Representative Economics for a Combined-Cycle Gas Fired Power Plant

Key Assumptions Output (megawatts) Capacity Factor (availability) Electricity Price ($ per MWh) In 1999 In 2009 Fuel (Gas) Price ($ per MMBtu) Plant Heat Rate (BTU per kWh) O&M Expense ($ per MWh) Capital Costs (millions) Depreciable Life (years) Debt-to-Capitalization Ratio Debt Interest Rate Inflation Rate Tax Rate No. Of Days that plant will operate Price per Mwh of Electricity $31.00 assuming a market heat rate of 11,000 $24.00 assuming a market heat rate of 7,500 $2.20 note: 1 MMBtu = 1,000,000 Btu 7,500 note: 1000 kWh = 1 MWh $3.50 $500 note: construction period = 2 years 30 65% 7.75% 2.00% 38% 328.5 $31.0 For the Plant working in normal Conditions ($000) Capital Expenditure Production (MWh) Revenue Expense Fuel O&M Expense Depreciation Total Expense Gross Profit Interest Expense Profit before Tax Taxes @38% Net Income ROCE Net gain On production Of 1000 MW of Power 130086.00 27594.00 16666.67 174,347 70,057 25,188 44,870 17,051 27,819 6% 12,231 123581.7 24834.6 160916.3 83487.70 18,891 64597.08 24,547 40,050 11% $500,000 For the Plant Operated with aggressive methodology ($000) $375,000 7,884,000.00 244404.00 1,000 90%

Comments & Assu

As Per aggressive strategy cost of set

7,884,000.00
244404.00

As Per aggressive strategy cost of fuel As Per aggressive strategy cost of O& 12500 Straight Line Depreciation with salvag

We assume Debt/Equity = 0.65

Comments & Assumptions

Per aggressive strategy cost of setting up plant reduce by 25%

Per aggressive strategy cost of fuel will reduce by 5% Per aggressive strategy cost of O&M will reduce by 10% aight Line Depreciation with salvage value = 0 and life = 30yr

assume Debt/Equity = 0.65