Financial Analysis and Cash Flow

Transcription

1 Financial Analysis and Cash Flow Version 2.0 Integrated Financial Analysis SOAPP CT.25 uses the capital cost and operating cost estimates to develop a Capital Outlay Schedule and a Pro Forma Income and Cash Flow Statement (or, for regulated utilities, a Revenue Requirements Analysis) for your project. You have the option of solving for project return on equity, or enter the return on equity you require and have SOAPP CT.25 solve for cost of electricity. SOAPP CT.25 s seamless integration of the project Financial Analysis and Cash Flow with the Heat Balances, Equipment Design, and Project Schedule that drive these analyses allows you to see the relative impact to your project s bottom line of even the slightest changes to your Project Input. You can use this powerful capability to target your project design simultaneously to project financial requirements, market uncertainties, site conditions, and fuel and consumable prices info@soapp.com

2 Return on Equity Report COD Values in PRODUCTION RATES Peak Customer Load (MW) Customer Load Factor % Plant Output (MW) Capacity Factor % Thermal Utilization Factor % Avg Net Plant Heat Rate (Btu/kWh) 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 Effective Income Tax Rate % DEPRECIATION BASE/SCHEDULE Total Project Capital Cost 30,339,458 Depreciation Basis % Depreciated Value 30,147,294 27,509,405 24,756,958 22,281,865 20,053,980 18,049,185 16,243,362 14,464,671 12,682,966 10,904,276 FINANCING Debt Service: 16.00% 20 Years 24,271,567 Loan Balance Start of Year 24,271,567 24,061,204 23,817,184 23,534,120 23,205,766 22,824,876 22,383,043 21,870,516 21,275,986 20,586,330 Principal Paid During Year 210, , , , , , , , , ,000 Interest Due and Paid During Year 3,883,451 3,849,793 3,810,749 3,765,459 3,712,923 3,651,980 3,581,287 3,499,283 3,404,158 3,293,813 Loan Balance At End of Year 24,061,204 23,817,184 23,534,120 23,205,766 22,824,876 22,383,043 21,870,516 21,275,986 20,586,330 19,786,330 EQUITY: % 6,067,892 TOTAL FINANCING 30,339,458 INCOME STATEMENT Revenues Avoided Demand Charges 295, , , , , , , , , ,049 Avoided Energy Charges 1,691,764 1,725,631 1,760,024 1,795,286 1,831,235 1,867,892 1,905,235 1,943,264 1,982,185 2,021,952 Avoided Thermal Charges Market Sales Demand Revenues 1,571,567 1,626,572 1,683,149 1,742,083 1,803,374 1,866,236 1,932,242 1,999,820 2,069,754 2,142,046 Page 1

3 Return on Equity Report COD Values in Market Sales Energy Revenues 8,923,106 9,236,101 9,558,706 9,893,665 10,239,607 10,597,904 10,968,556 11,352,936 11,749,671 12,161,507 Market Thermal Sales Revenues 2,020,445 2,091,160 2,161,876 2,237,642 2,318,460 2,399,278 2,485,147 2,571,016 2,661,936 2,752,856 Total Revenues 14,502,318 14,980,813 15,471,108 15,982,232 16,512,433 17,057,475 17,623,940 18,206,391 18,809,702 19,431,411 Operating Expenses Fixed O&M 657, , , , , , , , , ,208 Variable O&M 1,849,418 1,886,406 1,924,134 1,962,617 2,001,869 2,041,907 2,082,745 2,124,400 2,166,888 2,210,225 Property Taxes and Insurance 333, , , , , , , , , ,254 Natural Gas 9,486,587 9,534,020 9,581,453 9,628,886 9,676,319 9,723,752 9,771,185 9,818,618 9,866,051 9,913,484 User Specified Fuel Fuel Oil Operating Costs - Other Operating Savings - Other Total Operating Expenses 12,327,123 12,424,702 12,523,283 12,622,888 12,723,536 12,825,248 12,928,046 13,031,951 13,136,985 13,243,172 Backup Power Capacity Expenses Backup Power Energy Expenses Tax Depreciation 2,637,888 2,752,448 2,475,093 2,227,885 2,004,795 1,805,823 1,778,690 1,781,705 1,778,690 1,781,705 Interest Expenses 3,883,451 3,849,793 3,810,749 3,765,459 3,712,923 3,651,980 3,581,287 3,499,283 3,404,158 3,293,813 Taxable Income -4,346,144-4,046,130-3,338,018-2,634,000-1,928,820-1,225, , , ,868 1,112,721 Income Taxes -1,662,400-1,547,645-1,276,792-1,007, , , ,012-40, , ,616 Principal 210, , , , , , , , , ,000 Cash Flow to Equity(1) -6,067, ,218 9, , , , , ,093 1,121,381 1,391,529 1,668,810 IRR Present Value Factor Equity IRR (2) = 17.34% PV Net Flow Equity Cumulative PV Net Flow Debt Coverage(3) Avg. = (1) Taxable Income - Income Taxes + Depreciation - Principal (2) Solved by trial and error such that Cumulative PV Net Flow to Equity = 0 at end of book life. (3) (Revenues - Operating Expenses - Backup Power)/ Page 2

