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User`s Manual for the EconExpert

1. Quarterly Performance and Pricing Data Q1 Jan Mar Q2 Apr Jun Site Electric and Gas Use and Demand WITHOUT DG bcia Pradusiion Annual Change Scicen Weadaion Annual Change Maximum Total Site Electric Energy Demand 3 Month Average kw 2067 1897 Inputs Site Displaceable Non Chiller Electric Consumption 1000 kwh period oe Continued Displaceable Electric Chiller Power Consumption 1000 kwh period 450 400 Site Displaceable Thermal Use 1000 Therms Period 159 85 for DG Plant and Absorption Chiller Performance 7 3 Net DG Plant Electric Generating Capacity kw 2 000 gt and Max Waste Heat from DG Available For Non Chiller Thermal Offsets a Therms hr rter Engine Average Operating Heat Rate Btu kwh net Quarters OR 10 000 r DG Plant Gross Avg Fuel Input Therms hr HHV Basis Heat Rate Used Heat Rate Used gt DG Plant Capacity Factor in Each Quarter 95 0 lw 5 Calcluated DG Plant Electric Generation 1000 kwh period 4 104 Excess Production Excess Production Maximum Coincident Electric Chiller Demand Displaced by Waste Heat 300 Inputs 3 Month Average in kw Continued Displaced Electric Chiller Electric Consumption 400 for 1000 kwh period 3rd Absorption Chiller Capacity Factor in Each Quarter 46 3 45 8 i and Based on Annual Maximum 4h Tariff Data Basis of Savings and Revenues i inn uarters Associated with Adding DG CHP n Real E
2. Plant Capacity Heat Rate amp Fuel Type nergy and Fuel Pricing Profiles Period 14 Period 1B Rated Net Plant Capacity Mv eriod 14 Period 1B Net Heat Rate Electricity Onl of Annual MVVH Produced he a Real g Re Fuel Selection Enter 1 for Coal Coke Wood or Oil Enter 2 for Gas Period 1AB 2AB Energy Prices Escalation SMAH Escalati l 0 Energy Sales MVVH 0 0 0 00 0 0 Less Transmission vheeling SAMAH 0 00 0 00 0 0 Economic Factors Net Energy Price to Customer SAMAH 44 00 28 00 0 0 Base Year Constant Dollar in Mid Year L 0 Period 1 2 Fuel Prices Period 1AB 33 GNP Escalation Rate for Revs amp Exps Gas FOB Supplier S MMBtu 0 0 m imu va Discount Rate for Unleveraged NPY Transportation 2 S MMBtu 0 0 Interest Rate Earned on Escrowed Funds Net Delivered Fuel Price 4 MMBtu 0 0 Equity and Project Ownership Equity Fuel Quality Selected Fuel GAS During Construction 0 0 Higher Heating Value of Fuel 0 Btu 5SCF kd During Operations 0 0 i Ash in the Fuel by Weight oox 0 00 Ib AshMM Owner s Interest in the Project 0 0 Sulfur in the Fuel by Weight 0 0 0 00 lb SO2MM r Full Screen v X sk Fnviranmental Controls i stan 0 e G DB A SH Eco Hyatt Gyre 2 Etas Btate2 PyMicr Hjau ELLOS O15 PM The ORANGE shaded cells indicate where input changes have occurred in the TARGET file relative to the REFERENCE file and
3. gt Arial 8 A s B z u SBlB s 8 3 S MSM O A H S EE Bs l S File Edit view Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpertHELP ENABLE MODEL Tax Table1Stat f a Gues Before Click Here to REFRESH EcosExrpert DG Meau After Tz Holding Bin 1is Not Labled Active Annual Inputs Sheet is Blue Shaded Areas can be based on Historical Data Inputs transferred from the Monthly Data Sheet NPV IRR ar a AN sas PE OS m IRR After Taz IRR After Taz NPY After Taz LBW ites Tar OW Discouot Rate to Financial Close Date 20028 0 Discount Rate to Financial Close Date 2003 32 in 3 eee 3 163 880 NPY After Taz 6 0 Discount in 2003 Proforma nores OO ee in the Model and in the User s Manual are aaa for exam s examples or descriptions Switches ment Switches Federal State u u F Tri Generation Waste Heat Used for Chillers Tee Stimulus Depreciation E A Operating Lease barry Forward Su Rene ti Losses a Base Year Constant Dollar in Mid Year General Inflation Rate for Revenues amp Expenses ip nani Financial ze Discount Rate NPY EATA Term mo3 For Acquisitions enter 0 24 months Max Interest Rate Earned on Escrowed Funds a ife Years 20 Mai Equity and Debt Percentages F losing Date During Constructi
4. Const Term 8 Months Total Project Percent Equity 50 0 During Construction Interest Rate on Construction Financing 7 0 Loan Commitment Fee of Undrawn Balance 0 0 As Spent Amount Financed Less Interest and Fees 4 892 607 Loan Commitment Fees Interest Accrued During Construction 53 992 Total 4 946 598 Financed with Debt 50 0 Permanent Debt OR Capital Lease Financing gt Project Life 10 Years is Percent Equity 50 0 During Operations Primary Debt or Captial Lease Pct of Funds Borrowed on 01 01 02 Amount j 100 0 2 473 299 Total Term years 10 Interest Rate ki 7 5 Term of Loan years 10 Annual FinancingFees 0000 Subordinate Debt Pct of Funds Borrowed on 01 01 02 Amount S 0 0 Total Term years 2 Interest Rate gt Term of Loan years 0 Annual Financing Fees Revised 7 14 03 Page 109 EconExpert DG Users Manual Copyright 2001 2005 xxix Operating Leases Global Inputs In an Operating Lease the title and tax benefits are retained by the Leasor the Leasing Company and the Leasee makes a periodic lease payment At the end of the lease term the Leasee may have the option to purchase the facility at a Fair Market Value An Operating Lease is structured so that the Leasing Company the Leasor takes title to the project assets on their books As a result they are able to capture all of the associated tax depreciation at the Leasing Company s income tax rate
5. Engine Average Prenu Heat Rate Btu kwh net 2 500 Startup C DG Plant Gross Avg Fuel Input Therms hr HHV Basis 13 0 Working Capital _DG Plant Capacity Factor in Each Quarter 14 0 Debt Reserve Spare Parts Calcluated DG Plant Electric Generation 1000 kwh period 2 453 Total Investment Costs without Interest Costs 5 510 087 17 000 Construction and Permanent Financin Interest Rate on Construction Financing and Permanent Debt 31 0 Gas or Other Fuel Prices Site Uses Other than DG Plant Fuel Price Therm 20 000 Proje DG Plant Fuel Price Therm 21 000 t SA s Variable O amp M Costs SIYr 100 CF Water and Other Variable Costs i a State Income Tax Rate 34 0 Value of Excess Electricity Sold TO Utility c kwh 18 000 Standby Charges to Ensure Firm Backup Power kw mo 19 000 Fixed O amp M Costs Project Labor and Other Fixed Costs Revised 7 14 03 Page 117 EconExpert DG Users Manual Copyright 2001 2005 3 Table 1C Project 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 Project Global Inputs Any non zero entry is read as an Annual Input and included in the calculations in the model If it is desired to enter a O for Annual Inp
6. X M 4 gt pif Status Sensitivities 7 Project Summary Monthly Data Simplified Inputs Table 1 Project Global Inputs Table 1C Project Annual Inputs Tabe 4 of Figure 62_ Screen Shot of Table 1C Project Annual Inputs Revised 7 14 03 Page 118 EconExpert DG Users Manual Copyright 2001 2005 Table 1C is Range Protected allowing you to enter data ONLY into specified blue shaded Input cells Table 1C is organized into sections associated with each class of Input Categories Input Categories are organized with their related inputs listed in rows under that category The columns to the right in Table 1C each represent a year in the life of the Project 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 Individual input titles in Table 1C appear on the left of the table followed by the Input Indicator and notes about the group of inputs On the right side of the table shaded cells provide locations for inputs of annual data starting in the first operating year of the project life Table 1C is organized in the following sections Escalation Annual GNP Deflator Quarterly Performance and Pricing Data o Site Electric Demand and Tariff Data WITHOUT and WITH DG o DG Plant and Absorption Chiller Performance o Electric Energy Prices o Thermal Energy Prices
7. Blue Shaded Areas can be based on Historical Data Inputs transferred pri anal aise ae ly Data SI Description Default Inputs IRR TERM FOR NPV IRR and Payback Summary SENSITIVITY STUDIES No Annual Inputs Used After Tax AND TORNADO DIAGRAMS Term 5 I IRR After T 29 23 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 685 110 971 5 163 880 NPV After Tax 6 0 Disc i ii On Total Capital Investment 5 1 Years Proforma NOTES Inputs examples and descriptions provided by CEI in the Model and in the User s Manual are providec respect to the accuracy of such inputs examples or descriptions Switches Check Boxes Selected Tax Treatment Switches Fec Tri Generation Waste Heat Used for Chillers YES Use 9 11 Economic Stimulus Depreciation a Operating Lease NO Carry Forward Tax Losses Economic Factors DG Project Schedule Base Year Constant Dollar in Mid Year Month of Financial Closing General Inflation Rate for Revenues amp Expenses Year of Financial Closing Discount Rate NPV Construction Term mos For Acquisitions enter 0 24 month Interest Rate Earned on Escrowed Funds Project Life Years 20 Max Equity and Debt Percentages Equi Debt Financial Closing Date During Construction 50 0 Start of Operation Quarterly Performance and Pricing Data Dur
8. For the purposes of a partnership the percentage specified for Operations is the initial percentage invested in the partnership If a partner is given interest in the partnership but does not contribute any capital enter the partner name in the space available but leave the initial contribution blank or enter zero The next version of the model will allow for investors to bring property to the partnership as is done in many circumstances Property contributions are not enabled in this version as the US tax Codes is written differently for partners who contribute property instead of cash For simplicity sake we focused only on cash contributions to the partnership and assume that each partner enters the partnership at the same time Revised 7 14 03 Page 192 EconExpert DG Users Manual Copyright 2001 2005 Additional Annual Contributions Once the partners are defined with their initial contributions additional annual contributions can be inserted in Table 1P Partner Returns on lines 46 48 The total amount contributed by each partner is summarized directly below on lines 57 60 Tax Rates Partner specific federal income federal self employment and state income tax rates can be specified in the table located in cells K18 M20 Note that self employment taxes apply to guaranteed payments and will be calculated on ordinary income for general partners that are individuals partnerships or LLCs Corporations do not pay a self employme
9. 93 mB mD Arin g Eaa m a a Mal File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL P x Table1Stat f ia For Information on this model please contact Competitive Energy Insight Inc 12025 Blue Diamond Ct San Diego CA 92131 Tel 858 566 0221 Faz 858 566 0287 Email CElInc san tr com Website http www CElinc NET or www EconEzpert NET ae Ah 46 it e 3 25 2003 f res on 3 16 2004 Table 1 Section 1A GLOBAL INPUTS 2 a B ENCE ProformatCEI Commercial PibformatDistributed Green Shaded Areas Indicate DG Project Inputs Name of File eneration EconEzpert DG Proforma Y40 1495 UPGRADE zis Table 1 Blue Shaded Areas can be based on Historical Data Inputs transferred DR oe a f eemnes Poa IRR TERM FO NPV IR and Payback Summa SENSITIVITY STUMES After Tax AND TORNADS Holdin Active 2 No Annual Inputs Used UAGRA TT ee SPE city the life to be used for reporting the IRR and NPV in each IRR After Ta a Column NPV After Tax 6 0 Discount Rate to Financial Close Date 2003S 6 EE a Se ey a If IRR shows DIV 0 this indicates that the IRR is less than 0 If the IRR shows NUM try Payback using a different quess for the iteration in the IRR Guess Table on the right above Proforma NOTES earner Scenes ent g ces Eee Ta summary table is also used to specify the e providec IH IRR and NPV life used
10. Fully Functional Model Note that saved Fully Functional electronic copies of EconExpert DG 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 Using this feature you can also generate a Recoverable Values Only copy of the model A Recoverable Values Only copy preserves all of the formula references and customization that the user has incorporated into the model A full working version of the associated case can be recovered from a Recoverable Values Only copy using the Import option on the UTILITIES menu This provides a convenient way to archive EconExpert DG spreadsheets in files that take up less space on your hard drive typically 1MB Zipped Revised 7 14 03 Page 46 EconExpert DG Users Manual Copyright 2001 2005 k Populate with Input Data from the Simplified Inputs or Monthly Data Sheets To complement the Global and Annual Inputs sheets which are always active in the model EconExpert includes three other optional input sheets that can be used to add greater simplicity or sophistication to your model i The Simplified Inputs Sheet The Simplified Inputs Sheet provides a simplification of data entry to be used in the Global Inputs Sheet Inputs are entered in the shaded cells based on Annual Averages Red inputs indica
11. Effective Combined Income Tax Rate 38 3 Capital Gains Rate Plant Salvage 0 0 If desired the user may alternatively provide annual additional deductions and tax amounts in Table IC Revised 7 14 03 Page 113 EconExpert DG Users Manual Copyright 2001 2005 f Calculation of IRR and the IRR Guess Global Inputs Calculation of the Project s Internal Rate of Return IRR is an important analysis feature in EconExpert DG 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 calculating IRR The guess is a number that you believe 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 will not need to provide guess for the IRR calculation If a guess is omitted a guess of 0 1 10 percent is assumed by Excel 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 59 Table 1 Project Global Inputs The IRR Guess Guesses Used for IRR Iteration Before Tax 0 00 After Tax IRR TERM FOR No Annual
12. Pra eo 11101103 hoe 1998 ames Note Operations Simplifying Assumptions Generator Chiller Absorption Electric P ee ut TA os init soi i ami Chiller Total Electric Generator Operation Host s Total Energy Use Energy Price Operation under under this Absorption Total Benefits of Self Appetite for WITH DG WITH DG this rate block rate block Chiller Electric Generation and Chillers Electric Energy Operational Operational Rate Block hrs month hrs month Offset 1000 kwh 1000 kwh 1000 kwh Super Peak Super Peak On Peak Mid Peak Aggregated Values for June Revised 7 14 03 Page 152 EconExpert DG Users Manual Copyright 2001 2005 Inputs to TW2 include the following data Description This description is used to annotate the name of the applicable tariff WITH DG operational Base Year and Start of Operations It is necessary for the Time of Use Wizard to be fully synchronized with the case modeled in the Global Inputs Sheet and so these values are determined from entries to the Global Inputs Sheet All escalation calculated by the Time of Use Wizard will be from the Base Year Generator Capacity This represents the design net electric generation capacity of the DG facility in kw Absorption Chiller Tonnage This is the capacity of the Absorption Chillers in tons Absorption Chiller Offset This factor is used to calculate the effect
13. The resulting ANNUAL SAVINGS can be imported into the Other Revenues and Savings section of Table 1C Project Annual Inputs by selecting UTILITIES Populate with Data from the Monthly Simplified Data or Time of Use Wizard Sheets Transfer Time Related Demand Data to the Annual Inputs Sheet from the EconExpert DG Utilities Menu Revised 7 14 03 Page 163 EconExpert DG Users Manual Copyright 2001 2005 E Saving EconExpert DG Spreadsheets 1 Saving Fully Functional Copies of the Model During the term of your license you may save and reuse installed copies of fully functioning EconExpert DG 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 DG Ifa saved copy of EconExpert DG 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 DG 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 DG Command Menu Values Only copies will function
14. C EconExpert DG Users Manual v Where is your directory path and Your Name and Company is the name of the user who is authorized for this installation file THE MODEL MUST BE INSTALLED FROM YOUR C DRIVE Revised 7 14 03 Page 19 EconExpert DG Users Manual Copyright 2001 2005 If you have received Exe auto extracting files from CEI or the CEI Website using My Computer or Windows Explorer locate the directory where you saved the files and double click on them to initiate expanding the files The Initial Installation File you receive from CEI will only enable the use of the model for a limited period usually 30 days If you have purchased an extended period license to use the EconExpert DG model CEI will provide you with the necessary authorization codes to fully enable your use of the model for the subscribed license period e Step 2 Start Microsoft Excel and use the File Open command on the Excel Command Menu to select EconExpert DG Installation File V xxx xls from the directory where the Installation File has been added IMPORTANT NOTE EconExpert DG must be run with Macros Enabled Microsoft Excel Versions 2000 and later include a Security Setting that can prevent the user from opening spreadsheets that contain macros If this Security is set the HIGH then you will not be permitted to open EconExpert DG with the Macros enabled Prior to opening EconExpert DG you may want to check this setting on your version o
15. This is the Average of the three month PEAK electric energy demands at the location including electric chillers but WITHOUT DG Facility during the applicable period If the peak demand varies from month to month the values entered should represent the Average for the period since the quarterly demand charges will be an aggregate of the individual monthly charges during the quarter The values entered here will be used to estimate the costs associated with demand charges to ensure that adequate capacity is available from the utility if the DG facility is not available Inputs entered here will override inputs to Table 1 Project Global inputs in the years that non zero entries appear Electric Chiller Electric Energy Use 1000 kwh period WITHOUT DG Annual Inputs This is the total electric energy demand in 1000 kwh quarter at the location not including any power used or generated by the DG Facility and EXCLUDING the electric chillers The quarterly values entered here will be used to estimate savings associated with the displacement of electric energy purchases from the utility by self generation Revised 7 14 03 Page 122 EconExpert DG Users Manual Copyright 2001 2005 The Chiller requirements will be separately input in the next section In Tri Generation has been selected power for the Electric Chillers will be displaced by the use of Absorption Chillers Values entered here will override Global Inputs in the year
16. corresponding Tornado Diagram will show you how the IRR of your project would be impacted by a plus or ming Cogen Facility for the Current Case NPV and Payback impacts will also be calculated and can be alternative p Please note that due to the nature of timing and discount rate effects on the IRR and NPV calculations ti the respective IRR and NPV Tornado Diagrams may be different for the same base case Enter the Variation in Each Parameter to be y ed in the Tornadg Analysis Capacity Factor Fuel Costs for Cogen Plan Operating amp Maintg fiance Costs Standby Charges Capacity Factor Cogen Plant Fuel Cost g Fixed O amp M and Standby Charges of Annual MWH 5 or Fuel Use 10 Of Expensed Majof Maint 25 f of Sikw mo fee 25 of Costs Variable 08M Costs of Cosi 25 Wo Other Cost Categories Defing by the User Inputs to Table 1C f Not Included in All Fixed O amp M Item Above User Defined Costs 5 User Defined Costs A 5 User Defified Costs 25 of Costs in Table 1C O of Costs in Table 1C of Costs in Table 1C Category 1 Category 2 Category 3 User Defined Costs O User Defined Costs User Defined Costs of Costs inTable1c 25 Yo of Costs in Table 1C 25 of Costs in Table 1C 25 Category 4 Category 5 Category 6 Click to Create Click to Create IRR Tornado Diagram NPV Tornado Diagram Cancel The white boxes in this sheet are the locations where you tell EconExpert DG over w
17. differences between an active input case and that in a holding bin in the same model by saving the current model with two different file names Then activate each of the respective cases in one file and run the comparison macro This feature allows you to compare every input and calculation in the model and to quantify the change the Delta between the cases 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 on an ORANGE BACKGROUND and the amount of the difference between the two cases either positive or negative is quantified This Macro works only with IDENTICAL VERSIONS of the EconExpert DG model Also note that the Target and Reference cases must have identical start up years in order to be compared and that this is a memory intensive procedure It is recommended that you close all other applications and worksheets before initiating this procedure The procedure will involve three spreadsheets o The Target EconExpert DG Model is the model that you want to quantify the changes in The Target model MUST be opened FIRST The Macro should be initiated with the Target Model Selected o The Reference EconExpert DG 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 informatio
18. is 43 25 a 2 ral i pe A Conditional Formatting Arial 9 A s B z u E SOM Mh ER woe 583 E E BEHE HOo A Title _Entry_P f A 3 B 31 EconExpert DG V5 0 1654 Copyright 2001 2002 2003 Competitive Energy Insight Inc All Rights Reserved Click Here to iew Web Site Click Here to Start at Input Sheet Tabl lobal Inputs Click Here to iT i sc i REFRESH A Universal Financial Proforma T DG 32 VERSION 5 0 with Tariff Wizard Thank you for choosing EconExpert DG the first Truly Universal Financial Proforma for the Distributed Generation Cogeneration and Supporting Industries For Information on EconExpert DG please contact Address Competitive Energy Insight Inc 12025 Blue Diamond Ct San Diego CA 92131 Tel 858 566 0221 Fax 858 566 0287 Email CElinc san rr com Website http iwww CElinc HE or ittp iw ww EconExpert NE g 35 You may download the EconExpert DG User s Manual from the Website for FREE 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 engineering modification or distribution of this program or any portion of it may result in severe civil and criminal penalties and will be prosecuted 36 to the maximum extent possible under the law cii Licensed to Steve Provol of Competitive Energy Insight Inc Your License Expires on 02 10 2004 Ec
19. x Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs User Defined Additional Annual Revenues or Savings 4 User Defined Additional Annual Revenues or Savings 5 User Defined Additional Annual Revenues or Savings 6 f User Defined Additional Expenses 1 6 Annual Inputs Six User Defined Categories are provided allowing you to model any other expense streams associated with the project You may define the names of these categories and the names will be shown on the reports throughout the model You may also run individual sensitivities on each of these categories cliolco ic o colo These entries are in addition to any other expenses calculated based on inputs to Table 1 or Table 1C including Fuel Fixed O amp M and Variable O amp M Entries in this section do not override any entries included in Table 1 but rather are provided so that additional expenses can be included in any year of the project User Defined Expenses should be entered in current yr These costs will not be escalated Figure 66 Annual Inputs User Defined Additional Expenses 1 2 and 3 User Defined Expenses Fixed or Variable yr User Defined Additional Annual Expenses 1 Use
20. 03 Page 58 EconExpert DG Users Manual Copyright 2001 2005 1 License The License Sheet provides the Software License Agreement EconExpert DG 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 Prior to using the model the first time to enable the model the user must click the button labeled I Have Read and Accept to the Terms of the EconExpert DG License located at the end of the License Agreement Figure 31 EconExpert License Agreement Ed Microsoft Excel EconExpert DG Proforma 3 0 1476 xls 1 a x File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL ax OSHSER SRY BB So Br Hi Maes Oar ERA SWISS 18 A s B z a m Wi i woe tE SS PRM A Ar TopofLicense v fe IMPORTANT PLEASE READ THE TERMS OF YOUR SOFTWARE LICENSE o a a S A E E ER PLEASE READ THE TERMS OF YOUR SOFTWARE LICENSE 3 4 Today s Date February 19 2003 5 License Period February 10 2003 Until February 10 2004 EconExpert DG Financial Model by Print License EA Print License See Bottom of Sheet to Accept See Bottom of Sheet to Accept 6 SOFTWARE LICENSE AGREEMENT Read Carefully Before Using This Software Before the installation of this softwar
21. 100 financing If the Operating Lease Switch is NOT selected EconExpert will assume a Debt Equity or Capital Lease structure Please Consult your Tax Advisor to confirm this information Revised 7 14 03 Page 108 EconExpert DG Users Manual Copyright 2001 2005 If special financing terms are required such as variable interest rates or accelerated principal payments those amounts can be entered as annual inputs and will override the amounts entered here where they apply 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 Schedule Permanent Debt OR Capital Lease Financing Primary Debt and Subordinated Debt The user can specify the mortgage type loan parameters including the o Term of the loan o Fixed interest rate o Annual Financing Fees For the purposes of calculating debt coverage ratios the coverage ratio for Primary Debt is calculated assuming funds available to cover debt including all expenses and Subordinated Debt Costs Please note that if the Operating Lease option is selected the Permanent Debt or Capital Lease Financing section of this table will be grayed out and will be inactive in the model Figure 54 Table 1 Project Global Inputs Financing Terms Construction Financing
22. 938 1 958 a 98 0 Year 2 Total Displaced Electric Use 13 597 16 255 16 343 z 98 0 Year 3 Displaced Gas Use 1000 Therms 285 382 386 29 Investment Costs ikw Breakdown of Soft Costs ikw 30 Phase 1 Development Expenses 50 000 25 Startup Costs and Fixed O amp M 1 500 1 31 Phase 2 Engineering Construction Preoperation Expenses 4 805 000 2 403 Working Capital and months of fuel 160 646 80 Soft Costs 199 239 100 Debt Reserve and Mos of Payments 32 093 16 EJ Interest During Construction amp Loan Fees 149524 75 a Total 5 203 762 2 602 Sub Total Soft Costs 194 239 97 3 Electric Prices 2002 centskwh 2005 2006 2007 Price for Gas Purchases Therm 2005 2006 2007 Q1 Jan Mar 3 05 3 06 3 08 1 Jan Mar 0 50 0 50 0 50 3 Q2 Apr Jun 4 06 418 4 31 Q2 Apr Jun 0 50 0 50 0 50 39 Q3 Jul Sep 3 05 314 3 23 Q3 Jul Sep 0 50 0 50 0 50 a Q4 Oct Dec 4 06 418 4 31 Q4 Oct Dec 0 50 0 50 0 50 Annual Average 3 94 3 94 4 06 Annual Average 0 50 0 50 0 50 X gt m license Z Title Status Sensitivities _ Project Summary Monthly Data Simplified Inputs Table 1 Project Global Inputs Table 1C Project Annual Inpu 4 a The user is free to modify and customize this summary To do so select UTILITIES Range Protection of Graphs and Project Summary Sheets You may then modify the sheet change entries add or delete rows etc tyin
23. Active Monthly Data Sheet are overwritten EXCHANGE a copy of the Active Monthly Data Sheet with the copy that has been previously saved in the Monthly Data Holding Bin This option allows you to flip the copies of input tables that have been previously saved with the active Monthly Data Sheet When you EXCHANGE the contents with a Holding Bin the current contents of the Active Monthly Data Sheet are saved in the Holding Bin and the current contents of the Holding Bin are written to the Active Monthly Data Sheet Neither is lost Revised 7 14 03 Page 41 EconExpert DG Users Manual Copyright 2001 2005 For the Simplified Data Sheet SAVE a copy of the active Simplified Inputs Sheet to the Simplified Inputs Holding Bin This option allows you to save a copy Simplified Inputs Table and then to make modifications to the respective inputs When you SAVE the contents to the Holding Bin the current contents of the Holding Bin are overwritten RESTORE the saved copy of the Simplified Inputs Sheet that has been previously saved This option allows you to recover the copy of the Simplified Inputs Table that has been previously saved When you RESTORE the contents from the Holding Bin the current contents of the Active Simplified Inputs Sheet are overwritten EXCHANGE a copy of the Active Simplified Inputs Sheet with the copy that has been previously saved in the Simplified Inputs Holding Bin This option allows you to flip the copies of input
24. Annual Inputs Steam or Hot Water Sales Interest Income from Debt Reserves Other sources of revenue associated with recovery of reserves and disposition of the land and asset at the end of the debt term or the end of the project life Revised 7 14 03 Page 81 EconExpert DG Users Manual Copyright 2001 2005 15 Table 7 Cash Flow 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 deprecation and taxes are provided to be used in the calculations of Internal Rate of Return IRR Net Present Value NPV and Payback provided in Table 8 16 Table 8 Returns Table 8 provides calculation of the before tax and after tax Internal Rate of Return IRR Net Present Value NPV and Payback using results from Table 7 The IRR Internal Rate of Return over 20 years represents the after tax return on the Owner s investment The NPV Net Present Value is calculated to the year of Financial Closing 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 NP
25. Annual Inputs Sheet Revised 7 14 03 Page 137 EconExpert DG Users Manual Copyright 2001 2005 c Chiller Electric Energy Use 1000 kwh period Monthly Data This is the Electric Chiller energy consumption in 1000 kwh month at the location WITHOUT DG The values entered here will be used to estimate savings associated with the displacement of electric energy purchases from the utility by self generation In Tri Generation power for the Chillers will be displaced by the use of waste heat used to drive Absorption Chillers in place of the original Electrically Driven Chillers The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet d Site Displaceable Use of Gas or Other Fuel 1000 Therms Period Monthly Data These are the monthly amounts of thermal use supplied by natural gas or other fuel consumed at the site in 1000 Therms Month The values entered in each quarter will be used to calculate the heat consumption at the site in Therms period and the amount of waste heat that can be displaced by the CHP Facility The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet Historical Data entered in the mm in the Monthly Data Sheet can be transferred into the corresponding cells in the Global Inputs Sh
26. Chiller Performance Other Revenues DG Plant Operations and Maintenance Costs Debt Services or Capital Lease Terms Property Taxes Insurance and Income Taxes After tax Dividends Examples of how you can use Annual Inputs to Table 1C to perform custom calculations include e Using User Defined Additional Annual Revenue Sources and User Defined Additional Annual Expenses to model special contracts or agreements o Power Purchase Agreements o Fuel Supply Agreements o Energy or Steam Sales Agreements o O amp M Contracts e To model the impacts of Forced Outages of the DG Plant on loss of revenues and added demand charges e To model changes for forward electricity or gas prices or markets e To model predicted changes in the performance of the DG Plant e To model customized debt o Variable interest rates o Accelerated or deferred principal payments Sweeps tied to the Debt Service Coverage Ratio DSCR o Interest only payments o Lump sum principal repayments Step changes or single year events Revised 7 14 03 Page 119 EconExpert DG Users Manual Copyright 2001 2005 e To customize income tax depreciation schedules e Virtually any other way that you desire allowing you to customize EconExpert for any set of circumstances Note that you can also enter formulas into annual input cells These formulas can be linked to other parts of EconExpert DG to sheets that you insert into the model and to sections at the bottom of each
27. Chiller Performance Click 2 Forms JE Form 5 Electric Tariff Data Before amp After DG 2 Forms Form6 Thermal Energy Yalue amp DG Fuel Prices click Form Sources of Other Revenue cick Forms Yariable and Fixed O amp M Costs Property Taxes and Insurance Form9 Capital Investment Costs cick Form 10 Soft Costs amp Terminal Yalue Click Form 11 Debt Equity Ratios amp Sources of Capital Form 12 Permanent Financing E Formi3 Operating Leases click Form 14 Construction Financing click Form 15 Tax and Book Depreciation Rates i Form 16 Income Tax Rates Tax Credits and Capital Gains _ Revised 7 14 03 Page 38 EconExpert DG Users Manual Copyright 2001 2005 b Show Pop Up NPV IRR and Payback Summaries The Pop Up Summary is a convenient summary review of the after tax NPV IRR and Payback that you can access from the UTLITIES menu from any location in the model The corresponding results are calculated in Table 8 Results and are also presented at the top of the Global Inputs To close the Pop Up summary simply click on the X box on the top right of the Pop Up form Figure 25 Pop Up NPV IRR and Payback Summary Pop Up Summary of Project Metrics acl nary Debt Financing Selected Term yrs 5 10 15 IRR After Tax 2 66 14 83 19 07 NPV After Tax 6 0 Disc Rate to Financial Close Date 2006 199 298 425 772 1 013 051 Payback On Equity On Total Investme
28. Company The Operating Lease Payment will be treated as an operating expense At the end of the Lease a Purchase option will be provided at the Residual Fair Market value After purchase by the owner the asset will be depreciated on the owner s books using straight line depreciation over the remaining asset life The following four criteria must be satisfied for a lease to qualify as an Operating Lease The lease does NOT transfer ownership to the Leasee at the end of the term The lease does NOT contain a Bargain Purchase option The lease term is NOT equal to or longer than 75 of the economic life of the asset The present value of the lease payments does NOT equal or exceed 90 of the fair value of the leased property If any of these criteria are not satisfied the lease is a Capital Lease and so must remain on the books of the customer Please consult your Tax Advisor to confirm this information Plant Capacity Factor The Plant Capacity Factor is the of potential annual generation that is produced over the year accounting for plant dispatch and plant availability So a capacity factor of 80 means that the net annual kwh sold from the facility is 80 of the plant s generating capacity times 8760 hours year Table 1 allows you to input individual capacity factors during the life of the project Alternatively annual capacity factors can be specified for any year during the project life in Table 1C Revised 7 14 03 Page 18
29. Costs Debt Services or Capital Lease Terms Property Taxes Insurance and Income Taxes Examples of how you can use Annual Inputs to Table 1C to perform custom calculations include e Using any of six User Defined Additional Annual Revenue Sources and six User Defined Additional Annual Expenses categories to model special contracts or agreements o Power Purchase Fuel Supply and Maintenance Agreements o Energy or Steam Sales Agreements Revised 7 14 03 Page 73 EconExpert DG Users Manual Copyright 2001 2005 o O amp M Contracts e Step changes or single year events such as plant expansions e To model the impacts of Forced Outages of the DG Plant on loss of revenues and added demand charges e To model changes for forward electricity or gas Tariffs e To model predicted changes in the performance of the DG Plant e To model 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 on Debt o Lump sum principal repayments e To model foreign tax rates e To customize income tax depreciation schedules e Virtually any other way that you desire allowing you to customize EconExpert for any set of circumstances Note that you can also enter formulas into annual input cells These formulas can be linked to other parts of EconExpert DG to tables in the yellow Free Form sections of the model or to sheets that you insert into th
30. Demand Data to the Annual Inputs Sheet from the EconExpert DG Command Menu Revised 7 14 03 Page 146 EconExpert DG Users Manual Copyright 2001 2005 Please note the following points when you use this feature e All data is escalated Base Year entered in the Global Inputs Sheet e The project schedule is based on data entered in the Global Inputs Sheet The Time of Use Wizard will automatically adjust for a partial year of operation e Data can be copied and pasted from other sources The pasted data should be pasted as values or formulas from the source data file or can be linked using formulas e Data will be aggregated to quarterly format and can be automatically referenced in the Annual Inputs Sheet a Pre Loaded Default Tariff SCE TOU 8 and GS 2 Option A The EconExpert DG Time of Use Wizard comes preloaded with example tariffs based on the SCE TOU 8 and GS 2 Option A Tariffs required by Southern California Edison These tariffs became effective on and were last updated by CEI on the date specified in the Description Inputs examples and descriptions provided by CEI in the Model and in the User s Manual are provided for example purposes only CEI makes no representations or warranties with respect to the accuracy of such inputs examples or descriptions If you use these SCE example tariffs in an actual analysis that you are performing please confirm that the tariffs provided are the applicable current tariff for your sit
