Sundance B PPA Costs

---------------------- Forwarded by John Zufferli/CAL/ECT on 01/18/2001 08:36
AM ---------------------------

From: John Zufferli 01/17/2001 02:06 PM

To: Peter Keohane/CAL/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Derek
Davies/CAL/ECT@ECT
cc:
Subject: Sundance B PPA Costs

a) Variable Cost of Fuel = $4
b) Fixed Operating Cost = $16
c) Transmission = $15.60 (i.e. based on a $100 average pool price)
d) Freight on Energy above target = $2.40
e) Availability Incentive Payment = $26
f) Amortization of Initial $300 MM bid - using 6% = $4
using 15% = $7.8

Total of a) to f) = $68-$72. Total of what is considered variable cost
(a+c+d+e)=$48

These costs are based on dispatching the full target availability of 612 MW.
If the plant is dipatched down to 386 MW, then the 386 MW
have to be priced at 49*612/387 = $76