4 Return on Equity Report (Interest + Principal) COD Values in Page 3

5 Return on Equity Report PRODUCTION RATES Peak Customer Load (MW) Customer Load Factor % Plant Output (MW) Capacity Factor % Thermal Utilization Factor % Avg Net Plant Heat Rate (Btu/kWh) 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 Effective Income Tax Rate % DEPRECIATION BASE/SCHEDULE Total Project Capital Cost Depreciation Basis % Depreciated Value 9,122,571 7,343,881 5,562,176 3,783,485 2,001, , FINANCING Debt Service: 16.00% 20 Years Loan Balance Start of Year 19,786,330 18,858,330 17,781,849 16,533,132 15,084,620 13,404,346 11,455,229 9,194,252 6,571,519 3,529,149 0 Principal Paid During Year 928,000 1,076,480 1,248,717 1,448,512 1,680,274 1,949,118 2,260,977 2,622,733 3,042,370 3,529,149 0 Interest Due and Paid During Year 3,165,813 3,017,333 2,845,096 2,645,301 2,413,539 2,144,695 1,832,837 1,471,080 1,051, ,664 0 Loan Balance At End of Year 18,858,330 17,781,849 16,533,132 15,084,620 13,404,346 11,455,229 9,194,252 6,571,519 3,529, EQUITY: % TOTAL FINANCING INCOME STATEMENT Revenues Avoided Demand Charges 360, , , , , , , , , , ,015 Avoided Energy Charges 2,062,246 2,103,591 2,145,622 2,188,522 2,232,291 2,276,929 2,322,436 2,368,812 2,416,240 2,464,697 2,513,840 Avoided Thermal Charges Market Sales Demand Revenues 2,216,696 2,294,489 2,374,638 2,457,932 2,543,582 2,633,161 2,725,098 2,820,178 2,919,187 3,021,338 3,127,419 Page 4

6 Return on Equity Report Market Sales Energy Revenues 12,587,071 13,027,735 13,483,500 13,955,738 14,444,449 14,949,635 15,472,666 16,013,543 16,575,013 17,154,328 17,755,608 Market Thermal Sales Revenues 2,848,827 2,949,849 3,050,871 3,161,996 3,268,069 3,384,245 3,505,471 3,626,698 3,752,976 3,884,305 4,020,685 Total Revenues 20,074,979 20,742,987 21,429,345 22,146,384 22,878,269 23,641,630 24,431,208 25,242,943 26,085,396 26,955,021 27,856,568 Operating Expenses Fixed O&M 801, , , , , , , , , , ,551 Variable O&M 2,254,430 2,299,518 2,345,509 2,392,419 2,440,267 2,489,073 2,538,854 2,589,631 2,641,424 2,694,252 2,748,137 Property Taxes and Insurance 333, , , , , , , , , , ,254 Natural Gas 9,960,917 10,032,066 10,079,499 10,126,932 10,174,365 10,221,798 10,269,231 10,316,664 10,387,813 10,435,246 10,482,679 User Specified Fuel Fuel Oil Operating Costs - Other Operating Savings - Other Total Operating Expenses 13,350,533 13,482,810 13,592,593 13,703,622 13,815,924 13,929,523 14,044,446 14,160,718 14,302,083 14,421,136 14,541,622 Backup Power Capacity Expenses Backup Power Energy Expenses Tax Depreciation 1,778,690 1,781,705 1,778,690 1,781,705 1,778, , Interest Expenses 3,165,813 3,017,333 2,845,096 2,645,301 2,413,539 2,144,695 1,832,837 1,471,080 1,051, ,664 0 Taxable Income 1,779,942 2,461,139 3,212,966 4,015,756 4,870,115 7,344,321 8,553,925 9,611,145 10,731,870 11,969,221 13,314,946 Income Taxes 680, ,386 1,228,959 1,536,027 1,862,819 2,809,203 3,271,876 3,676,263 4,104,940 4,578,227 5,092,967 Principal 928,000 1,076,480 1,248,717 1,448,512 1,680,274 1,949,118 2,260,977 2,622,733 3,042,370 3,529,149 0 Cash Flow to Equity(1) 1,949,804 2,224,978 2,513,980 2,812,922 3,105,712 2,809,090 3,021,072 3,312,149 3,584,559 3,861,845 8,221,979 IRR Present Value Factor Equity IRR (2) = PV Net Flow Equity Cumulative PV Net Flow Debt Coverage(3) Avg. = (1) Taxable Income - Income Taxes + Depreciation - Principal (2) Solved by trial and error such that Cumulative PV Net Flow to Equity = 0 at end of book life. (3) (Revenues - Operating Expenses - Backup Power)/ Page 5

