Spreadsheet: benjamin_rogers__1171__Gleason - 501F & 501FD
Sheet: Project Assumptions

GLEASON, TN
ASSUMPTIONS AND SUMMARY
SOURCES AND USES: |  |  |  | PROJECT DESCRIPTION: |  |  |  |  |  | VARIABLE OPERATING COSTS: |  |  |  |  |  |  | PROPERTY TAX ASSUMPTIONS:
 |  |  |  |  |  |  |  |  |  |  |  | Base Year | 1999 |  |  |  | Assessed Value Multiplier |  |  | 0.5
Sources of Funds |  |  |  | Type of Turbines |  |  | WH501F | WH501FD |  |  | OEC #'s per 1200 hrs | MW'hrs | $/MWh |  | 2000-2003 Ave |  | Mileage Rate for School Tax |  |  | 0.0015
Equity Capital |  |  |  | No. Turbines |  |  | 1 | 2 |  | Water Treatment | 433.073 |  |  |  |  |  | Years of School Tax Abatement |  |  | N/A
Permanent Loan |  |  |  | ISO Capacity Rating (MW) |  |  |  | 535.3 |  | FERC Fee |  |  | 0.05 |  |  |  | Mileage rate for State Tax |  |  | 0.00298
 |  |  |  | Net Project MW -  Site |  |  |  | 510 |  | Variable Maintenance | 281 |  |  |  |  |  | Mileage rate for County Tax |  |  | 0.00244
Total Sources |  |  |  | Degraded Capacity | 0.02 | On Merchant Hours Only |  |  |  | TOTAL VEP |  |  |  |  |  |  | Years of County Tax Abatement |  |  | N/A
 |  |  |  | Heat Rate (HHV) |  |  |  | 10904 |  |  |  |  |  |  |  |  | Milleage Rate for City |  |  | 0.00386
 |  |  |  | Power Capacity Factor |  |  |  |  |  | COST PER START: |  |  |  |  |  |  | Avg. Property Tax
Uses of Funds |  |  |  | Annual Peak Operating Hours |  | 1200 | TVA hours | 0 |  |  | No of Starts (By 10's) | Cost/Start/Turbine | Cost/Start | $[NAME]. (000's) | Escalation
Hard Costs: |  |  |  | Project Life (Years) |  |  |  | 20 |  | Major [NAME] | 120 |  |  |  | 0.03 |  | BOOK INCOME ASSUMPTIONS:
Turbines |  |  |  | Start of Commercial Operation |  | 2000-06-01 00:00:00 | Fraction of Yr1 |  |  | Start Up Fuel | 120 |  |  |  |  |  | P/E in Year 2000:
ABB (Transformer and Curcuit Breakers |  | 5893.811 |  | End of Commercial Operation |  | 2020-05-30 00:00:00 |  |  |  |  |  |  |  |  |  |  | Book Depreciation Period |  |  | 30
Overhead & Fees - EECC |  | 929.8 |  | Installed Cost ($/kW) | W/Debt Res. |  | W/O Debt Res. |  |  |  |  |  |  |  |  |  | Book Residual |  |  | 0.1
Overhead & Fees - NEPCO |  | 2840.7 |  |  |  |  |  |  |  | FIXED OPERATING COSTS: |  |  |  |  |  |  | Avg Annual Int Rate Earned on EBITDA and Maint Res. |  |  | 0.01349095393898896
Base Fee |  | 3066.7 |  | VARIABLE PAYMENTS: |  |  |  |  |  | Payroll and Burden |  |  | 727
NEPCO Scope (Balance of Plant Costs and Construction) |  | 32135.1 |  | Variable Energy Payment |  | $/ MW h |  | 0.03 |  | Other O&M expenses |  |  | 270 |  |  |  | CHECKS:
[NAME] |  | 10311.044 |  | Start Up Payment |  | $/Start/ Turbine |  |  |  | Admin Fee
Union Adders/Others |  | 2125.8 |  | Energy Margin | 1 | $/MWh | Capacity Factor | 0.02 |  | Marketing Fee (Merchant Only) | 0.07 | $/kw-mo |  |  |  |  | Is the Balance Sheet Balanced?