31. EEOSE ORES i 17 Figure 5 Enter Company Name for New License seeeseeeeesesresrisressesresstsrisstsstesrsststtsseentestentestessesriesessesresees 17 Getting Started Figure 6 EconExpert DG Greeting Screen siei enese esien eaa EE erT SEE aaea VEEE EI EES R 17 Figure 7 Microsoft Excel Enable Macros Screen oo cescescesecsseceseceseesseesseeeeceesseeesaecaaecsaecsaecssesseesseeseaeeeaeeeaaeenaes 20 Figure 8 EconExpert DG Successful Installation Notice ccc ceeceeeceseeeeeeseeeseeeseeceecsaeceaecnaecnseesseceseseneeeaaeenaes 21 Figure 9 EconExpert DG Copyright Notice Screen oo eee eeseescsseceseeeseeeeeeseneeeseeeseecaaecsaecsaecsecsaeesseeeneeeseeeeneesaes 21 Figure 10 Notice on Sharing EconExpert DG occ eeeescceseceseceseceseeeseeeseeseneeeaeecseecaaecsaecsaecsaeceaeseeeseaeeeaeeseaeeeaes 22 Figure 11 How to Obtain the User s Manual eee eesceseceseceseceseceseceseesseecsaecsaecsaecesecsseceseeseeseeecsseeeseeseeeeeneeeaes 23 Figure 12 Notice Regarding the EconExpert DG License Agreement ee eeeeseeseecnseceseceseceseceseceseeeseeeeeeenaes 23 Figure 13 The EconExpert DG License Agreement Sheet cece eeeeseceeeeeeeseeeeecaecaeceaeceaecssecsseeeseeeseeseneeeaes 24 Figure 14 Acknowledging or Declining the EconExpert DG Software License eee eesceseceseceseceeeeeeeeeeeeeeaee 25 Figure 15 License Accepted Notification Save to New Filename ceeceeceeesesseeeeeeeseeeseceseceseceseeeseeese
32. EconExpert DG a fai EconEspert DG Al Microsoft Visual EETAS RH 11 46 PM Revised 7 14 03 Page 69 EconExpert DG Users Manual Copyright 2001 2005 The Macro Button on the top of this sheet will allow you to Refresh the EconExpert Command Menu If you Refresh the menu the labels you assign to all User Defined Inputs will be updated on the menu Inputs to Table 1 are organized into categories of inputs that can be located using the NAVIGATE Menu or by scrolling through the Table Table 1 is Range Protected allowing you to enter data ONLY into specified Blue or G P H shaded input cells The blue shaded cells represent data that is typically represented by historical information on the customer s site before installation of the DG project This input data can include historical information such as the customer s site s historical gas or electric usage tariff data electrical chiller operation etc If monthly bills are available from the customer that data can be entered into the Monthly Data sheet and then automatically aggregated and populated into the quarterly format in the Global Inputs Sheet in these blue Shaded cells The green shaded cells represent data that is typically associated with the new CHP facility This input data includes parameters such as DG plant performance fuel pricing operating and maintenance costs financing and tax structure The Input Categories in Table 1 are included in three columns separate
33. Eo A Taaa neues 125 Figure 65 User Defined Additional Revenue Sources 1 2 and 3 ssssessesssssssssssssssssssssssssesssesssesssesssesssesssesseese 131 Figure 66 User Defined Additional Expenses 1 2 and 3 ce ceecesceseceeeceseceseeeseecaaecaaecsaecesecnaeeeseeeseeeseeenaeenes 131 Figure 67 Debt Service or Capital Lease Custom Principal Payments or Interest Rates eee eeeeceneeeeeeees 132 Monthly Data Figure 68 The Monthly Data Tableware te r neninn a ois Ha a Sines tania iced eiaen oe a a aah edie cs 135 Time of Use Wizard Fis r e 609 Lesende setcr ana wives Senta hese abate eet eal a eins acer onan a 146 Figure 70 TW1 Site Energy Consumption and TOU Prices WITHOUT DG 0 eneeneensecesecnseenseeees 148 Figure 71 TW1A TW1B and TWIC Projected Site Displaceable Chiller and Non Chiller Consumption C Hosts Appetite J insara een aA sade tata sentabevees dash eed tam aa e Eaa Ea E EE a e iei 150 Figure 72 TW1D Aggregated Cost of Electric Energy Purchased fm Utility c kwh WITHOUT DG 151 Figure 73 TW2 Time of Use Energy Price Wizard WITH DG Operational eee ee eeeeeeeeeneeceseceseceseeeseeees 152 Figure 74 TW2A PROJECTED DG Plant Capacity Factor cece ceeccescseeeeseeeseeeeeeeeseeeseeesaecaaecaecaecseeeseeeens 154 Figure 75 TW2B Projected Displaced Electric Chiller Consumption 1000 kwh period eee eeeeseeeeeeees 155 Revised 7 14 03 Page 9 EconExpert DG Users Manual Copyri
34. Financing Fees Up Front Financing fees are charged at the end of the construction term towards the cost of permanent financing They are capitalized with the project investment cost The user may enter the amount of the fees or have EconExpert estimate them as a percentage of the approximate amount borrowed Revised 7 14 03 Page 106 EconExpert DG Users Manual Copyright 2001 2005 Figure 52 Table 1 Project Global Inputs Engineering and Construction Phase Costs Phase 2 Engineering Construction Preoperation Expenses Not Escalated Land Not Depreciated 5 000 Engineering Procurement and Construction EPC 6 000 000 Regional Energy Office Incentive Rebate 1 200 000 Sub Total Capital Costs without Contingency 4 805 000 Amount _ Factor Contingency Amount of above Sub Total Phase 2 Capital Costs 4 805 000 2 669 Sub Total Phases 1 and 2 Development and Capital Costs 4 855 000 Soft Costs Amount Startup Costs and Fixed O amp M Working Capital and months of fuel 10 000 Debt Reserve and Mos of Payments Spare Parts and Fixed O amp M T Up Front Financing Fees or of Debt PSS es Sub Total Soft Costs 163 822 Total Investment Expense Before Interest 5 018 822 Revised 7 14 03 Page 107 EconExpert DG Users Manual Copyright 2001 2005 Plant Salvage Value at the End of the Project Life Gl
35. Financing and Permanent Debt Gas or Other Fuel Prices Site Uses Other than DG Plant Fuel Price S Therm _ 0 500_ OG Plant Fuel Price S Therm 0 400 Variable O amp M Costs svr ta CF Water and Other Variable Costs Se Fixed O amp M Costs State Income Tax Rate Project Labor and Other Fixed Costs 1 000 State Income Tax Rate Revised 7 14 03 Page 68 EconExpert DG Users Manual Copyright 2001 2005 8 Table 1 Project Global Inputs Table 1 is the PRIMARY input sheet to the model and its use is mandatory 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 Examples of Global Inputs include the Plant Capacity and Fuel Use if those values do not change over life of the project and the cost of energy fuel or fixed O amp M which can each be entered as constant dollar values with respective real escalation components to be applied over the life of the project Once the Global Inputs Sheet is set up or automatically populated from the Simple Inputs Sheet the user can refine the model by selectively refining any input parameter in the Annual Input Sheet A screen shot of the top section of the Global Inputs Table is provided below Figure 39 Screen Shot of Table 1 Global Inputs H File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTIL
36. For Acquisitions enter 0 24 months Max Interest Rate Earned on Escrowed Funds Project Life Years 20 Max i Financial Closing Date Equity During Construction 0 Start of Operation i Retirement Date Annual Inputs Quarterly Average Peak Site Electric Energy Demand kw 1897 Site Displaceable Electric Consumption 1000 kwhtperiod Excluding Chillers Site Displaceable Use of Gas or Other Fuel 1000 ThermsPeriod Net DG Plant Electric Generating Capacity kw Heat from MG Auailahle Far Man Chiller They M 4 gt gt Table 1 Project Global Inputs Table 1C Project Annual Inputs ELET FE Table 3 Construction Table 4 Operating Costs hk a Ready NUM Inputs to Table 1 are organized into categories of inputs that can be located using the NAVIGATE Menu or by scrolling through the Table Table 1 is Range Protected allowing you to enter data ONLY into specified shaded input cells Table 1 is organized into three columns that are separated by a bold red vertical line The Input Categories in Table 1 are Column 1 Switches to Control Program Options Economic Factors Equity and Debt Percentages Project Schedule Quarterly Performance and Pricing Data including o Site Electric and Gas Demand o DG Plant Performance o Absorption Chiller Performance o Electric Energy Prices Savings Revenues Due to DG o Thermal Energy Prices Other Revenues Variable and Fixed Operations and Maint
37. Inputs Sheet The inputs should reflect the amount of chiller electric energy load that can be offset from available waste heat and so might be limited by the available amount of waste heat from the Tri Generation Plant This is the maximum quarterly demand for the chillers in kw which is be displaced by waste heat from the DG Unit i e if absorption chillers replace or offset electrically driven chillers Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear The values entered in each quarter will be used to calculate the amount of electric energy demand for chillers that can be displaced by use of waste heat from the CHP Facility The coincident demand is the demand that occurs at the same time as the Maximum site demand and so represents that amount of electric chiller Maximum demand that can be displaced by absorption chillers Projected aggregated data entered in the Monthly Sheet can be transferred into this sheet by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu xi Displaced Electric Chiller Electric Consumption 1000 kwh period Annual Inputs These inputs are applied ONLY if the Tri Generation Switch is selected The inputs should reflect the amount of chiller electric energy use that can be offset from available waste heat used in absorption chillers and so might be limited by the a
38. PRINT E A castaces cbt es eave A E tenes esta Gade sess San A A E 31 3 SENS V IMTS a besstestcedesarecta aaa a levewh cloths catdsteateccestacade east atsesssassuan tones S 33 4 TORNDADO DIAGRAM S oaee E Eea EE E EAE N EEE OESR EE EEEN aoet 35 5 UTILITIES neet eee e Eeo oe EN E aE eee Py PT Ser E a eS E E 38 6 EconExpert DG On Line HELP 42 24 fses stastesaceeues ee eye Ea Eee EE eat E EA E enea pia eeth 53 C Worksheet Tabsasarcni ea ENE E EE E abi A EEEE E E ERA 55 1 Ei E PEE E AEEA EPEE EEI EE ET EEA EE E A APDE E ET ENE A E T 59 2 B00 Cre ene nr te Re Pe en a eee ee aaa 60 3 E T PIENE AEE EE EE E E E OEE E E EE E AEE N AE E EE 60 4 DCNSILIVILICS 3h Seat eae AA T RN 62 5 Project SUMMATY orirun hooien leek dane tells len eth apes decent a a a E a e eee N 63 6 Monthly Data eeror cree aa rn oaea Aaa Sei eae ieee a eel ei Reta er nee 64 7 Sip libied Am Puts ews veses fee tes eae saree E eee hades Bava eee tees pees iade dive Se aerated in tae 66 8 Table TProject GloBalnputs s 2 200 4 ceca ridstesecg datdvasl castes kg avceurtduneaed eaa ane a a i aee eaten tected 69 9 Table lC Annival Inputs s e ee tices doeet a eee eset Lae teceted anette og De eet ee een tet 72 10 Table 2 Summary 1 30 iwi ev eet ocala ited lene en 76 11 Tabl 3 Construct on esesis asad seccessstess seas acess Sec Ra wee es hess Nees Bes RRs URE A Rs T11 12 Tables 4 Operating CoStSec ie piese i enas faded are a aaee e aa a cath hes aaaea
39. Pricing and Plant Performance data The Figure below provides a screen shot of the Monthly Data Table Figure 36 The Monthly Data Table FI Microsoft Excel EconExpert DG Proforma 4 0 1577_xls 1 Ba laj xj H File Edit view Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL erle x DE A kisl amp A ail b amp X g M Cr R gt a AI al it D 40 e a Tm F ae Val Conditional Formatting q F ia y megne a Zoom a _ Arial 16 A a Blz u m m ll El Be E E E pE slele O a DataConversi amp Example Data Conversion Inputs a g ae a ee ee ee r g 4 o J K Fa EconEzpert DG 4 0 1575 Copyright 2001 2002 2003 Competitive Energy Insight Inc All Rights Reserved Historical Data Projected Future Cost and Performance Inputs WITH DG WITHOUT DG rd 8 3 10 2003 2010 2011 2012 2013 2 242 2 285 2 307 2 329 2 351 2 374 2 397 pee April A T asooo As Januar Annual Total 7 460 7 475 7 490 7 505 7 520 7 535 7 550 7 565 7 580 7 595 7 Tri Generation Selected See Februar of so m of mof m mm March 20 120 120 wif zif naa ta 122 122 122 pil Ss tzof 120 120 gt Mi Status Sensitivities Project Summary Monthly Data Simplified Inputs Table 1 Project Global Inputs Table 1C Project Annu
40. 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 real ALL of the applicable license terms A copy of the EconExpert DG Software License is also included in the Appendix to the User s Manual Step 5 At the conclusion of the Software License you will be provided with the option to ACCEPT or DECLINE the EconExpert DG 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 Revised 7 14 03 Page 24 EconExpert DG Users Manual Copyright 2001 2005 File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL amp x A a ear a ee ee E 2 1 IMPORTANT PLEASE READ THE TERMS OF YOUR SOFTWARE LICENSE 3 Fe 4 Today s Date July 9 2003 5 License Period June 17 2003 Until February 10 2004 F EconExpert DG Financial Model by z Print License Bae Stes Eee ae Print License See Bottom of Sheet to Accept See Bottom of Sheet to Accept 6 SOFTWARE LICENSE AGREEMENT 27 28 29 30 32 53 J Astar de c pA M EconExpert DG Microsoft Visual EconE xpert EconExpert DG A CENTELLES 10 30 PM 14 Survival In the event of termination or expiration of this Agreement the obligations of Sections 3 Term
41. Table is Updated to the Current Case Capital Investment Cost Sensitivity Excludes Soft Costs and IDC 4 855 000 4 126 750 43800 4612 250 4 855 000 5 097 750 5 340 500 5 583 250 Cap Cost Variation Example Global Inputs 5 0 15 0 10 0 5 0 0 0 5 0 10 0 15 0 Capital Cost kw Cogen Net 2 428 3 S 218 2306 2 428 2549 2670 2 792 Delta Capital as a of the Capital Cost KS 28 250 485 500 242 750 242 750 485 500 728 250 Capital Cost Sensitivity Increment 5 0 3 Times Increment Capital Investment and Related Costs of Base Case Investment 85 0 90 0 95 0 100 0 105 0 110 0 115 0 Capital Investment Excluding Soft Costs and IDC 4 855 000 4 126 750 4 369 500 4 612 250 4 855 000 5 097 750 5 340 500 5 583 250 Capital Investment Excluding Soft Costs and IDC kw 2 428 2063 2185 2 306 2 428 2549 2670 2 792 RR NPVs i IRR After Tax 10 Years 31 7 3 6 31 7 NPV After Tax 10 Years at 6 0 Discount Rate 4 222 087 _ 4 S 4 222 087 Payback After Taxes in years 2 74 2 74 Change in IRR After Tax 10 Years 6 2 4 0 1 9 0 0 1 8 3 4 Changein NPV After Tax 10 Years at 6 0 Discount Rate 438 084 293 206 147 147 147 147 294 294 Change in Payback After Taxes in years 0 41 0 28 0 14 0 13 After executing a Sensitivity Analysis the user will be taken to the resulting graph that illustrates how the Project
42. The corresponding input to Table 1 will also be reformatted to Bold Red and a red warning labeled Annual Inputs will appear next to the input in Table 1 advising you that an Annual Input value has been entered and that the corresponding Global Input will been overridden The Status Sheet will also provide a notice that this has occurred A feature is provided on the EconExpert DG UTILITIES Menu that allows you to clear and reset the Annual Input Table to all Os 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 Reset Annual Inputs to 0 s Note that if you do this the current Annual Inputs will be lost You will be provided with a warning If desired you can save the Annual Inputs to the Holding Bin before Resetting them This can be initiated from this same menu option Revised 7 14 03 Page 120 EconExpert DG Users Manual Copyright 2001 2005 The individual Annual Inputs are discussed in more detail starting on page 118 Examples provided in the Appendix also give examples on how to use the various Global Inputs A variety of Help Comments also appear with each input in Table 1 PLEASE NOTE Cost entries are input 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
43. This input is the displaced monthly period demand charges in kw mo under the tariff that applies WITH DG Operational and represents the money that will be saved when the DG Facility is brought on line Revised 7 14 03 Page 141 viii ix EconExpert DG Users Manual Copyright 2001 2005 If the DG Facility does not operate reliably the savings in demand charges may be reduced or eliminated and a demand ratchet may apply in the succeeding period The calculation of savings associated with reassessment of demand charges is based on the following o If Standby Charges are assessed there will be no reassessment of demand charges or demand charge savings o If there are no Standby Charges the Demand Charges or resulting savings in each quarter will be assessed when the outage penalty is specified o If the facility experiences an unplanned outage during the year the basis for demand charges in the quarter will be the maximum demand in the current quarter i e there may be no demand charge credit The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet Demand Ratchet Monthly Data The Demand Ratchet is a special condition used in some tariff or utility rate schedules which requires the customer to pay a premium on each bill during a specified period typically related to peak demand or usage during a previous bill
44. Use Wizard Sheets Transfer Simplified Input Data to Global Inputs Sheet from the EconExpert Command Menu Note that ALL of the inputs listed here will be transferred to the Global Inputs Sheet treated as average annual values overwriting the corresponding quarterly values that are currently in Table 1 Project Global Inputs You will be provided with the option to save the Global Inputs Sheet before the data is overwritten EconExpert will allow you to use default values for other assumptions for remaining inputs or to use assumptions that have been previously populated into the Global Inputs Sheet by you or others in your organization Please note that this data input sheet WILL NOT be used in the proforma unless you select the option to Populate the Global Inputs Sheet using the Transfer Data option described above If you select the option to use the default EconExpert values in Table 1 Project Global Inputs the following will be assumed When you use the Simplified Inputs Sheet annual costs amp savings are allocated quarterly The user then has the option to use EconExpert s Default Assumptions for remaining inputs or to substitute their own assumptions Revised 7 14 03 Page 115 EconExpert DG Users Manual Copyright 2001 2005 Figure 60 EconExpert DG s Default Assumptions Associated with the Simplified Inputs Sheet One Tranche of Debt The utility tariff will not change when DG is added No Tax Loss Carry Forward
45. a result of DG Revised 7 14 03 Page 75 EconExpert DG Users Manual Copyright 2001 2005 10 Table 2 Summary Table 2 provides consolidated summaries of the results generated in Tables 3 11 Two summaries are provided in Table 2 o Top Section Basic Summary Annual before and after tax IRRs NPVs and Payback Return on Equity Debt Coverage Ratios Other Revenues o Bottom Section Expanded Summary Commodity Sales MWH 1000 lb hr Cash Flow Summary Consolidated Cash Flow Statement including Revenues Summary Expenses Summary Debt Service Summary Depreciation Income Taxes Net Cash Flow After tax Revised 7 14 03 Page 76 EconExpert DG Users Manual Copyright 2001 2005 11 Table 3 Construction Table 3 provides calculations of monthly and cumulative monthly construction expenditures based on a standard S Curve Drawdown schedule 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 DG you may input your own custom Capital Cost Drawdown schedule by entering the percentage of Capital Costs that are expended monthly during the Construction Phase It is important to note that non zero entries to this schedule will override the Default values in the months that they
46. and Chiller electric energy use in each Rate Block from TW1 Above e Total Electric Energy Use WITH DG Operational This is the difference between the Host s Appetite for Electric Energy and the Benefits of Self Generation and Absorption Chillers yielding the net electric energy use WITH DG Operational in 1000 kwh e Aggregated Energy Price in Each Period c kwh Based on the Applicable Tariff the user may enter the Time of Use Energy Prices during each period WITHT DG Operational The model will then weight average the pricing and corresponding consumption rates to produce weight averaged or aggregated monthly quarterly and annual energy prices Figure 74 TW2A PROJECTED DG Plant Capacity Factor TW2A Conversion of Time of Use Energy Prices to Monthly and Annual Data Sheet Formats WITH DG Start of DG Projected DG Plant Capacity Operations Base Year 11 01 03 Table TW2A provides the calculation of the DG Plant s capacity factor based on the number of hours that the facility is operated during each period entered in Table TW2 described above Revised 7 14 03 Page 154 EconExpert DG Users Manual Copyright 2001 2005 The user may enter annual increases in the capacity factor to project rates in future years either increasing or decreasing The increases are additive If different rates of increases are anticipated in different quarters of the year th
47. and Disclaimer ce ccesceseceseceseceseeeseeeeneeeaecsaeceaecsaecsaeceseeeseesseeseeeseaeesaeeeaeeeaaeenaes 192 2 Defining Partners teoriee aeoea niea bithaves saceseobsledacaetade deal bhaawogh bale destatsbieestbuseesialetielulseaeed 192 3 Partnership Financial Statement 00 ce eeceseceseceseceeeeseeesseeeseesseecsaecsaecsaecsecsseesseesseeseeseeeseneesaeeeaeeenaeeaaes 194 4 ATIGCATIONS E E baceves ESE E EE E E E E das adeueewsadeeas dae ES 195 5 Cash Distributions OPtONS eeeeneoceern ezsdavease aren iar ee ate a i e a E i a aeS yieee er 196 6 Cask DiStt bution Basis ouran e ENEE IEO REES EEA OA EN O 198 7 Gtlaranteed Pay Ments sci 2ccdsecs schdibes sachtss aachs slacacdetgseaves hesaudbbos eaubevtecateessucccal besdacdt sal ecetesbacecstanaceesssnrebneseaces 198 8 GIOSS aly e ee here ieee cls tetas ae tate A cee ete d Aata E OEE R ions oA ua cals hae 199 Revised 7 14 03 Page 7 EconExpert DG Users Manual Copyright 2001 2005 List of Figures How to Obtain a License Figure 1 How to Obtain an Authorized Subscription to EconExpert DG 0 eee ee eeeeeeeseceseceeceeceeeeseeeseeeeneeeaes 16 Figure 2 License Authorization Screen Yes NO ccccescssecssecsseceseceseesseeeeeeeeseeeaeeesaecaaecsaecsaecaeceseseeeseaeeeaeeeaaeenaes 16 Figur e 3 Extension Code Serenan anaenda aT nace A glenda sottvs sanders louddeede glenda soutee nies 16 Figure 4 Enter User Name for New Licenses isei eo eean ara aE a Ea e
48. 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 89 Example of Free Form at the Bottom of Each Sheet Where You Can Perform 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 Reformat Cells option on the EconExpert DG Command Menu which allows you to select various number or formats e 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 To take best advantage of customization link your custom formulas to Annual Inputs in Table 1C 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 Revised 7 14 03 Page 176 EconExpert DG Users Manual Copyright 2001 2005 Appendices 1 EconExpert DG Software License Agreement EconExpert DG 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 pressing the ACCEPT button at the end of the A
49. by a switch simply click on the associated check box Discussions of the purposes of each Switch are provided in respective comment statements in the Global Inputs Sheet e Select Tri Generation or Cogeneration e Select Operating Lease or Conventional Debt Equity Capital Lease Financing e Select to Carry Forward Tax Losses or to write off losses in the current year even if the project is not profitable Tax Loss Carry Forward Consult you Tax Advisor to confirm this information and how it applies to your situation EconExpert DG allows you to capture tax losses in the current year or to carry them forward to be applied against future project earnings Sometimes reported tax losses may be larger than the amount of net taxable income realized by the owner This situation can commonly occur if the Production or Investment Tax Credits are applied as the resulting accelerated depreciation can result in a very large tax write off in the first year of operations If the tax write offs in any year of the project are greater than the applicable taxable income then the IRS will require those losses to be carried forward However if the losses at the project level can be applied to other earnings realized by the owner or Leasor profits from other parts of the owner s income those write offs can be realized in the year that they occur independent of the fact that the project on a stand alone basis was not profitable If the Tax Carry Forward
50. data All other inputs are set to 0 Other key assumptions when you utilize the Simplified Input Sheet include O O O The debt term or lease term are equal to the project life The depreciation life is the MACRS class that is less than and closest to the project life Annual usage rates costs amp savings are prorated quarterly Please note that this data input sheet WILL NOT be used in the proforma unless you select the option to Populate the Global Inputs Sheet using the Transfer Data option described above The Figure below provides a screen shot of the Simplified Inputs Sheet This sheet provides all of the inputs on a single screen that can be used to run the model at the most simplified level Each individual input is described in the comment statements identified by the red triangles in each cell Revised 7 14 03 Page 67 EconExpert DG Users Manual Copyright 2001 2005 Figure 38 The Simplified Inputs Sheet roforma CE Commerial Proforma Distributed Generation EconExpert DG Proforma V5 0 1654 xIs Simplified Inputs Proforma NOTES Inputs examples and descriptions provided by CEI in the Model are provided for example purposes only CEI DGeration Selected makes no representations or warranties with respect to the accuracy of such inputs examples or 4 gt descriptions Debt Equity Financing or Capital Lease Selected in Table 1 Global Inputs Economic Factors Base Year Constant Dollar in Mid Year Tri
51. 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 Revised 7 14 03 Page 177 EconExpert DG Users Manual Copyright 2001 2005 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 MERCHANTABILITY FITNESS FOR A PARTICULAR PURPOSE OR THAT THE MODEL OR THE RESULTS THEREFROM SHALL BE ERROR FREE 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 Model which will be provided via phone or e mail Technical assistance beyond this 30 day period or any on site technical assistance shall be provided at the discretion of CEI and shall be billed to client at CEI s then current consulting rates for technical assistance Installation of the Model The electronic software provided by CEI under this Agreement will be subject to a limit
52. demand charge savings o If there are no Standby Charges the Demand Charges or resulting savings in each year will be assessed on the current quarter o If the facility experiences an unplanned outage during the year the basis for demand charges in that quarter will be the new demand basis for that quarter This rate is usually the demand charge WITHOUT DG but if there is a change in the tariff it is the resulting value of the demand that is displaced If the Demand Charges are not constant or do not escalate at a constant rate over the life of the project annual Demand Charges can be entered here If it is desired to model the impacts of a special demand charge penalty associated with an outage i e one that is different than the demand charges that have been entered those alternative penalties can be addressed by entering an additional Demand Charge penalty in the Additional User Defined Annual Expenses Inputs below Figure 64 Forced Outage Rate Forced Outages Enter the of the DG Plant Capacity lost during a forced outage Q1 Jan Mar 9999999 10 0 Q2 Apr Jun 9999999 20 0 Q3 Jul Sep 0 Q4 Oct Dec 9999999 100 0 Revised 7 14 03 Page 125 EconExpert DG Users Manual Copyright 2001 2005 Absorption Chillers x Maximum Coincident Electric Chiller Demand Displaced by Waste Heat kw Annual Inputs These inputs are applied ONLY if the Tri Generation Switch is selected in the Global
53. distributive share of income and the partner s assumption of partnership liabilities minus any distributions and the partner s distributive share of losses For example if the partnership takes on non resource project debt the partner s assumption of that liability would the partner s share of the partnership capital A partner s distributive share of partnership loss is allowed only to the extent of the adjusted basis of the partner s partnership interest The adjusted basis is figured at the end of the partnership s tax year in which the loss occurred before taking the loss into account Any loss that is more than the partner s adjusted basis is not deductible for that year However any loss not allowed for this reason will be allowed as a deduction up to the partner s basis at the end of any succeeding year in which the partner increases his or her basis to more than zero Partnership Liabilities e A partner s basis in a partnership interest includes the partner s share of a partnership liability only if and to the extent that the liability o Creates or increases the partnership s basis in any of its assets The term assets includes capitalized items allocable to future periods such as organization expenses o Gives rise to a current deduction to the partnership o Is anondeductible non capital expense of the partnership e Ifa partner s share of partnership liabilities increases or a partner s individual liabilities i
54. eS S 3 Is aaa aja a aa ala ala ki Hne IES TIRI k E Ijs 3325 _ 3 325 asa5 s 8 828 3 325 0 9 975 9 975 9 975 9 975 E a l TA I cy _ s SSS Se KS a E Table TW4A provides projections of the aggregated monthly quarterly and annual Time Related Demand Charges WITH DG operational based on maximum energy use during each Rate Block and the applicable fees entered and calculated in Table TW4 above Annual nominal GNP Real escalation rates can be entered to establish the rate of increase of these fees going forward Results will be used in combination with the corresponding fee WITH DG Operational to calculate the savings associated with reductions in Time Related Demand Charges Revised 7 14 03 Page 162 EconExpert DG Users Manual Copyright 2001 2005 TW4B Projected Savings in Start of DG Time Related Demand Charges Operations KE 29 809 29 809 lt a 19 211 19 211 19 211 om 1 October November 9 211 19 211 19 211 19 211 27 129 27 129 E aa eel December Q1 Jan Mar Q2 Apr Jun Q3 Jul Sep Q4 Oct Dec Annual Figure 81 Table TW4B Projected Savings in Time Related Demand Charges Table TW4B provides calculated projections of the aggregated monthly savings in Time Related Demand Charges based on the difference in fees WITH and WITHOUT DG
55. entered or calculated in the Monthly Data Table Revised 7 14 03 Page 95 EconExpert DG Users Manual Copyright 2001 2005 vi Waste Heat from DG Available For Non Chiller Thermal Use Therms hr Global Inputs This is the rated useable thermal production from the DG in therms hr 100 000 Btu hr in each quarter and is equivalent to the amount of fuel displaced by waste heat This includes applicable steam or hot water applications The values entered here will be used to estimate savings associated with the displacement of purchases of natural gas or other fuel If the amount of waste heat available from the DG Plant is greater than the amount of thermal energy that can be displaced at the site the excess waste heat can be sold to a third party or will be vented If the facility uses absorption chillers the heat requirements for the absorption chillers should NOT be included in this input If the available waste heat is not expected to be constant over the life of the project annual NET waste heat values can be entered in Table 1C Project Annual Inputs Monthly rates can also be entered in the Monthly Data Table vii Engine Average Operating Heat Rate Btu kwh net OR Heat Input Global Inputs This is the average net heat input Btu kwh net of the engine based on the higher heating value HHV of the fuel If the plant will be cycled during the year this represents the composite average operating heat rate for the respective qu
56. f Simplified Inputs Table 1 Project Global Inputs Table 1C Project Annual 4 gt Revised 7 14 03 Page 59 EconExpert DG Users Manual Copyright 2001 2005 2 Title 3 The Title Sheet includes the EconExpert DG and CEI Logos and notification of the product copyright You may link directly to the CEI EconExpert Website http www CEInsight com by clicking on the EconExpert Logo shown on the Title Sheet Information on how to contact CEI is also provided The Macro Buttons on the right side of this sheet allow you to refresh the menu or to proceed directly to the Global Inputs Sheet Figure 32 Title Sheet File Edit view Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL 8x TE sSHAaAaaRY yi Ba lo a e l 24 43 25 oe B E A FY Conditional Formatting z L Arial 79 A s B z u EJE mimu E oe s E f Title_Entry_P Click Here to View Web Site A Universal Financial Proforma E M 4 gt mi License Title Status Sensitivities Project Summary Time of Use Wizard_ _ Monthly Data _ _Simplified Inputs Table 1 Project Global Inputs _ Eprawe 3 autoShpess WO OR FU RB O Z A S 2 HoO 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 specifie
57. for the Sensitivity Analyses and Tornado Diagrams Switches Fec Tri Generation Waste Heat Used for Chillers Operating Lease Economic Factors PTO Base Year Constant Dollar in Mid Year Month of Financial Closing General Inflation Rate for Revenues amp Expenses Year of Financial Closing Discount Rate NPV Construction Term mos For Acquisitions enter 0 24 month Interest Rate Earned on Escrowed Funds Project Life Years 20 Max Equity and Debt Percentages o Financial Closing Date Start of Operation Retirement Date Q2 Apr Jun 7 Annual Change 1897 1 0 Input fat B Site Electric and Gas Demand Excluding DG Quarterly Average Peak Site Electric Energy Demand kw 1 0 An7 Table 1 Project Global Inputs Table Quarterly Performance and Pricing Data FA ite Djeniaceahle Flartri oneumntinn 1000 hinerind Eyclidinn Chillers M 4 gt dif Sensitivities ProjectSummary Monthly Data Simplified Inputs 1C Project Annual Inputs Table 2 Summar Cell B13 commented by Steve Provol Revised 7 14 03 Page 54 EconExpert DG Users Manual Copyright 2001 2005 C Worksheet Tabs Tabs at the bottom of the spreadsheet identify the various worksheets and tables in the EconExpert DG Model Figure 30 EconExpert Worksheet Tabs EQ Microsoft Excel EconExpert DG Proforma V4 0 1495 UPGRADE xis 1 SHAR SAY BB Slo a xr silim ys QRPGCLAA BE
58. from month to month the values entered should represent the Average for the period since the quarterly demand charges will be an aggregate of the individual monthly charges during the quarter The values entered here will be used to estimate the costs associated with demand charges to ensure that adequate capacity is available from the utility if the DG facility is not available If MAXIMUM electric energy demand is not expected to be constant in a given quarter or is not expected to increase at a constant annual rate over the life of the project annual electric energy usage rates can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue Shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu ii Site Displaceable Electric Energy Use 1000 kwh period WITHOUT DG Global Inputs This is the Total Energy used at the location in each quarter if DG were not operating NOT including electric chiller consumption The values entered here will be used to estimate savings associated with the direct displacement of electric energy purchases from the utility by self generation The Chiller power requirements will be separately itemized below Using Tri Generation that power will be displaced by the use of waste heat used to drive Absorption Chillers rather than the original Electrically Driven Chiller Configuration I
59. identify the amount and direction of the change File Edit Yiew Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExp ii 8 x z 2 A z 4 EconExpert LP 4 0 341_Copyright 2001 2002 2003 Competitive Energy Ingight Inc All Rights Reserved 74 TABLE 4 2 2 April 23 2003 Example Frame F Combined Cycle Case 4 OPERATING FACTORS AND EXPENSES ed s A Year of Operation 5 6 7 Year 2010 2011 2 Months of Operation During Year 12 12 104 OPERATING EXPENSES 1000 Year Owner s Share Owner s Share 100 yos Year of Operation 6 106 Year 2011 197 Corresponding Annual Hours of Full Load Operation 108 Effective Annual Capacity Factor 0 0 Months of Operation Owner s O i XI ses 1000 rs Period 1AB Fuel R Period 2AB Fuel a Fuel Transportation 1 Fuel Transportation 2 User Defined Variable O8 amp M1 Non Fuel Variable O amp M s User Defined Variable O amp M2 User Defined Category 2 R Sorbent for SO2 Removal Anhydrous Ammonia for NOx Control Disposal of Ash Purchased Power Purchased Steam Annual Emissions Allowances User Defined Fixed O amp M1 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 4yr Additional Expenses 4 1000 yr Additional Expenses 5 1000 yr Expensed Major Maintenance Property Taxes Insurance Sub