7 Return on Equity Report (Interest + Principal) Page 6

8 Return on Equity Report PRODUCTION RATES Peak Customer Load (MW) Customer Load Factor % Plant Output (MW) Capacity Factor % Thermal Utilization Factor % Avg Net Plant Heat Rate (Btu/kWh) 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 13,821 Effective Income Tax Rate % DEPRECIATION BASE/SCHEDULE Total Project Capital Cost Depreciation Basis % Depreciated Value FINANCING Debt Service: 16.00% 20 Years Loan Balance Start of Year Principal Paid During Year Interest Due and Paid During Year Loan Balance At End of Year EQUITY: % TOTAL FINANCING INCOME STATEMENT Revenues Avoided Demand Charges 447, , , , , , , , ,598 Avoided Energy Charges 2,564,218 2,615,464 2,667,740 2,721,068 2,775,608 2,831,017 2,887,638 2,945,471 3,004,355 Avoided Thermal Charges Market Sales Demand Revenues 3,236,643 3,349,796 3,466,878 3,588,674 3,713,614 3,844,054 3,978,423 4,117,507 4,262,091 Page 7

9 Return on Equity Report Market Sales Energy Revenues 18,376,107 19,019,944 19,685,745 20,374,883 21,087,359 21,825,917 22,589,186 23,379,911 24,198,091 Market Thermal Sales Revenues 4,162,116 4,308,598 4,455,080 4,611,665 4,773,300 4,939,987 5,116,776 5,293,565 5,480,456 Total Revenues 28,786,864 29,750,544 30,741,249 31,771,450 32,834,592 33,935,340 35,076,331 36,250,807 37,469,591 Operating Expenses Fixed O&M 997,102 1,017,044 1,037,385 1,058,133 1,079,296 1,100,882 1,122,899 1,145,357 1,168,264 Variable O&M 2,803,100 2,859,162 2,916,345 2,974,672 3,034,166 3,094,849 3,156,746 3,219,881 3,284,278 Property Taxes and Insurance 333, , , , , , , , ,254 Natural Gas 10,530,112 10,577,545 10,648,694 10,696,127 10,743,560 10,790,993 10,862,142 10,909,575 10,957,008 User Specified Fuel Fuel Oil Operating Costs - Other Operating Savings - Other Total Operating Expenses 14,663,569 14,787,006 14,935,679 15,062,187 15,190,276 15,319,978 15,475,042 15,608,068 15,742,806 Backup Power Capacity Expenses Backup Power Energy Expenses Tax Depreciation Interest Expenses Taxable Income 14,123,296 14,963,538 15,805,570 16,709,264 17,644,316 18,615,362 19,601,289 20,642,740 21,726,785 Income Taxes 5,402,161 5,723,553 6,045,631 6,391,293 6,748,951 7,120,376 7,497,493 7,895,848 8,310,495 Principal Cash Flow to Equity(1) 8,721,135 9,239,985 9,759,939 10,317,970 10,895,365 11,494,986 12,103,796 12,746,892 13,416,290 IRR Present Value Factor Equity IRR (2) = PV Net Flow Equity Cumulative PV Net Flow Debt Coverage(3) Avg. = (1) Taxable Income - Income Taxes + Depreciation - Principal (2) Solved by trial and error such that Cumulative PV Net Flow to Equity = 0 at end of book life. (3) (Revenues - Operating Expenses - Backup Power)/ Page 8

