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EconExpert - for WIND Model User`s Manual

1. 000yr Hin 10 O amp M User Defined 1 24 Addl Expenses 2 000 yr e Addl Revenues 3 000 yr G Add l Expenses 3 000 yr Add l Revenues 4 000 yr Click to Create NPY Tornado Diagram Print Form Print Form Help Close Form Note Current Values are Representative Amounts for each variable for information purposes only For variables with widely varying annual amounts the Current Value may differ from expectations In all cases the sensitivities will be performed by varying the actual annual amounts inthe model bythe indicated variation independent of what representive Current Value is displayed Click to Create IRR Tornado Diagram The white boxes in this sheet are the locations where you tell EconExpert WIND over what range Increment that you would like the model to vary each of the specified inputs Once you have established the Increments select either the IRR or NPV buttons to generate the selected Tornado Diagram After selecting this button the following diagram will be generated p 84 EconExpert WIND Users Manual Copyright 2005 2011 Fiqure 36 Example Tornado Diagram Consolidated Tornado Diagram Sensitivity of Leveraged After Tax IRR Base Case 20 yr Leveraged IRR 12 4 Note indicates 5 yr avg 2011 Renewable Energy Credits 5 00 IMWH 1 100 006 Energy Price All PPAs 8760 hre 48 21 Wh in Vear 1 1 10 0 over project life Capital investment Excl Sot Costs amp DC 2
2. Variable Operations and Maintenance O amp M costs are dependent on gross annual electric power production before the losses are reduced There are two user defined Variable O amp M Inputs to Table 1 which have corresponding Table 1C entries Both categories offer entries in MWH The user can name these categories in Table 1 and the names will be carried into the various tables and charts throughout the model The calculated annual variable O amp M costs will be the sum of these two entries and will reflect the annual plant capacity factor p 73 EconExpert WIND Users Manual Copyright 2005 2011 Fixed Operating Costs Fixed Operations and Maintenance O amp M costs are not dependent on annual net generation Fixed O amp M Inputs are defined in Table 1 and are structured to handle a Warranty Post Warranty and another period of costs The user can name these categories in Table 1 and the names will be carried into the various tables and charts throughout the model Other O amp M and Spare Parts Other O amp M offers four independent categories for fixed O amp M costs set up so that the user can name each category in Table 1 Also in this section the user can specify the annual Spare Parts Consumption rate The model is structured to have a one time Spare Parts Purchase which is only specified on Table 1 Lastly in this section the user can specify annual Property Tax and Insurance costs Royalties and Land Lease Payments The two
3. Cash Flow Statement and Balance Sheet based on the Owner s percentage interest in the project The predicted Owner s Stock Performance with and without the project is also estimated Table 11 is organized as follows e Table 11 Income Statement The Income Statement is used to calculate Net Income revenues minus expenses Depreciation and taxes for the project using GAAP Book Accounting Methods e Table 11A Cash Flow Statement The Cash Flow Statement identifies sources of project cash and amounts available for potential distribution to the Owner e Table 11B Balance Sheet The Balance Sheet identifies assets equity and liabilities attributed to the project where Total Annual Assets are in balance with Total Annual Equity and Liabilities in each year and over the project life e Table 11C Owner s Stock Performance Predictions of the impacts of the project on the Owner s stock price are provided based on the project s Net Income the dilution effects of the equity additions attributed to the project and the predicted performance of the Owner s stock without the project Results in Table 11 11A 11B and 11C are all expressed based on the Owner s percentage interest in the project EconExpert uses the Deferral Method of Generally Accepted Accounting Principles GAAP for all Book Analyses including the Income Statement Cash Flow Statement and Balance Sheet in Table 11 Table 12 Dollars per MWH Table 12 provides costs and re
4. Note that only years with entries will override Global Inputs allowing the user to revert back to the escalating economic item if desired Table 1C is range protected allowing you to enter data ONLY into green shaded Input cells When a non zero entry appears on a shaded cell the format of that cell will change to indicating that data is present and used by the model Table 1C is organized into sections associated with each class of input categories and generally follows the organizational architecture of the Global Inputs sheet The columns to the right in Table 1C each represent a project year with Column F used for the first year of the project life You can locate a specific Input Category in Table 1C by either scrolling through the table or by using the NAVIGATE Feature on the Command Menu Table 1C is organized in the following sections Economic Factors The annual GNP deflator Wind Farm Performance Production losses and capacity factor Energy Contracts or Merchant Sales Period energy consumption Energy Price During Each Period Energy pricing by period Other Revenues RECs plus four user defined revenue fields Variable O amp M Variable Costs and purchased power Fixed O amp M Warranty and post warranty costs Other O amp M and Spare Parts User defined inputs from Table 1 plus property tax and insurance Royalties and Land Lease Equivalents Lease payments to land owners or developers User Defined Ad
5. e Tables LEGAL Paper 8 7 x 14 in 30 Years of Results Select this option to print the first 36 months of the Construction Period results or the first 30 years of the Operating Period results to legal sized paper Note that Excel must be pointed to a printer with legal paper in the selected paper tray e Tables Tabloid Paper 11 x 17 in 30 Years of Results p 27 EconExpert WIND Users Manual Copyright 2005 2011 Select this option to print the first 36 months of the Construction Period results or the first 30 years of the Operating Period results to 11 x 17 in paper This is the largest format printout Note that Excel must be pointed to a printer with tabloid paper in the selected paper tray e Tables A4 Paper 20 Yrs of Results Select this option to print the first 24 months of the Construction Period results or the first 20 years of the Operating Period results to European Style A4 Paper e Print Sensitivity Graphs Print the selected graphs that are included on the Sensitivities Sheet NOTE All graphs can be printed by unprotecting the graphs sheet selecting the graph and selecting the print icon on the Excel menu bar e Print Tornado Tables Print the Tables that are generated each time you create a Tornado Diagram from the Sensitivities Menu e Print Tornado Diagrams Print the Charts that are generated each time you create a Tornado Diagram from the Sensitivities Menu e Print Project Valuation Tables Print the
6. entered Phase 2 Engineering Construction and Start up Costs These are costs that occur after financial closing including interest during construction which is calculated using the Construction Phase Drawdown Schedule in Table 3 Land and Soft Costs e g Start up Mobilization Spares Working Capital Up Front Financing Fees Debt Reserves and Interest During Construction which are concentrated at the start or end of the construction phase are also entered here The first section under Phase 2 is the Land costs Most wind farms projects lease the land but in the case that a project purchases land the value can be entered here The next section Wind Turbine Costs offers five user defined rows in addition to the Wind Turbine Cost rows Note that there are two Wind Turbine Cost rows one for costs in dollars and one for Euros in the event that turbines being purchased are European and manufacture is pricing the turbines in Euros Simply click the check box as indicated in the figure below enter a conversion rate and the cost in Euros in the top row The user can then enter any additional wind turbine costs in dollar on the row below On Table 3 Construction the user can allocate those costs of the construction cycle and which costs will occur in which months Figure 24 Table 1 Wind Global Inputs Wind Turbine Costs Some Wind Turbine costs in Euros h l YES EURDIUST 0 2000 Fer Turbine Other Total Froject ma DF Vind Tu
7. summaries k Sensitivity Graphs Tornado Diagrams Tornado Tables Project Valuation Tables Sensitivity Tables k Title Sheet Software License k Top of Quick Analysis Sheet The Quick Analysis Sheet is an input sheet for simple deal screening and project economic analysis Global Inputs Table 1 To locate specific input categories select from the sub menu a list of the Input Categories that are located on Table 1 Wind Global Inputs Inputs on this sheet typically apply over the life of the project or are entered as a single value and then escalated at a constant rate Annual Inputs Titles The Wind Annual Inputs Table is an optional table used to refine the setup that you have developed using Table 1 Wind Global Inputs To locate specific input categories select from the sub menu a list of Input Categories used in Table 1C Annual Inputs Annual Inputs are inputs that apply in a single year during the life of the project When entered non zero inputs or results generated using formulas in the Annual Inputs Table will override or will be added to results otherwise calculated using the corresponding Global Input Data Conversion Table 1D Select from a list of Input Categories used in the Data Conversion Sheet The Data Conversion Sheet allows you to enter forward pricing data in up to 24 block periods year and then to convert that p 25 EconExpert WIND Users Manual Copyright 2005 2011 data to an equivalent annual for
8. 53 252 Wind Rating P30 R Description Example Data ire ce Indicates pt P All Annual Inputs expressed at values are entered in Current Year Annual Inputs Year of Operation 1 2 All Figures in 000 Used Year Operational Months Economic Factors GNF Escalation Rate Revenues and Expenses 9999999 Wind Farm Performance Table 1C allows you to input annual values for Potential Gross Energy Production and Generation Losses In this section you can alter the amount of power generated and delivered Figure 29 Table 1C Annual Inputs Wind Farm Performance Wind Farm Performance Potential Gross Energy Production Mut Overrides Table 1 Entries are additive to Table 1 ind Global Inputs 1 108 962 4 621 55 448 x 27 SE Total Merchant and Contracted Energy Sales Mut 1 065 047 4 433 53 252 Difference Between Delivered and Contracted Amounts Tolerance i 0 0 0 0 e Potential Gross Energy Production This value matches the entries on Table 1 in the Wind Rating Profile section e Subtotal Generation Losses Above This value will replace the total generation losses specified on Table 1 e Subtotal Other Losses This value will add to the losses specified above or on Table 1 e Energy Production After Generation Losses This line calculates the generation from Table 1 or from the Potential Gross Energy Production if a value is entered for that year and deducts the generation losses for each year from the values ente
9. Drawdown and Financing Schedule o Monthly Construction Cost Schedule o Cumulative Monthly Construction Cost Schedule The total monthly drawdown during the construction phase is computed as follows o Land and Development Costs which may actually occur prior to closing are scheduled as a one time expense lumped in the first month of the construction phase o Capital Costs and Loan Commitment Fees are expended according to the Drawdown Schedule o Start up Mobilization and Spares costs are spread evenly overly the last six months of the Construction Schedule If the Schedule is shorter than six months they are divided evenly over the period o Working Capital is accumulated over the last three months of the Construction Schedule If the Schedule is shorter than three months they are divided evenly over the period o Debt Reserves are deposited in the last month of the schedule o Interest During Construction is calculated and added to other construction term costs based on the percent of construction costs that are debt financed using the Construction Term Debt parameters and the resulting monthly expenditures described above o Loan Commitment Fees are based on the monthly undrawn balance o Vendor Letter of Credit Admin Fee is based on the schedule on Table 3 below the Monthly Schedule and above the Cumulative Construction Schedule p 49 EconExpert WIND Users Manual Copyright 2005 2011 Table 4 Operating Costs Tab
10. EconExpert WIND is equipped with the capability to run automated sensitivity analyses on a variety of important project parameters Parameters for which Sensitivity Analyses can be performed include e Capital Investment e Electric Energy Sales o 8760 Hour Average includes all periods listed below o PPA1 o PPA2 o PPA3 e Financing Equity Percentage During Operations Interest Rate During Construction Interest Rate on Senior Debt Interest Rate on Subordinated Debt Term of Senior Debt Term of Subordinated Debt O E 00 OO e Fixed O amp M Expenses o All Fixed O amp M Costs including those listed below o User Defined Category 1 o User Defined Category 2 o Additional Fixed O amp M e Wind Farm Operations and Operating Cost Sensitivities Wind Rating Profile Energy Production and Wind Farm Capacity Factor Fixed Operations and Maintenance Expenses Land Lease and Developer Royalty Payments User Defined Additional Annual Expenses in Table 1C Variable Operations and Maintenance Expenses O E E ET e Production Tax Credits o Annual Amount of Federal PTCs o Escalation Rate of Federal PTCs e Revenue o Green Tags Renewable Energy Credits o Additional Annual Revenues in Table 1 and Table 1C The SENSITIVITIES Menu provides you with the ability to run these sensitivity cases either individually or as a group and to report how the project s Internal Rate of Return IRR will be impacted by variations in these para
11. Input rows are unprotected and shaded in green Period 24 is calculated by difference to ensure that the total number of hours in a full calendar year is equal to 8760 note that leap years are neglected Please note the following points when you use this feature O O All data is entered in Current Data can be copied and pasted from other sources The pasted data should be pasted as VALUES from the source data file or can be linked using formulas Aggregated results will be referenced by formulas in the Annual Inputs Sheet overwriting the current Annual Inputs and overriding Global Inputs in the years that non zero values are transferred If block period data is utilized it is recommended that the user enter that data for the whole project life If the data is not available for the whole project life use formulas in the cells to project the data over the entire project life Otherwise where blank cells or zeros are transferred to the Annual Inputs Sheet the Global Inputs data will be applied Import Data from another EconExpert WIND Model EconExpert WIND is equipped with a utility that allows you to transfer input data from one copy of the model to another This feature is most useful when you upgrade the model and need to easily transfer data to the new version without having to manually re enter the data It is also a convenient way in combination with the Holding Bins to consolidate models After selecting this option the f
12. Per Real Escalation Rate Added to GNF rate Commercial Operation Start Date 100106 Project Life Years 32 Max mm ee f Duration Retirement Date 10401126 Renewable Energy Credits w Gross Wind Farm Capacity and Generation Federal PTC Rate d YES State Income Tax Rate 5 54 Turbine Rating 460 KV Expense Name Amount Her Tunes EE O OM Expense 1 Turbine Fixed 10 0 000 Per Turbine Gross Wind Farm Capacity 82 500 ky O amp M Expense 2 Turbine Other 000 Per Turbine O amp M Expense 3 000 Other 100 1000 Total Project Net vd Farm Capacity Delivered Capacity Factor Land Lease ae of Sales Net Energy Delivered 320 079 hire Dun Investment Costs Project Finance Amount 000 Project Development Percent Debt Wind Turbines Interest Rate on Debt Balance of Plant 12350 Term of Debt years Other Costs Discount Rate for NPY Total Investment GNP Escalation Rate Project Schedule The first section at the top left of Table 1 is the Project Schedule where the user specifies the start of the project Financial Closing Date the duration of the installation Construction Term and the Project Life In addition in the section the user can segment the project life into multiple terms specifically for PPA or different revenue pricing Gross Wind Farm Capacity and Generation The next section offers entries for the rating of the Wind turbines to be installed the number of turbines and the Net Wind Farm Capaci
13. Primary and Subordinated Debt are discussed on page 56 Figure 25 Table 1 Wind Global Inputs Equity and Project Ownership p 66 EconExpert WIND Users Manual Copyright 2005 2011 Project Finance Equity and Project Ownershi Debt Equity Entry Debt F0007 Equity 000 Total 000 Start of Construction 30 0 70 0 Ki 6 100 f 16 900 f 26 999 Start of Operations 50 07 50 0 F 13 500 13 500 26 999 Debt Coverage Ratios DSCR Include PTC in OSCR Calc YES Actual Min 0 53 Project Stage Developer Fees Equity Participant Construction Operations Recipient 100 0 30 0 TTaxinvestor 50 0 f 100 0 100 0 0 0 The specific debt parameters are handled in the sections below Financing Terms Construction Financing and Permanent Financing In this section of Table 1 the user can specify debt terms as follows e Construction Financing The user can specify the interest rate applied during the term of the construction loan Interest During Construction is calculated in Table 3 using either the Default or User Defined Drawdown and Debt Equity Schedules e Permanent Financing Senior Debt and Subordinated Debt The user can specify the mortgage type loan parameters including o The Term of the loan The fixed interest rate The number of years the Interest Only payments are made during the initial term of the loan The annual Financing Fees O O O The user may also enter
14. The user can enter Dividend Amounts to be withdrawn from the project After Tax as a percentage of after tax net income or as a set amount If both entries are made they will be summed The resulting dividends are deducted from the net income after tax and will result in a reduction to the project s IRR and NPV after tax Corporate Earnings without Project and Shares of Company Stock Outstanding EconExpert WIND includes analysis of predicted impacts of Share Dilution and Net Income on the price of the Owner s stock These calculations are performed based on an assumed baseline stock price without the project the baseline projected corporate earnings profile and the baseline number of shares outstanding The resulting current price earnings ratio is applied to estimate future stock performance by calculating the resulting accretion dilution of shares and the impacts of net income from the project p 75 EconExpert WIND Users Manual Copyright 2005 2011 Using Table 1C the user may specify the annual effective Price Earnings Ratio of the stock reflective of changing anticipated market conditions forecasted annual Earnings Share expressed in Current and the annual number of Corporate Shares Outstanding Amounts entered here will override inputs to Table 1 If an annual profile for Corporate Shares Outstanding is entered it should be input for all succeeding years during the project life as the model will revert to Table 1 entries if a zer
15. Worksheets included in EconExpert WIND Command Menus Descriptions of the purpose and functions of each of the options provided on the EconExpert WIND Command Menu Customizing the Proforma Helpful suggestions on how you can customize EconExpert WIND to perform project specific analyses Definitions and Explanations Helpful definitions for items throughout the model Populate Table 1C with links to Data Conversion Sheet As described in the Utilities section Comparing Runs and Identifying Quantifying Changes As described in the Utilities section Saving EconExpert WIND to Disk Discussion how to save and reuse Fully Functional and Values Only copies of EconExpert WIND Help Comments in Worksheet Cells A discussion of the Help Comments provided in worksheet cells and how to enable or disable the Cell Comments feature p 44 EconExpert WIND Users Manual Copyright 2005 2011 Help Comments Individual input cells throughout the EconExpert WIND model include Comments that provide information about the purpose and function of the respective input cell or results table Cell Comments can be turned ON or turned OFF from the EconExpert WIND UTILITIES Menu NOTE If the Cell Comments feature is turned ON a red triangle comment indicator will appear in the upper right corner of the affected cells in the model The corresponding Help Comment will appear as you move the cursor near to or over the red triangle p 45 EconExpert W
16. consumed each year If there are values for both entries the user can also indicate the amount of spare parts from inventory that are consumed each year The amount is entered as a percentage as shown in the following diagram p 62 EconExpert WIND Users Manual Copyright 2005 2011 Figure 20 Table 1 Wind Global Inputs Spare Parts Costs Purchase of Spare Parts Inventory Consumption of Spare Parts O amp M Reserve The Operations and Maintenance O amp M reserve is the amount that a lender or third party might require of the operator In this section the user defines the value by the equivalent of the number of months of operating expenses and starting and ending years If the user would prefer to simply enter a value for each year they can use Table 1C Variable O amp M Variable Operations and Maintenance O amp M costs are dependent on gross annual electric power production before the losses are reduced There are two user defined Variable O amp M Inputs to Table 1 Both categories offer entries in MWH The user can name these categories and the names will be carried into the various tables and charts throughout the model The calculated annual variable O amp M costs will be the sum of these two entries and will reflect the annual plant capacity factor Developer Royalty There are two options for the Developer Royalty which is a payment to the Developer after the project is operational based on the amount of
17. entries for the lease payment will override any payments entered on Table1 including the variable costs or minimum payments User Defined Additional Expenses The user may input Additional Annual Operating Expenses in any of three User Defined Categories Values are input in Current dollars and are not escalated These amounts are added to other expenses calculated from Table 1 Inputs and from the items listed above These costs can be fixed or variable depending how the user defines them The titles entered will appear in the various reports throughout the model The labels input by the user will appear in the corresponding tables and reports throughout the model Note that the user may also define the titles for these User Defined Categories These titles will be accessible for Sensitivities and will be updated when on the EconExpert WIND Menu is refreshed Figure 31 Table 1C Annual Inputs Fixed and Variable O amp M Inputs ECODESDGIL WILL Yr U13 4 185 OT IO 2009 LEI IG Al KOMS Reserved TABLE AC Annual Inputs pick ENEE Year Operation in Year 1 and Year 31 Example Data Holding Bin 2 is not labled November 1 7005 show Comment For Instructions Shaded Cells Indicate Inputs E Het Production 53 252 Wind Rating P30 Description Example Data Ho Annual All Annual Inputs expressed at values are entered in Current Year Inputs Used Year of Operation 1 2 ML Eoures in 5 Year 2006 2007 Operational Mont
