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Home My WebLink AboutMakushin Sensitivity Analysis 19971997 MAKUSHIN SENSITIVITY ANALYSIS/CASE SUMMARIES y,|'a A (/y Ww.ate 9Wf,os 7 7 fe?h{he a iv]¢ Makushin |1997 Rate |Entry Rate|Equity |Stabilized Rate AIDEA AIDEA 30-year Return |Gross AIDEA Load Growth (2000)Inflator Minimum Balance Year 10)to AIDEA Profit (30 yrs) Balance BASE 0.00%$0.1000 $0.1148 $0 1.75%($6,829,829)($6,049,420)10.09%$51,972,266 ($3,023,998)$141,123,298 "(67,331,265) i 3. 3,084),16.64% BASE2 0.00%$0.1000 $0.1148 $0 2.00%($4,811,854)($4,750,540)12.77%$68,048,498 ($2,843,272)$1,838,569 25.86%$161,781,762 $36,643,097"14,373,305) ($3,298,802)$946,477)$121 $0.1033 ($33,249,783)$14,331,695 $95,270,927 $0.1050 $0.1205 $0 ($1,783,9973) ($1,331,248) ($758,616) $6,026,285 "$70,792,551 $164,049,483 1997 MAKUSHIN SENSITIVITY ANALYSIS/CASE SUMMARIES r a Makushin |1997 Rate |Entry Rate|Equity Stabilized Rate AIDEA AIDEA 30-year Return |Gross AIDEA Load Growth (2000)Inflator Minimum [Balance Year10}to AIDEA |Profit (30 yrs) Balance SENS 0.00%$0.1000 $0.1148 $0 1.75%($10,523,873)|($7,558,663)8.43%$45,331,008 3.00%($3,713,880)($1,07287)20.88%$134,482,040 66.2503783) $329,325 $61,407,241 $155,1405 5 $0 G18,806 638) ($4 083 623) (8,840,508) 2,455,720) 5.82% 18.48% $30,001,839 $1 14 (805,387 ($37,683,116) ($12,387,213) ($18,140,270) ($12,251,543) Breakeven e 15.18% 33.29%OWES20.83% $64,151,293 $157,408,225- ©LeResche &Co.3/7/97 3/7/97 4:11 PM LeResche Co 907 586-8339 P.002 Draft MAKUSHIN G EOTHERMAL PROJECT TERM SHEET 3/11/97 *Contract Type -Requirements °Term --25 years unsuntOpeningRate -thde,19978 «Rate Inflator =tbd% °Rate step-up upon provenreliability --$.01 *Proof Period --One year at 95%availability te.Soe Parone noone ween ee +a sete nt abelian ns wie °ProjecttoInclude: -15mw net capacity -Gridding and central dispatch for entire service area *Miscellaneous conditions: -Processors agree to similar contracts. -City or AIDEA may cancel the agreement if well-drilling does not beginonorbeforeJuly1,1998. -City agrees to a moratorium on other generation investments until July 1,1998,except with concurrence of AIDEA. -City assists AIDEA in seeking additional Federal Funding in Washington.If additional funding is received,parties agree to re- open discussion of opening rate. u 11/2496 5:50 PM LeResche Co 907 586-833°Pp.001 LeResche &Co. From:Sent:11/23/96 5:50 PM Bob LeResche Number of pages,including cover sheet:4Voicenumber:907 586-8338 Please Deliver to: Dave Germer -0907 Message: DAVE --HERE'S WHAT IT LOOKS LIKE,TO THE BEST OF MY ANALYTIC CAPABILITIES.I'll bring a disc on Monday. Best regards,RL Alevised MAKUSHIN SENSITIVITY ANAL YSISYCASE SUMMARIES RSF*BalanceMakushinEntryRate]\Stabilized Rate RSF*30-year Return)Gross AIDEA Load Growth |1996 Rate (2000)|Equity ;Inflator Minimum Year 10 to AIDEA Profit (30 yrs) HASE 0.00%$0.1000 |$0.1148 Es)250%(4,755,932)|($5,788,752)13.67%+:$89,121,832 3.00%($5,419,381)0.2.0%$211 800,392 }=f ($13,744,278).|<|0.009 SIZAIF =.STSBE ISA)fT *.$BL6A1 613" 0;$120,038 642 t (83631859)2.$232,717,203|(31,369,347):-]-($8,965,458):|97,004,422... (GA12B,295),-|:$2,970,744):"i $84,375,676.- ($8,458,754)($8,370,021)$64,587,817 °($5,764,920)|($1,858,952)$166,314,181 ($4,037,127)|$2,319,234)$85,504,627 ($3,678,400)a $187 230,99256.1148 $0 1.00%($34,936,449)j ($13,335,702)$4,391,906-1 ($7,460,445)|($7,210,922).$87,627,702 $0.1148 |$7,000,000 1.00%(521019638)|(S7284914))4.34%$25,308,717 (53,194,355)|(51,160,135)17.98%$108 ,544513$0.1148 "$0 2.50%(59A52,982)|(59,303,815)11.28%$91,037,186 ($6,999,060)|($2,590,845)19.49%$203,715,746 $0.1148 |$7,000,000 230%($5,262,071)|453,253,028)15.89%$11,953,996 >($4,520,845)-so |25.49%$224 632,556$0.1148 i)'250%($12,979,682)|($12,818,879)|9.40%$82,952,539 ($8,951,406)|($6,105,909)17.09%$195 631,100$0.1148 |$7,000,000 200%(S7,441A70)|(56,768,092)12.94%$103 869,350 ;($5,811,117)($55,121)21.64%|$216,547.91090.1148 $0 250%"(87.775279)|($7,297,995)|12.30%|992,480574- ;($5,961,633)($585,025)21.12%$205,159,135 §0.1148 |$7,000,000 250%($4,286,782)|($1,247,208)17.97%$113,397385 ,($3,893,662)90 28.41%$226 075,945$0.1148 30 250%($8,957,239)|($8,507,239)11.22%$85,839,317 ($6,521,290)|($2,094,269)19.79%$198,517,877 FPOC+10%0.00%($4,884,302)|(2,756,452)16.11%$16,756,127 ($4,265,557)so 26.20%$219,434,688 BASE-20yr ($14,952,611)|($14,480,761)11.69%|$125,478,748($5,764,920)|(51,858,952)19.29%|$166,314,181F($50,500 751):|°($24,887,395):|">.0.00%").($30,301)."($28,A28 740)"}-"($18,964,266)x +[$73,352,470"($4,222,897)|($7,803,896)15.02%$144 A97,100($6,249,101)|($1,090,928)22.10%$257,175 661"($42,896 830)"|$19,382,640)J "0.00%"|-$7,008,966 «-(821,170 88S)-}($13,569,335)|:8.88%".|[$76,974 4701.” "RSF =Rate Stabilization Fund wily Breakeven (O%IRR to AIDEA)Cases at xo load growth a sheoge oe ©LeResche &Co.11/19/96 WdOS'S9G6/EZ/L4.oya7oO...6€£8-985206200'd 96/ET/TL©WPalorgTeurayjoayHuIsNyeyAIDEA Geass Profit O0000000¢0000000010000000510000000020000000s2omse175WdOS'S96/E2/LE000000008Base Case (25%rate inflator) Base Case +#7million grant PELETL a Fe rine 3 SEETEESSE pe Ee oo siyrcier nity cog ire SIvEI Ereioers Ps cwkem?rac}ajto7=2%Yate inflator .--_-1_ 2%inflator +$7 million ] grant izhihih,gvinizid miginimeeh tie 17,rate inflator Sarnasigeepee eemeesl 1%inflator +$7mullion CapitalCost5%=[1 Capital Cost +5%+487inillicn ]grant 5a ER EREBERaEpERREpTTS a CapitalCet+10%fennel := Capital Cost +10%] Fixed Operating Costs 45%fpeerrerenrrnrrmrrerenreenenleesper errr vemermrerey - Fired Operating Costs +5%]+$7 million grant Bev piiechitoh nia triecteret parent of cpeeg siibo this abheenees oer nennte ee Fixed Operating Costs +10%capereaseeenrs eel Fired Operating Costs +10%,]+$7mi lion grant EL LPLERLLSSESTEELSE LgerePee ie ee eee eeeif]20yry Financing SE Eeaesweraesseze 20yr Financing +$7rmillion ]_i@Yo7co6£€8-98S206jYfotdVICI4vah-o¢YIMOIDPRO]%EEYYIMOIDpeo]ONFYgrant Thiel ii iis phils it oe MTU TEES te bee Spr es pertiie ers peepsfe £00'd 907 586-8339 P.004LeRe--=Co9311/23/96 5.50PM 30-year AIDEA Return CINo Load Growth Wi 3%Load Growth pte.SAMNalerespressCP TERE pa eee ROT+ SS0DSuqerdgPexlyGtSODFrgerwdapwdy Hatg ata 9: ah| -_-_- Biasredaeat Spear italpeae *L0T+1900 Tene "G+ 1805 TENTEDAQLETFUTMELAQETFULMET%Z(NETPTamet ZG7)35E> 3seI REM 5.00%- 0.00%+ Makushin Geothermal Project ¢11/23/96 Revised MAKUSHIN SENSITIVITY ANALYSIS/CASE SUMMARIES Makushin Entry Rate Stabilized Rate RSF*RSF*Balance |30-year Return|Gross AIDEALoadGrowth|1996 Rate (2000)Equity Inflator Minimum Year 10 to AIDEA Profit (30 yrs) BASE $0.1000 $0.1148 $0 2.50%($6,755,932)($5,788,752)13.67%$99,121,832 ($5,419,381)22.60%|211800392$12.41752,625)81,641,613 $0.1000 $0.1148 |$7,000,000 ($3,820,444)$120,038 642 ($232,717 203 ($5,764,920) 2%Rate .9.79%$64,587,817 Inflator 3.00%($5,764,920)($1,858,952)19.29%$166,314,181 2%Rate 0.00%$0.1000 $0.1148 |$7,000,000 2.00%($4,037,127)($2,319,234)15.26%$85,504,627 Inflator 3.00%($3,678 A00)$0 26.86%$187 230,992 1%Rate 0.00%$0.1000 $0.1148 $0 1.00%($34,936,449)|($13,335,702)0.86%$4,591,906 Inflator 3.00%($7 460,445)($7,210,922)12.13%$87,627,702 1%Rate 0.00%$0.1000 $0.1148 |$7,000,000 1.00%($21,019,638)|($7,284,914)4.34%$25,508,717 Inflator 3.00%($3,894,355)($1,160,135)17.98%$108,544513 Cap.+5%0.00%$0.1000 $0.1148 $0 2.50%($9,452,982)($9,303,815)11.28%$91,037,186 3.00%($6,999,060)($2,590,845)19.49%$203,715,746 Cap.+5%0.00%$0.1000 $0.1148 |$7,000,000 2.50%($5,262,071)($3,253,028)15.89%$111,953,996 3.00%($4,520,845)$0 25.49%$224 632,556 Cap.+10%0.00%$0.1000 $0.1148 $0 2.50%($12,979,682)|($12,818,879)9.40%$82,952,539 3.00%($8,951,406)($6,105,909)17.09%$195,631,100 Cap.+10%0.00%$0.1000 $0.1148 |$7,000,000 2.50%($7,441,470)($6,768,092)12.94%$103 869,350 3.00%($5,811,117)($55,121)21.64%$216 547,910 FOC+5%0.00%$0.1000 $0.1148 $0 2.50%($7,775,279)($7,297,995)12.39%$92,480,574 3.00%($5,961 633)($585,025)21.12%$205,159,135 FOC+5%0.00%$0.1000 $0.1148 |$7,000,000 2.50%($4,286,782)($1,247,208)17.97%$113,397 ,385 3.00%($3,893 662)$0 28.41%$226,075,945 FOC+10%0.00%$0.1000 $0.1148 $0 2.50%($8,957 239)($8,807,239)11.22%$85,839,317 3.00%($6,621 290)($2,094,269)19.79%$198,517,877 FOC+10%0.00%$0.1000 $0.1148 |$7,000,000 2.50%($4,884,302)($2,756,452)16.11%$106,756,127 3.00%($4,265,557)$0 26.20%$219 434,688BASE-20yr 0.00%$0.1000 $0.1148 $0 2.50%($14,952,611)|($14,480,761)11.69%$125 478,748 ($1,858,952) $24,887,£($18,984,286) 19.29%|$166,314,181$30,301 $7,000,000 ($8,222,897)($7 803,898) ($1,090,928) *RSF =Rate Stabilization Fund ©LeResche &Co.11/19/96 Revised MAKUSHIN SENSITIVITY ANALYSIS/CASE SUMMARIES CONSTANTS TO ALL CASES Plant &Reservoir Costs Plant Cost -1996$$ Field Development Costs -1996$$ Interest During Construction: Geothermal Lease: Annual Operating Costs: Inflator to Annual Operating Costs: Wellfield Renewal &Replacement: $78,336,000 $15,270,000 one Quarter average 2.5%gross receipts years 1-10 3.5%gross receipts years 11-20 5.0%gross receipts thereafter $3,338,000 3.50% Included in Annual Operating Costs Fluid Fees:None Rate Stabilization Fund:From cash as required Financing Debt Service Reserve:One year's Debt Service Bond TIC:6.75% Bond term:25 or 20 years Cost of Finance:2%of bond principal amount Geothermal Plant Production Makushin Net Production: Makushin Plant Factor: Line Loss: Maximum Makushin Annual Energy: 15 mW 0.95 1mW 116,508,000 General Analysis Term of Analysis: General Inflation: Integrated Diesel Case rates: 30 years 3.50% From RW Beck MAKUSHIN GEOTHERMAL PROJECT Bonds $107,678,332 nterest Rate 6.75% 'erm 25 ayment $9,032 803 nflation 3.50% lebt Service $9,032 803 nterest Earnings (minus 50bp)7.00% 'akushin Growth Scenario 3.00% Year Energy Requirements kWh City Processors Total Mukushin Load:Growth 0.00% Mukushin Load:Growth 3.00% Cost of Power Fixed Costs fixed operating costs 3.50% other fixed costs 3.00% Variable Costs fluid fees royalty other opereating costs Capital Costs debt service interest earned Total Cost of Makushin Power Avg.Rev.Req,@ load growth:0.00% Avg.Rev.Req.@ load growth:3.00% Makushin Rates Rate InflatorUnisea2.25% Westward 2.25% City &Others -0%Load Growth:2.25% City &Others -3%Load Growth:2.25% STABILIZED RATE:2.50% Makushin Sales -kWh Unisea Westward City &Others 0.00% City &Others 3.00% Makushin Revenues Unisea Westward City &Others 0.00% City &Others 3.00% Return to RSFund 0%load gr.0.00% Return to RSFund 3%load gr.3.00% Return to Equity 0%load gr.$0 Return to Equity 3%load gr.$0 RSF Balance 0%load gr.RSF Balance 0%| RSF Balance 3%load gr.RSF Balance 3%1 Cos \ad \Powel 4 |Cc ctHVOUSCase:BASE J ESRSERetum0%Load Gr.3%Load Gr! Equity:$0 RSF IRR 13.67%22.60%92000 Rates Heat Rate: Plant:$78,336,000 NPV @ 3%Discount $44 A409,484 $103,775513 Stablized:$0.1148 1996$/gal: Wellfield:$15,270,000 GROSS PROFIT:$99,121,832 -$211,800,392 Unisea:$0.1148 96/kWh fuel: Int.for Const:$1,755,113 Min.RSF Balance:($6,755,932)($5,419,381)Westward:$0.1148 96 O&M: Subtotal:$95,361,113 IDC factor:0.25 Net Output 15,000 96 allin cost: Reserve;$10,205,880 DSR factors:Plant Factor.0.95 Cost of Fin:$2,111,340 20 yr:0.109 Line Loss:-1000 Bond Size:_$107,678,332 25 yr:0.10085 Max Ann Engy:116,508,000 1 2 3 4 2 6 Z 8 2 10 il 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 29,402,497 29,402 497 29,402,497 29,402,497 29,402,497 29A02,497 29,402,497 29,402,497 29,402,497 29 402,497 29,402,497 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64517503 64,517,503 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82 293,000 82,293,000 82,293,000 93,920,000 83,171,790 84,076,944 85,009,252 85,969,530 86,958,615 87,977 374 89,026,695 90,107,496 91,220,721 92,367 343 $2,573,000 $2,663,055 $2,756,262 $2,852,731 $2,952,577 $3,055,917 $3,162,874 $3,273,575 $3 388,150 $3,506,735 $3,629,A71 $765,000 $787,950 $811,589 $835,936 $861,014 $886 845 $913,450 $940 854 $969,079 $998,151 $1,028,096 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $236,083 $241,985 $289,181 $296,410 $303,821 $311,416 $319,202 $327,182 $335 361 $343,745 $493,274 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 ($632,296)($632,296)($632,296)($632,296)($632,296)($632,296)($632,296)($632 296)($632 296)($632,296)($632,296) $11,974,589 $12,093 496 $12,257,538 $12,385,584 $12,517,918 $12 654,684 $12,796 032 $12,942,116 $13,093,097 $13,249,138 $13,551,348 $0.1275 $0.1470 $0.1489 $0.1505 $0.1521 $0.1538 $0.1555 $0.1573 $0.1591 $0.1610 $0.1647 $0.1275 $0.1454 1457 $0.1456 $0.1455 $0.1454 $0.1454 $0.1453 $0.1452 $0.1467 $0.1148 $0.1173 $0.1644 $0.1681 $0.1719 $0.1758 $0.1797 $0.1838 $0.1879 $0.1921 $0.1148 $0.1173 $0.1644 $0.1681 $0.1719 $0.1758 $0.1797 $0.1838 $0.1879 $0.1921 $0.1148 $0.1173 $0.1644 $0.1681 $0.1719 $0.1758 $0.1797 $0.1838 $0.1879 $0.1921 $0.1148 $0.1173 $0.1644 $0.1681 $0.1719 $0.1758 $0.1797 $0.1838 $0.1879 $0.1921 $0.1148 $0.1176 $0.1441 $0.1477 $0.1514 $0.1552 $0.1590 $0.1630 $0.1671 $0.1713 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29 293,000 29,293,000 29,293,000 29,293,000 29,293,000 30,171,790 31,076,944 32,009,252 32,969,530 33,958,615 34,977 374 36 026,695 37,107,496 38,220,721 39,367,343 $3,442,569 $3,528,633 $4,216,849 $4,322,270 $4,430,327 $4,541,085 $4,654,612 $4,770,978 $4,890,252 $5,012,508 $5,137,821 $2,639 303 $2,705,285 $3,232,918 $3,313,741 $3,396 584 $3,481,499 $3,568,536 $3,657,750 $3,749,193 $3,842,923 $3,938,996 $3,361,439 $3,445,475 $4,117,472 $4,220,409 $4,325,919 $4,434,067 $4,544,919 $4,658,542 $4,775,005 $4,894,380 $5,016,740 $3,361 A439 $3,548 839 $4,368,226 $4,611,755 $4,868 860 $5,140,299 $5,426 871 $5,729,419 $6,048,834 $6,386,056 $6,742,079 ($2,531,278)($2,414,103)($690,299)($529,165)($365,088)($198,034)($27,965)$145,152 $321,354 $500,674 $542,209 ($2,531,278)($2,310,738)($439,545)($137,819)$177,853 $508,198 $853,987 $1,216,029 $1,595,182 $1,992,349 $2,267,548 ($2,531,278)($2,414,103)($690,299)($529,165)($365,088)($198,034)($27,965)$145,152 $321,354 $500,674 $542,209 ($2,531,278)($2,310,738)($439,545)($137,819)$177,853 $508,198 $853,987 $1,216,029 $1,595,182 $1,992,349 $2,267,548 ($2,531,278)($4,945 381)($5,635,680)($6,164,845)($6,529,933)($6,727,967)($6,755,932)($6 610,779)($6,289,425)($5,788,752)($5,246,542) ($2,531,278)($4,842,017)($5,281,562)($5,419,381)($5,241,528)($4,733,330)($3,879,343)($2,663,313)($1,068,131)$0 $0 MAKUSHIN GEOTHERMAL PROJEs LRSF Return 0%Load Gr 3%Load Gr] RSF IRR 13.67%22.60% Bonds $107,678,332 [12 NPV @ 3%Discount $44,409,484 $103,775,513 Interest Rate 6.75%8$1.2500 GROSS PROFIT:=$99,121,832 $211,800,392 Term 25990.1042 Min.RSF Balance:($6,755,932)($5,419,381) Payment $9,032,803 1$0.0200 Entry Rate Cale.Inflation:3.50%[Entry Rate Caic.Inflation:3.50% Inflation 3.50%450.1242 1996 Rate 1997 1998 2000 Stabilized 1996 Rate 1997 1998 1999 Stabilized Debt Service $9,032,803 $0.1000 $0.1035 $0.1071 $0.1148 $0.1200 $0.1242 $0.1285 $0.1377 Interest Earnings (minus 50bp)7.00%$0.1200 $0.1242 $0.1285 $0.1377 $0.1300 $0.1346 $0.1393 $0.1492 Makushin Growth Scenario 3.00%$0.1000 $0.1035 $0.1071 $0.1148 $0.1400 $0.1449 $0.1500 $0.1607 $0.0900 $0.0932 $0.0964 $0.1033 $0.1500 $0.1553 $0.1607 $0.1721 Year R 13 14 13 16 iz 18 19 20 Energy Requirements kWh 2011 2012 2013 2014 2015 2016 2012 2018 2019 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402 497 29,402,497 Processors 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Mukushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Mukushin Load:Growth 3.00%93 548,363 94,764,814 96,017,758 97,308,291 98,637,540 100,006,666 101,416 866 102,869,372 104,365,453 Cost of Power Fixed Costs fixed operating costs 350%$3,756,502 $3,887,980 $4,024,059 $4,164,901 $4,310,673 $4,461,546 $4,617,700 $4,779 320 $4,946,596 other fixed costs 3.00%$1,058,939 $1,090,707 $1,123,428 $1,157,131 $1,191,845 $1,227,600 $1,264 428 $1,302 361 $1,341,432 Variable Costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 royalty $505,606 $518,247 $531,203 $544,483 $558,095 $572,047 $586,348 $601,007 $616,032 other opereating costs Capital Costs debt service $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 $9,032,803 interest earned ($632,296)($632 296)($632,296)($632,296)($632,296)($632,296)($632,296)($632,296)($632,296) Total Cost of Makushin Power $13,721,554 $13,897,440 $14,079,196 $14,267,021 $14,461,119 $14,661,700 $14,868,984 $15,083,195 $15,304,567 Avg.Rev.Req.@ load growth:0.00%$0.1667 $0.1689 $0.1711 $0.1734 $0.1757 $0.1782 $0.1807 $0.1833 $0.1860 Avg.Rev.Req.@ load growth:3.00%$0.1467 $0.1467 $0.1466 $0.1466 $0.1466 $0.1466 $0.1466 $0.1466 $0.1466 Makushin Rates Rate InflatorUnisea2.25%$0.1965 $0.2009 $0.2054 $0.2100 $0.2147 $02196 $0.2245 $0.2296 $0.2347Westward2.25%$0.1965 $0.2009 $0.2054 $0.2100 $0.2147 $0.2196 $0.2245 $0.2296 $0.2347 City &Others -0%Load Growth:2.25%$0.1965 $0.2009 $0.2054 $0.2100 $02147 $0.2196 $0.2245 $0.2296 $0.2347 City &Others -3%Load Growth:2.25%$0.1965 $0.2009 $0.2054 $0.2100 $0.2147 $0.2196 $0.2245 $0.2296 $0.2347 STABILIZED RATE:250%$0.1755 $0.1799 $0.1844 $0.1890 $0.1938 $0.1986 $0.2036 $0.2087 $0.2139 Makushin Sales -kWh 2011 2012 2013 2014 2015 2016 2017 2018 2019Unisea30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000 000 23,000,000 City &Others 0.00%29,293,000 29 293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293 000 29,293,000 City &Others 3.00%40 548,363 41,764,814 43,017,758 44,308,291 45,637,540 47,006,666 48,416 866 49,869 372 51,365,453 Makushin Revenues Unisea $5,266,267 $5,397,923 $5,532,871 $5,671,193 $5,812,973 $5,958,297 $6,107,255 $6,259,936 $6,416,435 Westward $4,037,471 $4,138,408 $4,241,868 $4,347,915 $4,456,613 $4,568,028 $4,682,229 $4,799 284 $4,919,266 City &Others 0.00%$5,142,158 $5,270,712 $5,402,480 $5,537 542 $5,675,981 $5,817,880 $5,963 327 $6,112,410 $6,265,221 City &Others 3.00%$7,117,950 $7 514,775 $7,933,724 $8,376,029 $8,842,993 $9,335,990 $9,856 A71 $10,405,969 $10,986,102 Return to RSFund 0%load gr.0.00%$724 342 $909,604 $1,098,023 $1,289,629 $1,484,447 $1,682,505 $1,883 827 $2,088 436 $2,296,355 Return to RSFund 3%load gr.3.00%$2,700,133 $3,153,667 $3,629,267 $4,128,116 $4,651,459 $5,200,615 $5,776,971 $6,381,995 $7,017,236 Return to Equity 0%load gr.$0 $724,342 $909,604 $1,098,023 $1,289,629 $1,484,447 $1,682,505 $1,883 827 $2,088 436 $2,296,355 Return to Equity 3%load gr.$0 $2,700,133 $3,153,667 $3,629,267 $4,128,116 $4,651,459 $5,200,615 $5,776,971 $6,381,995 $7,017,236 RSF Balance 0%load gr.RSF Balance 0%1 ($4,522,200)($3 612,597)($2,514,574)($1,224,945)$0 $0 $0 $0 $0 RSF Balance 3%load gr.RSF Balance 3%|$0 $0 $0 $0 $0 $0 $0 $0 $0 ai 2020 29,402,497 64,517,503 93,920,000 82,293,000 105,906,416 $5,119,727 $1,381,675 $0 $902,047 $9,032,803 ($632,296) $15,803,956 $0.1920 $0.1492 $6,576,845 $5,042,248 $6,421,851 $11,598,577 $2,236,989 $7,413,715 $2,236,989 $7,413,715 $0 $0 2 2021 29,402,497 64,517,503 93,920,000 82,293,000 107,493,609 $5,298,917 $1,423,125 $0 $924,598 $9,032,803 ($632,296) $16,047,148 $0.1950 $0.1493 $0.2454 $0.2454 $0.2454 $0.2454 $0.2247 2021 30,000,000 23,000,000 29,293,000 54,493,609 $6,741,267 $5,168,304 $6,582,397 $12,245,198 $2,444,821 $8,107,621 $2,444,821 $8,107,621 $0 $0 MAKUSHIN GEOTHERMAL PROJEt [Bonds $107,678,332 Interest Rate 6.75% (Term 25 [Payment $9,032,803 Inflation 3.50% [Debt Service $9,032,803 Interest Earnings (minus 50bp)7.00% iMakushin Growth Scenario 3.00% Year ner i W: City Processors Total Mukushin Load:Growth 0.00% Mukushin Load:Growth 3.00% Cost of Power Fixed Costs fixed operating costs 3.50% other fixed costs 3.00% Variable Costs fluid fees royalty other opereating costs Capital Costs debt service interest earned Total Cost of Makushin Power Avg.Rev.Req.@ load growth:0.00% Avg.Rev.Req.@ load growth:3.00% Makushin Rates Rate InflatorUnisea2.25% Westward 2.25% City &Others -0%Load Growth:2.25% City &Others -3%Load Growth:2.25% STABILIZED RATE:250% Makushin Sales -kWh Unisea Westward City &Others 0.00% City &Others 3.00% Makushin Revenues Unisea Westward City &Others 0.00% City &Others 3.00% Return to RSFund 0%load gr.0.00% Return to RSFund 3%load gr.3.00% Return to Equity 0%load gr.$0 Return to Equity 3%load gr.$0 RSF Balance 0%load gr.RSF Balance 0%| RSF Balance 3%load gr.RSF Balance 3%| 2 2022 29,402,497 64,517,503 93,920,000 82,293,000 109,128,417 $5,484,379 $1,465,819 $0 $947,713 $9,032,803 ($632,296) $16,298,418 $0.1981 $0.1494 $0.2509 $0.2509 $0.2509 $0.2509 $0.2303 2022 30,000,000 23,000,000 29,293,000 56,128,417 $6,909,798 $5,297,512 $6,746,957 $12,927,868 $2,655,849 $8,836,760 $2,655,849 $8,836,760 $0 $0 24 2023 29,402,497 64,517,503 93,920,000 82,293,000 110,812,270 $5,676,333 $1,509,794 $0 $971,406 $0 $0 $8,157,532 $0.0991 $0.0736 $0.2566 $0.2566 $0.2566 $0.2566 $0.2361 2023 30,000,000 23,000,000 29,293,000 57,812,270 $7,082,543 $5,429,950 $6,915,631 $13,648,596 $11,270,592 $18,003,557 $11,270,592 $18,003,557 $0 $0 25 2024 29,402,497 64,517,503 93,920,000 82,293,000 112,546,638 $5,875,004 $1,555,087 $0 $995 £91 $0 $0 $8,425,783 $0.1024 $0.0749 $0.2624 $0.2624 $0.2624 $0.2624 $0.2420 2024 30,000,000 23,000,000 29,293,000 59,546,638 $7,259,607 $5,565,698 $7,088,522 $14,409,506 $11,488,044 $18 809,028$11,488,044 $18,809,028 $0 $0 26 2025 29,402,497 64,517,503 93,920,000 82,293,000 114,333,037 $6,080,629 $1,601,740 $0 $1,020,584 $0 $0 $8,702,953 $0.1058 $0.0761 $0.2683 $0.2683 $0.2683 $0.2683 $0.2480 2025 30,000,000 23,000,000 29,293,000 61,333,037 $7 441,097 $5,704,841 $7 265,735 $15,212,836 $11,708,720 $19,655,820 $11,708,720 $19,655,820 $0 $0 22 2026 29,402,497 64517503 93,920,000 82,293,000 116,173,028 $6,293,451 $1,649,792 $0 $1,046,098 $0 $0 $8,989,342 $0.1092 $0.0774 $0.2743 $0.2743 $0.2743 $0.2743 $0.2542 2026 30,000,000 23,000,000 29,293,000 63,173,028 $7 627,124 $5 847,462$7,447,378 $16,060,951 $11,932,623 $20,546,196 $11,932,623 $20,546,196 $0 $0 28 2027 29,402,497 64,517,503 93,920,000 82,293,000 116,508,000 $6,513,722 $1,699,286 $0 $1,072,251 $0 $0 $9,285,259 $0.1128 $0.0797 $0.2805 $0.2805 $0.2805 $0.2805 $0.2606 2027 30,000,000 23,000,000 29,293,000 63,508,000 $7,817,802 $5,993 649 $7,633,563 $16,549,767 $12,159,755 $21,075,959 $12,159,755 $21,075,959 $0 $0 29 2028 29,402,497 64,517,503 93,920,000 82,293,000 116,508,000 $6,741,702 $1,750,265 $0 $1,099,057 $0 $0 $9,591,024 $0.1165 $0.0823 $0,2868 $0.2868 $0.2868 $0.2868 $0.2671 2028 30,000,000 23,000,000 29,293,000 63,508,000 $8,013,247 $6,143,490 $7,824 402 $16,963,511 $12,390,115 $21,529,224 $12,390,115 $21,529,224 $0 $0 30 2029 29,402,497 64517503 93,920,000 82,293,000 116,508,000 $6,977 662 $1,802,773 $0 $1,126,533 $0 $0 $9,906,968 $0.1204 $0.0850 $0,.2932 $0.2932 $0.2932 $0.2932 $0.2738 2029 30,000,000 23,000,000 29,293,000 63,508,000 $8,213,579 $6,297,077 $8,020,012 $17 387,598$12,623,700 $21,991,286 $12,623,700 $21,991,286 $0 $0 30-year AIDEA Profit CJ No Load Growth 3%Load Growth 300000000 uy N Se WOIg ssorD VACIV = ques3 uoTTIMzg+Supueuly 1AQZ Supueury 1AQZ queiZ uolp[iuiz$+%0T+ $3180)Suneidge paxiy %0T+ $3180)Suneiadg¢ paxty queid uorypIMzg+%G+ $3SODZunjeiado¢ paxiy %G+ S}SODSurjeiadQ pexty yuei3 vor g+ *BHOL+ SOD [eWAeD %01+ SOD [eydepMOHTTHUnA$+ %G+ SOD Jewry %WS+ SOD jeztde> quei3 uolTMiz$+TOFU YT IOJ[JUL ZVIYT quei3 uolypIulzg+AOZETJUL HT JOJE[JUL BEI%Z queid uolpuizg+aseD aseg(Z03e]JUT a1eI %G'°Z) ase aseg Makusin Geothermal Project ¢12/2/96 30-year AIDEA Return s -_ ESiS)i)Oas)issfe)a)xsfap]fF No Load Growth TOTENTEPERYthette ateds: PRES OLL ISSOSIS reat SORES +,ttettyetettet.PRESS IES ONESSatettestente SOLES SSIES OSS SSO RSOS ROSE ttt tettet testistiat+tietyttety+tetSEESIESOSSESSSPSSISISSPSL SECO LS +teetietet+,a titiettetet tesa SIS £5£3 rat ttettette tte. ntteta te tite,ettettretettyt.ttetiette ttettetietitetie.ttettetatietietcetiet:PIPES ISTE SLRS ERE POPES ILE SOS ISSR SE SOLS 4 dettertantattet tettes,+;ea:ROSEAES,fctheed dattattit te +tetterty thet: PEtatitytietee:RSSSES etettpetee testis tiete+: fate SetittietietestisSIStte SISSIEStee:etret,SONSSS t,ated teatsttettetty rettettette: ttettes ty ties ipatee: tte tettee tet trem ttettet eet, Metistatteateetettee ete tetty. t+:batte-te attest tet SSIES RISES, ASSESS SESS +; 00% tiattet ret tetcetmetiatatipttettetitetiet: +; Stee teetes tietlstletie$4404tt totheett etfetiette siete teeta tiettet teste ttetttie thet, piteetistestertasreeteatesteseeeseetctser tettetees } 4 J. | 4 + me t T T t + + +- PS Pd Psd se43c 3s 35 uMyay Joayey [eUII}UT VACIV yueiZ uoT[INUWUIZ$+%0T+ $1805Surze1adQ paxty %01+ S380)Suljeied(¢ paxiy queiZ uolpprurzg+%G+ $3802)Zunesiadg paxty %G+ $}S0-)Sunelado paxtyqueriaUOTT[IUIZ$+ %OT+ SOD [eydey%OL+ysor feyde>quesd uolypTurzg+ %S+ SOD Jedey %G+ SOD JendeD queiZ uol]pUzg+TOPETFUT YT JOPL|JUI ILL YT. quei3 uolT[IWz$+AOPETJUE BT TOPE[JUL PEI%Z queid vory]TUz$+asec aseg(207e]JUT 33e1 %S°T) PSED seg Makushin Geothermal Project «12/2/96 MP -HOV-04-96 MON 02:00 PH EXERAY INC,FAX NO,5105278134 P01 Exergy,Inc.ttos"ittFACSIMILE TRANSMITTAL DATE:November 4,1996 TO:R.LeResche D.Germer FAX:(907)586-8338 (907)269-3044 FROM:Hank Leibowitz (510)537-5881 |) SUBJECT:Makushin Power Sale Parametric PAGES:1 incl cover |suggest the following as input for the updated pro forma: Phase 1 price;$.09 and $.10 Phase 2 price;$.12,$.13,and $.14 Phase 1 lasts for 2 years Above prices are in $1996. Add $315k to O&M per R.W.Beck Add $5M to project cost to cover Interconnect ,ANEX fees and Exergy royalty. In light of last year's 30%increase in fuel price |suggest we should revisit the real rate inflator.|think 2%maybe too low. 22320 Foothill Boulevard ¢Suite 540 ¢Hayward,California «94541 Telephone 510/537-5881 ©Fax 510/537-8621 MAKUSHIN FINANCIAL MODEL Suggested Modifications and Sensitivities Development Costs Project cost -Existing model uses $74,836,000 -per the Power Engineering Study add $1,500,000 for interconnect to base case Wellfield development costs -existing model uses $15,270,000 -no change recommended Base case includes no development cost -add $500,000 Base case includes no owner's cost -add $1,500,000 Conduct sensitivity analyses of capital costs at +5%and +10% Fixed Operating Costs -$2,573,000/yr in 1999 Labor -$921,086 escalated at 3.5%in base case Subcontractors -$952,000 escalated at 3.5%in base case Below-ground wellfield maintenance -$250,000 escalated at 3.5%in base case Well makeovers -$450,000 escalated at 3.5%in base case Conduct sensitivity analyses of all fixed operating costs at +5%and +10% Other Fixed Costs -$250,000 Spares -$250,000 escalated at 3%-no change recommended Other operating costs -none in present model -include administrative ($135,000), insurance ($150,000),wellfield insurance ($30,000)in base case Base case includes no owner's annual administration costs add ($200,000) Royalty Change year 10-20 of model from 3%to 3.5% Bond Data Amortization period -30 years in base case -analyze at both 20 and 25 years Cost of Issuance -2%of bond proceeds -no change recommended Verify interest during construction cost -may be low Mak-Power MAKUSHIN GEOTHERMAL PROJECT -Case M-eco-var | ASFeRate Stablization Fund O%loadGr [3%LoadGr Bonds $102,484,620 Equity:$0 ROE 3%24.24%11999 Rates Heat Rate:|13 NPV ROE +18.41%'24.24%] Interest Rate 7.50%Plant i $74,836,000 RSF RETURN:}0.00%Stablized::$0.1220 1996$/gal:'$0.8500 NPV @ 3%Discount ($6,959,485)$42,265,378 Term 30 Wellfield:|$15,270,000 Max Neg.Eq.-0%:|($8,607,156)Unisea::$0.1220 96/kWh fuel :$0.0654 GROSS PROFIT:;($8,510,806)$84,109,120 Paymert ($8,677,499)Int.for Const:$1,689,488 RSF yr.10@3%!$-Westward::$0.1220 96 O&M::$0.0446 iEntry Rate Calc.Inflation:3.5%iEntry Rate Cald _Inflation:3.5% Inflation 3.50%Subtotal:}$91,795,488 LOC factor:}0.25 Net Output:14,000 96 Diesel cost:!$0.1100 1996 Rate 1997 1998/1999 Stabilized 1996 Rate 1997 1998 Debt Service $8,677,499 Reserve:$8,679,631 DSR factors:Plant Factor:!0.95 $0.1100 $0.1139 $0.1178 $0.1220 $0.1200 $0.1242 $0,1285 Interest Earnings (minus 50bp)7.00%Cost of Fin:$2,009,502 20 yr:[0.109 Line Loss:!