10 Return on Equity Report (Interest + Principal) Page 9

11 Base Year Report Category Total Capital Requirements (excluding Escalation and AFUDC or IDC) Total Base Year 2000 Total Process Capital 25,217,689 General Facilities 126,088 Eng & Home Office Fees 252,177 Project Contingency 255,960 Process Contingency 126,088 Total Plant Cost 25,978,002 AFUDC or IDC (See Capital Outlay Schedule) Total Plant Investment 25,978,002 $/kw (gross) Prepaid Royalties 0 Preproduction Costs 519,560 Inventory Capital 129,890 Initial Cost - Catalysts & Chemicals 0 Land 57,250 Total Capital Requirement 26,684,702 $/kw (gross) Operation & Maintenance and Fuel Costs Base Year 2000 Capacity Factor 71.43% Fixed O&M Costs Operating Labor 226,800 Maintenance Labor 134,400 Maintenance Materials 81,900 Overhead Charges 176,820 Total Fixed O&M 619,920 $/kw (gross) Variable O&M Costs Consumables 381,445 Disposal Charges 0 Byproduct Credit 0 Other Variable O&M 1,361,303 Variable Operating Labor 0 Variable Maintenance Materials 228,572 Page 1

12 Base Year Report Category Total Major Maintenance Inspections 285,690 Major Maintenance Spare Parts 847,041 SCR Catalyst Replacement 0 Total Variable O&M Costs 1,742,748 $/MWh 8.53 Fuel Costs Primary Fuel Costs 7,972,329 Secondary Fuel Costs 0 Total Fuel Costs 7,972,329 $/MWh Page 2

13 Capital Outlay Schedule Total Plant Costs Construction Period Base Year Escalated Other Gross Investment Tax Year Month 2000 $'s Escalation Plant Cost Outlays * Outlay Credits(1) , ,508 57, , , , , , , , ,009 1, , , ,009 1, , , ,009 1, , , ,340 1, , , ,725 4, , , ,725 5, , , ,725 6, , , ,385 4, , , ,385 4, , , ,385 4, , , ,385 5, , , ,740,775 87,429 3,828, ,828, ,740,775 93,752 3,834, ,834, ,491,390 93,413 3,584, ,584, ,995,080 56,762 2,051, ,051, ,995,080 60,151 2,055, ,055, ,995,080 63,545 2,058, ,058, ,261,091 75,871 2,336, ,336, ,261,091 79,731 2,340, ,340, ,011 9, , , ,011 10, , , ,875 0 Totals 25,978, ,345 26,660, ,824 27,392,171 0 Net Total Capital Requirement Allowance for Funds Used Construction Period Net Cash During Construction Total Net Outlay Summary Year Month Outlay Equity Preferred Debt Investment Year 1 Year 2 Year , , , , , , , , , , , , , , , ,141 0 Page 1

14 Capital Outlay Schedule , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,828, ,012 4,332, ,828, ,834, ,504 4,286, ,834, ,584, ,846 3,957, ,584, ,051, ,562 2,237, ,051, ,055, ,321 2,213, ,055, ,058, ,328 2,189, ,058, ,336, ,525 2,455, ,336, ,340, ,488 2,429, ,340, , , , , , , , ,875 Totals 27,392, ,947,287 30,339, ,357,700 23,826,903 Summary Analysis Plant Financing - Construction Non-Depreciable Net Plant Outlay 192,165 ** Common Equity % Equity AFUDC 0 Preferred Stock0 0.00% Preferred AFUDC 0 Debt 30,339, % Total Non-Depreciable Investment 192,165 Total 30,339, % Gross Depreciable Investment 30,147,294 (2) Total Capital Requirement 30,339,458 Less Investment Tax Credit 0 Plant Financing - Permanent Net Total Capital Requirement 30,339,458 Common Equity 6,067, % Preferred Stock0 0.00% Debt 24,271, % Total 30,339, % Page 2

15 Capital Outlay Schedule Notes: 1. To be taken at the beginning of commercial operation and then normalized over the period of commercial operation. 2. Gross depreciable investment = escalated total plant cost plus interest AFUDC plus prepaid royalties plus organization and startup expenses. * Consists of: Land 57,250 Organization & Start-Up Exp. 539,659 Prepaid Royalties 0 Working Capital 134,915 Total 731,824 ** Consists of: Land 57,250 Working Capital 134,915 Total 192,165 Page 3