18. individually incrementing multiple inputs Each Tornado Diagrams is generated by varying the inputs over the life of the project based on inputs to either Table 1 or Table 1C e Single Case Sensitivities The remaining options allow you to selectively run individual Sensitivities listed in a subsequent chapter The individual Sensitivity Tables and Graphs can be viewed from the Navigate menu or printed from the PRINT Menu The individual sensitivity cases are o Capital Investment Sensitivity Electric Energy Sales Sensitivities Financing Sensitivities Wind Project Operations and Operating Cost Sensitivities Production Tax Credits PTC Revenue Sensitivities O OOOO e Clear All Sensitivity Cases This option is used to clear all the existing sensitivity cases e Run All Single Case Sensitivities You can run all of the programmed single case sensitivities in a single batch updating all of the corresponding graphs and printing them if desired This selection will take some time to execute if selected Itis highly recommended that you run all of the Sensitivity Cases prior to creating a Values Only copy of the model to ensure that all of the Sensitivities are updated to match the current Values Only case e EconExpert Wind Sensitivity Add Ins This option lists all the sensitivity add ins p 31 EconExpert WIND Users Manual Copyright 2005 2011 Utilities The UTILITIES Menu provides useful tools to manage the model Features o
19. license and gives you the option of registering your software NOTE You can choose to register the software at this time by selecting Yes If you would prefer to register at a later time you can do so by selecting Add ns gt EconExpert WIND Menu gt Software Licensing and Registration gt Register Your Software p 20 EconExpert WIND Users Manual Copyright 2005 2011 Please Register Your Software Software License Accepted If you have not done so already please register your software with CEL If you have already registered your license and have not changed the Name or Company Name on your installation you can skip this step Do you want to continue with the software registration Gy Fevortes p f Suggested Sites v E HP See What s Hot CH OVERVIEW SOFTWARE DEMOS PRODUCTS USER S MANUALS DUWNLOAD 10 SUPPRESS NOT ENOUGH SYSTEM RESOURCES MESSAGE SUPPORT REGISTER LOGIN REGISTER If you have a vabd boense to one or more of the Foorf aper madets and have not already registered pour software please complete the briet form below Note that sengly registering vil not enalde fe software on your computer it wil stil be necessary to get license codes from CEI but this wil greatly fartitate the Geensing process You may close this browser window if you have ready registered For more information piease contact Lu B 858 506 02210 The 6 itens must be entered exactly as
20. new folder named C EconExpert Files NOTE Installation of the model MUST be initiated from your C drive 2 Unzip the zip file provided by CEI onto your C drive to the xls version of the file The Initial Installation File you receive from CEI will only enable the use of the model for a limited period usually 10 days If you have purchased an extended period license to use the EconExpert Wind model CEI will provide you with the necessary authorization codes to fully enable your use of the model for the subscribed license period please see the License Extension section for instructions on extending your license 3 Once the installation file has been extracted make the appropriate changes as follows Settings for Windows Vista Select Start Button Select Control Panel Select User Account Controls Click on the Radio Button to Disable User Account Controls Accept and Close the Control Panel AS SYS p 12 EconExpert WIND Users Manual Copyright 2005 2011 6 Restart your computer Settings for Windows 7 Similar in Vista See note at end of Section Select Start Button Select Control Panel In the Search Control Panel box on the top right enter User Account Controls Hit Enter Click on the text on the left titled Action Center Change User Account Control settings Drag the slider down to Never Notify GU dl gt IMPORTANT Windows will tell you this is Not Recommended CEI does not believe that this in
21. of that project might be impacted by changes in market conditions Built in menus wizards automated functions sensitivities tornado diagrams graphics and on line help features will further assist you in evaluating opportunities and producing reports that clearly and accurately support the conclusions you reach This User s Manual has been developed to assist you in getting started using EconExpert WIND and to provide supporting documentation in the event that questions might arise as you use it The User s Manual is complemented by On Line Help and an On Line Tutorial that can be accessed directly from the EconExpert WIND model s Command menu Competitive Energy Insight would greatly appreciate your feedback and comments on EconExpert WIND and our other software products and we are committed to both updating and improving the models to include additional functionality that is important and valuable to the energy industry Subscriptions To purchase EconExpert WIND or to extend your license please contact Competitive Energy Insight via email or phone Subscription rates are available upon request Subscribers will be provided with free software training and access to all updates issued during the term of their Software License All users of the EconExpert WIND model will be required to acknowledge their acceptance of the EconExpert WIND Software License Agreement in order to fully enable the model Please see Section IV Getting Started of th
22. option An example of the window that EconExpert WIND creates to inform you about the current contents of the Holding Bins is provided below p 39 EconExpert WIND Users Manual Copyright 2005 2011 e EconExpert Wind V15 7062 3 Copyright 2005 2011 CE Inc All Rights Res I x Active GLOBAL Inputs Sheet ITC Grant Training Case Holding Bin for Global Inputs No Description Has Been Provided Active ANNUAL Inputs Sheet No Description Has Been Provided Holding Bin for Annual Inputs No Description Has Been Provided Holding Bin for Data Conversion No Description Has Been Provided Figure 14 Example Display of Current Contents of Holding Bins o Clear all Input Sheets Select this to clear the contents of the input sheets o Clear Yellow Freeform Tables Select this to clear the contents of the yellow freeform tables o Clear all Holding Bins Select this to start a completely new case For each of the input sheets you are given the following four options o Save This option saves a copy of the active Input Table to a Holding Bin When you save the contents to the Holding Bin the current contents of the Holding Bin are overwritten o Exchange This option exchanges a copy of the active Input Table with a copy saved in the Holding Bin It allows you to flip the copies of input tables that have been previously saved with the active Input Sheet When you exchange the contents with a Holding B
23. period From the EconExpert WIND Command Menu licensed users can also create a Values Only copy of the model that can be shared with others and viewed on any PC including those that are not licensed to use the Fully Functional model Ina Values Only version of the model much of the Command Menu s functionality will be preserved allowing others to easily view and print reports and charts for the specific case study that has be saved A Values Only copy will not allow users to change inputs or to evaluate any new cases If you purchase a subscription to the EconExpert WIND model any copies of the model that you save as Recoverable Values Only versions can be restored to fully functional versions of the model once a license is renewed and since a Values Only copy can be opened without a license models can be permanently archived and reopened in this manner The Initial Installation File you receive from CEI will only enable the use of the model for a limited period usually 10 days If you have purchased an extended period license to use the EconExpert WIND model contact CEI after performing your initial installation CEI will provide you with the necessary License Extension Codes to fully enable your use of the model for the subscribed license period To access the License Enable License Extension feature first contact CEI by telephone and then follow the instructions below to extend your license License Extension 1 From the Utilities menu
24. power sold or revenue generated The user can enter a variable payment based on either a percent of sales or a MWH or a fixed payment based on an annual amount Note for each of these items you must specify the starting and ending years and you also have the option of entering a specific Real Escalation for each item Figure 21 Table 1 Wind Global Inputs Developer Royalty EE NR SN EE EEN J j i Percent of Sales Aboye Sales 000 Beal Escalation Fired Payment to Developer so o o S Total Developer Pet a Land Lease Royalty There are three options for the Lease Land Royalty which is a payment to the land owner after the project is operational based on the amount of power sold or revenue generated First there are three time periods that can have different pricing terms based on either a percent of sales or a MWH The years for these three items can overlap but in most cases you will wants the years to be sequential Next there is a fixed annual payment based on either the number of turbines or an annual payment Last there is a minimum payment than can be specified The minimum payment is calculated against the sum of the variable and fixed Land Lease Royalty payments Note for each of these items you must specify the starting and ending years and you also have the option of entering a specific Real Escalation for each item Figure 22 Table 1 Wind Global Inputs Lease Land Royalty p 63 EconExpert W
25. selected tables that are included on the Sensitivities Sheet e Print Sensitivity Tables Print the selected tables that are included on the Sensitivities Sheet p 28 EconExpert WIND Users Manual Copyright 2005 2011 Sensitivities In the most recent versions of EconExpert Wind the sensitivity charts are included in a separate file The SENSITIVITIES Menu provides you with options to perform special calculations including the calculation of the annual Project Rate Base and the Project Valuation and to study how the Project Valuation Net Present Value or Internal Rate of Return of the current case will be impacted by incrementing key inputs to the model The Sensitivities are performed by varying the identified inputs over the life of the project Because graphs take up a lot of memory in Excel there is only an IRR or NPV version of each graph in the model To change the project return metric for a chart Choose Tools gt Protection gt Unprotect Sheet from the Command Menu Right Click on the chart Select Source Data Trace the data back to the Sensitivities tab Re link the graph to the data that you want to see e g from NPV to IRR Change the chart titles ao ss oS em Options on the SENSITIVITY menu include p 29 EconExpert WIND Users Manual Copyright 2005 2011 Project Valuation Calculations Project Valuation Sensitivities k Compare Breakeven Value of ITC vs PTC Monte Carlo Simulations of Annual Wind Profil
26. that in the event of a violation of the Agreement CEI shall be entitled to receive appropriate restraining orders and injunctions restraining and enjoining Licensee and or Affiliates from any and all acts in violation of the Agreement as well as any damages that may be suffered by CEI as a result of any such violation p 89 EconExpert WIND Users Manual Copyright 2005 2011 4 License Fees and Term Fees for use of and the term of license of the Model are on a periodic subscription basis The fees payable under this Agreement have been set forth in a separate written faxed or emailed communication between CEI and Licensee usually by Invoice 5 Warranty CEI makes no warranties or representations with respect to the accuracy use or application of the Model nor any technical assistance provided by CEI to Licensee or Authorized Users except that CEI will make reasonable efforts to correct defects in the Model after they are identified and will promptly provide Licensee with updates containing such corrections as CEI deems appropriate when they are available These reasonable efforts to correct defects in the Model do not apply to Derivative Works developed by Users of the Model and CEI assumes no responsibility for or obligation relative to the performance of or defects in Microsoft Excel EXCEPT FOR THE WARRANTIES AND REPRESENTATIONS EXPRESSLY SET FORTH HEREIN COMPETITIVE ENERGY INSIGHT INC DISCLAIMS ANY AND ALL WARRANTIES AND REPRESENTATION
27. the project life Values are input in Current dollars and are not escalated by the model These amounts will be added to other revenue sources calculated from Table 1 Inputs The labels are user defined and will appear in the corresponding tables and reports throughout the model These titles will be accessible for Sensitivities and will be updated on the EconExpert WIND menu when the menu is refreshed Figure 30 Table 1C Annual Inputs Other Revenue Sources ELUNEAPENL TVINL Wir fFU 14 LUI ZU Le Al RTS ReSe VGU TABLE 1C Annual Inputs SR RE Year Operation in Year 1 and Year 24 Example Data Holding Bin 2 is not labled Hovember 1 2005 Show Comment For Instructions Shaded Cells Indicate Inputs Het Production 53 252 Wind Rating P30 Description Exam le Data be All Annual Inputs expressed at values are entered in Current Year Inputs Used Year of Operation 1 2 All Figures in 000 Year 2006 2007 Operational Months 1 12 Other Revenues Renewable Energy Credits duu H Additional Revenues 1 000r e D O Entries are additive to Table 1 wind Global Inputs Additional Revenues 2 000r Vo Entries are additive to Table 1 wind Global Inputs SOOO Ayr Entries are additive to Table 1 ind Global Inputs Additional Revenues 4 00047 Entries are additive to Table 1 wind Global Inputs User Defined Labels H E 5 Ki d 5 nd dg fail Variable Operating Costs
28. turbine cost and a total cost These two costs are additive and are summed in the adjacent column These costs are broken into two main categories Figure 23 Table 1 Wind Global Inputs Development Costs Phase 1 Development Costs These costs are typically incurred prior to financial closing and are treated by EconExpert WIND as a lump sum expense in the first month of the construction phase A number of default cost categories are provided as well as two optional User Defined Categories The user may also add contingency as a percentage of the Development Costs and as a fixed amount in 000 the two entries will be summed if both are entered You can specify up to 8 categories of Phase 1 Development Costs One category title the Developer Fee cannot be modified This is because this specific item feeds into the partnership calculations and is set up so that the user can allocate this payment to one of the partners This allocation is handled on Table 1 under the Project Finance section and the result transfers automatically to the EconExpert Partnerships Module p 64 EconExpert WIND Users Manual Copyright 2005 2011 The user may also add contingency as a percentage of the Phase 1 costs and as a fixed amount in 000 the two entries will be summed if both are entered Likewise the user can enter a sales tax figure as an amount and as a of Phase 1 Costs the two entries will be summed if both are
29. used in the calculations of Net Present Value NPV and Internal Rate of Return IRR provided in Table 8A p 51 EconExpert WIND Users Manual Copyright 2005 2011 NOTE The calculated unleveraged IRR may change slightly usually by less than 0 1 as a function of changes in project equity This can occur when you select the Factor option for calculating property taxes or insurance costs which when carried through to the unleveraged analysis are tied to the cost basis which in turn has a small dependency on the amount of debt assumed This effect is very minor and will not be observed if either annual inputs or a fixed 1000 yr amount is entered for Property Taxes and Insurance costs Results in Table 7A are expressed based on the Owner s percentage interest in the project Table 8 NPV amp IRR Leveraged Table 8 provides calculation of the Net Present Value NPV and Internal Rate of Return IRR on a Leveraged Basis using results from Table 7 The IRR represents the after tax return on the Owner s investment The NPV is calculated at the specified Discount Rate A negative NPV does not necessarily indicate that a project is losing money but rather that the IRR achieved by the project is less than the discount rate specified for the NPV calculation An NPV of 0 means that the IRR and Discount Rate are equal The Debt Service Coverage Ratios DSCR from the debt sheet is reported DSCR is a common metric used by banks and fin
30. wind power industry designed to allow simplified or sophisticated analysis of any wind power project that sells energy to the grid from the perspective of any stakeholder in the project or transaction EconExpert WIND is a sophisticated and highly flexible spreadsheet developed in Microsoft Excel and can be effectively utilized to evaluate new project development acquisitions or divestitures from small wind farms to utility scale power projects The model developed by Competitive Energy Insight Inc CEI a California Corporation with offices in San Diego has evolved since 1997 as a tool first used extensively in CEI s private consulting practice in support of Fortune 500 clients to evaluate opportunities for development or acquisition of thermal power generation projects Now EconExpert WIND has been transformed into a tool that can be used efficiently and effectively by project developers utilities equipment suppliers consultants banks and others in the industry to evaluate study make informed decisions on structure contracts and track the economics of wind power generation investments The key to EconExpert WIND and its sister models is the architecture which allows you to study any project through the models input sheets specifying the conditions of ownership procurement construction financing operation and electricity sales taxes and deal structure for virtually any project and then to quickly study how the economic viability
31. z Gas FOB Supplier 0 00 MMBtu 0 0 Transportation 1 0 00 S MMBtu 0 0 Transportation 2 0 00 S MMBtu 0 0 Net Delivered Fuel Price 2 65 S MMBtu 0 0 Debt Fuel Quality Selected Fuel GAS 100 0 Higher Heating value of Fuel 0 Btu ScF S 60 0 SEENEN Ash in the Fuel by Weight 0 00 Ib AshM Owner s Interest in the Project 0 0 Sulfur in the Fuel by Weight 0 00 b SO2MM EE FullScreen X Equity and Project Ownershi During Construction During Operations 0 0 S Fnvirnnmental Controls FA Start ei p A I Eco ytet Give Side Site Sue ng EE EE WC E 275 PM H File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL EF x EE EH F E H 1 J K etitive Energy Insight Inc All Rights Reserved TABLE 4 April 23 2003 Example Frame F Combined Cycle Case OPERATING FACTORS AND EXPENSES Year of Operation 1 2 3 4 5 6 Year 2003 2006 2007 2008 2009 2010 2011 Months of Operation During Year Total 12 12 12 12 12 12 OPERATING EXPENSES 1000 Year Owner s Share Owner s Share 100 Year of Operation 1 2 3 4 5 6 Year 2006 2007 2008 2009 2010 2011 Corresponding Annual Hours of Full Load Operation Effective Annual Capacity Factor 0 0 0 0 0 0 0 0 0 0 0 0 Months of Operation Owner s Operating Expenses 1000 Current Period 14 6 Fuel Period 24B Fuel Fuel Transpor
32. 05 2011 Print The PRINT Menu provides you with options for printing Tables and Graphs generated by the EconExpert WIND model Tables and graphs in the model can be generated in multiple formats with options to print tables selectively or in various levels of summary detail If desired you can also create your own custom reports using the Excel File gt Page Setup or File gt Print options NOTE The EconExpert WIND Software License Agreement requires that you include the Copyright Notice on any printed reports that you create Options on the PRINT menu include Compress to hide unused rows in reports Print Tables LETTER 8 1 2 in x 11 in Paper 20 Yrs of Results Print Tables LEGAL Paper 6 1 2 in x 14 in 30 Yrs of Results Print Tables Tabloid Paper 11 in x 17 in 30 Yrs of Results Print Tables 44 Paper 20 Yrs of Results Print Sensitivity Graphs Frint Tornado Tables b Frint Tornado Diagrams Print Project Valuation Tables Frint Sensitivity Tables k e Compress to hide unused rows in reports This features hides any rows that are blank eliminating rows are not relevant to your reports e Print Tables LETTER 8 x 11 in Paper 20 Yrs of Results Select this option to print the first 24 months of the Construction Period results or the first 20 years of the Operating Period Results to letter sized paper Note that Excel must be pointed to a printer with letter paper in the selected paper tray
33. 39 500 000 1 10 0 Annual Het Capacity Factor 30 6 Annual Average l 2 05 Owner s Equity 80 0 1 5 0 of investment Land Lease Expense 1 000 000 4 25 0 interest Rate on Senior Debt 7 0 1 1 0 Fixed GSM 1 250 000 25 0 Term of Senior Debt 15 yra at 2 Yra VOM and Variable O22 100 5005 Property Taxes 1 207 000 26 0 Insurance 1 207 000 1 25 0 Interest Rate on Construction Financing 6 0 1 1 0 Annual Other GAM 250 000 4 25 0 Interest Rate on Subordinated Debt 6 0 1 1 0 Annual Royalties on Energy Sales Section E 153 000 25 0 Term of Subordinated Debt 20 yrs at 2 Yre 2 5 2 0 1 5 2 10 eee 1 877 Wang 1 53 17 1 31 Change in Leveraged IRR from Base Case 1 0 0 5 0 0 0 5 1 0 0 70 C 0 25 P 0 27 aa 0 17 E 0 17 0 17 RI 0 17 0 12 mi 0 12 0 07 M 0 07 0 03 ll 0 03 0 03 ll 0 03 0 02 1 0 02 The horizontal bars illustrate how changes in the identified inputs would impact the project s IRR The results are sorted in order of significance giving the tornado effect Note that the titles on the left axis identify the base case leveraged and unleveraged IRRs the base year value for the input and the Increment that was used p 85 EconExpert WIND Users Manual Copyright 2005 2011 Customizing EconExpert WIND One of the many advantages of EconExpert WIND is the flexibility it offers allowing yo
34. 9 EconExpert WIND Users Manual Copyright 2005 2011 Enter Authorized Extension Code Provided by CH Usually Three 5 Character Segments Separated by Spaces Cancel The Code ts Case Sensitive and MUST match 5 Enter the 15 character code provided to you by CEI The License Extension Code is comprised of three sets of 5 Character Case Sensitive Segments each separated by a single space NOTE The code is case sensitive and must match the authorized code exactly If it does not match you will be prompted up to 3 times for the correct code 6 After the correct code is entered you will be asked to enter your User Name usually your First Name and Last Name NOTE The user name is usually your first and last name This name must be at least 8 characters long It will appear on the Program Greeting each time you open EconExpert WIND The company name will appear on all printed reports generated by the model 7 Next you will then see the following greeting acknowledging successful extension of the license Figure 4 EconExpert WIND Greeting Screen EconExpert Wind V14 7060 8 GCopyright 2005 2010 CEI Inc All Rights Reserved Welcome Steve Provol of Competitive Energy Insight Inc This is EconExpert Wind Version 14 7060 8 The current Date is 09 29 2010 Your License is valid until 06 15 2011 Copyright Notice EconExpert Wind is protected by copyright law and international treaties Unauthorized use modification reverse
35. CHANTABILITY FITNESS FOR A PARTICULAR PURPOSE OR THAT THE MODEL OR THE RESULTS THEREFROM SHALL BE ERROR FREE Removal of the EconExpert WIND Menu Under rare circumstances the EconExpert WIND Command Menu may not be fully removed when the model is closed If this occurs reopen the model without any other spreadsheets opened Then close EconExpert WIND and any extraneous menus will be deleted If you are using Excel 2007 the EconExpert Menu will appear in the Add Ins Ribbon on the Vista Ribbon bar p 3 EconExpert WIND Users Manual Copyright 2005 2011 CONTENTS NOTICES areca r EE E ce vescceneecevenwevecseuessoneencaweu ce vesucen seus vuscevecesenee eee EEE EENS 2 ENN 2 CHANGING YOUR COMPUTER S CO Ci EEE EN 2 USE OF ECONEXPERT WIND WITH MACROS ENABLED ccececccccccccececcsceceacececceceacecenceceacecencececeacecencecencecenseeenceceaeececeeceaenceaeeceaeeceaeeness 2 PRODUCT WARRANTY AND WARRANTY LIMITATIONS EE 2 REMOVAL OF THE ECONEXPERT WIND MEN 3 CONTEN EE 4 FIOURE NN 6 OVERVIEW NNN 7 MON 7 SES EEE EEE EE SE maactencumetacmecdeesicessonet 7 STEEN 11 DEN 11 GETTING STARTED INSTALLING ECONEXPERT WIND eg dgRtEiegeg ugeriet EEEEE NEEN EENEG 12 THE ECONEXPERT WIND ON LINE TUTORIAL cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccecccecccs 23 THE ECONEXPERT WIND COMMAND MENU ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccecccc
36. F HOLDING BINS cccceccecessescuccesecesenscuceuseuseuseuseseeseeseeseeesteceeseusseeeseeeeceeseuseeeas 40 FIGURE 17 TABLE 1 WIND GLOBAL INPUT CATEGORIES sccessccossscnsccnssccccvnscovsscvsnscnsascescepasacecsnscosnscosnsensnecesascescccsnecesnseosnsonsascusassesaces 57 FIGURE 18 TABLE 1 WIND GLOBAL INPUTS TAXES AND INVESTMENT TAX pts 58 FIGURE 19 TABLE 1 WIND GLOBAL INPUTS TAXES AND INVESTMENT TAX pts 60 FIGURE 20 TABLE 1 WIND GLOBAL INPUTS PPA PRICING STRUCTURE ccceccescecesseseuscuseuceseuseusseseuseeceeseseuseeseessenseeseeseueseeesseeseeseusaeees 60 FIGURE 21 TABLE 1 WIND GLOBAL INPUTS PPA PRICING SUMMARIES csscecceccecesseseuscesuceseuseuseeseuseeceeseseuseeseesesensteseeceuseseeusesenseeseuseseas 61 FIGURE 22 TABLE 1 WIND GLOBAL INPUTS SPARE PARTS Coste 63 FIGURE 23 TABLE 1 WIND GLOBAL INPUTS DEVELOPER ROYAL 63 FIGURE 24 TABLE 1 WIND GLOBAL INPUTS LEASE LAND ROYALTY ccceccecceceecescuscusceccsccucseeeseuseuceeeseuseeceueeseesteseeseeseueseeeeeseeseueass 63 FIGURE 25 TABLE 1 WIND GLOBAL INPUTS DEVELOPMENT LOs s 64 FIGURE 26 TABLE 1 WIND GLOBAL INPUTS WIND TURBINE Coste 65 FIGURE 27 TABLE 1 WIND GLOBAL INPUTS EQUITY AND PROJECT OWNERSHIP eavannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnennennnnnnnnnnennennnnnnnennennannennnnnenee 66 FIGURE 28 USER DEFINED DEPRECIATION SCHEDULES IN TABLE 13 DEPRECIATION ccccecceccecceccecceceseuc
37. Global Inputs are discussed in more detail later in this manual The Appendix also provides examples on how to use the various Global Inputs A variety of Cell Help Comments also appear with each input in Table 1 Table 1C Annual Inputs o Annual Inputs apply only to a given year in the life of the project but there are entries for every year of the project Use Annual Inputs in the case where the economic item is going to vary year to year and not in a fixed manner like a straight escalation o The individual Annual Inputs are discussed in more detail later in this manual Examples provided in the Appendix also give examples on how to use the various Global Inputs A variety of Cell Help Comments also appear with each input in Table 1 NOTE Cost entries are inputs to Table 1C in CURRENT and represent the actual amount spent in a given year This means that the cost and revenue entries to Table 1C will not be impacted by escalation rates entered elsewhere in the model and fixed values will not be impacted by partial year operation The values will be used by the model as entered Table 1D Data Conversion The Data Conversion Sheet allows the user automatically to convert forward energy data provided in a format that is different from EconExpert WIND to the format of four Energy and two Fuel Pricing periods used in the EconExpert WIND model The current version of the model is equipped with the capability to automatically reference ag
38. IND Users Manual Copyright 2005 2011 EE a eee Land Lease Royalty Land Lease of Revenue Period One Land Lease of Revenue Period Two Land Lease of Revenue Period Three Fited Annual Payments 4 Minimum Annual Payments Applies to ALL BEE o Property Taxes and Insurance Property Taxes and Insurance can be individually input in Table 1 as amounts in 000 year and as a Factored amount if both entries are used they are summed as follows e The Factor for estimation of life of project yearly Property Taxes and Insurance is the percentage of current book Asset Basis As the asset is depreciated and the basis declines the annual Property Taxes and Insurance will correspondingly decline e If a 000 amount is entered for Property Taxes or Insurance the amount is used in each year of the project life and is escalated using the GNP deflator e The user may also enter annual property taxes and annual insurance costs in the Annual Inputs Table where specific amounts can be entered in each year Investment Costs Capital Investment Costs are entered only in Table 1 These are costs incurred during the project development engineering and construction phases of the project but prior to commercial operations of the facility Please note that these costs are not escalated by the model and are used as the exact amounts entered by the user For each line item the user can enter a per
39. IND Users Manual Copyright 2005 2011 Worksheet Tabs Tabs at the bottom of the spreadsheet identify the various worksheets and tables in the EconExpert WIND model Worksheets are organized into the following categories Administrative Summaries Inputs Reports Graphs Administrative Sheets These sheets provide the user information about the model holding bins and other information that support the use of the model License The License Sheet provides the Software License Agreement EconExpert WIND may only be used under the terms of the applicable License Agreement and the user must acknowledge their acceptance of those terms in order to enable the model The terms of the software license should be read carefully BEFORE using the model NOTE Prior to the first use of the model the user must accept the license agreement by clicking on the button labeled Have Read and Accept to the Terms of the EconExpert WIND License located at the end of the License Agreement Title The Title Sheet includes the EconExpert WIND and CEI Logos and notification of the product copyright Contact information for CEI is also provided The Macro Button on the top of this sheet will take the user to the Global Inputs sheet Status The Status Sheet provides Alerts and Warnings to the User that are relevant to the current configuration of the model Warnings include detection of potentially conflicting inputs e g a specified loan term th
40. IT the Future Hp Jam ir made tothe ex sbariee right ko ure EsonBspert and A Universal Financial Proforma apart fromthe mark arsrhoun EconExpert for WIND Model For the Economic Evaluation and Valuation of Wind Power Projects that Sell Energy to the Power Grid User s Manual Published April 2011 Competitive Energy Insight Inc 12025 Blue Diamond Court San Diego CA 92131 858 566 0221 T 858 566 0287 F info DCE Insight com www CE Insight com EconExpert WIND Users Manual Copyright 2005 2011 Notices Copyright Notice The EconExpert WIND Financial model and its accompanying documentation are protected by copyright law and international treaties The EconExpert WIND model documentation and reports generated by the model include prominently displayed Copyright Notices Unauthorized use modification reverse engineering reproduction or distribution of the EconExpert WIND model or any portion of it may result in severe civil and criminal penalties and will be prosecuted to the maximum extent possible under the law If you are a licensed user you are free to distribute printed reports and charts as well as to provide others with electronic copies of EconExpert WIND if such reports or electronic copies are generated by the EconExpert WIND model s Command Menu and contain the Copyright Notices included with the EconExpert WIND model You may also provide saved electronic copies of the EconExpert WI
41. Inputs and Results in a TARGET File versus a REFERENCE FILE File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL fa E RI 00 Fr Fe FE KES SSE E Ce in HET Heer ia a a mmm Guesses Used for IRR Iteration 0 00 Global Inputs Holding Bin 1 is Not Labled Select Checkbox to Use XIRR XIRR Requires Analysis ToolPak Table 1 Section 1A GLOBAL INPUTS IRR Selected Shaded Areas Indicate Inputs Global Inputs Holding Bin 2 is Not Labled Active Annual Inputs Sheet is Not Labeled HPV TER SENSIT Ho Annual Inputs Used HPV to by EOY 2003 1000 STUL NPvandiRR Summary vere o e A ON 0 e o Discount Rate N 0 00 Unleveraged Proforma HOTES Plant Capacity Heat Rate amp Fuel Type A Energy and Fuel Pricing Profiles A Period 14 Period 1B Rated Net Plant Capacity Mu hiv MN Period 14 Period Ap Net Heat Rate Electricity Only OO JerutkuhHHv otis zo Annual MVVH Produced 0 0 g Re Fuel Selection Enter 1 for Coal Coke Wood or Oil Enter 2 for Gas Period 1AB 2AB Energy Prices S MIVVH Escalati Energy Sales JAMAH l 0 00 0 0 Less Transmission vheeling SAMAH 0 0 Economic Factors Net Energy Price to Customer SAMAH 44 00 28 00 0 0 Base Year Constant Dollar in Mid Year v Period 1 2 Fuel Prices Period 1AB 33
42. ND model to others but such copies will not function properly on unlicensed computers unless the Authorized License Codes are provided by Competitive Energy Insight Inc Changing Your Computer s Clock If you make changes to the setting of the clock on your computer particularly if you set the clock backwards after you have installed EconExpert WIND or forwards beyond the end of your authorized license period an error will be produced when the EconExpert WIND model is opened While Excel can be closed and reopened normally EconExpert WIND will not function properly if it is reopened after such invalid clock settings have been made If you encounter a problem related to the setting of your computer clock as it relates to EconExpert WIND please contact CEI to discuss measures to repair your valid installation of the model Use of EconExpert WIND with Macros Enabled In order to properly install and use EconExpert WIND the Macros Enabled option for Microsoft Excel MUST be selected The model will not function properly without Macros Enabled Microsoft Excel Versions 2002 and later include a Security Setting that can prevent the user from opening spreadsheets that contain macros If this Security Setting is set to HIGH then you will not be permitted to open EconExpert WIND or any other spreadsheet with the Macros functioning Prior to opening EconExpert WIND you may want to check this setting on your version of Excel and Windows Specific settin
43. Options for Revenues and Expenses In this way all of the functionality of the model will reflect your customization NOTE Be careful not to create Circular Calculations using these approaches CEI also provides financial modeling and model customization services For information please contact us at the address shown on the cover page of this manual p 86 EconExpert WIND Users Manual Copyright 2005 2011 Appendices i TM Overview of CE s EconExpert Software Suite Competitive Energy Insight CEI established in 1997 has developed a suite of mature and highly advanced software products for the analysis of investments in renewable energy central power stations commodity liquid and gaseous products and combined heat and power We both license these models for your direct use and use them broadly in our project development consulting practice serving as a bench to support your in house team All of the EconExpert tools are Excel based making them completely customizable auditable and adding all of the features of Excel to EconExpert s powerful features and architecture Importantly the EconExpert Models are far more than spreadsheets Behind each model is powerful Visual Basic programming that provides highly advanced menu wizard driven functionality taking Excel and your analysis capability to a completely new level Standardized accurate and applicable from simple screening to bank quality investment grade analysis of virtu
44. Repayments specified in this section will take precedence over Interest Only Payments if such both options are selected in the same year If payments are not entered in all years the selected mortgage type repayment schedule specified in Table 1 will be used in the remaining years until the entire principal balance is paid or until the end of the debt term Any residual principal will be repaid as a balloon payment in the last year of the debt term e Interest Rates The user can input the Annual effective interest rate during any year in the life of the subject loan This section can be used to model variable rate loans or those linked to indices Amounts entered here will override the standard mortgage style fixed interest rates entered in Table 1 e Interest Only Payments The user can specify Interest Only Payments in any year during the life of the loan by entering a 1 in the year that the Interest Only Payments would apply Note that Principal Repayments specified above will take precedence over Interest Only Payments if both options are selected in the same year Income Taxes Depreciation and Dividends The user can enter Annual Depreciation Rates Additional Deductions from State and Federal Taxes State and Federal Tax Rates Additional Tax Amounts and annual After Tax Dividends in any year that they might occur Note that Additional Deductions Additional Taxes and After Tax Dividends do not override amounts input to Table 1 Global Inputs
45. S EXPRESS OR IMPLIED WITH RESPECT TO THE MODEL AND ITS CONFORMITY TO ANY SPECIFICATIONS OR DESCRIPTION INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY FITNESS FOR A PARTICULAR PURPOSE OR THAT THE MODEL OR THE RESULTS THEREFROM SHALL BE ERROR FREE CHECK YOUR WORK THE RESULTS GENERATED BY THIS MODEL ARE YOUR RESPONSIBILITY 6 Technical Assistance Licensee and its Authorized Users shall be entitled to 30 days of free technical assistance applied only to the installation and use of the Models which will be provided via phone Internet or e mail during the first 30 days of an initial subscription period Technical assistance beyond this 30 day period or any on site technical assistance shall be provided at the discretion of CEI and may be billed to client at CEI s then current consulting rates for technical assistance 7 Installation of the Model The electronic software provided by CEI under this Agreement will be subject to a limited installation period after which the software provided may not install properly on the User s Computer s If appropriate CEI can provide replacement electronic copies of the software during the period of this Agreement with a new authorized period of installation 8 Inputs Examples and Derivative Works The Model includes sections that have been designated as Unprotected where Authorized Users may input data or may perform custom analyses using the results generated within the Mod
46. Terms for Senior Debt and Subordinated Debt in the Annual Inputs Table where options are provided to override the o Annual interest rate o Interest only payments o Accelerated principal repayment schedules as a percentage of the initial debt balance or in 000 year For the purposes of calculating debt coverage ratios the coverage ratio for Senior Debt is calculated assuming funds available to cover debt including all expenses and Subordinated Debt Costs Sources of Capital A summary of sources of capital for the project is provided in this section The figure below shows these amounts Sources are shown for the total project and for the each investor s percent interest in the project Depreciation p 67 EconExpert WIND Users Manual Copyright 2005 2011 EconExpert uses the Deferral Method of Generally Accepted Accounting Principles GAAP for all Book Analyses including the Income Statement Cash Flow Statement and Balance Sheet in Table 11 Depreciation is calculated using the cost basis of the plant Capital Investment minus working capital debt reserves and land In this section of Table 1 the user specifies the percentage of the original plant Cost Basis that is depreciated for Cash Tax and for Book Tax purposes Depreciation for cash taxes is calculated using IRS Modified Accelerated Cost Recovery MACRS depreciation schedules Book depreciation uses Straight Line Methods Both methods prorate depreciation for partial
47. able and Accounts Payable Days specified in the two entry cells On Table 1C the user can simply specify a dollar amount instead of considering receivable and payable days Wind Farm Residual Value Following the Capital Investment Cost table the user is provided with the option to recover a residual value on the plant investment at the end of the Project Life The residual value can be specified both as an amount and as a percentage of the original plant basis If both inputs are used the result will be the sum of the two inputs Project Finance After the project parameters are set it is time to decide how the project will be financed The top section of the Project Finance column is the major finance inputs Debt Equity during Construction This is the percentage of the costs realized during the construction phase that are funded with Owner s Equity If set to 0 debt will be used to finance 100 of the construction period costs Costs during the construction phase are calculated based on the Drawdown Schedule with Interest During Construction calculated based on the resulting debt The Interest Rate on Construction Term Debt is discussed on page 56 Debt Equity during Operations The is the percentage of the Total Investment Cost including Soft Costs and Interest During Construction that is funded with Equity when the Permanent Debt is initiated The remaining amount will be allocated to Primary and Subordinated Debt The terms specified for
48. al Repayments Etc e Table 5A located on the bottom section of Table 5 provides Annual Debt Service Expenses in 1000 o Annual Debt Service Payments Interest Payments Principal Payments Cash Available to Cover Debt Debt Coverage Ratios O O 0 Table 6 Revenues Table 6 provides calculation of gross revenues associated with electric sales Table 6 is organized as follows e The Top Section of Table 6 provides Revenue Factors and Escalation Rates including o The Energy Sales Profile by Energy Pricing Period o Sales of Other Commodities including steam and other byproducts p 50 EconExpert WIND Users Manual Copyright 2005 2011 o Escalation Rates used for Revenues o Escalated Prices for Energy and Commodities e Table 6A located in the bottom section of Table 6 provides Escalated Annual Revenues in 1000 based on the Owner s Percentage Interest in the project Revenue streams are itemized in detail If less than 100 Ownership has been specified as an input the revenues shown here will be prorated based on the Owner s Share of the total project Itemized revenue categories provided in Table 6A include o A breakdown of revenues from energy sales into the available four Energy Pricing Periods Period 1A Period 1B Period 2A Period 2B o A breakdown of all taxable revenue sources including Total Energy Sales Sum of 1A 1B 2A and 2B above Capacity Ancillary Services Payments Other Annual Revenue from Ta
49. alculating IRR The guess is a number that you guess is close to the result you expect for the IRR Starting with guess the IRR calculation cycles until the result is accurate within 0 00001 percent If IRR can t find a result that works after 20 tries the NUM error value is returned In most cases you do not need to provide guess for the IRR calculation If the guess is omitted it is assumed to be 0 1 10 percent If the IRR result gives the NUM error value or if the result is not close to what you expected try again with a different value for guess The IRR Guess is entered in Column I just above Table 1 Figure 27 Table 1 Wind Global Inputs The IRR Guess ke de bech et KA kg Er lll WEE Er DEE EE EE EE EE E e IR its Reserved Global Vo Wizard First Guess for IRR Excel Calculations a ma V70 oe zl Today is Soule pode LJ 15 00 En 22005 1015 2005 H of Fil C AEconEzpert Files Wind Modelst EconEzpert WIND Proforma 7 7013 5 NO zlsJTable I _ Example data provided by CEI in the model is for i AE DELLE Wind Global Inputs Proforma Notes relative to the accuracy or fitness for purpose of i Em E TERM USED FOR i After Tax HPY 28 SENSITIVITIES 000 ad al ol B A e Years GE gt and Production Project Revenue and Operating Expen NOTE The IRR Summary Table at the top of the Global Input sheet allows the user to specify what IRR Terms should be studied The third input column of this table is especial
50. ally any project investment acquisition or divestiture EconExpert has been applied to literally billions of dollars of energy project investments including on site generation applications renewable energy projects and large multi hundred million dollar central power station investments For more information on CEI please visit http www CElInsight com where you can view flash demos of our software CEI s financial analysis suite includes the following EconExpert Partnerships and Leases for evaluation of Tax Equity Partnerships and certain Leasing Structures based on projects analyzed in your own in house custom models or with any of the EconExpert Project Financial Models described below EconExpert WIND for Wind Farm projects that sell wholesale energy EconExpert EP for wholesale Electric Power including solar thermal biofuel landfill gas fossil and other thermal based electric power projects EconExpert Nuclear for wholesale Nuclear Based Electric Power EconExpert PV for wholesale large solar Photovoltaic projects EconExpert DG __ EconExpert DG for PV or Wind and EconExpert DG for Solar Thermal are for Distributed Generation Behind the Meter applications utility tariff analysis and energy savings applications EconExpert CP for Commodity Products including ethanol biodiesel synthetic natural gas refining and coal gasification liquefaction applications EconExpert IAT EconExpert IAT for PV and EconExper
51. ancing institutions to measure project performance versus debt obligations DSCR s are provided on a both a before tax and an after tax basis Debt Coverage Ratio Before Tax is defined as the Earnings Before Interest Taxes and Depreciation EBITAD divided by the debt service payment and the fees on the Senior Debt The Coverage Ratio after tax on the Senior Debt is defined as the net cash flow after tax available to cover debt divided by the debt service payment and the fees on the Senior Debt Results in Table 8 are expressed based on the Owner s percentage interest in the project Table 8A NPV amp IRR Unleveraged Table 8A provides calculation of the Net Present Value NPV and Internal Rate of Return IRR on an unleveraged basis using results from Table 7A The IRR represents the after tax return on the investment The NPV is calculated at the specified Discount Rate A negative NPV does not necessarily indicate that a project is losing money but rather that the IRR achieved by the project is less than the discount rate specified for the NPV calculation An NPV of 0 means that the IRR and Discount Rate are equal NOTE The calculated unleveraged IRR may change slightly usually by less than 0 1 as a function of changes in project equity This can occur when you select the Factor option for calculating Property Taxes or Insurance costs which when carried through to the unleveraged analysis are tied to the cost basis which in tur
52. and any attempt at any such sublicense assignment or transfer is void Licensee and its Authorized Users may not copy distribute modify reverse engineer or create Derivative Works as hereinafter defined except as expressly authorized by this Agreement and the Model Authorized Users are authorized to use the Model only on the computers specified in writing fax or email by CEI and the list of such computers shall only be modified with documented approval by CEI which may be by written agreement fax or email 3 Termination In the event of a breach of this Agreement by Licensee CEI may terminate this Agreement Upon termination or expiration of the term of this Agreement Licensee s and Authorized Users license to the Model shall terminate At the end of the term of this license or upon its earlier termination unless this Agreement is extended by a written faxed or emailed notice provided by CEI Licensee shall destroy all electronic copies of the Model Licensee for itself for its Parents for its Affiliates and for its Subsidiaries Licensee and or Affiliates hereby agrees and stipulates that in the event that Licensee and or Affiliates shall violate the terms of the Agreement Licensee and or Affiliates shall be jointly and severally be liable to CEI and CEI shall be entitled to damages and any and all equitable relief available to it at law or equity Licensee for itself and for Licensee and or Affiliates hereby agrees and stipulates
53. at is longer than the project life special circumstances and notification that Annual Inputs to Table 1C will produce results that will override or will be added to results otherwise generated from corresponding inputs to Table 1 NOTE It is highly recommended that the user check this sheet prior to reporting final results to help insure that the current case has been modeled correctly p 46 EconExpert WIND Users Manual Copyright 2005 2011 Summary Sheets These sheets provide a couple different summary views of the project Project Summary This sheet provides a 1 page summary of key project parameters The figure below provides a screen shot of the Project Summary Sheet IRR Summary NPV Summary Project Operating Parameters Project Schedule Investment Costs Energy Pricing Sources and Uses of Operating Funds in MWH The user is free to modify and customize this summary and it can be extracted to any other application including another Excel Workbook or MS Word To unprotect and modify the Summary sheet select UTILITIES gt Range Protection of Graphs and Project Summary Sheets You may then modify the sheet change entries add or delete rows etc tying formulas in the table to other cells throughout the model As long as you do not make changes outside of the boxed section of the sheet the resulting summary that you create can be reported using the PRINT option on the Command Menu Table 2 Summary Table 2 provides c
