Spreadsheet: benjamin_rogers__1294__Caledonia
Sheet: Project Assumptions

CALEDONIA, Lowndes County, MS
ASSUMPTIONS AND SUMMARY ($000)
SOURCES AND USES: |  |  |  | PROJECT DESCRIPTION: |  |  |  |  |  | VARIABLE OPERATING COSTS: |  |  |  |  |  |  | PROPERTY TAX ASSUMPTIONS:
 |  |  |  |  |  |  |  |  |  |  |  | [NAME]. | 1999 |  |  |  | Assessed Value Multiplier |  |  | 0.15
Sources of Funds |  |  |  | Type of Turbines |  |  |  | GE 7EA |  |  | OEC #'s per 1200 hrs | MW'hrs | $/Mwh |  | 2000-2003  Ave. |  | Average Depreciation for Property Taxes
Equity Capital |  |  |  | No. Turbines |  |  |  | 6 |  | Water Treatment |  |  |  |  |  |  | Mileage Rate for School Tax |  |  | 0.04897
Permanent Loan |  |  |  | ISO Capacity Rating |  |  |  | 503.6 |  | FERC Fee | 1 |  | 0.05 |  |  |  | Years of School Tax Abatement |  |  | 10
Total Sources |  |  |  | Net Project MW - Site |  | 1999 | Only | 442 |  | Variable Maintenance | 400.6 |  |  |  |  |  | School Abatement rate or amount
 | WACC |  |  | Net Project MW - Site w/ [NAME] |  | 2000-05-01 00:00:00 | On |  |  | TOTAL VEP |  |  |  |  |  |  | Mileage rate for County Tax |  |  | 0.05016
Uses of Funds |  |  |  | Degraded Capacity | 0.02 | On Merchant Hours Only |  |  |  |  |  |  |  |  |  |  | Years of County Tax Abatement |  |  | 10
Hard Costs: |  |  |  | Heat Rate (HHV) |  |  |  | 12064 |  | COST PER START: |  |  |  |  |  |  | County Abatement rate or amount
Turbines |  | 101629.108 |  | Power Capacity Factor |  |  |  |  |  |  | No of Starts (By 10's) | Cost/Start/Turbine | Cost/Start | $/Yr. (000's) | Escalation |  | No City Taxes |  |  | 0
ABB  (Transformers and [NAME]) |  | 10286.721 |  | Annual Peak Operating Hours |  |  |  | 1200 |  | Major [NAME] | 120 |  |  |  | 0.03 |  | Average Property Tax per year
[NAME] scope (Balance of Plant Costs and Construction) |  | 29262.011 |  | Project Life (Years) |  |  |  | 20 |  | Start Up Fuel | 120
Spare Parts |  | 697 |  | Start of Commercial Operation |  |  |  | 1999-08-01 00:00:00 |  |  |  |  |  |  |  |  | BOOK INCOME ASSUMPTIONS:
Land Acquisition |  | 557.693 |  | End of Commercial Operation |  |  |  | 2019-12-31 00:00:00 |  |  |  |  |  |  |  |  | P/E in Year 2000:
Gas Interconnection Costs |  | 981 |  | Installed Cost ($/kW) | W/Debt Res. |  | W/O Debt Res. |  |  | FIXED OPERATING COSTS: |  |  |  |  |  |  | Book Depreciation Period |  |  | 30
Electricity Interconnection Costs |  | 3507.82 |  |  |  |  |  |  |  | Payroll and Burden |  |  |  |  |  |  | Book Residual |  |  | 0.1