60. in EconExpert DG that you will ALWAYS USE Table 1 and is where Global Inputs are entered From this table most projects can be fully modeled in fact Table 1 provides a complete checklist of the inputs that typically apply to any DG Project Using this table moving down each of the three columns separated by a BOLD RED LINE the user is prompted with an organized list of DG related inputs The strengths and limitations of Table 1 Project Global Inputs lie in the same point Using Table 1 the inputs entered will typically apply over the life of the project Input categories to Table 1 include e Switches to turn on off modeling features such as tri generation operating leases and tax benefits Characteristics of the site WITHOUT DG the host s appetite DG Plant design and performance parameters Tariff pricing WITHOUT and WITH DG Operational Other sources of savings and revenues DG facility operating costs DG facility capital costs Financing Options Depreciation and Income Tax Considerations A screen shot of Table 1 is provided below Start here Figure 41 Screen Shot of Table 1 Global Inputs Revised 7 14 03 Page 86 EconExpert DG Users Manual Copyright 2001 2005 EQ Microsoft Excel EconExpert DG Proforma V4 0 1495 UPGRADE x1s 1 SHAN S6Q BE Slo c ih Sa Mes OPGAA DB Arial 3 A s B z u E B s 88 SE pB Arn Ea eT a HI Mel t File Edit View Insert Format Tools Data Window Help Acrobat
61. 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 MERCHANTABILITY FITNESS FOR A PARTICULAR PURPOSE OR THAT THE MODEL OR THE RESULTS THEREFROM SHALL BE ERROR FREE EconExpert DG Windows EconExpert s normal mode is to have two Windows of the model available to the user These two Windows will be identified by Program Icons at the bottom of your Windows Desktop screen You may use this feature to view multiple sections of the model at the same time For example you can have the Global Inputs Table open in one window and a Operating Expenses Table open in a second window This would allow you to follow changes in the resulting cost calculations as you change inputs Please note that these two windows are simultaneous views into the same EconExpert Spreadsheet and do not represent separate copies of the model If desired you may add additional windows but if you close one of the EconExpert Windows in certain circumstances the model will require you to restore the window you closed i e to have two window
62. in the Tornado Analysis Capacity Factor Fuel Costs for Cogen Plant Operating amp Maintenance Costs Standby Charges Capacity Factor Cogen Plant Fuel Cost Fixed O amp M and Standby Charges of Annual MWH 5 or Fuel Use 10 Expensed Major Maint 25 of kw mo fee 25 of Costs Variable O amp M Costs 25 of Costs Other Cost Categories Defined by the User Inputs to Table 1C Not Included in All Fixed O amp M Item Above User Defined Costs 25 o User Defined Costs 25 User Defined Costs 25 of Costs in Table 1C O of Costs in Table 1C of Costs in Table 1C Category 1 Category 2 Category 3 User Defined Costs 0 User Defined Costs User Defined Costs of Costs in Table 1C 25 Yo sot costs in Table 1C 25 of Costs in Table 1C 25 Category 4 Category 5 Category 6 Click to Create Click to Create Cancel IRR Tornado Diagram NPY Tornado Diagram ee The white boxes in this sheet are the locations where you tell EconExpert DG over what range Increment that you would like the model to vary each of the specified inputs Once you have established the Increments one of the blue buttons at the bottom of the data form may be selected to generate the Tornado Diagram The first button will run the selected sensitivities and will sort the horizontal bars in the Tornado Diagram based on the after tax IRR showing the parameter which if changed would have the most conseq
63. 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 NPV and IRR versus the variations in the selected parameter It is important to note that 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 DG Command Menu All of the Sensitivities can be run as a batch from the EconExpert DG SENSITIVITIES Menu 21 Graphs Tornado 5 One worksheet in EconExpert DG 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 DG Command Menu in order to reflect results consistent with the current case The Increments Diagram are entered into a Data Input Sheet provided by EconExpert DG 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 It is important to note that the Tornado Diagrams are not updated aut
64. life of the loan non zero rates entered here will override corresponding entries to Table 1 Project Global Inputs Figure 67 Annual Inputs Debt Service or Capital Lease Custom Principal Payments or Interest Rates ee Custom Principal Payments on Senior Primary Debt or Capital Lease S yr 0 Custom Principal Payments on Subordinated Debt S yr Interest Rate on Senior Primary Debt or Capital Lease Interest Rate on Subordinated Debt 0 h Property Taxes Annual Inputs i J Annual Property Tax Amounts can be entered here and will override the of Basis or fixed amount entered in Table 1 Global Inputs This should represent only incremental property taxes due to the CHP Project If the annual property taxes do not follow the rules specified for Table 1 Project Global Inputs over the life of the project tax amounts entered here will override corresponding entries to Table 1 Project Global Inputs Insurance Annual Inputs Annual Insurance amounts can be entered here and will override the of Basis or fixed amount entered in Table 1 Global Inputs This should represent only incremental Insurance Expenses due to the CHP Project If the annual insurance costs do not follow the rules specified for Table 1 Project Global Inputs over the life of the project tax amounts entered here will override corresponding entries to Table 1 Project Global Inputs Annual State Depreciation for Cash Tax Purpos
65. not satisfied the lease is a Capital Lease and so must remain on the books of the customer The Operating Lease criteria are subject to review and approval by the IRS When you select the Operating Lease checkbox sections of the Global Input Sheet that relate to an Operating Lease will be activated in bold text and sections related to Debt Financing Capital Leases will be greyed out When you unselect this checkbox the status of those sections will be reversed Debt Lease Terms entered in Tables 1 and 1C are reported and resulting annual debt service lease requirements are calculated and displayed Debt Lease Coverage Ratios are also reported b The Organizational Structure of Table 5 Table 5 is organized as follows o The top section of Table 5 provides the factors used for the Debt Service or Capital Lease calculations Custom Debt Treatment Accelerated Principal Payments Interest Only Payments Schedules Breakdown of Interest Rates Interest Payments Principal Repayments Etc o Table 5A located on the bottom section of Table 5 provides Annual Debt Service Capital Lease or Operating Lease Expenses in as applicable Annual Debt Service Capital Lease or Operating Lease Payments Interest Payments Principal Payments Annual Lease Payments Cash Available to Cover Debt or Lease Debt Lease Coverage Ratios Revised 7 14 03 Page 80 EconExpert DG Users Manual Copyright 2001 2005 14 Table 6 Rev
66. o Capital Cost Equity and Debt Related Inputs o Capacity Factor and O amp M Related Inputs o Revenue Related Inputs The graphs illustrate how the after tax IRR or NPV of the project will be impacted by incrementing any one of several inputs in each of these categories Payback results are also calculated and can be plotted by the user The increment values are entered in the Data Form which can be opened by selecting the Tornado Diagrams options from the EconExpert DG Sensitivities Menu Note that for the Tornado Tables to be current the respective Tornado Diagrams must be updated prior to viewing or printing the table For additional discussion of Tornado Diagrams page 35 and page 171 Sensitivity Tables and Graphs Print the selected tables that are included on the Sensitivities Sheet These Tables show how the after tax IRR NPV and Payback of the project will vary as a function changes in a specific input variable The graphs show plots of the after tax IRR and NPV The user can alternatively chart the Payback values if desired When you select to run a specific Sensitivity from the Command Menu you will be asked to provide the increment to be applied in the analysis Using this increment the model will be executed seven times for the selected analysis varying the increment for 3 to 3 times the value you select If you direct the program to run all of the Sensitivities at once the increment values can be entered in the green s
67. of Use Energy Prices to Monthly and Annual Data Sheet Formats TW2C Projected Aggregated Cost of Start of DG Electric Energy Purchased fm Operations 14 01 08 Utility c kwh ITH DG Base Year Month Year 2003 2003 2004 2005 2006 2007 Annual Escalation GNP Real 0 1 1 1 10 76 10 76 10 77 10 73 10 74 10 75 10 80 10 81 10 82 10 80 10 81 10 82 10 30 10 30 10 31 13 67 13 67 13 68 13 53 13 54 13 55 13 67 13 67 13 68 8 73 8 74 8 74 10 80 10 81 10 82 November 10 67 10 68 10 69 December 10 76 10 76 10 77 Q1 Jan Mar 10 77 10 77 10 78 10 63 10 64 10 64 13 62 13 63 13 64 10 08 10 08 10 09 11 28 11 29 11 29 Table TW2C provides projections of the aggregated electric energy prices during each period based on the amount of energy displaced entered and calculated in Table TW2 above The resulting period electric energy consumption rates WITH DG in operation and the associated time of use energy pricing aggregated weight average electric energy prices are calculated on a monthly quarterly and annual basis Annual nominal GNP Real escalation rates can be entered to establish the rate of increase of these prices going forward Results will be transferred to the corresponding section in the Annual Inputs Sheet Please note that the proportional mix of Rate Block energy consumption is assumed to remain constant over the life of the project i e the relative percentages of su
68. on any computer but are limited to providing the results for the individual case studied when the model was converted If you purchase a subscription to the EconExpert model any copies of the model that you save will be recoverable as values only versions even after your license expires It is also important to note that when you perform a Save EconExpert DG will be temporarily disabled showing Div 0 results throughout the various tables The Input Sheet Titles will also disappear This is normal behavior that is caused by a Security Feature in EconExpert DG 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 DG you will always be able to clear this Div 0 result by selecting ENABLE MODEL from the EconExpert DG Command Menu If Macros are NOT enabled you will not be able to remove the Div 0 result When you select Save or Save As you will see the following message box EconExpert DG ALERT ma xi WHEN YOU SAVE DATA The Active Worksheet is Temporarily Disabled After the Saving Process is Completed please select ENABLE MODEL Enable FILENAME from the Command Menu at the top right of the screen If you have selected Save As and elect to change the file name the FILENAME description on the ENABLE MODEL menu will be updated when you re enable the model Select OK to Continue with Save Revised 7 1
69. opened SECOND o Record the filename of the Reference Model as you will need to enter this information e The COMPARISION file which you will name highlights the fields that have been changed e A Temporary File that EconExpert will create and then delete Note that 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 HIGHLIGHTED on a BRIGHT ORANGE Background Once initiated you will not be able to terminate this macro until it is completed You will be asked for two items when this procedure is initiated e The Name of the REFERENCE EconExpert DG Data File The REFERENCE file is the one that you want to compare the TARGET file against e 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 sa
70. returns to each partner These calculations assume that all partners are general partners versus limited partners so that special allocations may be incorporated Table 1P offers inputs to allocate taxable income and losses tax credits and cash distributions to each partner Each partner s capital account and basis are tracked throughout the lifetime of the project as well as each partner s estimated tax liability cash flows and after tax returns Table 11P lays out the partnership financial statements and most importantly calculates cash availability for distribution While these spreadsheets are tools that allow you to model partnership financials and individual partner returns whatever special allocations or distributions are assumed you should always review those allocations and distributions with your tax advisor so that they meet US tax Code and are allowed in your partnership agreements There are two methods to extract cash out of the partnership to each partner First there are cash distributions which withdraw cash from a partner s capital account Second there are guaranteed payments to partners that do not decrease the partner s capital account but might be taxed differently depending on the partner s situation 2 Defining Partners Initial Capital Contribution Up to three partners can be defined on Table 1P with their initial capital contributions also defined as a percentage of the total equity investment
71. savings associated with reductions in Time Related Demand Charges Revised 7 14 03 Page 159 EconExpert DG Users Manual Copyright 2001 2005 b Time related Demand Charges WITH DG The figure below illustrates Table TW4 where the user can enter tariff and peak demand data associated with the site WITH DG TW4 Time Related Demand Charge Wizard With DG Note that these are Usually Added to the Annual Non Time Related Demand Charges SCE TOU GS 2 Time of Use General Service Demand WITH er Metered Option A Effective DG Description January 1 1998 Updated by Base Year 2003 Start of DG Operations 11 01 03 ae CEI July 14 2003 Note See Simplifying Assumptions x Demand Maximum Charge Demand Charge Month Rate Block Demand kw ikw mo Month Rate Block Maximum Demand kw kw mo On Peak Mid Peak _Off Peak Monthly Time Related Demand Charges for February On Peak Mid Peak Off Peak Monthly Time Related Demand Charges for On Peak Mid Peak Off Peak Monthly Time Related Demand Charges for March On Peak Mid Peak Off Peak Monthly Time Related Demand Charges for Ap May On Peak November On Peak Mid Peak E Mid Peak E E On Peak Mid Peak January 7 75 245 On Peak Mid Peak On Peak Mid Peak October On Peak EE SS Sse Mid Peak EEE aaa Off Peak sass Off Peak EE ESS On Peak 350 De
72. 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 Global Inputs to Table 1 will be added to those results or will allow the user to introduce new User Defined categories Examples of specific inputs where results are added rather than overriding Global Inputs include Forced Outages User Defined Revenue Sources 6 Categories that you can define User Defined Expenses 6 Categories that you can define Additional Tax Deductions Additional State Taxes and Additional Federal Taxes Each of these is noted in Table 1C All of the other inputs will override Table 1 Inputs in AND ONLY IN the years that values are entered in Table 1C If Annual Inputs are entered 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 9999999 Column C along the left side of the respective inputs and the corresponding non zero inputs are also reformatted to Bold Red on Yellow Background If there are no non zero entries in a row then a red 0 will appear in Column C
73. the bottom on Table 1P from lines 407 420 The cash flows for each partner are detailed on lines 263 406 Revised 7 14 03 Page 193 EconExpert DG Users Manual Copyright 2001 2005 3 Partnership Financial Statements On Table 11P Partnership Financial income statement balance sheet and cash flows are provided to match the partner allocation specifications on Table 1P Partner Returns The following statements compare the differences between Table 11 Financials the project and Table 11P Partnership Financial the partnership Income Statement First the partnership income statement lacks any tax expense Second depreciation for the partnership is based on Tax depreciation while Book depreciation is used to the project financials Cash Flow Under Cash from Operations the differing depreciation schedules appear again The Cash from Investing line items are identical on both financials unlike Cash from Financing which has several varying items The partnership financials list the contributions and distributions while the project financials only list the changes in equity contributions Balance Sheet There are several differences in the project and partnership balance sheets On the partnership balance sheet under Assets the cash amount will vary because cash is being pulled out of the partnership and distributed to the partners Next the Property Plant amp Equipment will differ because of the d
74. 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 Revised 7 14 03 Page 111 EconExpert DG Users Manual Copyright 2001 2005 Figure 57 Table 1 Project Global Inputs Depreciation for Book and Cash Depreciation of Basis 7 For Taxes For Book Select Basis excludes Debt Res Wrk Cap Land MACRS SL 9 11 Economic Stimulus AE 4 937 118 4 937 118 Depreciation in Year 1 Basis 5 Years Federal State 10 Years Typical Cogen 70 0 i fv 15 Years 20 Years 30 0 User Defined in Table 11 i 0 0 N A No Data in Table 11 User Defined in Table 11 0 0 N A f See Table 11 for Data 7 Years 200 Declining Balance N A Total Depreciated 100 0 100 0 In addition to the 5 standard 5 7 10 15 and 20 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 of the tax basis to be depreciated in each of your user defined categories Next from the NAVIGATE menu select NAVIGATE Results Tables Table 11 Depreciation In the shaded cells spe
75. the resulting value of the energy that is displaced Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu XV Demand Charges for Maximum Metered Power kw mo WITHOUT DG Global Inputs Demand Charges are reflective of the maximum meter reading experienced by the customer during the target period Often times a portion of the customer s bill is based on the maximum power demand that is used either as a monthly average or during a specific on peak period The utility then includes in the power bill a fixed annual Demand Charge for capacity required to support that amount of demand This input is the demand charges that will be paid to the utility in kw mo to ensure firm power to meet the annual load requirements WITHOUT DG When the DG Facility is brought on line the customer should realize a savings in demand charges associated with the fact that as a result of self generation they no longer have as large of a demand requirement If the Demand Charges are not constant or do not escalate at a constant rate over the life of the project annual Demand Charges can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu Revised 7 14 03 P
76. the utility in kw mo to ensure firm power to meet the annual load requirements When the DG Facility is brought on line the customer should realize a savings in demand charges associated with the fact that as a result of self generation they no longer have as large of a demand requirement If the DG Facility does not operate reliably the savings in demand charges may be reduced or eliminated and a demand ratchet may apply in the succeeding period The calculation of savings associated with reassessment of demand charges is based on the following o If Standby Charges are assessed there will be no reassessment of demand charges or demand charge savings o If there are no Standby Charges the Demand Charges or resulting savings in each quarter will be assessed on the current quarter If it is desired to model a partial quarter using the Annual Inputs Sheet simply prorate the value for the number of applied months in the quarter and divide by three o If the facility experiences an unplanned outage during the year the basis for demand charges in that quarter will be the new demand basis for that quarter xvi Demand Ratchet Annual Inputs The Demand Ratchet is a special condition used in some tariff or utility rate schedules which requires the customer to pay a premium on each bill during a specified period typically related to peak demand or usage during a previous billing period Ratchets are often used by utilities as a means to recov
77. used for PP amp E Table 1P and Tax Depreciation is used for PP amp E Includes Deferred Taxes Does not include Deferred Taxes Equity Capital Accounts Tracks total Equity in Tracks the sum of the project and treats Net Partners Capital Accounts Income as Retained as well as Contributions and Earnings Distributions from Table 1P 4 Allocations There are many different ways partnership agreements can structure allocations of taxable income and loss This model certainly does not handle all possible variations but can handle many different types Taxable Income Loss and Depreciation The allocations available in Table 1P follow the typical allocations allowable under US partnership tax laws While this model allows the user to allocate the economic items in any proportion only your tax advisor can determine whether those allocations are allowable under US tax laws At the top of Table 1P in cells C13 C14 you can elect to set the sheet in one of two modes e Taxable Losses This mode allows the user to allocate Taxable Income and Taxable Losses separately with depreciation included in the Taxable Losses Allocation e Depreciation This mode allows the user to allocate Taxable Income Losses separately from Depreciation Figure 94 Table 1P Partner Returns Taxable Income Basis TOCopyright 200s Table 1P Partner Returns Description REFRESH Menu Project Life 20 Year of Analysis November 7 2005 I
78. will not be impacted by partial year operation The values will be used by the model as entered Note are items where SAVINGS are realized as a result of DG are items that result in NEW COSTS that may be incurred as a result of DG a General Inflation Rate for Revenues amp Expenses Annual Inputs This is the Gross National Product Inflation Rate applied for each year during the life of the project The GNP Escalation rate is the core rate of general inflation used by the model Escalation rates for individual components can be adjusted up or down from this core rate by entering the Real Escalation of that component which is added to the GNP Escalator If the GNP escalation rate is not constant over the life of the project the escalation rate can be entered here for any year or period of years Values entered to the right will override the value entered in Table 1 in the years that they are input in this table Figure 63 General Inflation Rate GNP for Revenues and Expenses September 21 2002 Yr of Operation Year 1 2 3 4 Escalation General Inflation Rate for Revenues amp Expenses 0 b Quarterly Inputs to the Annual Inputs Sheet This section allows you to enter ANNUAL projected pricing and DG plant performance data on a quarterly basis Corresponding costs will be itemized in the calculations performed by EconExpert DG on a quarterly basis Such data might be projected from actual monthly electric and
79. 000 000 Operating Lease Selected Operating Lease Select Operating Lease Monthly Payment Lease Term yrs 60 000 xxx Sources of Capital A summary of sources of capital for the project is provided in this section The figure below shows these amounts Figure 56 Sources of Capital Summary in Table 1 Sources of Capital Project Total Equity at Start of Operations 2 473 299 Primary Debt 2 473 299 Subordinate Debt 4 946 598 AAAS Total Project Investment There are no inputs in this section The table is provided as a summary to assist in setting up the Depreciation Schedules that follow xxxi Depreciation Global Inputs EconExpert DG 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 9 Depreciation is calculated using the cost basis of the plant Capital Investment minus working capital debt reserves land and spare parts In this section of Table 1 the user specifies the percentages of the original plant Cost Basis that are 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 operation in the first year and accelerate capture of depreciation in
80. 25 0 Fixed amp Expensed Major Maintenance Costs 5 yr avg 54 000 25 0 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 Please note that due to the nature of cash flow timing and discount rate effects on the IRR and NPV calculations the ordering of consequential impact of the parameters on the respective IRR and NPV Tornado Diagrams may be different for the same base case Revised 7 14 03 Page 175 EconExpert DG Users Manual Copyright 2001 2005 H Customizing EconExpert DG One of the beauties of EconExpert DG is the flexibility it offers allowing you to accurately 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 DG 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 1 Yellow Free Form Tables At the bottom of each sheet a
81. 307 2 329 2 351 28 29 Site Displaceable Electric Consumption 1000 kwhiperiod Excluding Chillers 30 January 550 551 552 553 554 556 557 558 31 February sso saf 2f ssa ssa ey ss7 F558 33 April 650 654 655 658 659 34 May eof esf esf esaf ess esr ess 659 35 June oo Toa _ f zaaf os ror Fos F740 36 Juy 5052 Psa mss Free sa oy wa 38 September 660 661 663 664 665 668 669 40 November 550 551 553 554 557 558 4 ee S50 FO 5a F552 FSA a st F558 42 Annual Total 7 460 7 475 7 490 7 505 7 520 7 535 7 550 7 565 43 44 Site Displaceable Use of Gas 1000 Therms Mionth 5 45 danuary sof 652 66a se PO ssrf sa sof 562 46 February 60 0 6o2f soasf sos eorf osf ota F643 43 April 45 0 45 1 45 4 45 7 45 8 46 0 43 May 35 00 af 32y aay asa assy sey 35a 50 June Pe tk e o ooe o a e o o 51 July 20 0 P 202 202 203f Ys a 53 September 25 4 sa Actoher ann ana an ana ana an amp an i stan ics amp a ED M EconExpert DG Users Ma E EconExper DG Profo EconExpert DG Proforma fits 2 ODS Lz 5 13 PM Revised 7 14 03 Page 135 EconExpert DG Users Manual Copyright 2001 2005 The light blue shaded input cells in the top section of the table can be used to enter Historical Data and Projected Data WITHOUT DG in Operation on pricing and use of electric energy and fuel at the site EconExpert will automatically convert this monthly historical pricing information to the quarterly format used in Table 1 Project
82. 36 34 73 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 273 668 2 417 894 4 408 444 e On Equity On Total Capital Investment Payback 2 6 Years 5 7 Years 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 User Input Form that is opened when you select the respective Tornado Diagram from the SENSITIVITIES Menu An example of the User Input Form that will be opened is provided below Revised 7 14 03 Page 35 EconExpert DG Users Manual Copyright 2001 2005 Your User Defined Titles Appear Here Figure 23 Tornado Diagrams User Input Form A Tornado Diagram Cogen Plant Operations Fuel and Operating Cost Related Inputs x TORNADO DIAGRAM Cogen Plant Operations Fuel and Operating Cost Related Inputa Tornado Diagrams help you to identify which economic parameters inputs if they were to change would have consequential imp illustrate how the IRR of the Project will be impacted by changes in order or significance This provides valuable insight into f further investigation to determine how changes would impact the economic case you have set up This Data Entry Form allows you to select the ranges that you would like EconExpert to evaluate in a Tornado Diag fat will il impacts gf Cogen Facility Fuel Use Operations and Maintenance Related Inputs on your proforma For example if you enter 20 for g6g
83. 4 Sample Tornado Diagram Tornado Diagram Sensitivity of After Tax IRR to Changes in Fuel Costs Fixed and Variable O perating Costs and Capacity Factor Related Inputs Base Case 10 yr IRR 35 5 Change in Leveraged IRR from Base Case 2 5 2 0 1 5 1 0 0 5 0 0 0 5 1 0 1 5 2 0 Annual Capacity Factor life of project avg 84 5 5 0 User Defined Additional Annual Expenses 3 5 yr avg O amp M 141 417 25 0 Cogen Annual Fuel Price 5 yr avg 0 350 Therm 5 0 User Defined Additional Annual Expenses 2 5 yr avg O amp M 90 595 25 0 User Defined Additional Annual Expenses 1 5 yr avg O amp M 55 716 25 0 Standby Charges 5 yr avg 3 000 kw mo 25 0 Variable O amp M Costs 5 yr avg 0 000cents kwh 25 0 Fixed amp Expensed Major Maintenance Costs 5 yr avg 54 000 25 0 Revised 7 14 03 Page 37 EconExpert DG Users Manual Copyright 2001 2005 5 UTILITIES The UTILITIES Menu provides useful tools to manage the model Features on the UTILITIES Menu include a Global Inputs Wizard The Global Inputs Wizard provides an index to walk you through the population of the Global Inputs Sheet f 7 Index 2001 2005 CEI Inc All Rights Reserved EconExpert DG Global Input Wizard Index Formi Switches Form2 Economic Factors and Project Schedule Form3 Customer Site Appetite for Thermal click and Electric Use Form4 DG Plant amp Absorption
84. 4 03 Page 164 EconExpert DG Users Manual Copyright 2001 2005 After saving the model to eliminate the Div 0s and re enable the model select ENABLE MODEL Enable Filename from the EconExpert Command Menu If two copies of EconExpert DG are opened the Enable Model Menu will list the names of each of 2 opened EconExpert files If you have set Recalculation to Manual you will also be required to press the F9 key to perform the calculations necessary to re enable the model Figure 82 Deleted Revised 7 14 03 Page 165 EconExpert DG Users Manual Copyright 2001 2005 2 Creating a Values Only Copy of the EconExpert DG Model That You Can Share with Others Who Don t Have a License From the UTILITIES MENU or EconExpert DG HELP Menu you can create a Values Only copy of the current EconExpert DG Model for sharing with others who may not be licensed to use EconExpert DG 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 will not be capable of performing any new calculations Values Only spreadsheets will be protected WITHOUT passwords so the developer may edit or modify any of the sheets in the model but DO NOT DELETE ANY OF THE WORKSHEETS IN THE MODEL AS SUCH WILL RESULT IN AN ERROR WHEN THE VALUES ONLY SHEET IS REOPENED Sinc
85. 50 50 Debt Equity No annual changes in Site Requirements or DG Plant Performance All costs and savings escalate at GNP 6 Discount Rate for NPV Calculations 1 75 Interest Rate earned on Escrowed Funds No Demand Ratchets Apply No Forced Outages All Excess Production sold back to utility NO Third Party Sales No Capacity Payments or Thermal Sales to Third Parties Property Taxes amp Insurance are each 1 of Asset Basis No Terminal Value 35 Federal Income Tax Rate a F KF K The User may override the d items by entering their own values in the Global Input Sheet prior to transferring the data All other inputs are set to 0 Other key assumptions when you utilize the Simplified Input Sheet include o The debt term or lease term are equal to the project life o The depreciation life is the MACRS class that is less than and closest to the project life o Annual usage rates costs amp savings are prorated quarterly Revised 7 14 03 Page 116 EconExpert DG Users Manual Copyright 2001 2005 Figure 61 The Simplified Inputs Sheet Simplifed Inputs See Instructions in Help Comme Green Shaded Areas Indicate DG Related Inputs Name of File F CENCEI Proforma CEI Commerial Proforma Distributed Generation DG Model with and Critical Inputs are Identified in Red without DG Analysis EconExpert DG Proform 0 1563 BETA xIs Simplified Inp Blue Shaded Areas relate to site WITHOUT DG CHP Description Ex
86. 8 EconExpert DG Users Manual Copyright 2001 2005 Pop Up IRR NPV Summary The IRR and NPV Summary is a convenient pop up that you can access from the UTLITIES menu from any location in the model It provides with you with an update of the current After Tax IRR NPV and Payback results which are calculated in Table 8 Results and are also presented at the top of the Global Inputs Sheet To close the summary simply click on the X box on the top right of the form Standby Charges Standby Charges are usually a Monthly fee kw mo that represent new charges to the customer of the utility to ensure that in the event of an outage in the cogeneration facility the utility will provide firm backup power Normally if standby charges are imposed there are no additional penalties or demand charges paid by the customer even if the DG Facility experiences interruptions in service Standby Charges are calculated in the model based on the maximum established generating capacity of the DG Facility EconExpert DG allows you to input projected Standby Charge rates in the Global Annual or Monthly Data Sheets and to evaluate the associated savings Please consult the fee structures for your local utility for more and specific information on their Standby Charge structure Switches The Switches in the Global Inputs Sheet provide the user with the capability to turn ON or to turn OFF special calculations in the model To select an option controlled
87. ADDING the GNP Deflator and the Real Escalation applied to each item 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 Locations where a red asterisk appears identify cells where a potential warning message is located but not needed Also note that when inputs that result in overriding of a particular entry to Table 1 Project Global Inputs are entered in Table 1C Project Annual Inputs the format of the value of the input 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 in the proforma Revised 7 14 03 Page 71 EconExpert DG Users Manual Copyright 2001 2005 9 Table1C 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 Project Global Inputs Any non zero entry is read as an Annual Input and included in the calculations in the model If it is desired to enter a O for Annual Input use a very small number like 0 0000001 and the zero value will be used in the model Where appropriate this means that Global Inputs from Table 1 will be overridden in the years that Annual Inputs are entered The
88. Additional discussion of the Sensitivity Input Tables is provided on page 62 and page 167 2 PRINT The PRINT Menu provides you with options for printing Tables and Graphs generated by the EconExpert DG 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 Page Setup and File Print Revised 7 14 03 Page 31 EconExpert DG Users Manual Copyright 2001 2005 Options just as you would from any other spreadsheet Please note that the EconExpert DG Software License Agreement requires that you include the Copyright notice on any reports that you create Options on the PRINT menu include Tables Select this option to print reports of any of the inputs or results tables in the model to letter sized paper Tables can be printed to 8 1 2 x 11 or to 11 x 17 paper Current Case Graphs Select this button to print the various Current Case graphs in the model These graphs are located on the Worksheet Tabs Graphs Current Case 6 and Graphs Current Case 7 Results will be printed to 8 1 2 x 11 paper Tornado Tables and Graphs Print the Tables and Graphs that are generated each time you create a Tornado Diagram from the SENSITIVITIES menu These graphs show results for the respective Tornado Analyses for the following categories
89. 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 macros 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 Revised 7 14 03 Page 178 10 12 EconExpert DG Users Manual Copyright 2001 2005 copies shall include the EconExpert DG trademark and copyright notices as provided by CEI in the Model and on all reports generated using the Model 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 a Licensee This limitation of liability shall apply to all claims made by Licensee or its aff