54. ation regarding the Model please contact Competitive Energy Insight Inc 12025 Blue Diamond Court San Diego CA 92131 Telephone 858 566 0221 Fax 858 566 0287 Email Info CE Insight com Website http www CEInsight com The EconExpert User s Manual can be downloaded for free from the Website 12 Jurisdiction This Agreement shall be governed by and interpreted in accordance with the laws of the State of California without reference to its rules on conflicts of laws The sole jurisdiction and venue for any litigation arising out of this Agreement shall be an appropriate federal or state court in California San Diego County 13 Entire Agreement This Agreement and any other addenda hereto that have been signed by CEI and Licensee contain the entire Agreement between the parties hereto with respect to the subject matter hereof and supersede any and all prior understandings correspondence and Agreements oral or written between the parties with respect thereto No change amendment or modification of this Agreement shall be valid or binding upon the parties unless such change amendment or modification shall be in writing and duly executed by both parties 14 Survival In the event of termination or expiration of this Agreement the obligations of Sections 3 Termination 5 Warranty 10 Limitation of Liability 11 Copyright Notice 12 Jurisdiction 15 Indemnification and 16 At
55. ble 1C Annual Inputs Steam Sales Other By Product Sales Other Energy Sales Interest Income from Maintenance and Debt Reserves DO OO O CH E o Other sources of revenue associated with liquidation of reserves and disposition of the land and asset at the end of the debt term or the end of the project life Table 7 Cash Flow Leveraged Table 7 provides calculations of the net cash flow before tax income taxes and net cash flow after tax Results provided in this table are calculated on a Leveraged basis i e including construction phase and operating phase debt The resulting Cash Flow is reported during the construction phase and through the operating phase Calculations of revenues minus expenses Depreciation and taxes are provided to be used in the calculations of Net Present Value NPV and Internal Rate of Return IRR provided in Table 8 Results in Table 7 are expressed based on the Owner s percentage interest in the project Table 7A Cash Flow Unleveraged Table 7A provides calculations of the net cash flow before tax income taxes and net cash flow after tax Results provided in this table are calculated on an unleveraged basis i e Assuming the project is executed with 100 equity and with no debt during either the construction or operations phases The resulting cash flow is reported during the construction phase and through the operating phase Calculations of revenues minus expenses Depreciation and taxes are provided to be
56. cccccccccccccccscccsccccccoccceccccccccs 24 NEVE ug EE 25 PIT 27 EVIE 29 KREE 32 HEr arn E E te cs avant vo a ran ee canes sien aerate overt bumssorucrorescn ue meuncisian meen se nea camiaaudina E A senaaacancene 44 WORKSHEET TADS NNN 46 ADMINISTRATIVE SHEETS en 46 SUENA HEN 47 PUT SIE EE 48 REPORT SHEET ee 49 GRAPHS SEET EE 55 INPUTS TO THE ECONEXPERT WIND MODEL cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccecccs 56 TABLE TVW IND GEOBAL INPUTS EE 56 TEE be IR EE EE 69 TABLE 1D DATA CONVERSION HEET 76 TABLE EO QUICK PROJECT IN ALYS EEN 77 SAVING ECONEXPERT WIND SPREADSHEETS cccccccccccccccccccccccccccccccccccccccccccccccccccccccccceccccccccccccccccccccccceccccccccsccecccecccecs 79 SAVING FULLY FUNCTIONAL COPIES OF THE MODE EE 79 CREATING A VALUES ONLY COPY OF THE ECONEXPERT WIND MODEL asenenenenvnvnnnnnnenennnnnnenenennnnnnsnenenennnnnnenenennnnnnenenenenneneneneneneneeneneneneeeen 80 NS ANALISES EE 81 Se UG TS EE 82 SENSI NCR TK EE 82 TORNADO DAORA EE 84 CUSTOMIZING ECONEXPERT WIND cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccceccccccccccceccccccccccccccoccccccccccsoccccecs 86 FET NENNE 86 EconExpert NEW SHEETS APPENDICES OVERVIEW O WIND Users Manual Copyright 2005 2011 EEE EEE EE EE I P E A A 86 Ree 87 TM F CEI S ECONEXPERT SOFTWARE SUE 87 p 5 EconExpert WIND Users Manual Copyr
57. cuseuccuceuceseuseuseuseeeeseuseeseeeeseuseass 68 FIGURE 29 TABLE 1 WIND GLOBAL INPUTS THE IRR GUESS ieueuvernnrnnnnennrnnnnnnnennennnnnnnnnnennnnnennnnnnnnnnennennnnnnnnnnennennnnnnnnnnnnnennennnnnnnennennennnnenne 69 FIGURE 30 TABLE 1C ANNUAL INPUTS GNP ESCALATION RATE EEN 71 FIGURE 31 TABLE 1C ANNUAL INPUTS WIND FARM PERFORMANCE seuasnnrnnnnnnnnnnnnnnnnnnnnnennnnnnnnnnennnnnnnnennnnnnnnnnennnnnnnnnnennennnnnennnnnnnennennannnnnnne 72 FIGURE 32 TABLE 1C ANNUAL INPUTS OTHER REVENUE BOURBCES 73 FIGURE 33 TABLE 1C ANNUAL INPUTS FIXED AND VARIABLE O amp M INpuUTe 74 FIGURE 34 TABLE 1Q QUICK PROJECT ANALYSIS EA 77 FIGURE 35 TABLE 1 WIND GLOBAL INPUTS THE IRR SENSITIVITY TERM ceccecceccecnseuscesecesenseuccuseuseeseeesseuseeseessenseuseeceseeseeesaseeseeseuseeeas 82 FIGURE 36 GRAPHS PRODUCED FROM SENSITIVITY ANALYSES resvarvvrnnrnrnnrvnnnnnnnnnennnnnnnennnnnennennennnnnnnennennnnnenennennennnnnnnnnnnnnennennnnnnnennennennenee 83 FIGURE 37 TORNADO DIAGRAMS DATA INPUT SHEET AAA 84 FIGURE 38 EXAMPLE TORNADO d RE 85 FIGURE 39 EXAMPLE OF AREAS AS THE BOTTOM OF EACH SHEET FOR CUSTOM CALCULATIONS cccceceeceseuscusceccseeseuseuseuseeseeeeseuseeseeceseass 86 p 6 EconExpert WIND Users Manual Copyright 2005 2011 Overview Introduction Thank you for choosing EconExpert WIND of the family of EconExpert financial analysis tools EconExpert WIND is the first truly universal financial proforma for the
58. d This procedure allows you to track input changes between two different EconExpert WIND models Input categories that have changed are compared and identified by highlighting on an orange background A new worksheet is created with copies of all of the tables in the model with the changed items highlighted You can also Track input changes between an active input sheet and a holding bin in the same model by saving the current model as two different file names with the desired cases to be compared each respectively activated in one of the files NOTE This is amemory RAM intensive procedure It is recommended that you close other applications and spreadsheets before executing the comparison procedure The procedure will involve three spreadsheets o The target EconExpert WIND model is the model that you want to identify the changes in o The target model must be opened first o The reference EconExpert WIND model is the model that you want compare track changes against o The reference model must be opened second o Record the filename of the reference model as you will need to enter this information o The comparison file which you will name that highlights the fields that have been changed NOTE The target and reference models must be enabled o A copy of each of the respective input sheets from the target model will be created in the comparison file with a name that you designate The comparison file will contain copies of the r
59. d Global Inputs Taxes and Investment Tax Credits If the Project Life is shorter than the debt term or an applicable depreciation life than the residual principal balance and depreciation will be accelerated in the final year of operations Construction Term mos 0 48 Other items such as Land Value and Working EEN EE Capital are also recovered at the end of the Eine mn Project Life Tables throughout the model will show results over the resulting Project Life and ppaschedule Schedule and Production wie KE D I Project Schedule Financial Closing Date 04 0106 w SIS EE columns after the end of the Project Life will oo show 0 at the top of the column indicating that KEE l the project is inactive during that period term 1 Contract Term a one 11 30 2028 3 Term 2 Second Term 6 JI 1424 2026 11 30 2031 Term 3 Thirdterm 0 Total Potential Term of PPA Ko r ae If the Start of Operations results in part year operations in the first year costs in the first and last year of the project life will be prorated based on the percent of the year that the plant is in service Turbine and Wind Farm Capacity The next section down is where the user enters the number of turbines and the rated capacity for each turbine The model can accept up to two turbine models Wind Rating Profile Annual Energy Production The model offers up to six 6 entries for gross energy production This model start
60. d in every year of the project life the corresponding Global Inputs entered in Table 1 will be totally overridden and will not be used in the analysis If Annual Inputs are only entered in some years then the Global Inputs will be used in all other years applying escalation where appropriate If Annual Inputs are entered into any cell in Table 1C the respective Input Indicator will show the value Column C along the left side of the respective inputs which will also be reformatted to bold If there are no entries in a row then a red 0 will appear A 0 advises you that NO Annual Inputs have been entered in that row A 9999999 indicates that an Annual Input has been entered in one or more years over the project life even if such entries do not appear on your current screen view In this case the corresponding input to Table 1 will also be reformatted to bold red anda red warning labeled annual inputs will also appear near to the input in Table 1 advising you that an Annual Input value has been entered and that the corresponding Global Input will be overridden The Status Sheet will also provide a notice that this has occurred A feature is provided on the EconExpert WIND UTILITIES Menu that allows you to clear and reset the Annual Input Table to all Oe meaning that none of the inputs to Table 1 will be overridden To reset the Annual Inputs Table from the UTILITIES menu select Save or Reset Inputs gt CLEAR Annual Inputs NOTE If you do
61. d overriding Global Inputs in the years that non zero values are transferred e If block period data is utilized it is recommended that the user enter that data for the whole project life If the data is not available for the whole project life use formulas in the cells to project the data over the entire project life Otherwise where blank cells or zeros are transferred to the Annual Inputs Sheet the Global Inputs data will be applied p 76 EconExpert WIND Users Manual Copyright 2005 2011 Table 1Q Quick Project Analysis This table is used to quickly analyze a wind power project by only focusing on set of economic inputs to model a project Simply entering values on this table is insufficient to perform a quick analysis The user must go to the Utilities menu and select Set up Model in Quick Project Analysis Format Once you select this option Table 1Q is linked into the rest of the model You can run sensitivities and also modify the other inputs sheets to enhance your analysis Figure 32 Table 1Q Quick Project Analysis Quick Project Analysis REFRESH Menu Set up model in Project Description uick Analysis Format Leveraged Results for 20 Year Project Project Finance 000 Movember 1 2005 MP IRR Equity KOU DN Pre Tax A 10 651 0 5 Debt 0 DI DI All Figures in 000 Post Tax f 505 11 3 Project Schedule Revenues and Expenses Financial Closing Date 020106 Met Energy Price Construction Term mos 0 48
62. ditional Annual Expenses 3 user defined expense fields Major Maintenance Purchase of spare parts and O amp M reserves Working Capital Options for total working capital or Accounts Receivable and Payable Days e Debt Service Custom interest rate and debt payment schedules e Income Taxes Depreciation and Dividends Annual depreciation incomes taxes tax credits and dividends e Corporate Stock Performance Note that you can also enter formulas into annual input cells These formulas can be linked to other parts of EconExpert WIND to sheets that you insert into the model and to sections at the bottom of each table that are available for you to perform your own calculations Results generated using Annual Inputs entries to Table 1C will either override results produced from a corresponding entry to Table 1 or will be added to those results Examples of specific inputs where results are added rather than overriding Global Inputs include e User Defined Revenue Sources four categories that you can define p 70 EconExpert WIND Users Manual Copyright 2005 2011 User Defined Expenses three categories that you can define Additional Tax Deductions Adjustments to State and Federal Depreciation Schedules Additional State Taxes Additional Federal Taxes After tax Dividends All of the other inputs will override Table 1 Inputs in AND ONLY IN the years that non zero values appear in Table 1C If Annual Inputs are entere
63. e The Increments are entered into a Data Input Sheet provided by EconExpert WIND when you select the respective Tornado Diagram Option from the Command Menu The term used for all of the Tornado Diagrams is entered at the top of Table 1 The Tornado Diagrams provide plots of leveraged and unleveraged IRR versus the variations in the selected parameter IMPORTANT The Tornado Diagrams are not updated automatically Prior to printing the Tornado Diagrams they must be updated by running the corresponding Tornado Diagrams for the current case This can be accomplished by selecting the SENSITIVITIES Option on the EconExpert WIND Command Menu Each of the Tornado Diagrams must be individually generated p 55 EconExpert WIND Users Manual Copyright 2005 2011 Inputs to the EconExpert WIND model There are four input sheets representing the various approaches that can be used to input data into the EconExpert WIND model e Table 1 Wind Global Inputs This is the main input sheet for the model It allows you to enter values that typically apply and may escalate at a constant rate over the life of the project e Table 1C Annual Inputs This sheet allows the user to customize the behavior of inputs or to introduce new categories of inputs into the model The results calculated from these annual entries will either override or will be added to amounts calculated from Inputs to Table 1 Global Inputs e Table 1D Data Conversion Sheet This sh
64. eck box Show Developer tab in the Ribbon on the Popular tab Formulas Proofing Top options for working with Excel Save Show Mini Toolbar on selection 0 Enable Live Preview 0 Advanced Show Developer tab in the Ribbon Customize Color scheme Blue Add Ins ScreenTip style Show feature descriptions in ScreenTips ha Trust Center Create lists for use in sorts and fill sequences Edit Custom Lists Resources om Figure 5 Excel Options gt Popular select Show Developer tab in the Ribbon p 15 EconExpert WIND Users Manual Copyright 2005 2011 5 Select OK 6 Under the Developer tab select Macro Security J Yi A Properties ER Fe Map Properties E Import DS te Gel View Code Insert Design Source x Mode 2 Run Dialog Refresh Data de 4 Expansion Packs met Export Controls Figure 6 Developer gt Macro Security 7 Select Disable all macros with notification 8 Select Trust access to the VBA project object model Trusted Publish ruste ishers Das Trusted Locations l For macros in documents not in trusted location Add ins Disable all macros without notification SH i Disable all macros with notification ActiveX Settings Disable all macros except digitally signed macros Macro Settings Enable all macros not recommended potentially dangerous code can run Message Bar Develo ett Ex
65. ed cells indicate where input changes have occurred in the target file relative to the reference file Figure 11 Comparing Data Files Highlighting of Inputs that Changed in a TARGET File File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL a st be H Guesses Used for IRR Iteration EconExpert LP Menu Delen TEE i Select Checkbox to Use XIRR S ram ru arus oz i XIRK Requires Analysis ToolPak DEE AS sd IRR Selected 5 00 alding Bin 1 is Not Labled Table 1 Section 14 GLOBAL INPUTS FACENCEI ProformaiCEI Commerial Shaded Areas Indicate Inputs Name of File Proformat Compare Input Files zIs Table 1 Global Inputs Global Inputs Holding D s 2 is Not Labled Example Frame F Combined Cycle Case active Annual inputs She is Not Labeled P HPY TER IRR TERM FOR SENSITIVITY STY SEHSIT Ho Annual Inputs Used R End of Year AHD TORHADO DIAGRAM by EOY 2003 1000 STUL AND TOI DIAGR DCH f vel oe Ye maps a Discount Rate d g 15 992 leveraged 4 51 a NOTES IThis Workbook sho F Combined Cycle Cafe Changes Highlighted on an Orange Ba Plant Capacity Heat Rate amp Fuel zap Period 14 Period 1B Rated Net Plant Capacity MY Period 14 Period Ap Net Heat Rate Electricity Onl Rel 7 000 IF Btutkwh HHY Basis 11 0 Fuel Selection E
66. ed using the NAVIGATE Menu or by scrolling through the Table Table 1 is Range Protected allowing you to enter data ONLY into specified shaded green input cells Table 1 is organized into sections associated with the various classes of inputs p 56 EconExpert WIND Users Manual Copyright 2005 2011 Figure 15 Table 1 Wind Global Input Categories Schedule and Investment Costs Project Financing Production Operating Expense Project Schedule PPA Pricing Phase 1 Project Construction Turbine and Wind Summaries Development Financing Farm Gross Capacity Other Revenues Phase 2 Permanent Wind Rating Profile Production Tax Engineering Financing Compounded Credits Construction and Senior Debt Efficiency Losses and Operating Expenses Start up Structure Net Capacity Developer Royalty Soft Costs Subordinated Debt Economic Factors Land Lease Royalty Plant Residual Structure Taxes and Investment Property Tax and Value Sources of Capital Tax Credits Insurance Summary Owner s Stock Depreciation Performance e Income Taxes and Investment Tax Credits Property Taxes and Insurance Please note that inputs to Table 1 are in BASE YEAR dollars This means that the cost and revenue entries to Table 1 will be escalated by the respective compounding of the GNP Deflator and the Real Escalation applied to each item even if the cost or revenue does not start u
67. eet provides inputs that can be divided into up to twenty four periods of your own design in this sheet The resulting calculations can then be automatically referenced by formulas in the Annual Inputs Sheet producing a proforma that fully evaluates multi period inputs This sheet is not active unless you direct the model to use it by referencing this sheet using the populate option on the UTILITIES menu e Table 1Q Quick Project Analysis This sheet can be used to quickly analyze a wind power project by only focusing on set of economic inputs to model a project Simply entering values on this table is insufficient to perform a quick analysis The user must go to the Utilities menu and select A wide range of project specific conditions can be easily and accurately modeled using this powerful combination of inputs sheets Descriptions and functions of the individual inputs are provided in Help Comments included with each input cell Additional discussion of the individual inputs sheets follows and the Example Cases in the Appendix also provide examples of using the inputs sheets Table 1 Wind Global Inputs Table 1 Wind Global Inputs are premises that typically apply over the life of the project or input values that are escalated at a constant rate over the life of the project Global Inputs include a complete check list of the typical factors modeled in a power project Inputs to Table 1 are organized into categories of inputs that can be locat
68. el The following options allow you to change the cell formats Number Format Underline Bold and Italics Font Color Borders Change Column Width O O OOOO o Shading You can toggle the format of Inputs Cells in Tables 1 and 1C between Shaded and Bold Italics The default status of unprotected Input Cells in Tables 1 and 1C is Shaded allowing you to easily differentiate between protected formula cells and unprotected input cells in the model Since shaded entries may be difficult to read if they are copied or faxed you can use this option to select the preferred format o Restore Original Formats to Input Tables No matter what changes you make to the Input Tables you can always select this option to restore the model to its initial formats o Zoom Settings EconExpert WIND is equipped with a Command Menu module that allows you to optimize the appearance of the model on your computer monitor based on the Windows Display Settings that you have selected and the type of monitor that you have The basic Zoom formats in EconExpert WIND are 40 50 75 or 100 though when selecting each of these settings some worksheets may be formatted to a slightly different Zoom Setting for optimal appearance For the recommended Windows Display setting of 1024 x 767 Pixels 50 is the recommended Zoom format EconExpert WIND If you have a lower resolution monitor and use a setting of 800 x 600 Pixels the recommended Zoom Setting in EconExpert WIND i
69. el both of which analyses and generated results are defined as and described in this Agreement as Derivative Works Users may only make changes to the Model in such designated Unprotected areas or by inserting worksheets in the model and such changes are only for the use of Licensees and Authorized Users of the Model CEI provides no warranties relative to such Derivative Works of the Model or relative to Licensee s or Authorized Users application of such Derivative Works Inputs examples and descriptions provided by CEI in the Model are provided for example purposes only and CEI makes no representations or warranties with respect to the accuracy of such inputs examples or descriptions 9 Sharing of Electronic Copies of the Model and Printed Materials Generated by the Model Electronic copies of the Model and printed materials generated by the Model may be generated and shared with third parties ONLY as specified below All Electronic Copies of the Model and Printed Materials must include the original Copyright notices provided by CEI 9 1 Saving of Electronic Copies of the Model Users may make save and reuse electronic copies of the Model as required for use on the Authorized Computers or as otherwise designated in writing by CEI 9 2 Sharing of fully functional Electronic Copies of the Model Users may share electronic copies of the Model with others including third parities who have a current and valid License with CEI for the M
70. engineering reproduction or distribution of EconExpert Wind or any portion of it may result in severe civil and criminal penalties and will be prosecuted to the maximum extent possible under the lav Remember to save your work Frequently and to ALWAYS CAREFULLY CHECK the results produced by the model This model is configured to work with Microsoft Office for PC 2002 2010 8 Select OK and EconExpert WIND will initialize and be ready for use Other previously saved copies of EconExpert WIND should perform normally during the new license term EconExpert WIND Users Manual Copyright 2005 2011 System Requirements EconExpert WIND is a Microsoft Excel spreadsheet that has been complemented with sophisticated Visual Basic macros to add flexibility and functionality While the spreadsheet will work effectively with a wide variety of computer hardware operating systems and versions of Microsoft Excel the following minimum system requirements are recommended Hardware e 512 MB or more of Random Access Memory RAM e To print very large multiple table reports from the model it is recommended that you have your system configured with at least 2MB of printer spooling memory This can be as network or computer RAM or as a memory module on the printer e Agraphics capable display with setting of at least 800 x 600 Pixels and preferably 1024 x 768 Pixels e Agraphics capable printer e Atleast 15MB of available storage on you C
71. ent Tax Credits ITC as there is not a federal Investment Tax Credit at this time for wind power To enter an ITC first enter the Credit Rate as a percent then enter the percent of capital costs that are applicable to the ITC Lastly the ITC might reduce the federal PTC value Click the box in under Reduce PTC To give the PTC a haircut e Income Tax Rates Tax Rate Federal 350 State Sam Effective Combined Taxable Loss Carryforward 1 Federal NOT SELECTED State NOT SELECTED Income Tax rates for Federal and State and entered in the next entry cells below Last indicate if you want to have Carry Forward Tax Losses If this checkbox is selected tax loss write offs will be carried forward and applied during future years when positive pre tax earnings occur If not selected tax losses will be credited in the year that they occur resulting in a tax credit that would be applied to other sources of income not modeled in the analysis Production Tax Credits are handled in one of the following sections Owner s Stock Performance Calculations EconExpert WIND includes analysis of predicted impacts of net income from the project on the price of the Owner s stock These calculations are performed based on an assumed Table 1 Inputs of baseline without the project stock price baseline projected corporate earnings profile and baseline number of shares outstanding If the checkbox for Issue Shares for Project Equity