Sales and Use Tax on Equipment | 0.07 | 100 |  | VARIABLE PAYMENTS: |  |  |  |  |  | Other O&M expenses |  |  |  |  |  |  | Avg Annual Int Rate Earned on EBITDA and Maint Res |  |  | 0.01349095393898896
Mobilization Fuel |  | 136.036 |  | Variable Energy Payment |  | $/ MW h |  | 0.03 |  | Admin Fee
 |  |  |  | Start Up Payment |  | $/Start/ Turbine |  |  |  | Marketing Fee (Merchant Only) | 0.07 | $/kw-mo |  |  |  |  | CHECKS:
 |  |  |  | Energy Margin | 1 | $/MWh | Capacity Factor | 0.02 |  | O&M Fee
Soft Costs: |  |  |  |  |  |  |  |  |  | TOTAL FIXED OPERATING COSTS |  |  |  |  |  |  | Does Balance Sheet Balance
EE&CC Project Management |  | 785.954 |  | PPA ASSUMPTIONS: |  |  |  |  |  |  |  |  |  |  |  |  | Total Depreciable Base
Mobilization of O&M |  | 568.579 |  | Term of ECT PPA (years) | 4 | Yrs. | End Month | 5 |  | FIXED [NAME]: |  |  |  |  |  |  | Total Project Cost
Environmental Permitting |  | 237.353 |  | Total PPA Capacity (MW) |  |  |  |  |  | Insurance Costs: |  | [NAME]. | 1999 |  | 2000-2003  Ave. |  | Undepreciated Cost
Insurance During Construction |  | 224.923 |  | Number of Hours Called under PPA |  |  |  |  |  | Liability Insurance |  |  | 10 |  |  |  | [NAME]
Capitalized Salaries |  | 53.204 |  | Beginning Capacity Rate Enron |  |  |  | 4 |  | Bus. Inter. Insr. |  |  | 53.76
[NAME] |  | 94.021 |  | Capacity Rate Escalation |  |  |  | 0 |  | Ops. and [NAME]. Insr. |  |  | 192
Development Expenses |  | 741.639 |  | Model uses Kaiser Estimates (average): |  | Escalation | 0.03 |  |  | Insurance Cost
Legal Expense |  | 883 |  |  |  |  |  |  |  | Utilities: Start Up Power
 |  |  |  | DEBT FINANCING ASSUMPTIONS: |  |  |  |  |  | Utilities: Facilities Load
 |  |  |  | Use Normal Debt Structure or Alternate? |  |  |  | Alternate |  | Interconnection Fees |  |  | 100
 |  |  |  |  |  |  |  |  |  | Gas Pipeline Meteing Station |  |  | 30
Financing Costs: |  |  |  |  | Tranche A | Tranche B | Tranche C | Total |  | Miscellaneous |  |  | 75
Lender's Engineer |  | 0 |  | [NAME] |  |  |  |  |  | Other |  |  | 0 |  | 0
Lender's Counsel |  | 0 |  | [NAME] | 18984 | 34928 | 63775 |  |  | Total FIXED G&A
Financing Fee |  | 1243 |  | Term | 4
Debt Reserves |  |  |  | Interest Rate |  |  |  |  |  | O&M Escalation |  |  | 0.03
 |  |  |  | DSCR | 1.5 | 2.5 | 2.5 |  |  | Operating Cost Escalation |  |  | 0.03
 |  |  |  | Choose for Tranches B & C |  | Interest Only
Capitalized Interest: |  |  |  |  |  |  |  |  |  | OPERATING COST SUMMARY:
Carrying Interest on Project Cost | 0.065 |  |  | Avg. Life (years) |  |  |  |  |  |  | 1999 $000's |  | 1999 |  | 2000-2003  Ave.
