Spreadsheet: benjamin_rogers__1172__Wheatland_New - W 501 D5A
Sheet: Project Assumtions

WHEATLAND POWER IN, L.L.C.
ASSUMPTIONS AND SUMMARY
SOURCES AND USES: |  |  |  | PROJECT DESCRIPTION: |  |  |  |  |  | VARIABLE OPERATING COSTS: |  |  |  |  |  |  | PROPERTY TAX ASSUMPTIONS:
 |  |  |  |  |  |  |  |  |  |  |  | Base Year = | 1999 |  |  |  | Assessed Value Multiplier Equip |  |  | 0.33
Sources of Funds |  |  |  | Type of Turbines |  |  |  | W 501 D5A |  |  | OEC #'s per 1200 hrs | MW'hrs | $/MWh |  | 2000-2003 Ave |  | Mileage Rate |  |  | 0.074828
Equity Capital |  |  |  | No. Turbines |  |  |  | 4 |  | Water Treatment | 321 |  |  |  |  |  | State Property Tax Relpacement Credit
Permanent Loan |  |  |  | ISO Capacity Rating (MW) |  |  |  | 514.6 |  | FERC Fees |  |  | 0.05 |  |  |  | Years of School Tax Abatement |  |  | N/A
 |  |  |  | Net Project MW -  Site |  |  |  | 470 |  | Variable Maintenance | 307 |  |  |  |  |  | Mileage rate for County Tax |  |  | 0
Total Sources |  |  |  | Degraded Capacity | 0.02 | On Merchant Hours Only |  |  |  | TOTAL VEP |  |  |  |  |  |  | Years of County Tax Abatement |  |  | 10
 |  |  |  | Heat Rate (HHV) |  |  |  | 11735 |  |  |  |  |  |  |  |  | No City Taxes |  |  | 0
Uses of Funds |  |  |  | Power Capacity Factor |  |  |  |  |  | COST PER START: |  |  |  |  |  |  | Percentage of Draw at 12/99 |  |  | 0.63
Hard Costs: |  |  |  | Annual Peak Operating Hours |  | 1200 | TVA hours | 0 |  |  | No of Starts (By 10's) | Cost/Start/Turbine | Cost/Start | $/Yr. (000's) | Escalation |  | Avg. Property Tax/ yr.
Turbines |  | 86219.301 |  | Project Life (Years) |  |  |  | 20 |  | Major [NAME] | 120 |  |  |  | 0.03
ABB (Transformer and Curcuit Breakers |  | 4440.534 |  | Start of Commercial Operation |  | 2000-06-01 00:00:00 | Fraction of Yr1 |  |  | Start Up Fuel | 120 |  |  |  |  |  | BOOK INCOME ASSUMPTIONS:
NEPCO Scope (Balance of Plant Costs and Construction) |  | 24230.498 |  | End of Commercial Operation |  | 2020-05-30 00:00:00 |  |  |  |  |  |  |  |  |  |  | P/E in Year 2000:
[NAME] |  | 8720.498 |  | Installed Cost ($/kW) | W/Debt Res. |  | W/O Debt Res. |  |  |  |  |  |  |  |  |  | Book Depreciation Period |  |  | 30
Union Adders/Others |  | 6886 |  |  |  |  |  |  |  | FIXED OPERATING COSTS: |  |  |  |  |  |  | Book Residual |  |  | 0.1
Overheads and Fees - EECC |  | 929.8 |  | VARIABLE PAYMENTS: |  |  |  |  |  |  |  |  |  |  | 2000-2003 Ave |  | Avg Annual Int Rate Earned on EBITDA and Maint Res. |  |  | 0.01349095393898896
Overheads & Fees - NEPCO |  | 2386.7 |  | Variable Energy Payment |  | $/ MW h |  | 0.03 |  | Payroll and Burden |  |  | 893
Base Fee |  | 3066.7 |  | Start Up Payment |  | $/Start/ Turbine |  |  |  | Other O&M expenses |  |  | 272 |  |  |  | CHECKS:
Water Interconnect |  | 1500 |  | Energy Margin | 1 | $/MWh | Capacity Factor | 0.02 |  | Admin Fee
Spare Parts |  | 1172.731 |  |  |  |  |  |  |  | Marketing Fee (Merchant Only) | 0.07 | $/kw-mo |  |  |  |  | Is the Balance Sheet Balanced?