72. ent Date is 07 29 2010 Your License Expiration has been updated until 09 30 2010 IMPORTANT NOTE To use EconExpert under this renewed license you must first the button labeled I Have Read and Accept the Terms of the EconExpert Software License greement located at the end of the software license NOTE Please read this Copyright Notice carefully Note that this screen will also advise you of the current date and on what date your license to use the software will expire 6 Select OK NOTE The Recalculation Feature on Excel will be set to Automatic This is the recommended setting for EconExpert WIND A notice about providing copies of EconExpert WIND to others will be displayed Select OK EconExpert WIND will be initialized In the upper left hand corner of the spreadsheet the message will appear EconExpert WIND is Initializing Please Wait The Initialization Procedure will occur every time that you open the model ECONEXPERT WIND will automatically check its setup to ensure that all of its internal settings are set correctly when you start work Finally another important message advising you that prior to using the model you must acknowledge that you accept the terms of the Software License Agreement This is required to enable ECONEXPERT WIND s linking of calculations You will be required to acknowledge your Agreement with the Software License each time you install the model on an authorized computer and each time yo
73. er accepting the terms of the EconExpert WIND License Agreement you will be asked if you would like to view the Tutorial The Tutorial may also be viewed at any time by selecting the Tutorial Option from the EconExpert Help Menu It is highly recommended that new users review the tutorial and the examples in the Appendix to this User s Manual The Tutorial is broken down into the following sections Overview Command Menus Help Features Worksheet Tabs and Tables in the Model Customizing the Model Information on How to Extend Your License to Use the Model At the beginning of each section you will have the option to skip forward to a later section p 23 EconExpert WIND Users Manual Copyright 2005 2011 The EconExpert WIND Command Menu EconExpert WIND includes a Custom Command Menu that in Excel 2002 and alter appears on the Excel Menu Bar to the right of or below the Excel s menu Help Option In Excel 2007 the Custom Command Menu appears under the Add Ins option on the Excel 2007 ribbon The EconExpert WIND Command Menu provides you with control of the EconExpert WIND model s special functions and On Line Help Features The menu will be added to the Excel Menu bar each time that you open the EconExpert WIND model and will be deleted each time you close it If you become locked up in Windows when EconExpert WIND is opened it is possible that the menu will appear when you reopen Excel even if EconExpert is not opened To delete the
74. es Sculpt Structure Senior Debt Payments Parametric Sensitivities Tornado Diagrams b WWV Single Case Sensitivities Listed Below VYV Capital Investment Sensitivity Electric Energy Sales Sensitivities Financing Sensitivities b Wind Project Operations and Operating Cost Sensitivities Production Tax Credits HI k Revenue Sensitivities Clear ALL Sensitivity Cases Run All Single Case Sensitivities EconExpert Wind Sensitivity Addins e Project Valuation Calculations EconExpert WIND includes an automated feature that allows you to calculate the valuation of a project based on the target IRR or NPV that an investor would target to achieve The valuation of the project can be determined based on a target leveraged or unleveraged investment scenario EconExpert WIND will report the change in valuation from the base case and the net project valuation exclusive of the investor s development and soft costs e Project Valuation Sensitivities After identifying the project valuation you can perform automated sensitivities analysis to determine how changes in electricity prices would impact that valuation e Compare Breakeven Value of ITC vs PTC e Monte Carlo Simulations of Annual Wind Profiles e Sculpt Structure Senior Debt Payments e Parametric Sensitivities e Tornado Diagrams p 30 EconExpert WIND Users Manual Copyright 2005 2011 Tornado Diagrams illustrate how the NPV or IRR of the current case will be impacted by
75. espective Global Inputs Annual Inputs and Data Conversion Input Sheets with the changed input fields highlighted on a bright orange background o Once initiated you will not be able to terminate this macro until it is completed You will be requested to provide two pieces of information o The Name of the reference EconExpert WIND Data File The reference file is the one that you want to compare the target file against o The Name of the new comparison file you want to create that will highlight the changes between the cases This comparison file will be saved in the same directory as the target file that you are identifying changes in Other important requirements for running this macro include o The name you entered for the reference data file must be precisely correct o Both the target and reference models must be enabled o There must not be a file with the same name as the comparison file that is currently opened p 33 EconExpert WIND Users Manual Copyright 2005 2011 o Both the target and reference files have at least two available windows If they do not to adda window from the Excel Command Menu select Window gt New Window from the Excel menu to add a window to the file where it is required The Figure below illustrates how changes in the Global Inputs Sheet are highlighted The current target case is illustrated in a new worksheet with each of the input cells that have changed highlighted in orange The orange shad
76. et Titles will also disappear This is normal behavior that is caused by a Security Feature in EconExpert WIND that is intended to prevent use of the model by unauthorized persons During your license period if you always select the Enable Macros option when you open EconExpert WIND you will always be able to clear this Div 0 result by selecting ENABLE MODEL from the EconExpert WIND Command Menu If Macros are NOT enabled you will not be able to remove the Div 0 result After saving the model to eliminate the Div 0s and re enable the model select ENABLE MODEL gt Enable Filename from the Command Menu If multiple copies of EconExpert WIND are opened the menu will apply to the most recent version for which it was refreshed If you have multiple instances of the model opened the menu can be synchronized with the active version by selecting the Refresh Menu button that appears at the top of each sheet p 79 EconExpert WIND Users Manual Copyright 2005 2011 Creating a Values Only Copy of the EconExpert WIND model From the UTILITIES MENU or EconExpert Help Menu you can create a Values Only copy of the current EconExpert WIND model to archive or for sharing with others who may not be licensed to use EconExpert WIND The Values Only copy that this module creates will work on any computer but will have limited functionality No special license codes will be required to view the Values Only copy on any PC but the Values Only model wil
77. extraneous menu simply reopen and then close the model If you are using Excel 2007 the EconExpert Menu will appear in the Add Ins Ribbon on the Vista Ribbon bar The Command Menu appears at the top of the EconExpert WIND screen as shown below The various options in the Command Menu are described following the Figure oert WIND Command Menu EconExp ert Wind Pr forma V15 70523 Home Insert Page Layout Formulas Data Review View Developer Add Ins Acrobat EconExpert HELP PRINT UTILITIES MAVIGATE SENSITIVITIES ENABLE WIND MODEL Menu Commands The six options provided on the EconExpert WIND Command Menu are listed below To select any of them click on the desired option or hold down the Alt key and select the underlined character e Enable Wind Model Navigate Print Sensitivities Utilities EconExpert HELP If you are using Excel 2007 or 2010 the Menu will appear under the Add ns option on the ribbon bar p 24 EconExpert WIND Users Manual Copyright 2005 2011 Navigate As an alternative to selecting from the worksheet tabs located on the bottom of the Excel Screen the NAVIGATE Menu provides you with another means for locating and viewing the specific inputs and various tables and charts in the EconExpert WIND model Options provided on this menu include Top of Quick Analysis Sheet Global Inputs Table 1 Annual Inputs Titles Data Conversion Table 1D Results Tables
78. fore making the conversion and to save the Values Only file to a new filename to avoid overwriting the Fully Functional model Note that saved Fully Functional electronic copies of EconExpert WIND that are not converted to Values Only can be shared with others however those Fully Functional Electronic copies will not be enabled on an unlicensed computer unless the user has obtained the appropriate License Codes from CEI Later in this manual there is an additional discussion on saving Fully Functional and Values Only copies of EconExpert WIND and to review the Software License Agreement included in the Appendix e Data Conversion Sheet Table 1D Link to Annual Inputs Sheet The Data Conversion sheet provides additional flexibility to utilize energy pricing and performance in up to 24 Periods defined by the user Select this option to link the aggregated data in Data Conversion Sheet to the model by formula reference to the Annual Inputs Sheet In the Data Conversion Sheet there are annual entries for Hours in Each Period this is where you enter the Period Names Gross MWH Energy Production Curtailment Risk Reduction in Gross Production Energy Sales for each PPA Term Revenue per MWH for each PPA Term O O O 0 Plant Capacity and capacity factors mathematically averaged and referenced in Table 1C with formulas linked to the Data Conversion Sheet p 37 EconExpert WIND Users Manual Copyright 2005 2011
79. g modification or distribution of this program or any portion of it may result in severe civil and criminal penalties and will be prosecuted to the maximum extent possible under the law Licensed to Steve Provol of Competitive Energy Insight Inc Your License Expires on 02 04 2012 EconExpert VWIND is Enabled Congratulations You are now ready to use EconExpert WIND p 22 EconExpert WIND Users Manual Copyright 2005 2011 NOTE EconExpert will create the folder C EconExpert Files This is where the now installed model will be saved and where you will also save all other Add Ins to EconExpert such as sensitivity charts and databases where applicable Note also that when you run the models in the future you will be able to rename the models you create and save them to any folder or storage media All will run on the licensed PC If the Display Setting in Windows is set to other than the recommended setting of 1024 x 768 pixels a notice will appear during the installation giving you the option to reset the display settings in Windows or to modify the Zoom settings in EconExpert WIND from the default The Zoom setting can also be automatically reset by selecting UTILITIES gt Table Viewing and Formatting gt Zoom Settings for All Tables Setting on the EconExpert WIND Command Menu The EconExpert WIND On Line Tutorial EconExpert WIND includes an On Line Tutorial that will guide you through the important features of the model Aft
80. grams Data Input Sheet Tornado Diagrams Copyright 2005 2011 CEI Inc All Rights Reserved Eg Equity and Financing Current value Capital Investment Capacity Current Yalue Revenues Current Value Factor and Fixed Operating hange in Owner s Equity 50 D n q A apital Investment 239 500 10 S nergy Prices PPA 1 45 00 MvvH 15 lau Sa of Total Investment 1000 to of Capital 1000 dy irst Term MWH B Interest Rate on Senior 6 0 1 WW et Capacity Factor 20 6 1 um nergy Prices PPA 2 0 00 kMY H 15 WW onstruction Financing Za to of Annual MWH Second Term MWH Interest Rate on 7 oo 1 NI Fixed O amp M Costs 1 250 A7 25 nergy Prices PPA 3 0 OO 15 Senior Primary Debt Ga to of Costs 1000 hird Term MWH erm of Senior Primary 15 years NI Other ORM Costs 250 yr nergy Prices All PPAs 8760 All Periods Debt Years az of Costs 1000 rs of Annual Average Interest Rate on 2 O04 1 MD evelopers Royalties SETZ 35 Production Tax Credits MWH ihuvH 10 Subordinated Debt Gs Lun of Costs 1000 erm of Subordinated Debt 20 years r and Lease T 3 scalation Rate of 2 50h 0 3 ears to of Costs 1000 Production Tax Credits G yr i Property Taxes 4 207 AE Renewable Energy Credits Z O0OmMw dr Is E X S Insurance 1 207 Variable Operating Costs 25 of Costs 1000 E Add Revenues 1 000 yr 10 Global Inputs Yariable 41 00 MyWH 25 a Add l Expenses 1 000 yr Ha 10 Add l Revenues 7
81. gregated forward data entered into 1 24 block periods year to the Annual Inputs sheet p 48 EconExpert WIND Users Manual Copyright 2005 2011 Report Sheets Each of these sheets contains the calculations and outputs for the described areas Table 3 Construction Table 3 provides calculations of monthly and cumulative monthly construction expenditures based on a standard S Curve Drawdown schedule and the Debt Equity ratios specified in Table 1 Interest during construction and soft costs Start up mobilization spares working capital debt reserve and up front loan fees etc are also allocated over the construction term As an alternative to the Default S Curve Capital Cost Drawdown Schedule generated by EconExpert WIND and to a constant Debt Equity schedule during the drawdown period you may input your own custom Capital Cost Drawdown and or Debt Equity Schedules by entering the percentage of Capital Costs that are expended monthly during the Construction Phase and the percentage of project costs covered by equity in each month NOTE Non zero entries to this schedule will override the default values in the months that they are entered Since the resulting drawdown schedule must sum to 100 it is recommended that you provide the complete drawdown schedule if custom drawdown entries are made A warning will be issued if the resulting drawdown schedule does not sum to 100 Table 3 is organized as follows o Construction
82. gs for Windows Vista Windows 2007 and later may also be required for installation of EconExpert on your computer Please contact CEI regarding these settings Product Warranty and Warranty Limitations Users of EconExpert WIND hereby indemnify Competitive Energy Insight Inc against any and all problems damages liabilities or claims or other violation that might arise in association with any use of the EconExpert WIND model by the Licensee Competitive Energy Insight Inc makes no warranties or p 2 EconExpert WIND Users Manual Copyright 2005 2011 representations with respect to the accuracy or fitness for purpose with respect to the use or application of the model except that Competitive Energy Insight will make reasonable efforts to correct defects in the model after they are identified and will promptly provide paid Licensees with updates containing such corrections when they are available These reasonable efforts to correct defects in the model do not apply to Derivative Works developed by Users of the model CEI assumes no responsibility for or obligation relative to the performance of or defects in Microsoft Excel EXCEPT FOR THE WARRANTIES AND REPRESENTATIONS EXPRESSLY SET FORTH HEREIN COMPETITIVE ENERGY INSIGHT INC DISCLAIMS ANY AND ALL WARRANTIES AND REPRESENTATIONS EXPRESS OR IMPLIED WITH RESPECT TO THE MODEL AND ITS CONFORMITY TO ANY SPECIFICATIONS OR DESCRIPTION INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MER
83. gt Extend my License gt Enable or Extend my EconExpert WIND License Codes Required from CEI 2 The following screen appears p 8 EconExpert WIND Users Manual Copyright 2005 2011 Figure 1 How to Obtain an Authorized Subscription to EconExpert WIND a STOP HERE Please DO NOT PROCEED until instructed to do so A current license to EconExpert Wind can be obtained by entering codes provided to you on the phone by CE Inc If your installation has become corrupted or an Installation File is not automatically installing the model as intended CEI can turn on the model for you To authorize a license it 15 necessary for you to provide the following information real time to CET Original Licensed User Steve Provol Current Expiration Date 02 04 2012 Computer Clock Setting 02 20 2011 6 56 PM Your Access Code 12037 Notice This spreadsheet is protected by copyright law and international treaties Unauthorized use reproduction or distribution of this spreadsheet or any portion of it may result in severe civil and criminal penalties and will be prosecuted to the maximum extent possible under the law 3 Contact CEI by telephone at 858 566 0221 and provide the requested information from the above screen NOTE Response codes provided by CEI must be used immediately as they are specific to your computer s date and time 4 Select OK and the following screen will appear Figure 2 Extension Code Screen p
84. hard drive This memory is needed for the initial installation only After the installation is completed the model can be saved and operated on the installed PC from any local or network drive Software e Windows XP Windows Vista or later Operating Systems e Microsoft Excel 2002 2003 2007 Office Vista Office XP or later e Winzip or the equivalent for decompressing the original files Note that if requested the EconExpert WIND model and documentation can be provided as self extracting exe files that will not require the installation or use of WinZip to decompress the files The model is not conventionally delivered this way as many network administrators will not allow exe files as attachments to emails NOTE While use of the EconExpert WIND software has been successfully demonstrated with the listed systems the configuration of individual systems or networks might be a factor in the successful installation of this software If problems arise please contact CEI at 858 566 0221 S WinZip is a registered trademark of WinZip Computing Inc EconExpert WIND Users Manual Copyright 2005 2011 Getting Started Installing EconExpert WIND For licensed users of EconExpert a file will be provided to you by email or can be downloaded with approval codes from our website Note that the installation of the model MUST be initiated from your C drive and the installation file MUST NOT have the READ ONLY attribute selected The orig
85. hs 1 12 ser Defined Additional Annual Expenses 000 Additional Expenses 1 b tt Entries are additive to Tabla Wind Global Inputs Entries are additive to Table 1 ind Global Inputs Additional Expenses 3 00047 Entries are additive to Table 1 wind Global Inputs a a C Pri KS 5 Fr h a d Ka E User Defined Labels In all cases note that the entries to Table 1C are in Current i e include escalation p 74 EconExpert WIND Users Manual Copyright 2005 2011 Major Maintenance Purchase of Spare Parts is one time occurrence but this section offers the user the opportunity to enter values in multiple years In this item the user would enter the years that the purchases would occur The Operations and Maintenance Reserve can be entered in current dollar versus month equivalent as is offered on Table 1 Debt Service The user can specify Annual debt terms for Primary and Subordinated Debt in Table 1C including e Principal Repayment Schedule The user can input the annual percentage of the initial debt balance or the annual 1000 amount of principal to be repaid in any year during the life of the subject loan This section can be used to model accelerated or deferred principal repayments including sweeps and extension of principal repayments Amounts entered here will override the standard mortgage style principal repayment schedule calculated based on Table 1 Inputs Note that Principal
86. ht last If the values entered in the first three columns do not equal 100 or is less than the total MWh generated then the last customer receives whatever generation remains Also the percentage method of assigning generation takes precedence over the MWh method meaning that if a value is entered in the percentage line it will override any entries in the MWh line p 61 EconExpert WIND Users Manual Copyright 2005 2011 EconExpert WIND will calculate a composite yearly energy price for use in the proforma and will calculate yearly net revenues from energy sales during each of the specified periods If desired the user may alternatively provide an annual forward energy prices in Table 1C Other Revenues In addition to revenues from Energy Sales the user may specify other sources of revenues in Table 1 that include e Renewable Energy Credits e Other variable energy sales MWh e Power sales based on capacity MW For each of these payments the user specifies the starting and ending years the base year rate and Real Escalation for each payment Production Tax Credits Entries for the Federal Production Tax Credits PTC are set to follow the language set in the energy legislation The user enters the PTC value set at the beginning of the base year the escalation rate and then the duration of the credit Note that the escalation rate is not the real escalation but the estimated nominal escalation ignorant of the GDP deflat
87. ight 2005 2011 FIGURES FIGURE 1 HOW TO OBTAIN AN AUTHORIZED SUBSCRIPTION TO ECONENpERT WIND 9 FIGURE 3 EXTENSION CODE SCREEN isisssssisaseaveussurereeatacesstcabenssadenessiedadcunasdenmesedennnedsiensnnslonawaandasmstodsinhwddeounnad Na Va Saians vans sanr ni saraaa roisia 9 FIGURE 4 MICROSOFT EXCEL ENABLE iede tie d dE 14 FIGURE 5 EXCEL OFFICE DIALOG SCREEN SELECT EXCEL OPTIONS uvnuunnnnnnnvnnnnennnvnnnvnnnnvnnnvnnnvvnnnvnnnnvnnnvnnnnnnnnvnnnvnnnvnnnnvnnnnnnnnnnnnennnnvennvennuneneee 15 FIGURE 6 EXCEL OPTIONS gt POPULAR SELECT SHOW DEVELOPER TAB IN THE RIBBON vosuunnnnnnnvnnnvnnnvnnnnvnnnvnnnvvnnnvnnnnvnnnvnnnvnnnnvnnnvnnnvnnnnvnnnvenuenen 15 FIGURE 7 DEVELOPER gt MACRO SECURITY EE 16 FIGURE 8 DEVELOPER gt MACRO SECURITY dE 16 FIGURE 9 SECURITY WARNING MACROS HAVE BEEN DISABLED OUPTONS 17 FIGURE 10 SECURITY WARNING MACROS HAVE BEEN DISABLED OPTIONS gt ENABLE THIS CONTENT ccceceeceesescusceceecesenseeseuseeseesseeseeseuseseass 18 FIGURE 12 THE ECONEXPERT WIND COMMAND MENU 24 FIGURE 14 COMPARING DATA FILES HIGHLIGHTING OF INPUTS THAT CHANGED IN A TARGET FILE ccccscesceccecceceseeseeseeseeseusseeseeseeseseass 34 FIGURE 15 COMPARING DATA FILES QUANTIFYING THE DIFFERENCE IN INPUTS AND RESULTS IN A TARGET FILE VERSUS A REFERENCE FILE 36 FIGURE 16 DATA IMPORT INSTRUCTIONS rettu tt osts ts osts trossos tsestseseertoeoroseseseseosesesesesesesee 38 FIGURE 13 EXAMPLE DISPLAY OF CURRENT CONTENTS O
88. ighted on a bright orange background Once initiated you will not be able to terminate this macro until it is completed O O O You will be asked for two items when this procedure is initiated o The name ofthe reference EconExpert WIND Data File The reference file is the one that you want to compare the target file against o The name of the new comparison file you want to create that will quantify and highlight the differences between the cases This comparison file will be saved in the same directory as the target file that you are identifying changes in Other important requirements for running this macro include The name you entered for the reference data file must be precisely correct Both the target and reference models must be enabled There must not be a file with the same name as the comparison file that is currently opened Both the target and reference files have at least two available windows If they do not to add a window from the Excel Command Menu select Window gt New Window from the Excel menu to add a window to the file where it is required O O O The Figure on the next page illustrates how changes in the Global Inputs Sheet are highlighted The current target case is illustrated in a new worksheet with each of the input cells that have changed highlighted in orange p 35 EconExpert WIND Users Manual Copyright 2005 2011 Figure 12 Comparing Data Files Quantifying the Difference in