-1000 $0.1050 $0.1087 $0.1125 $0.1164 $0.1300 $0.1346 $0.1393 IMakushin Growth Scenario 3.00%!Bond Size:|$102,484,620 30 yr:10.0927 Max Ann Engy 108,186,000 $0.1000 $0.1035 $0.1071 $0.1109 $0.1400 $0.1449 $0.1500 $0.0900 $0.0932 $0.0964 $0.0998 30.1500 $0.1553 $0.1607 1 2 3 4 5 6 7 8 9 10 "1 12 13 14 16 16 17 18 19 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 Processors 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mukushin Load:Growth 0.00%!82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Mukushin Load:Growth 3.00%:82,293,000 83,171,790 84,076,944 85,009,252 85,969,530 86,958,615 87,977,374 89,026,695 90,107,496 91,220,721 92,367,343 93,548,363 94,764,814 96,017,758 97,308,291 98,637,540 100,006,666 101,416,866 102,869,372 Costof Power Fixed Costs fixed operating costs 3.50%$2,573,000 $2,663,055 $2,756,262 $2,852,731 $2,952,577 $3,055,017 $3,162,874 $3,273,575 $3,388,150 $3,506,735 $3,629,471 $3,756,502 $3,887,980 $4,024,059 $4,164,901 $4,310,673 $4,461,546 $4,617,700 $4,779,320 other fixed costs 3.00%$250,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 $346,058 $356,440 $367,133 $378,147 $389,492 $401,177 $413,212 $425,608 Variable Costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 royalty $254,006 $258,199 $262,470 $266,823 $271,258 $275,777 $280,382 $285,075 $289,857 $294,730 $359,636 $365,709 $371,900 $378,209 $384,639 $391,194 $397,875 $404,685 $441,627 Capital Costs - debt service C $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677 499 $8,677,499 $8,677,499 $8,877,499 $8,677,499 $8,677,499 intorest eared "{3607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425)($607,425).($607,425)($607,425)($607,425) 'Total Cost of Makushin Power $11,147,080 |$11,248,828 |$11,354,032 :$11,462,810 $11,575,286 $11,691,587 |$11,811,844 $11,936,192 :$12,064,773 |$12,197,733 |$12,395,160 |$12,538,344 |$12,686,394 $12,839,476 |$12,997,762 $13,161,433 |$13,330,672!$13,505,671 $13,686,629 |Avg.Rav.Req.@ load growth:0.00%$0.1355 $0.1367 $0.1380 $0.1393 $0.1407 $0.1421 $0.1435 $0.1450 $0.1466 $0.1482 $0.1506 $0.1524 $0.1542 $0.1560 $0.1579 $0.1599 $0.1620 $0.1641 $0.1663 Avg.Rev.Req.@ toad growth:3.00%,$0.1355 $0.1352 $0.1350 $0.1348 $0.1346 $0.1345 $0.1343 $0.1341 $0.1339 $0.1337 $0,1342 $0.1340 $0.1339 $0.1337 $0.1336 30.1334 $0.1333 $0.1332 $0.1330 IMakushin Rates 'Bate Inflator Entry. Unisea 2.25%$0.0998 $0.1020 $0.1043 $0.1067 $0.1091 $0.1115 $0.1140 $0.1166 $0.1192 $0.1219 $0.1247 $0.1275 $0.1303 $0.1333 $0.1363 $0.1393 $0.1425 $0.1457 $0.1489 |Westward 2.25%$0.0998 $0.1020 $0.1043 $0.1067 $0.1091 $0.1115 $0.1140 $0.1166 $0.1192 $0.1219 $0.1247 $0.1275 $0.1303 $0.1333 $0.1363 $0.1393 $0.1425 $0.1457 $0.1489 City &Others -0%Load Growth:1.00%$0.1663 $0.1680 $0.1697 $0.1713 $0.1731 $0.1748 $0.1765 $0.1783 $0.1801 $0.1819 $0.1837 $0.1855 $0.1874 $0.1893 $0.1912 $0.1931 $0.1950 $0.1970 $0.1989 City &Others -3%Load Growth:1.00%$0.1663 $0.1680 $0.1697 $0.1713 $0.1731 $0.1748 $0.1765 $0.1783 $0.1801 $0.1819 $0.1837 $0.1855 $0.1874 $0.1893 $0.1912 $0.1931 $0.1950 $0.1970 $0.1989 STABILIZED RATE:2.75%30.1109 $0.1139 $0.1171 $0.1203 $0.1236 $0.1270 $0.1305 $0.1341 $0.1377 $0.1415 $0.1454 $0.1494 $0.1535 $0.1578 $0.1621 $0.1666 $0.1711 $0.1758 $0.1807 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 90,000,000 Westward 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &Others 9.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &Others 3.00%29,293,000 30,171,790 31,076,944 32,009,252 32,969,530 33,958,615 34,977,374 36,026,695 37,107,496 38,220,721 39,367,343 40,548,363 41,764,814 43,017,758 44,308,291 45,637,540 47,006,666 48,416,866 49,869,372 lUnisea $2,993,538 $3,060,893 $3,129,763 $3,200,183 $3,272,187 $3,345,811 $3,421,092 $3,498,066 $3,576,773 $3,657,250 $3,739,538 $3,823,678 $3,909,711 $3,997,679 $4,087,627 $4,179,598 $4,273,639 $4,369,796 $4,468,117 Westward $2,295,046 $2,346,685 $2,399,485 $2,453,473 $2,508,676 $2,565,122 $2,622,837 $2,681,851 $2,742,192 $2,803,892 $2,866,979 $2,931,486 $2,997,445 $3,064,887 $3,133,847 $3,204,359 $3,276,457 $3,350,177 $3,425,556 City &Others 0.00%$4,871,651 $4,920,367 $4,969,571 $5,019,267 $5,069,459 $5,120,154 $5,171,356 $5,223,069 $5,275,300 $5,328,053 $5,381,333 $5,435,147 $5,489,498 $5,544,393 $5,599,837 $5,655,835 $5,712,394 $5,769,518 $5,827,213 City &Others 3.00%$4,871,651 $5,067,978 $5,272,218 $5,484,688 $5,705,721 $5,935,662 $6,174,869 $6,423,716 $6,682,592 $6,951,900 $7,232,062 $7,523,514 $7,826,712 $8,142,128 $8,470,256 $8,811,607 $9,166,715 $9,536,134 $9,920,440 Retum to RSFund 0%load gr.0.00%($986,845)($920,883)($855,213)($789,888)($724,964)($660,500)($596,559)($533,206)($470,508)($408,538)($407,309)($348,033)($289,740)($232,516)($176,451)($121,640)($68,182){$16,180}$34,257 Retum to RSFund 3%joad gr.3.00%!($986,845)($773,272)($552,566){$324 ,466)($88,702)$155,007 $406,954 $667,441 $936,784 $1,215,310 $1,443,420 $1,740,334 $2,047,473 $2,365,219 $2,693,968 $3,034,132 $3,386,140 $3,750,436 $4,127,484 Retum to Equity 0%load gr.$0 ($986,845)($920,883){$855,213){$789,888)($724,964)($660,500)($596,559)($533,206)($470,508)($408,538)($407,309)($348,033)($289,740)($232,516)($176,451)($121,640)($68,182}{$16,180)$34,257 Retum to Equity 3%load gr.$0 ($986,845)($773,272)($552,566)($324,466)($88,702)$155,007 $406,954 $667,441 $936,784 $1,215,310 $1,443,420 $1,740,334 $2,047,473 $2,365,219 $2,693,968 $3,034,132 $3,386,140 $3,750,436 $4,127,484 RSF Balance 0%load gr.RSF Balance 0%|{$986,845)}($1,907,728)}($2,762,941):($3,552,829)($4,277,793)($4,938,293):($5,534,852)($6,068,058):($6,538,567)|($6,947,104)|($7,354,413);($7,702,447)($7,992,187)($8,224,703);($8,401,154)($8,522,794):($8,590,976):($8,607,156)|($8,572,899) RSF Balance 3%load gr.RSF Balance 3%|($986,845);-($1,760,117)|($2,312,683):($2,637,150)($2,725,851)($2,570,844):($2,163,890)($1,496,449)($559,665)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%:($986,845)!($1,907,728)|($2,762,941)!($3,552,829)($4,277,793)|($4,938,293);($5,534,852)!($6,068,058):($6,598,567)|($6,947,104):($7,354,413)_($7,702,447)|($7,992,187)($8,224,703)!($8,401,154)!($8,522,794).($8,590,976):($8,607,156)|($8,572,899) [Equity Balance 3%load or.3.00%($986,845)!($1,760,117)}($2,312,683)!__($2,637,150)($2,725,851)|($2,570,844 $2,163,890)|($1,496,449)($559,665)$655,645 $2,099,065 |$3,830,309 |$5,886,872 $8,252,091 |$10,946,059 |$13,980,191 |$17,366,331 |$21,116,767 |$25,244,251 Page 1 Mak-Power MAKUSHIN GEOTHERMAL PROJECT -Case 2 1999 Stabilized Rate Stabilization Fund Balances $0.1330 $0.1441 $0.1552 $500,000 $0.1663 het tebe he Abt tend:AeA bef 20 21 22 23 24 25 26 27 28 29 30 ($500,000) 2018 2019:2020 2021 2022 2023 2024 2025 "2026:2027 2028:{$1,500,000) 29,402,497:29,402,497;29,402,497 |29,402,497!20,402,497 |20,402,497:20,402,497}29,402,497 |29,402,497}29,402,497 |_29,402,497 a K64,517,503 |64,517,503;64,517,503]64,517,509!64,517,503 |64,517,503 64,517,503 |64,517,503 |64,517,503!64,517,503 |_64,517,503 ($2,500,000)nt93,920,000 |_93,920,000 |_93,920,000}93,920,000 93,920,000 |_93,920,000 _--93,920,000|_93,920,000 |93,920,000!93,920,000]_93,920,000 (83,500,000) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ($4,500,000)y [a oRse Balance 0%load gr.82,293,000 |82,203,000 |82,293,000 |82,293,000 |82,293,000 |82,293,000 |82,293,000,82,293,000 |82,293,000;82,293,000}82,293,000 (85,500,000)iN -O- -RSF Balance 3%load gr. 104,365,453 :105,906,416 |107,493,609 |108,186,000 |108,186,000 |108,186,000:108,186,000 |108,186,000 |108,186,000 {108,186,000}108,186,000 |($6,500,000)mh ($7,500,000) $4,946,596 |$5,119,727}$5,298,917 |$5,484,379}_$5,676,333 |$5,875,004 |$6,080,629 $6,203,451 |$6,519,722;$6,741,702 |_$6,977,662 ($8,500,000)hs . $438,377 $451,528 $465,074 $479,026 $493,397 $508,199 $523,444 $539,148 $555,322 $571,982 $589,141 ($9,500,000)|| ", Dp =_=a sd tS 2 -o wo a -oO wo |nedaSc=]So =_-Sand =Nw N N N$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 28238 §§eR &€8 8 8 BB $418,703 $709,861 $722,118 $734,613 $747,352 $760,340 $773,581 $787,082 $800,848 $814,884 $829,195 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 $8,677,499 ($607,425)|($607,425):($607,425)|($607,425)!($607,425)!($607,425),__($607,425);__($607,425)|($607,425)!($607,425)|($607,425) $13,873,750 |$14,351,190}$14,556,183 |$14,768,093 ;$14,987,156 |$15,213,617:$15,447,730:$15,689,756 |$15,939,967;$16,198,642 |$16,466,073 $0.1686 $0.1744 $0.1769 $0.1795 $0.1821 $0.1849 $0.1877 $0.1907 $0.1937 $0.1968 $0.2001 $0.1329 $0.1355 $0.1354 $0.1365 $0.1385 $0.1406 $0,1428 $0.1450 $0.1473 $0.1497 $0.1522 $0.1523 $0.1557 $0.1592 $0.1628 $0.1665 $0.1702 $0.1740 $0.1780 $0.1820 $0.1861 $0,1902 $0.1523 $0.1557 $0.1592 $0.1628 $0.1665,$0.1702 $0.1740 $0.1780 $0.1820 $0.1861 $0.1902 $0.2009 $0.2029 $0.2050 $0.2070 $0.2091 $0.2112 $0.2133 $0.2154 $0.2176 $0.2197 $0.2219 $0.2009 $0.2029 $0.2050 $0.2070 $0.2091 $0.2112 $0.2133 $0.2154 $0.2176 $0.2197 $0.2219 $0.1856 $0.1907 $0.1960 $0.2014 $0.2069 $0.2126 $0.2185 $0.2245 $0.2306 $0.2370 $0.2435, 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000.30,000,000 30,000,000 30,000,000 30,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 51,365,453 52,906,416 54,493,609 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 $4,568,649 $4,671,444 $4,776,551 $4,884,024 $4,993,914 $5,106,278 $5,221,169 $5,338,645 $5,458,765 $5,581,587 $5,707,172 $3,502,631 $3,581,440 $3,662,023 $3,744,418 $3,828,668 $3,914,813 $4,002,896 $4,092,961 $4,185,053 $4,279,217 $4,375,499 $5,885,485 $5,944,340 $6,003,783 $6,063,821 $6,124,459 $6,185,704 $6,247,561 $6,310,037 $6,373,137 $6,436,868 $6,501,237 $10,320,234 |$10,736,139 |$11,168,806 |$11,423,823 |$11,538,061 |$11,653,441 |$11,769,976 |$11,887,676 |$12,006,552!$12,126,618 |$12,247,884 $83,016 ($153,966)($113,826){$75,829)($40,114)($6,823)$23,896 $51,887 $76,988 $99,029 $117,835 $4,517,764 $4,637,833 $5,051,197 $5,284,172 $5,373,487 $5,460,915 $5,546,311 $5,629,526 $5,710,403 $5,788,779 $5,864,482 $83,016 ($153,966)($113,826)($75,829)($40,114)($6,823)$23,896 $51,887 $76,988 $99,029 $117,835 $4,517,764 $4,637,833 $5,051,197 $5,284,172 $5,373,487 $5,460,915 $5,546,311 $5,629,526 $5,710,403 $5,788,779 $5,864,482 ($8,489,883)($8,643,849)!($8,757,675)|($8,833,504)!($8,873,618)|($8,880,441):($8,856,545):_($8,804,658)|($8,727,670)!($8,628,641)|_($8,510,806) $o $o $0 $0 $o $o $o $o $o $o $o ($8,489,883),($8,649,849)i ($8,757,675);($8,893,504)!($8,873,618)!($8,680,441):($8,856,545)($8,804,658)|($8,727,670)!($8,628,641),($8,510,806) $29,762,015 |$34,399,848 |$39,451,045 |$44,735,217 |$50,108,704 |$55,569,619 |$61,118,930!$66,745.456 |$72,455,859 |$78,244,637 |$84,109,120 Page 2 |||| Makushin Project Case Summaries -Entry Rate &Rate Inflator Sensitivities (Assumes 0%Equity Participation) Case #|Makushin |1996Rate |1999 Entry Rate|Rate Inflator |1996 Rate |1999 Entry Rate |Rate Inflator|30-year Return]Gross ProfitLoadGrowth}City &Others|City &Others |City &Others|Processors|Processors Processors to Equity (30 years) m-eco-1s 3%$0.150 $0.1663 1.00%$0.090 $0.0998 2.25%24.24%|$84,109,120 m-eco-2S 3%$0.150 $0.1663 1.00%$0.090 $0.0998 2.50%25.74%$92,757,903 m-eCco-3S 3%$0.150 $0.1663 1.00%$0.090 $0.0998 2.75%27.23%]$101,833,175 m-eco-4s 3%$0.140 $0.1552 1.25%$0.090 $0.0998 2.75%19.63%$84,766,041 m-eco-5s 3%$0.140 $0.1552 1.50%$0.090 $0.0998 2.75%20.92%$95,027,186 m-eco-6s 3%$0.140 $0.1552 1.50%$0.090 $0.0998 2.75%22.18%;$105,809,690 m-eco-7s 3%$0.135 $0.1497 1.50%$0.090 $0.0998 2.75%19.22%}$96,524,564 m-eco-8s 3%$0.135 $0.1497 1.50%$0.090|”$0.0998 3.00%20.35%}$106,048,681 m-eco-9s 3%$0.135 $0.1497 1.50%$0.090 $0.0998 2.50%18.09%}$87,449,295 m-eco-10s 3%$0.130 $0.1441 1.50%$0.090 $0.0998 3.00%17.79%|$96,763,556 m-eco-1S 0%$0.150 $0.1663 1.00%$0.090 $0.0998 2.25%-15.41%-$8,510,806 m-eco-2s 0%$0.150 $0.1663 1.00%$0.090 $0.0998 2.50%0.10%$137,977 m-@C0-3S 0%$0.150 $0.1663 1.00%$0.090 $0.0998 2.75%5.60%$9,213,249 m-eco-4s 0%$0.140 $0.1552 1.00%$0.090 $0.0998 2.75%-0.91%-$1,679,222 m-eco-5s 0%$0.140 $0.1552 1.25%$0.090 $0.0998 2.75%1.94%$4,179,176 m-eco-6s 0%$0.140 $0.1552 1.50%$0.090 $0.0998 2.75%4.26%|$10,321,780 m-e@co-7S 0%$0.135 $0.1497 1.50%$0.090 $0.0998 2.75%1.82%$4,446,937 m-eco-8S 0%$0.135 $0.1497 1.50%$0.090 $0.0998 3.00%4.82%|$13,971,054 m-eco-9s 0%$0.135 $0.1497 1.50%$0.090 $0.0998 2.50%-2.44%| -$4,628,335 m-eco-10s 0%$0.130 $0.1441 1.50%$0.090 $0.0998 3.00%2.75%$8,026,211 Sob ser +,flew od Caner la fo.ot [t LC Brat,Ou Cp bee ifo Revised 6/12/96 Page 1 Prepared by David E.Germer ,DATE:Monda ne 10,1996 i |-VI O TO:MR.DAVE GERMER,:ae 208 e000 Gnas 0000 ecce cra DoT Fs SOO Sooo sa ae aaa EBD Aa SOR OnGS : AIDEA/Anchorage ::Dave --I may have found the . ::problem --as circled,I escalated907:269-3020 :|the processors at different rates:+than the "city &others,”'others' :|being every independent load ::other than Unisea and Westward. :?Give me acallwhenyou've:digested this,if it's digestible at al.PAGES:7 :}RL Bae er ee Ree Ree OO Oe OEE EEE Foes BERS Ee s EOE OTe COND BE 2a 2090 BTET STFS OSES OCDE I00S OCOD DOD EEE F SEOSBDTE OECD EEO FOES DODD EEE e DATO Roe Dena mea Rane EOE EAT et AED CDOT Ee FROM: LeResche &Co. "Bob bQes le &GC-C338 More -}, lWlOn*r wed v sate bodes 7ALPotoft MMalaskin Cot kerwal Propet:CASET¥r page 1 Bows BLU dad peu Eyuity:Ww KUE:bb91%1099 RATES;Heat Rat:13 Inte rest rate 7 SUR Plant:SAZ3_N00 [RSF RETURN ODO,Stabilized:'BD1 ibd 1996S/gal:'BBS NPV Qd.LowdGr,3%LawlGr.Term SU Wealltield:'$15270D00 RSF MAXO%:(610482977)Unisea:'B01 ied 96/kWh tuel 'B00054 NPV ROE U%lead er:299%Ht) Paynent CBB 77 499)IDC 6.689488 [RSFyr 103%:(i 236,177)Westwant:'Bi thd 96OM,D/A 'B0396 NPV ROE 3%nad gr:169%'po Inflation 35UR Subtotal:'$0L795d88 |IDC fartor:05 Net Outpat:1400 96 Diesel enst:80 1050 GROSSPROFTT:#8150 Dr6 RZ P9B ORB Debt Servire 'p77 a9 Reserve:'867931 |DSR tartors;Plant Factor:05 Interest Earnings (r minwS0bp)7 DUR}Gostot Fin:2 P09,5u2 20 yr:8.109 Line Loss:(1000)Rate Inflator:250% Makushin Growth srenann:FDU,Bond Size:SBI48490 30 yr:QU997 Max Ann Frog (08.186 000 Year 1 2 3 4 5 6 7 3 9 Ww 11 12 13 14 Energy reyuirenents 1993 2uug 2001 2002 2003 20U4 2005 2006 2007 2008 209 2010 2011 2012 Gty 29402497 29402497 29402497 29,402,497 29,400,497 29402497 29402497 2902497 29,402,497 29402497 29402497 29402497 29402497 29402497Pincessors6451750364517503645175036451750364517503645175036451750364517503645175036451750364517503645175036451750364517503Total93,920,000 93920000 9392000 93,920,000 93920000 93,920000 9392000 93920900 93,920,000 93,92000 93,920)00 9392000 93,920,000 93,520,000GrowthRateO.OUR DOU,000%ODUX OOO OUUS OLE ODOR ODOR Onu%0 DU OULU DDO,Ou, M-aLushin Load:Growth ODUX 82293000 82293000 8229300 82293000 82293000 82293000 82293000 8229300 82,293,000 82293000 82,293)00 82293900 8229300 82293000fothersLoad:Growth 3 DUR 82,293,000 83,17 1790 8475944 8509252 85,969,530 86958615 87977374 89,026,595 90,107,496 91220721 92,367,343 93548363 947643 14 96017758 SoestofPowerFixedcosts fixed operating costs 350%$2573,)00 B p63,D5 796282 P2PS2731 B2952 577 $355.90 $3162 $74 BPI 57 $3,388,150 135067 3p29,471 1375p SOV $3887 JR0 A p2d 09)other fixed costs 3 DOR $250 DUO BOoy 500 R625 $273,187 231377 2992 19 $2985 13 SOU?468 Bb pRB $35 193 BDI S3do N53 5356 Ad)'BH?133Variabkcosts fluid fees Qerta we 0 BI)wo Art)B:)Br)Bi]2 0 bi]''BO Bry)wOroyaltyPevw)-_7 BP A Bod 2 ed 180 $254 Lot 29)pd?Hrd AT 29721 $275,115 $2005 7 $28 20 $350 345 S57 350 $34 AW B7L 79Gapitalcosts debt service 38577 AWD 'Rp77 AW Bp7 7,49 (p77 Aw $3677 AD BP77 AW BB H77 AWD BpF?AW 'BBp77 AWD $8p77 AW WBp77 AD 'BB pF?499 '8677 AW $8577 AWinterestearsedCB5U745)(0?4:5)(BHU?44)(B5D7 475)(R507 45)CBU7 435)(iD?425)(807 425)(8507 495)CU?435)C07 435)(B07 425}(B50?45)CHU?435) TotalGostof Makushin Powe BILI32579 «=BIL 234904 BIL BAD 742 |B11450151 9611563275 «=Bi1p807d2 =S11 BO1182 «611926733 B1205553d =812.189232 §=812385809 «=B12529987 =-$12678994 =1283356AvgRev.Req.@ load growth 000%0 1353 $30 1365 $0 1378 1391 +80 1405 'pw1ai9 $0 1434 $0 1449 0.1465 14181 60.1505 $0 1523 'po iddt 0.1559 Avg Rev.Req.@ load growth:3 DUR 1353 901351 MW 1349 'pO 1347 0.1345 '0.1343 '80.1341 $0 1340 $0 1338 180 1336 BOLI4 1 §01339 'BO 1338 ')1337 Makushia Rates Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 209 2010 2011 2012 Unisea BOL Lb4 901193 W 1223 'BD 1254 'B)1285 01317 $0 1350 $0 1384 0 1418 'BO 1454 1490 1527 '60 1566 '60.1605 Westwanl Wile 801193 0 1223 'BO 1254 '1285 '1317 $0 1350 $0 1384 $0 1418 '1454 0.1490 '601527 'BO 1566 80.1605 Gty&Ottns--load gro BO 1164 0.1187 WOI2E1 'BO 1235 'BD 1260 0.1985 M1311 01337 $0 1364 1391 #01419 'BU 1447 $0 1476 80.1506 Gry&Others--load gro BO 1 lot $01 187 Wi2tl 18)1235 8)1260 'pO 1285 1311 $0 1337 $0 1364 01391 BAdi9 0 dd?'BO 1475 01506 STABILIZEDRATR 'BO 1 i564 $0 1187 WM iIFi1 '80 1205 0 1260 0.1285 A311 40 1337 $0 1364 )1391 f014d19 Oidd7 BO 1476 1506 shi ase 199 2000 2001 2002 2003 20 2005 2006 2007 2008 2009 2010 2011 2012 ea 3000000 30000900 300000 SO POR O00 30,000,000 3000000 300000 30,000)00 30pu0p00 30,000,000 30,DIDN0D 30,000)00 30,0000 300000Westwanl? 23p00p00 230000 23)00000 23,000,000 2300,000 2300000 23000900 23,000)00 23,000,000 23000000 23pu0p00 230000 2300900 23,000.00Gty&others 0 DU,:29,293,000 29,293 )00 29293,)00 2993000 29,293 000 29293000 29293000 29,293,000 29,293,000 2929300 2929300 2929300 29,293D00 29,293,000Gty&others 3 DUR \2929300 30,17 1790 31076944 3209252 32969530 33998615 34977374 36026595 37,107,496 33220721 39367343 40548363 4t764B 14 4317758MakushinRevenuesing2000200120022003200420052006200720082009201020112012 Unisea $3199 due 579773 7 Bi pH9 267 $750 999 B55 DA W951 3 41 050,184 151459 {84 755,295 $436 1/06 4470 p45 14.582,412 '4696 972 PMB1d3%West want p77 5A bw 74da |B13,L05 ®p334V #295558 $329 406 $3,105,141 $3,182,770 13262339 $3343 348 $d27 405 $35 13,182 pol pL BpI1 pwrGty&others 0 OUR $3.4 10,156.|9478359 /BiHd7 925 $3)18 BH $3p9 1282 $765 PX BO 840 389 BI?19 995 541 $4075 450 4 156,961 164 740,100 '4324 50 4411400Gty&others 3 DUS $32 10,156 $5327 10 763.9%95449 $4154 543 364 7B '458525 ABI?658 'HPs 1 Aw $6317 540 36.586 pus 5 B59 290 'Bb 166 276 {8 a78 200ReturntoRSFundO%load gr.ODOUR (61552408)8.432500)sbi 310444) CB1,186835)65106171)(B34 349)CB8U5 467)(B67 d 827)(i542,429)CH03 278)C8330 768)(6194 293)(66,107)$R3778 Returnto RSFund 3%load gr.3 DUR 51552408)05.327,949)061004375)C85 1207)(598,135)(B34 pes)(D231)$25 534 BBA $3332 il $1093 879 $1434 po7 '1785 27 $2 150 per Return to Equity0%lnader.000%ChLS52 408)C6.432300)651310444)(61,186 835)chilel A?ty CBIGd 349)CB805 467)(8574 £27)C4247)CHUB 273)C5330 73)C6194 250)(656,107)$83778 Returnto Equity3%loader.300%(51 552,408)08.327,949)261,094 375)C585 1207)¢5598,185)C334 pes)(0231)$25 $34 1533402 $8.3 311 51p93 379 $1434 B97 81785 267 $2,150 567 RSF Balaace 0%load gr.0 DUR (61552408)(8984708)064 298,159)(65481987)6543458)CASA BU?)CHB 283275)068 958,107)(500531)GO908 808)6610299576)(810423269)¢b10 489977)(610,406,199)RSF Balaare 3%load pr.3 DU,(31552408)CR BBO 357)(974792)(4825999)66 d94,195)005758853)C8 819084)«of 593,450)669988)«=84.236,177)03137293)661702 401)B)'Bw Equity Balance 0%load pr.0 DUK (61552408)6h 984708)0295,159)(BB AG1 987)0543458)Ch A77 207)CBB283275)068,958,102)cA S00531)9908808)ebID 29576)($104,869)610489977)¢hi0406,199)*Equity Balance 3%load gr.=3 DUB CBE S552408)CR 880357)(9747392)(225999)696424185)06758853)CH 219N8d)066 593,450)665,009988)(4236,177)03197298)661702 401)$8265 82233533 CASE [Vr page2 15 16 17 18 yD 20 21 22 23 24 25 26 27 23 29 30 29402497 29402497 29402497 29402497 29,402,497 29,402,497 29,4024 97 294)2497 29402497 29,402,497 29402497 29402497 29,402,497 29,402,497 29,403,497 29,402,497645175036451750364517503645175036451750364517503451750364517503645175036451750364517503645175036451740364517503645175036451750393,920D00 93,920,000 93920000 93920000 93520900 93920000 93,920000 93920)00 93,920,000 93920000 9392000 9392000 9322000 93920000 93,920,000 9392000ODOURODUEDDU,ODUR OvU,ODUR ODOR ODO%ODOUR ODUR ODD O0U%oD,ODOUR DOU,ODOUR 22293000 32293000 82293000 82293000 82293000 82293000 82293000 82293000 82293000 8229300 8229300 8229300 82293000 32293000 8229300 822930073082919BY3754010000h66=WEA HH I BWA 104356453106,906 416 10P3OP 1B,Be UE 108,136,000 108,1%000 108,100 1B HUN 108,100 108,185 200 108,18)LON SA 14 SUL 4310573 A d6 1545 417700 779 3D $346 59 HII IF PB $6484 379 p75 3B B75,Dd P80 529 {86293451 WSIS72 =BH 7A 1 70P 1B 977 pH2'637814?'$389,490 'BAD AY?413212 BSpw BB 37 'ASL SB 45 Pd BAY DB 0 J $508,119 16523 Add $555,148 BIL LI $539,141 wD Bi Bs)Br bt)Bo 'BO bit)Ht)O BU Et)bi)$0 BU 'BO B25 $386 £0)'BOM Sd Me Ay ADADS 4 Bft BF L781 17 DIF VwSyr WDA 4D $75 Ata 01532 17513 BB)._BD p45 .TT A eatery EN a , SBb77 AD B77 AB p77 AW 'Bpr7 Ay Bp77 AW Bbw?AD 'BB p77 AW 'Bb?AW '8p77 49 $3p77 AW $877 499 $8577 499 p77A 8 Pp77 aw Bp77 Aw SBp77 A(B07 45)CBD?495)(BoD?425)(8507 45)(R507 45)(RUF 425)(R607 495)CBU 495)CBD?435)C0?45)(8507 45)(BD?44)(B07 4%)(07,45)(B07 45)(B50?495) $12 992348 BIG,IS7 ds =$13.27 343 H19503d23 BLZHSH ABB BIBS 742 «HE B53 11 «GLAS PB2 «Bid 7APIF =814995152 $15 223732 BISA60P139 Gis 7NdP55 $15956732 Bloziv72d $1648752390157990.1599 ib l9 'BD dodt {BO 1663 'BO .1686 Oli 44 '01769 1795 1322 301850 $0 1879 '0 1908 {80.1939 '0.1971 $0 2004 '80 1335 90.1334 $0 1333 60.1331 '0 1330 'BL 1329 1355 01355 'BD 1366 'BO 1336 $01407 01429 01452 1475 'BO .1499 01524 2013 2014 2015 2016 2017 20t8 2019 20 202}222 23 aed 2029 223 27 2028 '80 1645 $0 1686 1728 WAZ1 'BO 1816 'B0.1861 $1908 1955 'pO 2004 '892054 $02 106 302158 92212 902268 'BO 2324 2382 'BO 1edS W 1686 BO 1728 $1771 BU 1816 B0.1861 $1908 1955 '80 2004 '02054 (02106 902158 902212 $0 2268 2324 02382 $0 1536 90.1567 1 1598 '$0 1630 $0 1663 'pl .1696 90.1730 wo1764 'BO 1800 'BO.1836 $01872 91910 901948 pO 1987 $0 2027 2067 $0 1536 $1567 1598 $0 1630 '$0 1663 BU 1696 01730 i764 'BO 1800 'BD .1836 pO1872 80.1910 0 1948 0.1987 $60 2027 80 2067 '60 1536 $1567 ty 1598 '$0 1630 0 1663 'BU .1696 $1730 pui76d '60 1800 180.1836 $0 1872 901910 01948 90.1987 2027 $0 2067 oxpoopv0 30,009U0 30po0p00 30,0000 3000000 30,000,000 30000000 300I0)00 30,000,000 3000000 30,000)00 3090000 30)00)00 30p00p00 30,0000 3DP0DN0023,000,000 2300900 23N00N00 230000 23,D00)00 23,000,000 23,000000 23030)00 23,000,000 23,000,900 23,000)00 2300000 2390000 2300000 23,000,000 23p)v0)00292930002929300029793,000 29293000 29,293,000 29293000 29,293D00 2923300 29,293,000 2929300 2929300 29293900 29293000 29293000 2929300 292930009443082914553754047DRGS6648416366496937251,365,453 52,9064 16 54,493 509 55,186,000 55,136,900 55,136)00 55,186)00 55,186,000 55,186,000 55,18100 55,186)00 934755 =$B PSBIH |BARA S78 HH B14 =HAAT PGR HSRS JN 15722905 «=PH P75 |HPAES =He PH |H316.91G ATI BB |PSH =BOPBIH =H IFS BF 146 963783313SOB778%W974 HPAP 8 BATEPA M2B0A72 9387 A BAA A7L «PAOD HUD «472K BAD B42 961 «=BEES IH PBH,13 |HP153 HAMS 723 BH A793$4d9962 =158969)«=BIAS |M7751 «=BTOSE |ETP PeF B12 «|HARB G72 N31 «85377472 «9 95498521 SF «=BUH GIG §©=-BE BIO 7 «=H O37 Ak «BHD UFBBN=J50d7 S19 298 BIOKIS «BVO72 «PBF ILBI 57,199 p15 27 «=$99BI WS «=-BIO,BO7BS =G1NZIBAVI--BIOSANP72 =GIV7SOB7S $10965B90 11185208 +$11,408912$225 35)$3685 $5 13,492 BHD DS $808,172 BOS?DUP BBM ABD 971621 120,196 =$1269.99 =1d21,155 =SL579572 «=$1727.15 «=BIBBAYT2 =PBF RII =BHAA 4B W5I1ZIS $9294 BZ 373 W777 AU B294W W702 MIO {VE WAI Wls029 95923310 $2695 5189 Wy7IAV BWpI-71d BPR we Sa7 7$25 B5U 5308 594 613,492 'BOA DS $808,172 197 UF BM AB 71621 $120,195 $1269.99 =SEAP1,155 «=BIS73572 =S1727,195 «=BIBBIOT2 «=PSF BdS =BHI.4B#591213 $9290 Bd 373 77740 |QIN MULE)|MINIs A181 S730 249 «=HPI ZID PHISH «=HHS V2 =YFIAW «=BPPPF Ald «=BPPOSBR BFA FSA 0B10,180849)CH 812256)CB 29R Zed)t8863B 738)87 BIO 5e6)087260)0848170)65550)(63956414)682 686,420)61,265,265)'BO Prt)30 ETH)60 wo BO pO wD '60 '60 'BD $0 $0 $0 'BO '$0 $0 0 0 'BO (510,180,849)CH 812256)C298 7nd)068638738)7 BINSK6)0372660)0B5048,170)A076 550)CH39564Ald)82686420)661205265)OB UB WSS SIG UOT ATS |H955 318 BASU DES'A785 346 EPPA FIR BLLNB87D 14 BIBS7O |BLYDA5972 wSTd7 261 WRESESH7 $3407 757 WOIPSSNUH BISP7BBIG B521d7 953 BRpOe775 BS ABBB27 $7IdOS3d1 «-BPIF51299 «PBF 29B983 CASE [V1 papp 3 Rate St.bilization Fond Bali neces (95%return) 31 puO po 5 GGG 8808 T902 '' '2008 T2608 t 1 Ly t i E8+9608 T 9608 ' i3m'$c08 +t $c0¢ '' i ' t 3; :¥a08 vane \ '"' ax\£702 T ee0e it HFErs|@20¢ T 208 '' 1&la ' + :: :#2 +1208 1202 '' .a ' + 0z02 a ml. ;0208 { H \! 'g10z o106 :: ' ' +sto :' *;+Boz g e :: \,}: = + e102 :: ,\::e10d [al iNt'etnz 3 y ue '' a oe bd + stoz i@i bt sto i] PN vite : +¥102 id oi\E y se ' ' : +8f gtoe - ' ' '>\t & + B108 '' :14! Br08 G :: t ' |: = 7 Thos ' ' 1 t a LLog : ' 1!{' ri 7T O08 :: :i#4 O108 z rf yofGt«on = + sone ' ! ' Soft :: :: ened 2 T 9002 iii a :: ::/: 7 2002 Ti A 9002 :/;9008 + 5002 ! ''' i7: 7aa 7 yo0e ia+POOz + sonz va 2008 + z002 ' ' !!!2002 + 1002 iti YG :|3 poor gy one ' $0008 + 6661 I tet} +Hii666% t + t t 1eaq, 58§ 8888 = = 2 2 2 a3R&aa ) E-) =) a Fe) 2@8&88& TATedae] Load growth -#-WAL Gost -3%0% Load growth ---Gty Gstof Power -O-Wh.Gost - Wholesale Rate Rate =Integrated Diesel --==Goritrart MulaskinGeotkannat Propet:Case XIIIr pape 1 Bums BIW Ad peu Kquaty:w RUE:2U9S%L229 RATES:Heat Rate:13 Int rst rate 7 SUR Plant:'674336000 [RSF RETURN 000%Stabilized:$01220 1996:/gal:BOBS PY URLoalGr,JhLoadGrTerm30)Welltield:=$15270D00 RSF MAX-O%:cb 590535)Unisea:(801220 06/kWh fuel '00654 NPV ROE O%load pr:OULU B74) Payment (BB 577 A909)IDC $1 p8948 [RSFyr 10-34%:661090482)Westwanl:'601220 96OM DA 'BODd46 NPV ROE 3%load pr:=2093%'sO Inflation 35UR Sub total:'691795488 WC tartor 05 Net Output:14J00 96 Dirsel cost:'80 1100 GROSS PROFIT:0 $B2917912 Debt Servire 'p77 49 Reeerve:679531 |DSR tartors:Plant Fastwor:015 Interest Earnings (r minusdUbp)7OUR,GstotFia..p09 5 20 yr:0.109 Line Loss:(1,000)Rate Inilator:187% Makushin Growth srenanin:SOUE Bond Size:SUAst190 30 yr:UOIDF Max Asn Eno 108,185 000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 Enryy_requirenents 1p9 2000 2001 2002 2003 2004 2005 2005 2007 2008 2009 2010 201) Gty 29402497 29402697 29402497 29,402,497 29,402,497 25,402497 29DAD2A97 29402497 29,402,497 29,402,497 29402497 29402497 29402497 Pineessors 64517503 645 [7503 64517503 64517503 64517503 64517503 64517503 64517503 645 17503 64517503 64517503 64517503 64517503Total939200093920)00 932000 93920000 93,920,000 93,920900 93,920,000 9392000 93920000 93,920,900 93,920000 93,920,000 93,920)00GrowthRateODUK00%ODO ODUR Ovc,ODOR 0 DUR 0 DUR,ODUA OvDUE ODE DDO%ODU, M Lyshin Load:Growth OoU%82,293,D00 82293000 82,293,000 8229300 82293000 82293000 8229300 82,293,000 8229300 8229300 82293 P00 8229300 82293000 fothers Lead:Growth 300%82293000 83,17 L790 8476944 85,009,952 85,969,530 809585 15 87977374 89026595 90,107,496 DL200721 92,307 343 93548363 947643 14 SostofPowerFixedcosts fixed operating costs 350%W573 NW 2 p53 05 $2755 262 $2 B52 731 $2952 577 $3)55 90 13,152 874 273 575 $3388 150 $350»7B $329,471 $3750 502 63837 930 other fixed costs 300%'6250 DOU $257 SW $26 2H $273,182 $281 377 $28)319 $298,513 BU?AB BbSB $325,193 BHI”B3db N58 $355,440 Variabk costs fluid fees B+]2 0 $0 Bit)'BD Bi bt)zit)'BO BT)'BO 'BO royalty #250 909 $255 DF $261 046 6 De?271592 $277 Dt $282 566 $288 216 $2939)LM Bw Ber NB $374 39 $3B1L B56Gapitaleosts debt service Bp77 AW $8 p77 AW 'BBP?77 Av)'p77 499 S677 AD 'BB p77?AW {$3577 A909 {BB 7?499 867749 $8 p77 AD B3p77 49 B77 409 $877 499intrestearnedC07AD)CBU?435)(RU?435)(R50?435)CR5D7 45)CBD?AD)(B07 425)(B507 425)(0745)(B07 45)CBD?45)(8607 495)CHD?425) Total Gyst of Makushin Poves BiLI43784 =611246557 GAL B52p07 =11462754 «=BLI575p21 «S119 Bad $1181 N26 =BLL 939333 «=--$12068397 =B12 702862 «=BIZ AN2553)«=$12547P0d =B12 H96351AvgRev.Req.@ Inad growth:00UL 'B)1354 1307 '01380 '1393 'BO 1407 Bidat {60 1436 O1d51 'BO Mb?180 1483 90.1507 0.1525 0.1543 Avg Rev.Reg.