Does Twin Peaks have the obligation to absorb losses or the right to receive returns from Power Finance?

Multiple Choice

• Yes because Twin Peak is protected from risk of loss when electricity prices fall.

• Yes because Twin Peaks will enjoy residual profits from operating while Power Finances equity investors receive the fixed fee.

• No because Power Finances equity investors receive the fixed fee.

• No because Twin Peaks will pay a fixed fee to lease the electric generating plant, operate the plant, and sell the electric power in its markets.