90. Checkbox is selected any tax losses and their associated depreciation write offs will be carried forward and applied to future project earnings during any year that the project experiences losses If this option is not selected the project will be credited with net income associated with tax losses in the year that those losses occur This latter scenario assumes that losses can be transferred and fully applied against other before tax profits realized by the owner Revised 7 14 03 Page 189 EconExpert DG Users Manual Copyright 2001 2005 Tornado Diagrams Tornado Diagrams are a unique tool that will help you to identify which economic parameters inputs if they were to change would have greatest consequential impacts on the analysis They illustrate how the IRR NPV or Payback of the Project would be impacted by changes in order or significance This provides valuable insight into which parameters might warrant further investigation to determine how changes would impact the economic case you have set up When you select to create a Tornado Diagram from the SENSITIVITIES Tornado Diagrams Menu Option you will be prompted with a Data Entry Form which asks you over what ranges you would like to study the selected parameters After completing the form click on the button at the bottom of the form to create the diagram Tri Generation EconExpert DG offers the ability to evaluate Cogeneration or Tri Generation Applications Cogeneration pr
91. Copyright 2001 2005 4 TORNDADO DIAGRAMS The SENSITIVITIES Menu also provides you with options to generate Tornado Diagrams Tornado Diagrams are a unique tool that will help you to identify which economic parameters inputs if they were to change would have greatest consequential impacts on the analysis They illustrate how the IRR or NPV of the Project would be impacted by changes in each of several categorically related inputs in order or significance This provides valuable insight into which parameters might warrant further investigation to determine how changes would impact the economic case you have set up To create a Tornado Diagram select SENSITIVITIES Tornado Diagrams from the Command Menu You will be prompted with a Data Entry Form which asks you over what ranges you would like to study the selected parameters You can specify the term in years of the IRR and NPV Analyses that are used in the Tornado Diagrams 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 the following Figure Figure 22 Inputting the Term of Sensitivity Analyses or Tornado Diagrams Baa O IRR TERM FOR No Annual I Used NPV IRR and Payback Summa SENSITIVITY STUDIES sal cs After Tax AND TORNADO DIAGRAMS Term 5 7 10 IRR After Tax 23 79 30
92. Cycle Case comparedto Example Frame p Combined Cycle anges Highlighted on an Orange Bal Plant Capacity Heat Rate amp Fuel Type Energy and Fuel Pricing Profiles Period 14 Period 1B Rated Net Plant Capacity MWN Mv Period 14 Period 1B Net Heat Rate Electricity Onl P7000 Bturkwh HH of Annual MAH Produced 11 0 x x ry Re Fuel Selection Enter 1 for Coal Coke Wood or Oil Enter 2 for Gg Period 1AB 2AB Energy Prices SAMAH Escalati 2 Energy Sales AH 28 00 0 0 Less Transmissioniheeling SMH a eed os 0 0 Economic Factors Net Energy Price to Customer SMVVH 4400 00 28 00 0 0 Base Year Constant Dollar in Mid Year 2003 F R Period 1 2 Fuel Prices a 1AB 33 GNP Escalation Rate for Revs amp Exps Gas FOB Supplier 2 65 SMMBtu 0 0 to by EOY 2003 f Transportation 1 E 0 0 Discount Rate for Unleveraged NPV 10 00 a Interest Rate Earned on Escrowed Funds 1 peee o u uoo E Equity and Project Ownership Equity Debt Fuel Quality Selected Fuel GAS During Construction 0 0 100 0 Higher Heating Yalue of Fuel 4 000 BtusSCF During Operations 40 0 SS ie 0 00 Ib Ashiint Owner s Interest in the Project 100 0 Sulfur in the Fuel by Weight on 0 00 Ib SO2MM ry Fnviranmental Controls Mseen A e S BD BB EconEx amp y xls 1 5 y xls 2 Benet E tas 2 E E Com i aASOOBR 1 56PM The ORANGE shaded cells indicate wher
93. DG will not function properly with that software Winzip or the equivalent for decompressing the original files Note that if requested the EconExpert DG 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 It should be noted that while use of the EconExpert DG 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 WinZip is a registered trademark of WinZip Computing Inc Revised 7 14 03 Page 18 EconExpert DG Users Manual Copyright 2001 2005 IV Getting Started Installing EconExpert DG For a trial or paid subscription to EconExpert the following EconExpert DG file will be provided to you by CEI The file can be transferred to you by email or can be downloaded with approval codes from our website EconExpert DG Installation File v xxx Your Name Your Company Zip This is the file that contains the uninstalled EconExpert DG Model Installation Copies should ONLY be provided by CEI Inc and under the terms of the License Agreement Prior to installing the model copy this file to your hard drive EconExpert DG
94. Debt Interest Rate on Primary Debt Interest Rate on Subordinated Debt Term of Primary Debt Term of Subordinated Debt 000000000 Revised 7 14 03 Page 171 EconExpert DG Users Manual Copyright 2001 2005 e Fuel and O amp M Related Inputs Annual Capacity Factor DG Plant Fuel Price Variable O amp M Expenses Fixed O amp M and Major Maintenance Expenses User Defined Expense 1 User Defined Expense 2 User Defined Expense 3 User Defined Expense 4 User Defined Expense 5 User Defined Expense 6 Standby Charges Oo O 0o0o0o00000 O e Revenue and Savings Related Inputs Capacity Payments Price of Electric Energy Purchased from Utility drives Savings Price of Electric Energy Sold Back to Utility Steam Sales Demand Charges drives Savings Fuel Use or Price for facilities other than DG drives Savings User Defined Revenues 1 User Defined Revenues 2 User Defined Revenues 3 User Defined Revenues 4 User Defined Revenues 5 User Defined Revenues 6 O O OO0O0OO0OO0OO0OO0O0O0OO0O 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 Revised 7 14 03 Page 172 EconExpert DG Users Manual Copyright 2001 2005 Figure 87 Tornado Diagrams Data I
95. Default Drawdown Schedule Used Partial Year Operation Construction Schedule Drawdown Check Tax Credits Check Deferred Taxes Check State Economic Stimulus Bonus Depreciation Not Applied ederal Economic Stimulus Bonus Depreciation Total Depreciation El Eas pa 2 ho 2 m D s z g 2 Ww 2 DiFlolololz zlolo 3 3 3 5 3 RX Ed 9 gt s gt Hy a ry 8 i a 33 A A E 48 49 50 51 52 Ey 56 57 58 59 60 Table 4 Figure 33 Status Sheet Revised 7 14 03 Page 61 EconExpert DG Users Manual Copyright 2001 2005 4 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 term used for the Sensitivity Studies in input in the IRR Summary Section at the top of Table 1 Additional discussion of how to use EconExpert DG s automated Sensitivity Features is provided on page 167 Figure 34 Sensitivities Sheet El Microsoft Excel EconExpest 0G Proforma VBETA 3 0 1430 sist OSMAN SRY SRR To ao Qe oh Mam OAPE ROSH mA IE Fie gd Yow Inse
96. EconExpert DG Users Manual Copyright 2001 2005 Model the Future A Universal Financial Proforma Ho claim ir made tothe oxclurive right toure EconExpork and A Universal Financial Proforma apart from the mark arrhoun User s Manual for the EconExpert DG Financial Proforma For the Economic Evaluation of Distributed Generation Combined Heat and Power Energy Savings and Other Inside the Fence Retail Energy Projects Cea Prepared by Competitive Energy Insight Inc Tel 858 566 0221 Fax 858 566 0287 Email Info CEInsight com Website http www CEInsight com Revised 7 14 03 Page 1 EconExpert DG Users Manual Copyright 2001 2005 Page Intentionally Left Blank Revised 7 14 03 Page 2 EconExpert DG Users Manual Copyright 2001 2005 Important Notices to Users of EconExpert DG Copyright Notice The EconExpert DG Financial Model and its accompanying documentation are protected by copyright law and international treaties The EconExpert DG Model documentation and reports generated by the model include prominently displayed Copyright Notices Unauthorized use modification reverse engineering reproduction or distribution of the EconExpert DG 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
97. Escalator plus the Real Escalation Factor input to the right Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear Fuel prices will be used to determine the cost of fuel for the DG Plant Projected monthly prices can also be entered in the Monthly Data Table and transferred to the Annual Inputs Sheet using the UTILITIES Populate with Data From option on the EconExpert Command Menu c Capacity Payments Annual Inputs Capacity Payments are fixed payments received from the local utility or a third party for guarantees of the availability of electric capacity in kw when needed If the annual kw mo price does not follow a constant escalation pattern annual ancillary services in kw mo can be entered here in current These cost entries will not be escalated Non Zero values entered here will override this value entered in Table 1 in the years that they are entered d Price of Steam or Hot Water Sold to Third Parties Annual Inputs If excess steam or hot water is generated by the facility this steam or hot water can be sold to a neighboring facility at the value entered here If the annual hot water or steam sales price does not follow a constant escalation pattern annual steam price values can be entered here in current These cost entries will not be escalated Revised 7 14 03 Page 130 EconExpert DG Users Manual Copyr
98. F Get isr 1 557 7740 Revised 7 14 03 Page 148 EconExpert DG Users Manual Copyright 2001 2005 Input fields in table TW1 are Description This description is used to annotate the name of the applicable tariff WITHOUT DG Base Year and Start of Operations The Time of Use Wizard must be with the schedule selected in the Global Inputs Sheet so these values are determined from entries to the Global Inputs Sheet All escalation calculated by the Time of Use Wizard will be from the Base Year Non Chiller Load Chiller Load and Capacity Factor These entries are used ONLY for circumstances of continuous 7 x 24 operation subject only to shut downs for maintenance Based on entries to these cells the Non Chiller and Chiller 1000 kwh period provided below can be automatically calculated Alternatively the user can enter the kwh generated in each period overriding the formulas provided Capacity Factor For 7 24 operation this represents the annual capacity factor accounting for site outages Rate Block A Rate Block or Time of Use Period corresponds to the time interval over which a certain pricing structure applies These default Rate Blocks i e Super Peak On Peak Mid Peak Off Peak or other correspond to periods when rates make step changes due to variations in system wide demand but the user may rename any of these periods to match the desired tariff Based on the applicable tariff there will be a characterist
99. Figure below provides a Screen Shot of Table 1C H Eile Edit Yiew Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL A B c D E fi wo O 1 EconExpert DG V4 0 1575 Copyright 2001 2002 2003 Competitive Energy Insight Inc All Rights Reserved 2 Green Shaded Areas Indicate DG Project Inputs 3 i 5 Ar Blue Shaded Areas can be site data WITHOUT DG 4 Mag 18 2003 YrofOperstion Year 2 2004 2005 2006 20 5 6 Months of Operation During Year Annual Inputs Holding Bin is not labled 12 12 7 Green Shaded Cells are Input Locations Orange Shaded Cells are also used by Tariff Model 8 All Annual Inputs expressed at values are entered in Current Proforma Hotes Empty Cells or entries of 0 will result in Global Inputs being used in the rae f associated gear Otherwise unless otherwise indicated Annual Inputs HAA override Global Inputs in the gear that theg are entered Enter a verg that small number such as 0 000001 if you would like to override the Global geen is nnual Inputs Input with an Entry equivalent to 0 have been entered in the Annual inputs are used Literally that is theg are not atomically A respective row adjusted for partial gear operation or escalation Escalation General Inflation Rate for Revenues amp Expenses Site Electric and Gas Use and Demand WITHOUT DG Maximum Total Site Electric Energy Demand 3 Month Average kw
100. Generation Waste Heat Used for Chillers General Inflation Rate for Revenues amp Expenses Operating Lease l Start of Operin MM DD YY _06 ___ Investment Costs resus Term mos For Acquisitions enter 0 24 months Max if Phase 1 Development Expenses Annual Performance and Pricing Data Site Requirements Maximum Monthly Site Electric Energy Demand kw 12 month Average Site Non Chiller Displaceable Electric Consumption 1000 kwh yr bs fi Installed Cost of Project Electric Chiller Power Consumption 1000 kwh yr N Other Costs or Credits Site Displaceable Use of Gas or Other Fuel 1000 Therms yr i i DG Plant and Chiller Performance Tri Generation NOT Selected Net Generating Capacity of DG Plant kw _2 000 _ Waste Heat from DG Available Thermal Use Therms hr Soft Costs Engine Average Operating Heat Rate Btu kwh net q OR Startup Costs DG Plant Gross Avg Fuel Input Therms hr HHV Basis 3 J Working Capital DG Plant Capacity Factor in Each Quarter Calcluated DG Plant Electric Generation 1000 kwh period Total Investment Costs without Interest Costs Value of Displaced Electric Energy Purchased from Utility c kwh Vaive of Displaced Demand S kw mo 6 000 ess Electricity Sold TO Utility c kwh 3 000 _ Construction and Permanent Financing Standb iby Charges to Ensure Firm Backup Power S kw mo 2 500 Interest Rate on Construction
101. Global Inputs applying escalation from the stated year using the escalation indices in Table 1 This data should be entered in Base Year The Base Year is an input to the Table 1 Project Global Inputs Sheet The igh reen shaded input cells can be used to enter Projected Data for the site WITH DG including Tariff Data and DG Plant Performance EconExpert will automatically convert this monthly historical pricing information to the quarterly format used in Table 1C Project Annual Inputs The values will be used literally so you must include escalation in the inputs if it applies You may automatically populate Table 1 Project Global Inputs sheet with entries in this table by selecting UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Transfer Historical Monthly Data to the Global Inputs Sheet UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Reference Projected Monthly Data in the Annual Inputs Sheet from the EconExpert Command Menu Please note the following points when you use this feature e Historical data should be entered in Base Year for transfer to Table 1 Project Global Inputs Projected data should be entered in current escalated for transfer to Table 1C Project Annual Inputs e You must allow for a partial year of operation if applicable e Data can be copied and pasted from other sources The pasted d
102. 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 guess is omitted it is assumed to be 0 1 10 percent If 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 Major Maintenance Major Maintenance Costs are costs incurred for major repairs In EconExpert DG these costs are expensed for book and tax purposes in the year they occur Net Present Value NPV The Net Present Value is the equivalent value of a stream of cash flows discounted to a specified time at the specified discount rate In EconExpert DG the NPV is expressed as of the date of Financial Closing of the Project Operating Lease An Operating Lease is structured so that the Leasing Company the Leasor takes title to the project assets on their books As a result they are able to capture all of the associated tax depreciation at the Leasing Company s income tax rates This can provide advantages for the Leasee the customer as the Leasee might not be able to as fully take advantage of the associated depreciation write offs If an Operating Lease is selected by selecting the corresponding Checkbox EconExpert DG will assume that the project is 100 financed by the Operating Lease and that title will be held in the name of the Leasing
103. IRR is impacted by changes in the selected variable A sample of that graph is shown on the next page Figure 85 Graphs Produced from Sensitivity Analyses IRR After Tax 10 Years E NPV After Tax 10 Years at 6 0 Discount Rate Revised 7 14 03 Page 169 EconExpert DG Users Manual Copyright 2001 2005 Important Notes regarding Sensitivities e Sensitivities analysis 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 may need to be updated to reflect the new case e 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 DG 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 Revised 7 14 03 Page 170 EconExpert DG Users Manual Copyright 2001 2005 G Tornado Diagrams The SENSITIVITIES Menu also provides you with options to generate Tornado Diagrams Whereas the individual Sensitivities on this menu allow you to selectively study effects of
104. ITIES EconExpert HELP ENABLE MODEL e e G Global Inputs Holding Bin is F 5 z FACERCEI Proformat orking ProformatDistributed 10 Green Shaded Areas Indicate DG Project Inputs Name of File Generation EconEzpert DG Proforma 4 0 1577 zls T able 1 Active Annual Inputs Sheet i Blue Shaded Areas can be site data WITHOUT DG Description Default Case 4 i IRR TERM FOR NPV IRR HPY IRR and P kS a Ho Annual Inputs Used 2 ani abas ummary SENSITIVITY STUDIES 12 Di _ i S O o L O Term 14 IRR After Tax 23 83 30 21 33 89 IRR After Tax 15 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 212 727 2 266 636 3 732 826 NPV After Tax 6 0 Discount in 2003 6 F 2 1 On Equity On Total Capital Investment 7 Payback 2 6 Years 5 9 Years a Proforma NOTES nputs examples and descriptions provided by CEI in the Model and in the User s Manual are provided for exar 16 P P P Pry warranties with respect to the accuracy of such inputs examples or descriptions 19 0 Payback Switches Check Boxes Selected Tax Treatment Switches Federal State a I Tri Generation VWvaste Heat Used for Chillers YES Use 941 Economic Stimulus Depreciation Operating Lease 3 HO Carry Forward Tax Losses Economic Factors DG Project Schedule Base Year Constant Dollar in Mid Year Month of Financial Closing _27 General Inflation Rate for Revenues amp Expenses J
105. Inputs Equity and Debt Percentages Applies to Debt Financing and Capital Leases Only Equity and Debt Percentages O Equity Debt During Construction 50 0 50 0 During Operations 50 0 50 0 Inputs in this section include Equity During the Construction Phase 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 percent debt is calculated by difference Revised 7 14 03 Page 91 EconExpert DG Users Manual Copyright 2001 2005 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 Permanent Debt or a Capital Lease is selected during the Operating Phase If an Operating Lease is selected all equity will be assigned to the Leasor as described in the overview of Operating Leases on page 79 The terms specified for Primary and Subordinated Debt and Capital Leases are discussed on page 108 The percent debt is calculated by difference d DG Project Schedule Global Inputs The Project Schedule Inputs to Table 1 are shown in the Figure below DG Project Schedule Month of Financial Closing 1 Year of Financial Closin
106. Inputs Used NPV IRR and Payback Summary SENSITIVITY STUDIES After Tax AND TORNADO DIAGRAMS Term 5 7 10 IRR After Tax 23 79 30 36 34 73 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 273 668 2 417 894 4 408 444 a On Equity On Total Capital Investment Payback 2 6 Years 5 7 Years Note that the IRR Summary Table at the top of the Global Input sheet allows the user to specify what IRR period will be monitored in the Pop Up and in the Table 1 IRR NPV summary The third input column of this table is especially important because it specifies the IRR Term that will be used in EconExpert DG s Automated Sensitivity Analyses and Tornado Diagrams Revised 7 14 03 Page 114 EconExpert DG Users Manual Copyright 2001 2005 2 Simplified Inputs The Simplified Inputs Sheet provides a simplification of data entry to be used in the Global Inputs Sheet Inputs are entered in the shaded cells based on Annual Averages Red inputs indicate critical values for which it is highly recommended that input data should be entered Note Not available in Excel 97 Like Table 1 Project Global Inputs this input sheet is organized into sections associated with each class of inputs You can locate a specific input by scrolling through the table You may automatically populate Table 1 Project Global Inputs with entries in this table by selecting UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of
107. Loan commitment fees are calculated based on the undrawn balance Revised 7 14 03 Page 77 EconExpert DG Users Manual Copyright 2001 2005 12 Tables 4 Operating Costs Table 4 provides calculation of all operating expenses and related escalation factors Escalated annual fixed and variable operating expenses are computed in yr based on inputs to Tables 1 and 1C Table 4 is organized as follows The top Section of Table 4 Provides Operating Cost Factors and Escalation Rates including o Planned Hours of Operations o DG Plant Operating Statistics o Escalation Indices o Escalated Operating Costs assuming 100 Load Factor and 100 Ownership Table 4A shown in the bottom section of Table 4 provides Escalated Annual Operating Costs in year based on the capacity factor of the DG plant Itemized operating cost categories provided in Table 4A include Quarterly Fuel Costs Variable Operations and Maintenance Costs Standby Charges Fixed Operations and Maintenance Costs User Defined Expense Categories Entered in Table 1C Expensed Major Maintenance Property Taxes Insurance Payments for an Operating Lease if Applicable Revised 7 14 03 Page 78 EconExpert DG Users Manual Copyright 2001 2005 13 Table 5 Debt Service or Lease Table 5 provides detailed calculations of principal and interest payments on primary and subordinated debt or annual lease payments EconExpert DG lets you choose from
108. Minimum Amc 23 Taxable Losses Cap Account 30 j Depreciation 3 Maintain Cap Account Basis 31 All Figures in 000 _4 None 2 t p f Partner Returns Year of Operation 1 2 3 4 5 38 Year 2009 2010 2011 2012 2013 2014 43 Contributions to Equity 44 45s Additional Equity Contributions 46 Developer s s Other o 55 56 Total Equity Contributions 000s 57 Developer 58 Tax Investor _s9 Other 7 y y 7 60 Sum of Partners Equity Contributions 65 s6 Capital Account Allocation Summary 67 Ownership Based on EOY Capital Accounts Initial Contribution a Develonar an ner an nor an ner an nor an mer an nor A M4 gt Hf Table 1 Global Inputs Table 1C Annual Inputs Table 1P Partner Returns Table 2 Su 4 aja Revised 7 14 03 Page 191 EconExpert DG Users Manual Copyright 2001 2005 1 Partnership Overview and Disclaimer Partnerships are pass through entities and therefore all items of partnership income expense and depreciation are reflected on each partner or investor s separate capital account This is in contrast to the tax treatment of a regular corporation where all items of income expense and tax liability remain at the corporate level Because of the complexities that arise when multiple parties form a partnership or limited liability partnership to own a wind power project CEI provides additional calculations to aide the user in understanding the financial
109. NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpertHELP ENABLE MODEL Se es Table1Startt fe IF OR Title C 22 0 Title S C 15 0 Proforma NOTES SS A SS SS Se SS SS SN SS a a aues Before After Tz Holding Bin tis Not Labled P z z SEER Proforma CEI Commercial Proforma Distribsted een na AA e MEDA Ee ene Bane orrat ai EconExpert DG Proforma 4 0 1495 UPGRADE xIzITable 1 Active Annual Inputs Sheet is Blue Shaded Areas can be based on Historical Data Inputs transferred nok from the Monthly Data Sheet Description Default Inputs j RA TERITFUR NPV IRR ar Term 5 Term IRR After Tar 30 79 36 79 X IRR After Taz NPY After Taz 6 0 Discount Rate to Financial Close Date 2003 1 797 138 3 099 821 5 314 343 NPY After Taz 6 0 Discount in 2003 o On Equity On Total Capital investment A 5 0 Years Proforma NOTES inputs examples and descriptions provided by CEI in the Model and in the User s Manual are provided for exam rranties with respect to the accuracy of such inputs examples or descriptions Switches Selected Taz Treatment Switches Federal State u u Tri Generation waste Heat Used for Chillers j Use 9M1 Economic Stimulus Depreciation dl OperatingLease Carry Forward Tax Losses a Base Year Constant Dollar in Mid Year Month of Financial Closing General Inflation Rate for Revenues amp Expenses Year of Financial Closing Discount Rate NPY x Construction Term mos
110. OE eee 145 E Saving EconExpert DG Spreadsheets 00 cee cesceseceseceseceseeeseeeceeeeseeeaeecsaecsaecsaecsaecsseceseesseeseeeseaeseaeeeneeeaaes 164 1 Saving Fully Functional Copies of the Modelo cee ceeceeceesceeeeeeeseeeseeaeceaeceseceseesseeseeeseeeseaeeeaeeeaaeeeaees 164 2 Creating a Values Only Copy of the EconExpert DG Model That You Can Share with Others Who Don t Haye a Licenses sesin eee e detivsssetes chides vidoes sib dot EE tie Maen aioe a ait is 166 F Sensitivity Analy SeS oirrn seiren e e altel ha dees i e e E a R lal EA E coleets cele Panntbaa E ES 167 G Torn do ia grams eina an e a a Week oe a A ar A Na O ee cates 171 H Customizing EconExpert DG renarena ea nae anes a nea apes eee 176 Appendices ossisscssinectsaveseedoessousuousesosstssesesnsnsiesedes ieoecuuipeicsespsosuensesonessoGsoecnsdeesgeuss Sonusesobbewessassoneesseusasusessstaessbessosynssouses 177 1 EconExpert DG Software License Agreement 00 0 0 cee ceeceeeceeeeeeeeeeseesseesaeceaeceseceseesseeeseesseeseaeeeaeeeaeeenaeenaes 177 A Comparing EconExpert Files and Identify Quantify Differences Between Cases 180 2 Glossary OF Terms ss0cbih dscacteSetidl ci tiscetonbaaechitsdigeets fase Wsnace tice toves tec igeb bade vedt bldnecst salt eesti dedeetoes faceted ivetul seeded 186 VI Special Insert Table 1P Partner Return Calculations ccsccssssssssscssssccssscessscsssecsssscssscssssesssssesees 191 1 Partnership Overview
111. Please note that this data input sheet WILL NOT be used in the proforma unless you select the option to Populate the Global Inputs Sheet using the Transfer Data option described above Revised 7 14 03 Page 66 EconExpert DG Users Manual Copyright 2001 2005 If you select the option to use the default EconExpert values in Table 1 Project Global Inputs the following will be assumed When you use the Simplified Inputs Sheet annual costs amp savings are allocated quarterly The user then has the option to use EconExpert s Default Assumptions for remaining inputs or to substitute their own assumptions Figure 37 EconExpert DG s Default Assumptions Associated with the Simplified Inputs Sheet amp One Tranche of Debt The utility tariff will not change when DG is added No Tax Loss Carry Forward 50 50 Debt Equity No annual changes in Site Requirements or DG Plant Performance All cost and savings escalate at GNP 6 Discount Rate for NPV Calculations 1 75 Interest Rate earned on Escrowed Funds No Demand Ratchets Apply No Forced Outages All Excess Production sold back to utility NO Third Party Sales No Capacity Payments or Thermal Sales to Third Parties Property Taxes amp Insurance are each 1 of Asset Basis No Terminal Value 35 Federal Income Tax Rate The User may override the d items by entering their own values in the Global Input Sheet prior to transferring the
112. Q1 Jan Mar Q2 Apr Jun 9999999 Q3 Jul Sep Q4 Oct Dec Site Displaceable Non Chiller Electric Consumption 1000 kwh period Q1 Jan Mar Q2 Apr Jun Electric Chiller Power Consumption 1000 kwhiperiod Tri Generation s Selected 46 Q1 Jan Mar 47 Q2 Apr Jun s Q3 Jul Sep RE o Q4 0 pr ee eee l 2 49 9 57 58 Site Displaceable Thermal Use 1000 Therms Period 59 Q1 Jan Mar 0 60 Q2 Apr Jun 0 61 Q3 Jul Sep 0 62 9 64 DG Plant and Absorption Chiller Performance AStart Gs e t DD i E EconExper EconExpert DG Tj fi EconE xperDG aj P Microsoft Visual S23 ODB B 11 49PM Figure 40 Screen Shot of Table 1C Revised 7 14 03 Page 72 EconExpert DG Users Manual Copyright 2001 2005 For more discussion on each of the Annual Inputs to Table 1C that override Global Inputs see the section above on Table 1C Project Annual Inputs which starts on page 118 Descriptions of the Annual Inputs that provide you with additional functionality in EconExpert DG rather than overriding a Global Input are provided in this section The it represent information associated with the site WITHOUT DG in operation The shaded cells represent data that is projected for the host s site after installation of the DG project This input data can include information such as the customer s site s expected gas or electric usage gas or el
113. ST have different names AND BOTH MUST BE ENABLED Formulas entered in the Annual Inputs AND Monthly Data Sheets and those you have entered in the yellow tables at the bottom of each sheet will be transferred Global Input Data will be transferred as values The transfer process may take a minute or two depending on the speed of your computer Are you ready to proceed Enter YES to Continue NO to Cancel This is the complete set of instructions for data transfer Important points include e Open the destination model first The destination model is the new version of EconExpert DG that you would like to import data to e Open the source model second This is the version of EconExpert DG that contains the input data that you would like to transfer from Note that the Source Data model MUST have two windows available If it does not an error message will be issued To rectify the error select the Source Model and from the Excel Command Menu select Window Add New Window To initiate the transfer select yes and all input data in Tables 1 1C and Table 3 will be transferred to the new model The source model will be automatically closed after the transfer It can be deleted if desired Revised 7 14 03 Page 52 EconExpert DG Users Manual Copyright 2001 2005 6 EconExpert DG On Line HELP EconExpert DG has three useful On Line Help Features The EconExpert HELP Menu Comments posted in individual cells throug
114. Users Manual V xxx PDF From the CEI Website http www CEInsight com you can download a free copy of the EconExpert DG User s Manual as a PDF file which can be viewed and printed using Adobe Acrobat The file is named EconExpert DG Users Manual V xxx PDF It is possible that you received a previously installed copy of EconExpert DG 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 Page 15 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 or download from the Internet To view the User s Manual and to install EconExpert DG you must first decompress the files If you already own WinZip to do so please use the following steps e Step 1 Copy the original Zip or Exe files to the desired location and sub directory on your C drive Installation of the model MUST be initiated from your C drive If you have received Zip files from CEI and have previously installed WinZip using My Computer or Windows Explorer locate the directory where you copied the files and right click on the Zip files To expand the files select the WinZip option Extract to folder C EconExpert DG Installation File v Your Name and Company and Extract to folder
115. V of 0 means that the IRR and Discount Rate are equal The Debt Service Coverage Ratios DSCRs from the debt sheet are reported DSCR is a common metric used by banks and financing institutions to measure project performance versus debt obligations DSCR s are provided on both a before tax and an after tax basis Debt Coverage Ratio Before tax on the Debt or Lease is defined as the Earnings Before Interest Taxes and Depreciation EBITAD divided by the debt service payment and the fees on the Senior Debt or Lease Coverage Ratio After tax on the Debt or Lease 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 or Lease Payback is a hypothetical calculation of the amount of time in years that it will take for the owner to recover their initial equity investment in the project and or the total capital cost for the facility 17 Table 9 Financials Table 9 provides the Project s Financial Statements including the Income Statement Cash Flow Statement and Balance Sheet These statements are prepared using Generally Accepted Accounting Principals GAAP and are representative of the impacts on the owners Book Financials Since some or all of the revenues associated with the project are based on savings often times the resulting Financial Statements provide an incremental view of how the project would impact the owner s full financial statements Table 9 is orga
116. Years 5 7 Years Revised 7 14 03 Page 33 EconExpert DG Users Manual Copyright 2001 2005 Input Categories for which Sensitivity Analyses can be performed include o Capital Cost DG Plant Operations Demand and Standby Charges Energy Prices Financing Fuel Use or Price Operations and Maintenance Expenses Revenues or Savings 0000000 The Sensitivity Sheet is used to perform the individual sensitivity analyses The Sensitivity Increment specified on the Sensitivity Sheet is the variation or the absolute amount of variation from the current case of the selected variable that is used to perform sensitivity analyses The increment is used to iterate the model over a range of three times the increment running the complete financial analysis for each incremented value and then plotting the after tax NPV and IRR as a function of the incremental variations of the selected parameter For each Sensitivity Analysis a graph will be generated showing you how the after tax IRR and NPV where applicable for your current case will be impacted by variations in the selected input An example graph is shown below Figure 21 Example of Sensitivity Analysis Graph IRR After Tax 10 Years l NPV After Tax 10 Years at 6 0 Discount Rate For additional information on using EconExpert DG s Automated Sensitivities see page 167 Revised 7 14 03 Page 34 EconExpert DG Users Manual
117. age 99 EconExpert DG Users Manual Copyright 2001 2005 xvi Demand Charges for Maximum Metered Power kw mo WITH DG Global Inputs Demand Charges are reflective of the maximum meter reading experienced by the customer during the target period Often times a portion of the customer s bill is based on the maximum power demand that is used either as a monthly average or during a specific on peak period The utility then includes in the power bill a fixed annual Demand Charge for capacity required to support that amount of demand This input is the demand charges that will be paid to the utility in kw mo to ensure firm power to meet the annual load requirements WITH DG Operational When the DG Facility is brought on line the customer should realize a savings in demand charges associated with the fact that as a result of self generation they no longer have as large of a demand requirement If the DG Facility does not operate reliably the savings in demand charges may be reduced or eliminated and a demand ratchet may apply in the succeeding period The calculation of savings associated with reassessment of demand charges is based on the following o If Standby Charges are assessed there will be no reassessment of demand charges or demand charge savings o If there are no Standby Charges the Demand Charges or resulting savings in each year will be assessed on the current quarter s established demand and the current quarter s de
118. al Escalation GNP Real Figure 72 TWID Aggregated Cost of Electric Energy Purchased fm Utility ckwh WITHOUT DG Based on the period energy consumption rates and the associated time of use energy pricing aggregated weight average electric energy prices are calculated on a monthly quarterly and annual basis Annual nominal GNP Real escalation rates can be entered to establish the rate of increase of these prices going forward Results will be transferred to the corresponding section in the Annual Inputs Sheet Please note that the proportional mix of Rate Block energy consumption is assumed to remain constant over the life of the project i e the relative percentages of super peak on peak mid peak and off peak remain constant Revised 7 14 03 Page 151 EconExpert DG Users Manual Copyright 2001 2005 c TW2 The Time of Use Energy Price Wizard DG Facility Now it is necessary to calculate the aggregated pricing WITH the DG Facility operational This is accomplished by tracking the time of use electric energy generation produced by the DG Facility and the offset to electric energy from the use of absorption chillers The resulting energy production is subtracted from the hosts appetite for energy calculated from TW1 to determine the net consumption WITH DG Figure 73 TW2 Time of Use Energy Price Wizard WITH DG Operational Jan June Excerpt
119. al Inputs Standby Charges are a Monthly fee expressed in kw mo that represent new charges to the customer of the utility to ensure that in the event of an outage in the CHP facility the utility will provide firm backup power Normally if standby charges are imposed there are no additional penalties or demand charges paid by the customer even if the DG Facility experiences interruptions in service If the standby charges are not expected to escalate at a constant factor over the life of the project annual standby charges can be entered in Table 1C Project Annual Inputs Non Zero values entered in Table 1 C will override this value in the years that they are entered Projected prices can also be entered in the Monthly Data Table and transferred to the Annual Inputs Sheet using the UTILITIES Populate with Data From option on the EconExpert Command Menu xix Value of Site Uses of Thermal Energy Therm WITHOUT DG Global Inputs This is the quarterly average price of thermal energy gas or other fuel in Therm in Base Year at the site if WITHOUT DG The entered amount will be escalated by the GNP Escalator plus the Real Escalation Factor input to the right These equivalent fuel prices will be used to determine THERMAL SAVINGS associated with offset fuel purchases due to use of waste heat from the DG plant If the quarterly fuel prices do not vary at a constant escalation rate over the life of the project annual fuel prices b