Spare Parts |  | 1247.007 |  |  |  |  |  |  |  | O&M Fee |  |  | 250 |  |  |  | Total Depreciable Base
Land Acquisition |  | 369.041 |  | PPA ASSUMPTIONS: |  |  |  |  |  | TOTAL FIXED O&M |  |  |  |  |  |  | Total Project Cost
Water Interconnect |  | 0 |  | Term of ECT PPA (years) |  |  |  | 3 |  |  |  |  |  |  |  |  | Undepreciated Cost
Gas Interconnection Costs |  | 1100 |  | Total PPA Capacity (MW) |  |  |  |  |  | FIXED [NAME]:
Power Inteconnect |  | 3700 |  | Number of Hours Called under PPA |  |  |  |  |  | Insurance Costs: |  | Base Year | 1999 |  | 2000-2003 Ave |  | Land
Sales and Use Tax on Equipment | 0.06 | 675 |  | Capacity Rate |  |  |  | 4 |  | Liability Insurance |  |  | 10 |  |  |  | Expensed Project Costs
Mobilization Fuel |  | 500 |  | Capacity Rate Escalation |  |  |  | 0 |  | Bus Int Ins. |  |  | 50
 |  |  |  | Capacity Rate Escalation for Kaiser estimates |  |  |  | 0.03 |  | Property Insurance |  |  | 207
Soft Costs: |  |  |  |  |  |  |  |  |  | Total Insurance Cost
EE&CC Project Management |  | 0 |  | DEBT FINANCING ASSUMPTIONS: |  |  |  |  |  | Utilities:  Start Up Power |  |  | 70
Mobilization of O&M |  | 908.786 |  | Use Normal Debt Structure or Alternate? |  |  |  | Alternate |  | Utilities  Facility Load |  |  | 138
Environmental Permitting |  | 540 |  |  |  |  |  |  |  | Interconnection Fees |  |  | 82
Insurance During Construction |  | 200 |  |  | Tranche A | Tranche B | Tranche C | Total |  | Gas [NAME] |  |  | 30
Capitalized Salaries |  | 186.82 |  | [NAME] |  |  |  |  |  | Miscellaneous |  |  | 75
[NAME] | 0.0025 | 0 |  | Principal Amount- Alternate |  |  |  |  |  | TOTAL FIXED G&A
Development Expenses |  | 617.312 |  | Term
Legal Expense |  | 496.457 |  | Interest Rate |  |  |  |  |  | O&M Escalation |  |  | 0.03
Total Expensed Costs |  | 0 |  | DSCR | 1.3 | 2.5 | 2.5 |  |  | Operating Cost Escalation |  |  | 0.03
Gleason/Weakly Expenses |  | 22.627 |  | Choose for Tranches B & C |  | Interest Only
Working Capital |  | 0 |  | Avg. Life (years) |  |  |  |  |  | OPERATING COST SUMMARY:
 |  |  |  |  |  |  |  |  |  |  | 1999 $000's |  | 1999 |  | 2000-2003 Ave
 |  |  |  | DEBT RESERVE ASSUMPTIONS: |  |  |  |  |  | Variable Operating Costs |  | $/YR |  | $/MWh
Financing Costs: |  |  |  | Fund from Operations or Financing? |  |  |  | Operations
Lender's Engineer |  | 0 |  | Amount of Reserve Needed (6 mos DS) |  |  |  |  |  | Major [NAME] |  | $/YR |  | $/Start
Lender's Counsel |  | 0 |  | Interest Rate Earned on Outstanding Debt Reserve Balance |  |  |  | 0 |  | Start Up Fuel |  | $/YR |  | $/Start
Financing Fee |  | 0