89. in the current contents of the active Input Sheet are saved in the Holding Bin and the current contents of the Holding Bin are written to the active Input Sheet Neither is lost o Restore This option restores a copy of Input Table that had been previously saved to a Holding Bin This option allows you to recover the copy of input table that had been previously saved When you restore the contents from a Holding Bin the current contents of the active Input Sheet are overwritten o Clear This option clears the Input sheet This option clears the Inputs Sheet of virtually all inputs allowing you to restart with a fresh analysis p 40 EconExpert WIND Users Manual Copyright 2005 2011 In addition to processing the Global Annual and Data Conversion Sheets this menu also allows you to o CLEAR the Custom Construction Drawdown and Debt Equity Schedules Any inputs to a custom drawdown and debt equity schedules will be cleared and the default S Curve Drawdown that EconExpert WIND automatically calculates to match your construction period will be restored o Preloaded Input Cases This option resets the model the initial configuration with some preset values Set up Model in Quick Project Analysis Format Once you select this option Table 1Q is linked into the rest of the model You can run sensitivities and also modify the other inputs sheets to enhance your analysis Formula Auditing Since the sheets in EconExpert WIND are p
90. inal file provided to you will be gt EconExpert WIND Installation File V xxx Your Name Your Company Zip Installation Copies should ONLY be provided by CEI Inc and under the terms of the License Agreement you are NOT permitted to provide your Installation Copy of the model to others You will only need to open this file one time as an installed copy of the model will be saved you re the directory C EconExpert Files which the model will automatically add to your C Drive gt EconExpert WIND Users Manual V xxx PDF This is the User s Manual that can be downloaded from the CEI website www CElInsight com as an Acrobat PDF file which can be viewed and printed using Adobe Acrobat It is possible that you received a previously installed copy of EconExpert WIND from another user and that you would like to enable that copy of the model using License Codes provided by CEI If this is the case please refer to Section 2 on Page 10 of the User s Manual for instructions on how to enable a previously installed model on a new user s computer Installation files are compressed using WinZip a utility that compresses files for more efficient saving and transport via email To view the User s Manual or to install EconExpert WIND you must first decompress the files If you already own WinZip to unzip EconExpert please following these steps 1 Copy the original Zip or Exe files to any location and folder on your C drive preferably into a
91. is manual for additional information regarding the Software License A copy of the License is included on the License Sheet in the model and in the Appendix 1 Microsoft Excel is a registered trademark of the Microsoft Corporation p 7 EconExpert WIND Users Manual Copyright 2005 2011 If you open EconExpert when your current license is within twenty one days of expiration the model will notify you that your license is about to expire The EconExpert Help Menu includes an automated feature that allows you to extend the period of a license by entering a License Extension Code which can be provided by CEI By contacting CEI and entering the necessary codes your license term can be extended at any time In the event that your installation of EconExpert WIND experiences problems this feature may also be used to revalidate a current license If you forward copies of EconExpert WIND to others who do not have an active license CEI can temporarily enable the model as Fully Functional using these License Codes If others attempt to open a model you have sent them and they are not authorized they will be advised how to contact CEI to obtain the needed codes Without these codes unauthorized copies of the model will not function properly Once the authorized codes are entered even if the model was provided to a potential user by someone other than CEI all copies of EconExpert WIND will function on the authorized computer during the authorized license
92. is selected and you have entered projections for the pricing and number of shares of Owner s Stock that are outstanding the model will issue additional shares to cover the Owner s Equity in the project The resulting current price earnings ratio is applied to estimate future stock performance based on accretion dilution of shares associated with new project equity and the resulting net income additions from the project to the Owner s account See the section above for information on how to issue shares in place of project equity If desired the user may alternatively provide an annual baseline data on the Owner s Stock in Table 1C Project Revenue and Operating Expenses PPA Pricing Terms 1 3 The EconExpert WIND model is set up to handle 3 different time periods terms within the specific project life and then up to 4 different pricing structures within each of those terms In other words the user can specify four different customers in each pricing term In the simplest case the user can have one price for all power for the entire life of the project In the most complicated case the user can set up to 12 different prices over the life of the project divided into 3 terms The picture below attempts to visually explain this concept Figure 18 Table 1 Wind Global Inputs PPA Pricing Structure p 60 EconExpert WIND Users Manual Copyright 2005 2011 The number and length of the terms are specified in the Project Schedule sectio
93. l not be capable of performing any new calculations Since the Sensitivity Cases included with a Values Only Copy cannot be updated after the model is converted you will be offered the option to run all of the Sensitivity Cases and Tornado Diagrams prior to the conversion If you decline this option the Tables on the Sensitivity Sheet Tornado Diagrams and Sensitivity Graphs will be deleted to ensure that the Values Only copy does not contain Sensitivity Cases that are inconsistent with the case provided Depending on the speed of your computer running all of the Sensitivity Cases as a batch should take between 1 and 3 minutes Prior to executing a Values Only conversion you will be prompted with a number of warnings advising you to save the results before making the conversion and to save the Va ues Only file to a new name These warnings are to ensure that you dont accidentally overwrite your original copy of the Fully Functioning model If desired you can archive a Values Only copy of the model that can be restored by a licensed user to a full working version of the model To restore a full working version from a Recoverable Values Only copy use the Import option on the UTILITIES MENU Please be aware that under the terms of the Software License Agreement all printed reports and copies of EconExpert WIND must contain the original copyright notices p 80 EconExpert WIND Users Manual Copyright 2005 2011 Sensitivity Analyses
94. le 4 provides calculations of all operating expenses and related escalation factors Escalated annual fixed and variable operating expenses are computed in 1 000 yr based on inputs to Tables 1 and 1C Table 4 is organized as follows e The top Section o Partial year adjustments o Escalation rates o Calculations for operating expense items e The bottom Section o Accounts Payables and Receivables o Operating Costs o Balance Sheet items including Working Capital contributions Spare Parts Purchases and O amp M Reserve contributions o Working Capital and O amp M Reserve Account balances Itemized operating cost categories provided in Table 4A include o Variable Cost O amp M 1 2 Fixed O amp M Cost 1 3 Other O amp M Cost 1 4 Consumption of Spare Parts Land Lease and Developer Lease Payments User Defined Variable O amp M 1 3 Property Taxes and Insurance OO OU 0 Table 5 Debt Service Table 5 provides detailed calculations of principal and interest payments on primary and subordinated debt Debt Terms entered in Tables 1 and 1C are reported and resulting annual debt service requirements are calculated and displayed Debt Coverage Ratios are also reported Table 5 is organized as follows e The top section of Table 5 provides the factors used for the Debt Service calculations o Custom Debt Treatment Accelerated Principal Payments Interest Only Payments o Schedules Breakdown of Interest Rates Interest Payments Princip
95. ll Losses and adjustments for the Curtailment Risk and Availability Factor Compounded Efficiency Losses and Net Capacity The inputs for this section are used to degrade the generation amount specified in the above section Each line item has a definition in the Help Comments for that cell Below the inputs the Capacity and Capacity Factors are shown for each of the different levels specified above Gross Capacity Capacity after Array Losses and Capacity After All Losses and Risks The Plant Capacity Factor is the percentage of potential annual generation that is produced over the year So a capacity factor of 80 means that the net annual MWH sold from the facility is 80 of the plant s generating capacity times 8760 hours year As the Curtailment Risk and Availability Factor do not really reduced Capacity there is not a capacity factor calculated after those losses are accounted for Economic Factors This section captures the escalation rates and discount factors that determines the base rates throughout the model Inputs here include e Base Year The time frame from which all escalation calculations will be performed Operating Cost and Revenue inputs to Table 1 are expressed in Base Year and will be escalated to the current year by compounding the Real Escalation Rate assigned to that component with the GNP Escalation Rate described below e GNP Escalation Rate The life of project rate of general inflation Each cost or revenue i
96. ly important because it specifies the IRR Term that will be used in EconExpert WIND s Automated Sensitivity Analyses Table 1C Annual Inputs Annual Inputs apply only to a given year in the life of the project You can use Annual Inputs any time that you would like to more precisely model a variable than can be accomplished using Table 1 Global Inputs Examples of how you can use Annual Inputs to Table 1C to perform custom calculations include e Varying generation or losses year over year e Forward electric price curves e Customized debt including o Floating Interest Rates on Debt o Accelerated or Deferred Principal Payments Sweeps tied to the Debt Coverage Ratio o Interest only payments o Lump sum principal repayments e Modeling of a specific contracts or agreements for o Lump sum principal repayments p 69 EconExpert WIND Users Manual Copyright 2005 2011 o Power Purchase Agreements o O amp M services LTSA agreements e Modeling of specific gearbox failures e Use of the User Defined Fields that permit completely flexible customization of the model Any non zero entry is read as an Annual Input and included in the calculations in the model If the cell is blank or a value of zero OU appears in the cell the corresponding Global Input will be used If it is desired to enter a 0 for Annual Input use a very small non zero entry such 0 0000001 and the value 0 will be used in the model overriding any entry from Global Inputs
97. mat for use in EconExpert WIND e Results Tables Select from a list of various Results Tables produced by the model The Results Tables are also identified by the Worksheet Tabs shown at the bottom of the Excel screen e Summaries There are two summary tables a comparison sheet and the status sheet that can access via this Navigate menu option e Sensitivity Graphs The graphs that are produced from the many sensitivity options Navigation to the results in tabular format is described below e Tornado Diagrams Select to view the tables and graphs produced by EconExpert WIND that are used to generate the Tornado Diagrams Navigation to the results in tabular format is described below e Tornado Tables Select to view the tables and graphs produced by EconExpert WIND that are used to generate the Tornado Diagrams Navigation to the results in graphical format is described above e Project Valuation Tables The tables associated with the valuation of a project or asset based on the target Internal Rate of Return IRR that a for profit investor would target to achieve Navigation to the results in graphical format is described above e Sensitivity Tables The tables that are produced from the many sensitivity options Navigation to the results in graphical format is described above e Title Sheet Select to view title sheet e Software License Select to view software license p 26 EconExpert WIND Users Manual Copyright 20
98. may need to be updated to reflect the new case The formatting of charts or graphs in Excel may require adjustments as the values that are charted are changed You may also want to customize a chart To modify or customize a chart created by EconExpert WIND first Disable Range Protection using the UTILITIES Menu Then click on the appropriate Chart to view edit the Excel Chart Options After finishing it is recommended that you re enable the Range Protection For Help on formatting Excel Charts use Microsoft Excel Help and search for charts p 83 EconExpert WIND Users Manual Copyright 2005 2011 Tornado Diagrams The SENSITIVITIES menu also provides you with options to generate Tornado Diagrams While the individual Sensitivities on this menu allow you to selectively study effects of changes individual inputs Tornado Diagrams illustrate how the NPV or IRR of the current case will be impacted by individually incrementing multiple inputs Each of the respective Tornado Diagrams is generated by varying the inputs for the life of the project based on inputs to either Table 1 or Table 1C The Sensitivity Sheet is used to generate the tables used for the Tornado Diagrams The Increments used for the Tornado Diagrams are entered in the Data Input Sheet that is opened when you select the respective Tornado Diagram from the SENSITIVITIES Menu An example of the Data Input Sheet that will be opened is provided below Figure 35 Tornado Dia
99. meters You can specify the term in years of the IRR Analysis that is used in the p 81 EconExpert WIND Users Manual Copyright 2005 2011 Sensitivities by entering the desired number of years in the third column of the IRR Summary Table at the top of Table 1 The location of the entry is identified by the red bold faced title TERM USED FOR SENSITIVITY Setting the Term You can specify the term in years of the IRR and NPV Analyses that are used in the Sensitivities by entering the desired number of years in the third column of the NPV and IRR Summary Tables at the top of Table 1 The location of the entry is identified by the red bold faced title IRR TERM FOR SENSITIVITY STUDIES as shown in Figure 19 below Figure 33 Table 1 Wind Global Inputs The IRR Sensitivity Term After Tax IRR TERM USED FOR End of Year SENSITIVITIES 6 18 12 59 15 94 1 82 9 94 12 83 Sensitivity Increments Sensitivity Analyses in EconExpert WIND are executed by incrementing the selected variable over a range of values that can be defined by the user The Sensitivity Increment is used to define the range by iterating the model over 7 intervals from the base case value minus three times the Increment to the base case value plus three times the Increment When you run a Sensitivity Analysis you will be prompted to enter the respective Increment to be used If you run all of the Sensitivities as a batch you will be advised of the current
100. mpared each respectively activated in one of the files p 34 EconExpert WIND Users Manual Copyright 2005 2011 A new worksheet is created with copies of all of the tables in the model Every cell in the model inputs or calculations that has changed is identified by highlighting with an orange background and the amount of the difference between the two cases either positive or negative is quantified NOTE This is amemory RAM intensive procedure It is recommended that you close other applications and spreadsheets before it is initiated The procedure will involve four spreadsheets o The target EconExpert WIND is the model that you want to identify the changes in The target model must be opened first The reference EconExpert WIND model is the model that you want compare changes against The reference model must be opened second Record the filename of the reference model as you will need to enter this information The comparison file which you will name will highlight the fields that have been changed A temporary file that EconExpert will create and then delete NOTE The target and reference models must each have at least two available windows and the target and reference models must have different names and both must be enabled A copy of each of the respective Input and Results Sheets from the target model will be created in the comparison file with a name that you designate All changes will be quantified and highl
101. n formatting graphs in Excel see the Excel Help Menu and perform a search for Charts NOTE When a graph is selected the EconExpert WIND Command Menu will disappear The Menu will reappear when the selected graph is closed The graph can be closed by clicking on any cell in the model Temporarily Change Company Name on Reports You can temporarily change the name of the company that will appear in the reports that are generated from the EconExpert WIND menu When you reinitialize the model the name will be reset to the default value that the model is registered to p 41 EconExpert WIND Users Manual Copyright 2005 2011 e Table Viewing and Formatting Selecting this option will allow you to change the format of the Tables in the model The options include o Freeze and Unfreeze Panes Freezing titles allows you to set the header rows and columns of all tables in the model so that the row and column titles will remain on the screen as you scroll down or across the individual tables You can also unfreeze the titles for all tables in the model o Since most of the worksheets in EconExpert WIND are protected you will not be able to change the cell formats from the Excel menu but this option has been added to the UTILITIES Menu allowing you to change the format of selected cells in the model You can selectively change the number format shading font color font type underline borders or column width of tables and cells in the mod
102. n has a small dependency on the amount of debt assumed This effect is very minor and will not be observed if either annual inputs or a fixed 1000 yr amount is entered for Property Taxes and Insurance costs Results in Table 8A are expressed based on the Owner s percentage interest in the project Table 9 Sources and Uses Table 9 provides an analysis of the Sources of Funds and the Uses of Funds in 1000 during the construction period and during the operations phase of the project Sources and Uses of p 52 EconExpert WIND Users Manual Copyright 2005 2011 funds are balanced in each year A complementary Sources and Uses calculation during the operations phase is provided in Table 12 where results are expressed in MWH Results in Table 9 are expressed based on the Owner s percentage interest in the project Table 10 Major Maintenance Table 10 provides calculations of Periodic Capitalized and Expensed Major Maintenance Costs The balance accumulated in the Major Maintenance Reserve account is also calculated Major Maintenance Reserves are applied to Periodic Major Maintenance Expenses in years when Major Outages have been scheduled Periodic and Capitalized Major Maintenance Costs are depreciated for Book and for Cash Purposes Expensed Major Maintenance Costs are treated in the same manner as are Fixed Operating Expenses Table 11 Financials Table 11 provides the Project s Financial Statements including the Income Statement
103. n of Table 1 Ifa term is selected the fonts will be normal If aterm is not selected the fonts will be gray and hard to read For example in the diagram below only two terms were indicated in the Project Schedule section so the third term is grayed out Figure 19 Table 1 Wind Global Inputs PPA Pricing Summaries Project Revenue and Operating Expenses Energy Contracts or Merchant Sales PPA Pricing Summary Contract Term 121112006 to 130120276 rms Customer 2 Customer 3 Customer 4 771 Assigned Name Fwnyea i of Annual Mwh Produced woos S me sneer cer OR up to Myh Soldin Period OOOO a 52 1 Energy Prices Jeighted Average jon Energy Sales d Less Transmissiontwheeling Charges a Met Electric Sales Price 1 50 00 0 00 0 00 0 00 50 00 2 0 PPS Pricing Summary Second Term 124112026 to 1720 2031 Assigned Mame SC of Annual Mib Produced OR up to Myk Sold in Feriod Energy Prices rv a si EEE Energy Sales Less Transmission wheeling Charges Met Electric Sales Price 2 The user can also assign names to each of the terms in the Project Schedule and can name each customer in this section The user may specify the percentage of yearly production that will be assigned to each price customer or the user can set a generation limit up to that amount The logic is from left to right meaning that the customer in the far left column will be served first and the customer in the far rig
104. n the UTILITIES Menu include Load Global Inputs Wizard Pop Up Results Summaries Compare EconExpert Wind Cases or Files to Identify Changes b Create Values Only Copy of the Model for Sharing with Others Data Conversion Sheet Table 1D Link to Annual Inputs Sheet Import Data from another EconExpert Wind Model Save Exchange Restore or Clear Inputs Set up Model in Quick Project Analysis Format Formula Auditing b Help Comments in Cells Link Management b Locking of Input Cells and Protection of Graphs 1 Page Summary F Temporarily Change Company Name on Reports Table Viewing and Formatting d Software Licensing and Registration e Load Global Inputs Wizard The Global Inputs Wizard will walk you through each section of Table 1 Wind Global Inputs and allow you to directly jump to any section Each section has its own print area which is also access from the Wizard e Pop Up Results Summaries These summaries are convenient pop up reports that show O see Before Tax Returns After Tax Returns Development Costs Installation Costs Revenues Operating Expenses Debt Service Project Cash Flow To close the summary simply click on the X box on the top right of the form e Compare Econ Expert Wind Cases or Files to Identify Changes p 32 EconExpert WIND Users Manual Copyright 2005 2011 o Comparison Feature 1 You can compare the Input Sheets of two different cases and identify which inputs have change
105. nput in Table 1 also includes a Real escalation entry which when added to the GNP Escalation Rate provides the effective rate of escalation for that input If the rate of escalation for an input is equal to the GNP Escalation Rate that input s Real Escalation Rate would be 0 0 If an input escalates at a rate higher than inflation its Real Escalation Rate would be greater than 0 0 and similarly it would be negative if the input escalates at a rate lower than the general inflation rate e Discount Rates Used for NPV Calculations on a leveraged and an unleveraged basis These are the rates used in Tables 8A and 8B for calculating the Net Present Value of the project discounted to the year of financial closing They are normally the cost of capital for the corporation e Interest Rate Earned on Escrowed Funds This is the rate earned on escrowed funds including Debt Reserves and O amp M Reserves If desired the user may alternatively provide an annual schedule of GNP Escalation Rates in Table 1C p 59 EconExpert WIND Users Manual Copyright 2005 2011 Figure 17 Table 1 Wind Global Inputs Taxes and Investment Tax Credits Taxes and Investment Tax Credits Taxes and Investment Tax Credits This section includes income tax and investment tax credits of Capital Cost Tax Credit Rate Applicable Tax Credit Amount S State Inv Tax Credit Reduce PTC Reduced 0 0 This section has an input for State Investm
106. nter 1 for Coal Coke Wood or Oil Enter 2 for Gas Gas Period 1AB 24B Energy Prices Energy Sales SAMAH Less TransmissionWheeling SMAH 0o Economic Factors Net Energy Price to Customer MVYH 44 00 28 00 0 0 Base Year Constant Dollar in Mid Year Period 1 2 Fuel Prices Period 1AB 33 GNP Escalation Rate for Revs amp Exps Gas FOB Supplier 2 65 MMBtu Transportation HSB Discount Rate for Unleveraged NPY 10 00 Transportation 2 a MMBEU Interest Rate Earned on Escrowed Funds Su a PSSST X Equity and Project Ownership Debt Fuel Quality Selected Fuel GAS During Construction 100 0 Higher Heating value of Fuel 1 000 Btu SCF During Operations HETE GE S 0 00 lb Ach Owner s Interest in the Project 100 0 0 00 lb SO2MM Fnviranmental Controls i SE amet Be H EconEx B y xls 1 E y xls 2 Sisi E t xls 2 Comp 253 0094 1 56 PM e Comparison Feature 2 You can compare all of the sheets quantifying the magnitude of changes between two cases This Macro works only with identical versions of EconExpert WIND This procedure allows you to compare and quantify differences between two different EconExpert WIND models You can also compare and quantify differences between an active input sheet and a holding bin in the same model by saving the current model as two different file names with the desired cases to be co