@ load growth:3 DUR 'BO 1354 90.1352 1350 'B)1348 'BO 1346 01345 {$0 1343 'BO 1341 0.339 BO 1338 901343 1341 '01340 Makush in Rates Entry 200 2001 200 2003 20d 2005 25 2007 2008 209 2010 2011 Unisra 1p)1220 12 80 1266 1289 $0 1313 0.1338 §0.1363 {0.1388 BO Mid 0 1440 01467 801495 0.1523 West ward '1220 W122 80 1266 0.1289 1313 0.1338 80.1363 01388 'OHM id 01440 1467 #01495 $0 1523 Gty &Others--load gro $0 1220 BON 901269 $0 1294 $60 1320 1347 01373 '0.1401 0 M29 801458 901487 01516 $0 1547 Gty &Others--load gro $0 1220 W134 $0 1269 $B)1294 BO 1320 'wO1347 01373 01401 380.1499 80.1458 1487 $1Sis 01547 STABILIZEDRATR:'0 1220 $0 1244 01269 18).1294 '$0 1320 '01347 '01373 '01401 SO MI9 '80.1458 9)1487 01516 80.1547 shi -kV Lp9 2000 2001 2 2003 2004 2005 2006 2007 2008 2009 2010 2011 ea 30,D0U,0U0 30,0uUL00 30,0000 30,pu0C0 30,000,000 30,000)00 30,000))00 30,000)00 30,008)00 s0p00)00 SDPOVPUO 30000000 supo0y00Westwand23,DUU00 23,00UP00 2300900 23,000,000 23,D00)U0 2300000 2300000 23,0000 23,008,000 2300000 2300900 230000 23N00)00Gty&others 000K 29293000 29,293)00 29,293,000 29,293)00 29293000 29293000 29,293)00 29,293,000 29293000 29,293,000 29293000 29293000 2929300Gty&othera 300%29,293,000 30,17 1790 31076944 32009952 32969530 33958615 34977374 36026 p95 37,107,496 38220721 39367343 40548363 417642 14 Makushin Revenues 19 200 200 2002 2003 2004 2005 2006 2002 2008 2009 2010 2011 Unisea WP sy $3727 0 796 p43 'B67 5 16 $39397 2 4.13256 4 88,172 Bt J6d 438 BM pd2 27 $4 321418 TA £02 088 'Bi ABd 23 4 567 972Westward182BUS056$2 B57 419 W917)62965 095 $3020 Ad6 $376 B49 13134 266 3192 774 $3 252374 $3313 DH 93374934 $3437 9B 63502,112Gty&others 0 OU,BIP72 544 $3 p43 5 'BIZ 16275 BWIL2D S3BR67 PF dd B77 '4 023 265 'BA 103 730 418585 $469 52L 4354 911 $142 N09 $4530 250Gty&others 3 DUR $3572 544 $3753 315 B43 2D B4142 700 4352 384 A572 p ld 'BA BOS Sep $547 N70 185 302452 $5570 756 $5 852 636 1 148780 186,459,908 Return to R5Fund 0%Inad pr.0 OUR 061,107,615)(61,018,075)(0928 3.30)C8338 431)C8748 435)C658 371)(6668 323)(6478 342)(5388490)C298 836)C870 620)(182797)(895,417) Return to RSFund 3%Inad gr.SOUR C51 LU7 p15)C5908 735)(670 1,973)C186 B83)(i263 PAI)(630,134)$2 12,401 hd 999 S715 $1p02 AUD 161 227,106 $1523,974 $1833 641 Return to Equity0%bad.OOUR (51,107 615)61018075)(8928 330)(838,431)C848 435)6658 371)C6568 323)(B78 342)(538840)C8298 835)CR7060)(182797)(595.4 17) Return to Equity3%loader,30U%CS1,107£15)C808 7%)(B70 1,973)(54.86 BRB)CH63 PP)(630,154)#2 12,401 Hdd 999 7 BAY $1)02 AU0 181227 ,106 $1523 974 $1B335,541 RSF Balaare 0%Inavl gr.ODOUR CBLA07 615)6,125,539)60540903)(63892450)ch edO877)0299243)Cm Be7 S71)Ch 345,913)05734403)C8 033259)Ch 303859)CB 86555)Ch 582073) RSF Balaw:e 3%Inad pr.3 DUR CB1107 615)CR Y16 359)CR 718342)(63205295)663,468 30d)|0 A839)069786038)CR B21039)=heN9FB82)=H POD ABZ)BF 'wO 'Oo Equity Balance O%hal pr.0 DUK 061107615)62125639)54020)(13892450)Ch 40877)05290243)Cb B67 S71)Ch 345913)734403)C67 N33239)CH 303859)CB ARG 55)CB?582,N73)'Equity Balance 3%bal pr.=3.UK C1107 615)C616 359)(718342)(63205295)663,48 30d)«=CB AY8 ASI).CI 286038)CR B21N39)(hk N92882)651090 482)BIB LB $1 p60 597 3894 2B 14 2012 29402497 64517503 93920000 Onur 8229300 96D 17,758 'bd Dod DDB0713 Bt] $38)495 'BB p77 A) CBU?AZ) $12850760 'BO 1562 $0 1338 2012 '1551 '60.1551 '0.1578 '0.1578 1578 2012 30,00000 2300000 2929300 43017758 2012BAp5324453567487462AG? 786780 068,563) $2,156,750 (88,563) $2,156,750 C8?590 $36) Bs) CB?590 936) 85 p50 )88 . 15 2013 29d02497 64517503 93920000 O DUR 22293p00 7308291 4164901 $373,147 BU BY 233 $8577 499(8507 AS) $130 10,406 W158! 01337 2013 '$01580 $0.1580 'O.1609 'BOL609 '0.1609 2013 Jpvopoo 230000 29,293)00 44308291 2013 $4740,107$3 p34 PR $47 138% $7 130,191 B77 p79$2993 974 B7679 $2993 974 C875 12,956) BO CB 512,956) $8 dd On 16 2014 29402497 64517503 93920)00 ODD, 8229300 98637 540 310573 $38)492 bi 0)Bb 29 $8677 499 (B07 425) $13,175 468 '16v1 '301336 2014 80.1619 '60.1610 'SO l6d1 1641 $0 1641 2014 30,000)v0 23000000 29293000 45637540 2014 4 928 592 3701921 'BA 808,174BA90B78 $1219 $2 pap Dad SiB219 $2 Ado Dad CH 349737) 'BO CH 349737) BID Y9V HBS wv 2015 29402497 64517503 93.920)N00 UDUR 8229300 100D056 356 fd dot Sip '401,177 Bt) MBS BB pr7 ACBD?435) $13 345131 $1622 101335 2U15 BD indo 1640 i674 wiped '1674 2015 30900900 230000 2929390047,006 p66 2015 MIB $377 10% A904 37BYB7UP22a7900$3213 545 $247 90013213505 Ch 101,776) ET) C87 101,776) 14204534 13 2016 29,402,497 6S 17503 93920000 ODUy 82,293,000 1014 1656 ply 700 i272 B 4) 21600 p77 49 (BU?45) $19522587 'BD i643 1333 2016 '0.1670 '0.1670 017038 60.1708 'BO 1708 2015 30,900,000 23p00000 29293000 484 16356 2016 4510549 sap dll #50244 268.265$331 BU7$3597 BF$331 BUF $3597 57 (85769 9b9) 'ww (769 9p9} $17302259 t9 2017 29302497 64517503 93220000 O0UR 82293000 102 BED 72 77930 M5 LLB 'w WD P32 By?AyCBD?495) $13 70S)35 401665 1332 2017 1701 W1701 w 1742 0.1742 w 1742 2017 3000000 23,0000 299300 49369372 2017 9%JD Pw $3913,190 $5 102,473$3 286618'bi id 650BOW7 'et id 55D WB IH (35 355 319) 'Oo (85 465 319)'Be LAU1P54 20 2018 29A02497 6451750393:9 20,900 ODUL 82293000 104,366 453 4946595AB377 'DD RBH 'Bp77,49) (B07 495) 613393620 90.1688 90.1331 2018 1733 1733 901777 1777 01777 2018 20puvpu0 2300000 29293000 5 1365453 201815,199 302$3986 ,177 5204 520 126,16151%381 44 18020 6 381 44 18020 (55 858,938) wD CH 258 933) B62 lpr 21 2019 29402497 64517503 9392000 ODUR 32293000 105,905,416 A1977BASLABB el 845676 R77 AW (B67 45) $14,387 05 1748 1353 2019 301765 $0 1765 1312 W1ist2 1812 2019 3090000 23P00)00 29293000 529064 16 2019 296 AM)HA Do0 588+5308 612{B)DB?945B73616557948B78616 A D5?48 (8 580 323) w 665 580 323) S30 777 N22 amp 29,402,497 64517503 93920000 our 82293000 10?493 9 452989 17 BB D7 0 POSe 'Bpr7 Ap (807,45) $14594p55 91773 '80 1358 200 01798 0 1798 0 1843 1348 $0 1343 2020 3000000 2300000 29,293,000 54493609 2020 $5395.20 136389 5414785 1007395 $351,808 $510,118 5351808 $5 P10,118 (952285 14) 'wD (05 228514)$35,737 14D 23 2 J 29402497 64517503 93920000 OuLs 82,293,000 108,13»00 Sod8dBA) MN BU 775 R01 BBpr7 ADCbo0?7 4) $14,309 781 'BD 1300 'p0 1369 2) BH)1332'BD 1332$0 1385 'BD 1385 'B0 1385 2) 30000000 23000000 29,793000 55,186,000 24 6496 YU HM?13 pod$6523 NH'610405 104 M340 530543 $423 4) 30543 (64 805,105) ' (&805,105) 'BA 1092572 24 22 29402497 64517503 93,920,000 ODD 82,293,000 108,195,000 $576 3B$13 397 BI) 913 BBS77 AD)CB507 45) 615031121 '80.1827 '60 1389 22 'B0 1866 'BO 1866 $60 1923 BO .1923 80 1923 2022 30,00)00 23,000,000 29,293 p00 55,186,000 225598501 $4292 261$5533 542 510613206 $43,283$5472 947$453 283$5472 947 (H4 311823) 'BO CH 311223) AbSo55 19 25 2023 29,402497 64517503 93920000 Ou0L 82293000108,185 000 B75 NOIBOLBLD 'po SBUP 14d {58 p77 499 CBO?435) $15260421 9.1854 Midi 2023 4901 1901 91562 1962 1562 2023 30,000000 23,)00000 2929300 5§,186000 2023 $573,112'4 372 386 $5746,213 510825470 S561 2B)15 p40 547 $561,289 45540547 (63750533) 'bh (63750533) $52206 poo 26 24 29402497 64517503 93920900 ODO, 82293000108196JUD 'PS pe $623 Add Bo $823 706 $8577 199(507 495) $15,497 435 1883 $01432 204 0.1937 $0.1937 2001 02001 '02001 204 30000900 23p00)00 29293000 55,186,900 204 15809 573 'A d54 N06 5 Bb 1,197 11041930 627 2BQ $5 808,125 {B27 282 $5 808,195 (83,123951) Ret) (63,12395 1) 95801491 27 2025 29402497 64517503 93920000 OUR 82293)00 108,136 200 293,451 $630,148 w B72 'p77 A” (307 495) $15742426 $01913 901455 2025 01973 '0.1973 $0204 1 so2041 204 t 2025 30,000)00 23900000 2929300 55,136,000 2025 6918023 537,151$6978 360 311262819 691,10759755e7 '91,10785975Ser (62,432,144) KH) (62 432,144) HI98VP57 28 205 29402497 64517503 9392000 ove, 82293000 108,188 000 S13 722 S32? Ei) BMS '$Bp77AD (3507 435) $1595 p66 'B.1944 '0.1479 2th 'BO 2009 '02009 'pO 2082 'pw 2082 '2082 26 3000 p00 23D0VN00 29,293)00 55,1386 )00 206 BHPl28 496 BMp21 py BPI?DY '1 1488976 S72 oldB6142753$752 pO4Bb1d2755 (81579540) 'b (61579540) {670.132510 29 2027 29402497 64517503 9392000 000K 82293000 103,185,000 6741702 9571982 BF 0] $873 678 $8677 A99(007 425) '$16,257 437 'pO 1976 'w)1503 2027 '02047 '02047 02123 02123 'pO 2123 2027 3000000 23000000 29293000 55,186900 2007 5141032$4 708 Ld 952 19 BB6 BLL 17 837 $8 11,605 5 309 557 $3:11,60505209,557 CB67 JD)Br) (8867 93) $6442 P67 Cane XTIIr papy 2 30 2028 29402497 64517503 93920900 DDUL 8229300 108,135,000 B977 PR 539,141 Bi) 'BB9L1 'BBp77 AD (R507 435) $16528)30 BO 2008 'BO 1528 2028 'BD 2085 'B0 2085 02166 0 2166 $02 166 208 3090000 23p0up00 2929300 55,186 )00 2081852555B 4796 P13 15 344 283 11952194 BBe7 95 od 75 B45BBUF9GB575,245 bl 'bu 'BD $829 17912 Gay Kr page 3 Rate Stabilization Fund Balances (95%return) taleeaeweneeeeenceeeeeceececeeoeeeeeneceeneeeeceeeeeeeeeeak,MalnshinLoad.oo... 300%oo -_-a5 ___s---8-- 51 PU0,0U0 CBI POU DUO)d=---=e ee ee ee eee ee eee ce000,000)4% i 1'Ss§>Sa4838B282#8 (Bi DOU MUD)4---------.eee (67 DOO DOU)4-----eae ne eee ee eee ee eee ee ne, CL eee 9702do0¢geneSe0eye0e8e06BNTee06066107810¢eL0¢ST08StOz¥L0¢BlogclogTE0Garogsone8008L0089002S008¥0022006600¢ailitaOnna666T Future Wholesale PowerRate Choices -Unalaska BO 2200 '2700 bo 2500 602300 602100 1 01300 BUOU00 820862089808Sane¥e0ese0dedi1207ne0g6102etnaEL2108St0¢cadidcozrateTL0¢OT0z6002800860052007sooz008conee002L008UuUG66GT -2-Mokushin Gontract Wholesale Rate.----lateprated Dies:Rate -RW Beck*©--ts-Present Gity Syste mPaujected Mak-Power MAKUSHIN GEOTHERMAL PROJECT -Case 1 J RSF=Rate Stabilization Fund 0%LoadGr,[3%LoadGr, Bonds $96,797,728 Equity:|($5,000,000)ROE 3%or:{16.23%1999 Rates Heat Rate:/13 NPV ROE 5.14%16.23% Interest Rate 7.50%Plant :|$74,836,000 RSF RETURN:|0.00%Stablized:/$0.1220 1996$/gal:|$0.8500 NPV @ 3%Discount $3,701,115 $47,203,201 Term 30 Welffieid:|$15,270,000 Max Neg.Eq.-0%:|($7,540,000)Unisea:|$0.1220 S6/AWh fuel:|$0.0654 GROSS PROFIT:|$13,838,099 $96,756,011 Payment ($8,195,983)Int.for Const:$1,595,738 RSF yr.10@3%|$°Westward:/$0.1220 96 O&M:|$0.0446 Inflation 3.50%Subtotal:|$86,701,738 IDE factor:/0.25 Net Output:14,000 96 Diesel cost:!$0.1100 Entry Rate Calc.Inflation:3.5% Debt Service $8,195,983 Reserve:$8,197,996 DSR factors:Plant Factor:|0.95 1996 Rate 4997 19981999 Stabilized Interest Eamings (minus 50bp)7.00%Cost of Fin:$1,897,995 20 yr:|0.109 Line Loss:|-1000 $0.1100 $0.1139 $0.1178 $0.1220 Makushin Growth Scenario 3.00%Bond Size:|$96,797,728 30 yr:|0.0927 Max Ann Engy:|108,186,000 $0.1050 $0.1087 $0.1425 $0.1164 Year 1 2 3 4 5 6 7 g 9 10 "1 12 13 14 15 16 7 18 19 Energy Requirements kWh 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2014 2012 2013 2014 2015 2016 2017) City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 Processors 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00 0.00 0.00 0.00 0.00 0,00 9.00 0.00 9.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mukushin Load:Growth 0.00%}82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Mukushin Load:Growth 3.00%|82,293,000 83,171,790 84,076,944 85,009,252 85,969,530 86,958,615 87,977,374 89,026,695 90,107,496 91,220,721 92,367,343 93,548,363 94,764,614 96,017,758 97,308,291 98,637,540 |100,006,666 |101,416,866 |102,869,372 CostofPower Fixed Costs fixed operating costs 3.50%!$2,573,000 $2,663,055 $2,756,262 $2,852,734 $2,952,577 $3,055,917 $3,162,874 $3,273,575 $3,388,150 $3,506,735 $3,629,471 $3,756,502 $3,887,980 $4,024 059 $4,164,901 $4,310,673 $4,461,546 $4,617,700 $4,779,320 other fixed costs 3.00%$250,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 $346,058 $356,440 $367,133 $378,147 $389,492 $401,177 $413,212 $425,608 Variable Costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Toyalty $250,909 $255,927 $261,046 $266,267 $271,592 $277,024 $282,565 $288,216 $293,980 $299,860 $367,028 $374,369 $381,856 $389,493 $397,283 $405,229 $413,334 $421,600 $430,032 Capital Costs debt service $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 interest eamed ($573,719)($573,719)($573,719)($573,719)($573,719)($573,719)($573,719)($573,719)($573,719)($573,719)($573,719){$573,719)($573,719)($573,719){$573,719)($573,719)($573,719)($573,719)($573,719) Total Cost of Makushin Power $10,696,174 $10,798,747 $10,904,797 $11,014,444 $11,127,811 $11,245,024 $11,366,216 $11,491,523 $11,621,087 $11,755,052 |$11,954,742 $12,099,194 $12,248,541 $12,402,950 $12,562,596 $12,727,658 $12,898,321 $13,074,777 $13,257,225 Avg.Rev.Req.@ load growth:0.00%$0.1300 $0.1312 $0.1325 $0.1338 $0.1352 $0.1366 $0.1381 $0.1396 $0.1412 $0.1428 $0.1453 $0.1470 $0.1488 $0.1507 $0.1527 $0.1547 $0.1567 $0.1589 $0.1611 Avg.Rev.Req.@ load growth:3.00%$0.1300 $0.1298 $0.1297 $0.1296 $0.1294 $0,.1293 $0,.1292 $0.1291 $0.1290 $0.1289 $0.1294 $0.1293 $0.1293 $0.1292 $0.1291 $0.1290 $0.1290 $0.1289 $0.1289 Makushin Rates {nflator Entry Unisea 2.00%$0.1220 $0.1244 $0.1269 $0,1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 Westward 2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.41320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0,1578 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 City &Others -Load Growth:0.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 City &Others -Load Growth:3.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0,1578 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 STABILIZED RATE:2.00%$0.1220 $0,1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 Makushin Sales -kWh 1999 2000 2001.2002 2903 2004 2005 2006 2007 2908 2009 2010 2011,2012 2013 2014 2045 2016 2017) Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 Westward 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &Others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &Others 3.00%29,293,000 30,171,790 31,076,944 32,009,252 32,969,530 33,958,615 34,977,374 36,026,695 37,107,496 38,220,721 39,367,343 40,548 363 41,764,814 43,017,758 44 308,291 45,637,540 47,006,666 48 416,866 49,869,372 Makushin Revenues |Unisea $3,658,769 $3,731,944 $3,806,583 $3,882,715 $3,960,369 $4,039,577 $4,120,368 $4,202,775 $4,286,831 $4,372,568 $4,460,019 $4,549,219 $4,640,204 $4,733,008 $4,827,668 $4,924,221 $5,022,706 $5,123,160 $5,225,623 Westward $2,805,056 $2,861,157 $2,918,380 $2,976,748 $3,036,283 $3,097,009 $3,158,949 $3,222,128 $3,286,570 $3,352,302 $3,419,348 $3,487,735 $3,557,490 $3,628,639 $3,701,212 $3,775,236 $3,850,741 $3,927,756 $4,006,314 City &Others 6.00%$3,572,544 $3,643,995 $3,716,875 $3,791,212 $3,867,037 $3,944,377 $4,023,265 $4,103,730 $4,185,805 $4,269,521 $4,354,911 $4,442,009 $4,530,850 $4,621,467 $4,713,896 $4,808,174 $4,904,337 $5,002,424 $5,102,473 City &Others 3.00%$3,572,544 $3,753,315 $3,943,232 $4,142,760 $4,352,384 $4,572,614 $4,803,989 $5,047,070 $5,302,452 $5,570,756 $5,852,636 $6,148 780 $6,459,908 $6,786,780 $7,130,191 $7,490,978 $7,870,022 $8,268,245 $8,686,618 Return te ReFund 0%load gr.0.00%{$659 804)($561,650)($462,959)($363,769)($264,122){$164,061)($63,634)$37,110 $138,119 $239,338 $279,536 $379,776 $480,002 $580,164 $680,180 $779,974 $879,464 $978,563 $1,077,182 Return to RSFund 3%load gr.3.00%($659,804)($452,330)($236,601)($12,221)$221,225 $464,176 $717,090 $980,450 $1,254,767 $1,540,573 $1,777,264 $2,086 540 $2,409,061 $2,745,476 $3,096,474 $3,462,778 $3,845,148 $4,244,384 $4,661,327 Retum to Equity 0%load gr.{5,000,000}($659,804)($561,650)($462,959)($363,769)($264,122)($164,061)($63,634)$37,110 $138,119 $239,338 $279,536 $379,770 $480,002 $580,164 $680,180 $779,974 $879,464 $978,563 $1,077,182 Return to Equity 3%load gr.(5,000,000)($659,804)($452,330)($236,601)($12,221)$221,225 $464,176 $717,090 $980,450 $1,254,767 $1,540,573 $1,777,264 $2,086 540 $2,409,064 $2,745,476 $3,096,474 $3,462,778 $3,845,148 $4,244,384 $4,661,327 RSF Balance 0%ioad gr.RSF Balance 0%|($659,804)|($1,221,455)| ($1,684,414)|($2,048,182)($2,312,304)| ($2,476,365)|($2,540,000)($2,502,889}| ($2,364,770}|_($2,125,432)|_($1,845,897)|($1,466,127)($986,125){$405,961}$0 $0 $0 $0 $0 RSF Balance 3%toad gr.RSF Balance 3%|($659,804}|($1,112,135)|_($1,348,736)|($1,360,957)($1,139,732)($675,556)$0 $0 $0 $0 $0 $o $0 $6 $0 $0 $0 $o $0 Equity Balance 0%load gr.0.00%|_(G5,659,804)|($6,221,455)|($6,684,414)!($7,048,182)($7,312,304)!($7,476,365)|($7,540,000)($7,502,889)|($7,364,770)|_($7,125,432)|_($6,845,897}|($6,466,127)|($5,986,125)($5,405,961)|($4,725,781)($3,945,807)|($3,066,344)|($2,087,781)|($1,010,599) Equity Balance 3%load gr.3.00%]($5.659.804}}($6,112,.135)}_($6.348,736)|($6,360,957)($6.139.732))_($5.675.556)|($4,958,466){$3.978,016)|_($2,723,249}|_($1,182,676)$594,585 $2,681,125 $5,090,186 $7,835,663 $10,932,137 $14,394 915 $18,240,063 $22.484.447 $27,145,774 Page 1 Mak-Power MAKUSHIN GEOTHERMAL PROJECT -Case 1 Rate Stabilization Fund Balances $500,000 20 24 22 23 24 25 26 2 28 23 30 $0 Lhd Lh 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 202829,402,497 |29,402,497 |29,402,497 |29,402,497 |29,402,497 |29,402,497 |29,402,497 |29,402,497 |29,402,497 |29,402,497 |_29,402,497 ($500,000)64,517,503 |64,517,503 |64,517,503 |64,517,503 |64,517,503 |64,517,503 |64,517,503 |64.517,503|64,517,503 |_64.517.503|64,517,503 K93,920,000 |93,920,000 |93,920,000 |93,920,000 |93,920,000 |93,920,000 |93,920,000 |93,920,000]93,920,000]93,920,000]93,920,000 $1,000 000 / 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ($1,000,000):{C=RSF Balance0%oadNeL-f&-RSF Balance 3%load gr82,293,000 |82,293,000 |82,293,000 |82,293,000 |62,293,000 |82,293,000 |62,293,000 |_82,293,000|62,293,000 |_42,293,000 |82,293,000 ($1,500,000)Y704,365,453 |105,906,416 |107,493,609 |108,186,000 |108,186,000 |108,186,000 |108,186,000 |108,186,000 |108,166,000 |108,186,000 |108,186,000 \F($2,000,000)i .($2,500,000)ee: $4,946,596 |$5,119,727 |$5298.17 |$5,484,379 |$5,676,333 |$5,875,004 |$6,080,629 |$6,293,451 |$6,513,722 |_$6,741,702 |_$6,977,662 $438,377 $451,528 $465,074 $479,026 $493,397 $508,199 $523,444 $539,148 $555,322 $571,982 $589,144 ($3,000,000)2 8 8 $8 8 ef E 2 eR BR'$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 @3:8s 8s 82 8 8 8 8 &@ 8&8 §$§&§8 $438,633 $745,676 $760,589 $775,801 $791,317 $807,144 $823,286 $839,752 $856,547 $873,678 $891,152 58,195,983 |$8,195,983 |$8,195,983 |$8,195,983 |$8,195,983 |$8,195,983 |$6,195,983 |$8,195,983 |$8,195,983 |$6,195,983 |_$8,195,983($573,719)|__($573,719)|__($573,719)|__($573,719)|__($573,719)|__($573,719)|__($573,719)|__($573,719|__($573,719)|__($573,719)|__($573,719) $13,445,870 |$13,939,195 |$14,146,845 |$14,361,471 $14,583,311 $14,812,611 $15,049,625 |$15,294,616 |$15,547,856 |$15,809.627 |$16,080,219 $0.1634 $0.1694 $0.1719 $0.1745 $0.1772 $0.1800 $0.1829 $0.1859 $0.1889 $0.1921 $0.1954 $0.1288 $0.1316 $0.1316 $0.1327 $0.1348 $0.1369 $0.1391 $0.1414 $0.1437 $0.1461 $0.1486 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 $0.1777 $0.1812 $0.1848 $0.1885 $0,1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 51,365,453 52,906,416 54,493,609 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 55,186,000 $5,330,136 $5,436,738 $5,545,473 $5,656,362 $5,769,510 $5,884,906 $6,002,598 $6,122,650 $6,245,103 $6,370,005 $6,497,405 $4,086 437 $4,168,166 $4,251,529 $4,336,560 $4,423,291 $4,511,757 $4,601,992 $4,694,032 $4,787,913 $4,883,671 $4,981,344 $5,204,522 $5,308,612 $5,414,785 $5,523,080 $5,633,542 $5,746,213 $5,861,137 $5,978,360 $6,097,927 $6,219,886 $6,344,283 $9,126,164 $9,587,945 |$10,073,095 {|$10,405,104 |$10,613,206 |$10,825,470 |$11,044,980 |$11,262,619 |$11,488,076 |$11,717,837 |$11,952,194 $1,175,225 $974,322 $1,064 942 $1,154,552 $1,243,032 $1,330,259 $1,416,103 $1,500,426 $1,583,087 $1,663,935 $1,742,813 $5,096 864 $5,253,654 $5,723,252 $6,036,576 $6,222,697 $6,409,517 $6,596,945 $6,784,886 $6,973,236 $7,161,886 $7,350,724 $1,175,225 $974,322 $1,064,942 $1,154,552 $1,243,032 $1,330,259 $1,446,103 $1,500,426 $1,583,087 $1,663,935 $1,742,813 $5,096,864 $5,253,654 $5,723,252 $6,036,576 $6,222,697 $6,409,517 $6,596,945 $6,784,886 $6,973,236 $7,161,886 $7,350,724 $o $0 $0 $0 $0 $0 $0 $o $0 $0 $0 $0 $0 $0 $0 $0 $o $0 $0 $0 $0 $0 $164 626 $1,136,948 $2,203,891 $3,358,443 $4,601,475 $5,931,735 $7,347,837 $8,848,264 |$10,431,351 |$12,095,285 |$13,838,099 $32,242,638 |$37,496.292 |$43.219.545 |$49,256,120 |$55.478.817 |$61,888,334 |$68.485.279 |$75,270.165 |$82,243,401 $89.405.287 |$96,756,011 Page 2 From the Teleport of:LeResche &Co. Date:Wednesday,March 13,1996 Number of Pages:3 To:MR.DAVE GERMER,AIDEA/Anchorage Mt Memo: Dents &Dave -- |I've made the following changes in the model,after discussions w/Dave & Exergy:¢Grown only the "City/Others”portion of the load (although Beck grew thewholething). Ah i ¢Capped total sales at the projected 108g Wh maximum annual energy for|Makushin (there was a mistake in the model previously). | | Fax Number:997 269-3020 ti *Added an additional $250K/inflated to annual O&M (spare parts). ||*Revised the projected wellfield development cost to $15,270K per Hank ||Leibowitz. |*Used zero return for the Rate Stabilization fund,to eliminate the previous1confusion.NOW THE RETURN ON EQUITY PORTION INCLUDES ANY | |SHOWS A NUMBER EVEN UNDER THE 'ZERO EQUITY'CASES.(This treats EARLY-YEAR LOSSES --the rate stabilization 'fund'--AND THEREFORE the RSF as "equity,”which it is.)!The second schedule puts preliminary sideboards around what we'll have to get the city /processors to agree to in terms of 1996-dollar rates and inflator.I'd try to start them at 11¢escalated at 2%,maybe. RL Revised Makushin Case Summaries -Sorted by Return on Investment Makushin Entry Rate Stabilized |RSF*Mirumum)RSF*Balance |30-yearReborn|Gross Profit LoadGrowth |1996Rate |(1999)Equity Rate Inflator Balance Year 10 to Equity (30 years) Case {lr 300%$0.1100 |$0.1220 2.00%($3,378,782)|($660,776)_21.81%|$88,321,710CaseXllir|3.00%=|$0.1100 |$0.1220 187%($3,498,439)2.($1,090,452)|20.93%oralCASEXIr300%|$0.1100 |$0.1220.1.75%($3,617,188)|($1,464,369)|20.15%$78,296,776 CASE [¥r 3.00%$O.1050 |$0.1164 2.50%($5,819,084)|($4,236,177)16.91%$87,298,983CaseIr3.00%$0.1100 |$0.1220 2.00%($1,360,957)16.23%$96,756,011 | ASE 300%|saioso |sures |31%|15%|97145916|Case XIIr_300%go.t100 |$0.1220|$5,000,000 1.75%($1,460,356)15.33%$86,731,078 CASE IlIr 300%$0.1050 |$0.1164 |$5,000,000 2.50%($3,185,134)14.13%$95,733,284 $0.1164 |$10,000,000$0.1050__ $0.1050 ($1,287,872)$104,167,586 | 124%$75,158,6bCaseXr300%$0.1164 |$5,000,000 ($3,563,223)|($1,323,167) CASE Vir 300%$0.1050 |$0.1164 |$10,000,000 200%($1,434,219)$0 11.42%$83,592,906 CASE VIlIr 300%$0.1050 |$0.1164 |$5,000,000 175%($3,806,414)|($2,090,233)11.40%$65,589,350 Case IXr 3.00%$0.1050 |$0.1164 |$10,000,000 1.75%($1,529,100)$0 10.67%$74,023,651 CASE Vr 000%$0.1050 |$0.1164 |$10,000,000 250%($12,104,087)|($952,607)545%$25,018,669 Case ke oo0%$0.1100 |$0.1220 |$5,000,000 2.00%(37,540,000)|2125459 ,Sid $13,838,099 CASE Ilr VO0%$0.1050 |$0.1164 |$5,000,000 250%($10,470,240)|($5,430,708)|456%$16,584,368 Case Ilr $0.1100 |$0.1220 $0 2.00%($6,839,348)|($6,603,533)3.03%$5,403,797 CASE IVr go.1us0 |$0.1164 $0 250%($10,489,977)|($9,908,808)(295%$8,150,066 Case XIIr $0.1220 |$5,000,000 1.75%($7,999,622)|($2,929,025)1.86%$3,313,165 CASEVI Case [Xr CASE Xlr CASE VIlIr $0.1050 $0.1050 $0.1 100 $0.1050 '|30.1164 $0.1164 $0.1164 $0.1220 $0.1164 $10,000,000 $5,000,000 $10,000,000 $0 $5,000,000 200%($12,738,059) ($12,507,333) ($13,284,764) ($8,440,044) ($14,479,486) (86,995,798 ($3,284,764 ($7,407,125 ($7,762,864 $25 177698) ' ) ) ) $4,443,990 _ ($3,990,312) ($5,125,265) ($4,621,136) 11.52%($13,559,566) *RSF =Rate Stabilization Fund ©LeResche &Co.3/12 Revised Makushin Case Summaries-Sorted by Return on Investment MAKU SHIN PROJECTIONS -Zero Equity Makushin Entry Rate Contract RSF*Minimum)RSF*Balance |30-yearReturn;Gross Profit Load Growth |1996 Rate)(1999)Equity {Rate Inflator Balance Year 10 to Equity (30 years) (City only) Case XIV 0.00%$0.1000 |$0.1109 $0 2.75%($16,084,354)|($14,084,306)0.00%$0 Case XIV 300%$0.1000 |$0.1109 $0 2.75%($9,154,138)|($8,681,800)12.73%$75,379,920 CASE VIIr 0.00%$0.1050 |$0.1164 $0 231%($11,716,719)|($10,515,805)0.00%$0 CASE VIIr 300%$0.1050 |$0.1164 $0 2.31%($6,089,005)|($4,843,173)15.89%$79,148,916 CASE IVr 0.00%$0.1050 |$0.1164 $0 2.50%($10,489,977)|($9,908,808)2.95%$8,150,066 CASE IVr 300%$0.1050 |$0.1164 $0 2.50%($5,819,084)|($4,236,177)16.91%$87,298,983 Case XIllr 0.00%$0.1100 |$0.1220 $0 187%($7,590,636)|($7,033,239)0.00%$0 Case XIlIr 300%$0.1100 |$0.1220 $0 187%($3,498,439)|($1,090,482)20.93%$82,917,912 Wada"salePriviML3/12/96@mov200703079LeEMesuicoewy.Revised Makushin Case Summaries 093%: Makushin Entry Rate Stabilized |RSF*Mirumumj{RSF*Balance |30-yearReton|Gross Profit-LoadGrowth,1996 Rate |(1999)Equity Rate Inflator Balance Year10 =-to Equity (30 years) Case Ilr VO0%©$0.1 100 $U.1220 $0 200%(3 6,839,848)($6,603,533)33%$5,403,797 300%|($3,378,782)|($660,776)281%$38,327 10 Case Ir 0.00%$0.1100 |$0.1220 |$5,000,000 200%($7,540,000){|($2,125,432)|5.14%$13,838,099 300%(3 1,360,957)30 !16.23%$96,756,011 CASE XIr V00%$O.1100 7 $0,1220 $0 1.75%($8,440,044)|($7,407,125)|-3.95 %($4,621,136) 3.00%(33,617,188)|($1464,369)20.15%$78,296,776 Case Xl Ir V.00%$0.1100 |$0.1220 |$5,000,000 1.75%(37,999,622)|($2,929,025)1.86%$3,813,165 ae 3.00%($1,460,356)$0 15.33%$86,731,078SB'000%036)|(87,033,239). 30%7 ($1,090,482)| CASE [Vr 000%$0.1050 $0.1164 $0 250%($10,489,977)($9,908,808)245%$8,150,066 300%(35,8 19,084)($4,236,177)16.91%$87,298,983 CASE IIIr 000%$0.1050 $0.1164 |$5,000,000 250%($10,470,240)($5,430,708)456%$16584,368 300%($3,185,134)$0 14.13%$95,733,284 CASE Vr 000%$0.1050 $0.1164 |$10,000,000 250%($12,104,087)($952,607)545%$25,018,669 300%($1,287,872)$0 12.83%$104,167,586 Cage Xr 000%/$0.1050 $0.1164 +$5,000,000 200%($12,507,333)($6,995,798)-L.76%($3,990,312) 300%|($3,563,223)|($1,323,167)124%,$75,158,605 CASE Vir 000%$0.1050 $0.1164 |$10,900,000 200%($12,738,059}($25 17,698)L.38%$4,443,490 3.00%G1A34,219)|30 11.42%$83,592,906CASEVIL000% CASE VIllri 0.00%$0.1050 |$0.1164 |$5,000,15%($14,479,486)|($7,762,804). -11.52%($13,559,566) 3.00%($3,806,414)|($2,090,233)11.40%$65,589,350 Case Xr 0.00%$0.1050 |$0.1164 |$10,000,000 1.75%($13,284,764)|($3,284,764)-2.17%($5,125,265) 3.00%($1,529,100)$0 10.61%$74,023,65 | Case Xl 000%.|-$0:1000.|$0.1109 $16,084,984)|(51084306)000%0ee200%(89,154,138)|G8,681,800)$75,379,920- *PSP =Rate Stabilization Fund ©LoResehe &Co.3/12/96 eral.akTeeth,AAEentoFitrNeeteFRelieaereeeaORAISetBOBRweSeeereimTet:PoEestereae":teenetaRNNenearareryenreBeeeneLemehSheeteeaaeapeereerPart Il:The Basic Concepts TIPYou're most likely to encounter nested functions using the IF function,either through formulas you create or worksheets you inherit from others.Formulas that use nested IF functions commonly have many levels of nested IF state- ments,making them complex,but they provide your worksheet with a great deal of decision-making,timesaving capabilities.For example,the formula =IF(A2=1,IFCA3=2,SuUM(A12:112),0),0) only totals the range Al2:112 if the cell A2 contains the value 1 and A3 contains the value 2.Otherwise,if A2 or A3 contain a value other than 1 and 2,respec- tively,the cell containing the IF formula returns 0. The best way to understand formulas comprised of nested functions is to work through their logic in the order Excel calculates them.You mentally walk through each level of nesting,from the lowest to the highest,whether the nesting is due to parentheses controlling the calculation or to the function's argument requirements.In the case of multiple expressions enclosed in paren- theses,begin with the expression enclosed by the greatest number of parenthe- ses and work your way out to the next set of parentheses.In multiple IF func- tions,step through your formula remembering the IF function syntax: IF(test_cond,do_this,else_this),while keeping in mind that each of these argu- ments can be another IF function. If nested parentheses are driving you up a wall,you may want to print the formula and use a pencil to connect sets of matching parentheses.This is the most efficient way we know of to determine parentheses-related problems. Using Worksheet Functions Excel has more than 100 worksheet functions,and although you may not have a need for them all,this section shows you how you can put the most frequently used functions to work.Note that the following sections don't correspond exactly to the function categories listed in your Excel documentation or in the function help screens but are presented in groups showing how you can view and use functions together. Calculating basic statistics Figure 11-5 shows several functions you can use to compute some basic but practical statistics from a range of values.These functions are listed in the following table. ae cnva.SA hee | CER che Rees ;'ee VE?