
PTC
Residual Value |  |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
After Tax Cash Flow |  |  |  | -44008.24688842109
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Residual Value
NPV |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2020 EBITDA
Equity Discount Rate |  | 0.09 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Adjustment Factor |  |  |  | 1
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Adjusted EBITDA
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | EBITDA Multiple |  |  |  | 8
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Residual Value
Depreciable Basis
Debt (12/31/00) |  |  | 0
Equity
Percent Depreciable |  |  | 0.9
Depreciable Basis
GAAP Depreciation
Life | 30 | SL
Additional Depreciation @ FPLE
Tax Depreciation
Basis
Depreciation Rate: 5 Year 200% MACRS HY |  |  |  |  | 0.2 | 0.32 | 0.192 | 0.1152 | 0.1152 | 0.0576 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Tax Depreciation
Additional Depreciation @ FPLE
Taxable Income
Tax Depreciation
Interest Expense
Taxable Income
State Income Tax
Federal Income Tax
FPLE Net Income
Interest Income - Loan Receivable
Fee Income
Total Other Income
State Taxes
Federal Taxes
Net Income from Interest and Fee to FPLE
Total FPLE Net Income
FPLE Other Cash Flows
Principal on Note Receivable |  |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
NPV
Equity Discount Rate
Valuation of FPLE's Project Interest
FPLE's Share of Project
Note Receivable |  |  | 0
PV of Fee Income
Value of FPLE's Interest
Notes:
No lease payments
O&M is not fixed. 50%-75% is labour
Ongoing Capex (parts replacement) is not included or is lumped into fixed O%M
Both O&M and [NAME] should rise as a % of fixed price revenue. Capex follows "bathtub effect".
15 - 20k per MW (including both O&M and [NAME]) is ok rule of thumb for new turbines, escalate up to 40s or 50s
Project started Nov 1998 - what type of turbines?
What is PPA term and rate? Why does revenue bounce around?
Implied Capacity factor |  |  | ok
Tax benefit in Net income based on book depreciation, just plain wrong
Tax benefit in Net income ignores deferred portion of tax
probably they lack understanding of Apportionment in applying state tax
NewCo state tax shield may be non-existant, Apportionment rules would need tax review, conclusion would differ with Lease Agreement
NewCo would indeed get new round of MACRS but realize that FPL would not get this under Lease Agreement
9% wacc probably ok, implies 15.5% equity at 60% balance sheet leverage and corporate bond market debt, but would be low if the PPA has price risk