 |  |  |  |  |  |  |  |  |  | Variable Operating Costs |  | $/YR |  | $/MWh
Contingency | 0 |  |  | DEBT RESERVE ASSUMPTIONS: |  |  |  |  |  | Major [NAME] |  | $/YR |  | $/Start
 |  |  |  | Fund from Operations or Financing? |  |  |  | Operations |  | Start Up Fuel |  | $/YR |  | $/Start
Total Uses |  |  |  | Amount of Reserve Needed (6 mos DS)
 |  |  |  | Interest Rate Earned on Outstanding Debt Reserve Balance |  |  |  | 0
MODEL TOGGLES: |  |  |  |  |  |  |  |  |  | Fixed Operating Costs |  | $/YR |  | $/KWm
Fixed Price or Index Gas Curve? |  | Fixed |  | RETURNS TO EQUITY HOLDERS: |  |  |  |  |  | Fixed G&A |  | $/YR |  | $/KWm
Fixed Gas Price |  | 2.5 |  | Preferred Equity |  | Term (yrs) |  |  |  | Property Taxes ('01 Disc.) |  | $/YR |  | $/KWm
Use Fed NOL Carryforward? |  | Yes |  |  |  | Coupon |  |  |  | Operation Taxes ('01 Disc.) |  | $/YR |  | $/KWm
Use State NOL Carryforward? |  | Yes |  |  |  | Principal
[NAME] (years) |  | 15 |  |  |  |  |  |  |  | Total  Operating Cost |  | $/YR
Assumed run hours or dispatched? |  | Assumed |  | RETURN ON EQUITY:
Allow Merchant Energy Revenue? |  | Yes |  |  |  | Required Return on Equity |  | 0.12 |  | Start Up Fuel (MMBTU/Turbine)
Allow Residual Capacity Value? |  | No |  |  |  | Pre-Tax |  | After-Tax |  | Fuel use per start (MMBtu/Turbine)
Residual Capacity Value ($/kWmo) |  | 0 |  | Years |  | XIRR |  | XIRR
KAISER capacity curve |  |  |  | 10 |  |  |  |  |  | STATE & FEDERAL TAX ASSUMPTIONS:
Base, Low, Mid or Percentage (1, 2, 3 or 4) |  | 1 |  | 15 |  |  |  |  |  | Federal Income Tax Rate |  |  | 0.35 |  | 2000-2003  Ave.
Percentage for Option 4 |  | 0.5 |  | 20 |  |  |  |  |  | State Income Tax Rate |  |  | 0.05
Energy Revenue Curve |  | Marginal cost curve |  |  |  |  |  |  |  | Effective Income Tax Rate
Pass through Variable O&M in Marginal Cost curve? |  | No |  |  |  | Pre-Tax |  | After-Tax |  | Gross receipts tax on Sale to ultimate consumer |  |  | 0
 |  |  |  | Years |  | XNPV |  | XNPV |  | Sales and Use tax on Sales to EPMI |  |  | 0
 |  |  |  | 10 |  |  |  |  |  | State Franchise Tax Rate on Corp. Capital |  |  | 0
 |  |  |  | 15 |  |  |  |  |  | State Sales and Use Tax Rate on Fuel |  |  | 0.015
 |  |  |  | 20
Outstanding issues:
Cash out to Equity>NI ok?
Working capital
Can we reduce  Debt reserve as Debt amt falls.
0.25% of capital tax per year is currently calced on BV of assets, It should be on stock, paid in capital, surplus, RE- less some reserves
21 st year add % Revenues |  |  | *
Interest income: EBITDA and maintenance reserves? Not avg of cash? |  |  | **
Variable OM should include major maint or not?
Add Balance sheet
Need back up for some numbers
Moveable date format
Book Income not structurally correct for the period between debt and project life
 |  |  |  | Auction Value
 |  |  |  | Total Value
 |  |  |  | Less Cost
 |  |  |  | Net Value | 0
 |  |  |  | IPO Equity Valuation* |  | REIT Equity  Value** |  |  |  | Checked and verified
 |  |  |  | 12 | 16 | 8 | 10 |  |  | Check with Tax
 |  |  |  |  |  |  |  |  |  | Modelling or Assumption # change needed
 |  |  |  | Multiples | IPO = NPV of 2001 Earnings*Multiple-Equity-Capacity Delta |  |  |  |  | Need clarication of principle/verfication
 |  |  |  | IPO Value | Reit =NPV of 2001  EBT*Multiple-Equity-Capacity Delta