<3 Makushin Case Summaries a Case III Case IX $0.1050 $0.1050 $0.1164 $5,000,000 $10,000,000 1.75% ($18,785,821) ($1,511,460) ($5,000,000) ($5,176,223) ($1,438,465) ($9,491,147) ($1,528,999) ($8,196,309) ($1,529,147) ($430,133) ($7,599,143) $0 ($2,787,639) 12,016,031) ($5,176,223 $0 ($7,062,817) $0 ($6,809,381) ($1,083,916) $0 *RSF =Rate Stabilization Fund These ai pot bore”See Co!rch tyes Makushin Entry Rate Stabilized Rate RSF*RSF*Balance |30-year Return|Gross Profit Load Growth |1996 Rate |(1999)Equity Inflator Minimum Year 10 to Equity (30 years) Case II $0.1100 $0.1220 $0 2.00%($7,749,868)($6,562,886)n/a $7,501,221 ($18,785,821) $34,299,271 ($5,000,000) $28,457, $31,058,186 $59,008,351 ($4,320,706) w $1,605,467 $18,202,235 $43,069,058 ©LeResche &Co.3/5/96 CONSTANTS TO ALL CASES: Plant &Reservoir Costs Plant Cost -1996$$ Field Development Costs -1996$$ Interest During Construction: Annual Operating Costs: Inflator to Annual Operating Costs: Wellfield Renewal &Replacement: Fluid Fees: Geothermal Lease: $74,836,000 $15,845,000 Gedburmey one Quarter average $2,500,0007?»144 4 3.50% Op tint Included in Annual Operating Costs None 2.5%gross receipts years 1-10 \3.0%gross receipts years 11-20 5.0%gross receipts thereafter Rate Stabilization Fund:From cash as required >Return to Rate Stabilization Fund:9.50% Financing Debt Service Reserve:One year's Debt Service Bond TIC:7.50% Bond term:30 years Cost of Finance:2%of bond principal amount Geothermal Plant Production Makushin Net Production: Makushin Plant Factor: Line Loss: Maximum Makushin Annual Energy: 14 mW 0.95 1 mW 108,186,000 kWh General Analysis Term of Analysis: General Inflation: 30 years 3.50% qe kcwes Hs Ca ZB wi yy,/,wow %/.dow Cr re Eb6fof% \1.0 ¥Makushin Geothermal Project:a CASEI page 1[Bonds $97,556,388 Equity:-($5,000,000)ROE:9.46%1999 RATES:Heat Rate:13 { Interest rate 7 50%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1220 1996$/gal:$0.91 i Discount Rate 0%LoadCrTerm30Wellfield:$15,845,000]RSF MAX.:($1,198,314)Unisea:$0.1220 96/kWh fuel 0.0700 NPV PROFIT /ROE:9.46%$0 $6,333,117 (Payment ($8,260,220)}IDC:-$1,700,269 RSF yr.10:$0 Westward:$0.1220 96 O&M $0.0400 GROSS PROFIT:n/a $75,292,384 $179,682,149 Inflation 3.50%'Subtotal:$87,381,269}IDC factor:0.25 Cemput:14,000 96 Diesel cost:$0.1100 \5DebtService$8,260,220 /Reserve:$8,262,248]DSR factors:int Factor:0.95 44 6%51s 9G 4'interest Earnings 7.00%Cost of Fin.:$1,912,870 20 yr.0.109 Line Loss:(1,000)| Makushin Growth scenario:3.00%Bond Size:$97,556,388 30 yr:0.0927 Max Ann Engy 108,186,000 {0 5 "\WO Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Energy requirements 199 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 City 29,402,497 29,402,497 29,402,497 29,402,497.29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 Processors 64517503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,090 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000MakushinLoad:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 -108,186,000 108,186,000 108,186,000 =:108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 $3,909,890 other fixed costs 0.00%4 (0g ovo $0 $0 $0 $0 bi $0 $0 $0 $0 $0 $0 $0 E21] Variable costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 80 $0 BH] royalty $250,909 $255,927 $261,046 $266,267 $271,592 $277,024 $282,565 $288,216 $293,980 $299,860 $367,028 $374,369 $381,856 $389,493 Capital costs debt service $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 interest earned ($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215) Total Cost of Makushin Power $10,432,914 J 0,525,432 $10,621,113 $10,720,066 $10,822,404 $10,928,244 $11,037,707 $11,150,918 $11,268,007 =$11,389,108 $11,575,530 $11,706,298 $11,841,532 $11,981,388 Avg Rev.Req.@ load growth:0.00%$0.1268 $0.1279 $0.1291 $0.1303 $0.1315 $0.1328 $0.1341 $0.1355 $0.1369 $0.1384 $0.1407 $0.1423 $0.1439 $0.1456 Avg Rev.Req.@ load growth:3.00%$0.1268 $0.1242 $0.1217 $0.1192 $0.1168 $0.1146 $0.1123 $0.1102 $0.1081 $0.1061 $0.1070 $0.1082 $0.1095 $0.1107 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unisea 2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 90.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 Westward 2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 City &Others --load growth:0.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 City &Others -load growth:3.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 STABILIZED RATE:2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 $0.1578 3 Makushin Sales -kWh 62 ah 49 °1999 2000 2001 2002 2003 2004 2008 2006 2007 2008 2009 2010 2011 2012 Unisea '30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &others /d 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000Diaely,£9 npg i oson 5 2 460,000 Unisea €$3,658,7 $3,731,944 $3,806,583 $3,882,715 $3,960,369 $4,039,577 $4,120,368 $4,202,775 $4,286,831 $4,372,568 $4,460,019 $4,549,219 $4,640,204 $4,733,008Westward$2,805,056 $2,861,157 $2,918,380 $2,976,748 $3,036,283 $3,097,009 $3,158,949 $3,222,128 $3,286,570 $3,352,302 $3,419,348 $3,487,735 $3,557,490 $3,628,639 City &others 0.00%$3,572,544 $3,643,995 $3,716,875 $3,791,212 $3,867,037 $3,944,377 $4,023,265 $4,103,730 $4,185,805 $4,269,521 $4,354,911 $4,442,009 $4,530,850 $4,621,467iy6GofCity&others 3.00%d $3,572,544 $3,951,108 $4,352,783 $4,478,065 $4,567,626 $4,658,978 $4,752,158 $4,847,201 $4,944,145 $5,043,028 $5,143,889 $5,246,766 $5,351,702 $5,458,736Fageyte- s Return to RSFund 0%load gr.0.00%46 ($396,545)($288,335)($179,274)($69,391)$41,285 $152,718 $264,874 $377,715 $491,199 $605,283 $658,748 $772,666 $887,010 $1,001,726 Return to RSFund 3%load gr.3.00%($396,545)$18,778 $456,634 $617,461 $741,874 $867,319 $993,768 $1,121,186 $1,249,539 $1,378,790 $1,447,726 $1,577,423 $1,707,863 $1,838,995 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $605,283 $658,748 $772,666 $887,010 $1,001,726 Return to Equity 3%load gr.3.00%$0 $0 $456,634 $617,461 $741,874 $867,319 $993,768 $1,121,186 $1,249,539 $1,378,790 $1,447,726 $1,577,423 $1,707,863 $1,838,995 RSF Balance 0%load gr.0.00%($396,545)($722,552)($970,468)($1,132,054)($1,198,314)(61,159,436)($1,004,708)($722,440)($299,873)$0 $0 $0 $0 $0 RSF Balance 3%load gr.3.00%($396,545)($415,439)$0 0 $0 $0 $0 $0 U $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $605,283 $1,264,031 $2,036,697 $2,923,707 $3,925,433 Equity Balance 3%load gr.3.00%$0 $0 $456,634 $1,074,095 $1,815,969 $2,683,288 $3,677,056 $4,798,242 $6,047,781 $7,426,571 $8,874,297 $10,451,719 $12,159,582 $13,998,577 CASE I page 2 15 16 17 18 19 20 21 2 23 a 25 26 27 2B 29 30 2013 2014 2015 2016 2012 2018 2019 2020 2a 2022 2023 2024 202 2026 2027 2028 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,50393,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 $4,046,736 $4,188,372 $4,334,965 $4,486,689 $4,643,723 $4,806,253 $4,974,472 $5,148,579 $5,328,779 $5,515,286 $5,708,321 $5,908,112 $6,114,896 $6,328,918 $6,550,430 _$6,779,695$0 Bo 9 $0 $0 $0 $0 bs $0 $0 $0 $0 90 $0 EU $0 $0 $0 9 $0 $0 $0 9 9 $0 $0 $0 $0 $0 $0 9 $0 $397,283 $405,229 $413,334 $421,600 $430,032 $438,633 $745,676 $760,589 $775,801 $791,317 $807,144 $823,286 $839,752 $856,547 $873,678 $891,152 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 =$8,260,220 +$8,260,220 $8,260,220 =$8,260,220 =$8,260,220 =$8,260,220 =$8,260,220 =$8,260,220 =$8,260,220 +=$8,260,220($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)(578,215)($578,215)($578,215)($578,215) $12,326,024 $12,275,606 $12,430,303 $12,590,294 =$12,755,760 $12,926,891 $13,402,152 $13,591,173 $13,786,585 $13,988,608 $14,197,469 $14,413403 $14,636,653 $14,867,469 $15,106,112 $15,352,851$0.1474 $0.1492 $0.1510 $0.1530 $0.1550 $0.1571 $0.1629 $0.1652 $0.1675 $0.1700 $0.1725 $0.1751 $0.1779 $0.1807 $0.1836 $0.1866 $0.1121 $0.1135 $0.1149 $0.1164 $0.1179 $0.1195 90.1239 $0.1256 $0.1274 $0.1293 $0.1312 $0.1332 $0.1353 $0.1374 $0.1396 90.1419 2013 2014 2015 2016 2012 2018 2019 2020 2021 2022 2023 2024 2025 2026 2022 2028$0.1609 $0.1641 $0.1674 $0.1708 $0.1742 $0.177 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 90.2166 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 $0.1609 90.1641 $0.1674 $0.1708 $0.1742 $0.17 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 90.2166$0.1609 90.1641 80.1674 $0.1708 $0.1742 $0.1777 90.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 90.2166 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 90.2166 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 ..30,000,000 30,000,000 30,000,000 30,000,000 30,000,00023,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 2,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,00029,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,00034,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 2013 2014 2015 2016 201Z 2018 2012 2020 2021 2022 202 2024 ma 2026 2022 2028 $4,827,668 $4,924,221 $5,022,706 $5,123,160 $5,225,623 $5,330,136 $5,436,738 $5,545,473 $5,656,382 $5,769,510 $5,884,900 $6,002,598 $6,122,650 $6,245,103 $6,370,005 $6,497,405$3,701,212 $3,775,236 $3,850,741 $3,927,756 $4,006,311 $4,086,437 $4,168,166 =$4,251,529 $4,336,560 $4,423,291 $4,511,757 $4,601,992 $4,694,032 $4,787,913 $4,883,671 $4,981,344 $4,713,896 $4,808,174 $4,904,337 $5,002,424 $5,102,473 $5,204,522 $5,308,612 $5,414,785 $5,523,080 $5,633,542 $5,746,213 $5,861,137 $5,978,360 $6,097,927 $6,219,886 $6,344,283$5,567,910 $5,679,269 $5,792,854 $5,908,711 $6,026,885 $6,147,423 $6,270,371 $6,395,779 $6,523,694 $6,654,168 $6,787,252 $6,922,997 $7,061,457 $7,202,686 $7,346,740 $7,493,674$1,116,752 $1,232,026 $1,347,481 $1,463,046 $1,578,647 $1,694,204 =$1,511,364 $1,620,614 $1,729 A38 $1,837,735 $1,945,401 $2,052,324 $2,158,389 $2,263,473 $2,367,449 $2,470,182$1,970,766 $2,103,121 $2,235,998 $2,369,333 $2,503,060 $2,637,105 $2,473,123 $2,601,609 $2,730,052 $2,858,362 $2,986,440 $3,114,184 $3,241,486 $3,368,232 $3,494,303 $3,619,573$1,116,752 $1,232,026 $1,347,481 $1,463,046 =$1,578,647 $1,694,204 =$1,511,364 -$1,620,614 $1,729,438 $1,837,735 $1,945,401 $2,052,324 $2,158,389 $2,263,473 $2,367,449 $2,470,182$1,970,766 $2,103,121 $2,235,998 $2,369,333 $2,503,060 $2,637,105 $2,473,123 $2,601,609 $2,730,052 $2,858,362 $2,986,440 $3,114,184 $3,241,486 $3,368,232 $3,494,303 $3,619,573 $0 $0 $0 $0 $0 $0 $0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 90 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,042,185 $6,274,211 $7,621,692 $9,084,738 $10,663,385 $12,357,589 $13,868,954 $15,489,568 $17,219,006 $19,056,742 $21,002,143 $23,054,467 $25,212,856 $27,476,329 $29,843,778 $32,313,960 $15,969,343 $18,072,464 $20,308,462 $22,677,795 $25,180,855 $27,817,960 $30,291,083 $32,892,692 $35,622,744 $38,481,106 $41,467,545 $44,581,729 $47,823,215 $51,191,447 $54,685,750 $58,305,323 CASEI page 3 Rate Stabilization Fund Balances (9.5%return) $1,000,000 5 $500,000 + q ($500,000)+ Rate of Growth -Makushin Load ($1,000,000)+------My-------------*-0.00%°3.00% ($1,500,000)- Makushin Costs of Power &Rates $0.2900 + $0.2400 +Cost/RateperkWhb33Ss$0.1400+ $0.0900 +$-+--+-_+-_++-_+-_+-_+++_+-_+-_+-_+-_+_++4++4 4 HH HH HH HH PPSREEERESSSSESRERRSRERSRRRRERSSRRRE --®--Contract Wholesale -O--WhL Cost -0%Load --®---Whl Cost -3%LoadRategrowthgrowth 4 Integrated Diesel --k--City Cost of Power Rate Case Ir page| 14 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,006 96 017,758 $4,024,059 $367,133 $0 $389,493 $8,195,983 ($573,719) $12,402,950 $0.1507 $0.1292 20l2 $0.1578 $0.1578 $0.1578 $0.1578 $0.1578 2012 30,000,000 23,000,000 29,293,000 43,017,758 2012 $4,733,008 $3,628,639 $4,621,467 $6,786,780 $580,164 $2,745,476 $580,164 $2,745,476 ($405,961) $0 ($5,405,961) 3 Rrviscck 6 We Krsehe 3/V3ldG.aol ebaur MakushinCeothermalProfect: Bonds $96,797,728 Equity:($5,000,000))ROE 3%id g:16.25%1999 RATES:Heat Rate:13 {Interest rate 750%Plant:$74,836,000 [RSF RETURN 0.00%Stabilized:$0.1220 1996 $/gal:$0.85 NPY Q%LoadGr 3%LoadGr,Term 30]Wellfield:$15,270,000 RSF MAX-0%:($7,540,000)Unisea:$0.1220 96/kWh fuel $0.0654 NPV ROE 0%load er:=5.14%$0 Payment ($8,195,983)IDC:$1,595,738 [RSE yrt0-3%:$6 Westward:$0.1220 %OM,D/A $0.0446 NPV ROE 3%load gr:==16.23%$0 Inflation 3.504%Subtotal:$86,701,738 |LDC factor:0.25 Net Output:14,600 96 Diesel cost:$0.1 100 GROSS PROFIT:$13,838,099 $96,756,011 Debt Service $8,195,983 Reserve:$8,197,996 |DSR factors:Plant Factor:0.95 Interest Eamings(r minusSObp)7.00%]Costof Fin:$1,897,995 20 yr:0.109 Line Less:(1,000)Rate Inflator:2.00% Makushin Growth scenario:3.00%]Bond Size:$96,797,728 30 yr:0.0927 MaxAnnEngy 108,166,000 Year 1 2 3 4 5 6 7 8 9 10 il 12 B Energyrequiremnents 199 47 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ply)2010 201 City 29,402,ag?29,402,497 29,402,497,29,402,497,29,402,497,29,402,497 29,402497 =.29,402,497 29,402,497 29,402,497 =2.402497 29,402497 29,402,497Processorsa,64517503 64517503 64517503 64,517,503 64,517,503 =64517503 =64517503 =64,517,503 =64,517,503 =64517503 9 64,517503 =64,517,503 64,517,503TotalRY93,920,000 =:93,920000 =93,920,000 93,920,000 =:93,920,000:93,920,000 §=93,920.000 93,920,000 =:93,920,000 §=93,920,000)92,920 000)93,920,000 =93,920,000GrowthRateRy0.00%0.00%0.00%000%0.00%0.00%0.00%000%0.00%0.00%0.00%0.00%0.00% &Rj Makushin Load:Growth 0.00%@ 82,293,000 82,293,000 82,293000 =2,293,000 §=-82,293,000 §=82,293,000 §2,293.000 82,295,000 =82,293,000 =82,293,000)82,293,000 §=-82,293,000 §=-_&2,293,000othersLoad:Growth 3.00%«SP 1 82,293,000 ,83,171,790 -84,076.944 =85,009,252 85,969,530 =86,958,615 =87,977.374 =89,026,695 =90,107,496 =91,220,721 =92,367343 -93,548.363 =94,764,814 CostofPowerFixedcosts fixed operating costs 3.50%$2,573,000 {$2,663,055 $2,756,262 $2,852,731 =$2,952,577 $3,055,917 $3,162,874 =$3,273573 =$3,388,150 =$3,506,735 =$3,629,47 =$3,756,502 --$3,887,980otherfixedcosts3.00%$250,000 |©$257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $526,193 $335,979 $346,058 §356,440 Variable casts ! fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 royalty $250,909 $253,927 $261 046 $266,267 $271,592 $277,024 $282,565 $288 216 $23,980 $299,860 $367,028 $374,369 $381 856Capitalcosts debt service $8,195,983 $8,195,983 $8,195,983 $8,195,983 =$8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 $8,195,983 =$8,195,983 $8,195,983interesteamed($573,719)($573,719)($573,719)($573,719)($573,719)($573,719)=($573,719)($573,719)($573,719)$573,719)($573,719)($573,719)($573,719) Total Cost of Makushin Power $10,696,174 $10,798,747 $10904,797 $13,014,444 $1L,127,81L $11,245,024 $11,366,216 =$11,491523 $11,621,087 $11,755,052 $11,954,742 $12,099,194 $12,248,541AvgRev.Req.@ load growth:0.00%$0.1 300 $0.1312 $0.1325 $).1338 $0.1352 $0.1366 $0.138)$0.1396 90.1412 $0.1428 $0.1453 $0.1470 $0.1488 Avg Rev.Reg.@ load growth:3.00%$0.1 300 $0.1298 $0.1297 $).12%$0.1294 $0.1293 $0.1292 $0.1291 $0.1290 $0.1.289 $0.1294 $0.1293 $0.4293 Makushin Rates Inflator Enty 2000 2004 2002 2003 2003 2005 2006 2007 2008 an 2010 20LL Unisea 2.00%$0.1 220.$0.1244 $0.1269 $).1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1 487 $0.1 516 $0.1547 Westward 2.00%$0.1220 $0.1244 $0.1269 $0.1293 $0.1320 $0.1347 $0.1373 $0.1401 90.1429 $0.1458 $0.1.487 $0.1516 $0.1547 City &Others -load growth:0.00%$0.1220 :$0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1.458 $0.1487 $0.1516 $0.1547 City&Others --load growth:3.00%$0.1 220.$0.1244 $0.1269 0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1438 $0.1487 $O.L516 $0.1547 STABILIZED RATE:2.00%$0.1220 $0.1244 $0.1 269 90.1294 $0.1320 $0.1347 $0.1 373 $0.1401 $0.1429 $0.1458 $0.1 487 $O.1516 $0.1547 i 'a 30,000,000:30,000,000 3,000,000 30,000,000 =30,000,000 +=30,000,000 30,000,000 30,000,000 +30,000,000 30,000,000 30,000,000 30,000,000 0,000,000 westward 23,000,000 )23,000,000 =23,000,000 +=23,000,000 +=23,000,000 +=23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 |29,293,000 29,293,000 =29,293,000 =29,293,000 =:29,293,000 29,293,000 =.29,293,000»29,293,000 §=.29.293,000 29,293,000)29,293,000 =29,293,000City&others 3.00%29,293,000 mI 30,171,790 31,076,944 32,009,252 32,969,530 =33,958,615 34,977.374 =%,026,695 =37,107,496 =38,220,721 39,367343 =40518363 41,764814 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 009 2010 2 Unisea $3.658,769 $3,731,944 $3.806,583 $3,832,715 $3,960,369 =$4,039577 $4,120,365 =$4,202,775 $4,286.831 =$4,572,568 =$4,460,019 =$4,549,219 $4,640,204Westward$2,805,056 $2,861,157 $2918,380 $2,976,748 $3,036,283 $3,097,009 $3,158,949 =$3,222,128 =$3,286570 =$3,552,302 =$3,419,H8 =$3,487,735 =$3,557,490City&others 000%$3,572,544 $3,643,995 $3,716,875 =$3,791,212 $3,867,057,$3,944,377,$4,023,265 =$4,103,730 «=$4,185,805 =$4,269,521 =$4,354,912 =$4,442,009 =$4,530,850City&others 3.00%$572,544 $3,753,315 $3,943,232 $4,142,760 =$.4,352384 =$4,572,614 =$4,803,989 =$5,047,070 =$5,302.452 =$5,570,756 =$5,852,636 §=--$6,148,780 =$6,459,908ReturntoRSFund0%load gr.0.00%($659,804)($561,650)($462,959)($363,769)($264,122)($164,061)($63,634)$37,110 $138,119 $239,338 $279,536 $379,770 $480,002 Retum to RSFund 3%load gr.3.00%($659,804)($452,330)=($236,601)($12,221)$221,225 $464,176 $717,090 $980,450 =$1,234,767 $1,540,573 =$1,777,261 =$2,086,540 =$2,409,061 Return to Equity 0%load gr.0.00%($659,804)($361,650)($462,959)($363,769)($264,122)($164,061)($63,634)$37,110 $138,119 $239,338 $279,536 $379,770 $480,002 Return to Equity 3%load gr.3.00%($659,804)($452,330)=($226,601)($12,221)$221,225 $464,176 $717,090 $980,450 =$1,234,767 $1,540,573 $1,777,261 $2,086,540 =$2,409,061 RSF Balance0%load gr.0.00%($659,804)($1,221,455)($1.684,414)($2,018,182)($2,312,304)($2,476,365)($2,540,000)($2,502,889)($2,364,770)($2,125,432)($1,845,897)(1.466,127)($986,125) RSE Balance 3%load gr.300%($659,804)($1,112,135)($1,348,736)($1,360,957)($1,139,732)($675,556)$0 $0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%($5,659,804)($6,221,455)(6.684.414)($7,018,182)($7,312,304)($7,476,365)($7,540,000)($7,502,889)($7,364,770)($7,125,432!($6,845,897)($6.466,127)($5,936,125) Equity Balance 3%load gr.3.00%(35,659,804)($6,112,135)($6 348,736)($6,360,957)($6,139,732)($5,675,556)($4,958,466)($3,978,016)($2,723,249)($1,182,676)$594,585 =$2,681,125 $5,090,186 $7,835,663 15 2013 29,402,497 6451 7,503 93,920,000 0.00% °%293,000 "308,291 $4,164,901 $378,147 $0 $397,283 $8,195,983 ($573,719) $12,562,596 $0.1527 $0.1291 2013 $0.1609 $0.1609 $0.1609 $0.1609 $0.1 609 2013 1,000,000 23,000,000 29,293,000 44,308,291 2013 $4,827,668 $3,701,212 $4,713,896 $7,130,191 $680,180 $3,096,474 $680,180 $3,096,474 $0 $0 ($4,725,781) $10,932,137 16 ald 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 98,637,540 $4,310,673 $389,492 $0 $405,229 $8,195,983 ($573,719) $12,727,658 $0.1547 $0.1290 214 $0.1645 $0.1641 $0.1641 $0.1641 $0.1641 214 30,000,000 23,000,900 29,293,000 45,637,540 2014 $4,924,221 $3,775,236 $4,808,174 $7,490,978 $779,974 $3,462,778 $779,974 $3,462,778 $0 $0 ($3,945,807) $14,394,915 7 205 29,402,497 64,517,503 93,920,060 0.00% 82,293,000 100,096,666 $4,461,546 $401,177 $0 $413,334 $8,195,983 ($573,719) $12,898,321 $0.1567 $0.1 290 2015 $0.1674 $0.1674 $0.1674 $0.1674 $0.1674 2015 30,000,000 23,000,000 29,293,000 47,006,666 2015 $5,022,706 $3,850,741 $4,904,337 $7870,022 $879,464 $3845,148 $879,464 $3,845,148 $0 $0 ($3,066,344) $18,240,063 18 2016 29,402,497 64,517,503 93,920,000 0.10% 82,293,000 101,416,866 $4,617,700 $413,212 $0 $421,600 $8,195,983 ($573,719) $13,074,777 $0.1589 $0.£289 2016 $0.1708 $0.1703 $0.1708 $0.1708 $0.1708 2016 30,000,000 23,000,000 29,293,000 48,416,866 2016 $5,123,160 $3,927,756 $5,002,424 $8,268,245 $978,563 $4,244 384 $978,563 $4,244,384 $0 $0 ($2,087,781) $22,484,447 64,517,503 93,920,000 0.00% 82,293,000 102,369,372 $4,779,320 $425,608 $0 $430,032 $8,195,983 ($573,719) $13,257,225 $0.1611 $0.1289 2017 $0.1742 $0.1742 $0.1742 $0.1742 $0.1742 2017 30,000,000 23,000,000 29,293,000 49,369,372 2017 $5,225,623 $4,006,311 $5,102,473 $8,686,618 $1,077,182 $4,661,327 $1,077,182 $4,661,327 $0 $0 ($1,010,599) $27,145,774 20 2018 29,402,497 64517,503 93,920,000 0.00% 82,293,000 104,365,453 $4,946,596 $438,377 $0 $436,633 $8,195,983 ($573,719) $13,445,870 $0.1634 90.1288 2018 90.1777 $0.1777 $0.1777 $0.1777 $0.1777 2018 30,000,000 23,000,000 29,293,000 51,365,453 2018 $5,330,136 $4,086 437 $5,204,522 $9,126,161 $1,175,225 $5,096 864$1,175,225 $5,096,864 $0 $0 $164,626 $32,242,638 al id 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 105,906,416 $5,119,727 $451,528 $0 $745,676 $8,193,983 ($573,719) $13,939,195 $0.1694 $0.1316 2019 $0.1812 $0.1812 $0.1812 $0.1812 $0.1612 2019 30,000,000 23,000,000 29,293,000 52,906,416 2019 $5,436,738 $4,168,166 $5,308,612 $9,387,945 $974,322 $5,253,654 $974,322 $5,253,654 $0 $0 $1,138,948 $37,496,292 22 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 107,493,609 $5,298,917 $465,074 $0 $760,589 $8,195,983 ($573,719) $14,146,845 $0.1 719 $0.1316 2020 $0.1848 $0.1848 $0.1848 $0.1848 $0.1848 2020 30,000,000 23,000,000 29,293,000 54,493,609 2020 $5,545,473 $4,251,529 $5,414,785 $10,073,095 $1,064,942 $5,723,252 $1,064,942 $5,723,252 $0 $0 $2,203,891 $43,219,545 B wt 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,1 86,000 $5,484,379 $479,026 $0 $775,801 $8,195,983 ($573,719) $14,361,471 $0.1745 $0.1327 2021 $0.1885 $).1885 $0.1885 90.1885 $0.1885 2021 30,000,000 23,000,000 29,293,000 §5,186,000 2021 $5,656,382 $4,336,560 $5,523,080 $10,405,104 $1,154552 $6,036,576 $1,154,552 $6,036,576 $0 $0 $3,358,443 $49,256,1 20 24 2922 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,676,333 $493,397 $0 $791,317 $8,195,983 ($573,719) $11,583,311 90.1772 90.1348 2022 90.1923 $0.1 92390.1923 $0.1923 $0.1923 2022 30,000,000 23,000,000 29,293,000 35,186,000 2022 $3,769,510 $4,423,291 $5,633,542 $10,613,206 $1,243,032 $6,222,697 $1,243,032 $6,222,697 $0 $0 $4,601,475 $53,478,817 3 23 29,402,497 64,517,303 93,920,000 0.00% $2,293,000 108,186,000 $5,875,004 $508,199 $0 $807,144 $8,195,983 ($573,719) $14,812,611 $0.1 800 $0.1369 2023 $0.1%2 $0.1%2 $0.1962 $0.1962 $0.1962 2023 30,000,000 23,000,000 29,293,000 55,186,000 2023 $5,388 4,900 $4,511,757 $5,746,213 $10,825,470 $1,330,259 $6,409,517 $1,330,259 $6,409,517 $0 $0 $5,931,735 $61,883,334 26 202: 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,080,629 $523,444 $0 $823,286 $8,195,983 ($573,719) $15,049,625 $0.1 829 $0.1391 2024 $0.2001 $0.2001 $0.2001 $6.2001 $0.2001 2024 30,000,000 23,000.000 29,293,000 55,186,000 2024 $6,002,598 $4,601,992 $5,861,137 $11,041,980 $1,416,103 $6,596,945 $1,416,103 $6,596,945 $0 $0 $7,347,837 $68,485,279 27 2025 29,402,497 64,517,503 93,920,000 000% 82,293,000 108,186,000 $6,293,ASL$539,148 $9 $839,752 $8,195,983 ($573,719) $15,294,616 $0.1859 $0.1414 2025 $0.2041 $0.2041 $0.2041 $0.2011 $0.2041 2029 30,000,000 23,000,000 29,293,000 55,186,000 2025 $6,122,650 $4,694,032 $5,978,360 $11,262,819 $1,500,426 $6,784,886 $1,500,426 $6,784,886 $0 $0 $8,848,264 $75,270,165 28 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,513,722 $555,322 $0 $856,547 $8,195,983 ($573,719) $15,597,856 $0.1889 $0.1437 2026 90.2062 $0.2062 $0.2062 $0.2052 $0.2082 2026 30,000,000 23,000,000 29,293,000 55,186,000 20.26 $6,245,103 $4,787,913 $6,097,927 $11,488,076 $1,583,087 $6,973,236 $1,583,067 $6,973,236 $0 $0 $10,431,351 $82,243,401 29 2027 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,166,000 $6,741,702 $571,982 $0 $873,678 $8,195,983 ($573,719) $15,809,627 $0.92] $0.1 461 2027 $0.2123 $0.2123 $0.2123 $0.2123 $0.2123 2027 30,000,000 23,000,000 29,293,000 55,186,000 2027 $6,370,005 $4,883,671 $6,219,836 $11,717,837 $1,663,935 $7,161,886 $1,663,935 $7,161,886 $0 $0 $12,095,285 $89,105,287 Case Ir page2 wa 20.28 29,40 2,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,977,662 $589,141 $0 $891,152 $8,195,983 ($573,719) $16,080,219 $0.1954 $0.1486 2028 $0.2166 $0.2166 $0.2166 $0.2166 $0.2166 2028 30,090,000 23,000,000 29,293,000 55,136,000 08 $6,597,405 $4,981,344 $6,344,283 $11,952,194 $1,742,813 $7,350,724 $1,742,813 $7,350,724 $0 $0 $13,833,099 $96,756,011 w foe & Makushin Geothermal Project:CASE IV page 1[Bonds 103,138,613 Equity:$0 ROE:779%1999 RATES:Heat Rate:13 terest rate 750%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 Discount Rate 0%LoadGr,3%LoadGrTerm30)Wellfield:$15,845,000 [RSF MAX-0%:($21,092,307)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT /ROE:7.79%$0 $7,098,313 Payment ($8,732,874)IDC:-$1,700,269 |RSF yr10-3%:($3,805,386)Westward:$0.1164 96 O&M.$0.0350 GROSS PROFIT:$0 $43,027,267 inflation 3.50%Subtotal:$92,381,269 IDC factor:0.25 Net Output:14,000 96 Diesel cost:$0.1050 Debt Service $8,732,874 Reserve:$8,735,018 |DSR factors:Plant Factor:0.95 [Interest Earnings 7.00%Cost of Fin:$2,022,326 20 yr:0.109 Line Loss:(1,000)Rate Inflator:2.50% [Makushin Growth scenario:3.00%Bond Size:$103,138,613 30 yr 0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 n 12 13 4 Energy requirements 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 209 2010 2011 2012City29,402,497 29,402,497 29,402,497:29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 +93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000GrowthRate0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000MakushinLoad:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 =:108,186,000 =108,186,000 =108,186,000 =:108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 -$3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 $3,909,890otherfixedcosts0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 80 $0 $0 royalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 $371,789 Capital costs debt service $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874interestearned($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301) Total Cost of Makushin Power $10,861,077 $10,953,367 $11,048,815 $11,147,531 $11,249,627 $11,355,220 $11,464,432 $11,577,386 $11,694,213 $11,815,046 $11,998,415 $12,128,849 $12,263,743 $12,403,252 Avg Rev.Req.@ load growth:0.00%$0.1320 $0.1331 $0.1343 $0.1355 $0.1367 $0.1380 $0.1393 $0,1407 $0.1421 $0.1436 $0.1458 $0.1474 $0.1490 $0.1507 Avg Rev.Req.@ load growth:3.00%$0.1320 $0.1292 $0.1266 $0.1240 $0.1215 $0.1190 $0.1167 $0.1144 $0.1122 $0.1100 $0.1109 $0.1121 $0.1134 $0.1146 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Unisea250%$0.1164 $0.1193 $0.1223 $0.1254 $0.1285 $0.1317 $0.1350 $0.1384 $0.1418 $0.1454 $0.1490 $0.1527 $0.1566 $0.1605 Westward 250%$0.1164 $0.1193 $0.1223 $0.1254 $0.1285 $0.1317 $0.1350 $0.1384 $0.1418 $0.1454 $0.1490 $0.1527 $0.1566 $0.1605 City &Others-load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 90.1419 $0.1447 $0.1476 $0.1506 City &Others -load growth:3.