16 Project IRR Construction Years Operating Years Cash Flow Item Construction Net Cash Outlays 0 3,357,700 23,826,903 Operating Period Cash Flows: Revenues Avoided Demand Charges 295, , , , , , ,760 Avoided Energy Charges 1,691,764 1,725,631 1,760,024 1,795,286 1,831,235 1,867,892 1,905,235 Avoided Thermal Charges Market Sales Demand Revenues 1,571,567 1,626,572 1,683,149 1,742,083 1,803,374 1,866,236 1,932,242 Market Sales Energy Revenues 8,923,106 9,236,101 9,558,706 9,893,665 10,239,607 10,597,904 10,968,556 Thermal Sales Revenues 2,020,445 2,091,160 2,161,876 2,237,642 2,318,460 2,399,278 2,485,147 Subtotal Revenues 14,502,318 14,980,813 15,471,108 15,982,232 16,512,433 17,057,475 17,623,940 Expenses Fixed O&M 657, , , , , , ,862 Variable O&M 1,849,418 1,886,406 1,924,134 1,962,617 2,001,869 2,041,907 2,082,745 Property Taxes and Insurance 333, , , , , , ,254 Natural Gas 9,486,587 9,534,020 9,581,453 9,628,886 9,676,319 9,723,752 9,771,185 User Specified Fuel Fuel Oil Operating Costs Other Operating Savings Other Backup Power Capacity Charges Backup Power Energy Charges Income Taxes -869, , , , , , ,343 Subtotal Expenses 11,457,394 11,504,860 11,799,429 12,080,216 12,351,596 12,614,308 12,777,703 Net Totals 0-3,357,700-23,826,903 3,044,924 3,475,953 3,671,679 3,902,016 4,160,837 4,443,167 4,846,238 Present Value Factor PV Net Cash Flow 0-3,022,123-19,302,262 2,220,176 2,281,157 2,168,784 2,074,488 1,991,007 1,913,617 1,878,614 Cumulative PV Net Cash Flow 0-3,022,123-22,324,385-20,104,210-17,823,053-15,654,269-13,579,781-11,588,774-9,675,157-7,796,543 Project IRR 13.33% Project Payback Period (years) Page 1

17 Project IRR Cash Flow Item Construction Net Cash Outlays Operating Period Cash Flows: Revenues Avoided Demand Charges 339, , , , , , , , , , , ,981 Avoided Energy Charges 1,943,264 1,982,185 2,021,952 2,062,246 2,103,591 2,145,622 2,188,522 2,232,291 2,276,929 2,322,436 2,368,812 2,416,240 Avoided Thermal Charges Market Sales Demand Revenues 1,999,820 2,069,754 2,142,046 2,216,696 2,294,489 2,374,638 2,457,932 2,543,582 2,633,161 2,725,098 2,820,178 2,919,187 Market Sales Energy Revenues 11,352,936 11,749,671 12,161,507 12,587,071 13,027,735 13,483,500 13,955,738 14,444,449 14,949,635 15,472,666 16,013,543 16,575,013 Thermal Sales Revenues 2,571,016 2,661,936 2,752,856 2,848,827 2,949,849 3,050,871 3,161,996 3,268,069 3,384,245 3,505,471 3,626,698 3,752,976 Subtotal Revenues 18,206,391 18,809,702 19,431,411 20,074,979 20,742,987 21,429,345 22,146,384 22,878,269 23,641,630 24,431,208 25,242,943 26,085,396 Expenses Fixed O&M 755, , , , , , , , , , , ,592 Variable O&M 2,124,400 2,166,888 2,210,225 2,254,430 2,299,518 2,345,509 2,392,419 2,440,267 2,489,073 2,538,854 2,589,631 2,641,424 Property Taxes and Insurance 333, , , , , , , , , , , ,254 Natural Gas 9,818,618 9,866,051 9,913,484 9,960,917 10,032,066 10,079,499 10,126,932 10,174,365 10,221,798 10,269,231 10,316,664 10,387,813 User Specified Fuel Fuel Oil Operating Costs Other Operating Savings Other Backup Power Capacity Charges Backup Power Energy Charges Income Taxes -101,414-40,623 25, , , , , ,999 1,703,120 2,034,485 2,258,569 2,518,506 Subtotal Expenses 12,930,536 13,096,362 13,269,032 13,457,549 13,679,931 13,898,271 14,131,193 14,388,923 15,632,643 16,078,930 16,419,286 16,820,589 Net Totals 5,275,855 5,713,340 6,162,379 6,617,430 7,063,056 7,531,074 8,015,192 8,489,346 8,008,987 8,352,277 8,823,657 9,264,807 Present Value Factor PV Net Cash Flow 1,840,754 1,794,169 1,741,775 1,683,462 1,617,249 1,552,071 1,486,753 1,417,325 1,203,492 1,129,642 1,074,125 1,015,109 Cumulative PV Net Cash Flow -5,955,789-4,161,619-2,419, , ,867 2,432,937 3,919,690 5,337,015 6,540,507 7,670,148 8,744,273 9,759,382 Project IRR Project Payback Period (years) Page 2