107. ntil a later year in the project All results calculated using the Global Inputs Sheet will be prorated based on partial years of operation in the first and last years of the project life as appropriate A red asterisk identifies cells where a potential warning message is located Also note that when inputs are entered in Table 1C Annual Inputs that override a particular entry to Table 1 Wind Global Inputs the cell format in Table 1 will change to bold red and an annual input indicator will appear next to the respective input This feature is provided just to advise you that a particular input to Table 1 is being overridden somewhere else in the proforma NOTE Appendix also provides examples on how to use the various Global Inputs A variety of cell Help Comments also appear with each input in Table 1 To view the comments first enable them from the EconExpert Help Menu and then place the cursor over the red triangle on the corner of the respective cell p 57 EconExpert WIND Users Manual Copyright 2005 2011 Schedule and Production Project Schedule The first section at the top left of Table 1 is the Project Schedule where the user specifies the start of the project Financial Closing Date the duration of the installation Construction Term and the Project Life In addition in the section the user can segment the project life into multiple terms specifically for PPA or different revenue pricing Figure 16 Table 1 Win
108. nual Copyright 2005 2011 e Save Exchange Restore or Clear Inputs This feature allows you to store the input sheets to Holding Bins and then to later recall those input sheets Using this feature you can run multiple scenarios in the same spreadsheet The menu also allows you to load the default cases that are documented in the Appendix to this User s Manual You can also reset clear any Inputs Sheet and the Custom Construction Drawdown Schedule Options under Save Exchange Restore or Clear Inputs include Display Contents of Active Inputs and Holding Bins Clear All Input Sheets Clear Yellow Freeform Tables Clear All Holding Bins Table 1 Wind Global Inputs k Table LO Project Quick Analysis Table 1C Wind Annual Inputs Table 1D Data Conversion Sheet b Clear Custom Construction Drawdown and Debt Equity Schedules Preloaded Input Cases o Display Contents of Active Inputs and Holding Bins This option allows you to view the contents of the various Holding Bins described below NOTE The contents of the Global and Annual Input Sheet Holding Bins are also displayed at the top of Table 1 Global Inputs The Holding Bins are used to store copies of the input sheets Whenever you file a copy of an Input Sheet to a Holding Bin you will be prompted to name the sheet you are saving That name will appear in the description cell located at the top of each sheet and will appear in the window that is generated when you select this
109. o valued input is read in a year succeeding a change in the number of shares issued Table 1D Data Conversion Sheet The Data Conversion sheet provides additional flexibility to utilize energy pricing and performance in up to 24 Periods defined by the user To link this sheet with the rest of the model the user must select the option on the Utilities Menu to link the aggregated data in Data Conversion Sheet to the model by formula reference to the Annual Inputs Sheet In the Data Conversion Sheet there are annual entries for Hours in Each Period this is where you enter the Period Names Gross MWH Energy Production Curtailment Risk Reduction in Gross Production Energy Sales for each PPA Term Revenue per MWH for each PPA Term Plant Capacity and capacity factors mathematically averaged and referenced in Table 1C with formulas linked to the Data Conversion Sheet Input rows are unprotected and shaded in green Period 24 is calculated by difference to ensure that the total number of hours in a full calendar year is equal to 8760 note that leap years are neglected Please note the following points when you use this feature e All data is entered in Current e Data can be copied and pasted from other sources The pasted data should be pasted as VALUES from the source data file or can be linked using formulas e Aggregated results will be referenced by formulas in the Annual Inputs Sheet overwriting the current Annual Inputs an
110. odel but such Electronic Copies will not work properly on computers that are not Licensed and Authorized by CEI The shared copies can be made to be Fully Functional on a new user s computer by obtaining the proper License Extension Codes from CEI which can be provided to new Authorized Licensees as described when the Model is opened on an unauthorized computer in the EconExpert HELP Menu and in the User s Manual 9 3 Sharing of Electronic Values Only Copies of the Model The Model includes preprogrammed algorithms accessible through the Model s Command Menu that will generate electronic copies of the Model which contain only the values generated by a specific case and contain no formulas capable of analyzing other cases with the Model Users may share with third parties such Values Only copies of the Model that have been generated using macros that are accessed by the Model s Command Menu All such electronic copies shall include the EconExpert Trademark and copyright notices as provided by CEI in the Model 9 4 Sharing of Printed Reports Generated by the Model The Model includes preprogrammed algorithms accessible through the Model s Command Menu that will generate printed copies of reports which contain only the values generated by a specific case and contain no formulas capable of analyzing other cases with the Model Users may share with third parties such printed Values Only copies of the Model that have been generated using macro
111. ollowing screen will appear Figure 13 Data Import Instructions EconExpert Importing Data from Another EconExpert Model i E i x IMPORTANT FOR SUCCESSFUL DATA IMPORT PLEASE READ AND FOLLOW THESE INSTRUCTIONS Before transfering data you must open two copies of the EconExpert Model 1 The Destination EconExpert Model that you want to transfer data to This Destination model MUST be opened FIRST 2 The Source EconE spert Model that you want transfer data fram This Source model MUST be opened SECOND and must have at least 2 available windows E conE spert Default The two files MUST have different names Input Data will be transfered as WALUES 20 any formulas used for data input will be lost and must be manually re entered after the transfer The transfer may take a few minutes Do NOT attempt to nterrupt the transfer once it has started re the appropriate files opened and do vou want to continue Enter Tes to Continue with Import No to Stop to first open Source Data File with macros DISABLED This is the complete set of instructions for data transfer Important points include O Open the Destination Model first The destination model is the new version of EconExpert WIND that you would like to import data to Open the Source Model second This is the version of EconExpert WIND that contains the input data that you would like to transfer from p 38 EconExpert WIND Users Ma
112. onExpert EconExpert Solar Photovoltaics IAT for WIND WIND Solar Thermal EconExpert s Land Fill Gas Natural Gas PV e Clean Coal IGCC EconExpert e Nuclear Power l Electric Power Retail Behind the Meter EconExpert EconExpert s Small Solar PV or Wind IAT for PV Wind MDG for PV Wind Combine Heat and Power e Fuel Cells EconExpert EconExpert TAT for CHP DG for CHP Specialty and Commodity Products s Ethanol Biodiesel EconExpert Bio Chemicals Hydrogen Sulfur CP s All Refining Applications Electronic Databook Your In House Portfolios Analysis Models s Multiple Scenarios Feonk xpert Partnershups and EconExpert WA ESTRO wall work with your own in house custom models or with any of the EconExpert Project Financial Models descnbed above p 88 EconExpert WIND Users Manual Copyright 2005 2011 EconExpert WIND Software License IMPORTANT PLEASE READ THE TERMS OF YOUR SOFTWARE LICENSE oday s Date eptember 29 2010 icense Period August 10 2010 Onti une 15 20 The EconExpert WIND Financial Model by Competitive Energy Insight Inc SOFTWARE LICENSE AGREEMENT Read Carefully Before Using This Software Before the installation of this software can be completed you must accept the terms of the License Agreement the Agreement below by clicking on the I HAVE READ AND ACCEPT button at the end of this Agreement If you do not accept the License Agreement terms you are not authorized to u
113. onExpert WIND you may want to check this setting on your version of Excel To do so select Tools gt Macro gt Security from the Excel Command Menu 2 Onthe Security Level Tab the settings selection should be MEDIUM or LOW The MEDIUM Setting will continue to provide you with the warning message concerning spreadsheets that contain macros 3 Open the extracted xls EconExpert WIND file with Excel Also it is recommended that no other worksheets be opened when you are installing EconExpert WIND If your security level setting is set to MEDIUM as discussed above Microsoft Excel will now provide you with a warning which is similar to Microsoft Excel 7 CEcon Expert Financial Model v 0 L5 contains macros Macros may contain viruses It is always safe to disable macros but if the macros are legitimate you might lose some Functionality Enable Macros More Info Figure 3 Microsoft Excel Enable Macros Screen Excel 2007 2010 If you are using Excel 2007 2010 in order to properly access EconExpert please do the following 1 Open Excel 2007 2010 2 Select the Office Button on the top left corner of your screen 3 Select the button labeled Excel Options on the bottom right of the dialog box EconExpert WIND Users Manual Copyright 2005 2011 Recent Documents b b b pg send E L Excel Options f X Exit Excel Figure 4 Excel Office Dialog screen select Excel Options 4 Select the ch
114. onExpert WIND that contains the input data that you would like to transfer from e Create Values Only Copy of the Model for Sharing with Others From the UTILITIES MENU or from the EconExpert Help Menu you can create a Values Only copy of the current EconExpert WIND case This Values Only copy of EconExpert WIND can be shared with others who may not be licensed to use EconExpert WIND It will not be possible to run new cases using the Values Only copy and once saved and reopened the EconExpert WIND Command Menu will have limited functionality the NAVIGATE PRINT and HELP options will be Fully Functional No special license codes will be required to open and view the Values Only version from any PC that has Microsoft Excel Versions 2002 or later Since the Sensitivity Cases and Tornado diagrams included in a Values Only copy of the model will only be accurate if they are updated to the current case you will be offered the option to run all of the model se Sensitivity Cases prior to converting the model to Values Only This may take several minutes to execute depending on the speed of your processor The Tornado Diagrams must be individually generated If you elect not to update the Sensitivities the Sensitivity Tables Tornado Tables Sensitivity Graphs and Tornado Graphs can be deleted from the Va ues Only Prior to executing a Values Only conversion you will be prompted with a number of Warnings advising you to save the original spreadsheet be
115. onsolidated summaries of the results generated in Tables 3 11 Table 2 is organized as follows e Top Section Basic Summary o Unleveraged and Leveraged Annual NPVs and IRRs o Return on Equity o Debt Coverage Ratios e Bottom Section Expanded Summary Construction Expenditures Revenues Expenses Debt Service Taxes Leveraged Cash Flow Operating Cash Flow Breakdown Unleveraged Cash Flow O O DO OO 0 0 0 p 47 EconExpert WIND Users Manual Copyright 2005 2011 Input Sheets These sheets contain all the possible inputs for this model A more detailed description of the inputting process is discusses later in this manual Table 1Q Quick Project Analysis This table is used to quickly analyze a wind power project by only focusing on set of economic inputs to model a project Simply entering values on this table is insufficient to perform a quick analysis The user must go to the Utilities menu and select Table 1 Wind Global Inputs o Table 1 is where Global Inputs are entered Global Inputs are premises that typically apply over the life of the project or input values that are escalated at a constant rate over the life of the project o Inputs to Table 1 are organized into categories of inputs that can be located using the NAVIGATE Menu by scrolling through the Table or by using the Global Inputs Wizard Table 1 is Range Protected allowing you to enter data ONLY into specified green shaded input cells o The individual
116. operations in the first year and accelerate capture of depreciation in the last year of operation if the project is retired before the end of the depreciation life Deferred taxes are calculated by the model based on the difference between book and cash taxes resulting from the differences between these two depreciation calculations In addition to the six standard 5 7 10 15 20 and 30 years MACRS depreciation Classes that are programmed in the model the user may select from two additional categories that can be defined by the user To use either or both of these categories first name the category in the unprotected cells titled User Defined in Table 11 and then specify the percentage of the tax basis to be depreciated in each of your user defined categories Next from the NAVIGATE menu select NAVIGATE gt Results Tables gt Table 13 Depreciation In the shaded cells specify the amount in decimal fraction 0 100 10 0 to be depreciated in each year such that the total sums to 1 000 100 0 Figure 26 User Defined Depreciation Schedules in Table 13 Depreciation 1 2 3 4 2009 2010 2011 2012 2013 10 12 12 12 12 e Return to Depreciation Section of Table 1 Global Inputs um Year Months Applicable During Year Schedules for Capital Investment Costs BOOK Depreciation Schedules Straight Line 5 Year SL 10 Year SL 15 Year SLI 20 Year SL 30 Year SL SL Cash Tax MACRS Mid Year Convention Capture balance in las
117. or This entry logic is unique to the model Fixed and Other O amp M Costs Fixed Operations and Maintenance O amp M costs are not dependent on annual net generation Fixed O amp M Inputs to Table 1 can be entered in either of two sections Fixed O amp M and Other O amp M Fixed O amp M is structured to handle a Warranty Post Warranty and another period of costs The user can name these categories and the names will be carried into the various tables and charts throughout the model Each category has a starting and ending year and in most cases the starting year for the second and third categories should follow the ending years for the previous categories Other O amp M offers four independent categories for fixed O amp M costs set up so that the user can name each category The annual fixed O amp M values can be entered in 1000 year Annual for a full calendar year of operations or on a per turbine basis The two entries are additive meaning if you enter values in both cells the values will be combined for a total Costs are also expressed in Base Year and a Real Escalation factor is provided Note that real escalation will be added to the GNP Escalator to arrive at the actual escalation for that component Spare Parts The model is structured to have a one time Spare Parts Purchase which places an amount of spare parts in inventory Next there is also a Spare Parts Consumption rate which specifies the amount of spare parts
118. orial e The model has been fully initialized and is ready for use You will now be transferred to the EconExpert Wind Title Screen Copies of the spreadsheet will not work properly on computers that do not have licensed authorized installations If you forward copies of the model to others who do not have an active license or you try to use the model on another computer that copy of the model can be enabled by obtaining the appropriate License Authorization Codes from CEI Once entered the codes will fully enable the use of EconExpert Wind Title Screen on that computer for the subject license period Also the EconExpert Wind Title Screen does not have the Enable model option however the model will not link to other workbooks and will not assimilate results from other workbooks unless the subject license is valid Click Here to View Website EconExpett wm A Universal Financial Proforma S Click Here to REFRESH EconExpert WIND Menu Click Here to Start 2 At Table 1 Wind Global Inputs You may download the EconExpert User s Manual from the Website or contact us at Competitive Energy Insight Inc 12025 Blue Diamond Court San Diego CA 92131 Tek 858 566 0221 Fax 656 566 0287 This software is for the use by licensed users only This spreadsheet and its associated visual basic macros are protected by copyright law and international treaties Unauthorized reproduction reverse engineerin
119. our worksheets in EconExpert WIND provide plots showing results of Sensitivity Analyses to study how the IRR of a project will be impacted by incrementing individual inputs to the model The corresponding Sensitivity Cases must be executed from the EconExpert WIND Command Menu in order to reflect results consistent with the current case The Sensitivity Increment for each case is entered in the respective tables that appear for each variable in the Sensitivity Sheet The term used for all of the Sensitivity Analyses is entered at the top of Table 1 The Sensitivity Graphs provide plots of Leveraged and unleveraged IRR versus the variations in the selected parameter IMPORTANT The Sensitivity Graphs are not updated automatically Prior to printing the Sensitivity Graphs they must be updated by running the corresponding Sensitivity Analysis for the current case This can be accomplished by selecting the SENSITIVITIES option on the EconExpert WIND Command Menu All of the Sensitivities can be run as a batch from the EconExpert WIND SENSITIVITIES menu EconExpert Wind Charts Tornado and Parametric Sensitivity Charts One worksheet in EconExpert WIND provides plots showing all of the respective Tornado Diagrams used to study how the IRR of a project will be impacted by incrementing multiple project inputs The corresponding Tornado Diagrams must be executed from the EconExpert WIND Command Menu in order to reflect results consistent with the current cas
120. r Capital Improvements Four schedules are provided in Table 1C that allow the user to input additional Capitalized Major Maintenance Expenses using Depreciation lives of 5 10 15 or 20 years e Depreciation for Book Initial Investment and Major Maintenance o The Initial Capital Investment Periodic Major Maintenance Expenses and Other Capital Improvements are depreciated using the Straight Line methods specified in Tables 1 and 1C Sensitivities The Sensitivities Sheet is where Sensitivity Analyses and Tornado Diagrams are generated to study the impacts of variations of key project parameters on the calculated IRR and NPV The Sensitivities Sheet contains a series of tables each of which are used for a respective Sensitivity Analysis or Tornado Diagram The user may specify individual increment amounts to be applied to each of the respective sensitivities The IRR Term used for the Sensitivity Studies is entered in the IRR Summary Section at the top of Table 1 Additional discussion of how to use EconExpert WIND s automated Sensitivity Features is provided later in this manual p 54 EconExpert WIND Users Manual Copyright 2005 2011 Graphs Sheets Additional Charts accompanying EconExpert WIND are provided in the Sensitivity Charts file which accompanies the model If saved into your C EconExpert Files folder these charts will be automatically accessed when the corresponding sensitivity is executed Graphs Sensitivity 1 4 F
121. rbine Costs in EE i700 Subtotal All Wind Turbines Cost The next section in Phase 2 is the Balance of Plant expenditures All of the category titles can be modified in this section In the next section Other Costs there is only one category title that can be modified The other category is for the Project Valuation sensitivity explained in another section The user may also add contingency as a percentage of the other Phase 2 Costs and as a fixed amount in 000 the two entries will be summed if both are entered Likewise the user can enter a sales tax figure as an amount and as a of Phase 2 Costs the two entries will be summed if both are entered The last section is the Soft Costs which can be estimated using a Factored amount and a 000 amount If both are entered they will be summed Factored amounts are calculated as follows p 65 EconExpert WIND Users Manual Copyright 2005 2011 Start up and Mobilization Costs As a percentage of the total Fixed O amp M Costs in Base Year Debt Reserves Based on the equivalent prorated number of months of debt payments using a mortgage type payment schedule Debt Reserves Based on the equivalent prorated number of months of debt payments using a mortgage type payment schedule Vendor Letter of Credit as a percent of total Wind Turbine costs which decreases as payments are made and tracked on Table 3 Construction Working Capital Based on Accounts Receiv
122. red on Generation Losses lines above or from Table 1 is no values are entered e Net Energy Delivered The Net Energy Delivered also considers the Other Losses Energy Contracts or Merchant Sales For each of the PPA Pricing Periods determined on Table 1 the user can modify the annual production amount On Table there were options for up to 4 different pricing options for each PPA Period Those same options exist on Table 1C p 72 EconExpert WIND Users Manual Copyright 2005 2011 IMPORTANT If you have more than one PPA or pricing structure called Customer in the model for a given year if you enter one production value in this section you must provide all of the desired Periods for that year Otherwise the 4 Customer in each PPA term will be the default recipient of any excess production Energy Price During Each Period For each of the PPA Pricing Periods determined on Table 1 the user can modify the annual PPA price On Table there were options for up to 4 different pricing options for each PPA Period Those same options exist on Table 1C Other Revenues In addition to revenues realized from sales of Energy the user may specify other annual income sources in Table 1C which can include Renewable Energy Credits Other variable energy sales MWh Power sales based on capacity MW Additional Revenue Sources The user may input additional income sources into any of 4 User Defined Categories in any year of
123. rotected you will not be able to use the Audit feature on the Excel Tools menu By double clicking on any cell in the model you can bring up the formula auditor This option is also added to the EconExpert WIND UTILITIES Menu and on the Right Click feature in the spreadsheets allowing you to use the Excel Trace Functions to determine which cells in the model provide source data for any cell of interest and which cells in the model depend on that cell Help Comments in Cells You can turn on or off the Help comments that are provided throughout the model The Help comments are described in more detail in the next section Link Management This option enables you to break all the current links in the workbook Locking of Input Cells and Protection of Graphs 1 Page Summary This option allows you to turn ON or OFF the Range Protection for the Project Summary and the eight Graph Sheets This feature can be used to customize or enhance the model s preprogrammed graphs or to add new graphs to the model Unfortunately as various cases are run in any Excel model the formatting of graphs can change in ways that may not be desirable This is an acknowledged bug in Microsoft Excel If the formatting of the graph is disrupted it can be easily corrected by first turning OFF the range protection and then simply clicking on the graph to make the desired changes After completing the corrections it is recommended that you turn the protection back ON For Help o