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 90.1419 $0.1447 $0.1476 90.1506 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 Makushin Sales -kWh 1999 2000 2007,2002 2004 2005 2006 2007 2008 2009 2010 2011 2012Unisea30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000City&others 0.00%29,293,000 29,293,000 29,293,000"29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000City&others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2008 2006 202 2008 2009 2010 2011 2012Unisea$3,492,461 $3,579,773 $3,669,267 $3,760,999 $3,855,024 $3,951,399 $4,050,184 $4,151,439 $4,255,225 $4,361,606 $4,470,646 $4,582,412 $4,696,972 $4,814,396Westward$2,677,554 $2,744,493 $2,813,105 $2,883,432 $2,955,518 $3,029,406 $3,105,141 $3,182,770 $3,262,339 $3,343,898 $3,427,495 $3,513,182 $3,601,012 $3,691,037 City &others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 $4,411,400 City &others 3.00%$3,410,156 $3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442 $5,210,611ReturntoRSFund0%load gr.0.00%($1,280,906)($1,150,743)($1,018,517)($884,215)($747,823)($609,327)($468,717)($325,980)($181,108)($34,091)$56,687 $206,845 $359,143 $513,582 Return to RSFund 3%load gr.3.00%($1,280,906)($857,590)($411,514)($228,584)($79,079)$72,792 $227,045 $383,697 $542,763 $704,257 $809,801 $975,022 $1,142,683 $1,312,793 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 90 $0 $0 90 EV $0 90 $0 $0 $0 $0 U RSF Balance 0%load gr.0.00%($1,280,906)($2,553,335)($3,814,420)($5,061,005)($6,289,624)($7,496,465)($8,677,346)($9,827,674)($10,942,411)(612,016,031)($13,100,867)($14,138,604)($15,122,629)($16,045,697) RSF Balance 3%load gr.3.00%($1,280,906)($2,260,182)($2,886,414)($3,389,207)($3,790,260)(64,077,543)($4,237,865)($4,256,765)($4,118,395)($3,805,386)($3,357,096)($2,700,998)($1,814,910)($674,533) Equity Balance 0%load gr.0.00%90 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $379,225 $8,732,874 ($611,301) $12,547,534 $0.1525 $0.1160 2013 $0.1645 $0.1645 $0.1536 $0.1536 $0.1536 2013 30,000,000 23,000,000 29,293,000 34,600,000 2013 $4,934,756 $3,783,313 $4,499,628 $5,314,824 $670,164 $1,485,359 $0 $1,485,359 ($16,899,875) $0 $0 $1,485,359 16 2014 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $0 $0 $386,809 $8,732,874 ($611,301) $12,696,754 $0.1543 $0.1174 2014 $0.1686 $0.1686 $5,058,125 $3,877,896 $4,589,620 $5,421,120 $828,888 $1,660,387 $0 $1,660,387 ($17,676,475) 9 90 $3,145,747 17 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,334,965 $394,546 $8,732,874 ($611,301) $12,851,083 $0.1562 $0.1188 2015 $0.1728 $0.1728 $0.1598 90.1598 $0.1598 2012 30,000,000 23,000,000 29,293,000 34,600,000 2013 $5,184,578 $3,974,843 $4,681,413 $5,529,542 $989,751 $1,837,881 90 $1,837,881 ($18,365,989) $0 80 $4,983,627 18 2016 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,486,689 $402,437 $8,732,874 ($611,301) $13,010,698 $0.1581 $0.1203 2016 $0.1771 $0.1771 $0.1630 $0.1630 $0.1630 2016 30,000,000 23,000,000 29,293,000 34,600,000 2016 $5,314,193 $4,074,215 $4,775,041 $5,640,133 $1,152,751 $2,017,843 $0 $2,017,843 ($18,958,007) $0 $0 $7,001,470 19 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,643,723 $410,485 $8,732,874 ($611,301) $13,175,781 $0.1601 $0.1218 2017 $0.1816 $0.1816 $0.1663 $0.1663 $0.1663 2012 30,000,000 23,000,000 29,293,000 34,600,000 2012 $5,447,048 $4,176,070 $4,870,542 $5,752,936 $1,317,879 $2,200,273 $0 $2,200,273 ($19,441,139) $0 $0 $9,201,743 2 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $418,695 $8,732,874 ($611,301) $13,346,521 $0.1622 $0124 2018 $0.1861 $0.1861 $0.1696 $0.1696 $0.1696 2018 30,000,000 23,000,000 29,293,000 34,600,000 2018 $5,583,224 $4,280,472 $4,967,953 $5,867,995 $1,485,127 $2,385,169 $0 $2,385,169 ($19,802,920) $0 $0 $11,586,912 21 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 Et) $0 $711,781 $8,732,874 ($611,301) $13,807,826 $0.1678 $0.1276 2019 $0.1908 $0.1908 $0.1730 $0.1730 $0.1730 $5,722,805 $4,387,483 $5,067,312 $5,985,355 $1,369,774 $2,287,816 $0 $2,287,816 ($20,314,424) $0 $0 $13,874,728 2 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,148,579 $726,017 $8,732,874 ($611,301) $13,996,168 $0.1701 $0.1294 $5,865,875 $4,497,171 $5,168,658 $6,105,062 $1,535,535 $2,471,938 0 $2,471,938 ($20,708,759) $0 $0 $16,346,667 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $740,537 $8,732,874 ($611,301) $14,190,889 $0.1724 $0.12 $6,012,521 $4,609,600 $5,272,031 $6,227,163 $1,703,264 $2,658,395 $0 $2,658,395 ($20,972,828) $0 $0 $19,005,062 a 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,515,286 $0 90 $755,348 $8,732,874 ($611,301) $14,392,207 $0.1749 $6,162,835 $4,724,840 $5,377,472 $6,351,706 $1,872,939 $2,847,173 $0 $2,847,173 ($21,092,307) $0 $0 $21,852,235 3 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,708,321 $0 $0 $770,455 $8,732,874 ($611,301) $14,600,349 $0.1774 $0.1350 2023 $0.2106 $0.2106 $0.1872 $0.1872 $0.1872 $6,316,905 $4,842,961 $5,485,021 $6,478,740 $2,044,539 $3,038,257 $0 $3,038,257 ($21,051,538) $0 $0 $24,890,493 26 2024 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $785,864 $8,732,874 ($611 301) $14,815,549 $0.1800 $0.1369 2024 $0.2158 $0.2158 $0.1910 $0.1910 $0.1910 $6,474,828 $4,964,035 $5,594,722 $6,608,315 $2,218,035 $3,231,629 $0 $3,231,629 ($20,833,399) $0 $0 $28,122,121 27 2025 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 $0 $801,582 $8,732,874 ($611,301) $15,038,051 $0.1827 $0.1390 2025 $0.2212 $0.2212 $0.1948 $0.1948 $0.1948 $6,636,699 $5,088,136 $5,706,616 $6,740,481 $2,393,400 $3,427,265 $0 $3,427,265 ($20,419,172) 9 $0 $31,549,387 2 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $817,613 $8,732,874 ($611,301) $15,268,104 $0.185S $0.1411 $5,215,339 $5,820,749 $6,875,291 $2,570,600 $3,625,143 $0 $3,625,143 ($19,788,393) $0 $0 $35,174,529 29 2027 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,550,430 $833,965 $8,732,874 ($611,301) $15,505,968 $0,1884 $0.1433 2027 $0.2324 $0.2324 $0.2027 $0.2027 $0.2027 $6,972,682 $5,345,723 $5,937,164 $7,012,797 $2,749,600 $3,825,233 $0 $3,825,233 ($18,918,691) $0 0 $38,999,762 CASE IV page2 3 2028 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,779,695 $850,645 $8,732,874 ($611,301) $15,751,912 $0.1914 $0.1456 $4,027,505 ($17,785,607) $0 9 $43,027,267 CASEIVpage3 Rate Stabilization Fund Balances (9.5%return) $1,000,000 p--------22 ene een eee eee ee enn cee eee cen ene nee ne nee ee none ene n tere ee eee eee e ene e rs eeeeeeeeeee eee q (64,000,000)+------Se2 ne Oy eee ose Aees OU)oo Cae ($14,000,000)+---------2-222 ee ee ee eee cee cee cee cn eee e eee eee e eee e eee cn ec cneeeenseeeaeereneene cnnceneeeeeeeeeereresRateofGrowth-Makushin Load ($19,000,000)4--------2-2-2 e eee eee ee eee eee ee once en cccccceaccceceeshaeee *0.00%°3.00%Lee Oeee Co RU nn aaa Sse S8seBERBRKBBSEAGEEHeBEHEEeEEKLCBSKeAHKHAKRABABBAB-&&@ &@ 8 RRRRARARARRRRARRARRKRARKRKRRARRB Makushin Costs of Power &Rates $0.2000 + $0.2400 + F3ir& 2 9.1900 4FE)r Fyos) $0.1400 + 80.0900,t}-t}-$$}-pt tt tt tt ttt tt ttt tttSPRRRERSRESRRERRRRERERERRERRSERERE %--@---Contract Wholesale --(--Whl.Cost -0%Load --®--Whl.Cost -3' Rate growth growth --Integrated Diesel a City Cost of PowerRate Load wRhowh CASEIlpage1MakushinGeothermalProject: Bonds $97,556,388 Equity:($5,000,000 ROE:779%1999 RATES:Heat Rate:13 Interest rate 7%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 DiscountRate 0%LoadGr 3%LoadGrTerm30)Wellfield:$15,845,000 [RSF MAX-0%:($5,176,223)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT /ROE:7.79%$0 $7,287,500 Payment ($8,260,220)|IDC:-$1,700,269 |RSF yr10-3%:$0 Westward:$0.1164 96 O&M.$0.0350 GROSS PROFIT:$31,058,186 $59,008,351 Inflation 3.50%Subtotal:$87,381,269 IDC factor;0.25 Net Output:14,000 96 Diesel cost:$0.1050 Debt Service $8,260,220 Reserve:$8,262,248]DSR factors:Plant Factor:0.95 Interest Earnings 7.00%t CostofFin:$1,912,870 20 yr:0.109 Line Loss:(1,000)Rate Inflator:2.50% Makushin Growth scenario:3.00%Bond Size:$97,556,388 30 yr 0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 i 1999 2000 2001 2002 203 2004 2005 2006 2007 2008 2009 2010 2011City29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000GrowthRate0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000MakushinLoad:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 +=104,246,310 =:107,373,700 --:108,186,000 =108,186,000 =108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 other fixed costs 0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 royalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 Capital costs debt service $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220interestearned($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215) Total Cost of Makushin Power $10,421,509 =$10,513,799 $10,609,247.$10,707,963 $10,810,059 $10,915,652 $11,024,864 $11,137,818 $11,254,645 $11,375,478 =$11,558,847 $11,689,281 $11,824,175AvgRev.Req.@ load growth:0.00%$0.1266 $0.1278 $0.1289 $0.1301 $0.1314 $0.1326 $0.1340 $0,1353 $0.1368 $0.1382 $0.1405 $0.1420 $0.1437 Avg Rev.Req.@ load growth:3.00%$0.1266 $0.1240 $0.1215 $0.1191 $0.1167 90.1144 $0.1122 $0.1100 $0.1080 $0.1059 $0.1068 $0.1080 $0.1093 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Unisea250%$0.1164 $0.1193 $0.1223 $0.1254 $0.1285 $0.1317 $0.1350 $0.1384 $0.1418 $0.1454 $0.1490 $0.1527 $0.1566 Westward 2.50%$0.1164 $0.1193 $0.1223 $0.1254 $0.1285 $0.1317 $0.1350 $0.1384 $0.1418 $0,1454 $0.1490 $0.1527 $0.1566 City &Others load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 City &Others -load growth:3.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 Makushin Sales -kWh 199 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Unisea30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000City&others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000City&others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Unisea$3,492,461 $3,579,773 $3,669,267 $3,760,999 $3,855,024 $3,951,399 $4,050,184 $4,151,439 $4,255,225 $4,361,606 $4,470,646 $4,582,412 $4,696,972Westward$2,677,554 $2,744,493 $2,813,105 $2,883,432 $2,955,518 $3,029,406 $3,105,141 $3,182,770 $3,262,339 $3,343,898 $3,427,495 $3,513,182 $3,601,012City&others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 City &others 3.00%$3,410,156 $3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442ReturntoRSFund0%load gr.0.00%($841,338)($711,175)($578,949)($444,647)($308,255)($169,759)($29,149)$113,588 $258,460 $405,477 $496,255 $646,413 $798,711 Return to RSFund 3%load gr.3.00%($841,338)($418,022)$28,054 $210,984 $360,489 $512,360 $666,613 $823,265 $982,331 $1,143,825 $1,249,370 $1,414,590 $1,582,251 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $823,265 $982,331 $1,143,825 $1,249,370 $1,414,590 $1,582,251 RSF Balance 0%load gr.0.00%($841,338)($1,632,440)($2,366,471)($3,035,933)($3,632,602)($4,147,458)($4,570,616)($4,891,236)($5,097,443)($5,176,223)($5,171,709)($5,016,608)($4,694,475) RSF Balance 3%load gr.3.00%($841,338)($1,339,287)($1,438,465)($1,364,135)($1,133,239)($728,536)($131,134)$0 $0 $0 $0 $0 $0 Equity Balance 0%joad gr.0.00%$0 $0 90 $0 $0 0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $823,265 $1,805,596 $2,949,421 $4,198,790 $5,613,381 $7,195,632 4 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 $0 $0 $371,789 $8,260,220 ($578,215) $11,963,684 $0.1454 $0.1106 2012 $0.1605 $0.1605 $0,1506 $0.1506 $0.1506 $4,814,396 $3,691,037 $4,411,400 $5,210,611 $953,150 $1,752,361 $0 $1,752,361 ($4,187,300) $0 $0 $8,947,993 CASE III page2 15 16 17 18 19 20 21 2 23 24 25 26 27 2B 29 30 2013 2014 2015 2016 2012 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 =29,402,497 29,402,497 29,402,497 29,402,497 29,402,49764,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,50393,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 =108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 =108,186,000 -108,186,000 108,186,000 108,186,000 $4,046,736 $4,188,372 $4,334,965 $4,486,689 $4,643,723 $4,806,253 $4,974,472 $5,148,579 $5,328,779 $5,515,286 $5,708,321 $5,908,112 $6,114,896 $6,328,918 $6,550,430 $6,779,695 $0 $0 $0 $0 BU $0 $0 $0 $0 $0 $0 $0 $0 $0 al $0 $0 $0 $0 $0 9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $379,225 $386,809 $394,546 $402,437 $410,485 $418,695 $711,781 $726,017 $740,537 $755,348 $770,455 $785,864 $801,582 $817,613 $833,965 $850,645 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220 $8,260,220($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215)($578,215) $12,107,966 $12,257,186 ==$12,411,515 $12,571,130 $12,736,213 $12,906,953 $13,368,258 =$13,556,600 =$13,751,321 $13,952,639 $14,160,781 $14,375,981 $14,598,482 $14,828,535 $15,066,400 $15,312,344$0.1471 $0.1489 $0.1508 $0.1528 $0.1548 $0.1568 $0.1624 $0.1647 $0.1671 $0.1695 $0.1721 $0.1747 $0.1774 $0.1802 $0.1831 $0.1861 $0.1119 $0.1133 $0.1147 $0.1162 $0.1177 $0.1193 90.1236 $0.1253 $0.1271 $0.1290 $0.1309 $0.1329 $0.1349 $0.1371 $0.1393 $0.1415 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 027 2028 $0.1645 $0.1686 $0.1728 $0.1771 $0.1816 $0.1861 $0.1908 $0.1955 $0.2004 $0.2054 $0.2106 $0.2158 $0.2212 $0.2268 $0.2324 $0.2382 $0.1645 $0.1686 $0.1728 $0.1771 $0.1816 $0.1861 $0.1908 $0.1955 $0.2004 $0.2054 $0.2106 $0.2158 $0.2212 $0.2268 $0.2324 $0.2382 $0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 2014 2015 2016 2017 2018 an 2020 2021 2022 2023 2024 2025 2026 2027 20282013 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,00023,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,00029,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,00034,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 2013 2014 2018 2016 201Z 2018 2019 2020 2021 2022 2023 2024 2025 2026 2022 2028 _$4,934,756 $5,058,125 $5,184,578 $5,314,193 $5,447,048 $5,583,224 $5,722,805 $5,865,875 $6,012,521 $6,162,835 -$6,316,905 $6,474,828 $6,636,699 $6,802,616 $6,972,682 $7,146,999$3,783,313 $3,877,896 $3,974,843 $4,074,215 $4,176,070 $4,280,472 $4,387,483 $4,497,171 $4,609,600 $4,724,840 $4,842,961 $4,964,035 $5,088,136 $5,215,339 $5,345,723 $5,479,366 $4,499,628 =$4,589,620 $4,681,413 $4,775,041 $4,870,542 $4,967,953 $5,067,312 $5,168,658 $5,272,031 $5,377,472 $5,485,021 $5,594,722 $5,706,616 $5,820,749 $5,937,164 $6,055,907$5,314,824 $5,421,120 $5,529,542 $5,640,133 $5,752,936 $5,867,995 $5,985,355 $6,105,062 $6,227,163 $6,351,706 $6,478,740 $6,608,315 $6,740,481 $6,875,291 $7,012,797 $7,153,053 $1,109,732 $1,268,456 $1,429,320 $1,592,319 $1,757,447 $1,924,696 $1,809,342 $1,975,103 $2,142,832 $2,312,507 $2,484,107 $2,657,603 $2,832,968 $3,010,168 $3,189,168 $3,369,927 $1,924,927 $2,099,955 $2,277,449 $2,457,411 $2,639,841 $2,824,737 $2,727,384 $2,911,507 $3,097,963 $3,286,742 $3,477,826 $3,671,197 $3,866,833 $4,064,711 $4,264,801 $4,467,073 $0 $0 $0 $1,592,319 $1,757,447 $1,924,696 $1,809,342 $1,975,103 $2,142,832 $2,312,507 $2,484,107 $2,657,603 $2,832,968 $3,010,168 $3,189,168 $3,369,927 $1,924,927 $2,099,955 $2,277,449 $2,457,411 $2,639,841 $2,824,737 $2,727,384 -$2,911,507 $3,097,963 $3,286,742 $3,477,826 $3,671,197 $3,866,833 $4,064,711 $4,264,801 $4,467,073 ($3,475,362)($2,537,066)($1,348,767)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 #9 $0 $0 $0 $0 $0 $0 $0 $0 $1,592,319 $3,349,766 $5,274,461 $7,083,803 $9,058,906 $11,201,738 $13,514,245 $15,998,352 $18,655,955 $21,488,923 $24,499,092 $27,688,259 $31,058,186 $10,872,921 $12,972,876 -$15,250,325 $17,707,736 $20,347,577 $23,172,314 -$25,899,699 $28,811,205 $31,909,169 $35,195,910 $38,673,736 =$42,344,932 $46,211,766 9 -$50,276,477 $54,541,278 -$59,008,351 CASE III page3 $1,000,000 $0 (61,000,000)# ($2,000,000)4 (63,000,000)+-- ------- (64,000,000)4.---------eeeeepee ecseeeceeeeveevevuceeeseerefhcossccececescesecnene ($5,000,000)+.---.-----------22-2222 Ree ($6,000,000)4 Rate Stabilization Fund Balances (9.5%return) Rate of Growth -Makushin Load --#-0.00%-e-3.00% $0.2900 $0.2400 Cost/RateperkWh8i=)&gs$0.0900 Makushin Costs of Power &Rates Sn ALLL SRLLLLLSRSERSSZESSRBRSBSSEHAA2FRERSSRARRERBRARSFRGRRRRSERRSRRSRSERRRRRERRRRRRKRRRRKRRARRR --®--ContractWholesale --O--Whl.Cost -0%Load --@-- Whl.Cost -3%LoadRategrowthgrowth ---Integrated Diesel --4-City Cost of PowerRate. [tele Hh, a,Lincs WN chy a He ing dTpal$65 -3532 /ee Ww Ro& Makushin Geothermal Project:CASE V page 1Bonds$91,764,829 Equity:($10,000,000 ROE:8.06%1999 RATES:Heat Rate:13 Interest rate 7.50%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 Discount Rate 0%LoadGrTerm30Wellfield:$15,845,000 [RSF MAX-0%:($934,921)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT /ROE:8.06%$0 $7,116,021 Payment ($7,769,841)IDC:$1,512,769 |RSF yr10-3%:$0 Westward:$0.1164 96 O&M $0.0350 GROSS PROFIT:$49,026,943 $73,556,306 Inflation 3.50%Subtotal:$82,193,769]IDC factor:0.25 Net Output:14,000 96 Diesel cost:$0.1050 Debt Service $7,769,841 Reserve:$7,771,750]DSR factors:Plant Factor:0.95interestEamings7.00%]CostofFin.:$1,799,310 20 yr.0.109 Line Loss:(1,000)Rate Inflator:2.50% Makushin Growth scenario:3.00%Bond Size:$91,764,829 30 yr:0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Energy requirements 1999 2000 2001 2002 2003 2004 2005 2006 2002 2008 2009 2010 2011 2012 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 Processors 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000GrowthRate0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000MakushinLoad:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 $3,909,890otherfixedcosts0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 $0 $0 $0 $0 i $0 $0 $0 $0 $0 $0 90 Toyalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 $371,789 Capital costs debt service $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 interest earned ($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889) Total Cost of Makushin Power $9,965,457 $10,057,747 $10,153,195 $10,251,911 $10,354,007 $10,459,600 $10,568,812 $10,681,766 $10,798,593 $10,919,426 =$11,102,795 $11,233,229 =$11,368,123 $11,507,632AvgRev.Req.@ load growth:0.00%$0.1211 $0.1222 $0.1234 $0.1246 $0.1258 $0.1271 $0.1284 $0.1298 $0.1312 $0.1327 $0.1349 90.1365 $0.1381 $0.1398 Avg Rev.Req.@ load growth:3.00%$0.1211 $0.1187 $0.1163 $0.1140 $0.1118 $0.1096 $0.1076 $0.1055 $0.1036 $0.1017 $0.1026 $0.1038 $0.1051 $0.1064 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Unisea2.50%$0.1164 $0.1193 $0.1223 $0.1254 $0.1285 $0.1317 $0.1350 $0.1384 $0.1418 $0.1454 $0.1490 $0.15277 $0.1566 $0.1605 Westward 2.50%$0.1164 $0.1193 $0.1223 $0.1254 $0.1285 $0.1317 $0.1350 $0.1384 $0.1418 $0.1454 $0.1490 $0.1527 $0.1566 $0.1605 City &Others -load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 90.1506 City &Others -load growth:3.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 90.1419 $0.1447 $0.1476 90.1506 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004 2005 2006 2002 2008 2009 2010 2011 2012Unisea30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000City&others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000City&others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unisea $3,492,461 $3,579,773 $3,669,267 $3,760,999 $3,855,024 $3,951,399 $4,050,184 $4,151,439 $4,255,225 $4,361,606 $4,470,646 $4,582,412 $4,696,972 $4,814,396Westward$2,677,554 $2,744,493 $2,813,105 $2,883,432 $2,955,518 $3,029,406 $3,105,141 $3,182,770 $3,262,339 $3,343,898 $3,427,495 $3,513,182 $3,601,012 $3,691,037 City &others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 $4,411,400 City &others 3.00%$3,410,156 $3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442 $5,210,611 Return to RSFund 0%load gr.0.00%($385,286)($255,123)($122,897)$11,405 $147,797 $286,293 $426,903 $569,640 $714,512 $861,529 $952,307 $1,102,465 $1,254,763 $1,409,202ReturntoRSFund3%load gr.3.00%($385,286)$38,030 $484,106 $667,036 $816,541 $968,412 $1,122,665 $1,279,317 $1,438,383 $1,599,877 $1,705,422 $1,870,642 $2,038,303 $2,208,413 Return to Equity 0%load gr.0.00%$0 $0 0 $0 $0 0 0 $569,640 $714512 $861,529 $952,307 $1,102,465 $1,254,763 $1,409,202ReturntoEquity3%load gr.3.00%$0 $0 $484,106 $667,036 $816,541 $968,412 $1,122,665 $1,279,317 $1,438,383 $1,599,877 $1,705,422 $1,870,642 $2,038,303 $2,208,413 RSF Balance 0%load gr.0.00%($385,286)($677,011)($864,225)($934,921)($875,942)($672,864)($309,882)$0 $0 $0 $0 $0 $0 $0 RSF Balance 3%load gr.3.00%($385,286)($383,858)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $569,640 $1,284,152 $2,145,682 $3,097,988 $4,200,454 $5,455,216 $6,864,418EquityBalance3%load gr.3.00%$0 $0 $484,106 $1,151,142 $1,967,683 $2,936,095 $4,058,760 $5,338,077 $6,776,460 $8,376,337 $10,081,758 $11,952,401 $13,990,704 =$16,199,117 w 15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $379,225 $7,769,841 ($543,889) $11,651,914 $0.1416 $0.1077 2013 $0.1645 $0.1645 $0.1536 $0.1536 $0.1536 $4,934,756 $3,783,313 $4,499,628 $5,314,824 $1,565,784 $2,380,979 $1,565,784 $2,380,979 $0 $0 $8,430,202 $18,580,097 16 2014 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $386,809 $7,769,841 ($543,889) $11,801,134 $0.1434 $0.1091 2014 $0.1686 $0.1686 $0.1567 90.1567 $0.1567 $5,058,125 $3,877,896 $4,589,620 $5,421,120 $1,724,508 $2,556,007 $1,724,508 $2,556,007 i] $0 $10,154,710 $21,136,104 17 2015 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,334,965 $0 $0 $394,546 $7,769,841 ($543,889) $11,955,463 $0.1453 $0.1105 2015 $0.1728 $0.1728 $0.1598 $0,1598 $0.1598 $5,184,578 $3,974,843 $4,681,413 $5,529,542 $1,885,372 $2,733,501 $1,885,372 $2,733,501 18 2016 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,486,689 $402,437 $7,769,841 ($543,889) $12,115,078 $0.1472 $0.1120 2016 $0.1771 $0.1771 $0.1630 $0.1630 $0.1630 2016 30,000,000 23,000,000 29,293,000 34,600,000 2016 $5,314,193 $4,074,215 $14,088,452 $26,783,068 19 201Z 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $410,485 $7,769,841 ($543,889) $12,280,161 $0.1492 $0.1135 2017 $0.1816 $0.1816 $0.1663 $0.1663 $0.1663 2017 30,000,000 23,000,000 29,293,000 34,600,000 2012 $5,447,048 $4,176,070 $4,870,542 $5,752,936 $2,213,499 $3,095,893 $2,213,499 $3,095,893 $0 $0 $16,301,951 $29,878,961 20 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $418,695 $7,769,841 ($543,889) $12,450,901 $0.1513 $0.1151 2018 $0.1861 $0.1861 $0.1696 $0.1696 $0.1696 2018 30,000,000 23,000,000 29,293,000 34,600,000 2018 $5,583,224 $4,280,472 $4,967,953 $5,867,995 $2,380,748 $3,280,789 $2,380,748 $3,280,789 $0 $0 $18,682,698 $33,159,750 21 2019 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 $0 $0 $711,781 $7,769,841 ($543,889) $12,912,206 $0.1569 $0.1194 2019 $0.1908 $0.1908 $0.1730 $0.1730 $0.1730 $5,722,805 $4,387,483 $5,067,312 $5,985,355 $2,265,394 $3,183,436 $2,265,394 $3,183,436 $0 $0 $20,948,092 $36,343,186 $5,148,579 $726,017 $7,769,841 ($543,889) $13,100,548 $0.1592 $0.1211 2020 $0.1955 $0.1955 $0.1764 $0.1764 $0.1764 2020 30,000,000 23,000,000 29,293,000 34,600,000 2020 $5,865,875 $4,497,171 $5,168,658 $6,105,062 $2,431,155 $3,367,558 $2,431,155 $3,367,558 $0 $0 $23,379,247 $39,710,745 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $740,537 $7,769,841 ($543,889) $13,295,269 $0.1616 $0.1229 2021 $0.2004 $0.2004 $0.1800 $0.1800 $0.1800 2021 30,000,000 23,000,000 29,293,000 34,600,000 2021 $6,012,521 $4,609,600 $5,272,031 $6,227,163 $2,598,884 $3,554,015 $2,598,884 $3,554,015 $0 $0 $25,978,131 $43,264,760 $5,515,286 $755,348 $7,769,841 ($543,889) $13,496,587 $0.1640 $0.1248 2022 $0.2054 $0.2054 $0.1836 $0.1836 $0.1836 $6,162,835 $4,724,840 $5,377,472 $6,351,706 $2,768,559 $3,742,794 $2,768,559 $3,742,794 $0 $0 $28,746,690 $47,007,554 $5,708,321 $0 $0 $770,455 $7,769,841 ($543,889) $13,704,729 $0.1665 $0.1267 2023 $0.2106 $0.2106 $0.1872 $0.1872 $0.1872 2023 30,000,000 23,000,000 29,293,000 34,600,000 2023 $6,316,905 $4,842,961 $5,485,021 $6,478,740 $2,940,159 $3,933,878 $2,940,159 $3,933,878 $0 $0 $31,686,849 $50,941,431 26 2024 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $785,864 $7,769,841 ($543,889) $13,919,929 $0.1692 $0.1287 2024 $0.2158 $0.2158 $0.1910 $0.1910 $0.1910 2024 30,000,000 23,000,000 29,293,000 34,600,000 2024 $6,474,828 $4,964,035 $5,594,722 $6,608,315 $3,113,655 $4,127,249 $3,113,655 $4,127,249 $0 $0 $34,800,504 $55,068,680 7 202 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 RU $801,582 $7,769,841 ($543,889) $14,142,430 $0.1719 $0.1307 2025 $0.2212 $0.2212 $0.1948 $0.1948 $0.1948 $6,636,699 $5,088,136 $5,706,616 $6,740,481 $3,289,020 $4,322,885 $3,289,020 $4,322,885 $0 $0 $38,089,524 $59,391,565 28 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $0 $0 $817,613 $7,769,841 ($543,889) $14,372,484 $0.1747 $0.1328 2026 $0.2268 $0.2268 $0.1987 $0.1987 $0.1987 $6,802,616 $5,215,339 $5,820,749 $6,875,291 $3,466,220 $4,520,763 $3,466,220 $4,520,763 $0 $0 $41,555,744 $63,912,328 29 2027 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,550,430 $833,965 $7,769,841 ($543,889) $14,610,348 90.1775 $0.1350 2027 $0.2324 $0.2324 $0.2027 $0.2027 $0.2027 $6,972,682 $5,345,723 $5,937,164 $7,012,797 $3,645,220 $4,720,853 $3,645,220 $4,720,853 $0 $0 $45,200,964 $68,633,181 CASE V page2 $6,779,695 $850,645 $7,769,841 ($543,889) $14,856,292 $0.1805 $0.1373 2028 $0.2382 $0.2382 $0.2067 $0.2067 $0.2067 $7,146,999 $5,479,366 $6,055,907 $7,153,053 $3,825,979 $4,923,125 $3,825,979 $4,923,125 CASEV page3 Rate Stabilization Fund Balances (9.5%return) $1,000,000 $800,000 + $600,000 + $H00,000 pean n eee e ee reece eet e teeter eee e eee eee eee ee ence aera eee cereee eco nwenseenercnencs cece eseccseeceeceenararees $200,000 $0 4 CCHAAUR UC) ($400,000)4 Rate of Growth -Makushin Load --#-0.0%--e-3.00% Makushin Costs of Power &Rates $0.2900 + $0.2400 +Cost/RateperkWh&ie)880.0900 ++}4}.$+tt tt tt tt ttPREREERERESEERSRRERREERERRSERERSSRERSRB -- -®--Contract Wholesale --i--Wh Cost -0%Load ---@--Whl.Cost-3%LoadRategrowthgrowth --%-Integrated Diesel --4-City Cost of Power Rate Pew &Ww Makushin Geothermal Project:CASE VI page 1 Bonds $91,764,829 Equity:($10,000,000)ROE:4.85%1999 RATES:Heat Rate:13 Interest rate 7.50%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 0a: Term 30 Wellfield:$15,845,000 [RSF MAX-0%:($1,229,964)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT /ROE:4.85%$0 $10,955,754 (Payment ($7,769,841)IWC:-$1,512,769 |RSF yri0-3%:$0 Westward:$0.1164 96 O&M.$0.0350 GROSS PROFIT:$27,871,672 $52,591,459 [Inflation 3.50%Subtotal:$82,193,769 TDC factor:0.25 Net Output:14,000 96 Diesel cost:0.1050 Debt Service $7,769,841 Reserve:$7,771,750 |DSR factors:Plant Factor:0.95 [Interest Earnings 7.00%]CostofFin:$1,799,310 20 yr:0.109 Line Loss:(1,000)Rate Inflator:2.00% [Makushin Growth scenario:3.00%Bond Size:$91,764,829 30 yr.0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 i 199 2000 2001 2002 2003 2004 2005 2006 2007 2008 209 2010 2011 2012 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 Processors 64,517,503 64,517,503 64,517,503 64517503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Makushin Load:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246310 107,373,700 108,186,000 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 $3,909,890 other fixed costs 0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 90 royalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 $371,789 Capital costs debt service $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 interest earned ($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889) Total Cost of Makushin Power $9,965,457 $10,057,747 $10,153,195 $10,251,911 $10,354,007 $10,459,600 $10,568,812 $10,681,766 $10,798,593 $10,919,426 $11,102,795 $11,233,229 =$11,368,123 $11,507,632 Avg Rev.Req.@ load growth:0.00%$0.1211 $0.1222 $0.1234 $0.1246 $0.1258 $0.1271 $0.1284 $0.1298 $0.1312 $0.1327 $0.1349 $0.1365 $0.1381 $0.1398 Avg Rev.Req.@ load growth:3.00%$0.1211 $0.1187 $0.1163 $0.1140 $0.1118 $0.1096 $0.1076 $0.1055 $0.1036 $0.1017 $0.1026 $0.1038 $0.1051 $0.1064 Makushin Rates Inflator Entry 2000 2001,2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unisea 2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 Westward 2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 City &Others -load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 City &Others -load growth:3.00%90.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 90.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 $0.1506 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004 2008 2006 2002 2009 2010 2011 2012 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unisea $3,492,461 $3,562,311 $3,633,557 $3,706,228 $3,780,352 $3,855,959 $3,933,079 $4,011,740 $4,091,975 $4,173,815 $4,257,291 $4,342,437 $4,429,285 $4,517,871Westward$2,677,554 $2,731,105 $2,785,727 $2,841,441 $2,898,270 $2,956,236 $3,015,360 $3,075,668 $3,137,181 $3,199,924 $3,263,923 $3,329,201 $3,395,785 $3,463,701 City &others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 $4,411,400 City &others 3.00%$3,410,156 =$3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442 $5,210,611 Return to RSFund 0%toad gr.0.00%($385,286)($285,973)($185,986)($85,357)$15,878 $117,682 $220,017 $322,839 $426,104 $529,765 $575,380 $678,509 $781,849 $885,340 Return to RSFund 3%load gr.3.00%($385,286)$7,180 $421,017 $570,274 $684,622 $799,801 $915,778 $1,032,516 $1,149,975 $1,268,113 $1,328,495 $1,446,686 $1,565,390 $1,684,552 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $575,380 $678,509 $781,849 $885,340 Return to Equity 3%load gr.3.00%#0 $0 $0 $570,274 $684,622 $799,801 $915,778 $1,032,516 $1,149,975 $1,268,113 $1,328,495 $1,446,686 $1,565,390 $1,684,552 RSF Balance 0%load gr.0.00%($385,286)($707,861)($961,094)($1,137,755)($1,229,964)($1,229,129)($1,125,880)($909,999)($570,345)($94,763)$0 $0 $0 $0 RSF Balance 3%load gr.3.00%($385,286)($414,708)($33,088)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $575,380 $1,253,889 $2,035,738 $2,921,079EquityBalance3%load gr.3.00%$0 $0 $0 $570,274 $1,254,896 $2,054,698 $2,970,476 $4,002,991 $5,152,966 $6,421,079 $7,749,573 $9,196,259 $10,761,649 $12,446,201 CASE VI page 2 15 16 17 18 19 20 21 2 23 a 25 26 a7 28 29 30 2013 2014 2015 2016 2012 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 --:29,402,497 29,402,497 29,402,497 29,402,497 -29,402,497 29,402,497 29,402,497 29,402,49764,517,503 64,517,503 64,517,503 64517503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64517,503 64,517,503 64,517,50393,920,000 93,920,000 93,920,000 93,920,000 93,920,000 +-_93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 =108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000:108,186,000 108,186,000 $4,046,736 $4,188,372 $4,334,965 $4,486,689 =$4,643,723 $4,806,253 $4,974,472 $5,148,579 $5,328,779 $5,515,286 $5,708,321 $5,908,112 $6,114,896 $6,328,918 $6,550,430 $6,779,695$0 $0 cu $0 %$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 EY $0 $379,225 $386,809 $394,546 $402,437 $410,485 $418,695 $711,781 $726,017 $740,537 $755,348 $770,455 $785,864 $801,582 $817,613 $833,965 $850,645 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 ($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889) $11,651,914 -$11,801,134 $11,955,463 $12,115,078 $12,280,161 $12,450,901 $12,912,206 $13,100,548 $13,295,269 $13,496,587 $13,704,729 $13,919,929 $14,142,430 $14,372,484 $14,610,348 $14,856,292$0.1416 $0.1434 $0.1453 $0.1472 $0.1492 $0.1513 $0.1569 90.1592 $0.1616 $0.1640 $0.1665 $0.1692 $0.1719 $0.1747 $0.1775 90.1805 $0.1077 $0.1091 $0.1105 $0.1120 $0.1135 $0.1151 $0.1194 $0.1211 $0.1229 $0.1248 $0.1267 $0.1287 $0.1307 $0.1328 $0.1350 $0.1373 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028$0.1536 $0.1567 90.1598 $0.1630 $0.1663 $0.1696 $0.1730 90.