18 Project IRR Cash Flow Item Construction Net Cash Outlays Operating Period Cash Flows: Revenues Avoided Demand Charges 430, , , , , , , , , ,355 Avoided Energy Charges 2,464,697 2,513,840 2,564,218 2,615,464 2,667,740 2,721,068 2,775,608 2,831,017 2,887,638 2,945,471 Avoided Thermal Charges Market Sales Demand Revenues 3,021,338 3,127,419 3,236,643 3,349,796 3,466,878 3,588,674 3,713,614 3,844,054 3,978,423 4,117,507 Market Sales Energy Revenues 17,154,328 17,755,608 18,376,107 19,019,944 19,685,745 20,374,883 21,087,359 21,825,917 22,589,186 23,379,911 Thermal Sales Revenues 3,884,305 4,020,685 4,162,116 4,308,598 4,455,080 4,611,665 4,773,300 4,939,987 5,116,776 5,293,565 Subtotal Revenues 26,955,021 27,856,568 28,786,864 29,750,544 30,741,249 31,771,450 32,834,592 33,935,340 35,076,331 36,250,807 Expenses Fixed O&M 958, , ,102 1,017,044 1,037,385 1,058,133 1,079,296 1,100,882 1,122,899 1,145,357 Variable O&M 2,694,252 2,748,137 2,803,100 2,859,162 2,916,345 2,974,672 3,034,166 3,094,849 3,156,746 3,219,881 Property Taxes and Insurance 333, , , , , , , , , ,254 Natural Gas 10,435,246 10,482,679 10,530,112 10,577,545 10,648,694 10,696,127 10,743,560 10,790,993 10,862,142 10,909,575 User Specified Fuel Fuel Oil Operating Costs Other Operating Savings Other Backup Power Capacity Charges Backup Power Energy Charges Income Taxes 2,820, Subtotal Expenses 17,241,169 14,541,622 14,663,569 14,787,006 14,935,679 15,062,187 15,190,276 15,319,978 15,475,042 15,608,068 Net Totals 9,713,852 13,314,946 14,123,296 14,963,538 15,805,570 16,709,264 17,644,316 18,615,362 19,601,289 20,642,740 Present Value Factor PV Net Cash Flow 957,940 1,181,834 1,128,297 1,075,950 1,022, , , , , ,127 Cumulative PV Net Cash Flow 10,717,322 11,899,156 13,027,453 14,103,402 15,126,314 16,099,634 17,024,701 17,903,138 18,735,656 19,524,783 Project IRR Project Payback Period (years) Page 3

19 Project IRR 2031 Cash Flow Item 32 Construction Net Cash Outlays Operating Period Cash Flows: Revenues Avoided Demand Charges 524,598 Avoided Energy Charges 3,004,355 Avoided Thermal Charges 0 Market Sales Demand Revenues 4,262,091 Market Sales Energy Revenues 24,198,091 Thermal Sales Revenues 5,480,456 Subtotal Revenues 37,469,591 Expenses Fixed O&M 1,168,264 Variable O&M 3,284,278 Property Taxes and Insurance 333,254 Natural Gas 10,957,008 User Specified Fuel 0 Fuel Oil 0 Operating Costs Other 0 Operating Savings Other 0 Backup Power Capacity Charges 0 Backup Power Energy Charges 0 Income Taxes 0 Subtotal Expenses 15,742,806 Net Totals 21,726,785 Present Value Factor PV Net Cash Flow 747,559 Cumulative PV Net Cash Flow 20,272,341 Project IRR Project Payback Period (years) Page 4