120. al Inputs Table f 7 Revised 7 14 03 Page 64 EconExpert DG Users Manual Copyright 2001 2005 The light blue shaded input cells can be used to enter Historical Data or projected site data WITHOUT DG including tariff data and host demand EconExpert will automatically convert this monthly information to the quarterly format used in Table 1 Project Global Inputs applying escalation from the stated year using the escalation indices in Table 1 This data should be entered in Base Year The Base Year is an input to the Table 1 Project Global Inputs Sheet The light green shaded input cells can be used to enter Projected Data on DG Plant Performance EconExpert DG will automatically convert this monthly historical pricing information to the quarterly format used in Table 1C Project Annual Inputs The values entered in this table should be in current Only the applicable months will apply during the first and last year of the project You may automatically populate Table 1 Project Global Inputs sheet with entries in this table by selecting UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Transfer Historical Monthly Data to the Global Inputs Sheet UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Reference Projected Monthly Data in the Annual Inputs Sheet from the EconExpert Command Menu Please note the following po
121. ales of energy before allocating remaining excess electricity back to the utility Figure 47 Table 1 Project Global Inputs Other Revenues Other Revenues Data Applied Annuall 4 Mos Applied yr 0 11000 Ib hr 2 00 Therms hr Real Escalation Sikw Mo 0 5 1000 b 0 0 Therm Capacity Payments Steam or Hot Water Sales to Third Parties Waste Heat Sales to Third Parties Electric Energy Sales to Third Parties If desired the user may alternatively specify over riding Annual Capacity Payments and Steam Pricing in Table 1C xxiii Variable Operating and Maintenance Costs Global Inputs Variable Operations and Maintenance costs are costs that relate to the operating load and number of hours of operation of the facility Thus these costs will increase or decrease depending on how much energy is produced from the facility Revised 7 14 03 Page 103 Variable O amp M Costs EconExpert DG Users Manual Copyright 2001 2005 Two User Defined categories of Variable O amp M are provided The user can name these categories and the names will be carried into the various tables and charts throughout the model There are also two options for inputting of Variable O amp M costs in each of these categories 1 cents kwh and 2 year at 100 capacity factor Both are expressed in Base Year The calculated annual variable O amp M costs will be the sum of these two entries and wil
122. ample Simplified Inputs Proforma NOTES Inputs examples and descriptions provided by CEI in the Model are provided for example purposes only CEI makes no representations or warranties with respect to the accuracy of such inputs examples or descriptions DGeration Selected Debt Equity Financing or Capital Lease Selected in Table 1 Global Inputs Economic Factors Base Year Constant Dollar in Mid Year General Inflation Rate for Revenues amp Expenses DG Project Schedule Start of Operation MM DD YY _Construction Term mos For Acquisitions enter 0 24 months Max Project Life and Debt Term or Lease Term Years 20 Max Switches Tri Generation Waste Heat Used for Chillers Phase 1 Development Expenses At Risk Costs Annual Performance and Pricing Data Site Requirements Phase 2 Engineering Construction Preoperation Expenses Maximum Monthly Site Electric Energy Demand kw 12 month Average j 2100 Site Non Chiller Displaceable Electric Consumption 1000 kwh yr 12000 Installed Cost of Project Electric Chiller Power Consumption 1000 kwh yr 5000 Other Costs or Credits Site Displaceable Use of Gas or Other Fuel 1000 Therms yr 380 DG Plant and Chiller Performance Tri Generation NOT Selected Net Generating Capacity of DG Plant kw __ 2 000 Waste Heat from DG Available Thermal Use Therms hr 100 0 Soft Costs
123. an be offset from available waste heat and so might be limited by the available amount of waste heat from the Tri Generation Plant This is the average monthly amount of electric energy demand for the chillers in kw which could be displaced by waste heat from the DG Unit i e if absorption chillers replace or offset electrically driven chillers The values entered in each month will be used to calculate the amount of electric energy used by the chillers that can be displaced by use of waste heat from the CHP Facility The coincident demand is the demand that occurs at the same time as the Maximum site demand and so represents that amount of electric chiller Maximum demand that can be displaced by absorption chillers Displaced Electric Chiller Electric Consumption 1000 kwh period Monthly Data These inputs can be used ONLY if the Tri Generation Switch is selected The inputs should reflect the amount of chiller electric energy demand that can be offset from available waste heat and so might be limited by the available amount of waste heat from the Tri Generation Plant This is the total monthly amount of electric power used by the chillers in 1000 kwh month which could be displaced by waste heat from the DG Unit i e if absorption chillers replace or offset electrically driven chillers The values entered in each month will be used to calculate the amount of electric energy used by the chillers that can be displaced by use
124. and closest to the project life o Annual usage rates costs amp savings are prorated quarterly ii Monthly Data Historical and Projected Tariff Demand and DG Plant Performance Data can be entered into the Monthly Data Sheet in 12 Monthly Periods Data on the hosts usage and tariffs WITHOUT and WITH DG as the Tariffs may change as a result of implementing DG and predicted DG plant performance are entered Using this Command Menu feature you can automatically populate the Historical Data to the Quarterly Format used in the Global Inputs Sheet and or you can automatically reference the Projected Data in Quarterly Format in the Annual Inputs Sheet Note that when historical data is transferred to the Global Inputs Sheet that data will be overridden by values transferred to the Annual Inputs Sheet For additional explanation of the Monthly Data Sheet see pages 64 and 135 Revised 7 14 03 Page 48 iii EconExpert DG Users Manual Copyright 2001 2005 The Time of Use Wizard Time of Use Energy Pricing and Demand Pricing can be evaluated using this tool Pricing data from a selected utility s tariff can be entered into the Time of Use Wizard inputs Sheets in block Super Peak On Peak Mid Peak and Off Peak Periods along with corresponding use and demand data to project time of use related pricing Using this Command Menu feature you can automatically populate the resulting aggregated quarterly time of use information to the Quarte
125. and off peak conditions etc during that month and the amount of power used under each of those respective periods Values entered here will be aggregated to quarterly values that can be automatically reference in the Annual Inputs Sheets Demand Charges for Maximum Metered Power kw mo WITHOUT DG Monthly Data Demand Charges are reflective of the maximum meter reading experienced by the customer over the a specified period Often times a portion of the customer s bill is based on the maximum power demand that is used either as a monthly average or during on peak period The utility then includes in the power bill a fixed annual Demand Charge for capacity required to support that amount of demand This input is the displaced monthly period demand charges in kw mo UNDER THE TARIFF THAT APPLIES WITHOUT DG The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet Demand Charges for Maximum Metered Power kw mo WITH DG Monthly Data Demand Charges are reflective of the maximum meter reading experienced by the customer over the a specified period Often times a portion of the customer s bill is based on the maximum power demand that is used either as a monthly average or during on peak period The utility then includes in the power bill a fixed annual Demand Charge for capacity required to support that amount of demand
126. 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 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 License Fees and Term Fees for use of and the term of a license 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 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
127. are entered Since the resulting 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 Drawdown Factors o Monthly Construction Cost Schedule o Cumulative Monthly Construction Cost Schedule The total monthly drawdown during the construction phase is computed as follows 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 Capital Costs and Loan Commitment Fees are expended according to the Drawdown Schedule 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 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 Debt Reserves and Up Front Financing Fees are deposited in the last month of the schedule 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
128. arter Note that the OR indicates that the fuel input can also be entered in Therms Hour as indicated in the next item If heat input is not expected to be constant over the life of the project i e due to performance degradation changes in operating philosophy upgrades to the project etc annual heat input entries can be entered in Table 1C Project Annual Inputs for each quarter Note that if the Heat Input is entered in the next row or in the Annual Inputs Table it will take precedence over this Heat Rate Input Monthly rates can also be entered in the Monthly Data Table viii DG Plant Gross Fuel Input Therms hr HHV Basis Global Inputs As an alternative to entering the heat rate this is the average quarterly gross heat input MMBtu hr based on the higher heating value HHV of the fuel If the plant will be cycled during the year this represents the composite average for the respective quarter If heat input is not expected to be constant over the life of the project i e due to performance degradation changes in operating philosophy upgrades to the project Revised 7 14 03 Page 96 EconExpert DG Users Manual Copyright 2001 2005 etc annual heat input entries can be entered in Table 1C Project Annual Inputs for each quarter Note that if the Heat Input is entered here it takes precedence over the Heat Rate Input Monthly rates can also be entered in the Monthly Data Table ix DG Plant Capacity Fa
129. as values only versions even after your license expires Revised 7 14 03 Page 166 EconExpert DG Users Manual Copyright 2001 2005 F Sensitivity Analyses EconExpert DG is equipped with the capability to run automated sensitivity analyses on a variety of important project parameters Options on the SENSITIVITIES menu include e Tornado Diagrams Tornado diagrams are described in more detail in the next section They illustrate in a horizontal bar chart how the significance of various sensitivities compare to each other e Individual Sensitivity Analyses You can run and print graphs for all of the sensitivity analyses in one batch Depending on the speed of your computer running all of the Sensitivity Cases as a batch should take between 1 and 3 minutes Parameters for which Individual Sensitivity Analyses can be performed include sensitivities of after tax IRR NPV and Payback for the following inputs e Capital Cost e DG Plant Operations o Fuel Savings o Fuel Purchases o Capacity Factor e Demand and Standby Charges e Electric Energy Prices o Savings in Power Purchased from Utility o Revenues from Excess Power Sales to Utility e Financing Operating Lease Monthly Payment Operating Lease Term Interest Rate on Primary Debt Term of Primary Debt Interest Rate on Subordinated Debt Term of Subordinated Debt Percent Owner s Equity e Fuel Use or Price Fuel Savings use of DG Waste Heat Fuel Use Fuel for DG Plant Operation
130. ased on the percent of the year that the plant is in service e Quarterly Performance and Pricing Data This section allows you to enter life of project related historical and projected pricing and DG plant performance data on a quarterly basis Corresponding costs will be itemized in Revised 7 14 03 Page 92 EconExpert DG Users Manual Copyright 2001 2005 the calculations performed by EconExpert DG on a quarterly basis Cells highlighted in BLUE indicate input locations where the user may automatically transfer Historical Monthly Data that has been entered in the Monthly Data Sheet to the Global Inputs Sheet Such data might be available or might be determined from actual monthly electric and gas bills received by the site owner Also note that items where SAVINGS are realized as a result of DG are identified by a and items that result in NEW COSTS associated with the addition of DG are identified by a For additional explanation on transferring monthly data from the Monthly Data Sheet to the Global Input Sheet see page 135 Inputs in the Quarterly Performance and Pricing Data Section are shown in the figure below which illustrates Quarters 1 Jan March and 2 April June The third and fourth quarters are similarly provided to the right in the model The input categories are described in more detail in the text that follows the figure Figure 46 Table 1 Project Global Inputs Quarterly Performance Data Inputs
131. aslnvestor Other Total Initial Investment 6750 2700 Warning Negative Capital Account 74 of Initial Partnership 50 0 20 0 Warning Negative Inside Basis Post Tax NPY 10 0 3 1 a Post T BE 10 0 10 0 G_1 Capital Accounts _2 Profit Share Cap Account 3 Capital Share Basis All Figures in 000 _4 None Whichever mode is selected the custom allocations for each year of the project are set in rows 94 106 At the beginning of each row the percent of initial capital contributed is shown as a baseline If no numbers are entered in these rows the default values are Revised 7 14 03 Page 195 EconExpert DG Users Manual Copyright 2001 2005 these percentages The Taxable Income or Taxable Income Loss values entered in lines 96 98 are also used as the Profit Share values for cash distributions Suspended Losses This model assumes that taxable losses once assigned to a partner will always be assigned to that partner regardless of the value of his capital account If the amount of losses exceeds the partner s basis for that year a Suspended Loss account is created and that excess loss is carried forward until there is sufficient basis for the partner to utilize the loss Tax Credits Production Tax Credits PTCs do not directly affect partners capital accounts The user can set the allocation of PTCs on lines 113 115 on Table 1P Again while this model allows the user to allo
132. ata should be pasted AS VALUES from the source data file or can be linked using formulas e Data will be aggregated to quarterly format and transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet overwriting the current data e If period data is transferred it is probably preferable to ensure that data is transferred for the whole project life up to 20 years 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 Revised 7 14 03 Page 136 EconExpert DG Users Manual Copyright 2001 2005 Otherwise the Global Inputs data will be applied in years where you have not entered data e If desired as an alternative to transferring the data using the macros described above you may set up formulas in the Global or Annual Inputs Sheets that selectively reference the parameters that you would like to model on a monthly basis If you do this the Monthly Data sheet will become an active input sheet to the model by reference to the Global or Annual Inputs Sheets In the next section of the sheet intermediate calculations are performed that show the results of the Monthly Data Sheet and in the lower section of the sheet values are computed that can be transferred to the Global Historical Data or Annual Projected Data Inputs sheets The categories of data that can be entered in the Monthly Data Sheet are Site Electric and Gas De
133. ate the time of use related pricing elements of individual utility tariffs Using this tool in combination with the Table 1C Project Annual Inputs you can break each month down into block pricing periods i e off peak mid peak on peak etc for the purposes of analyzing time related energy and demand charges The Time of Use Wizard is described in more detail in the appendix Project Summary This sheet provides a 1 page summary of key project results You can turn the protection off on this sheet and customize it as desired As long as you stay within the white section of the table you can insert or delete columns or rows of data and the resulting printed report will automatically format to a single 8 1 2 in by 11 in sheet Table 1 Project Global Inputs Table 1 is the PRIMARY input sheet to the model and its use is mandatory 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 Once the Global Inputs Sheet is set up or automatically populated from the Simple Inputs Sheet the user can refine the model by selectively refining any input parameter in the Annual Input Sheet More detailed discussions of Global Inputs are provided on page 86 Revised 7 14 03 Page 56 EconExpert DG Users Manual Copyright 2001 2005 Table 1C Project Annual Inputs Annual Inputs apply only to a given year in the life of the project Yo
134. available for the calendar year Distribute Enough to Pay Taxes Once the project has a positive taxable income partners will have a tax liability Selecting this option distributes just enough cash to cover that tax liability Additional cash distribution can then be determined using the Custom Distributions on lines 161 163 on Table 1P Revised 7 14 03 Page 196 EconExpert DG Users Manual Copyright 2001 2005 Maintain Cap Account In some cases either driven by partnership agreements or creditors partners may have to keep a positive amount in their capital accounts Selecting this option will determine whether or not distributions will lead to a negative capital account based on the given allocations and suspend distributions until the time that the capital accounts will not go negative as a result of the distributions In certain cases the accounts will be negative anyway because of the taxable losses In these cases there will not be any distributions until the accounts are positive Maintain Basis Similar to the above explanation for Capital Accounts in some cases partners must attempt to keep positive basis With this selection cash distributions will only occur up to the amount that will keep the basis positive and in the case that the basis is already negative no distributions will occur until the basis is again positive For both account maintenance options i e maintain capital account and maintain basis there is a Min
135. axes or Insurance the amount is used in each year of the project life and is escalated with the GNP deflator 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 Figure 50 Table 1 Project Global Inputs Property Taxes and Insurance Property Tax amp Insurance Amount yr Factor First Year Cost in 2002 Property Tax yr of Book 1 0 49 077 Insurance yr of Book 5 000 1 0 54 077 Insurance use GNP Deflator for Escalation xxvi Capital Investment Costs Global Inputs Capital Investment Costs are input 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 These costs are broken into two main categories Phase 1 Development Costs Global Inputs These at risk costs are typically incurred prior to financial closing and are treated by EconExpert DG 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 the two entries will be summed if b
136. bal Inputs Sheet or automatically referenced in the Annual Inputs Sheet Revised 7 14 03 Page 142 EconExpert DG Users Manual Copyright 2001 2005 x Standby Charges to Ensure Firm Backup Power kw mo Monthly Data Standby Charges are a Monthly fee expressed in kw mo that represent new charges to the customer of the utility to ensure that in the event of an outage in the CHP facility the utility will provide firm backup power Standby Charges are calculated in the model based on the maximum established generating capacity of the DG Facility over the current quarter Normally if standby charges are imposed there are no additional penalties or demand charges paid by the customer even if the DG Facility experiences interruptions in service Thermal Energy Prices Monthly Data xi Value of Site Uses of Thermal Energy WITHOUT DG Therm Monthly Data This is the monthly price of gas or other fuel in Therm in current for uses at the site WITHOUT DG present i e hot water or steam The entered amount will be escalated by the GNP Escalator plus the Real Escalation Factor input to the right Fuel prices will be used to determine savings associated with the use of waste heat The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet xii Value of Site Uses of Thermal Energy WITH DG Therm Monthly Data This
137. ber Tax Credits should be entered as a negative number Revised 7 14 03 Page 133 EconExpert DG Users Manual Copyright 2001 2005 q After Tax Dividends Annual Inputs The user can enter Dividend Amounts to be withdrawn from the project After Tax as a 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 Revised 7 14 03 Page 134 EconExpert DG Users Manual Copyright 2001 2005 4 Monthly Data Historical and Projected Tariff and Host Requirements WITH and WITHOUT DG and DG Plant Performance Data can be entered into the Monthly Data Sheet in 12 Monthly Periods Values entered here will be aggregated to quarterly values that can be transferred to or referenced by formula in the Global or Annual Inputs Sheets The real power of this Monthly Data sheet is that it can be integrated with populated by time of use data to predict and evaluate the hourly operating characteristics of a facility based on the facilities design parameters and the applicable tariff structure As described below you can automatically populate the Historical Data to the Quarterly Format used in the Global Inputs Sheet and or you can automatically reference the Projected Data in Quarterly Format in the Annual Inputs Sheet Note that when historical data is transferred to the Global I
138. bordinated Debt payments Sources of Funds including revenues from savings 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 19 Table 11 Depreciation Table 11 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 Table 11 includes the following Depreciation for Tax Initial Capital Investment IRS Modified Accelerated Cost Recovery MACRS Schedules Note that the user can also specify custom depreciation schedules in addition to the standard IRS MACRS schedules provided in the model Depreciation for Book Initial Capital Investment o The Initial Capital Investment is depreciated using the Straight Line methods specified in Tables 1 and IC Revised 7 14 03 Page 83 EconExpert DG Users Manual Copyright 2001 2005 20 Graphs Sensitivity 1 4 Four worksheets in EconExpert DG provide plots showing results of Sensitivity Analyses to study how the after tax NPV and IRR of a project will be impacted by incrementing individual inputs to the model The corresponding Sensitivity Cases must be executed from the EconExpert DG Command Menu in order to reflect results consistent with the current case The Sensitivity Increment for each case
139. c This is the recommended setting for EconExpert DG though if you prefer you can later reset the recalculation setting to Manual using the Revised 7 14 03 Page 21 EconExpert DG Users Manual Copyright 2001 2005 Tools Options Recalculation option on the Excel Command Menu If you set recalculation to Manual it will be necessary for you to press F9 Calculate to re enable EconExpert DG after any time you save the model as discussed below Select OK again and you will see a notice about providing copies of EconExpert DG to others Figure 10 Notice on Sharing Copies of EconExpert DG and Reports Generated b EconExpert DG with Others EconExpert SHARING COPIES OF AND REPORTS FROM EconExpert Licensed users of EconExpert are permitted to distribute printed reports and VALUES ONLY electronic copies of EconExpert ONLY if 1 Such reports or copies are generated by EconExpert s Command Menu and 2 They contain the original and unaltered Copyright Notices provided in the model by CEI Inc You may also forward saved electronic copies of EconExpert to others under these same conditions Such FULLY FUNCTIONAL copies can be enabled on other users computers if the Authorized License Codes are provided by CEI and after the License Terms have been accepted by the new user If you have questions please contact CEI Recalculation has been set to AUTOMATIC EconExpert will now be Initialized This is an Impor
140. cate the PTCs in any proportion only your tax advisor can determine whether those allocations are allowable under US tax laws In this model the PTCs are figured into the tax calculations for each partner beginning in row 472 and ending in row 672 Distributions There are several options for cash distributions in this model and these options are explained in more detail below 5 Cash Distributions Options Once allocations of taxable income and loss are established it must be determined how each partner will extract cash from the partnership There are four options for determining the total amount of cash available for distribution The cash available is calculated on Table 11P on the Cash Flow Statement with the Distributions appearing on line 104 Figure 95 Table 1P Partner Returns Cash Distribution Options Table 1P Partner Returns Description REFRESH Menu Project Life Year of Analysis November 7 2005 Total Initial Investment Warning Negative Capital Account of Initial Partnership Warning Negative Inside Basis Post Tax NPV 10 0 Post Tax IRR B Distribute All Cash is ee Accounts Minimum Amount Taable 2 Distribute Enough to Pay Taxes Q f Profit Share Cap Account a Depreciatly amp 3 Maintain Cap Account T Share _1 Share Basis E 4 Maintain Basis All Figures in 000 Distribute All Cash With this selection the model will automatically distribute the amount of cash
141. category is provided for Expensed Major Maintenance Expensed Major Maintenance is costs incurred during annual scheduled outages when refurbishment of the plant is provided If partial year operations occur in the first or last year of the project the resulting Fixed O amp M costs discussed above will be prorated These costs are also expressed in Base Year A Real Escalation factor is provided which is ADDED to the GNP Escalator to arrive at the effective or Nominal escalation for that component For additional information on escalation see page 90 Figure 49 Table 1 Project Global Inputs Fixed O amp M Fixed O amp M Costs Project Labor I 20 000 yr 0 0 Other Fixed O amp M i 5 000 yr 0 0 Expensed Major Maintenance i 30 000 1 yr Revised 7 14 03 Page 104 EconExpert DG Users Manual Copyright 2001 2005 xxv Property Taxes and Insurance Global Inputs Property Taxes and Insurance can be individually input in Table 1 as amounts in year and as a Factored amount if both entries are used they are summed as follows The Factor for estimation of life of project yearly Property Taxes and Insurance is the of estimated valuation of the Asset based on an assumption of straight line depreciation over the specified project life As the Asset is depreciated and the valuation declines the annual Property Taxes and Insurance will decline If a amount is entered for Property T
142. cember On Peak eae ee Mid Peak 245 Mid Peak Off Peak Monthly Time Related Demand Charges for June ESSEE a Q1 Time Related Demand Charges 0 Q3 Time Related Demand Charges 9 975 Q2 Time Related Demand Charges 3 325 Q4 Time Related Demand Charges Off Peak Annual Time Related Demand Charges 13 300 Figure 79 Time related Demand Charge Wizard Site WITH DG Sections of this table include e Base Year and Start of Operations It is necessary for the Time of Use Wizard to be fully synchronized with the case modeled in the Global Inputs Sheet and so these values are determined from entries to the Global Inputs Sheet All escalation calculated by the Time of Use Wizard will be from the Base Year Revised 7 14 03 Page 160 EconExpert DG Users Manual Copyright 2001 2005 Rate Block A Rate Block or Time of Use Period corresponds to the time interval over which a certain pricing structure applies These default Rate Blocks i e Super Peak On Peak Mid Peak correspond to periods when rates will make step changes due to variations in system wide demand The names for these blocks are specified in Table TW3 Based on the applicable tariff there will be a characteristic number of hours that typically apply to each Rate Block in each month For example if the On Peak period is from 10 am 4 pm on weekdays in the month of January this would typically represent 6 hours day x 5 days we
143. cense Authorization Screen Yes No Econ Expert LICENSE AUTHORIZATION Do you want to continue by entering the Authorized License Extension Code provided to you by CEI If you have contacted CEI to obtain the Extension Code select YES You will then be prompted by the following screen Figure 3 Extension Code Screen Econ Expert Authorized License Extension Maximum 4 Enter Authorized Extension Code Provided by CEI Five 5 Character Segments The Code is Case Sensitive and MUST match exactly 5 Cancel Revised 7 14 03 Page 16 EconExpert DG Users Manual Copyright 2001 2005 Enter the code provided to you by CEI The License Extension Code is comprised of five sets of 5 Character Case Sensitive Segments each separated by a single space THE CODE IS CASE SENSITIVIVE AND MUST MATCH THE AUTHORIZED CODE EXACTLY IF IT DOES NOT MATCH YOU WILL BE PROMPTED UP TO 3 TIMES FOR THE CORRECT CODE After the correct code is entered if the model was transferred by someone else you will see the following screen Figure 4 Enter User Name for New License Econ Expert ENTER USER NAME to Re enable License 4 Please Enter the User Name you would like to use 8 OK Characters Minimum OK Your First and Last Name is an acceptable choice Canca Enter your User Name usually your First Name and Last Name The User Name that you enter must be at least 8 characters long The name you enter will appear on th
144. ceseecsseesseeeseeseeeseneeeaes 70 Figure 39 Screen Shot of Table 1 Project Global Inputs 00 cece cee ceceseneeeeeeseeeseecsaecsaecsaeceeseeeseeeseaeesaeeeaaeeeaes 69 Figure 40 Screen Shot of Table 1C Project Annual Inputs cece eecceeseeseeeseeeseeesaecaaecaeeseeseeeseneseaeeeaeeeaaeenaes 72 Global Inputs Figure41 Screen Shotof Table a morie aicctsssycei iresten eike ues shacauies soe dadsetts a ie oaa eeann eee a deesta 86 Figure 42 Switches ernearen sis a estas A heeded one N Boies Nate he dees inte eet hen ees 90 Figure 43 GNP Escalation Rate and Real Escalation Rates 0 0 ee eeeeeceeseeeseeeseeeeeceseceaeceseceseeseceaeesseeeeneeeaes 91 Figure 44 Edq ity and Debt Percentages cie cesta teuiieeieiestecctpteescanitinecan le Ged edi vlge ad E nE A RSi 91 Figure 45 Project Scheduleriin i ea A EE E A E tore es ween Labi es 92 Figure 46 Quarterly Performance Data Inputs ce cesceseceseceseceseeeseeeseeeceeesaeeeseceaecsseceseceseeseeeceseeeneeseeeseneeeaes 93 Fisure47 Other Revenis ainei olte tases Si e rele teb wae eet e r aa E E ea 103 Fisure 48 Variable O amp M ieccisauii eens irie eea EEEE EE E A EREE AE ER E EE AE E 104 Pigure 49 Fixed O amp M oirin ia e i E E E SA TA TT A a T E 104 Figure 50 Property Taxes and Insurance ussterotnieiie i i a a i a a e eia a 105 Figure S1 Development Costs pse scia dea koneen inan ae e e e e erra a aaae r A ei e a atei 105 Figure 52 Engineering and Constru
145. changes individual inputs Tornado Diagrams illustrate how the NPV or IRR of the current case will be impacted by individually incrementing multiple inputs Note You can also construct your own Payback Tornado Diagrams Each of the respective Tornado Diagrams are generated by varying the inputs for the life of the project based on inputs to either Table 1 or Table 1C You can specify the term in years of the IRR and NPV analyses that are used in the Tornado Diagrams 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 tile IRR TERM FOR SENSITIVITY STUDIES as shown the Figure below Figure 86 Inputting the Term of Sensitivity Analyses or Tornado Diagrams IRR TERM FOR NPV IRR and Payback Summary SENSITIVITY STUDIES NoAnnualinputs Used After Tax AND TORNADO DIAGRAMS Term 5 7 10 IRR After Tax 23 79 30 36 34 73 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 273 668 2 417 894 4 408 444 x On Equity On Total Capital Investment Payback 2 6 Years 5 7 Years Tornado Diagrams show respectively how the after tax IRR and NPV will be impacted by changes in inputs to the program that fall into the following classes e Capital Debt and Equity Related Inputs Capital Investment Cost Operating Lease Payment Operating Lease Term Owner s Equity Interest Rate on Construction
146. cify the amount in decimal fraction 0 100 10 0 to be depreciated in each year such that the total sums to 1 000 User Defined Depreciation Schedules in Table 11 Depreciation MACRS Mid Year Convention Capture balance in last year of life if Proje 3 Year 5 Year 7 Year 10 Year 15 Year 20 Year User Defined in Table 11 User Defined in Table 11 xxxii Income Taxes and Investment Tax Credits Global Inputs This is the area in Table 1 where the user specifies the tax rates to be applied for Federal and State Income Taxes State Income Taxes are treated as a deduction for the purpose of estimating Federal Income Taxes You may also customize the annual Federal and State Tax rates in Table 1 Annual Inputs Revised 7 14 03 Page 112 EconExpert DG Users Manual Copyright 2001 2005 The user may also select an Investment Tax Credit to be applied towards Federal or State Income Taxes The Investment Tax Credit ITC is calculated as a percentage of the project capital costs If the Investment Tax Credit is selected the total annual depreciation basis for Cash Tax purposes should be reduced by the amount of any Investment Tax Credit that is applied Figure 58 Table 1 Project Global Inputs Income Taxes and Investment Tax Income Taxes and Investment Tax Credits Income Tax Rate Credit Investment Tax Credit Federal Income Tax Rate 35 0 0 0 z State Income Tax Rate 5 0 0 0
147. ction Phase Costs csscesscssscsssceseceseceseeeseeeseecsaecsaecsaecaecsaeenseeeeeeseeeneeeees 107 Figure 53 Salvage Value at the End of the Project Life eeeeneeeeseeseeseeesssersssrssrssresrerresserrrsserressrenresresresrresee 108 Figure 54 Financing Terms nennen a S a e A E aa a E R T 109 Fig re 55 Operating Lease renosa a a a dsb Eare E tank ea a EE E TESEO EE E NE 111 Figure 56 Sources of Capital Summary oha er eecceecsecesececeeeeessaeceeaeeceeeeeceeeesaecseaceceeeeeaecseaaeceeneeeesaecseaaeceeneeesas 111 Figure 57 Depreciation for Book and Cash ou eee eeeesseesecsseceseceseceseceseeeseceseeeseeseaeeeaeesaeesaeecaaecsaesseeeseeseeeeneeees 112 Figure 58 Income Taxes and Investment Tax Credit cee eeecsecsecsseceseceseessneeeaeeeaeesseeeseecaaecsaecsaecneesseesseeeees 113 Fisure 59 The IRR GUESS oieee h A eneee EEA doe ein claeet tanec e Masel iste A lee ieee Mave esc 114 Simplified Inputs Figure 60 EconExpert DG s Default Assumptions Associated with the Simplified Inputs Sheet 116 Figure 61 The Simplified Inputs Sheet asi sayrni enian aenn aitite anie eS 117 Annual Inputs Figure 62 Screen Shot of Table 1C Project Annual Inputs ceecesceseeeseeeeeeeeeeeeaeeeaeeaecsaeesseeeseeeseeeneeeees 118 Figure 63 General Inflation Rate GNP for Revenues and Expenses eeeeceeseeeseeeseeeeeeeeceaecaeceseenseenseeees 121 Figure 64 Forced Outage Rate niron eeter aa E a a e e e adaa a aenea
148. ctor in Each Quarter Global Inputs This is the percentage of the potential plant output that will occur during each quarter accounting for number of hours in service and level of operation when the facility is operated For example if the plant will be operated at full capacity during 50 of the hours in the period this entry would be 50 Similarly if the plant were to be operated at 50 capacity for the whole period the entry would also be 50 Annual Inputs can be entered in the Annual Inputs table Monthly rates can also be entered in the Monthly Data Table x Maximum Coincident Electric Chiller Demand Displaced by Waste Heat kw Global Inputs These inputs are applied ONLY if the Tri Generation Switch is selected The inputs should reflect the average each of the coincident peaks that can be offset from available waste heat over the three months in the quarter The result might be limited by the available amount of waste heat from the Tri Generation Plant This is the maximum quarterly demand for the chillers in kw which will be displaced by waste heat from the DG Unit i e if absorption chillers replace or offset electrically driven chillers The values entered in each quarter will be used to calculate the amount of electric energy demand for chillers that can be displaced by use of waste heat from the CHP Facility The coincident demand is the demand that occurs at the same time as the Maximum site demand and so repr