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 90.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 90.2067$0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 90.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 2013 2014 2015 2016 21Z 2018 2012 2020 2021 2022 2023 2024 2025 2026 2022 2028 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,00023,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,00029,293,000 29,293,000 29,293,000 29,293,000 -:29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,00034,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 2013 2014 2018 2016 2012 2018 2019 2020 2021 2022 203 2024 223 2026 202 2028 $4,608,229 $4,700,393 $4,794,401 $4,890,289 $4,988,095 $5,087,857 $5,189,614 $5,293,406 $5,399,274 $5,507,260 $5,617,405 $5,729,753 $5,844,348 $5,961,235 $6,080,460 $6,202,069$3,532,975 $3,603,635 $3,675,707 $3,749,222 $3,824,206 $3,900,690 $3,978,704 $4,058,278 $4,139,444 =$4,222,232 $4,306,677.$4,392,811 $4,480,667 $4,570,280 $4,661,686 =$4,754,919$4,499,628 =$4,589,620 $4,681,413 $4,775,041 $4,870,542 $4,967,953 $5,067,312 $5,168,658 $5,272,031 $5,377,472 $5,485,021 $5,594,722 $5,706,616 $5,820,749 $5,937,164 $6,055,907$5,314,824 $5,421,120 $5,529,542 $5,640,133 $5,752,936 =$5,867,995 $5,985,355 $6,105,062 $6,227,163 $6,351,706 $6,478,740 $6,608,315 $6,740,481 $6,875,291 $7,012,797 $7,153,053 $988,918 $1,092,514 $1,196,058 $1,299,474 =$1,402,682 $1,505,599 $1,323,423 $1,419,704 $1,515,480 $1,610,377 $1,704,374 $1,797,356 $1,889,201 $1,979,780 $2,068,961 $2,156,603 $1,804,113 $1,924,014 $2,044,188 $2,164,566 $2,285,076 $2,405,641 $2,241,466 $2,356,197 $2,470,612 $2,584,611 $2,698,093 $2,810,949 =$2,923,066 $3,034,323 $3,144,594 $3,253,749$988,918 $1,092,514 -$1,196,058 $1,299,474 $1,402,682 $1,505,599 $1,323,473 $1,419,794 $1,515,480 $1,610,377 =$1,704,374 =$1,797,356 --$1,889,201 $1,979,780 $2,068,961 $2,156,603 $1,804,113 $1,924,014 $2,044,188 $2,164,566 $2,285,076 $2,405,641 $2,241,466 $2,356,197 $2,470,612 $2,584,611 $2,698,093 $2,810,949 $2,923,066 $3,034,323 $3,144,594 $3,253,749 $0 $0 0 $0 90 $0 90 $0 $0 $0 $0 $0 $0 $0 9 $0 $0 bo]9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,909,996 $5,002,511 $6,198,569 $7,498,042 $8,900,724 $10,406,323 $11,729,746 $13,149,540 $14,665,020 $16,275,397 $17,979,772 $19,777,128 -$21,666,328 $23,646,108 $25,715,069 $27,871,672$14,250,315 $16,174,328 $18,218,516 $20,383,082 $22,668,158 $25,073,798 $27,315,264 $29,671,462 $32,142,073 $34,726,685 $37,424,778 $40,235,727 $43,158,793 $46,193,116 $49,337,710 $52,591,459 CASE VI page3 Rate Stabilization Fund Balances (9.5%return) $1,000,000 +---------->eee oe eee ene ee ee en nn eee ee en a nnn wean ne ee ee eee ee ene ee eee ewer et an nena ee en aes $500,000 4-----2 eee e een cee eee ne cee ce en eee ee eee ene eee n een eee nent e ewer e ewe nae unaa en eanaeee g#+ § ($500,000)+X.--=++eee ee eee errr ee Pewee ne reece rere reer er ne were e remem et eee e rower ten onmanaemaaenaanaeccsaaccaaaaaeee Rate of Growth -Makushin Load ($1,000,000)4-MK =eee ee ee ener nce e eee nen ene ene n teen nee n ee eeneeaeames *0.00%.3.00%|... CSASU00)RR SSseseBSeRBR8RBBsSeSEABeEFEeEYSReEeRgasHKRSRERSB=&®&§RRR RR RR RRA RRA KR KRRRARKRARARRRAN Makushin Costs of Power &Rates $0.2900 + $0.2400 +Cost/RateperkWh$sa2s+23$0.0900 }-+4}--_+++-_+_+_++__+++\_+--+"_-+--+++4+4 4 4 I Ht tH SR ee ERE EEE RS RERER ERE RERERRESSSRRSS -®-Contract Wholesale --+-Whl.Cost -0%Load ---@--Whl.Cost -3%LoadRategrowthgrowth -_---Integrated Diesel -- -f---City Cost of Power Rate Wo [tow& CASE VII page 1MakushinGeothermalProject: Bonds $103,138,613 Equity:$0 ROE:0.0%1999 RATES:Heat Rate:13 Interest rate 7 50%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 Discount Rate 0%LoadGr,3%LoadGr,Term 30 Wellfield:$15,845,000 [RSF MAX-0%:($96,701,369)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT/ROE:0.00%0 $1,605,467 Payment ($8,732,874)Ie:$1,700,269 |RSF yr10-3%:($6,809,381)Westward:$0.1164 96 O&M $0.0350 GROSS PROFIT:$0 $1,605,467 Inflation 3.50%Subtotal:$92,381,269]IDC factor:0.25 Net Output:14,000 96 Diesel cost:$0.1050 Debt Service $8,732,874 Reserve:$8,735,018]DSR factors:Plant Factor:0.95 Interest Earnings 7.00%]CostofFin:$2,022,326 20 yr.0.109 Line Loss:(1,000)Rate Inflator:1.75% Makushin Growth scenario:3.00%Bond Size:$103,138,613 30 yr.0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 8 6 7 8 9 10 11 12 13 Energy requirements 199 2000 2001 2002 2003 2004 2008 2006 2007 2008 2009 2010 2011 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 Processors 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Makushin Load:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 +=104,246,310 107,373,700 =:108,186,000 =:108,186,000 +=108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 other fixed costs 0.00%9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 royalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 Capital costs debt service $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 interest earned ($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301) Total Cost of Makushin Power $10,861,077 =$10,953,367 =$11,048,815 $11,147,531 $11,249,627,$11,355,220 =$11,464,432 $11,577,386 =-$11,694,213 $11,815,046 =$11,998,415 =$12,128,849 =$12,263,743 Avg Rev.Req.@ load growth:0.00%$0.1320 $0.1331 $0.1343 $0.1355 $0.1367 $0.1380 $0.1393 $0.1407 $0.1421 $0.1436 $0.1458 $0.1474 $0.1490 Avg Rev.Req.@ load growth:3.00%$0.1320 $0.1292 $0.1266 $0.1240 $0.1215 $0.1190 $0.1167 $0.1144 $0.1122 $0.1100 $0.1109 $0.1121 $0.1134 Makushir Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 1.75%$0.1164 $0.1185 $0.1205 $0.1226 $0.1248 $0.1270 $0.1292 $0.1314 $0.1337 $0.1361 $0.1385 $0.1409 $0.1434 Westward 1.75%$0.1164 $0.1185 $0.1205 $0.1226 $0.1248 $0.1270 $0.1292 $0.1314 $0.1337 $0.1361 $0.1385 $0.1409 $0.1434 City &Others -load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 City &Others load growth:3.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 90.1364 $0.1391 $0.1419 $0.1447 $0.1476 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 +--23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 207 2008 2009 2010 2011 Unisea $3,492,461 $3,553,579 $3,615,767 $3,679,043 $3,743,426 $3,808,936 $3,875,593 $3,943,415 $4,012,425 $4,082,643 $4,154,089 $4,226,785 $4,300,754 Westward $2,677,554 $2,724,411 $2,772,088 $2,820,600 $2,869,960 $2,920,184 $2,971,288 $3,023,285 $3,076,193 $3,130,026 $3,184,801 $3,240,535 $3,297,245 City &others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 City &others 3.00%$3,410,156 $3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442 Return to RSFund 0%load gr.0.00%($1,280,906)($1,197,018)($1,113,034)($1,029,004)($944,979)($861,013)($777,162)($693,488)($610,054)($526,926)($502,564)($421,428)($340,843) Return to RSFund 3%load gr.3.00%($1,280,906)($903,865)($506,031)($373,372)($276,235)($178,893)($81,401)$16,188 $113,816 $211,422 $250,551 $346,749 $442,698 Return to Equity 0%load gr.0.00%9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 RSF Balance 0%load gr.0.00%($1,280,906)($2,599,610)($3,959,608)($5,364,775)($6,819,407)($8,328,263)($9,896,611)($11,530,277)($13,235,708)($15,020,026)($16,949,492)18,981,122)($21,125,171) RSF Balance 3%load gr.3.00%($1,280,906)($2,306,457)($3,031,602)($3,692,977)($4,320,044)($4,909,341)($5,457,130)($5,959,369)($6,411,692)($6,809,381)($7,205,721)($7,543,516)($7,817,452) Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 14 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 $0 9 $371,789 $8,732,874 ($611,301) $12,403,252 $0.1507 $0.1146 2012 $0.1459 $0.1459 $0.1506 $0.1506 $0.1506 2012 $4,376,017 $3,354,947 $4,411,400 $5,210,611 ($260,888) $538,323 $0 $0 ($23,392,950) ($8,021,786) $0 $0 CASE VII page2 1s 16 17 18 19 2 21 2 23 a 23 26 27 28 29 30 2013 2014 2015 2m6 2u1Z 2018 2019 2020 2021 2022 2023 2024 2025 2026 2022 2028 29,402,497 29,402,497 29,402,497 29,402,497.29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,49764,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 +-93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000108,186,000 108,186,000 +=108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 +-108,186,000 $4,046,736 $4,188,372 $4,334,965 $4,486,689 $4,643,723 $4,806,253 $4,974,472 -$5,148,579 $5,328,779 $5,515,286 $5,708,321 $5,908,112 $6,114,896 $6,328,918 $6,550,430 $6,779,695 $0 $0 $0 $0 9 $0 $0 $0 $0 $0 $0 $0 EU $0 9 $0 $0 9 0 $0 90 $0 9 $0 $0 $0 90 $0 90 $0 Au $0 $379,225 $386,809 $394,546 $402,437 $410,485 $418,695 $711,781 $726,017 $740,537 $755,348 $770,455 $785,864 $801,582 $817,613 $833,965 $850,645 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301) $12,547,534 $12,696,754 $12,851,083 $13,010,698 $13,175,781 $13,346,521 $13,807,826 $13,996,168 $14,190,889 $14,392,207 $14,600,349 =$14,815,549 $15,038,051 $15,268,104 $15,505,968 $15,751,912$0.1525 $0.1543 $0.1562 $0.1581 90.1601 $0.1622 $0.1678 $0.1701 $0.1724 90.1749 90.1774 $0.1800 90.1827 $0.1855 $0.1884 $0.1914 $0.1160 $0.1174 $0.1188 $0.1203 90.1218 $0.1234 $0.1276 $0.1294 $0.1312 $0.1330 90.1350 $0.1369 $0.1390 $0.1411 $0.1433 $0.1456 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028$0.1484 $0.1510 $0.1537 $0.1563 $0.1591 $0.1619 $0.1647 $0.1676 $0.1705 $0.1735 $0.1765 $0.1796 $0.1828 $0.1860 $0.1892 $0.1925 $0.1484 $0.1510 $0.1537 $0.1563 90.1591 $0.1619 $0.1647 $0.1676 $0.1705 $0.1735 90.1765 $0.1796 $0.1828 $0.1860 $0.1892 $0.1925 $0.1536 $0.1567 $0.1598 $0.1630 90.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067$0.1536 $0.1567 90.1598 $0.1630 $0.1663 $0.1696 $0.1730 90.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 2013 2014 2015 2016 201z 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,00023,000,000 23,000,000 23,000,000 --23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 =23,000,00029,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,00034,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 =34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 2013 2014 2018 2016 21Z 2018 2019 2020 2021 2022 2023 2024 2025 2026 2022 2028 $4,452,598 =$4,530,518 $4,609,802 $4,690,474 =$4,772,557 $4,856,077,$4,941,058 =$5,027,527 $5,115,508 $5,205,030 $5,296,118 $5,388,800 $5,483,104 $5,579,058 $5,676,692 $5,776,034 $3,413,658 =$3,473,397,$3,534,182 $3,596,030 $3,658,960 $3,722,992 $3,788,145 =$3,854,437 $3,921,890 $3,990,523 $4,060,357 $4,131,413 $4,203,713 $4,277,278 =$4,352,130 $4,428,293$4,499,628 $4,589,620 $4,681,413 $4,775,041 $4,870,542 $4,967,953 $5,067,312 $5,168,658 $5,272,031 $5,377,472 $5,485,021 $5,594,722 $5,706,616 $5,820,749 $5,937,164 $6,055,907 $5,314,824 $5,421,120 $5,529,542 $5,640,133 $5,752,936 $5,867,995 $5,985,355 $6,105,062 $6,227,163 $6,351,706 $6,478,740 $6,608,315 $6,740,481 $6,875,291 $7,012,797 $7,153,053 ($181,650)($103,218)($25,687)$50,847 $126,278 $200,501 ($11,312)$54,453 $118,540 $180,817 $241,147 $299,385 $355,382 $408,981 $460,017 $508,321 $633,546 $728,281 $822,443 $915,939 $1,008,672 =$1,100,543 $906,731 $990,857 $1,073,672 $1,155,052 $1,234,866 =$1,312,979 $1,389,248 $1,463,523 $1,535,651 $1,605,467 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 $0 $0 9 $0 $0 $0 $0 $1,605,467 ($25,796,931)($28,350,857)($31,069,875)($33,970,667)($37,071,602)($40,392,903)($44,241,541)($48,390,034)($52,868,546)($57,710,241)($62,951,567)($68,632,580)($74,797,293)($81,494,055)($88,775,973)($96,701,369) ($8,150,310)-(68,196,309)($8,152,515)($8,011,065)($7,763,444)($7,400,429)($7,196,738)($6,889,572)($6,470,409)($5,930,046)($5,258,535)($4,445,117)($3,478,155)($2,345,057)($1,032,186)$0 $0 $0 $0 $0 90 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,605,467 CASE VII page3 $1,000,000 g---p--2p open gen g Rate Stabilization Fund Balances (9.5%return) ee ee ee ee ee ee ee ee ee eee ee eee ee ee ee ee ee ee eesttt¥¥t ($9,000,000)+ ($19,000,000)+-------+22 -eeeeee seen eee eee eee ee ES ($29,000,000)+ ($39,000,000)+ ($49,000,000)+ ($59,000,000)+ ($69,000,000)+ ($79,000,000)4---=-----2 =e nee ee cen eee ee ee ee eee eee erence cee ceceeeeeed *0.00%bd 3.00% ($89,000,000)+ ($99,000,000)- $0.2900 + $0.2400 -=-Cost/RateperkWh8AMakushin Costs of Power &Rates $0.1400 + $0.0900 a a ee De ee Se ee Se S| SPEER RRRR ERR RRRER RRR REERR ER ERE ---Contract Wholesale --1}-Whl.Cost -0%Load --@---WhlL Cost -3%LoadRategrowthgrowth --_%--Integrated Diesel --_*-City Cost of Power Rate Wwflo¥G 14 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 Et) 9 $371,789 $8,251,358 ($577,595) $11,955,442 $0.1453 $0.1105 2012 $0.1459 $0.1459 $0.1506 $0.1506 $0.1506 $4,376,017 $3,354,947 $4,411,400 $5,210,611 $186,922 $986,133 9 $986,133 ($11,312,208) $0 $0 Makushin Geothermal Project:CASE VIII page 1 Bonds $97,451,721 Equity:-($5,000,000.ROE:9.06%1999 RATES:Heat Rate:13 interest rate 7.50%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 DiscountRate 0%LoadGr,3%LoadGrTerm30Wellfield:$15,845,000 [RSF MAX-0%:($29,669,801)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT/ROE:9.06%($4,584,583)$0 Payment ($8,251,358)IDC:-$1,606,519 |RSF yr10-3%:$0 Westward:$0.1164 96 O&M.$0.0350 GROSS PROFIT:$0 $29,071,222 Inflation 3.50%Subtotal:$87,287,519 TOC factor:0.25 Net Output:14,000 96 Diesel cost:$0.1050 Debt Service $8,251,358 Reserve:$8,253,384 |DSR factors:Plant Factor:0.95 Interest Earnings 7.00%CostofFin.:$1,910,818 20 yr:0.109 Line Loss:(1,000)Rate Inflator:1.75% [Makushin Growth scenario:3.00%Bond Size:$97,451,721 30 yr.0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 Energy requirements 1999 2000 2001 2002 2003 2004 2008 2006 2007 2008 2009 2010 2011 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Makushin Load:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 other fixed costs 0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 90 bt)$0 royalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 Capital costs debt service $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 interest earned ($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595) Total Cost of Makushin Power $10,413,267 $10,505,557 $10,601,005 $10,699,721 $10,801,817 $10,907,410 =$11,016,622 $11,129,576 =$11,246,403 =$11,367,236 =$11,550,605 =$11,681,039 $11,815,933 Avg Rev.Req.@ load growth:0.00%$0.1265 $0.1277 $0.1288 $0.1300 $0.1313 $0.1325 $0.1339 $0.1352 $0.1367 $0.1381 $0.1404 $0.1419 $0.1436 Avg Rev.Req.@ load growth:3.00%$0.1265 $0.1239 $0.1214 $0.1190 $0.1166 $0.1143 $0.1121 $0.1100 $0.1079 $0.1059 $0.1068 $0.1080 $0.1092 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Unisea1.75%$0.1164 $0.1185 $0.1205 $0.1226 $0.1248 $0.1270 $0.1292 $0.1314 $0.1337 $0.1361 $0.1385 $0.1409 $0.1434 Westward 1.75%$0.1164 $0.1185 $0.1205 $0.1226 $0.1248 $0.1270 $0.1292 $0.1314 $0.1337 $0.1361 $0.1385 $0.1409 $0.1434 City &Others-load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 City &Others load growth:3.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 90.1364 $0.1391 $0.1419 $0.1447 $0.1476 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0,1391 $0.1419 $0.1447 $0.1476 Makushin Sales -kWh 1299 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011, Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 Westward 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000City&others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 129 2000 2001 2002 2003 2004 2005 2006 2002 2008 2009 2010 2001 Unisea $3,492,461 $3,553,579 $3,615,767 $3,679,043 $3,743,426 $3,808,936 $3,875,593 $3,943,415 $4,012,425 $4,082,643 $4,154,089 $4,226,788 $4,300,754Westward$2,677,554 $2,724,411 $2,772,088 $2,820,600 $2,869,960 $2,920,184 $2,971,288 $3,023,285 $3,076,193 $3,130,026 $3,184,801 $3,240,535 $3,297,245 City &others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 City &others 3.00%$3,410,156 =$3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442 Return to RSFund 0%load gr.0.00%($833,096)($749,208)($665,224)($581,194)($497,169)($413,203)($329,352)($245,678)($162,244)($79,115)($54,754)$26,382 $106,967 Return to RSFund 3%load gr.3.00%($833,096)($456,055)($58,221)$74,438 $171,576 $268,917 $366,409 $463,998 $561,626 $659,232 $698,361 $794,559 $890,508 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 9 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 $0 90 $0 $0 $0 $0 0 $659,232 $698,361 $794,559 $890,508 RSF Balance 0%load gr.0.00%($833,096)($1,661,448)($2,484,510)($3,301,733)($4,112,566)($4,916,463)($5,712,879)($6,501,281)($7,281,147)($8,051,971)($8,871,662)($9,688,088)($10,501,489) RSF Balance 3%load gr.3.00%($833,096)($1,368,295)($1,556,504)($1,629,935)($1,613,203)($1,497,541)($1,273,398)($930,372)($457,131)$0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 Et)$0 $0 $0 $0 $0 $0 $0 $0 90 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $659,232 $1,357,593 $2,152,152 $3,042,660 $4,028,794 15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $379,225 $8,251,358 ($577,595) $12,099,724 $0.1470 $0.1118 2013 $0.1484 $0.1484 $0.1536 $0.1536 $0.1536 2013 30,000,000 23,000,000 29,293,000 34,600,000 2013 $4,452,598 $3,413,658 $4,499,628 $5,314,824 $266,160 $1,081,356 $0 $1,081,356 ($12,120,708) $0 $0 $5,110,149 16 2014 29,402,497 64,517,503 98,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $386,809 $8,251,358 ($577,595) $12,248,944 $0.1488 $0.1132 2014 $0.1510 $0.1510 $4,530,518 $3,473,397 $4,589,620 $5,421,120 $344,592 $1,176,091 $0 $1,176,091 ($12,927,584) $0 $0 $6,286,240 17 2015 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,334,965 $0 $0 $394,546 $8,251,358 ($577,595) $12,403,273 $0.1507 $0.1146 2015 $0.1537 $0.1537 $0.1598 $0.1598 $0.1598 $4,609,802 $3,534,182 $4,681,413 $5,529,542 $422,123 $1,270,253 $0 $1,270,253 ($13,733,581) $0 $0 $7,556,493 18 2016 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,486,689 $402,437 $8,251,358 ($577,595) $12,562,888 $0.1527 $0.1161 2016 $0.1563 $0.1563 $0.1630 $0.1630 $0.1630 $4,690,474 $3,596,030 $4,775,041 $5,640,133 $498,657 $1,363,749 $0 $1,363,749 ($14,539,614) $0 $0 $8,920,242 19 21Z 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,643,723 $410,485 $8,251,358 ($577,595) $12,727,971 $0.1547 $0.1176 2017 $0.1591 $0.1591 $0.1663 $0.1663 $0.1663 2012 30,000,000 23,000,000 29,293,000 34,600,000 2012 $4,772,557 $3,658,960 $4,870,542 $5,752,936 $574,089 $1,456,482 $0 $1,456,482 ($15,346,789) $0 $0 $10,376,725 20 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $418,695 $8,251,358 ($577,595) $12,898,711 $0.1567 $0.1192 2018 $0.1619 $0.1619 $0.1696 $0.1696 $0.1696 2018 30,000,000 23,000,000 29,293,000 34,600,000 2018 $4,856,077 $3,722,992 $4,967,953 $5,867,995 $648,311 $1,548,353 $0 $1,548,353 ($16,156,423) $0 $0 $11,925,077 21 202 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 $0 $0 $711,781 $8,251,358 ($577,595) $13,360,016 $0.1623 $0.12335 2019 $0.1647 $0.1647 $0.1730 $0.1730 $0.1730 $4,941,058 $3,788,145 $5,067,312 $5,985,355 $436,498 $1,354,541 $0 $1,354,541 ($17,254,785) $0 $0 $13,279,618 2 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,148,579 $726,017 $8,251,358 ($577,595) $13,548,358 90.1646 $0.1252 2020 $0.1676 $0.1676 $0.1764 $0.1764 $0.1764 $5,027,527 $3,854,437 $5,168,658 $6,105,062 $502,263 $1,438,667 $0 $1,438,667 ($18,391,726) $0 $0 $14,718,285 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $740,537 $8,251,358 ($577,595) $13,743,079 $0.1670 $0.1270 2021 $0.1705 $0.1705 $0.1800 $0.1800 $0.1800 2021 30,000,000 23,000,000 29,293,000 34,600,000 2021 $5,115,508 $3,921,890 $5,272,031 $6,227,163 $566,350 $1,521 482 $0 $1,521,482 ($19,572,590) $0 $0 $16,239,767 pr) 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,515,286 $0 $0 $755,348 $8,251,358 ($577,595) $13,944,397 $0.1694 $0.1289 2022 $0.1735 $0.1735 $0.1836 $0.1836 $0.1836 $5,205,030 $3,990,523 $5,377,472 $6,351,706 $628,627 $1,602,862 $0 $1,602,862 ($20,803,359) $0 $0 $17,842,629 23 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,708,321 $0 $0 $770,455 $8,251,358 ($577,595) $14,152,539 $0.1720 $0.1308 2023 $0.1765 $0.1765 $0.1872 $0.1872 $0.1872 $5,296,118 $4,060,357 $5,485,021 $6,478,740 $688,957 $1,682,676 $0 $1,682,676 ($22,090,721) $0 $0 $19,525,305 26 2024 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $785,864 $8,251,358 ($577,595) $14,367,739 $0.1746 $0.1328 2024 $0.1796 $0.1796 $0.1910 $0.1910 $0.1910 2024 30,000,000 23,000,000 29,293,000 34,600,000 2024 $5,388,800 $4,131,413 $5,594,722 $6,608,315 $747,195 $1,760,789 $0 $1,760,789 ($23,442,144) $0 $0 $21,286,094 7 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 $0 $801,582 $8,251,358 ($577,595) $14,590,241 90.1773 $0.1349 2025 $0.1828 $5,483,104 $4,203,713 $5,706,616 $6,740,481 $803,192 $1,837,058 $0 $1,837,058 ($24,865,955) $0 $0 $23,123,151 2 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $0 $0 $817,613 $8,251,358 ($577,595) $14,820,294 $0.1801 $0.1370 2026 $0.1860 $0.1860 $5,579,058 $4,277,278 $5,820,749 $6,875,291 $856,791 $1,911,333 $0 $1,911,333 ($26,371,429) $0 $0 $25,034,485 29 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,550,430 $833,965 $8,251,358 ($577,595) $15,058,158 $0.1830 $0.1392 $5,676,692 $4,352,130 $5,937,164 $7,012,797 $907,827 $1,983,461 $0 $1,983,461 ($27,968,888) $0 $0 $27,017,946 CASE VIII page 2 30 2028 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,779,695 $850,645 $8,251,358 ($577,595) $15,304,102 $0.1860 $0.1415 ($29,669,801) $0 $0 $29,071,222 CASE VII page 3 $1,000,000 ($4,000,000)+--- --- ($9,000,000)+ ($14,000,000)+ ($19,000,000)+ ($24,000,000)+ ($29,000,000)+ ($34,000,000)+ Rate Stabilization Fund Balances (9.5%return) Jakushin Load --#-0.00%---3.00% $0.2900 $0.2400 Cost/RateperkWhg23$0.0900 Makushin Costs of Power &Rates Le a ey a a a a a a TY MT TT CY OO SY WO OT ST NOY OSE UY YC UN SY UOaSansSRRSSeesAesaee ee |SRS SSESSERSRERBSSESSERBSRESRESERRERBARSSRRRRRRRRRRRRARARRARRARRARRRABR --®-Contract Wholesale ----0---Whl.Cost -0%Load - -®--Whl.Cost -3%LoadRategrowthgrowth --¥--Integrated Diesel --t---City Cost of Power Rate wos G, CASE XII page1MakushinGeothermalProject: Bonds $97,451,721 Equity:-($5,000,000 ROE:7.19%11999 RATES:[Heat Rate:13 Interest rate 750%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1220 1996$/gal:$0.91 DiscountRate 0%LoadGr 3%LoadGrTerm30Wellfield:$15,845,000 [RSF MAX-0%:($1,385,296)Unisea:$0.1220 96/kWh fuel $0.0700 NPV PROFIT /ROE:7.19%$0 $8,183,052 Payment ($8,251,358)IDC:-$1,606,519 |RSF yr10-3%:$0 Westward:$0.1220 96 O&M.$0.0400 GROSS PROFIT:$22,176,190 $48,095,372 Inflation 3.50%Subtotal:$87,287,519]IDC factor:0.25 Net Output:14,000 96 Diesel cost:$0.1100 Debt Service $8,251,358 Reserve:$8,253,384]DSR factors:Plant Factor:0.95 Interest Earnings (r minusSO0bp 7.00%{Cost of Fin:$1,910,818 20 yr:0.109 Line Loss:(1,000)Rate Inflator:1.75% Makushin Growth scenario:3.00%Bond Size:$97,451,721 30 yr:0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 bby 12 13 i 1999 2000 2001 2002 2003 2004 2005 2006 2002 2008 2002 2010 2011 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,520,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000MakushinLoad:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 other fixed costs 0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 #0 $0 $0 $0 $0 $0 $0 $0 80 $0 $0 royalty $250,909 $255,977 $261,046 $266,267 $271,592 $277,024 $282,565 $288,216 $293,980 $299,860 $367,028 $374,369 $381,856 Capital costs debt service $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 interest earned ($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595) Total Cost of Makushin Power $10,424,672 $10,517,190 $10,612,871 $10,711,824 $10,814,162 $10,920,002 $11,029,465 =$11,142,677 $11,259,765 +-$11,380,866 $11,567,288 $11,698,056 $11,833,291 Avg Rev.Req.@ load growth:0.00%$0.1267 $0.1278 $0.1290 $0.1302 $0.1314 $0.1327 $0.1340 $0,1354 $0.1368 $0.1383 $0.1406 90.1422 $0.1438 Avg Rev.Req.@ load growth:3.00%$0.1267 $0.1241 $0.1216 $0.1191 $0.1168 $0.1145 90.1122 $0.1101 $0.1080 $0.1060 $0.1069 $0.1081 $0.1094 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 1.75%$0.1220 $0.1241 $0.1263 $0.1285 $0.1307 $0.1330 $0.1353 $0.1377 $0.1401 $0.1426 $0.1451 $0.1476 $0.1502 Westward 1.75%$0.1220 $0.1241 $0.1263 $0.1285 $0.1307 $0.1330 $0.1353 $0.1377 $0.1401 $0.1426 $0.1451 $0.1476 $0.1502 City &Others -load growth:0.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 City &Others -load growth:3.