Debt Reserves |  |  |  | RETURNS TO EQUITY HOLDERS:
 |  |  |  | Preferred Equity |  | Term (yrs) |  |  |  | Fixed Operating Costs |  | $/YR |  | $/KWm
 |  |  |  |  |  | Coupon |  |  |  | Fixed G&A |  | $/YR |  | $/KWm
Capitalized Interest: |  |  |  |  |  | Principal |  |  |  | Property Tax ('02 Disc.) |  | $/YR |  | $/KWm
Carrying Interest on Project Cost | 0.064 |  |  |  |  |  |  |  |  | Operating Tax ('02 Disc.) |  | $/YR |  | $/KWm
 |  |  |  | RETURN ON EQUTIY:
 |  |  |  |  |  | Required Return on Equity |  | 0.12 |  | Total  Operating Cost |  | $/YR
Contingency on Hard & Soft Costs |  | 0 |  |  |  | Pre-Tax |  | After-Tax |  |  |  |  | *
Contingency on [NAME] |  |  |  | Years |  | XIRR |  | XIRR |  | Start Up Fuel (MMBTU/Turbine)
Total Contingency |  |  |  | 10 |  |  |  |  |  | Startup Fuel Mmbtu/Turbine
 |  |  |  | 15
Total Uses |  |  |  | 20 |  |  |  |  |  | STATE & FEDERAL TAX ASSUMPTIONS:
 |  |  |  |  |  |  |  |  |  | Federal Income Tax Rate |  |  | 0.35 |  | 2000-2003 Ave
MODEL TOGGLES: |  |  |  |  |  | Pre-Tax |  | After-Tax |  | State Income Tax Rate |  |  | 0.0825
Fixed Price or Index Gas Curve? |  | Fixed |  | Years |  | XNPV |  | XNPV |  | Effective Income Tax Rate
Fixed Gas Price |  | 2.5 |  | 10
Use Fed NOL Carryforward? |  | Yes |  | 15 |  |  |  |  |  | State Utility Gross Receipts Tax Rate (Gross Rev.) |  |  | 0
Use State NOL Carryforward? |  | Yes |  | 20 |  |  |  |  |  | State Franchise Tax Rate (Capital or BV of assets) |  |  | 0
[NAME] (years) |  | 15 |  |  |  |  |  |  |  | State Sales and Use Tax Rate on Fuel |  |  | 0.06
Assumed run hours or dispatched? |  | Assumed |  |  |  |  |  |  |  | KREDA Intercompany Loan |  | 0 | 0
Allow Merchant Energy Revenue? |  | No
Allow Residual Capacity Value? |  | No
Residual Capacity Value ($/kWmo) |  | 0
Kaiser Capacity Curve
Base, Low, Mid or Percentage (1, 2, 3 or 4) |  | 1
Percentage for Option 4 |  | 0.5
Energy Curve Selector |  | Marginal Cost Curve
Pass through Variable O&M? |  | No
 |  |  |  | Auction Value
 |  |  | Multiples
 |  |  | IPO Value | Total Value
 | TO DO |  |  | Less Cost
 | IDC amortized |  | * | Net Value
 | check util |  | **
 |  |  |  | IPO Equity Valuation* |  | REIT Equity  Value**
 |  |  |  | 12 | 16 | 8 | 10
 |  |  |  | IPO = NPV of 2001 Earnings*Multiple-Equity-Capacity Delta
 |  |  |  | Reit =NPV of 2001  EBT*Multiple-Equity-Capacity Delta
 |  |  |  |  |  |  |  |  |  | Checked and verified
 |  |  |  |  |  |  |  |  |  | Check with Tax
 |  |  |  |  |  |  |  |  |  | Modelling or Assumption # change needed
 |  |  |  |  |  |  |  |  |  | Need clarication of principle
 |  |  |  |  |  |  |  |  |  | Changed
 |  |  | *