New England Energy Strategic Investment Decision Constants 2014 2015 2016 2017 2018 2019 Carbon Credits available for sale Hydroelectric Plan NA NA 200,000 200.000 200,000 200.000 Operating Cost per Megawatt-Hour Hydroelectric Plant MA NA $20.00 $20.60 $21 22 $21.85 Operating Cost per Megawatt-Hour Methane Fuel Cell Plant (base) NA 345.00 $46.35 $47.74 :49.17 $50.65 Estimated Market Price per Megawatt-Hour NA $70.00 #73 50 $77.18 :31 03 $85.09 Estimated Sales Price for Carbon Credit NA $80.00 :82.00 #84.00 :36.00 $68.00 Hours of Scheduled Operation in a Year, Hydroelectric Plant 8424 NA NA NA NA Hours of Scheduled Operation in a Year, Fuel Cell Power Plant 8592 NA NA NA NA NA Capital Investment for Hydroelectric Plant $2.000.000,000 NA NA NA NA NA Capital Investment for Fuel Cell Plant 3900 000.000 NA NA NA NA NA Generation Capacity of Hydroelectric Plant, Megawatts 3,000 NA NA NA NA NA Generation Capacity of Fuel Cell Plant. Megawatts 2.200 NA NA NA NA NA Corporate Income Tax Rate 25%% 2585 26%E 2696 279E 2796 Inputs Weather Outlook (M=Mild, 5=Severe) Market Price of Methane (L=Low, H=High) Investment Selection (W=Hydroelectric, F=Methane Fuel Cell Summary of Key Results 2014 2015 2016 2017 2010 2019 Wet Income After Taxes End-of-year Cash on hand NA Internal Rate of Return for Investment NA NA NA NA Calculations 2014 2015 2016 2017 2018 2019 Forecasted Additional Market Demand for Energy-.MW 2,000 2 060 2 122 2,16: 2 25 Available Additional Generation Capacity for Sale MA 3.000 3,000 3.000 3,000 Annual Electricity Sales NA $1,313, 742 175 $1 420.812 162 51,536,608,354 $1 661 841 935 Annual Carbon Credit Sales (Hydroelectric Only) MA $16,400,000 $15,800,000 $17 200.000 $17,600,000 Annual Operating Cost for Hydroelectric Plant MA NA $505,440,000 $520.603.200 $536,221,295 $352 307.935 Annual Operating Cost for Methane Fuel Cell Plant MA $765,547,200 $786.513,616 $812 169 024 $835,534,095 :851 630.118 Period Cost Allocation (Sales, (General, & Administrative) $150,000.000 $159,000,000 $163,770,000 Income and Cash Flow Statements 2014 2015 2016 2017 2018 2019 Beginning-of-year Cash on Hand (deduct Investment for 2014) NA $200 000 000 $76,709,056 $478 093 367 81,085,444,700 $1 598 728.763 Electricity Sales NA $1,313,742.175 $1 420 812 162 $1,536,608,354 $1 661 841 935 Carbon Credit Sales NA NA $16,400,000 $15,800,000 $17 200.000 $17,600,000 Total Revenues NA $1, 330,142 175 $1 437 612 162 81,553,808,354 $1 679.441 935 less: Operating Costs NA $505,440,000 $520.603.200 $535,221,295 $552 307.935 Gross Profit NA $824,702.175 $917,008.962 $1,017,587,053 $1 127.134,000 less: Bond Payment (Hydroelectric Plant only) NA $123,290,944 $123,290,944 $123 290 944 $123,290,944 $123.290 944 less Period Costs Allocated NA $159,000,000 30 $163,770,000 Net Profit before Income Tax NA (#123,290,945) $542,411,231 #793.718.018 $730,526,113 $1 003.843.055 less Income Tax Expense NA 30.00 $141 026.920.03 $206,366,684.72 $197,242,050.62 $271 037 62494 Net Income after Taxes (Cash Inflow) NA 8123,290,945 $401,384,311 $537 351 333 $533,284,063 :732 805,430 End-of-year Cash on Hand #1 200.000,000 $76.709.056 $478,093,367 $1 065.444 700 $1,598,723,763 $2 331 534 193 Internal Rate of Return Calculation Bond Payment Calculation (Hydroelectric Plant Investment (Cash Outflow-2014 $1,800,000,800 Amount of Bond (Principal) Cash Inflow 2015 (3123.290.944) Term of Band (Yrs) Cash Inflow 2016 8401 384311 Interest Rate Cash Inflow 2017 :587 351 335 Annual Payment 3123,290.94