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 STABILIZED RATE:2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 Makushin Sales -kWh 1299 2000 2001 2002 2003 2004 2005 2006 2002 2008 2009 2010 2011 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea $3,658,769 $3,722,797 $3,787,946 $3,854,235 $3,921,685 $3,990,314 $4,060,145 $4,131,197 $4,203,493 $4,277,054 $4,351,903 $4,428,061 $4,505,552 Westward $2,805,056 $2,854,145 $2,904,092 $2,954,914 $3,006,625 $3,059,241 $3,112,777 $3,167,251 $3,222,678 $3,279,075 $3,336,459 $3,394,847 $3,454,257 City &others 0.00%$3,572,544 $3,643,995 $3,716,875 $3,791,212 $3,867,037 $3,944,377 $4,023,265 $4,103,730 $4,185,805 $4,269,521 $4,354,911 $4,442,009 $4,530,850 City &others 3.00%$3,572,544 $3,951,108 $4,352,783 $4,478,065 $4,567,626 $4,658,978 $4,752,158 $4,847,201 $4,944,145 $5,043,028 $5,143,889 $5,246,766 $5,351,702 Return to RSFund 0%load gr.0.00%($388,303)($296,253)($203,958)($111,463)($18,816)$73,930 $166,721 $259,502 $352,210 $444,784 $475,985 $566,861 $657,368 Return to RSFund 3%load gr.3.00%($388,303)$10,860 $431,950 $575,390 $681,773 $788,531 $895,615 $1,002,973 $1,110,551 $1,218,291 $1,264,962 $1,371,618 $1,478,220 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $566,861 $657,368 Return to Equity 3%load gr.3.00%30 $0 $0 $575,390 $681,773 $788,531 $895,615 $1,002,973 $1,110,551 $1,218,291 $1,264,962 $1,371,618 $1,478,220 RSF Balance 0%load gr.0.00%($388,303)($721,444)($993,939)($1,199,826)($1,332,626)($1,385,296)($1,350,177)($1,218,943)($982,532)($631,088)($215,057)$0 $0 RSF Balance 3%load gr.3.00%($388,303)($414,331)($21,743)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 bt)$0 $0 $0 $0 $566,861 $1,224,229 Equity Balance 3%load gr.3.00%$0 $0 $0 $575,390 $1,257,163 $2,045,693 $2,941,308 $3,944,281 $5,054,831 $6,273,123 $7,538,085 $8,909,703 $10,387,922 14 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 9 $0 $389,493 $8,251,358 ($577,595) $11,973,146 $0.1455 $0.1107 2012 $0.1528 $0.1528 $0.1578 $0.1578 $0.1578 $4,584,399 $3,514,706 $4,621,467 $5,458,736 $747,426 $1,584,695 $747,426 $1,584,695 $0 $0 $1,971,654 $11,972,617 CASE XII page2 15 16 17 18 19 20 21 2 23 mw -3 26 27 28 29 30 2013 2014 2015 2016 2012 2018 2012 2020 2021 2022 2023 2024 2023 2026 2022 2028 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 64517503 64,517,503 64,517,503 64,517,503 =64,517,503 64,517,503 64,517,503 64,517,503 64517,503 64,517,503 64517503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000108,186,000 108,186,000 108,186,000 108,186,000 +=108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 +=108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 $4,046,736 $4,188,372 $4,334,965 $4,486,689 $4,643,723 $4,806,253 $4,974,472 $5,148,579 $5,328,779 $5,515,286 =$5,708,321 $5,908,112 $6,114,896 $6,328,918 $6,550,430 $6,779,695$0 $0 $0 $0 $0 $0 ci]$0 $0 $0 $0 $0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 BU $397,283 $405,229 $413,334 $421,600 $430,032 $438,633 $745,676 $760,589 $775,801 $791,317 $807,144 $823,286 $839,752 $856,547 $873,678 $891,152 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 =$8,251,358 =$8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595) $12,117,782 $12,267,364 =$12,422,061 $12,582,052 $12,747,518 $12,918,649 $13,393,911 $13,582,931 $13,778,343 $13,980,366 $14,189,227 $14,405,161 $14,628,411 $14,859,228 =$15,097,871 $15,344,609$0.1473 $0.1491 $0.1509 $0.1529 $0.1549 $0.1570 $0.1628 $0.1651 $0.1674 90.1699 $0.1724 $0.1750 $0.1778 $0.1806 $0.1835 $0.1865 $0.1120 $0.1134 $0.1148 $0.1163 $0.1178 $0.1194 $0.1238 $0.1256 $0.14 $0.1292 $0.1312 $0.1332 $0.1352 $0.1373 $0.1396 $0.1418 2013 214 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 203 2026 2027 2028$0,155 $0.1582 $0.1610 $0.1638 $0.1667 $0.1696 90.1725 $0.1756 $0.1786 $0.1818 $0.1849 $0.1882 $0.1915 $0.1948 $0.1982 $0.2017 $0.1555 $0.1582 $0.1610 $0.1638 $0.1667 $0.1696 $0.1725 $0.1756 $0.1786 $0.1818 $0.1849 $0.1882 $0.1915 $0.1948 $0.1982 $0.2017 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166$0.1609 $0.1641 $0.1674 $0.1708 80.1742 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 $0.1609 $0.1641 $0.1674 $0.1708 $0.1742 $0.1777 $0.1812 $0.1848 $0.1885 $0.1923 $0.1962 $0.2001 $0.2041 $0.2082 $0.2123 $0.2166 2014 205 2016 2012 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20282013 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,00023,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,00029,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,00034,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 2013 2014 2015 2016 2012 2018 2012 2020 2021 2022 2023 2024 2025 2026 2022 2028 $4,664,626 $4,746,257 $4,829,317 $4,913,830 $4,999,822 $5,087,319 $5,176,347 $5,266,933 $5,359,104 $5,452,888 $5,548,314 $5,645,409 $5,744,204 $5,844,728 $5,947,010 $6,051,083$3,576,213 $3,638,797 $3,702,476 $3,767,269 $3,833,197 $3,900,278 $3,968,532 $4,037,982 $4,108,646 =$4,180,548 =$4,253,707 $4,328,147 $4,403,890 $4,480,958 $4,559,375 $4,639,164$4,713,896 $4,808,174 $4,904,337 $5,002,424 $5,102,473 $5,204,522 $5,308,612 $5,414,785 $5,523,080 $5,633,542 $5,746,213 $5,861,137 $5,978,360 $6,097,927 $6,219,886 $6,344,283$5,567,910 $5,679,269 $5,792,854 $5,908,711 $6,026,885 $6,147,423 $6,270,371 $6,395,779 $6,523,694 $6,654,168 $6,787,252 $6,922,997 $7,061,457 $7,202,686 $7,346,740 $7,493,674$836,953 $925,864 $1,014,069 $1,101,471 $1,187,973 $1,273,469 $1,059,581 $1,136,768 $1,212,488 $1,286,612 $1,359,007 $1,429,532 $1,498,042 $1,564,385 $1,628,400 $1,689,921$1,690,968 $1,796,959 $1,902,585 $2,007,758 $2,112,386 $2,216,370 $2,021,340 $2,117,763 $2,213,102 $2,307,238 $2,400,046 $2,491,392 $2,581,139 $2,669,144 $2,755,254 $2,839,312$836,953 $925,864 $1,014,069 $1,101,471 $1,187,973 $1,273,469 =$1,059,581 $1,136,768 $1,212,488 $1,286,612,$1,359,007,$1,429,532 $1,498,042 $1,564,385 $1,628,400 $1,689,921$1,690,968 $1,796,959 $1,902,585 $2,007,758 $2,112,386 =$2,216,370 $2,021,340 $2,117,763 $2,213,102 $2,307,238 +=$2,400,046 $2,491,392 $2,581,139 $2,669,144 $2,755,254 $2,839,312 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Ed]$0 $0 $0 $0 $0 $0 $0 9 $0 $0 $0 90 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,808,608 $3,734,472 $4,748,541 $5,850,012 $7,037,985 $8,311,454 =$9,371,035 $10,507,804 $11,720,292 $13,006,904 $14,365,910 $15,795,443 $17,293,485 $18,857,870 $20,486,270 =$22,176,190$13,663,585 $15,460,544 $17,363,129 $19,370,888 $21,483,273 $23,699,644 $25,720,984 $27,838,746 $30,051,848 $32,359,087 $34,759,132 $37,250,524 $39,831,663 $42,500,807 $45,256,061 $48,095,372 CASE XII page3 Rate Stabilization Fund Balances (9.5%return) $1,000,000 + $500,000 +2($500,000) Rate of Growth -Makushin Load ($1,000,000)4-----Wee e ee ene ee eee ee ee eee ec ene nen nance eeemecnes *0.00%.3.00%|os. ($1,500,000)1.--------2-22 n ene eee ee eee eee nee ener ee ence nn en enn enonec era canncnenmenaeerrowancennmenersanenscarences S@esesssegegesesepseseesrseageseFeeEeEsweesestgtaahtrareaeeaAasBA-&®&®&®&RA RRRKRRRKRRRRARRRRKRRRRRRRARARR Makushin Costs of Power &Rates $0.2900 + $0.2400 +Cost/RateperkWhg1$0.1400+ $0.0900 ++++}+--_+_++-_+_+_+++>+_+_-+--++--+"+>-+#1[-+T-++++HH HH HHH HH SS 22 ER REE ESEESESRERRREREESSSRSRSE %Loa----Contract Wholesale --0-Whl.Cost -0%Load --®--Whl Cost-3Rategrowthgrowth --X-Integrated Diesel --&-City Cost of Power Rate whor&@ 14 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 $371,789 $7,769,841 ($543,889) $11,507,632 $0.1398 $0.1064 2012 $0.1459 $0.1459 $0.1506 $0.1506 $0.1506 $4,376,017 $3,354,947 $4,411,400 $5,210,611 $634,732 $1,433,943 $634,732 $1,433,943 90 9 $1,189,510 Makushin Geothermal Project:CASE IX page 1 [Bonds $91,764,829 Equity:($10,000,000 ROE:2.72%1999 RATES:Heat Rate:=13 Interest rate 750%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 Q%LeadGr,3%LoadCr Term 30|Wellfield:$15,845,000 [RSF M.AX-0%:($1,529,147)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT /ROE:2.72%90 $15,384,475 Payment ($7,769,841)IDC:-$1,512,769 |RSF yr10-3%:$0 Westward:$0.1164 96 O&M.$0.0350 GROSS PROFIT:$18,202,235 $43,069,058 Inflation 3.50%Subtotal:$82,193,769 IDC factor;0.25 Net Output:14,000 96 Diesel cost:$0.1050 [Debt Service $7,769,841 Reserve:$7,771,750]DSR factors:Plant Factor.0.95 Interest Earnings 7.00%]Cost of Fin:-$1,799,310 20 yr.0.109 Line Loss:(1,000)Rate Inflator:1.75% Makushin Growth scenario:3.00%Bond Size:$91,764,829 30 yr:0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 i 1999 2000 2001 2002 2003 2004 2008 2006 2007 2008 2009 2010 2011 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64517,503Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Makushin Load:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 other fixed costs 0.00%$0 $0 $0 $0 $0 9 $0 $0 $0 Et)$0 $0 Variable costs fluid fees $0 $0 9 $0 $0 90 $0 90 $0 90 $0 $0 royalty $239,504 $244,294 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 Capital costs debt service $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 interest earned ($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889) Total Cost of Makushin Power $9,965,457 $10,057,747 $10,153,195 $10,251,911 $10,354,007 $10,459,600 $10,568,812 $10,681,766 $10,798,593 $10,919,426 =$11,102,795 =$11,233,229 $11,368,123 Avg Rev.Req.@ load growth:0.00%$0.1211 $0.1222 $0.1234 $0.1246 $0.1258 $0.12771 $0.1284 $0.1298 $0.1312 $0.1327 $0.1349 $0.1365 $0.1381 Avg Rev.Req.@ load growth:3.00%$0.1211 $0.1187 $0.1163 $0.1140 $0.1118 $0.1096 $0.1076 $0.1055 $0.1036 $0.1017 $0.1026 $0.1038 $0.1051 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 1.75%$0.1164 $0.1185 $0.1208 $0.1226 $0.1248 $0.1270 $0.1292 $0.1314 $0.1337 $0.1361 $0.1385 $0.1409 $0.1434 Westward 1.75%$0.1164 $0.1185 $0.120S $0.1226 $0.1248 $0.1270 $0.1292 $0.1314 $0.1337 $0.1361 $0.1385 $0.1409 $0.1434 City &Others -load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 $0.1447 $0.1476 City &Others -load growth:3.00%$0.1164 $0.1187 $0.1211 90.1235 $0.1260 $0.1285 90.1311 $0.1337 90.1364 $0.1391 $0.1419 $0.1447 $0.1476 STABILIZED RATE:2.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 $0.1419 90.1447 $0.1476 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0,00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 Unisea $3,492,461 $3,553,579 $3,615,767 $3,679,043 $3,743,426 $3,808,936 $3,875,593 $3,943,415 $4,012,425 $4,082,643 $4,154,089 $4,226,785 $4,300,754Westward$2,677,554 $2,724,411 $2,772,088 $2,820,600 $2,869,960 $2,920,184 $2,971,288 $3,023,285 $3,076,193 $3,130,026 $3,184,801 $3,240,535 $3,297,245 City &others 0.00%$3,410,156 $3,478,359 $3,547,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324,902 City &others 3.00%$3,410,156 $3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 $4,719,411 $4,813,799 $4,910,075 $5,008,277 $5,108,442 Return to RSFund 0%load gr.0.00%($385,286)($301,398)($217,414)($133,384)($49,359)$34,608 $118,458 $202,132 $285,566 $368,695 $393,056 $474,192 $554,778 Return to RSFund 3%load gr.3.00%($385,286)($8,245)$389,589 $522,248 $619,386 $716,727 $814,219 $911,808 $1,009,436 $1,107,042 $1,146,171 $1,242,369 $1,338,318 Return to Equity 0%load gr.0.00%$0 $0 $0 90 $0 ES $0 $0 $0 $0 9 $554,778 Return to Equity 3%load gr.3.00%0 $0 90 $522,248 $619,386 $716,727 $814,219 $911,808 $1,009,436 $1,107,042 $1,146,171 $1,242,369 $1,338,318 RSF Balance 0%load gr.0.00%($385,286)($723,286)($1,009,413)($1,238,691)($1,405,726)($1,504,662)($1,529,147)($1,472,284)($1,326,585)($1,083,916)($793,832)($395,054)$0 RSF Balance 3%load gr.3.00%($385,286)($430,133)($81,407)$0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $554,778 Equity Balance 3%load gr.3.00%$0 $0 $0 $522,248 $1,141,633 $1,858,360 $2,672,579 $3,584,388 $4,593,824 $5,700,867 $6,847,038 $8,089,407 $9,427,725 $10,861,668 CASE IX page 2 15 16 17 18 19 20 21 2 23 24 25 26 7 23 29 30 2013 2014 2015 2016 2017 2018 2012 2020 2021 2022 2023 2024 2025 2026 2027 2028 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 64,517,503 64,517,503 64,517,503 64517503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,50393,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 =82,293,000108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 108,186,000 $4,046,736 $4,188,372 $4,334,965 $4,486,689 $4,643,723 $4,806,253 $4,974,472 $5,148,579 $5,328,779 $5,515,286 $5,708,321 $5,908,112 $6,114,896 $6,328,918 $6,550,430 $6,779,695$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 90 $0 $0 90 80 $0 $0 $0 0 $0 $0 0 $0 $0 $0 $0 BU $0 $379,225 $386,809 $394,546 $402,437 $410,485 $418,695 $711,781 $726,017 $740,537 $755,348 $770,455 $785,864 $801,582 $817,613 $833,965 $850,645 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 ($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889) $11,651,914 $11,801,134 =$11,955,463 $12,115,078 $12,280,161 $12,450,901 $12,912,206 $13,100,548 $13,295,269 $13,496,587 $13,704,729 $13,919,929 $14,142,430 $14,372,484 =$14,610,348 $14,856,292$0.1416 $0.1434 $0.1453 $0.1472 $0.1492 $0.1513 $0.1569 $0.1592 $0.1616 $0.1640 90.1665 $0.1692 $0.1719 $0.1747 90.1775 $0.1805 $0.1077 $0.1091 $0.1105 $0.1120 $0.1135 $0.1151 90.1194 $0.1211 $0.1229 $0.1248 $0.1267 $0.1287 $0.1307 $0.1328 $0.1350 $0.1373 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028$0.1484 $0.1510 $0.1537 $0.1563 $0.1591 $0.1619 $0.1647 $0.1676 $0.1705 $0.1735 $0.1765 $0.1796 $0.1828 $0.1860 $0.1892 90.1925$0.1484 $0.1510 $0.1537 $0.1563 $0.1591 $0.1619 $0.1647 $0.1676 $0.1705 $0.1735 $0.1765 $0.1796 $0.1828 $0.1860 $0.1892 $0.1925 $0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067$0.1536 $0.1567 $0.1598 $0.1630 $0.1663 $0.1696 $0.1730 $0.1764 $0.1800 80.1836 90.1872 $0.1910 80.1948 $0.1987 $0.2027 $0.2067 $0.1536 $0.1567 $0.1598 $0.1630 90.1663 $0.1696 $0.1730 $0.1764 $0.1800 $0.1836 $0.1872 $0.1910 $0.1948 $0.1987 $0.2027 $0.2067 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2022 2028 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,00023,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,00029,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,00034,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 2013 2014 2015 2016 2012 2018 2019 2020 2021 2022 2023 2024 2025 2026 2022 2028 $4,452,598 $4,530,518 $4,609,802 $4,690,474 =$4,772,557 $4,856,077 $4,941,058 $5,027,527 $5,115,508 $5,205,030 $5,296,118 $5,388,800 $5,483,104 $5,579,058 $5,676,692 $5,776,034$3,413,658 $3,473,397 $3,534,182 $3,596,030 $3,658,960 $3,722,992 $3,788,145 $3,854,437 $3,921,890 $3,990,523 $4,060,357 =$4,131,413 $4,203,713 $4,277,278 --$4,352,130 $4,428,293$4,499,628 $4,589,620 $4,681,413 $4,775,041 $4,870,542 $4,967,953 $5,067,312 $5,168,658 $5,272,031 $5,377,472 $5,485,021 $5,594,722 $5,706,616 $5,820,749 $5,937,164 $6,055,907$5,314,824 $5,421,120 $5,529,542 $5,640,133 $5,752,936 $5,867,995 $5,985,355 $6,105,062 $6,227,163 $6,351,706 $6,478,740 $6,608,315 $6,740,481 $6,875,291 $7,012,797 $7,153,053 $713,970 $792,402 $869,933 $946,467 -$1,021,899 $1,096,121 $884,308 $950,073 $1,014,160 $1,076,437 $1,136,767 $1,195,006 =$1,251,002 $1,304,601 $1,355,638 $1,403,941 $1,529,166 $1,623,901 $1,718,063 $1,811,559 =$1,904,293 $1,996,163 $1,802,351 $1,886,477 $1,969,292 $2,050,672 $2,130,486 $2,208,599 $2,284,868 $2,359,144 =$2,431,271 $2,501,087 $713,970 $792,402 $869,933 $946,467 --$1,021,899 $1,096,121 $884,308 $950,073 $1,014,160 $1,076,437 $1,136,767 =$1,195,006 $1,251,002 $1,304,601 $1,355,638 $1,403,941$1,529,166 $1,623,901 $1,718,063 $1,811,559 $1,904,293 $1,996,163 $1,802,351 $1,886,477 $1,969,292 $2,050,672 $2,130,486 =$2,208,599 $2,284,868 $2,359,144 $2,431,271 $2,501,087 $0 $0 $0 $0 $0 $0 $0 0 $0 $0 $0 $0 $0 $0 90 $0 $0 $0 0 $0 $0 $0 $0 $0 50 $0 $0 $0 $0 $0 $0 90 $1,903,480 $2,695,881 $3,565,815 $4,512,282 $5,534,180 $6,630,301 $7,514,610 $8,464,683 $9,478,843 $10,555,281 $11,692,048 $12,887,054 $14,138,056 $15,442,657 $16,798,295 $18,202,235$12,390,834 $14,014,735 $15,732,798 $17,544,357 $19,448,649 $21,444,812 $23,247,163 $25,133,640 $27,102,932 $29,153,604 $31,284,090 $33,492,689 $35,777,557 $38,136,700 $40,567,971 $43,069,058 CASEIXpage3 $1,000,000 $500,000 + sO 4 ($500,000) ($1,000,000)- ($1,500,000); Rate Stabilization Fund Balances (9.5%return);($2,000,000)+ $BssgsesegeB8B 8B SFBFESEEC_KCSBBEREEeEBERAHAKRARAB=®&®AA RRRR RAR RRRARARARRRRAARARRAAAR Makushin Costs of Power &Rates so.2000| $0.2400+Cost/RateperkWhgS84+$0.1400+ $0.0900 +--4}---+-_++-+---+--+_+_+_+_+_+-_+_+-_++-_+°_+--+4+t+Ht Ht H+H+PS 2E2 2222 RR BRR RRRRRRERRERSREREEE --®--Contract Wholesale --t}--Whl Cost -0%Load ---@---Whl.Cost -3%LoadRategrowthgrowth --_*_-Integrated Diesel --*-City Cost of Power Rate UW fovG CASE X page } Makushin Geothermal Project:Bonds $97,451,721 Equity:($5,000,000 ROE:10.88%1999 RATES:Heat Rate.13 ETS ELAESTCOT interest rate 750%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1164 1996$/gal:$0.91 .10.88%($4,509,244)$0Term30]-Wellfield:$15,845,000 JRSF MAX-0%:($9,650,119)Unisea:$0.1164 96/kWh fuel $0.0700 NPV PROFIT/ROE:,i $38.736,646Payment($8,251,358)IDC:$1,606,519 |RSF yri0-3%:$0 Westward:$0.1164 96 O&M $0.0350 GROSS PROHT:. Inflation 3.50%Subtotal:$87,287,519]IDC factor;0.25 Net Output:14,000 96 Diesel cost:$0.1050 Debt Service $8,251,358 Reserve:$8,253,384]DSR factors:Plant Factor:0.95 Interest Earnings 7.00%]Cost of Fin:$1,910,818 20 yr.0.109 Line Loss:(1,000)Rate Inflator:2.00% Makushin Growth scenario:3.00%Bond Size:$97,451,721 30 yr.0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 u Energy requirements 1999 2000 2001 2002 2003 2004 2005 2006 2002 2008 200 et aterCity29,402,497 29,402,497 29,402,497 9,402497 29,402,497 «29,402,497 29,402497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29;eee ;Processors 64517503 64517503 64517503 64517503 64,517,503 64517503 64517503 64,517,503 64,517,503 64517503 64,517,503 64,517,508 64,517,503 OF,720,000Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920, Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.0%0.00% i .000 82,293,000MakushinLoad:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293; Makushin Load:Growth 3.00%82,203,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 «$3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672 $3,909,890 other fixed costs 0.00%9 $0 rt)90 $0 $0 9 $0 $0 $0 $0 $0 $0 #0 Variable costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 $0 $0 $0 ca ray .$239,504 $244,204 $249,180 $254,164 $259,247 $264,432 $269,721 $275,115 $280,617 $286,230 $350,345 $357,352 $364,499 $371,789 pital costs debt service $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 interest earned ($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595) Total cost of Makushin Power $10,413,267 $10,505,557 $10,601,005 $10,699,721 $10,801,817 $10,907,410 $11,016,622 $11,129,576 $11,246,403 $11,367,236 $11,550,605 $11,681,039 $11,815,933 $11,955,442A&kev.eq.growth:0.00%$0.1265 $0.1277 $0.1288 $0.1300 $0.1313 $0.1325 $0.1339 $0.1352 $0.1367 $0.1381 $0.1404 $0.1419 $0.1436 $0.1453 vg Rev.Req.@ load growth:3.00%$0.1265 $0.1239 90.1214 $0.1190 $0.1166 90.1143 90.1121 $0.1100 $0.1079 $0.1059 $0.1068 $0.1080 $0,1092 90.1105 Makushin Rates Invator ene 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Wannard20s ;$0.1187 90.1211 $0.1235 $0.1260 $0.1285 90.1311 $0.1337 $0.1364 $0.1391 $0.1419 90.1447 $0.1476 $0.1506 r $0.1164 $0.1187 90.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 $0.1391 90.1419 $0.1447 $0.1476 $0.1506City&Others -load growth:0.00%$0.1164 $0.1187 $0.1211 $0.1235 $0.1260 $0.1285 $0.1311 $0.1337 $0.1364 506City&Others -load growth:3.00%$0 1164 $0 1187 epee oe se aren 13 ..$0.1391 $0.1419 $0.1447 $0.1476 $0.1 STABILIZED RATE:2.00%90.1164 $0.1187 $0.1211 $0.1235 $0.1260 ;2131 501337 13 spigot So tai9 ened eae oe ..;.$0.1285 $0.1311 $0.1337 $0.1364 $0.1391 90.1419 90.1447 $0.1476 90.1506 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004Unisea 2005 2006 2007 2008 2009 2010 20.2012 We wee paponyeed pon.000 30.200/00 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 City &others 0.00%29,293,000 29,203,000 29,293,000 29,293,000 29,293,000 79 293,000 23000 2523000 ahaa,eee 23.000000 23,000,000 23,000,000City&others 300%20,283,000 3176170 daaotes ewe ,293,29,293,000 29,293,000 29,293,000 29,293,000:29,293,000 29,293,000 29,293,000 29,293,000 f 761,304,,600,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1292 2000 2001 2002 2003 2004Unisea 2008 2006 2002 2008 2009Uniesands!5001 $3,533,557 $3,706,228 $3,780,352 $3,855,959 $3,933,079 $4,011,740 $4,091,975 $4,173,815 $4,257,291 e324?$4 420288 $451 an City &others o00%snot es aes ®57 $2541,441 $2,898,270 $2,956,236 $3,015,360 $3,075,668 $3,137,181 $3,199,924 $3,263,923 $3,329,201 «$3,395,785 $3,463,701 City &others pede Satie 5,47,926 $3,618,884 $3,691,262 $3,765,087 $3,840,389 $3,917,197 $3,995,541 $4,075,452 $4,156,961 $4,240,100 $4,324.02 $4,411,400ReturntoRSFund0%load gr.0.'$3,771,512 $4,154,929 $4,274,516 $4,360,006 $4,447,207 $4,536,151 $4,626,874 SA7I9.411 $4,813,799 $4,910,075 $5,008, : gr.0.00%(6833,096)($733,783)($633,796)($533,167)5 "1513,910,008,277 $5,108,442 $5,210,611 ,($431,932)($330,128)($227,794)($124,971)($21,706)$81,955ReturntoRSFund3%load gr.3.00%($833,096)($440,630)($26,793)$122,464 $236,812 $351,991 ,$127,570 $230,699 $334,039 $437,530 Return to Equity 0%load gr.0.00%$0 30 "60 -0 a '$467,968 $584,706 $702,165 $820,303 $880,685 $998,876 $1,117,580 $1,236,742 Return to Equity 3%load gr.3.00%$0 $0 50 50 %bad $0 $0 $0 $0 $0 $0 $0 RSF Balance 0%be $0 $0 $0 $0 $702,165 $820,303 $880,685 $998,876 $1,117,580 $1,236,742ncedgr.0.00%($833,096)($1,646,023)(52,436,191)(63,200,RSF Balance 3%load gr ,646,436,200,797)($3,936,805)($4,640,930)($5,309,611)($5,938,996)($6,524,906)($7,062.81EquityBalance0%load oe $533,056)(1382870 ($1,508,186)($1,528,999)($1,437,442)($1,222,008)($870,130)($368,087)$0 *°..A625 sson8.m aml sennaEquityBalance3%load gr.3.00%be bs ©$0 $0 0 $0 $0 $0 $0 $0 $0 $0 '#0 $0 $0 $0 $0 $702,165 $1,522.467 $2,403,152 $3,402,028 $4,519,608 $5,756, f / 7 15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $379,225 $8,251,358 ($577,595) $12,099,724 $0.1470 $0.1118 2013 $0.1536 $0.1536 $0.1536 $0.1536 $0.1536 $4,608,229 $3,532,975 $4,499,628 $5,314,824 $541,108 $1,356,303 $0 $1,356,303 ($9,211,541) $0 $0 $7,112,653 16 2014 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $0 $0 $386,809 $8,251,358 ($577,595) $12,248,944 $0.1488 $0.1132 2014 $0.1567 $0.1567 $0.1567 $0.1567 $0.1567 $4,700,393 $3,603,635 $4,589,620 $5,421,120 $644,704 $1,476,204 $0 $1,476,204 ($9,441,934) $0 $0 $8,588,857 0.00% 82,293,000 108,186,000 $4,334,965 $394,546 $8,251,358 ($577,595) $12,403,273 $0.1507 $0.1146 2015 $0.1598 $0.1598 $0.1598 $0.1598 $0.1598 $4,794,401 $3,675,707 $4,681,413 $5,529,542 $748,248 $1,596,377 $0 $1,596,377 ($9,590,669) $0 $0 $10,185,234 18 2016 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,486,689 $402,437 $8,251,358 ($577,595) $12,562,888 $0.1527 $0.1161 2016 $0.1630 $0.1630 $0.1630 $0.1630 $0.1630 $4,890,289 $3,749,222 $4,775,041 $5,640,133 $851,664 $1,716,756 $0 $1,716,756 ($9,650,219) $0 $0 $11,901,990 19 2017 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,643,723 $0 9 $410,485 $8,251,358 ($577,595) $12,727,971 $0.1547 $0.1176 2017 $0.1663 $0.1663 $0.1663 90.1663 $0.1663 2012 $4,988,095 $3,824,206 $4,870,542 $5,752,936 $954,872 $1,837,266 $9 $1,837,266 ($9,612,009) $0 $0 $13,739,256 20 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $418,695 $8,251,358 ($577,595) $12,898,711 $0.1567 $0.1192 2018 $0.1696 $0.1696 $0.1696 $0.1696 $0.1696 $5,087,857 $3,900,690 $4,967,953 $5,867,995 $1,057,789 $1,957,831 $0 $1,957,831 ($9,467,361) $0 $0 $15,697,086 21 2019 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 $0 $0 $711,781 $8,251,358 ($577,595) $13,360,016 $0.1623 $0.1235 2019 $0.1730 $0.1730 $0.1730 $0.1730 $0.1730 2019 30,000,000 23,000,000 29,293,000 34,600,000 2n9 $5,189,614 $3,978,704 $5,067,312 $5,985,355 $875,613 $1,793,656 $0 $1,793,656 ($9,491,147) $0 $0 $17,490,742 2 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 2020 $0.1764 $0.1764 $0.1764 $0.1764 $0.1764 2020 30,000,000 23,000,000 29,293,000 34,600,000 2020 $5,293,406 $4,058,278 $5,168,658 $6,105,062 $971,984 $1,908,387 $0 $1,908,387 ($9,420,822) $0 $0 $19,399,130 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $740,537 $8,251,358 ($577,595) $13,743,079 $0.1670 $0.1270 2021, $0.1800 $0.1800 $0.1800 $0.1800 $0.1800 $5,399,274 $4,139,444 $5,272,031 $6,227,163 $1,067,670 $2,022,802 $0 $2,022,802 ($9,248,130) $0 $0 $21,421,931 2 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,515,286 9 $0 $755,348 $8,251,358 ($577,595) $13,944,397 $0.1694 $0.1289 2022 $0.1836 $0.1836 $0.1836 90.1836 90.1836 $5,507,260 $4,222,232 $5,377,472 $6,351,706 $1,162,567 $2,136,801 $0 $2,136,801 ($8,964,135) $0 $0 $23,558,732 25 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,708,321 90 $0 $770,455 $8,251,358 ($577,595) $14,152,539 $0.1720 $0.1308 20233 $0.1872 $0.1872 $0.1872 $0.1872 $0.1872 $5,617,405 $4,306,677 $5,485,021 $6,478,740 $1,256,564 $2,250,283 $0 $2,250,283 ($8,559,164) $0 $0 $25,809,016 26 2024 29,402,497 64517503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $785,864 $8,251,358 ($577,595) $14,367,739 $0.1746 $0.1328 2024 $0.1910 $0.1910 $0.1910 $0.1910 $0.1910 2024 30,000,000 23,000,000 29,293,000 34,600,000 2024 $5,729,753 $4,392,811 $5,594,722 $6,608,315 $1,349,546 $2,363,139 $0 $2,363,139 ($8,022,739) $0 $0 $28,172,155 be 2 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 $0 $801,582 $8,251,358 ($577,595) $14,590,241 $0.1773 $0.1349 2035 $0.1948 $0.1948 $5,844,348 $4,480,667 $5,706,616 $6,740,481 $1,441,390 $2,475,256 $0 $2,475,256 ($7,343,508) $0 $0 $30,647,411 2B 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $0 $0 $817,613 $8,251,358 ($577,595) $14,820,294 $0.1801 $0.1370 2026 $0.1987 $0.1987 $0.1987 $0.1987 $0.1987 $5,961,235 $4,570,280 $5,820,749 $6,875,291 $1,531,970 $2,586,513 $0 $2,586,513 ($6,509,171) $0 $0 $33,233,923 29 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,550,430 $833,965 $8,251,358 ($577,595) $15,058,158 $0.1830 $0.1392 $6,080,460 $4,661,686 $5,937,164 $7,012,797 $1,621,151 $2,696,784 $0 $2,696,784 ($5,506,392) $0 $0 $35,930,707 CASE X page 2 30 2028 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,779,695 $850,645 $8,251,358 ($577,595) $15,304,102 $0.1860 $0.1415 2028 $0.2067 $0.2067 $0.2067 $0.2067 $0.2067 2028 30,000,000 23,000,000 29,293,000 34,600,000 2028 $6,202,069 $4,754,919 $6,055,907 $7,153,053 $1,708,793 $2,805,939 $0 $2,805,939 ($4,320,706) $0 $0 $38,736,646 Rate Stabilization Fund Balances (9.5%return) $1,000,000 y------eo eee eee ee eee ee eee ne eee eee eee meen ee noes eee Ee eee eee eu oe eee ee nana aen ante ($1,000,000)Pyg--22-222-eee ergs ($3,000,000)+----.-.-> ($5,000,000)+----------e2eeeeeems ($7,000,000)f-------202eeeeceesaeteeecneeeet ($9,000,000)+ we occ ee eee ce cee e cee w ee ee nen eee eeenaneeeee Rate of Growth =Makushin Lea -#-0.00%--®-3.00% ($11,000,000)-19992000$0.2900 $0.2400 Cost/RateperkWh&rr)s25$0.0900 Makushin Costs of Power &Rates SSS SS SS RSERRSZRRRRBRRRRRERRRRRERKRARREA ---_®--Contract Wholesale ------Whl.Cost -0%Load --®--Wh.Cost -3%Load Rate growth growth --*_-Integrated Diesel --*-City Cost of Power Rate aW AonGq CASE XI page 1MakushinGeothermalProject:[Bonds $103,138,613 Equity:$0 ROE:0.00%1999 RATES:[Heat Rate:13 Interest rate 750%Plant:$74,836,000 JRSF RETURN 9.50%Stabilized:$0.1220 1996$/gal:$0.91 Discount Rate Q%LoadGr 3%LoadCrTerm30Wellfield:$15,845,000 [RSF MAX-0%:($18,785,821)Unisea:$0.1220 96/kWh fuel $0.0700 NPV PROFIT/ROE:0.00%$0 $34,299,271 [Payment ($8,732,874)IDC:-$1,700,269 ]RSF yr10-3%:$0 Westward:$0.1220 96 O&M $0.0400 GROSS PROFIT:$0 $34,299,271 Inflation 3.50%Subtotal:$92,381,269]IDC factor;0.25 Net Output:14,000 96 Diesel cost:$0.1100 Debt Service $8,732,874 Reserve:$8,735,018}DSR factors:Plant Factor:0.95 Interest Earnings (r minus50bp.7.00%)Cost of Fin:$2,022,326 20 yr:0.109 Line Loss:(1,000)Rate Inflator:1.75% [Makushin Growth scenario:3.00%Bond Size:$103,138,613 30 yr:0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 1999 2000 2001 2002 2003 2004 2005 2006 -2007 2008 2009 2010 2011 City 29,402,497 29,402,497 29,402,497:29,402,497 29,402,497 29,402,497 29,402,497:29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Makushin Load:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 =:108,186,000 =:108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672otherfixedcosts0.00%9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 royalty $250,909 $255,927 $261,046 $266,267 $271,592 $277,024 $282,565 $288,216 $293,980 $299,860 $367,028 $374,369 $381,856 Capital costs debt service $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 $8,732,874 interest earned ($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301)($611,301) Total Cost of Makushin Power $10,872,482 $10,965,000 $11,060,681 $11,159,634 $11,261,972 $11,367,812 $11,477,276 =$11,590,487 =$11,707,575 $11,828,676 $12,015,098 $12,145,866 $12,281,101AvgRev.Req.@ load growth:0.00%$0.1321 $0.1332 $0.1344 $0.1356 $0.1369 $0.1381 $0.1395 $0.1408 $0.1423 $0.1437 $0.1460 $0.1476 $0.1492 Avg Rev.Req.@ load growth:3.00%$0.1321 $0.1294 $0.1267 $0.1241 $0.1216 $0.1192 $0.1168 $0.1145 $0.11233 $0.1102 $0.1111 $0.1123 $0.1135 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Unisea1.75%$0.1220 $0.1241 $0.1263 $0.1285 $0.1307 $0.1330 $0.1353 $0.1377 $0.1401 $0.1426 $0.1451 $0.1476 $0.1502 Westward 1.75%$0.1220 $0.1241 $0.1263 $0.1285 $0.1307 $0.1330 $0.1353 $0.1377 $0.1401 $0.1426 $0.1451 $0.1476 $0.1502 City &Others -load growth:0.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 City &Others -load growth:3.