Land Acquisition |  | 1112.944 |  | PPA ASSUMPTIONS: |  |  |  |  |  | O&M Fee |  |  | 250 |  |  |  | Total Depreciable Base
Power Interconnect |  | 5000 |  | Term of ECT PPA (years) |  |  |  | 3 |  | TOTAL FIXED O&M |  |  |  |  |  |  | Total Project Cost
Gas Interconnection Costs |  | 1500 |  | Total PPA Capacity (MW) |  |  |  |  |  |  |  |  |  |  |  |  | Undepreciated Cost
Sales and Use Tax on Equipment | 0.05 | 50 |  | Number of Hours Called under PPA |  |  |  |  |  | FIXED [NAME]: |  |  |  |  |  |  | Land Expense
Mobilization Fuel |  | 1000 |  | Capacity Rate |  |  |  | 4 |  |  |  | Base Year = | 1999
 |  |  |  | Capacity Rate Escalation |  |  |  | 0 |  | Insurance Costs: |  |  |  |  | 2000-2003 Ave
Soft Costs: |  |  |  | Capacity Rate Escalation for Kaiser estimates |  |  |  | 0.03 |  | Liability Insurance |  |  | 10
EE&CC Project Management |  | 0 |  |  |  |  |  |  |  | Bus Int Ins. |  |  | 50
Mobilization of O&M |  | 908.786 |  | DEBT FINANCING ASSUMPTIONS: |  |  |  |  |  | Ops and Mach Ins |  |  | 205
Environmental Permitting |  | 313.82 |  | Use Normal Debt Structure or Alternate? |  |  |  | Alternate |  | Total Insurance Cost
Insurance During Construction |  | 200 |  |  |  |  |  |  |  | Utilities : Start Up Power |  |  | 95
Capitalized Salaries |  | 185.198 |  |  | Tranche A | Tranche B | Tranche C | Total |  | Utilities : Facility Load |  |  | 140
[NAME] |  | 0 |  | [NAME] |  |  |  |  |  | Interconnection Fees |  |  | 82
Development Expenses |  | 600.531 |  | [NAME] |  |  |  |  |  | Gas [NAME] |  |  | 30
Legal Expense |  | 400 |  | Term |  |  |  |  |  | Miscellaneous |  |  | 75
Total Expensed Cost |  | 232.288 |  | Interest Rate |  |  |  |  |  | TOTAL FIXED G&A
Petersburg Expenses |  | 15.1 |  | DSCR | 1.3 | 2.5 | 2.5
Working Capital |  | 0 |  | Choose for Tranches B & C |  | Interest Only |  |  |  | O&M Escalation |  |  | 0.03
 |  |  |  | Avg. Life (years) |  |  |  |  |  | Operating Cost Escalation |  |  | 0.03
Financing Costs: |  |  |  | DEBT RESERVE ASSUMPTIONS: |  |  |  |  |  | OPERATING COST SUMMARY:
Lender's Engineer |  | 0 |  | Fund from Operations or Financing? |  |  |  | Operations |  |  | 1999 $000's |  | 1999 |  | 4 Yr. Ave.
Lender's Counsel |  | 0 |  | Amount of Reserve Needed (6 mos DS) |  |  |  |  |  | Variable Operating Costs |  | $/YR |  | $/MWh
Financing Fee |  | 0 |  | Interest Rate Earned on Outstanding Debt Reserve Balance |  |  |  | 0
Debt Reserves |  |  |  |  |  |  |  |  |  | Major [NAME] |  | $/YR |  | $/Start
 |  |  |  | RETURNS TO EQUITY HOLDERS: |  |  |  |  |  | Start Up Fuel |  | $/YR |  | $/Start
 |  |  |  | Preferred Equity |  | Term (yrs)
Capitalized Interest: |  |  |  |  |  | Coupon
Carrying Interest on Project Costs | 0.064 |  |  |  |  | Principal |  |  |  | Fixed Operating Costs |  | $/YR |  | $/KWm
 |  |  |  |  |  |  |  |  |  | Fixed G&A (N/I Property Tax) |  | $/YR |  | $/KWm
 |  |  |  | RETURN ON EQUITY: |  |  |  |  |  | Property Taxes ('02 Disc.) |  | $/YR |  | $/KWm
Contingency on Hard & Soft Costs | 0.03 | 0 |  |  |  | Required Return on Equity |  | 0.12 |  | Operation Taxes |  | $/YR |  | $/KWm | 0
Contingency on [NAME] | 0.05 | 0 |  |  |  | Pre-Tax |  | After-Tax
Total Contingency |  |  |  | Years |  | XIRR |  | XIRR |  | Total Operating Costs |  | $/YR
 |  |  |  | 10
Total Uses |  |  |  | 15 |  |  |  |  |  | Start Up Fuel (MMBTU/Turbine)
 |  |  |  | 20 |  |  |  |  |  | Startup Fuel Mmbtu/Turbine
MODEL TOGGLES: |  |  |  |  |  | Pre-Tax |  | After-Tax |  | STATE & FEDERAL TAX ASSUMPTIONS:
Fixed Price or Index Gas Curve? |  | Fixed |  | Years |  | XNPV |  | XNPV |  | Federal Income Tax Rate |  |  | 0.35 |  | 4 Yr. Ave.
Fixed Gas Price |  | 2.5 |  | 10 |  |  |  |  |  | State Income Tax Rate |  |  | 0.045
Use Fed NOL Carryforward? |  | Yes |  | 15 |  |  |  |  |  | Effective Income Tax Rate
Use State  NOL Carryforward? |  | Yes |  | 20
[NAME] (years) |  | 15 |  |  |  |  |  |  |  | Adjusted Gross Income Tax (EBT) |  |  | 0.034
Assumed run hours or dispatched? |  | Assumed |  |  |  |  |  |  |  | State Gross Income Tax Rate (Gross Rev.) |  |  | 0.012
Allow Merchant Energy Revenue? |  | No |  |  |  |  |  |  |  | State Franchise Tax Rate (Capital or BV of assets) |  |  | 0
Allow Residual Capacity Value? |  | No |  |  |  |  |  |  |  | State Sales and Use Tax Rate on Fuel |  |  | 0
Residual Capacity Value ($/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
 |  |  | *