124. s 40 You can check your Windows Display Settings in Windows by selecting Start gt Settings gt Control Panel Display gt Settings Zoom settings of 75 and 100 are also provided in the event that you would prefer to see a larger print format This might be desirable if you are displaying results using a digital projector p 42 EconExpert WIND Users Manual Copyright 2005 2011 To change the Zoom Setting from EconExpert WIND select UTILITIES gt Table Viewing and Format gt Set Table Zoom p 43 EconExpert WIND Users Manual Copyright 2005 2011 Help EconExpert WIND offers four On Line Help Features The EconExpert Help Menu Comments posted in individual cells throughout the model providing descriptions of the functions of individual inputs and overviews of tables provided in the model The EconExpert WIND Tutorial This User s Manual The EconExpert Help Menu EconExpert WIND is equipped with a Customized Help Menu to assist you in using the model The menu provides other instructions and Helpful hints on using the model technical definitions and access to special features of the model Items on the EconExpert Help Menu include O Tutorial The EconExpert WIND On Line Tutorial will walk you through the model and all of its important features Input Tables Descriptions of the functions of Table 1 Global Inputs and Table 1C Annual Inputs Worksheet Tables Descriptions of the purpose and functions of each of the 26
125. s that are accessed by the Model s Command Menu No other form of printed copies may be shared with third parties who do not have a current and valid license to the Model All such printed copies shall include the EconExpert trademark and copyright notices as provided by CEI in the Model and on all reports generated using the Model p 90 EconExpert WIND Users Manual Copyright 2005 2011 10 Limitation of Liability In no event shall Competitive Energy Insight Inc its owners employees affiliates representatives or assigns be liable for indirect incidental consequential special or punitive damages or for loss of profits or sales in connection with the use of the Model In addition CEI s total aggregate liability to Licensee under this Agreement shall not exceed the amount of the current annual subscription fee for one user that was most recently paid by Licensee This limitation of liability shall apply to all claims made by Licensee or its affiliates without regard to which other provisions of this Agreement have been breached or have proved to be ineffective 11 Copyright Notice The Model and accompanying documentation are protected by copyright law and international treaties The Model and accompanying documentation include copyright notices prominently displayed in the Model on reports generated and produced by the Model and in the User s Manual Use of the Model outside of the License term is expressly prohibited For inform
126. s with electric generation and assumes that the wind farm modeling has been done already or that the user has already estimated generation amounts The section accepts entries for six 6 defined Wind Rating levels P50 P60 P75 P90 P95 and P99 The user can enter generation values in MWh in one or any of the associated entry cells If the user only has one generation amount that they want to model they can enter that amount in any of the green cell and simply select the radio button next to the green entry cell This section is structured to allow the user to quickly run scenario analyzes for various wind profiles by simply clicking on the radio buttons and monitoring the impacts on project returns In addition there is a special Sensitivity graph just for comparing project economics based on the wind profile inputs A couple of the lines below the entry cells could use some defining and these definitions continue in the next section e Annual Gross Energy Production The generation inputted above before any losses from the section below are subtracted e Energy Production After Array Losses The generation minus the losses specified in cell D123 Wind park Efficiency Loss p 58 EconExpert WIND Users Manual Copyright 2005 2011 e Energy Production After ALL Loses The generation minus all losses that total to cell D142 which includes the array loss and all losses above line 142 e Net Energy Produced The generation after A
127. se the EconExpert Model This is a legal agreement between you the Licensee either an individual or an entity as the original purchaser and CEI By pressing the ACCEPT button below you agree to be bound by the terms of this Agreement If you can not agree to the terms of this Agreement please press the DECLINE button below and destroy the software and all accompanying items including printed materials and packaging if applicable 1 Description of the Model The EconExpert WIND Financial Model EconExpert or the Model is a spreadsheet designed to assist users with the financial analysis of wind Project electric power generation projects The Model requires the installation and use of Microsoft Excel for which Licensee must possess a valid license Licensee and Licensee s authorized users of the Model must use software and hardware that satisfy the minimum requirements specified in the Model s User s Manual 2 License Rights This Agreement provides Licensee and its Authorized Users with a limited nonexclusive nontransferable license right to install and to use the Model on specific desktop and laptop computers Authorized Computers The number of specific Authorized Computers must be authorized in writing fax or email by CEI usually by invoice and associated receipt of payment from Licensee Neither Licensee nor its Authorized Users may sublicense assign or transfer the license granted hereunder to any third party
128. t IAT for WIND for Interval Analysis of Combined Heat and Power Photovoltaics and Wind projects Simulate time of production analysis of energy sales as a function of interval energy prices demand load profiles hourly ambient weather conditions and facility operating characteristics EconExpert MAESTRO m an Electronic Databook for integrated analysis of multiple scenarios or projects based in your own custom models or in EconExpert Models With this tool users can perform tasks like consolidation of multiple projects into portfolio analysis providing consolidated expense debt revenue and book and cash financial statements and develop comparisons of complex and distinct p 87 EconExpert WIND Users Manual Copyright 2005 2011 scenarios contracting analysis and risk analysis integrating one or more of the EconExpert models described above For the calendar year 2010 CEI is providing the MAESTRO Databook for free with any subscription for 2 or more of the EconExpert models above Most features of the EconExpert Partnerships and EconExpert MAESTRO will work with your own in house custom models or with any of the EconExpert Project Financial Models described above The following is a schematic of the software suite The EconExpert Modeling Suite For All Renewable or Fossil Project Investment Analysis Vertical Project Partnership and Interval Models Financial Models Leasing Modules Electric Power Wholesale e Wind Ec
129. t year of life if Project Life is Less Teg 9 preciationLife 3 Year 100 0 33 3 5 Year 100 0 20 0 19 5 11 5 7 Year 100 0 8 9 10 Year 100 0 9 2 15 Year 100 0 6 9 20 Year 100 0 30 Year SL 100 0 Cash Tax MACRS Mid Quarter Convention Placed in Service 1st Quarter Capture balance Year 100 0 5 Year 100 0 7 Year 100 0 10 Year 100 0 15 Year 100 0 90 Year 100 0 NOTE The calculated unleveraged IRR may change slightly usually by less than 0 1 as a function of changes in Project Equity This can occur when you select the Factor option for calculating property taxes or insurance costs which when carried through to the unleveraged analysis are tied to the cost basis which includes interest during construction and so has a dependency on the amount of debt assumed This effect is very minor and will not be observed if annual inputs or only a fixed 000 yr amount are entered for Property Taxes and Insurance costs Calculation of IRR and the IRR Guess p 68 EconExpert WIND Users Manual Copyright 2005 2011 Calculation of the project s Internal Rate of Return IRR is an important analysis feature in EconExpert WIND The IRR and Net Present Value NPV are summarized at the top of Table 1 where you can continuously view how they react to changes in Inputs to Table 1 Microsoft Excel uses an iterative technique for c
130. tation 1 Fuel Transportation 2 User Defined Variable O2M1 Non Fuel variable O amp M User Defined variable O amp M2 User Defined Category 2 Sorbent for 502 Removal Anhydrous Ammonia for NOx Control Disposal of Ash Purchased Power Purchased Steam Annual Emissions Allowances User Defined Fixed O2M1 Plant Labor User Defined Fixed O amp M2 User Defined Category 2 Additional Expenses 1 1000 yr Additional Expenses 2 1000 yr Additional Expenses 3 1000 yr Additional Expenses 4 1000 yr Additional Expenses 5 1000 yr Expensed Major Maintenance Property Taxes Insurance Sub total Annual Deductible Operating Costs tA tA tA tA ER OA tA ER EN ER ER ER EA ER ER j j Major Maintenance amp Additions to Major Maint Reserves See Major Maint Sheet Total Annual Operating Expenses incl Deposits to MM Reserves Total Vvorking Capital NST TN EN E Balance in Major Maintenance Reserve Account 3 RE 13 13 LS LS 143 You May Use the Outlined Section Below for Calculations and Customiczati dn RA Start a e ra PER Meco EARCH Ey xts 2 EJt xls 1 Giel Siwe JISIe l CELT LIS FES 297 PM p 36 EconExpert WIND Users Manual Copyright 2005 2011 The orange shaded cells indicate where input changes have occurred in the target file relative to the reference file and identify the amount and direction of the change e of Ec
131. ternal Content Developer Macro Settings Privacy Options Trust access to the VBA project object model Figure 7 Developer gt Macro Security 9 Open the extracted xls EconExpert WIND file with Excel 10 Once the model is open select Options Document Panel Modify p 16 EconExpert WIND Users Manual Copyright 2005 2011 Fiqure 8 Security Warning Macros have been disabled Options 11 Select Enable this content EconExpert WIND Users Manual Copyright 2005 2011 Macros have been disabled Macros might contain viruses or other security hazards Do not enable this content you trust the source of this file Warning It is not possible to determine that this content came from a More information File Path Ch ert Files EconExpert WIND Proforma V15 7062 53D Beta 2010 ob vie 01 Help protect me from unknown content recommended Enable this content Open the Trust Center Figure 9 Security Warning Macros have been disabled Options gt Enable this content 12 EconExpert will now load 5 The installation of EconExpert Wind will proceed EconExpert Wind will be saved to your C Drive in the folder C EconExpert Files Settings for use of the model will be initiated Next the following screen will appear EconExpert WIND Users Manual Copyright 2005 2011 EconExpert Installer ECopynght 2007 2009 CE Inc All Rights Reserved Hello John Roberts of Energy Production Inc The Curr
132. this the current Annual Inputs will be lost You will be provided with a warning If desired you can save the Annual Inputs before resetting them This can be initiated from this same menu option NOTE Cost entries are input to Table 1C in CURRENT This means that the cost and revenue entries to Table 1C will not be impacted by escalation rates entered elsewhere in the model and fixed values will not be impacted by partial year operation The values will be used by the model as entered Most of the inputs included in Table 1C are self explanatory and all are accompanied by Help Comments that describe the purpose and function of that input Several of the specific inputs to Table 1C provide unique functionality and are individually described below Economic Factors You can vary the annual GNP escalation rate by entering non zero values into this section In the example provided the GNP Escalation Rate of 2 5 entered in Table 1 will be overridden in years 1 2 and 3 by the amounts 3 0 3 5 and 4 0 respectively In succeeding years inflation will default back to the Global Inputs rate of 2 5 if no entries are provided for those years Figure 28 Table 1C Annual Inputs GNP Escalation Rate p 71 EconExpert WIND Users Manual Copyright 2005 2011 TABLE 1 Annual Inputs i mee Year Operation in Year 1 and Year 21 Example Data Holding Bin 2 is not labled November 1 7005 Show Comment For Instructions Het Production
133. tional Copies of the Model During the term of your license you may save and reuse installed copies of fully functioning EconExpert WIND models as you would save any other Excel Spreadsheet To do so simply use the Excel Save or Save As selections on the Excel Command Menu The Spreadsheets you save will only work on computers that have authorized installations of EconExpert WIND If a saved copy of EconExpert WIND is provided to other parties who do not have a valid license they will be prompted to contact CEI to obtain License Codes to enable the model By entering these codes the models you send them can be fully enabled and users who receive and license EconExpert WIND from files shared by others will experience the same full functionality of the model as you will Without the appropriate codes transferred copies of the model will not function properly unless they are converted to a Values Only using the EconExpert WIND Command Menu Values Only copies will function on any computer but are limited to providing the results for the individual case studied when the model was converted NOTE The copyright provisions of your license expressly prohibit you from providing your original Installation Copy of EconExpert WIND to others Your name and license number are stamped on the model It is also important to note that when you perform a Save EconExpert WIND will be temporarily disabled showing Div 0 results throughout the various tables The Input She
134. torneys Fees shall survive such termination or expiration 15 Indemnification Licensee shall indemnify defend and hold CEI harmless from any and all third party claims demands suits and actions alleging injury to persons damage to property or other loss or liability resulting from Licensee s use of the Model 16 Attorneys Fees The prevailing party in any dispute mediation arbitration or litigation concerning this Agreement shall be entitled to receive from the other party its attorneys fees and costs incurred in connection therewith 17 Successors and Assigns Subject to the prohibition on Licensee s assignment this Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns 18 Consult Licensed Council CEI is neither a licensed legal firm a certified public accounting firm nor a licensed securities broker dealer CEI advises all clients to consult licensed legal tax and financing council in all matters where such council is appropriate or required By clicking on the button provided on the bottom of the License Sheet in the EconExpert Financial Model User ACCEPTS or DECLINES acceptance of the terms of this Software License Agreement If the License is declined the EconExpert Model will not be fully installed and should not be used
135. troduces any substantive risks to your computer but if you should be aware that you do this at your own risk What you are doing here is authorizing yourself to have the rights to install software on this computer This slider must be set to and remain in the setting Never Notify for EconExpert to open and function properly Choose when to be notified about changes to your computer User Account Control helps prevent potentially harmful programs from making changes to your Always notify Ska Never notify me when Programs try to install software or make changes to my computer I make changes to Windows settings Di Not recommended Choose this only if you need to use programs that are not certified for Windows 7 En because they do not support User Account Control EconExpert WIND Users Manual Copyright 2005 2011 7 Close the Control Panel 8 Restart you computer NOTE In Microsoft Vista the equivalent setting is to unselect the User Account Control Checkbox 4 Make the appropriate changes to Excel as directed below based on the version of Excel you are using Excel 2002 2003 IMPORTANT EconExpert WIND must be run with Macros Enabled Microsoft Excel Versions 2002 and later include a Security Setting that can prevent the user from opening spreadsheets that contain macros If this Security is set to HIGH then you will not be permitted to open EconExpert WIND with Macros Enabled 1 Prior to opening Ec
136. ty The Net Energy Delivered is calculated and shown below the entries p 77 EconExpert WIND Users Manual Copyright 2005 2011 Investment Costs Next the Investment Costs offer entries in 000 for Project Development Wind Turbines Balance of Plant and Other Costs The sum of these entries is shown below the green cells Revenues and Expenses The top right section contains the inputs for revenues and costs As this sheet is for a quick analysis there is only one energy price that can be escalated separately from the expenses Note this escalation rate like most on Table 1 are additive to the GNP rate Next there is an entry for any Renewable Energy Credits RECs and also the duration in years for the RECs Below the RECs is a Check box to include Production Tax Credits PTC The PTC value is automatically defined per current legislation Each year CEI will update the current year value to be used as well as the escalation Next there are three options for operating expenses The first two options are expenses on a Per Turbine basis and the third option is an annual amount All three entries are user defined The last operating expense is the Land Lease which can be entered as a percent of Sales or a dollar per MWH Project Finance Keeping the financing options simple the entries are straight forward p 78 EconExpert WIND Users Manual Copyright 2005 2011 Saving EconExpert VWIND Spreadsheets Saving Fully Func
137. u renew your license to the model If desired you may print the license by clicking on either of the Print License buttons at the top of the Screen If you read the license on your monitor be sure to scroll down the screen and read ALL of the p 19 EconExpert WIND Users Manual Copyright 2005 2011 applicable license terms A copy of the ECONEXPERT WIND Software License is also included in the Appendix to this User s Manual At the conclusion of the Software License you will be provided with the option to ACCEPT or DECLINE the ECONEXPERT WIND Software License Agreement READ THIS LICENSE CAREFULLY as by accepting it you will be legally bound to its conditions PLEASE NOTE THAT THE MODEL WILL NOT FUNCTION PROPERLY UNLESS YOU CHOOSE TO ACCEPT THE AGREEMENT IMPORTANT PLEASE READ THE TERMS OF YOUR SOFTWARE LICENSE Print License See Bottom of Sheet to Accept By clicking on the button provided on the bottom of the License Sheet in the EconExpert Financial Model User ACCEPTS or DECLINES acceptance of the terms of this Software License Agreement If the License is declined the EconExpert Model will not be fully installed and should not be used Have Read and ACCEPT the terms of the foregoing EconExpert WIND Software License Agreement Click Here to Accept and Enable the Model DECLINE the terms of the foregoing Expert WIND Software License Agreement Click Here to Decline and Close Model 9 The next screen confirms your
138. u to accurately custom model virtually any power generation project While the core tables in the model are locked and cannot be modified by the user in the vast majority of cases custom analysis can be accomplished using a combination of EconExpert WIND s Global and Annual Inputs Sheets Tables 1 and 1C In addition to entering values into these cells formulas may also be entered These formulas can be tied to other cells in the model or to custom tables that you develop Useful approaches for customizing the model include Free Form Sections At the bottom of each sheet a blank unprotected area formatted as Yellow Cells is provided where you can develop your own custom calculations In these areas you can set up your own tables which can be linked to other tables and calculations in the model Figure 37 Example of Areas as the Bottom of Each Sheet for Custom Calculations You May Use the Outlined Section Below for Calculations and Customization You can select the format of cells in these tables using the UTILITIES gt Reformat Cells option on the EconExpert WIND Command Menu which allows you to select various number or percentage formats New Sheets You can also insert a new sheet into the model To do this right click on any of the Sheet Tabs and select Insert Worksheet from the Excel right click menu To take best advantage of customization link your custom formulas to Annual Inputs in Table 1C Utilize the User Defined Input
139. values and asked if you want to use them or change them manually in the Sensitivity Sheet So for example when performing a Sensitivity Analysis on the Capital Investment Cost of the project the user might specify a Sensitivity Increment of 5 EconExpert will then iterate the model using values of 85 90 95 100 105 110 and 115 of the Capital Cost used for the current case and will then report in tabular and graphic format how the project s IRR will vary as a function of the resulting changes in the Total Investment Cost including Development Costs Capital Costs Soft Costs and Interest During Construction The Sensitivity Increment can also be specified in a cell in the Capital Cost Sensitivity Table After executing a Sensitivity Analysis the user will be taken to the resulting graph that illustrates how the project IRR is impacted by changes in the selected variable A sample of that graph is shown on the next page p 82 EconExpert WIND Users Manual Copyright 2005 2011 Figure 34 Graphs Produced from Sensitivity Analyses IMPORTANT IMPORTANT il NPV After Tax 20 Years at 10 0 Discount Rate Leveraged H NPV After Tax 20 Years at 8 0 Discount Rate Unleveraged Sensitivity analyses are performed for a specific case in the model showing upside and downside variations relative to the current case If Inputs to Table 1 or Table 1C are changed the current sensitivity cases
140. venues calculated in MWH during the operations phase These calculations are performed by dividing the annual revenues and expenses by the net annual power generation Table 12 includes the following expressed in Escalated Current MWH e Revenues by category including energy sales capacity sales and other revenues sources e Operating Costs by category including individual contributions to fixed and variable operating costs p 53 EconExpert WIND Users Manual Copyright 2005 2011 Debt Service Expenses including a breakdown of Primary and Subordinated Debt payments Sources of Funds including revenues from energy sales capacity sales and other income sources Uses of Funds including identification of net income after tax A Summary Breakdown of Revenues Expenses Debt Service Income Taxes and Net Income Table 13 Depreciation Table 13 provides calculations of Depreciation for Cash and for Book Purposes Depreciation is used to recover investment costs for items that have multi year lives including the initial Capital Investment and Major Maintenance Expenses that occur during the life of the project Table 13 includes the following e Depreciation for Tax Initial Capital Investment IRS Modified Accelerated Cost Recovery MACRS Schedules and State and Federal Bonus Depreciation e Depreciation for Tax Major Maintenance o Periodic Major Maintenance Expenses using the Major Maintenance Frequency defined in Table 1 o Othe
141. your software 15 ot wil be licensed on your computer This Bequired information can Se found by opening any Ucensed copy of the EconExpert model and selecting Foo xpert relp About FoonFxpert from the EconExpert command menu required fields Please check your licensed products d Leonixpert Partnerships Model 7 EconExpert MAESTRO Electronic Databook J Leonixpert wind d EcanExpert PV d EconExpert DG for PV d EconExpert OG for CHP J EconExpert EP d Leonkxpert CP SERVM J Leonixpert4al for CHP d Econ xpert af for PV d EconExpert lAT for WIND Your Name John Roberts Company Energy Production inc Emal Address john roberts energyproduction com Phone Number Let 123 456 7890 1111 Comments or Special insiructions Internet Protected Mode Off a sx R10 e 11 The next screen confirms the completion of your installation and gives you the option of viewing a tutorial NOTE You can choose to view the tutorial at this time by selecting Yes If you would prefer to view the tutorial at a later time you can do so by selecting Add Ins gt EconExpert WIND Menu gt Tutorial p 21 EconExpert WIND Users Manual Copyright 2005 2011 _ _ _ _ _ _ _ _ _ me EconExpert Wind V15 7062 3 Copyright 2005 2011 CEI Inc All Rights Res MES CONGRATULATIONS the installation has been successfully completed Would you like to view the Tut

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