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 STABILIZED RATE:2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 Westward 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000City&others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000City&others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea $3,658,769 $3,722,797 $3,787,946 $3,854,235 $3,921,685 $3,990,314 $4,060,145 $4,131,197 $4,203,493 $4,277,054 $4,351,903 $4,428,061 $4,505,552 Westward $2,805,056 $2,854,145 $2,904,092 $2,954,914 $3,006,625 $3,059,241 $3,112,777 $3,167,251 $3,222,678 $3,279,075 $3,336,459 $3,394,847 $3,454,257 City &others 0.00%$8,572,544 $3,643,995 $3,716,875 $3,791,212 $3,867,037 $3,944,377 $4,023,265 $4,103,730 $4,185,805 $4,269,521 $4,354,911 $4,442,009 $4,530,850 City &others 3.00%$3,572,544 $3,951,108 $4,352,783 $4,478,065 $4,567,626 $4,658,978 $4,752,158 $4,847,201 $4,944,145 $5,043,028 $5,143,889 $5,246,766 $5,351,702ReturntoRSFund0%load gr.0.00%($836,113)($744,063)($651,768)($559,273)($466,626)($373,880)($281,089)($188,308)($95,600)($3,026)$28,175 $119,051 $209,558 Return to RSFund 3%load gr.3.00%($836,113)($436,950)($15,860)$127,580 $233,963 $340,721 $447,804 $555,163 $662,741 $770,481 $817,152 $923,808 $1,030,410ReturntoEquity0%load gr.0.00%$0 $0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 $0 0 $0 $0 $0 $0 $662,741 $770,481 $817,152 $923,808 $1,030,410 RSF Balance 0%load gr.0.00%($836,113)(61,659,606)(62,469,037)($3,262,868)($4,039,467)($4,797,096)($5,533,909)($6,247,939)($6,937,093)($7,599,143)($8,292,887)($8,961,660)($9,603,460) RSF Balance 3%load gr.3.00%($836,113)($1,352,494)($1,496,840)($1,511,460)($1,421,086)($1,215,369)($883,024)($411,749)$0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $0 $662,741 $1,433,222 $2,250,374 $3,174,182 $4,204,592 "4 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 $389,493 $8,732,874 ($611,301) $12,420,956 $0.1509 $0.1148 2012 $0.1528 $0.1528 $0.1578 $0.1578 $0.1578 $4,584,399 $3,514,706 $4,621,467 $5,458,736 $299,616 $1,136,885 $0 $1,136,885 ($10,216,173) $0 $0 $5,341,476 "15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $397,283 $8,732,874 ($611,301) $12,565,592 $0.1527 $0.1161 2013 $0.1555 $0.1555 $0.1609 $0.1609 $0.1609 $4,664,626 $3,576,213 $4,713,896 $5,567,910 $389,143 $1,243,158 $0 $1,243,158 ($10,797,566) $0 $0 $6,584,634 16 2014 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $0 $0 $405,229 $8,732,874 ($611,301) $12,715,174 $0.1545 $0.1175 2014 $0.1582 $0.1582 $0.1641 90.1641 $0.1641 $4,746,257 $3,638,797 $4,808,174 $5,679,269 $478,054 $1,349,149 $0 $1,349,149 ($11,345,281) 9 $0 $7,933,783 17 2015 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,334,965 $413,334 $8,732,874 ($611,301) $12,869,871 $0.1564 $0.1190 2015 $0.1610 $0.1610 $0.1674 $0.1674 $0.1674 $4,829,317 $3,702,476 $4,904,337 $5,792,854 $566,259 $1,454,775 bY $1,454,775 ($11,856,824) 90 $0 $9,388,558 0.0% 82,293,000 108,186,000 $4,486,689 $471,600 $8,732,874 ($611,301) $13,029,862 $0.1583 $0.1204 2016 $0.1638 $0.1638 $0.1708 $0.1708 $0.1708 2016 30,000,000 23,000,000 29,293,000 34,600,000 2016 $4,913,830 $3,767,269 $5,002,424 $5,908,711 $653,661 $1,559,948 $0 $1,559,948 ($12,329,561) $0 $0 $10,948,507 19 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,643,723 0 9 $430,032 $8,732,874 ($611,301) $13,195,328 $0.1603 $0.1220 2017 $0.1667 $0.1667 $0.1742 $0.1742 $0.1742 $4,999,822 $3,833,197 $5,102,473 $6,026,885 $740,163 $1,664,576 $0 $1,664,576 ($12,760,706) 90 $0 $12,613,082 20 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $0 $0 $438,633 $8,732,874 ($611,301) $13,366,459 $0.1624 $0.1236 23,000,000 29,293,000 34,600,000 2018 $5,087,319 $3,900,278 $5,204,522 $6,147,423 $825,659 $1,768,560 $0 $1,768,560 ($13,147,314) $0 $0 $14,381,642 21 2019 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 $0 $0 $745,676 $8,732,874 ($611,301) $13,841,721 $0.1682 $0.1279 2019 $0.1725 $0.1725 $0.1812 $0.1812 $0.1812 $5,176,347 $3,968,532 $5,308,612 $6,270,371 $611,771 $1,573,530 $0 $1,573,530 ($13,784,538) 90 $0 $15,955,172 2 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,148,579 $760,589 $8,732,874 ($611,301) $14,030,741 $0.1705 $0.1297 2020 $0.1756 $0.1756 $0.1848 $0.1848 $0.1848 2020 30,000,000 23,000,000 29,293,000 34,600,000 2020 $5,266,933 $4,037,982 $5,414,785 $6,395,779 $688,958 $1,669,953 $0 $1,669,953 ($14,405,110) $0 $0 $17,625,125 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $775,801 $8,732,874 ($611,301) $14,226,153 $0.1729 $0.1315 $5,359,104 $4,108,646 $5,523,080 $6,523,694 $764,678 $1,765,292 $0 $1,765,292 ($15,008,918) $0 $0 $19,390,417 a 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,515,286 $791,317 $8,732,874 ($611,301) $14,428,176 $0.1753 $0.1334 2022 $0.1818 90.1818 $0.1923 $0.1923 $0.1923 $5,452,888 $4,180,548 $5,633,542 $6,654,168 $838,802 $1,859,428 EU $1,859,428 ($15,595,963) $0 $0 $21,249,845 25 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,708,321 $0 $0 $807,144 $8,732,874 ($611,301) $14,637,037 $0.1779 $0.1353 2023 $0.1849 $0.1849 $0.1962 $0.1962 $0.1962 223 30,000,000 23,000,000 29,293,000 34,600,000 2023 $5,548,314 $4,253,707 $5,746,213 $6,787,252 $911,197 $1,952,235 $0 $1,952,235 ($16,166,383) $0 $0 $23,202,081 26 2024 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $823,286 $8,732,874 ($611,301) $14,852,971 $0.1805 $0.1373 2024 $0.1882 $0.1882 $0.2001 $0.2001 $0.2001 $5,645,409 $4,328,147 $5,861,137 $6,922,997 $981,722 $2,043,582 $0 $2,043,582 ($16,720,467) $0 $0 $25,245,662 7 2025 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 $0 $839,752 $8,732,874 ($611,301) $15,076,221 $0.1832 $0.1394 2025 $0.1915 $0.1915 $0.2041 $0.2041 $0.2041 $5,744,204 $4,403,890 $5,978,360 $7,061,457 $1,050,232 $2,133,329 $0 $2,133,329 ($17,258,679) $0 $0 $27,378,992 b..) 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $0 $0 $856,547 $8,732,874 ($611,301) $15,307,038 $0.1860 $0.1415 2026 $0.1948 $0.1948 $0.2082 $0.2082 $0.2082 $5,844,728 $4,480,958 $6,097,927 $7,202,686 $1,116,575 $2,221,334 $0 $2,221 334 ($17,781,679) $0 $0 $29,600,325 CASE XI page 2 29 30 2022 2028 29,402,497 29,402,49764,517,503 64,517,50393,920,000 93,920,0000.00%0.00% 82,293,000 82,293,000 108,186,000 108,186,000 $6,550,430 $6,779,695 $873,678 $891,152 $8,732,874 $8,732,874($611,301)($611,301) $15,545,681 $15,792,419 $0.1889 $0.1919 $0.1437 $0.1460 2027 2028 $0.1982 $0.2017 $0.1982 $0.2017 $0.2123 $0.2166 $0.2123 90.2166 90.2123 $0.2166 2022 2028 $5,947,010 $6,051,083$4,559,375 $4,639,164 $6,219,886 $6,344,283 $7,346,740 $7,493,674$1,180,590 $1,242,111$2,307,444 $2,391,502 0 $0 $2,307,444 $2,391,502 ($18,290,349)($18,785,821) $0 $0 $0 $0 $31,907,769 $34,299,271 CASE XI page 3 ($3,000,000)+------3s (85,000,000)+--------.--2.-207 ($7,000,000)4---------02-2cecereeeeeeeee Rate Stabilization Fund Balances (9.5%return) ($9,000,000)$----202 eeseece ee ee eter eee ee eco eene ee ne ney ($11,000,000)+ ($13,000,000)+ ($15,000,000)+ ($17,000,000)+ ($19,000,000)+ Rate of Growth -Makushin Load --#--0.00%--*-3.00%| $0.2900 + $0.2400 +Cost/RateperkWh$38s3Makushin Costs of Power &Rates 80.0900 tt}-}-$}--}-$$$$}ptt ttt tt ttt ttt SSRSSRERERRERESRSSRRRRRERRERRERERSREREERS --®-Contract Wholesale ---O--Whl.Cost -0%Load ----@--Whl Cost -3%Load Rate growth growth Rate --*X--Integrated Diesel --*-City Cost of Power Ww het& pc) 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 $0 $0 $389,493 $8,251,358 ($577,595) $11,973,146 $0.1455 $0.1107 2012 $0.1428 $0.1428 $0.1578 $0.1578 $0.1578 $4,283,349 $3,283,901 $4,621,467 $5,458,736 $215,570 $1,052,839 $0 $1,052,839 ($3,335,157) $0 $0 Makushin Geothermal Project:CASE XIII page 1[Bonds $97,451,721 Equity:($5,000,000)ROE:11.59%1999 RATES:Heat Rate:13 Interest rate 750%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1220 1996$/galk:$0.91 DiscountRate 0%LoadGr 3%LoadGrTerm30Wellfield:$15,845,000 [RSF MAX-0%:($5,000,000)Unisea:$0.1220 96/kWh fuel $0.0700 NPV PROFIT/ROE:=11.59%($4,480,694)$0 Payment ($8,251,358)IDC:-$1,606,519 |RSF yr10-3%:$0 Westward:$0.1220 96 O&M $0.0400 GROSS PROFIT:($5,000,000)$28,457,815 Inflation 3.50%Subtotal:$87,287,519]IDC factor:0.25 Net Output:14,000 96 Diesel cost:$0.1100 Debt Service $8,251,358 Reserve:$8,253,384 |DSR factors:Plant Factor:0.95 Interest Earnings (r minusS0bp 7.00%]Cost of Fin:$1,910,818 20 yr:0.109 Line Loss:(1,000)Rate Inflator:1.22% 'Makushin Growth scenario:3.00%Bond Size:$97,451,721 30 yr:0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 122 13 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20 City 29,402,497 29,402,497.29,402,497,29,402,497 29,402,497 29,402,497 29,402497 29,402,497 20,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64517503645175036451750364,517,503 64,517,503 64,517,503 64517503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 Total 93,920,000 93,920,000 93,920,000 +93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 --82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 Makushin Load:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 -_$3,073,138 $3,180,698 $3,292,023 $3,407,243 =$3,526,497 $3,649,924 $3,777,672 other fixed costs 0.00%0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 $0 $0 $0 90 90 $0 $0 $0 $0 $0 $0 royalty $250,909 $255,927 $261,046 $266,267 $271,592 $277,024 $282,565 $288,216 $293,980 $299,860 $367,028 $374,369 $381,856 Capital costs debt service $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 $8,251,358 interest earned ($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595)($577,595) Total Cost of Makushin Power $10,424,672 $10,517,190 $10,612,871 $10,711,824 $10,814,162 $10,920,002 $11,029,465 $11,142,677 $11,259,765 $11,380,866 $11,567,288 $11,698,056 $11,833,291 Avg Rev.Req.@ load growth:0.00%$0.1267 $0.1278 $0.1290 $0.1302 $0.1314 $0.1327 $0.1340 $0.1354 90.1368 $0.1383 $0.1406 $0.1422 $0.1438 Avg Rev.Req.@ load growth:3.00%$0.1267 $0.1241 $0.1216 $0.1191 $0.1168 $0.1145 $0.1122 $0.1101 $0.1080 $0.1060 $0.1069 $0.1081 $0.1094 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 1.22%$0.1220 $0.1234 $0.1250 $0.1265 $0.1280 $0.1296 $0.1312 $0.1328 $0.1344 $0.1360 $0.1377 $0.1394 $0.1411 Westward 1.22%$0.1220 $0.1234 $0.1250 $0.1265 $0.1280 $0.1296 $0.1312 $0.1328 90.1344 $0.1360 $0.1377 $0.1394 $0.1411 City &Others-load growth:0.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 City &Others -load growth:3.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 90.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 STABILIZED RATE:2.00%$0.1220 $0.1244 $0.1269 $0.1294 $0.1320 $0.1347 $0.1373 $0.1401 $0.1429 $0.1458 $0.1487 $0.1516 $0.1547 Makushin Sales-kWh 19 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 City &others 0.00%29,293,000 29,293,000 29,293,000 +29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 City &others 3.00%29,293,000 31,761,790 34,304,644 =34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 199 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea $3,658,769 $3,703,397 $3,748,569 $3,794,292 $3,840,573 $3,887419 $3,934,835 $3,982,831 $4,031,411 $4,080,584 $4,130,357 $4,180,737 $4,231,732 Westward $2,805,056 $2,839,271 $2,873,903 $2,908,957 $2,944,439 $2,980,354 =$3,016,707 $3,053,503 $3,090,749 =$3,128,448 =$3,166,607,$3,205,232 $3,244,328 City &others 0.00%$3,572,544 $3,643,995 $3,716,875 $3,791,212 $3,867,087 $3,944,377.$4,023,265 $4,103,730 $4,185,805 $4,269,521 $4,354,911 $4,442,009 $4,530,850 City &others 3.00%$3,572,544 $3,951,108 $4,352,783 $4,478,065 $4,567,626 $4,658,978 $4,752,158 $4,847,201 $4,944,145 =$5,043,028 +--$5,143,889 $5,246,766 $5,351,702 Return to RSFund 0%load gr.0.00%($388,303)($330,527)($273,524)($217,362)($162,113)($107,852)($54,658)($2,612)$48,199 $97,688 $84,588 $129,923 $173,619 Return to RSFund 3%load gr.3.00%($388,303)($23,414)$362,384 $469,490 $538,476 $606,749 $674,235 $740,859 $806,540 $871,195 $873,565 $934,680 $994,471 Return to Equity 0%load gr.0.00%$0 $0 $0 $0 $0 $0 AU $0 $0 $0 $0 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 fi]$469,490 $538,476 $606,749 $674,235 $740,859 $806,540 $871,195 $873,565 $934,680 $994,471 RSF Balance 0%load gr.0.00%($388,303)($755,719)($1,101,036)($1,422,997)($1,720,295)($1,991,575)($2,235,433)($2,450,411)($2,635,001)($2,787,639)($2,967,876)($3,119,901)($3,242,673) RSF Balance 3%load gr.3.00%($388,303)($448,606)($128,840)$0 $0 $0 $0 $0 9 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $469,490 $1,007,966 $1,614,715 $2,288,950 $3,029,809 $3,836,348 $4,707,543 $5,581,109 $6,515,789 $7,510,260 $8,563,098 15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $397,283 $8,251,358 ($577,595) $12,117,782 $0.1473 $0.1120 2013 $0.1445 $0.1445 $0.1609 $0.1609 $0.1609 $4,335,595 $3,323,956 $4,713,896 $5,567,910 $255,665 $1,109,679 $0 $1,109,679 ($3,396,333) $0 $0 $9,672,777 16 2014 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $0 $0 $405,229 $8,251,358 ($577,595) $12,267,364 $0.1491 $0.1134 2014 $0.1463 $0.1463 $0.1641 $0.1641 $0.1641 $4,808,174 $5,679,269 $293,789 $1,164,883 $0 $1,164,883 ($3,425,196) $0 $0 $10,837,661 17 2015 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,334,965 $413,334 $8,251,358 ($577,595) $12,422,061 $0.1509 $0.1148 2015 $0.1481 $0.1481 $0.1674 $0.1674 $0.1674 $4,442,007 $3,405,539 $4,904,337 $5,792,854 $329,821 $1,218,338 $0 $1,218,338 ($3,420,768) $0 $9 $12,055,999 18 2016 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,486,689 $421,600 $8,251,358 ($577,595) $12,582,052 $0.1529 $0.1163 2016 $0.1499 $0.1499 $0.1708 $0.1708 $0.1708 $4,496,188 $3,447,078 $5,002,424 $5,908,711 $363,638 $1,269,925 $0 $1,269,925 ($3,382,102) $0 $0 $13,325,924 19 201Z 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,643,723 $0 $0 $430,032 $8,251,358 ($577,595) $12,747,518 $0.1549 $0.1178 2017 $0.1517 $0.1517 $0.1742 $0.1742 $0.1742 2017 30,000,000 23,000,000 29,293,000 34,600,000 2012 $4,551,030 $3,489,123 $5,102,473 $6,026,885 $395,109 $1,319,521 $0 $1,319,521 ($3,308,294) $0 $0 $14,645,445 20 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $0 $0 $438,633 $8,251,358 ($577,595) $12,918,649 $0.1570 $0.1194 2018 $0.1536 $0.1536 $0.1777 $0.1777 $0.1777 2018 30,000,000 23,000,000 29,293,000 34,600,000 2018 $4,606,542 $3,531,682 $5,204,522 $6,147,423 $424,097 $1,366,998 $0 $1,366,998 ($3,198,484) $0 $0 $16,012,443 21 2019 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 $0 $0 $745,676 $8,251,358 ($577,595) $13,393,911 $0.1628 $0.1238 2019 $0.1554 $0.1554 $0.1812 $0.1812 0.1812 $4,662,730 $3,574,760 $5,308,612 $6,270,371 $152,192 $1,113,951 $0 $1,113,951 ($3,350,149) $0 $0 $17,126,394 2 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,148,579 $760,589 $8,251,358 ($577,595) $13,582,931 $0.1651 $0.1256 2020 $0.1573 $0.1573 $0.1848 $0.1848 $0.1848 2020 30,000,000 23,000,000 29,293,000 34,600,000 2020 $4,719,604 $3,618,363 $5,414,785 $6,395,779 $169,821 $1,150,815 $0 $1,150,815 ($3,498,592) bu $0 $18,277,209 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $775,801 $8,251,358 ($577,595) $13,778,343 $0.1674 $0.1274 2021 $0.1592 $0.1592 $0.1885 $0.1885 $0.1885 2021 30,000,000 23,000,000 29,293,000 34,600,000 2021 $4,777,171 $3,662,498 $5,523,080 $6,523,694 $184,407 $1,185,021 $0 $1,185,021 ($3,646,552) $0 $0 $19,462,230 24 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,515,286 $791,317 $8,251,358 ($577,595) $13,980,366 $0.1699 $0.1292 2022 $0.1612 $0.1612 $0.1923 $0.1923 $0.1923 $4,835,441 $3,707,171 $5,633,542 $6,654,168 $195,788 $1,216,414 $0 $1,216,414 ($3,797,186) $0 $0 $20,678,644 3 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,708,321 $0 $0 $807,144 $8,251,358 ($577,595) $14,189,227 $0.1724 $0.1312 203 $0.1631 $0.1631 $0.1962 $0.1962 $0.1962 2023 30,000,000 23,000,000 29,293,000 34,600,000 2023 $4,894,421 $3,752,390 $5,746,213 $6,787,252 $203,796 $1,244,835 $0 $1,244,835 ($3,954,123) $0 $0 $21,923,479 26 2024 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $823,286 $8,251,358 ($577,595) $14,405,161 $0.1750 $0.1332 2024 $0.1651 $0.1651 $0.2001 $0.2001 $0.2001 2024 30,000,000 23,000,000 29,293,000 34,600,000 2024 $4,954,121 $3,798,159 $5,861,137 $6,922,997 $208,256 $1,270,115 $0 $1,270,115 ($4,121,508) $0 $0 $23,193,595 27 2025 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 bt) $839,752 $8,251,358 ($577,595) $14,628,411 $0.1778 $0.1352 2025 $0.1672 $0.1672 $0.2041 $0.2041 $0.2041 2025 30,000,000 23,000,000 29,293,000 34,600,000 PAPA} $5,014,549 $3,844,487 $5,978,360 $7,061,457 $208,985 $1,292,082 $0 $1,292,082 ($4,304,067) $0 $0 $24,485,676 3B 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $0 $0 $856,547 $8,251,358 ($577,595) $14,859,228 $0.1806 $0.1373 2026 $0.1692 $0.1692 $0.2082 $0.2082 $0.2082 2026 30,000,000 23,000,000 29,293,000 34,600,000 2026 $5,075,714 $3,891,381 $6,097,927 $7,202,686 $205,794 $1,310,553 $0 $1,310,553 ($4,507,159) $0 $0 $25,796,229 29 2027 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,550,430 $873,678 $8,251,358 ($577,595) $15,097,871 $0.1835 $0.1396 2027 $0.1713 $0.1713 $0.2123 $0.2123 $0.2123 $5,137,625 $3,938,846 $6,219,886 $7,346,740 $198,486 $1,325,340 $0 $1,325,340 ($4,736,854) $0 $0 $27,121,569 CASE XIII page 2 30 2028 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,779,695 $891,152 $8,251,358 ($577,595) $15,344,609 $0.1865 $0.1418 2028 $0.1733 $0.1733 $0.2166 $0.2166 $0.2166 2028 30,000,000 23,000,000 29,293,000 34,600,000 2028 $5,200,291 $3,986,890 $6,344,283 $7,493,674 $186,855 $1,336,246 $0 $1,336,246 ($5,000,000) $0 $0 $28,457,815 CASE XII page3 $1,000,000 oo 4 ($1,000,000)+ ($2,000,000)+ ($3,000,000)+ Rate Stabilization Fund Balances (9.5%return) rowth -Makushin Load ($4,000,000)- ($5,000,000)+ --0.0%--#-3.00% ($6,000,000)- $0.2900 + $0.2400 +Cost/RateperkWh)3S8488$0.0900 Makushin Costs of Power &Rates tSe Ter ne On|eeeseseeseypegzeegeraeezerreeaggeReeBesnanRBSPeSeRRRERERRRRERRRERRRRRRERRRERRRRAARRAR --®-Contract Wholesale --}--WhlL Cost -0%Load ---@-Whl.Cost -3%LoadRategrowthgrowth ---H--Integrated Diesel --*-City Cost of Power Rate "4 2012 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $3,909,890 $354,085 $7,769,841 ($543,889) $11,489,928 $0.1396 $0.1062 2012 $0.1528 $0.1528 $0.1434 $0.1434 $0.1434 $4,585,140 $3,515,274 $4,201,333 $4,962,487 $811,819 $1,572,973 $0 $1,572,973 ($5,410,860) $0 $0 $7,975,311 Won G Makushin Geothermal Project:CASE XIV page 1 Bonds $91,764,829 Equity:($10,000,000.ROE:3.56%1999 RATES,Heat Rate:13 Interest rate 750%Plant:$74,836,000 [RSF RETURN 9.50%Stabilized:$0.1109 1996 $/gal:$0.91 DiscountRate Q%LoadGr,3%LoadGrTerm30Wellfield:$15,845,000 [RSF MAX-0%:($5,802,595)Unisea:$0.1109 96/kWh fuel $0.0700 NPV PROFIT /ROE:356%$0 $14,813,475 Payment ($7,769,841)IDC:-$1,512,769 |RSF yr10-3%:$0 Westward:$0.1109 96 O&M.$0.0300 GROSS PROFIT:$24,373,839 $53,054,563 Inflation 3.50%|Subtotal:$82,193,769 IDC factor;0.25 Net Output:14,000 96 Diesel cost:60.1000 Debt Service $7,769,841 Reserve:$7,771,750 DSR factors:Plant Factor:0.95 Interest Earnings (r minus50bp 7.00%]Cost of Fins $1,799,310 20 yr:0.109 Line Loss:(1,000)Rate Inflator:2.50% [Makushin Growth scenario:3.00%!Bond Size:$91,764,829 30 yr.0.0927 Max Ann Engy 108,186,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 Energy requirements 199 2000 2001 2002 2003 2004 2005 2006 207 2008 2009 2010 2011 City 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497 29,402,497Processors64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503 64,517,503Total93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 93,920,000 Growth Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Makushin Load:Growth 0.00%82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000 82,293,000MakushinLoad:Growth 3.00%82,293,000 84,761,790 87,304,644 89,923,783 92,621,497 95,400,141 98,262,146 101,210,010 104,246,310 107,373,700 108,186,000 108,186,000 +-108,186,000 CostofPowerFixedcosts fixed operating costs 3.50%$2,500,000 $2,587,500 $2,678,063 $2,771,795 $2,868,808 $2,969,216 $3,073,138 $3,180,698 $3,292,023 $3,407,243 $3,526,497 $3,649,924 $3,777,672otherfixedcosts0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable costs fluid fees $0 $0 bs)$0 $0 90 $0 $0 $0 $0 $0 80 $0 royalty $228,099 $232,661 $237,315 $242,061 $246,902 $251,840 $256,877 $262,014 $267,255 $272,600 $333,662 $340,335 $347,142 Capital costs debt service $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 $7,769,841 interest earned ($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889)($543,889) Total Cost of Makushin Power $9,954,052 $10,046,114 $10,141,330 $10,239,808 =$10,341,662 $10,447,008 $10,555,968 $10,668,665 $10,785,230 $10,905,796 $11,086,112 $11,216,212 $11,350,766AvgRev.Req.@ load growth:0.00%$0.1210 $0.1221 $0.1232 $0.1244 $0.1257 $0.1269 $0.1283 $0.1296 $0.1311 $0.1325 $0.1347 $0.1363 $0.1379 Avg Rev.Req.@ load growth:3.00%$0.1210 $0.1185 $0.1162 $0.1139 $0.1117 $0.1095 $0.1074 $0.1054 $0.1035 $0.1016 $0.1025 $0.1037 $0.1049 Makushin Rates Inflator Entry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unisea 2.50%$0.1109 $0.1136 0.1165 90.1194 $0.1224 $0.1254 $0.1286 $0.1318 $0.1351 $0.1385 $0.1419 $0.1455 $0.1491 Westward 2.50%$0.1109 $0.1136 $0.1165 $0.1194 $0.1224 $0.1254 $0,1286 $0.1318 $0.1351 $0.1385 $0.1419 $0.1455 $0.1491 City &Others -load growth:0.00%$0.1109 $0.1131 $0.1154 $0.1177 $0.1200 $0.1224 $0.1249 $0.1274 $0.1299 $0.1325 $0.1352 $0.1379 $0.1406 City &Others load growth:3.00%$0.1109 $0.1131 $0.1154 $0.1177 $0.1200 $0.1224 $0.1249 $0.1274 $0.1299 $0.1325 $0.1352 $0.1379 $0.1406 STABILIZED RATE:2.00%$0.1109 $0.1131 $0.1154 $0.1177 $0.1200 $0.1224 $0.1249 $0.1274 $0.1299 $0.1325 $0.1352 $0.1379 $0.1406 Makushin Sales -kWh 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Unisea 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000Westward23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000 23,000,000City&others 0.00%29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000 29,293,000City&others 3.00%29,293,000 31,761,790 34,304,644 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 34,600,000 Makushin Revenues 199 2000 2001 2002 2003 2004 2006 2002 2008 2009 2010 2011 Unisea $3,326,154 $3,409,307 $3,494,540 $3,581,904 $3,671,451 $3,763,238 $3,857,318 $3,953,751 $4,052,595 $4,153,910 $4,257,758 $4,364,202 $4,473,307Westward$2,550,051 $2,613,802 $2,679,147 $2,746,126 $2,814,779 $2,885,149 $2,957,277 $3,031,209 $3,106,990 $3,184,664 $3,264,281 $3,345,888 $3,429,535 City &others 0.00%$3,247,767 $3,312,723 $3,378,977 $3,446,557 $3,515,488 $3,585,797 $3,657,513 $3,730,664 $3,805,277 $3,881 383 $3,959,010 $4,038,190 $4,118,954 City &others 3.00%$3,247,767 $3,591,916 $3,957,075 $4,070,968 $4,152,387 $4,235,435 $4,320,144 $4,406,546 $4,494,677 $4,584,571 $4,676,262 $4,769,788 $4,865,183ReturntoRSFund0%load gr.0.00%($830,080)($710,281)($588,665)($465,222)($339,944)($212,825)($83,858).$46,959 $179,632 $314,161 $394,937 $532,068 $671,030 Return to RSFund 3%load gr.3.00%($830,080)($431,088)($10,567)$159,190 $296,956 $436,813 $578,772 $722,842 $869,032 $1,017,350 $1,112,190 $1,263,665 $1,417,259 Return to Equity 0%load gr.0.00%$0 $0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Return to Equity 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $722,842 $869,032 $1,017,350 $1,112,190 $1,263,665 $1,417,259 RSF Balance 0%load gr.0.00%($830,080)($1,619,219)($2,361,709)+($3,051,293)($3,681,110)($4,243,640)($4,730,644)($5,133,096)($5,441,108)($5,643,852)($5,785,081)($5,802,595)($5,682,812)RSF Balance 3%load gr.3.00%($830,080)($1,340,025)-($1,477,894)($1,459,105)-($1,300,764)($987,524)($502,567)$0 $0 $0 $0 $0 $0 Equity Balance 0%load gr.0.00%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity Balance 3%load gr.3.00%$0 $0 $0 $0 $0 $0 $0 $722,842 $1,591,875 $2,609,224 $3,721,414 $4,985,079 $6,402,338 15 2013 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,046,736 $361,167 $7,769,841 ($543,889) $11,633,855 $0.1414 $0.1075 2013 $0.1567 $0.1567 $0.1463 $0.1463 $0.1463 2013 30,000,000 23,000,000 29,293,000 34,600,000 2013 $4,699,768 $3,603,155 $4,285,360 $5,061,737 $954,428 $1,730,805 $0 $1,730,805 ($4,970,464) $0 $0 $9,706,115 16 2014 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,188,372 $0 $0 $368,390 $7,769,841 ($543,889) $11,782,715 $0.1432 $0.1089 2014 $0.1606 $0.1606 $0.1492 $0.1492 $0.1492 2014 30,000,000 23,000,000 29,293,000 34,600,000 2014 $4,817,262 $3,693,234 $4,371,067 $5,162,971 $1,098,849 $1,890,753 $0 $1,890,753 ($4,343,809) $0 $0 $11,596,869 17 2015 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,334,965 $375,758 $7,769,841 ($543,889) $11,936,675 $0.1451 $0.1103 2015 $0.1646 $0.1646 $0.1522 $0.1522 $0.1522 $4,937,694 $3,785,565 $4,458,488 $5,266,231 $1,245,072 $2,052,814 $0 $2,052,814 $3,511,399) $0 $0 $13,649,683 18 2016 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,486,689 $383,273 $7,769,841 ($543,889) $12,095,914 $0.1470 $0.1118 2016 $0.1687 $0.1687 $0.1552 $0.1552 $0.1552 $5,061,136 $3,880,204 $4,547,658 $5,371,556 $1,393,084 $2,216,982 $0 $2,216,982 ($2,451,897) $0 $0 $15,866,665 19 2017 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,643,723 $0 $0 $390,938 $7,769,841 ($543,889) $12,260,614 $0.1490 $0.1133 2017 $0.1729 $0.1729 $0.1584 $0.1584 $0.1584 $5,187,664 $3,977,209 $4,638,611 $5,478,987 $1,542,871 $2,383,247 Et] $2,383,247 ($1,141,956) 0 Lu $18,249,912 20 2018 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,806,253 $0 $0 $398,757 $7,769,841 ($543,889) $12,430,963 $0.1511 $0.1149 2018 $0.1772 $0.1772 $0.1615 $0.1615 $0.1615 $5,317,356 $4,076,640 $4,731,384 $5,588,566 $1,694,416 $2,551,599 $1,694,416 $2,551,599 $0 $0 $1,694,416 $20,801,511 21 2019 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $4,974,472 $0 $0 $677,887 $7,769,841 ($543,889) $12,878,312 $0.1565 $0.1190 2019 $0.1817 $0.1817 $0.1647 $0.1647 $0.1647 $5,450,290 $4,178,556 $4,826,011 $5,700,338 $1,576,545 $2,450,872 $1,576,545 $2,450,872 2 2020 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,148,579 $691,445 $7,769,841 ($543,889) $13,065,976 $0.1588 $0.1208 2020 $0.1862 $0.1862 $0.1680 $0.1680 $0.1680 2020 30,000,000 23,000,000 29,293,000 34,600,000 2020 $5,586,547 $4,283,020 $4,922,532 $5,814,344 $1,726,122 $2,617,935 $1,726,122 $2,617,935 $0 $0 $4,997,084 $25,870,318 23 2021 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,328,779 $0 $0 $705,274 $7,769,841 ($543,889) $13,260,005 $0.1611 $0.1226 2021, $0.1909 $0.1909 $0.1714 $0.1714 $0.1714 2021 30,000,000 23,000,000 29,293,000 34,600,000 $6,874,367 $28,657,250 a 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,515,286 $719,379 $7,769,841 ($543,889) $13,460,618 $0.1636 $0.1244 2022 $0.1956 $0.1956 $0.1748 $0.1748 $0.1748 $5,869,366 $4,499,847 $5,121,402 $6,049,244 $2,029,997 $2,957,840 $2,029,997 $2,957,840 $0 $0 $8,904,364 $31,615,089 25 2023 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,708,321 $0 $0 $733,767 $7,769,841 ($543,889) $13,668,041 $0.1661 $0.1263 2023 $0.2005 $0.2005 $0.1783 $0.1783 $0.1783 $6,016,100 $4,612,344 $5,223,830 $6,170,229 $2,184,233 $3,130,632 $2,184,233 $3,130,632 $0 $0 $11,088,598 $34,745,721 26 2024 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $5,908,112 $0 $0 $748,442 $7,769,841 ($543,889) $13,882,507 $0.1687 $0.1283 2024 $0.2056 $0.2056 $0.1819 $0.1819 $0.1819 2024 30,000,000 23,000,000 29,293,000 34,600,000 2024 $6,166,503 $4,727,652 $5,328,306 $6,293,633 $2,339,954 $3,305,281 $2,339,954 $3,305,281 $0 $0 $13,428,552 $38,051,003 7 2025 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,114,896 $0 $0 $763,411 $7,769,841 ($543,889) $14,104,260 $0.1714 $0.1304 2025 $0.2107 $0.2107 $0.185S $0.1855 $0.1855 2025 30,000,000 23,000,000 29,293,000 34,600,000 2025 $6,320,665 $4,845,844 $5,434,873 $6,419,506 $2,497,122 $3,481,755 $2,497,122 $3,481,755 $0 $0 $15,925,674 $41,532,758 b::) 2026 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,328,918 $0 $0 $778,679 $7,769,841 ($543,889) $14,333,550 $0.1742 $0.1325 2026 $0.2160 $0.2160 $0.1892 $0.1892 $0.1892 $6,478,682 $4,966,990 $5,543,570 $6,547,896 $2,655,692 $3,660,018 $2,655,692 $3,660,018 $0 $0 $18,581,366 $45,192,776 29 2022 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,550,430 $794,253 $7,769,841 ($543,889) $14,570,635 $0.1771 $0.1347 2027 $0.2214 $0.2214 $0.1930 $0.1930 $0.1930 $6,640,649 $5,091,164 $5,654,441 $6,678,854 $2,815,620 $3,840,032 $2,815,620 $3,840,032 CASE XIV page2 30 2028 29,402,497 64,517,503 93,920,000 0.00% 82,293,000 108,186,000 $6,779,695 $810,138 $7,769,841 ($543,889) $14,815,785 $0.1800 $0.1369 2028 90.269 $0.2269 $0.1969 $0.1969 90.1969 $6,806,665 $5,218,443 $5,767,530 $6,812,431 $2,976,854 $4,021,755 $2,976,854 $4,021,755 $0 $0 $24,373,839 $53,054,563 CASE XIV page3 $1,000,000 $0 ($1,000,000)KR.-----2-22 ee eee es (2,000,000) (63,000,000)+---------- ($4,000,000)4-------cece enon Nee eneeeececenacnaccvaueeees re ($5,000,000)4 ($6,000,000)- Rate Stabilization Fund Balances (9.5%return) a Rate of Growth -Makushin Load -#-0.0%--®-3.00% SsesgsesezgsesgesgseBBBeGeERDeBZEHeZEeRBEESEBAHAKRAHKHABRAABA=®&8 &@ RRRRRRKRRRRRRRARARRRRRRARARRRAR Makushin Costs of Power &Rates 90.2900+ 90.2400+Cost/RateperkWhgs3S82s$0.0900 SE AAEEERERERELEREEELTERELRAABERSSFRSRSRRRRRERERRERBRRRERRERRERERERRERRRER --®-Contract Wholesale ---O--Whl Cost -0%Load --@--WhL Cost -3%LoadRategrowthgrowth 7 Integrated Diesel |--%--City Cost of PowerRate