149. d The figure below shows an illustration of the Site Energy Consumption without DG input table The light blue shaded cells in this input table provide locations for data entry The yellow shaded cells represent locations where CEI has provided computational logic which the user may override if desired Figure 70 TW1 Time of Use Energy Price Wizard Site Energy Consumption and TOU Prices WITHOUT DG TW1 Time of Use Energy Price Wizard Site Energy Consumption and Prices WITHOUT DG SCE TOU 8 Time of Use General SCE TOU 8 Time of Use General Service Service Large Effective April 1 2002 Large Effective April 1 2002 Updated by WITHOUT DG pescription Updated by CEI July 14 2003 Note Description GE July 14 2003 Note See Simplifying See Simplifying Assumptions Assumptions This data must be This data must be entered inthe Giobat Base Year 2003 peor jentered inthe Global Base Year 2003 jarria 1170103 Inputs Sheet Inputs Sheet 2300 Gniler Load 400 Capacity Factor Host s Total Host s Total Electric Energy Hours in Each Non Chillier Electric Appetite for Non Chiller Electric Chiller Appetite for Price WITHOUT Rate Biock from Use Chiller Use Electric Energy WITHOUT 0G Use Use Electric DG 1000 kwh 1000 kwh 1000 kwh gregated Values for June h ectric Energy Price oc lectin Q1 Jan Mar 777 I Jul 977 4 951 G2 Apr Jun
150. d by a bold red line Column 1 Switches Economic Factors Equity and Debt Ratios Project Schedule Plant Capacity Heat Rate and Fuel Type Quarterly Data o Historical Information on the Users Electric Gas and Chiller Use o Predicted DG Plant Performance o Electricity Pricing o Gas Pricing Other Revenue Sources Variable Operating Costs Fixed Operating Costs Property Taxes and Insurance Column 2 Investment Costs o Phase Project Development o Phase 2 Engineering Construction and Start up o Soft Costs o Plant Salvage Value Revised 7 14 03 Page 70 EconExpert DG Users Manual Copyright 2001 2005 Column 3 Construction Financing Permanent Financing o Primary Debt or Capital Lease Structure o Subordinated Debt Structure Operating Lease Structure Sources of Capital Summary Depreciation Income Taxes and Investment Tax Credits The individual Global Inputs are discussed in more detail starting on page 86 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 To view the comments first enable them from the EconExpert DG Help Menu and then place the cursor over the red triangle on the corner of the respective cell PLEASE NOTE Cost premises are input to Table 1 Project Global Inputs in BASE YEAR This means that the cost and revenue entries to Table 1 will be escalated by
151. d loan term that 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 Revised 7 14 03 Page 60 EconExpert DG Users Manual Copyright 2001 2005 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 EG Microsoft Excel EconExpert DG Proforma 4 0 1577_xls 1 la x F File Edit view Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL 8 X k Shaan eeay Be BB Slo a ol Z Ob 4 65 QAE E A P conditional Formatting Arial gt is A aje m i hil B o ta 528 mS S tae CheckSheetS v fe efault Case l Proforma Status Active and Stored Input Data Sheets Active Global Inputs Case Description A Default Case Global Inputs Stored in Holding Bin 1 Case Description Not Labled Active Annual Inputs Case Description Not Labled Annual Inputs Stored in Holding Bin 3 Case Description Not Labled Active Data Conversion Sheet Case Description Example Data Conversion Inputs Data Conversion Holding Bin Case Description Not Labled alances Inputs Checks Balance Sheet Check Table 11B Sources and Uses Check Table 12 Custom Construction Drawdown
152. dded to the Excel Menu Bar each time you open the model and will be deleted each time you close EconExpert If Windows should lock up when EconExpert DG is open the EconExpert DG Command Menu may be present when Excel is reopened even though EconExpert DG is not If this occurs open EconExpert DG without any other spreadsheets opened Then close EconExpert DG and any extraneous menus will be deleted The six options provided on the EconExpert DG Command Menu are NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL The Command Menu appears at the top of the EconExpert DG screen as shown below The various options in the Command Menu are described following the Figure Revised 7 14 03 Page 29 EconExpert DG Users Manual Copyright 2001 2005 Figure 19 The EconExpert DG Command Menu oso e o pert DG Proforma V4 0 1495 UPGRAD laj x Oe aa S6av sBB S o 21 Z B 0 B Arial 138 A s B z u 2 B B s x a Sm V Am a File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpertHELP ENABLE MODEL ax Table1Startt fe Click Here to REFRESH EconEzpert DG Menu Table 1 Section 1A GLOBAL INPUTS CACERCEI ProformatCE Commercial ProformatDistributed Green Shaded Areas Indicate DG Project Inputs Name of File Generation EconEzpert DG Proforma 4 0 1495 UPGRADE zis Table 1 X
153. demand and DG plant performance data can be entered into the Time of Use Sheet in Rate Blocks during each month These data entries will be then be aggregated into quarterly equivalents that can be transferred to the Annual Inputs Sheet or referenced by formulas in the Annual Inputs Sheet for application in the model The Time of Use Wizard has two primary sections which are identified by the border shading that outlines each of the respective tables The sections are Seer ike cea BI CLO ioe Am CAME Dark Blue Border o TW1 Time of Use Energy Consumption Rates at the site WITHOUT DG Monthly and Quarterly Non Chiller Consumption Displaceable 1000 kwh mo Monthly and Quarterly Electric Chiller Consumption Displaceable 1000 kwh mo Total Monthly and Quarterly Electric Consumption Displaceable 1000 kwh mo Aggregated Monthly and Quarterly Energy Prices c kwh o TW2 Time of Use Energy Consumption Rates associated with the DG FACILITY Generator Operation Displaced 1000 kwh mo Chiller Operation Displaceable 1000 kwh mo Aggregated Monthly and Quarterly Energy Prices c kwh Dark Purple Border o TW3 Time Related Demand Charges at the site WITHOUT DG Maximum Demand by Rate Block kw Demand Rates by Rate Block kw mo Annual Time Related Demand Charges year o TW4 Time Related Demand Charges at the site WITH DG Maximum Demand by Rate Block kw Demand Rates by Rate Block kw mo Annual Time Related Demand Charges year R
154. ding Bin This option allows you to recover the copy of the Annual Input Tables that has been previously saved When you RESTORE the contents from a Holding Bin the current contents of the Active Inputs Sheet are overwritten EXCHANGE the copy of the Active Annual Input Table with the copy that has been previously saved in the Annual Inputs Holding Bin This option allows you to swap the copies of the input table that has been previously saved with the active Table 1 Project Global Inputs Sheet When you EXCHANGE the contents with a Holding Bin the current contents of the Active Annual Inputs Sheet are saved in the Holding Bin and the current contents of the Holding Bin are written to the Active Annual Input Sheet Neither is lost RESET Annual Inputs to 0 s This option clears the Annual Inputs Sheet of all inputs For the Monthly Data Sheet SAVE a copy of the Active Monthly Data Sheet to the Monthly Data Holding Bin This option allows you to save a copy all of the inputs in this sheet and then to make modifications to the respective inputs without losing the saved sets of inputs When you SAVE the contents to the Holding Bin the current contents of the Holding Bin are overwritten RESTORE the saved copy of the Monthly Data Sheet that has been previously saved This option allows you to recover the copy of the Monthly Data Table that has been previously saved When you RESTORE the contents from the Holding Bin the current contents of the
155. e EE 78 13 Table Debt Service Or LCase o arai arae e A AAPA EE EAE AAAA RATAA AAR ETEA aRar ieni 79 14 Table o Reynis S amp S avin Ose oore vers sede agen A A E Aloe ele eet E AEE N ees 81 15 Table 7 Cash BOW ereere reni e aeneae eee eee A Aas ea r rE EEAS E E ree OE 82 16 Tables RoS o an ea TA NARAR eee lee Sa I eee 82 17 Table 9 Pimanc1als aerer erie esae i o r e EE RAEE in AE RE AEREE EENE E EER ont taah ees 82 18 Table 10 Ce nts per KWD lerni etare a eae dal Asai ae eee neil inna eee 83 19 Table Ti Depreciation emesen iera e Mirada hh aise eae dace creates ee eet 83 20 Graphs Senisitivaty Pes ccccceeehsccdtittaccecsed assests eiei a locbanehdede va Seaeds dlocecab bite EEE EE EEE E aeiee 84 21 Graphs Tornado Iirsiet amita cutee Soke ia e te og NESE a E bat gate e e acetals Miaka EE A a e Mare shat latte 84 22 Graphs Current Case 6 T ririn ir EE dees E EOE AEE REEE E RE E TE E E e 84 Revised 7 14 03 Page 6 EconExpert DG Users Manual Copyright 2001 2005 D Inputs to the EconExpert DG Model vreor retre e a e e i e Eae a EEn 85 1 Discussion of Individual Inputs to Table 1 Project Global Inputs ssseeeeeseeeeseessesressssreesrsreesesrresrrsrssresresrs 86 2 Simplified Inputs cierne na See aac i a se A a a ES Leics 115 3 Table 1C Project Annual Inputs erise e E S a E E Aa a E 118 4 Monthly Data eei a acl e a A N E areca ee eile anid AAEE EAA ERES 135 5 TEU sE W a sess EE T igh ce A E hh tad vee ies ah veh see de eb
156. e Program Greeting each time you open EconExpert DG After entering your name select OK and the following screen will appear Figure 5 Enter Company Name for New License Econ Expert ENTER COMPANY NAME X Please Enter the Name of the Company you work for Cancel Enter the name of your Company This Company Name will appear on all printed reports generated by the model After entering your Company Name select OK You will then see the following greeting acknowledging successful extension of the license Figure 6 EconExpert DG Greeting Screen EconExpert 3 0 273 Copyright 2001 2002 CEI Inc All Rights Reserved x Welcome Steve Provol of Competitive Energy Insight Inc The current Date is 05 27 2002 Your License is valid until 04 25 2003 Copyright Notice EconExpert is protected by copyright law and international treaties Unauthorized use modification reverse engineering reproduction or distribution of EconExpert 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 Select OK and EconExpert DG will initialize and be ready for use Other previously saved copies of EconExpert DG should perform normally during the new license term Revised 7 14 03 Page 17 EconExpert DG Users Manual Copyright 2001 2005 Ill System Requirements EconExpert DG is a Microsoft Excel spreadsheet that has been complemented with
157. e can be completed you must accept the terms of the License Agreement the Agreement below by pressing the ACCEPT button at the end of the Agreement Ff do not accept the Agreements terms the Econ Expert Model will not tion rly I 7 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 8 and packaging if applicable 1 Description of the Model The Econ Expert Financial Model the Model is a spreadsheet designed to assist users with the financial analysis of 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 9 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 M 4 gt h License Title f Status Z Sensitivities f Project Summary MonthlyData
158. e input changes have occurred in the TARGET file relative to the REFERENCE file Revised 7 14 03 Page 181 EconExpert DG Users Manual Copyright 2001 2005 b Feature 2 You can compare ALL OF THE SHEETS quantifying the magnitude of the delta changes between two cases This Macro works only between IDENTICAL VERSIONS of EconExpert DG This procedure allows you to Compare and Quantify Differences between two different EconExpert DG 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 compared each respectively activated in one of the files 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 on an ORANGE BACKGROUND and the amount of the difference between the two cases either positive or negative is quantified PLEASE NOTE THAT THIS IS A MEMORY RAM INTENSIVE PROCEDURE IT IS RECOMMENDED THAT YOU CLOSE OTHER APPLICATIONS AND SPREADSHEETS BEFORE IT IS INITIATED The procedure will involve four spreadsheets e The Target EconExpert DG is the model that you want to identify the changes in o The Target model MUST be opened FIRST e The Reference EconExpert DG Model is the model that you want compare changes against o The Reference model MUST be
159. e model 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 Forced Outages User Defined Revenue Sources 6 Categories that you can define User Defined Expenses 6 Categories that you can define Additional Tax Deductions Additional State Taxes and Additional Federal Taxes Each of these is noted in Table 1C All of the other inputs will override Table 1 Inputs in AND ONLY IN the years that values are entered in Table 1C If Annual Inputs are entered 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 eee Column C and the corresponding inputs will be reformatted to If there are no entries in a row then a red 0 will appear The corresponding input to Table 1 will also be reformatted to Bold Red and a red the warning Annual Inputs will appear next to the corresponding input in Table 1 This advises you that an Annual Input value has been entered and that the corr
160. e 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 can 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 If desired you can create 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 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 Values Only file to a new name These Warnings are to ensure that you don t accidentally overwrite your original copy of the Fully Functioning model Please be aware that under the terms of the Software License Agreement all printed reports and copies of EconExpert DG must contain the original copyright notices If you purchase a subscription to the EconExpert model any copies of the model that you save will be recoverable
161. e yellow free form tables and holding bins and returns all of the input sheets to their original settings Revised 7 14 03 Page 42 EconExpert DG Users Manual Copyright 2001 2005 d Table Viewing Format Selecting this option will allow you to change the format of the Tables in the model The options include e Freezing Titles and Unfreezing Titles 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 e Restore Original Formats to Input Sheets This option restores all of the original formatting to the Time of Use Wizard Simplified Inputs Monthly Data Global Inputs and Annual Inputs Sheets including all special and conditional formatting set by CEI Use this feature if you have accidentally or intentionally changed an input cell format and would like to return the model to its original settings e Zoom Settings EconExpert DG 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 DG 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 o
162. eceseceseesseeeseesseeeaaeenaes 40 Figure 27 EconExpert DG s Default Assumptions Associated with the Simplified Inputs Sheet 50 Using the Model Figure 28 Instructions for Data Import Between Copies of EconExpert DG 0 cece cescceseceseceneceeeceseeeseeeeneeeaes 52 Figure 29 Example of EconExpert DG s On Line Help Comments cece esceesesseceseceeeceseeseeeeeeeeeaeeeneeeaeeenaes 54 Figure 30 EconExpert Worksheet Tabs es icciitcesceesecadeeessccauetseccatetyyscsuet baveSesbsbiceeer enlaces E Ea E a Eae 55 Figure 31 EconExpert License Agreement eeseseeseeeeeseesrestesrestesestesestessesttsstestestestestssteetestentesseestestesessesseeet 59 Figure 32 TitleShe et eeri r a AE EERE EE A TENA EEE N E A ENNET TT 60 Fis re 33 Status Sheet hen pe eaea a ana seein ETE r i ihe eet Ma EE eee te 61 Figure 34 Sensitivities Sheet sorrette iee e a TE hatte des pata ved A E e E E TE EE Ee NS 62 Figure 35 Pr ject Summary Shetten oier e a e E EE aede NEE a aai Ea qosrtas2esecteabaeestes 63 Figure 36 The Monthly Data Fable ri sisted itesGieceilonke ks ote Hanlon ean E ah e E a a 64 Revised 7 14 03 Page 8 EconExpert DG Users Manual Copyright 2001 2005 List of Figures Using the Model Continued Figure 37 EconExpert DG s Default Assumptions Associated with the Simplified Inputs Sheet 67 Figure 38 The Simplified Inputs Sheet ce eee cssecsecesecsseeeseeeseeesaeeeseeeseesaecaecsaecsaecssecse
163. ected Monthly NET Capacities can also be entered to and transferred from the Monthly Data Table vi Waste Heat from DG Available For Non Chiller Thermal Use Therms hr Annual Inputs This is the rated NET plant waste heat in therms hr 100 000 Btu hr in each quarter This includes applicable steam or hot water applications Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear and will be used to estimate savings associated with the displacement of purchases of natural gas or other fuel Revised 7 14 03 Page 123 EconExpert DG Users Manual Copyright 2001 2005 If the amount of waste heat available from the DG Plant is greater than the amount of thermal energy that can be displaced at the site the excess waste heat can be sold to a third party or will be vented If the facility uses absorption chillers the heat requirements for the absorption chillers should NOT be included in this input Projected Monthly rates can also be entered in the Monthly Data Table and the aggregated values can be transferred to the Annual Inputs Sheet vii DG Plant Gross Fuel Input Therms hr HHV Basis Annual Inputs As an alternative to entering the heat rate in the Global Inputs Sheet this is the average quarterly gross heat input MMBtu hr based on the higher heating value HHV of the fuel If the plant will be cycled during the year this repres
164. ectric pricing electrically driven chiller operation etc or DG Plant Parameters Data populated from the Projected Data in the Monthly data sheet will be transferred into this sheet Table 1C is Range Protected allowing you to enter data ONLY into specified blue shaded Input cells Table 1C is organized into sections associated with each class of Input Categories Input Categories are organized with their related inputs listed in rows under that category The columns to the right in Table 1C each represent a year in the life of the Project with Column F used for the first year of the project life You can locate a specific Input Categories in Table 1C by either scrolling through the table or by using the NAVIGATE Feature on the Command Menu Non zero inputs to Table 1C will be reformatted by the model to l Individual input titles in Table 1C appear on the left of the table followed by the Input Indicator and notes about the group of inputs On the right side of the table shaded cells provide locations for inputs of annual data starting in the first operating year of the project life Table 1C is organized in the following sections Escalation Annual GNP Deflator Quarterly Performance and Pricing Data o Site Electric Demand and Gas Use WITHOUT and WITH DG o DG Plant Performance o Absorption Chiller Performance o Tariff Data WITHOUT and WITH DG Forced Outages Estimates Other Revenues DG Plant Operations and Maintenance
165. ed Demand Charge in mo quarter and year Aggregated Energy Price in Each Period c kwh Based on the Applicable Tariff the user may enter the Time of Use Energy Prices during each period WITHOUT DG The model will then weight average the pricing and corresponding consumption rates to produce weight averaged or aggregated monthly quarterly and annual energy prices Revised 7 14 03 Page 158 EconExpert DG Users Manual Copyright 2001 2005 Figure 78 TW3A Projected Time related Demand Charges WITHOUT DG TW3A Conversion of Time of Use Energy Prices to Monthly and Annual Data Sheet Formats Start of DG Operations hidis Projected Time Related Demand Charges WITHOUT DG Month Year Base Year iS EA ee ES Annual Escalation GNP Real January February March April Ma June Jul August September October November December Q1 Jan Mar Q2 Apr Jun Q3 Jul Sep Q4 Oct Dec Annual Table TW3A provides projections of the aggregated monthly quarterly and annual Time Related Demand Charges WITHOUT DG based on maximum energy use during each Rate Block and the applicable fees entered and calculated in Table TW3 above Annual nominal GNP Real escalation rates can be entered to establish the rate of increase of these fees going forward Results will be used in combination with the corresponding fee WITH DG Operational to calculate the
166. ed 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 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 Model 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 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 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
167. ed period If electric energy consumption for chilling is expected to change or is not expected to change at a constant rate over the life of the project annual electric energy usage rates can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu xii Absorption Chiller Capacity Factor in Each Quarter Based on Maximum Global Inputs This is a calculated value and represents the capacity factor of the chillers relative to the annual Maximum xiii Cost of Electric Energy Purchased from Utility c kwh WITHOUT DG This is the value of displaced electric energy which the DG facility will displace expressed in cents kwh This is the quarterly Weight averaged or aggregated power price based on the amount of power displaced during each period at the corresponding time of use rate If needed this aggregated value can be estimated using the Time of Use Wizard The quarterly average power price should reflect the cost of power purchased during on peak mid peak off peak conditions and super off peak periods etc during that month and the amount of power used during each of those respective periods If the cost of electric energy purchased from the utility is not expected to be constant or is not expected to increase at a constant annual rate annual Electric Ene
168. eeaeeenaes 25 Figure 16 Notice Installation is Completed Do You Want to View the Tutorial 0 0 ceeceeceeeeereeeneeenees 26 Figure 17 The EconExpert DG Title Screen ceccesecsseceseceseceseeeseeeseeseneesseeeseecsecesecsseeseeeseeeeseeseeeseeeeeneeeaes 27 Figure 18 First Window in the EconExpert DG Tutorial 0 0 0 eeeeeeeeeeeeeeeeeeeeseecsaecaeceaeceaecnaeesseseaeesseeseneeeaee 28 Figure 19 The EconExpert DG Command Menu ceecesceseceseceseeeseeeeeeeeeeesaeecseecaaecaaecaecaeceaeesseesseeseeeseeeenaes 30 Sensitivities and Tornado Diagrams Figure 20 Inputting the Term of Sensitivity Analyses or Tornado Diagrams ces ceeceeceseeeeeeeseeeeeeeeseeeneeenees 33 Figure 21 Example of Sensitivity Analysis Graph cei ceeceseceseceseeeseeeseeeseeesaeeeseecaaecsaecsaecaeceaeesseeeseeeseeeaaeenaes 34 Figure 22 Inputting the Term of Sensitivity Analyses or Tornado Diagrams ce ecescesceeeeeeeeeeeeeeeeeeseeeneeeaaes 35 Figure 23 Tornado Diagrams User Input Form ceecesecsseceseceseesseesseeecaeesaeeeseecaaecsaecsaecnseceaeesseceeeeaeeeaeeenaes 36 Figure 24 Sample Torn do Diagram cc eiciilecciictiiiesceeie seni neve Ea Va a ein teased Gears 37 Pop Ups and Holding Bins Figure 25 Pop Up NPV IRR and Payback Summary 0 0 0 ceicesceecesecsseeseeeeseeeeaeecseecsaecsaecsaecsaecsaeesseeeseeeseeeaaeenaes 39 Figure 26 Example Display of Current Contents of Holding Bins eee eeeeseeseecseecnseces
169. eet and Projected Data in the Green Shaded cells can be transferred to the Annual Inputs sheet by executing the UTILITIES Populate with Input Data option on the EconExpert Command Menu Revised 7 14 03 Page 138 EconExpert DG Users Manual Copyright 2001 2005 DG Plant and Absorption Chiller Performance Monthly Data e Net DG Plant Electric Generating Capacity kw Monthly Data g a Savings and Standby Charges will be calculated as it represents the incremental demand reduction at the site or the incremental amount of stand by power that the site will require if the DG Plant experiences an unscheduled forced outage Net Electric Production will be calculated based on the net capacity and the capacity factor If the Net Capacity is not expected to be constant over the life of the project annual values can be entered or calculated in Table 1C Project Annual Inputs Waste Heat from DG Available For Non Chiller Thermal Use Therms hr Monthly Data This is the rated NET plant waste heat available from the DG Facility in therms 100 000 Btu hr in each month If the amount of waste heat available from the DG Plant is greater than the amount of thermal energy usually as hot water or steam that can be displaced at the site the excess waste heat can be sold to a third party or will be vented DG Plant Gross Fuel Input Therms hr HHV Basis Monthly Data As an alternative to entering the heat rate in the Global In
170. ek x 4weeks month x 31 28 133 hours of on peak hours in a typical month of January Note that the actual number of hours will vary from year to year as a function of when the week starts so this represents an average for all January Period Maximum Demand kw This is the maximum demand established during the respective Rate Block during each month The corresponding charge is then used to calculate that Rate Block s contribution to the Time Related Demand Charge in mo quarter and year Aggregated Energy Price in Each Period c kwh Based on the Applicable Tariff the user may enter the Time of Use Energy Prices during each period WITH DG The model will then weight average the pricing and corresponding consumption rates to produce weight averaged or aggregated monthly quarterly and annual energy prices Revised 7 14 03 Page 161 EconExpert DG Users Manual Copyright 2001 2005 Figure 80 TW4A Projected Time related Demand Charges WITH DG TW4A Conversion of Time of Use Energy Prices to Monthly and Annual Data Sheet Formats WITH DG Projected Time Related Demand Start of DG Operations Base Year _ i S i i E 3 a es eal 3 325 325 Fi E 5 o 3 325 3 325 s 3 325 3 325 S o 3 325 3 325 3 325 3 325 3 325 l u 3 325 3 325 3 325 3 325 3 325 325 s 326 325 3 325 J s z SS S SS SS S
171. elected o The Reference EconExpert DG Model is the model that you want compare track changes against The Reference model MUST be opened SECOND Record or copy paste the filename of the Reference Model as you will need to enter this information o A New COMPARISION file which you will name that highlights the fields that have been changed Note that o The Target and Reference models must each have at least two available windows and Revised 7 14 03 Page 49 EconExpert DG Users Manual Copyright 2001 2005 o The Target and Reference models MUST have different names AND BOTH MUST BE ENABLED A copy of the each of the respective Input Sheets from the Target model will be created in the new COMPARISON file including Table 1 Project Global Inputs Table 1C Project Annual Inputs Simplified Inputs Monthly Data Table 3 Construction Custom Construction Drawdown Table 11 Depreciation User Defined Depreciation Schedules 00000 0 The names of the Identification of the Cases that are compared will appear in the NOTES section of the COMPARISION FILE Global Inputs Sheet Once initiated you will not be able to terminate this macro until it is completed ii Compare all Tables in the Model and Quantify Differences You can compare ALL OF THE SHEETS in two models quantifying the magnitude of the delta the changes between two cases You can also compare and quantify
172. ements of individual utility tariffs Using this tool in combination with the Table 1C Project Annual Inputs you can break each month down into block pricing periods i e off peak mid peak on peak etc for the purposes of analyzing time related energy and demand charges The Time of Use Wizard is described in more detail on page 145 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 Descriptions of each of these tables and Worksheet Tabs are provided starting on page 76 e Current Case Graphs Select to view and edit the various charts or Graphs generated by EconExpert DG for the current case that you have set up in the model Descriptions of the Current Case Graphs sheets are provided starting on page 84 e Tornado Tables or Graphs Select to view the tables and graphs produced by EconExpert DG that are used to generate Tornado Diagrams You can view the results of the Tornado Analyses in table form or in graphical form as described next Additional discussion of the Tornado Diagrams and Tornado Tables is provided on page 171 e Sensitivity Tables and Graphs Select to view the Sensitivity Tables and to edit the increments used for the various automated Sensitivity Analyses performed by EconExpert DG You can view the results of the Sensitivity Analyses in table form or in graphical form as described next
173. enance Expenses Property Taxes and Insurance Column 2 Investment Costs o Phase 1 Project Development o Phase 2 Engineering Construction and Start up Revised 7 14 03 Page 87 EconExpert DG Users Manual Copyright 2001 2005 o Soft Costs o Plant Salvage Value Column 3 Construction Financing Permanent Financing o Primary Debt Structure o Subordinated Debt Structure Sources of Capital Summary Cash Tax and Book Depreciation Classes Income Tax Rates Capital Gains Rates and Investment Tax Credit Rates A variety of Cell Help Comments also appear with each input in Table 1 To view the comments first enable them from the EconExpert DG Help Menu and then place the cursor over the red triangle on the corner of the respective cell PLEASE NOTE Operating Expense and Revenue premises are input to Table 1 in BASE YEAR This means that the cost and revenue entries to Table 1 will be escalated by ADDING the real escalation rate for each item to the GNP escalation rate Entries to the Global Input Sheet will also be prorated for partial year operation in the first or last year of the project life if applicable Locations where a red asterisk appears identify cells where a potential warning message is located but not needed Also note that when inputs are entered in Table 1C Project Annual Inputs these entries will result in over riding of a particular entry to Table 1 Project Global Inputs the format o
174. enses entered in Table 1 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 ADDING the Real Escalation Rate assigned to that component with the GNP Escalation Rate described below The GNP Escalation Rate in Table 1 is the life of project rate of general inflation Each cost or revenue input in Table 1 also includes a Real Escalation entry which when ADDED to the GNP Escalation Rate provides the effective or Nominal rate of escalation for that item So 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 The Discount Rates used for before and after tax NPV Calculations These are the rates used in Table 8 for calculating the Net Present Value of the Project They are normally the cost of capital for the corporation Rate on 6 Month Certificate of Deposit This is the rate earned on escrowed Debt Reserve funds If desired the user may alternatively provide an annual schedule of GNP Escalation Rates in Table 1C c Equity and Debt Percentages Global Inputs The Figure below shows the inputs included in this section of Table 1 Figure 44 Table 1 Project Global
175. ents the composite average for the respective quarter Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear Note that if the Heat Input is entered here it takes precedence over both the Heat Rate Input to the Global Inputs Sheet and the Gross Fuel Inputs in the Global Inputs Sheet Aggregated monthly rates entered in the Monthly Data Table can be transferred to this sheet viii DG Plant Capacity Factor in Each Quarter Global Inputs This is the percentage of the potential plant output that will occur during each quarter accounting for number of hours in service and level of operation when the facility is operated For example if the plant will be operated at full capacity during 50 of the hours in the period this entry would be 50 Similarly if the plant were to be operated at 50 capacity for the whole period the entry would also be 50 Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear Monthly rates can also be entered in the Monthly Data Table The monthly data will be aggregated in that sheet and can be automatically reference to the Annual Inputs Sheet by selecting the UTILITIES POPULATE WITH Option on the EconExpert DG Command Menu ix Forced Outage Rate Annual Inputs This section is used ONLY to assess impacts of
176. enues amp Savings Table 6 provides calculation of gross revenues associated with energy capacity and by product sales and savings associated with the displacement of purchases of electric energy and gas Annual energy sales are reported for each of the specified Quarterly Periods Associated escalation factors are also displayed and the resulting escalated annual revenues are reported in current Table 6 is organized as follows The Top Section of Table 6 provides Revenue Factors and Escalation Rates including DG Plant Operating Statistics Site Electric Energy and Thermal Use that can be displaced by DG The Energy Sales Profile by Energy Pricing Period Sales of Other Commodities including steam and other byproducts Escalation Rates used for Revenues Escalated Prices for Energy and Commodities O 00000 Table 6A located in the bottom section of Table 6 provides Escalated Annual Revenues in current Revenue streams are itemized in detail Itemized revenue categories provided in Table 6A include A breakdown of revenues from energy sales into the available 4 Quarterly Periods A breakdown of all taxable revenue sources including O 0o00000 0 Savings Associated with Displaced Electric Purchases Savings Associated with Reduced Demand Charges Savings Associated with Displaced Gas Purchases Revenues from Sales of Excess Electric Energy Capacity Payments Additional Annual Revenue from Table 1C Project
177. er costs associated with installed capacity which the utility deems a customer previously used and so therefore should continue to fund for some period As an example some utility tariffs will require the customer to pay demand charges for the first year of operation of a DG facility which are based on the demand over the year prior to the operation of the DG facility Similarly after a forced outage of the DG facility especially during an on peak period the utility may charge the customer higher demand fees for a specified period often up to a year following the outage event Revised 7 14 03 Page 128 EconExpert DG Users Manual Copyright 2001 2005 This section of the Annual Inputs Sheet allows the user to evaluate the impact of Ratchets if they apply The user may specify the 3 month average amount of the demand ratchet in kw which will apply during each respective quarter resulting in a calculation of additional demand charges by EconExpert DG in the months where non zero ratchets are identified xvii Value of Excess Electricity Sold to the Utility c kwh Annual Inputs This is the price of electric energy sold back to the utility in each quarter expressed in cents kwh Energy sales back to the utility will be calculated by the model based on excess electric generation after accounting for use at the site and any sales under contract to third parties Non zero values or formulas resulting in non zero results will override input
178. es Annual Inputs The user can select annual depreciation amounts applied to State Taxes in any year that such might occur for Cash Tax Calculations An example of where this might apply is when losses are carried to the project from a subsidiary or for special depreciation credits for Wind Projects Non Zero entries will override the depreciation that is calculated as a result of entries to Table 1 in the years where those non zero entries appear k Annual Federal Depreciation for Cash Tax Purposes Annual Inputs Revised 7 14 03 Page 132 D EconExpert DG Users Manual Copyright 2001 2005 The user can select annual depreciation amounts applied to Federal Taxes in any year that such might occur for Cash Tax Calculations An example of where this might apply is for a Wind Project or in the event Major Maintenance Expenses qualify for special Tax Treatment Non Zero entries will override the depreciation that is calculated as a result of entries to Table 1 in the years where those non zero entries appear Additional Tax Deductions Applied to State and Federal Taxes Annual Inputs The user can enter additional deductions from State and Federal Taxes in any year that they might occur An example of where this might apply is when losses are carried to the project from a subsidiary These entries are in current are not escalated and are added to any other deductions or taxes calculated for the project m Federal Income Tax Ra
