Term

Fixed Payements
One time up-front
Annual

Variable Payments
Rate
Startup/Shutdown
Minimum

Maintenance
Min
Max

15

9,000,000.00
68,800,000.00

357.50
2
15000
5,362,500.00

12
30

Maximum Contract Volume

Summer (April-Sept)
Winter (Oct-May)

700
735

Off-take Instructions
By 8 AM # of Half hour periods and contractual volume for each period
# of shutdowns
1 shutdown
Total startups per 3 years

4
600

Contractual Heat Rate

Min
Max

6.8
7.6

Gas Delivery Cost

Minimum
Maximum

10%
15%

Gas Price (per MMBtu)

1.25

Electricity Price (per MwH)

25.00

Heat Rate (MMBtu/MwH)

6.95

Capacity (MwH)

717.5

Delivery Cost

10%
Year 1

Minimum Annual Half Hour Periods

Annual Power Generation (MwH)

Year 2-15
12500

15000

4484375

5381250

Revenue
If option exercised
If option not exercised

112,109,375.00 134,531,250.00
38,958,007.81 46,749,609.38

Fixed Costs
Upfront
Annual
Total

9,000,000.00
57,333,333.33 68,800,000.00
66,333,333.33 68,800,000.00

Variable Costs

Gas Amount

4,468,750.00
31166406.25

5,362,500.00
37399687.5

Gas Cost
Premium over index if option exercised
Delivery Cost

38,958,007.81 46,749,609.38
779,160.16
934,992.19
3,895,800.78 4,674,960.94

Total Cost
If option exercised
If option not exercised

114,435,052.08 126,522,062.50
70,802,083.33 74,162,500.00

Contribution
If option exercised
If option not exercised

68,476,406.25 82,171,687.50
35,062,207.03 42,074,648.44

Operating income
If option exercised
If option not exercised

-
-

2,325,677.08 8,009,187.50
35,739,876.30 - 32,087,851.56

Gas Price (per MMBtu)

1.25

Electricity Price (per MwH)

17.55

Heat Rate (MMBtu/MwH)

6.95

Capacity (MwH)

717.5

Delivery Cost

10%
Year 1

Minimum Annual Half Hour Periods

Annual Power Generation (MwH)

Year 2-15
12500

15000

4484375

5381250

Revenue
If option exercised
If option not exercised

78,695,175.78 94,434,210.94
38,958,007.81 46,749,609.38

Fixed Costs
Upfront
Annual
Total

9,000,000.00
57,333,333.33 68,800,000.00
66,333,333.33 68,800,000.00

Variable Costs

Gas Amount

4,468,750.00
31166406.25

Gas Cost

Premium over index if option exercised

Delivery Cost

5,362,500.00
37399687.5

38,958,007.81 46,749,609.38
779,160.16
934,992.19
3,895,800.78 4,674,960.94

Total Cost
If option exercised
If option not exercised

114,435,052.08 126,522,062.50
70,802,083.33 74,162,500.00

Contribution
If option exercised
If option not exercised

35,062,207.03 42,074,648.44
35,062,207.03 42,074,648.44

Operating income
If option exercised
If option not exercised

-
-

35,739,876.30 - 32,087,851.56
35,739,876.30 - 32,087,851.56

Indifference Analysis

Electricity Price
Heat Rate

6.95

Sensitivity Analysis
Delivery Cost
Heat Rate

25.00
1.78

14.0390

10%

10%

Year 1
Year 2-15
6.95 Option exercised
- 2,325,677.08 8,009,187.50
Option not exercised - 35,739,876.30 - 32,087,851.56

Gas Price
Heat Rate

6.8

15%

1.25
17.55

15%

Year 1
Year 2-15
- 4,273,577.47 5,671,707.03
- 37,687,776.69 - 34,425,332.03

14.0390

Gas Price (per MMBtu)

2.50

Electricity Price (per MwH)

15.00

Heat Rate (MMBtu/MwH)

6.95

Capacity (MwH)

717.5

Delivery Cost

10%
Year 1

Minimum Annual Half Hour Periods

Annual Power Generation (MwH)

Year 2-15
12500

15000

4484375

5381250

Revenue
If option exercised
If option not exercised

67,265,625.00 80,718,750.00
77,916,015.63 93,499,218.75

Fixed Costs
Upfront
Annual
Total

9,000,000.00
57,333,333.33 68,800,000.00
66,333,333.33 68,800,000.00

Variable Costs

Gas Amount

4,468,750.00
31166406.25

5,362,500.00
37399687.5

Gas Cost
Premium over index if option exercised
Delivery Cost

77,916,015.63 93,499,218.75
1,558,320.31 1,869,984.38
7,791,601.56 9,349,921.88

Total Cost
If option exercised
If option not exercised

158,068,020.83 178,881,625.00
70,802,083.33 74,162,500.00

Contribution
If option exercised
If option not exercised

- 20,000,312.50 - 24,000,375.00
70,124,414.06 84,149,296.88

Operating income
If option exercised
If option not exercised

- 90,802,395.83 - 98,162,875.00
-
677,669.27 9,986,796.88

Gas Price (per MMBtu)

2.50

Electricity Price (per MwH)

15.00

Heat Rate (MMBtu/MwH)

6.95

Capacity (MwH)

717.5

Delivery Cost

15%
Year 1

Minimum Annual Half Hour Periods

Annual Power Generation (MwH)

Year 2-15
12500

15000

4484375

5381250

Revenue
If option exercised
If option not exercised

67,265,625.00 80,718,750.00
77,916,015.63 93,499,218.75

Fixed Costs
Upfront
Annual
Total

9,000,000.00
57,333,333.33 68,800,000.00
66,333,333.33 68,800,000.00

Variable Costs

Gas Amount

4,468,750.00
31166406.25

Gas Cost

Premium over index if option exercised

Delivery Cost

5,362,500.00
37399687.5

77,916,015.63 93,499,218.75
1,558,320.31 1,869,984.38
11,687,402.34 14,024,882.81

Total Cost
If option exercised
If option not exercised

161,963,821.61 183,556,585.94
70,802,083.33 74,162,500.00

Contribution
If option exercised
If option not exercised

23,896,113.28 - 28,675,335.94
66,228,613.28 79,474,335.94

Operating income
If option exercised
If option not exercised

-
-

94,698,196.61 - 102,837,835.94
4,573,470.05 5,311,835.94

Indifference Analysis

Electricity Price
Heat Rate

6.95

Sensitivity Analysis
Delivery Cost
Heat Rate

15.00
1.07

14.0390

10%

10%

Year 1
Year 2-15
6.95 Option exercised
- 90,802,395.83 - 98,162,875.00
Option not exercised -
677,669.27 9,986,796.88

Gas Price
Heat Rate

6.8

15%

2.50
35.10

15%

Year 1
Year 2-15
- 94,698,196.61 - 102,837,835.94
- 4,573,470.05 5,311,835.94

14.0390

Gas Price (per MMBtu)

3.510

7.020

10.529

14.039

17.549

21.059

24.568

28.078

31.588

35.098

38.607

45.000
40.000

Electricity Charges (Per MeH)

Electricity Charges (per MwH)

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

2.25

2.50

2.75

35.000
30.000
25.000
20.000
15.000
10.000
5.000
-

0.50

Indifference levels

1.00

1.50

Gas Price (Per MMBtu)

2.00

2.50

3.00