Spreadsheet: michelle_lokay__26645__redrockcomparison
Sheet: Sheet1

Tranwwestern Pipeline Company
Red Rock Analysis Comparison
(MM's)
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 wo/USGT and Resubscriptions | 0.0704 | 13.8 | 14.5 | 11.8 | 11.6 | 11.6 | 8 | 9 | 8 | 8 | 8 | 7.9 | 7.9 | 7.4 | 7.2 | 7.1
Original Contracts and USGT wo/Resubscriptions | 0.1318 | 16.9 | 20.8 | 18.1 | 18 | 17.9 | 14.4 | 14.3 | 14.3 | 14.2 | 14.3 | 14.2 | 14.2 | 13.6 | 13.5 | 13.4
All Contracts w/Resubscription @ $.05 | 0.1355 | 17 | 21 | 18.6 | 18.5 | 18.5 | 14.8 | 14.7 | 14.7 | 14.7 | 14.7 | 14.6 | 14.6 | 14.1 | 14 | 13.9
All Contracts w/Resubscription @ $.10 | 0.1374 | 16.9 | 21.1 | 18.8 | 18.6 | 18.6 | 15.2 | 15.1 | 15.1 | 15.1 | 15.1 | 15 | 15 | 14.6 | 14.5 | 14.4
Original Contracts and USGT rate capped $.385 wo/Resubscriptions | 0.12 | 13.1 | 18.8 | 17.8 | 17.8 | 17.8 | 14.2 | 14.2 | 14.2 | 14.1 | 14.2 | 14.1 | 14.1 | 13.6 | 13.4 | 13.4
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 wo/USGT and Resubscriptions |  | 16 | 13.6 | 11.6 | 11.2 | 10.9 | 8.5 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8 | 7.8 | 7.8
Original Contracts and USGT wo/Resubscriptions |  | 19.9 | 17.5 | 15.4 | 15.1 | 14.8 | 12.4 | 12.2 | 12.2 | 12.2 | 12.2 | 12.2 | 12.1 | 11.8 | 11.7 | 11.7
All Contracts w/Resubscription @ $.05 |  | 19.9 | 17.6 | 15.8 | 15.4 | 15.1 | 12.6 | 12.5 | 12.4 | 12.4 | 12.4 | 12.4 | 12.4 | 12.1 | 12 | 12
All Contracts w/Resubscription @ $.10 |  | 19.9 | 17.7 | 15.9 | 15.5 | 15.2 | 12.9 | 12.7 | 12.7 | 12.7 | 12.7 | 12.7 | 12.6 | 12.4 | 12.3 | 12.3
Original Contracts and USGT rate capped $.385 wo/Resubscriptions |  | 15.2 | 16.3 | 15.3 | 15 | 14.7 | 12.3 | 12.1 | 12.1 | 12.1 | 12.1 | 12.1 | 12.1 | 11.8 | 11.7 | 11.6
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 wo/USGT and Resubscriptions | 0.1086 | 11.3 | 10.5 | 8.1 | 8.2 | 8.5 | 5.2 | 5.4 | 5.7 | 6 | 6.3 | 6.5 | 6.7 | 6.4 | 6.6 | 6.8
Original Contracts and USGT wo/Resubscriptions | 0.2519 | 14.4 | 16.7 | 14.4 | 14.9 | 14.8 | 11.5 | 11.7 | 12 | 12.3 | 12.6 | 12.8 | 13 | 12.8 | 12.9 | 13.1
All Contracts w/Resubscription @ $.05 | 0.2598 | 14.5 | 17 | 15 | 15.1 | 15.3 | 11.9 | 12.1 | 12.4 | 12.7 | 13 | 13.2 | 13.5 | 13.3 | 13.4 | 13.6
All Contracts w/Resubscription @ $.10 | 0.2631 | 14.5 | 17.1 | 15.1 | 15.2 | 15.5 | 12.3 | 12.6 | 12.8 | 13.1 | 13.4 | 13.6 | 13.9 | 13.7 | 13.9 | 14.1
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 wo/USGT and Resubscriptions |  | 9.6 | 7.4 | 5.6 | 5.4 | 5.2 | 3 | 3 | 3.2 | 3.3 | 3.5 | 3.7 | 3.8 | 3.7 | 3.7 | 3.9
Original Contracts and USGT wo/Resubscriptions |  | 13.5 | 11.3 | 9.5 | 9.2 | 9.1 | 6.8 | 6.9 | 7 | 7.2 | 7.4 | 7.5 | 7.7 | 7.5 | 7.6 | 7.7
All Contracts w/Resubscription @ $.05 |  | 13.5 | 11.4 | 9.8 | 9.6 | 9.4 | 7.1 | 7.1 | 7.3 | 7.4 | 7.6 | 7.8 | 7.9 | 7.8 | 7.9 | 8
All Contracts w/Resubscription @ $.10 |  | 14.5 | 11.5 | 9.9 | 9.6 | 9.5 | 7.4 | 7.4 | 7.5 | 7.8 | 7.9 | 8 | 8.2 | 8.1 | 8.2 | 8.3
Original Contracts wo BP, USGT and Resubscription
Unleveraged - Income before Income Taxes (Budget Year) | 0.0428 | 9.37 | 8.18 | 6.9 | 6.88 | 6.85 | 8.04 | 7.99 | 7.97 | 7.95 | 7.96 | 7.9 | 7.88 | 7.34 | 7.17 | 7.12
Unleveraged - NPV @ 7.5% (Annual from In Service) |  | 10.69 | 9.79 | 8.66 | 8.33 | 8.03 | 8.5 | 8.35 | 8.34 | 8.33 | 8.33 | 8.3 | 8.29 | 7.96 | 7.85 | 7.82
Leveraged - Income before Income Taxes (Budget Year) | 0.0377 | 6.67 | 4.18 | 3.18 | 3.45 | 3.7 | 5.18 | 5.42 | 5.68 | 5.94 | 6.24 | 6.47 | 6.73 | 6.48 | 6.59 | 6.82
Leveraged - NPV @ 7.5% (Annual from In Service) |  | 4.29 | 3.57 | 2.61 | 2.46 | 2.33 | 2.97 | 3 | 3.16 | 3.32 | 3.5 | 3.64 | 3.8 | 3.65 | 3.71 | 3.86
Calculate Unleverage NPV Required to Cover Investment Shortfall
Volume | 15
Rate | 0.365
Years | 15
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 99,100 and required horsepower is 80,150
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