179. esents that amount of electric chiller Maximum demand that can be displaced by absorption chillers If the electric energy demand for chilling is not expected to be constant or is not expected to increase at a constant annual rate in a given quarter over the life of the project the annual electric energy usage rates can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue shaded Cell by executing the UTILITIES POPULATE WITH DATA FROM option on the EconExpert Command Menu Revised 7 14 03 Page 97 EconExpert DG Users Manual Copyright 2001 2005 xi Displaced Electric Chiller Electric Consumption 1000 kwh period Global Inputs These inputs are applied ONLY if the Tri Generation Switch is selected The inputs should reflect the amount of chiller electric energy use that can be offset from available waste heat used in absorption chillers and so might be limited by the available amount of waste heat from the Tri Generation Plant This is the maximum coincident quarterly amount of electric energy use by the chillers in 1000 kwh quarter that will be displaced by waste heat from the DG Unit i e if absorption chillers replace or offset electrically driven chillers The values entered in each quarter will be used to calculate the amount of electric consumption by the chillers that can be displaced by use of waste heat from the CHP Facility during the specifi
180. esponding Global Input will be overridden The Status Sheet will also provide a notice that this has occurred Revised 7 14 03 Page 74 EconExpert DG Users Manual Copyright 2001 2005 A feature is provided on the EconExpert DG UTILITIES Menu that allows you to clear and reset the Annual Input Table to all Os 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 Reset Annual Inputs to 0 s Note that if you do this the current Annual Inputs will be lost You will be provided with a warning If desired you can save the Annual Inputs to the Holding Bin before Resetting them This can be initiated from this same menu option The individual Annual Inputs are discussed in more detail starting on page 118 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 PLEASE NOTE Cost entries are input 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 Note are items where SAVINGS are realized as a result of DG are items that result in NEW COSTS that may be incurred as
181. et to the model by reference to the Global or Annual Inputs Sheets 7 Simplified Inputs The Simplified Inputs Sheet provides a simplification of data entry to be used in the Global Inputs Sheet Inputs are entered in the shaded cells based on Annual Averages Red inputs indicate critical values for which it is highly recommended that input data should be entered Like Table 1 Project Global Inputs this input sheet is organized into sections associated with each class of inputs You can locate a specific input by scrolling through the table You may automatically populate Table 1 Project Global Inputs with entries in this table by selecting UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Transfer Simplified Input Data to Global Inputs Sheet from the EconExpert Command Menu For additional explanation on the Simplified Inputs Sheet see page 115 Note that ALL of the inputs listed here will be transferred to the Global Inputs Sheet treated as average annual values overwriting the corresponding quarterly values that are currently in Table 1 Project Global Inputs You will be provided with the option to save the Global Inputs Sheet before the data is overwritten EconExpert will allow you to use default values for other assumptions for remaining inputs or to use assumptions that have been previously populated into the Global Inputs Sheet by you or others in your organization
182. evised 7 14 03 Page 145 EconExpert DG Users Manual Copyright 2001 2005 The Time of Use Wizard is color coded as illustrated in the figure below Figure 69 Time of Use Wizard Color Legend SHADING LEGEND _Input Cell Shading Wizard Identification Shading Blue Shaded Areas Indicate Site Inputs WITHOUT DG Ene y Pric Ti f U e Wi Green Shaded Areas Indicate Project Inputs WITHDG The input cells in the Time of Use Wizard are shaded to identify input classes The light blue shaded inputs can be used to enter data on pricing and demand for electricity associated with the site WITHOUT DG The figh reen shaded input cells can be used to enter Projected Data associated with the DG Facility and the site WITH DG in operation The yellow shaded cells represent locations where CEI has provided computational logic which the user may override if desired The conditions assumptions provided with the computational logic are described in the help comments in the model and are discussed further below You may automatically populate the Annual Inputs sheet with aggregated results produced by the Time of Use Wizard by selecting UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Transfer Time of Use Energy Data to the Annual Inputs Sheet UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Transfer Time Related
183. f Excel To do so select Tools Macro Security from the Excel Command Menu On the 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 Also it is recommended that no other worksheets are opened when you install EconExpert DG 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 Figure 7 Microsoft Excel Enable Macros Screen Hicrosoft Excel 2 x C Econ Expert Financial Model v2 0 xXL5 contains macros Macros may contain viruses It is Aways safe to disable macros but if the macros are legitimate you might los some Functionality i Enable Macros More Info Select Enable Macros Whenever you open EconExpert DG you MUST select the Enable Macros option to properly initialize the EconExpert DG model If this option is not selected the model will not function properly Revised 7 14 03 Page 20 EconExpert DG Users Manual Copyright 2001 2005 Step 3 The installation of EconExpert DG will proceed EconExpert DG will now follow with the screens Figure 8 EconExpert DG Successful Installation Notice EconExpert INSTALLATION COMPLETE COPYRIGHT 2007 xj Initialization Completed The Installed Model will be saved on your C Drive to to C EconE spert Files E conE xpert Profo
184. f Input Categories used in Table 1C Project Annual Inputs Annual Inputs are inputs that apply in a single year during the life of the project When entered none 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 Details associated with Table 1C Project Annual Inputs are further described on page 118 Revised 7 14 03 Page 30 EconExpert DG Users Manual Copyright 2001 2005 e Monthly Data Select from an alphabetical list of Input Categories used in the Monthly Data Sheet The Monthly Data Sheet allows you to enter plant performance and forward pricing data in up to 12 monthly periods year and then to convert that data to an equivalent quarterly format for use in EconExpert DG s Global or Annual Inputs Sheets For a detailed explanation on the Monthly Data Sheet and how to use it see page 64 and page 135 e Simplified Inputs The Simplified Inputs Table provides one screen view of all of the critical inputs to Table 1 Project Global Inputs Inputs are entered in the shaded cells based on Annual Averages which can be transferred to the Global Inputs Sheet You can locate a specific input by scrolling through the table For a detailed explanation of the Simplified Inputs Sheet and how to use it see page 115 e Time of Use Wizard The Time of Use Wizard allows you to more fully evaluate the time of use related pricing el
185. f electric Energy Use is not expected to be constant or is not expected to increase at a constant annual rate over the life of the project annual electric energy usage rates can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES POPULATE with Data From option on the EconExpert Command Menu Project Monthly Prices can also be transferred to the Annual Inputs Sheet iii Chiller Electric Power Consumption 1000 kwh period WITHOUT DG Global Inputs This is the electric chiller power use at the location in each quarter in 1000 kwh quarter WITHOUT DG Revised 7 14 03 Page 94 EconExpert DG Users Manual Copyright 2001 2005 If the Tri Generation switch is selected the values entered here will be used to estimate savings associated with the displacement of electric energy purchases from the utility because of use of absorption chillers to displace electrically driven chillers If electric chiller energy use is expected to change or is not expected to increase at a constant annual rate over the life of the project annual electric energy usage rates can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into the blue by executing the UTILITIES POPULATE WITH DATA FROM option on the EconExpert Command Menu iv Site Displaceable Thermal Use 1000 Therms Peri
186. f the value of the input 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 in the proforma Individual inputs to Table 1 Project Global Inputs are described below a Switches Switches in Table 1 provide the user with the options to turn ON or OFF special calculations in the model To select an option controlled by a switch simply click on the associated check box as shown in the figure below Figure 42 Table 1 Project Global Inputs Switches Switches Check Boxes Selected Tri Generation Waste Heat Used for Chillers YES Operating Lease NO Tax Treatment Switches Federal State Selected a Federal YES Use 9 11 Economic Stimulus Depreciation State YES Carry Forward Tax Losses YES Revised 7 14 03 Page 88 EconExpert DG Users Manual Copyright 2001 2005 The Switches in EconExpert DG are described below i Tri Generation Switch Global Inputs EconExpert DG offers the ability to evaluate Cogeneration or Tri Generation Applications Cogeneration provides two forms of savings e Electric Energy Production from the CHP Plant is used to offset Electricity Purchases from the Utility e Waste Heat from the CHP Plant is used to offset consumption fuel used to generate hot water or steam Tri Generation includes a third op
187. file which you will name that highlights the fields that have been changed Also note that 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 the 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 respective Global Inputs Annual Inputs and Data Conversion Input Sheets with the changed input fields HIGHLIGHTED on a BRIGHT ORANGE Background 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 e The Name of the REFERENCE EconExpert DG Data File The REFERENCE file is the one that you want to compare the TARGET file against e 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 e The name you entered for the REFERENCE Data file must be precisely correct e BOTH the TARGET AND REFERENCE models must be ENABLED e There must NOT be a file with the same name as the COMPARISON file that is currently opened Revised 7 14 03 Page 180 EconExper
188. forced outages on reversal of Demand Charges which will be applied ONLY if Stand By charges have NOT been assessed While a forced outage of the facility would result in an impact on Revised 7 14 03 Page 124 EconExpert DG Users Manual Copyright 2001 2005 operating expenses and lost revenues those impacts MUST be addressed through the capacity factor entry In periods where a forced outage occurs during a peak demand period if there are NO Standby Charges any savings in demand charges will be reduced reflecting a penalty imposed by the utility in the current quarter The reduction will be equal to the calculated MW of cogen plant capacity that is lost during the outage and Tariff requirements associated with an outage If the entire facility goes off line the quarterly amount is equal to 100 times the number of months applied 3 If charges will be assessed for a period that exceeds the current quarter the outage should be modeled for multiple quarters If the charges will be assessed for only one month the outage should be modeled as 1 3 of the amount representing 1 3 of the quarter If the DG Facility does not operate reliably the savings in demand charges may be reduced or eliminated and a demand ratchet may apply in the succeeding period The calculation of savings associated with reassessment of demand charges is based on the following o If Standby Charges are assessed there will be no reassessment of demand charges or
189. ftware License Agreement Click Here to Decline and Close Model Figure 14 Acknowledging or Declining the EconExpert DG Software License If you ACCEPT the License the following message will appear Figure 15 License Accepted Notification Save to New Filename EconExpert License Terms Accepted Your User Name the EconE xpert model will be saved acknowledging your acceptance of the Software License Remember under the terms of a Paid Subscription to EconE xpert you will receive 30 Days of Free Technical Support from CEI Please feel to contact us if you have questions The contact information can be obtained from the EconExpert HELP Menu by Selecting About EconExpert Extending My License Information on CEI and the EconExpert Model Thank You for Subscribing to EconExpert a Universal Tool for the Power Generation Industry To record your acceptance of the License Terms Select OK to continue The model will again be saved to a new directory on your Hard Drive labeled C EconExpert Files Revised 7 14 03 Page 25 EconExpert DG Users Manual Copyright 2001 2005 e Step 6 After accepting the License you will be asked if you would like to view the EconExpert DG Tutorial Figure 16 Do You Want to View the Tutorial EconExpert DG Run Tutorial x Installation COMPLETED Would you like to view the EconExpert DG Tutorial Select YES if you would like to view the Tutorial which is high
190. g Construction Term mos For Acquisitions enter 0 24 months Max Project Life Years 20 Max 20 Financial Closing Date 01 01 04 Start of Operation 07 01 04 Retirement Date 07 01 24 Figure 45 Project Schedule Inputs to this section include Month and Year of Financial Closing This point sets the start of the project schedule and of the construction phase drawdown in Table 3 and is the year that the NPV calculation is discounted to Construction Term Months This specifies the length of the construction phase and the length of the corresponding drawdown schedule Project Life Years This is the term of the analysis If the Project Life is shorter than the debt term or the applicable depreciation life then the residual principal balance and depreciation will be accelerated in the final year of operations Other items such as Land Value and Working Capital are also recovered at the end of the Project Life Tables throughout the model will show results over the project life and columns after the end of the Project Life will show 0 at the top of the column indicating that the project is inactive during that period The maximum project life if 20 years Using the factors listed above the dates for Financial Closing Start of Operations and Project Retirement are reported 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 b
191. g 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 printed to one 8 1 2 x 11 page using the PRINT option on the Command Menu Revised 7 14 03 Page 63 EconExpert DG Users Manual Copyright 2001 2005 6 Monthly Data Historical and Projected Pricing and DG Plant Performance Data can be entered into the Monthly Data Sheet in 12 Monthly Periods This can include Historical Data on the host s usage and costs of electricity and gas and predicted inputs on forward fuel and energy pricing DG plant performance and other variables The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet As described below you can automatically populate the Historical Data to the Quarterly Format used in the Global Inputs Sheet and or you can automatically reference the Projected Data in Quarterly Format in the Annual Inputs Sheet Note that when historical data is transferred to the Global Inputs Sheet that data will be overridden by values transferred to the Annual Inputs Sheet Table 1 Project Global Inputs and Table 1C Project Annual Inputs provide a flexible input structure for entering data in annual or quarterly formats The Monthly Data sheet provides additional flexibility to utilize Forward Energy and Fuel
192. gas bills received by the site owner Also note that items where SAVINGS are realized as a result of DG are identified by a and items that result in NEW COSTS associated with the addition of DG are identified by a Revised 7 14 03 Page 121 EconExpert DG Users Manual Copyright 2001 2005 For additional explanation on transferring projected monthly data from the Monthly Data Sheet to the Annual Input Sheet see page 135 Site Electric and Gas Demand Excluding DG Annual Inputs i iii Average Maximum Site Electric Energy Demand kw Annual Inputs This is the Average MAXIMUM electric energy demand at the location including electric chillers if applicable but not including any power generated or used by the DG Facility during the applicable period If the Maximum demand varies from month to month the values entered should represent the Average for the period since the quarterly demand charges will be an aggregate of the individual monthly charges during the quarter The values entered here will be used to estimate the costs associated with demand charges to ensure that adequate capacity is available from the utility if the DG facility is not available Projected data entered in the Monthly Sheet can be transferred into this sheet by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu Site Displaceable Electric Energy Consumption 1000 kwh period WITHOUT DG Annual Inputs
193. ges as a function of how they value their capacity investments to meet that demand The Time of Use Wizard allows you to proceed into the next level of DG Project Economic Analysis by analyzing time of use electric energy pricing and time related demand charges Time of Use Tariff Prices Host Energy Usage and Demand and DG Plant Performance Data can be entered into the Time of Use Sheet in Rate Blocks during each month The data entered here will be then be aggregated into quarterly values that can be transferred to or referenced by formulas in the Annual Inputs Sheets As described below you can automatically populate time of use Data into the Quarterly Format used in the Annual Inputs Sheet taking advantage of the flexible input architecture Revised 7 14 03 Page 185 EconExpert DG Users Manual Copyright 2001 2005 2 Glossary of Terms Capital Lease A Capital Lease is structured much the same as debt so that the Owner the Leasee holds title to the project assets on their books As a result the owner will capture all of the associated tax depreciation Often times a Capital Lease may provide 100 financing If the Operating Lease Switch is NOT selected EconExpert DG will assume a Debt Equity or Capital Lease structure Cogeneration EconExpert DG offers the ability to evaluate Cogeneration or Tri Generation Applications Cogeneration provides two forms of savings e Electric Energy Production from the Cogeneration Plant is u
194. ght 2001 2005 List of Figures Time of Use Wizard Continued Figure 76 TW2C Projected Aggregated Cost of Electricity Purchased from Utility with DG Operational 156 Figure 77 TW3 Time related Demand Charge Wizard Site WITHOUT DG oe eeeeeceeenecneeceneenneens 157 Figure 78 TW3A Projected Time related Demand Charges WITHOUT DG ccceeccesceseeteeeeeeeeeeeeeeaeeees 159 Figure 79 Time related Demand Charge Wizard Site WITH DG eee eceeeeeeeeeeseeeaeecaeecaecaecnsecnseenseeees 160 Figure 80 TW4A Projected Time related Demand Charges WITH DG 000 ececeeeseeseesceseeecneeeecaeeaeeeeeaeeees 162 Figure 81 Table TW4B Projected Savings in Time Related Demand Charges ee eeesseesseceseceeceeeeseeees 163 Other Features Figure 83 The IRR Sensitivity Term Input to Table 1 ei cesceeeceseceseeeseeseeeeeaeeeaeeeaeecaaecaaecsaecneeeeeeesneeees 168 Figure 84 Sensitivity Tables Input of Sensitivity Increments eee eeceeeeeeeeeeeeeeeseeeseecaeceseceseceseesseeenaeeees 169 Figure 85 Graphs Produced from Sensitivity Analyses cc ccescesceseceseceseceseeesceseneesaeeeaeesseecaaecaecsaeesaeceseenseenes 169 Figure 86 Inputting the Term of Sensitivity Analyses or Tornado Diagrams cs eeseeseceseceneceeeceteeeeeeeeeeeees 171 Figure 87 Tornado Diagrams Data Input Sheet cece cesecesecsseceseceeceeceseesseeseaeseaeeeaeecaaecsaecaaecseeeseeeseeeeeeeees 173 Figure 88 Sample Tor
195. greement If you do not accept the Agreement s terms the EconExpert DG Model will not function properly 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 do not agree to the terms of this Agreement 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 DG Financial Model the Model is a spreadsheet designed to assist users with the financial analysis of electric power generation projects The Model requires the installation and use of Microsoft Excel for which Licensee must possess valid licenses 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 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 Both the specific users Authorized Users and the specific computers must be authorized in writing fax or email by CEI Neither Licensee nor its Authorized Users may sublicense assign or transfer the license granted hereunder to any third party and
196. haded cells found in the Sensitivities Sheet Plots of the respective Sensitivity Analysis show the variation in after tax IRR and NPV as a function of the incremented value Note that for the Sensitivity Tables and Graphs to be current the respective sensitivity analysis must be executed prior to viewing or printing the table A warning will be issued advising you to be sure the sensitivity is executed before the table is viewed or printed For additional discussion of Sensitivities see the next section page 167 Revised 7 14 03 Page 32 EconExpert DG Users Manual Copyright 2001 2005 3 SENSITIVITIES The SENSITIVITIES Menu provides you with options to study how the after tax Internal Rate of Return IRR Net Present Value NPV or Payback of the current case will be impacted by incrementing key inputs to the model Each of the respective Sensitivities is performed by varying the identified input over the life of the project Options on the SENSITIVITY menu include o Tornado Diagrams Tornado Diagrams illustrate how the IRR or NPV or Payback of plotted by the user of the current case will be impacted by individually incrementing any one of several 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 For more information see page 35 and page 171 o Individual Sensitivity Cases The remaining options allow you to selectively
197. hat range Increment that you would like the model to vary each of the specified inputs Once you have established the Increments select one of the blue buttons on the bottom of the Data Form The first button will run the selected sensitivities and will sort the horizontal bars in the resulting Tornado Diagram based the after tax IRR The must sensitive inputs will be sorted to the top of the chart and the least sensitive inputs will be sorted to the bottom of the chart The second button will run the same sensitivities based on the after tax NPV The third button can be selected to cancel the operation and to return to the model Revised 7 14 03 Page 36 EconExpert DG Users Manual Copyright 2001 2005 The figure below shows an example of a Tornado Diagram 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 after tax IRRs the Base Year value for the input and the Increment that was used Similar Tornado Diagrams are provided in EconExpert for the NPV Please note that due to the nature of timing of cash flows and effects of discount rate on the IRR and NPV calculations the ordering of consequential impact of the parameters on the respective IRR and NPV Tornado Diagrams may be different for the same base case Figure 2
198. he project without leaving money on the table This User s Manual has been developed to assist you in getting started using EconExpert DG 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 DG Model Founded in 1997 Competitive Energy Insight provides business and project development support to the Power Generation and Distributed Generation Industries with the following areas of expertise e Custom Model Development Project Screening and Analysis Facilities Siting Acquisitions Analysis Due Diligence Environmental Permitting Support Development and Negotiation of Agreements including o Terms Sheets o Project Financing Agreements Revised 7 14 03 Page 13 EconExpert DG Users Manual Copyright 2001 2005 o Power Purchase Agreements PPAs o Engineering Procurement and Construction Agreements EPC For additional information on EconExpert DG or CEI and the services we provide please visit our website at http www CEInsight com Revised 7 14 03 Page 14 II EconExpert DG Users Manual Copyright 2001 2005 How to Obtain or to Extend a Subscription to EconExpert DG For those who are interested in purchasing a subscription to EconExpert DG you can do so by contacting Competitive Energy Insight via email or the phone number shown on the previous page Pu
199. he utility will apply penalties a Ratchet for not achieving required demand reductions Te impacts of Forced Outages on savings can be studied using Table 1C Project Annual inputs Fuel Price Profiles EconExpert DG allows input of Forward Fuel Prices Therm in quarterly periods corresponding to the Energy Pricing Periods EconExpert DG will calculate a composite life of project yearly fuel price for use in the proforma and will calculate yearly net expenses for fuel during each of the periods Table 1C also allows input of annual fuel pricing data in quarterly periods If desired forward pricing and performance profiles can be specified monthly using the Monthly Data Sheet Internal Rate of Return IRR The Internal Rate of Return is the discount rate at which a series of cash flows would have a Net Present Value NPV of 0 IRR Guess Calculation of the Project s Internal Rate of Return IRR is an important analysis feature in EconExpert The IRR and NPV to Date of Financial Closing are Revised 7 14 03 Page 187 EconExpert DG Users Manual Copyright 2001 2005 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 calculating 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
200. hout the model providing descriptions of the functions of individual inputs and overviews of tables provided in the model The EconExpert DG Tutorial a The EconExpert DG HELP Menu EconExpert DG 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 Tutorial Access to the EconExpert DG On Line Tutorial The Tutorial will walk you through the model and all of its important features Command Menus Descriptions of the purpose and functions of each of the options provided on the EconExpert DG Command Menu Definitions and Explanations Helpful definitions of much of the terminology used Input Tables 1 and 1C Descriptions of the functions of Table 1 Project Global Inputs and Table 1C Project Annual Inputs License Information Information on the status of your license and how to contact CEI Saving EconExpert DG to Disk Discussion how to save and reuse Fully Functional and Values Only copies of EconExpert DG Sources of Help What automated help options are available to the user Customizing the Proforma Helpful suggestions on how you can customize EconExpert DG to perform project specific analyses Populating the Global or Annual Inputs Sheets with Simplified or Monthly Input Data Windows in Eco
201. ial license codes will be required to open and view the Values Only version from any PC that has Microsoft Excel Versions 97 or later Values Only spreadsheets will be protected WITHOUT passwords so the issuer may edit or modify any of the sheets in the model Please note DO NOT DELETE ANY OF THE WORKSHEETS IN THE MODEL AS SUCH WILL RESULT IN AN ERROR WHEN THE VALUES ONLY SHEET IS REOPENED 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 s Sensitivity Cases prior to converting the model to Values Only If you elect to run all of the sensitivities in one batch it will take several minutes for the over 250 different cases to be executed The Tornado Diagrams must be individually generated If you elect not to run the Sensitivities the Sensitivity Tables Tornado Tables Sensitivity Graphs and Tornado Graphs can be deleted from the Values Only Copy to ensure that the Values Only copy that you send to others does not contain Sensitivity Graphs or Tornado Graphs that are inconsistent with the case you have modeled Prior to executing a Values Only conversion you will be prompted with a number of warnings advising you to save the original spreadsheet before making the conversion and to save the Values Only file to a new filename to avoid overwriting the
202. ic number of hours that typically apply to each Rate Block in each month For example if the On Peak period is from 10 am 4 pm on weekdays in the month of January this would typically represent 6 hours day x 5 days week x 4weeks month x 31 28 133 hours of on peak hours in a typical month of January Note that the actual number of hours will vary from year to year as a function of when the week starts so this represents an average for all January periods Hours in Each Period If the facility will operate 7 x 24 then the number of hours per period can be entered and used to calculate the energy consumption during each period WITHOUT DG Non Chiller and Chiller 1000 kwh period For non continuous or cycling operation the user can override the calculated 7 X 24 amounts with actual period consumption rates Host s Appetite for Electric Energy 1000 kwh This is the sum of the Non Chiller and Chiller electric energy use in each Rate Block Aggregated Energy Price in Each Period c kwh Based on the Applicable Tariff the user may enter the Time of Use Energy Prices during each period WITHOUT DG The model will then weight average the pricing and corresponding consumption rates to produce weight averaged Aggregated monthly quarterly and annual energy prices Revised 7 14 03 Page 149 EconExpert DG Users Manual Copyright 2001 2005 Figure 71 TW1A TW1B and TWIC Projected Site Displaceable Chiller and Non Chiller Consumpt
203. ifferent depreciation amounts Under Liabilities Deferred Taxes appear on the project financials but are not relevant to partnership financials Instead of Equity on the project financials there are Partners Capital Accounts on the partnership financials Likewise the balances contributions and distributions to and from the capital accounts are detailed on the partnership financials where the retained earnings exist on the project financials Figure 93 Comparison of Table 11 and Table 11P Financial Statement Table 11 Project Table 11P Partnership Variation Financials Financials Income Statement usually straight line usually MACRS Income Taxes Tax Credits Used to calculate Net Not shown or used to Tax Deductions Capital Gain Income calculate Net Income Taxes Cash From Operations Net Income reflects taxes Net Income does not reflect and Book Depreciation taxes and reflects Tax show Deferred Taxes and Depreciation there are no typically uses straight line deferred taxes and typically depreciation uses MACRS depreciation Revised 7 14 03 Page 194 EconExpert DG Users Manual Copyright 2001 2005 Cash from Investing Identical to Table 11P Identical to Table 11 Cash from Financing Shows total Equity in the Shows Contributions and project Distributions from Table 1P Balance Sheet Assets Cash stays in the project Cash is pulled out of the and Book Depreciation is partnership as defined on
204. ight 2001 2005 e User Defined Additional Revenue Sources 1 to 6 Annual Inputs Six User Defined Categories are provided allowing you to model any custom revenue streams available to the project You may define the names of these categories and the names will be shown on the reports throughout the model You may also run individual sensitivities on each of these categories These entries are in addition to any other revenues calculated based on inputs to Table 1 or Table 1C including Electric Energy Sales Capacity Sales Hot Water or Steam Sales Waste Heat Sales etc Entries in this section do not override any entries included in Table 1 but rather are provided so that additional revenue sources can be included in any year of the project User Defined Revenues should be entered in current yr These costs will not be escalated These fields are freely available to the user but will be over ridden if data is imported from the Tariff Model into EconExpert DG If this procedure is initiated and there is a risk of data being replaced the user will be notified with a warning Figure 65 Annual Inputs User Defined Additional Revenue Sources 1 2 and 3 Other Revenues and Savings Capacity Payments Price ofSteam or Hot Water Sales to Third Parties 1000 Ib __User Defined Additional Annual Revenues or Savings 1 il User Defined Additional Annual Revenues or Savings 2 User Defined Additional Annual Revenues or Savings 3 l
205. igned to assist users with the financial analysis of 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 9 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 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 eanet by _ Agreement and the Model Authorized Users are Erime i use the Model uiy on the x a Astart dl ec B TA i jji EconE pert DG j P Microsott Visual Is a E EcorE pet DG Re SHd0a8 2 10 23 PM The EconExpert DG Software License is presented If desired you may print the license by clicking on either of the
206. iliates without regard to which other provisions of this Agreement have been breached or have proved to be ineffective 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 information 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 CEInsight com Website _http www CEInsight com 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 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 Agree
207. imes a portion of the customer s bill is based on the maximum power demand that is used either as a monthly average or during a specific on peak period The utility then includes in the power bill a fixed annual Demand Charge for capacity required to support that amount of demand This input is the demand charges that will be paid to the utility in kw mo to ensure firm power to meet the annual load requirements When the DG Facility is brought on line the customer should realize a savings in demand charges associated with the fact that as a result of self generation they no longer have as large of a demand requirement Revised 7 14 03 Page 127 EconExpert DG Users Manual Copyright 2001 2005 If the DG Facility does not operate reliably the savings in demand charges may be reduced or eliminated and a demand ratchet may apply in the succeeding period xv Demand Charges for Maximum Metered Power kw mo WITH DG Annual Inputs These are the Demand Charges WITH or After DG is introduced Demand Charges are reflective of the maximum meter reading experienced by the customer during the target period Often times a portion of the customer s bill is based on the maximum power demand that is used either as a monthly average or during a specific on peak period The utility then includes in the power bill a fixed annual Demand Charge for capacity required to support that amount of demand This input is the demand charges that will be paid to
208. imum Account Balance option whereby the user can set the minimum amount to exist in the capital account or inside basis in case such an amount is specific in a partnership agreement The calculations for these options are performed in two locations under each partner s capital accounts and at the bottom of the table in rows 718 831 The idea for all options is to maximize the cash distributed under the given constraints The following section describes the supporting calculations for each option Distribute All Cash With this option the model will look at current and future cash obligations and distribute only cash that will not be required to meet an obligation given future cash flows In rows 742 753 current and future cash sources and obligations are identified and compared with the result being a current Cash Available for Distribution Distribute Enough to Pay Taxes In rows 719 740 the model determines each partners tax liability and distributes just enough cash if available to meet that liability Maintain Cap Account and Basis In rows 757 826 the model attempts to adjust distributions to maintain positive values in each partner s Capital Account or Inside Basis In reality if the partnership s net income is negative over time the Capital Account might go negative even without any distributions In other words no matter what accounting strategy is taken the partners might show negative Capital Accounts On the ro
209. ination 5 Warranty 10 Limitation of Liability 11 Copyright Notice 12 Jurisdiction 15 Indemnification and 16 Attorneys 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 mediatioyfarbitration or litigation concerning this Agreement shall be entitled to receive from the other party its attorneys fees and costs incygfed in connection therewith 17 Successors and Assigns Subject to the prohibition on Lig nsee s assignment this Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties heyto and their respective successors and permitted assigns By clicking on the button provided on the botto DECLINES acceptance of the terms of this Sofi the License Sheet in the EconExpert DG Financial Model User ACCEPTS or icense Agreement If the License is declined the Econ Expert Model will not be Aly installed and should not be used I Have Read and I ACCEPT the terms of the foregoing EconExpert DG Software License Agreement Click Here to Accept and Enable the Model I DECLINE the terms of the foregoing EconExpert DG So
210. ined Heat and Power and Energy Savings Projects DG CHP ESCO are complex business and technical deals and can not be over simplified using Simple Payback analysis Critical economic considerations associated with virtually every DG CHP ESCO project that must be fully understood in order to be successful and profitable include The Host s Appetite for Electric amp Thermal Energy Offsets The Profiles of the Host s needs The Operating Characteristics and Performance of the New DG CHP ESCO Facilities The Applicable Utility Electric and Gas Tariff s including energy charges demand charges time of use charges stand by charges and other fees Sometimes multiple tariffs may apply Time of Use Analysis Fuel Pricing Risk Microsoft Excel is a registered trademark of the Microsoft Corporation Revised 7 14 03 Page 12 EconExpert DG Users Manual Copyright 2001 2005 The Capital Operating and Maintenance Costs of the New DG CHP ESCO Facilities Outage Considerations Incentives and Rebates available to DG CHP ESCO The Project s Timing and Schedule Considerations Financing Options including Debt Equity Capital Leases and the benefits of Operating Leases Income Taxes including Allowances including production and investment tax credits under the Energy Policy Act of 2005 The economic structure and terms of Power Purchase Agreement PPA Fuel Supply Agreements FSA Maintenance Agreements a
211. ing period Ratchets are often used by utilities as a means to recover costs associated with installed capacity which the utility deems a customer previously used and so therefore should continue to fund for some period As an example some utility tariffs will require the customer to pay demand charges for the first year of operation of a DG facility which are based on the demand over the year prior to the operation of the DG facility Similarly after a forced outage of the DG facility especially during an on peak period the utility may charge the customer higher demand fees for a specified period often up to a year following the outage event This section of the Annual Inputs Sheet allows the user to evaluate the impact of Ratchets if they apply The user may specify the 3 month average amount of the demand ratchet in kw which will apply during each respective quarter resulting in a calculation of additional demand charges by EconExpert DG in the months where non zero ratchets are identified Value of Excess Electricity Sold to the Utility c kwh Monthly Data This is the price of electric energy sold back to the utility in each month expressed in cents kwh Energy sales back to the utility will be calculated by the model based on excess electric generation after accounting for use at the site and any sales under contract to third parties The values entered here will be aggregated to quarterly values that can be transferred to the Glo
212. ing Operations 50 0 Retirement Date Q2 Apr Jun ek Site Electric and Gas Demand Excluding DG 2 __ Annual Change 1 0 Annual Change I 1 0 1897 Quarterly Average Peak Sie Electric Energy Demand kw Ready Chillers a a ne ARET Moa wi Title Z Status jaz Sensitivities Project Summary Monthly Data Simplified Inputs _ Table 1 Project Global Inputs _ Table 1C Project Annual Inputs rail O i NUM 1 NAVIGATE As an alternative to selecting from the worksheet tabs located on the bottom of the Excel Screen and scrolling to a specific location in a worksheet the NAVIGATE Menu provides you w in the ith a means for locating and viewing the specific inputs and various tables and charts EconExpert DG Model Options provided on this menu include Global Inputs to Table 1 The Global Inputs Table is the only mandatory table in the model To locate specific input categories select from an alphabetical list of the Input Categories to Table 1 Global Inputs are inputs that typically apply over the life of the project or are entered as a single value and then escalated at a constant rate Details associated with Table 1 Project Global Inputs are further described on page 86 Annual Inputs to Table 1C The Annual Inputs Table is an optional table used to refine the setup that you have developed using Global Inputs To locate specific input categories select from an alphabetical list o
213. ing partner Revised 7 14 03 Page 198 EconExpert DG Users Manual Copyright 2001 2005 Capitalized Guaranteed Payments The model provides for two types of capitalized guaranteed payments a Developer Fee and a Loan Guarantee Fee and both of which can be assigned to a partner or to an external party In addition both of these payments are one time capitalizable fees that represent a full payment to the partner is the first year of the project but are expensed over time to the partnership as defined in the tax depreciation schedules on Table 1 Global Inputs Deductible Guaranteed Payments The model provides for two types of deductible guaranteed payments Developer Royalty and Guaranteed Return on Capital These payments can occur in multiple years of the project and are hence ongoing and deductible from the partnership taxable income in the year that the payments occur Guaranteed Return on Capital Near the top of Table 1P there is a table to provide any partner a Guaranteed Return on Capital In this table the user can specify the percent of initial capital invested that will be returned to the partner each year for the years specified The guaranteed return on capital differs from a preferred return in that the guaranteed return on capital does not affect the partner s capital account The payment is taxable to the partner receiving the Guaranteed Return and may be taxable as self employment income depending on the partner s sit
214. ints when you use the Monthly Data Table e Historical data should be entered in Base Year for transfer to Table 1 Project Global Inputs Projected data should be entered in current escalated for transfer to Table 1C Project Annual Inputs e EconExpert will automatically account for a partial year of operation when transferring data to the Annual Inputs Sheet e Data can be copied and pasted from other sources The pasted data should be pasted AS VALUES or as formulas from the source data file or can be linked using formulas e Data will be aggregated to quarterly format and transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet overwriting the current data Revised 7 14 03 Page 65 EconExpert DG Users Manual Copyright 2001 2005 e If period data is transferred it is probably preferable to ensure that data is transferred for the whole project life up to 20 years 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 the Global Inputs data will be applied in years where 0 s or no inputs appear e If desired as an alternative to transferring the data using the macros described above you may set up formulas in the Global or Annual Inputs Sheets that selectively reference the parameters that you would like to model on a monthly basis If you do this the Monthly Data sheet will become an active input she
215. ion Host s Appetite TW1A Conversion of Time of Use Energy Prices to Monthly and Annual Data Sheet Formats z Start of DG Projected Site Displaceable Operations 11 01103 Non Chiller Electric tion 1000 kwh period Base Year 1 November 2 December e Site Displaceable Non Chiller Electric Consumption 1000 kwh period This table is used to project Non Chiller Electric Consumption over the life of the project e Site Displaceable Chiller Electric Consumption 1000 kwh period This table is used to project Chiller Electric Consumption over the life of the project e Total Non Chiller and Chiller Consumption 1000 kwh period Sum of the above If site consumption will change during the project life annual increases in the individual non chiller and chiller electric energy consumptions can be entered in any year using the If the rate of change of consumption is not constant across all periods in a given year the amounts must be manually adjusted in the Annual Inputs Sheet after transferring the data Revised 7 14 03 Page 150 EconExpert DG Users Manual Copyright 2001 2005 TW1D Conversion of Time of Use Energy Prices to Monthly and Annual Data Sheet Formats Projected Aggregated Cost of Electric Energy Purchased fm pasa soa Utility c kwh P WITHOUT DG Base Year Month Year 2003 11 01 03 Annu
216. ionality and to make it easy to use Those features are fully described under the EconExpert HELP option on the command menu and in the descriptions that follow Note that individual cells in the EconExpert DG Model also include detailed help comments that describe the purpose of the subject cell or table The Help Comment feature can be enabled or disabled from the EconExpert DG Command Menu as described later A The EconExpert DG On Line Tutorial EconExpert DG includes an On Line Tutorial that will guide you through the important features of the model After accepting the terms of the EconExpert DG 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 If you select to view the Tutorial it will be initiated with the window Figure 18 First Window in the EconExpert DG Tutorial EconExpert DG Tutorial About EconExpert DG E x Thank you for choosing EconExpert DG the first Universal Financial Proforma for the Distributed Generation Industry and the Industries that support it EconExpert DG is a sophisticated and highly flexible spreadsheet developed in Microsoft Excel to be used for performing financial analysis of Distributed Generation and Inside the Fence Industrial Cogeneration
217. is the monthly price of gas or other fuel in Therm in current for uses at the site WITH DG operational i e hot water or steam The entered amount will be escalated by the GNP Escalator plus the Real Escalation Factor input to the right Fuel prices will be used to determine savings associated with the use of waste heat The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet xiii DG Plant Fuel Price Therm Monthly Data This is the price of gas or other fuel in Therm in Base Year for the DG Facility The entered amount will be escalated by the GNP Escalator plus the Real Escalation Factor input to the right Fuel prices will be used to determine the cost of fuel for the DG Plant h Conversion to EconExpert Quarterly Format for Import to Table 1C Revised 7 14 03 Page 143 EconExpert DG Users Manual Copyright 2001 2005 In this bottom section of the sheet monthly data is aggregated to a quarterly format that can be transferred to the Global Historical Data or Annual Projected Data Inputs sheets using the UTILITIES Populate With Data From option on the EconExpert Command Menu The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the Annual Inputs Sheet Revised 7 14 03 Page 144 EconExpert DG Users Man
218. ive April 1 2002 DG Updated by CEI July 14 2003 Sheet ot RS Operations Pa Note See Simplifying Assumptions Demand Maximum Charge Demand Charge Rate Block Demand kw ikw mo Rate Block Maximum Demand kw Sikw mo January On Peak July On Peak Mid Peak _ Mid Peak Off Peak Off Peak Monthly Time Related Demand Charges for January 0 Monthly Time Related Demand Charges for July On Peak Mid Peak ges fi 0 On Peak September On Peak Mid Peak Mid Peak Off Peak Off Peak i Monthly Time Related Demand Charges for March 0 Monthly Time Related Demand Charges for September April On Peak October On Peak Mid Peak_ _ Mid Peak Off Peak Off Peak Monthly Time Related Demand Charges for 0 Monthly Time Related Demand Charges for October On Peak November On Peak Mid Peak Mid Peak Off Peak i Off Peak ee Monthly Time Related Demand Charges for May Monthly Time Related Demand Charges for November 0 June On Peak 13 40 December On Peak Mid Peak A 2 03 Mid Peak Off Peak Off Peak Monthly Time Related Demand Charges for June 33 134 Monthly Time Related Demand Charges for December 0 26 0 E Q1 Time Related Demand Charges 0 Q3 Time Related Demand Charges 75 5 Q2 Time Related Demand Charges 33 134 Q4 Time Related Demand Charges a a a i A Annual Time Related Demand Charges 108 660 EconExpert DG User
219. ive kw of Electric Chiller Consumption that will be offset ton of Absorption Chiller Capacity DG Plant Capacity Factor This is the percentage of the potential plant output that will occur during each period accounting for the potential number of hours in service and level of operation when the facility is operated For example if the plant will be operated at full capacity during 50 of the hours in the period this entry would be 50 Similarly if the plant were to be operated at 50 capacity for the whole period the entry would also be 50 Rate Block A Rate Block or Time of Use Period corresponds to the time interval over which a certain pricing structure applies These Rate Blocks i e Super Peak On Peak Mid Peak Off Peak or other correspond to periods when rates make step changes due to variations in system wide demand are the same as those specified in Table TW1 Based on the applicable tariff there will be a characteristic number of hours that typically apply to each Rate Block in each month For example if the On Peak period is from 10 am 4 pm on weekdays in the month of January this would typically represent 6 hours day x 5 days week x 4weeks month x 31 28 133 hours of on peak hours in a typical month of January Note that the actual number of hours will vary from year to year as a function of when the week starts so this represents an average for all January Period Generator Operation hrs month This is the nu
220. l for the DG Plant If the quarterly fuel prices do not vary at a constant escalation rate over the life of the project annual fuel prices by quarter can be entered in Table 1C Project Annual Inputs Projected monthly prices can also be entered in the Monthly Data Table and transferred to the Annual Inputs Sheet using the UTILITIES Populate with Data From option on the EconExpert Command Menu Revised 7 14 03 Page 102 EconExpert DG Users Manual Copyright 2001 2005 xxii Other Revenues Global Inputs In addition to revenues from Energy Sales to the Utility the user may specify other sources of Project Revenues that involve third parties including Capacity Payments Inputs include the o Number of Months year that the payment applies o kw month payment rate expressed in Base Year o Real Escalation Rate of the payment amount Hot Water or Steam Sales Inputs include the o 1000 lb hr of steam sold o 1000 lb value of the steam expressed in Base Year o Real Escalation Rate of the steam price Note that the net plant heat rate is computed based on the Rated Net Plant Capacity and does not include steam sales Waste Heat Sales Inputs include the o Therms hour o Therm expressed in Base Year o Real Escalation Rate Electric Energy Sales Inputs include the o Kilowatts o Cents kwh o Real Escalation Rate EconExpert DG will deduct any electric energy sales to third parties from excess s
221. l reflect the annual plant capacity factor Variable O amp M inputs to Table are expressed in Base Year and a Real Escalation factor is provided Note that real escalation will be computed by adding the GNP Escalator to the Real Escalation to arrive at the Nominal escalation for that item For additional information on escalation see page 90 Figure 48 Table 1 Project Global Inputs Variable O amp M Yr 100 CF clkwh Water and Other Variable Costs 0 15 26 280 yr 100 CF 0 0 Other Variable O amp M 2 900 2 900 1 yr 100 CF 0 0 xxiv Fixed Operations and Maintenance Costs Global Inputs Fixed Operations and Maintenance costs are costs that do not depend on the level or duration of operation of the facility An example of fixed O amp M is any labor associated with the plant which is available and must be paid for regardless of whether or not or at what level the facility is operated Fixed O amp M Inputs to Table 1 can be entered in either of two User Defined categories The user can name these categories and the names will be carried into the various tables and charts throughout the model The annual Fixed O amp M can be entered in year for a full calendar year of operations The names of the Fixed O amp M categories defined by the user will be carried to the appropriate tables and reports in the model In addition to the two User Defined Fixed O amp M categories a separate input
222. lobal Inputs Holding Bin This option allows you to recover the copy of the Global Inputs Table that has been previously saved When you RESTORE the contents from a Holding Bin the current contents of the Active Inputs Sheet are overwritten e EXCHANGE a copy of the Active Global Input Table with copies that have been previously saved in the Global Inputs Holding Bin This option allows you to swap the copy of the input table that has been previously saved with the active Table 1 Project Global Inputs Sheet When you EXCHANGE the contents with a Holding Bin the current contents of the Active Global Inputs Sheet are saved in the Holding Bin and the current contents of the Holding Bin are written to the Active Global Input Sheet Neither is lost e RESET Global Inputs to 0 s This option clears the Global Inputs Sheet of virtually all inputs allowing you to restart with a fresh analysis Revised 7 14 03 Page 40 EconExpert DG Users Manual Copyright 2001 2005 For Table 1C Project Annual Inputs SAVE copies of the Active Annual Input Table to the Annual Inputs Holding Bin This option allows you to save a copy of the Annual Inputs Table and then to make modifications to the respective input sheet without losing the saved sets of inputs When you SAVE the contents to the Holding Bin the current contents of the Holding Bin are overwritten RESTORE the copy of the Annual Input Tables that has been previously saved to the Annual Inputs Hol
223. lues in Table 1 Project Global Inputs the following will be assumed Revised 7 14 03 Page 47 EconExpert DG Users Manual Copyright 2001 2005 When you use the Simplified Inputs Sheet annual costs amp savings are allocated quarterly The user then has the option to use EconExpert s Default Assumptions for remaining inputs or to substitute their own assumptions Figure 27 EconExpert DG s Default Assumptions Associated with the Simplified Inputs Sheet One Tranche of Debt The utility tariff will not change when DG is added No Tax Loss Carry Forward 50 50 Debt Equity No annual changes in Site Requirements or DG Plant Performance All cost and savings escalate at the GNP rate 6 Discount Rate for NPV Calculations 1 75 Interest Rate earned on Escrowed Funds No Demand Ratchets Apply No Forced Outages All Excess Production sold back to utility NO Third Party Sales No Capacity Payments or Thermal Sales to Third Parties Property Taxes amp Insurance are each 1 of Asset Basis No Terminal Value 35 Federal Income Tax Rate amp KF K The User may override the d items by entering their own values in the Global Input Sheet prior to transferring the data All other inputs are set to 0 Other key assumptions when you utilize the Simplified Input Sheet include o The debt term or lease term are equal to the project life o The depreciation life is the MACRS class that is less than
224. ly enable your use of the model for the subscribed license period To access the License Enable License Extension feature first contact CEI by telephone Then from the UTILTIES menu select Extend my License Enable or Extend my EconExpert DG License Next the following screen will appear Figure 1 How to Obtain an Authorized Subscription to EconExpert DG EconExpert DG STOP HERE HOW TO OBTAIN AN AUTHORIZED LICENSE Zj STOP HERE n extension to your license can be obtained by entering the license extension codes provided to you by CEI These codes must be provided over the phone If your installation has become corrupted you may also repair it using this option To extend your license please provide the following information to CEI ARAKAAKARKARKARARKAR Model License Number 20831 Original Licensed User Steve Provol Current Expiration Date 07 20 2004 Computer Clock Setting 07 28 2003 10 21 AM ARMRAMKARAAAARAAHRARE 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 Provide CEI with this information over the phone and CEI will provide you with the necessary License Extension Codes which are specific to your system Select OK and the following screen will appear Figure 2 Li
225. ly recommended for new users and will take about 10 20 minutes If you elect not to view the Tutorial at this time it can be accessed at any time from the EconExpert HELP option on the Command Menu e Step 7 The model has been fully initialized and is ready for use All copies of EconExpert DG models that you save will be Fully Functional on Licensed Computers used by you or others during the applicable License Period for that user Note that 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 DG on that computer for the subject license period Revised 7 14 03 Page 26 EconExpert DG Users Manual Copyright 2001 2005 You will now be transferred to the EconExpert DG Title Screen Figure 17 The EconExpert DG Title Screen a Microsoft Excel EconExpert DG Proforma 5 0 1654 xls 1 la x C File gdt view Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL fad 28 hr 6 a amp A e a B SSA M yr a E a zij
226. mand Excluding DG Monthly Data a Maximum Site Electric Energy Demand kw Monthly Data This is the MAXIMUM electric energy demand at the location including electric chillers if applicable but not including any power generated or used by the DG Facility Monthly values will be aggregated into quarterly averages for the purposes of estimating quarterly demand charges and aggregated savings Historical Data entered in the mm in the Monthly Data Sheet can be transferred into the corresponding cells in the Global Inputs Sheet and Projected Data in the Green Shaded cells can be transferred to the Annual Inputs sheet by executing the UTILITIES Populate with Input Data option on the EconExpert Command Menu b Site Displaceable Non Chiller Electric Energy Use 1000 kwh period Monthly Data This is the monthly electric energy consumption in 1000 kwh month EXCLUDING ELECTRIC CHILLERS and WITHOUT DG The values entered here will be used to estimate savings associated with the displacement of electric energy purchases from the utility by self generation The Chiller requirements will be separately itemized below In Tri Generation power for the Chillers will be displaced by the use of waste heat used to drive Absorption Chillers in place of the original Electrically Driven Chillers The values entered here will be aggregated to quarterly values that can be transferred to the Global Inputs Sheet or automatically referenced in the
227. mand charge rate If it is desired to model a partial quarter in the Annual Inputs Sheet simply prorate the value for the number of applied months in the quarter and divide by three o If the facility experiences an unplanned outage during the year the basis for demand charges in the quarter will be the maximum demand in the current quarter i e there may be no demand charge credit If the Demand Charges are not constant or do not escalate at a constant rate over the life of the project annual Demand Charges can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu xvii Value of Excess Electricity Sold BACK TO Utility c kwh Global Inputs This is the price of electric energy sold back to the utility in each quarter expressed in cents kwh Energy sales back to the utility will be calculated by the model based on excess electric generation after accounting for use at the site and any sales under contract to third parties Revised 7 14 03 Page 100 EconExpert DG Users Manual Copyright 2001 2005 Projected monthly prices can also be entered in the Monthly Data Table and transferred to the Annual Inputs Sheet using the UTILITIES Populate with Data From option on the EconExpert Command Menu xviii Standby Charges to Ensure Firm Backup Power kw mo Glob
228. mber of hours month that the electric generator will be operated assuming full load operation when the facility is on line If cycling or part load operation is anticipated the number of hours can be proportionately adjusted to result in the desired number of 1000 kwh month produced Chiller Operation hrs month This is the number of hours month that the absorption chillers will be operated assuming full load operation when the facility is on line If cycling or part load operation is anticipated the number of hours can be proportionately adjusted to result in the desired number of 1000 kwh month produced Direct Electric Production 1000 kwh Based on the capacity and efficiency of the absorption chillers and the number of hours operated in each period this is the calculated 1000 kwh of electric chiller energy consumption that is displaced during each period Revised 7 14 03 Page 153 EconExpert DG Users Manual Copyright 2001 2005 e Absorption Chiller Electric Offset 1000 kwh Based on the capacity and efficiency of the absorption chillers and the number of hours operated in each period this is the calculated 1000 kwh of electric chiller energy consumption that is displaced during each period e Total Benefits of Self Generation and Chillers 1000 kwh This is the sum of the Direct Electric Production and the Absorption Chiller Electric Offset e Hosts Appetite for Electric Energy 1000 kwh This is the sum of the Non Chiller
229. me 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 Ment select Window New Window from the Excel menu to add a window to the file where it is required 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 Revised 7 14 03 Page 182 EconExpert DG Users Manual Copyright 2001 2005 Quantifying the Difference in Inputs and Resul in a TARGET File versus a REFERENCE FILE View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL 8 x Figure 76 Comparing Data File Select Checkbox to Use XIRR IRR Selected Table 1 Section 14 GLOBAL INPUTS N Global Inputs Holding Bin 1 is Not Labled Shaded Areas Indicate Inputs i do Global Inputs Holding Bin 2 is Not Labled N Active Annual Inputs Sheet is _ Not Labeled PE NPY TER j g SENSIT Ho Annual Inputs Used IRR_End of Year AD TQPHADO DIAGRAI HPV to by EOY 2003 1000 STUE AND TOI DIAGR HPY and IRR Summary E N ws 0 1 0 mparing the cases Example Frame F Combined e Highlighted on an Orange Background ba
230. ment shall be valid or binding upon the parties unless such change amendment or modification shall be in writing and duly executed by both parties 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 Attorneys Fees shall survive such termination or expiration 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 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 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 By clicking on the button provided on the bottom of the License Sheet in the EconExpert DG Financial Model User ACCEPTS or DECLINES acceptance of the terms of this Software License Agreement If the License is declined the EconE
231. multiple financing options including e Debt Equity Financing e Capital Leases e Operating Leases Permanent financing or a Capital Lease can be divided into two parallel Tranches each with its own financing terms Terms entered here will apply to the life of the lease or loan A Capital Lease may provide 100 financing A Capital Lease is structured much the same as debt so that the Owner the Lessee holds title to the project assets on their books As a result the owner will capture all of the associated tax depreciation Often times a Capital Lease will provide 100 financing If the Operating Lease Switch is NOT selected EconExpert will assume a Debt Equity or Capital Lease structure If special financing terms are required such a variable interest rates or accelerated principal payments those amounts can be entered as annual inputs and will override the amounts entered here where they apply a Operating Leases The Operating Lease Option can be selected by clicking on the related checkbox in the Switches Section of the Global Inputs Sheet This switch is also duplicated in the Operating Lease Section of the Global Inputs Sheet Selection of either checkbox will accomplish the same result An Operating Lease is structured so that the Leasing Company the Leasor takes title to the project s assets on the Leasor s books As a result the Leasor is able to capture all of the associated tax depreciation at the Leasing Company
232. n o The NEW COMPARISION file which you will name that quantifies and highlights the fields that have been changed Revised 7 14 03 Page 50 EconExpert DG Users Manual Copyright 2001 2005 Note that o The Target and Reference models MUST each have at least TWO available windows and o The Target and Reference models MUST have different names AND BOTH MUST BE ENABLED o Comparisons will show the difference of the Target Model MINUS the Reference Model Copies of the each of the respective Input and Results Sheets from the Target model will be created in the COMPARISON file All changes will be quantified and HIGHLIGHTED on an ORANGE Background The names of the cases that have been compared will appear in the NOTES section of the COMPARISION FILE Global Inputs Sheet Once initiated you will not be able to terminate this macro until it is completed m Import Data EconExpert DG 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 have received an update or upgrade to the model and need to easily transfer data to the new version without having to manually re enter the data If this option is selected the model will guide you through the steps to initiate the data transfer Typically all formula references that you use in either the input cells and the yellow free form sections at the bottom of each table
233. n of the Annual Inputs Sheet allows the user to evaluate the impact of Ratchets if they apply The user may specify the 3 month average amount of the demand ratchet in kw which will apply during each respective quarter resulting in a calculation of additional demand charges by EconExpert DG in the months where non zero ratchets are identified Revised 7 14 03 Page 184 EconExpert DG Users Manual Copyright 2001 2005 d Time of Use Wizard While commercial customers typically receive their electric bills on a monthly billing cycle costs for electric use are usually computed based on time of use with the lowest rates for electric energy consumption applied during off peak demand period and progressively higher rates applied as system demand increases through mid peak on peak and super peak periods The corresponding block time periods when these tiered rate structures apply and the rates charged during those periods usually then vary as a function of the time of day day of the week and season of the year Since the customers use of electricity and potentially their need for DG may also vary as a function of the time of day day of the week and season of the year the ultimate calculation of the electric bill is the result of a relatively complex set of calculations Similar to the variation of the cost of electricity as a function of the corresponding time of use some utilities also have monthly or seasonal variations in their demand char
234. nExpert Explanation of how EconExpert uses two operating windows Worksheet Tabs Descriptions of the purpose and functions of each of the 26 Worksheets included in EconExpert DG About EconExpert DG Extending My License Important information regarding the EconExpert DG copyright how to contact CEI and how to enable or extend a license to the model Revised 7 14 03 Page 53 EconExpert DG Users Manual Copyright 2001 2005 b Help Comments Individual input cells and tables throughout the EconExpert DG Model include Comments that provide helpful 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 DG UTILITIES Menu 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 This Help Comments feature can be DISABLED by selecting UTILITIES Show or Hide Help Comments in Cells Hide All Comments If disabled Comments can ENABLED from this same Show or Hide menu option Figure 29 Example of EconExpert DG s On Line Help Comments EG Microsoft Excel EconExpert DG Proforma V4 0 1495 UPGRADE xis 1 E e xj OSB FLCTE I G E E E a DB Arial 8 A s B z u EBE B s
235. nado Diagram 00 0 ee eeeeeseeseeeseeececssecaecseceseceseceseesseeeseeseneeeaeeeaeeeaaecaaecsaecsaecsaeenaeenseenes 175 Figure 89 Example of Free Form Sections at the Bottom of Each Sheet cece eeeeseeseecneeeneecesecsseceseenseeees 176 Figure 90 Comparing Data Files Highlighting of Inputs that Changed eee eeeeseeseeeneeeneecesecesecnseenseeees 181 Revised 7 14 03 Page 10 EconExpert DG Users Manual Copyright 2001 2005 Page Intentionally Left Blank Revised 7 14 03 Page 11 D EconExpert DG Users Manual Copyright 2001 2005 Introduction and Overview of the EconExpert DG Model Thank you for choosing EconExpert DG the first Truly Universal Financial Proforma for the Distributed Generation DG Combined Heat and Power CHP and Energy Service Company ESCO Industries EconExpert DG is a sophisticated and highly flexible spreadsheet developed in Microsoft Excel to be used for performing financial analysis of Inside the Fence Distributed Generation and Energy Savings projects using virtually any technology type and in any country in the world EconExpert DG now includes the Time of Use Wizard allowing users to perform analyses of time of use related operations and tariff data further expanding the model s range of capabilities The EconExpert DG model developed by Competitive Energy Insight Inc CED a California Corporation with offices in San Diego is a copyrighted product that has evolved
236. ncrease because he or she assumes partnership liabilities this increase is treated as a contribution of money by the partner to the partnership If a partner s share of partnership liabilities decreases or a partner s individual liabilities decrease because the partnership assumes his or her individual liabilities this decrease is treated as a distribution of money to the partner by the partnership Assumption of liability A partner or related person is considered to assume a partnership liability only to the extent that o He or she is personally liable for it o The creditor knows that the liability was assumed by the partner or related person o The creditor can demand payment from the partner or related person o No other partner or person related to another partner will bear the economic risk of loss on that liability immediately after the assumption Guaranteed Payment Guaranteed payments are those made by a partnership to a partner that is determined without regard to the partnership s income A partnership treats guaranteed payments for Revised 7 14 03 Page 200 EconExpert DG Users Manual Copyright 2001 2005 services or for the use of capital as if they were made to a person who is not a partner This treatment is for purposes of determining gross income and deductible business expenses only For other tax purposes guaranteed payments are treated as a partner s distributive share of ordinary income Guaranteed payments are not s
237. nd other project specific agreements The Sensitivities Risks and Opportunities associated with future markets amp changes in markets And More With EconExpert DG you can fully quantify evaluate understand communicate capture the benefits in and manage the risk associated with all of these critical considerations allowing you to close more deals to make more profit on the deals you close and to assume less risk EconExpert DG will allow you to model DG CHP ESCO projects from the perspective of ANY party to the deal including the client host the developer the bank or leasor the equipment supplier or the fuel supplier allowing you to fully quantify and understand the economic impacts of fuel prices utility tariffs and the customer s demand profiles for electric and thermal energy By integrating these issues EconExpert DG allows you to fully understand and optimize the project economics maximizing profit and minimizing risk And now using our POWERFUL Tariff Model you can fully understand and model the economics of any Utility Tariff or combination of tariffs in the U S including detailed Special Conditions By fully understanding and quantifying the complete economics from the perspective of every participant in the deal not only will you be able to better focus on the right deals to better quantify and communicate the deal to the customer and to better manage risk but most importantly you will more fully capture the value in t
238. ner the asset will be depreciated on the owner s books using straight line deprecation over the remaining asset life The following four criteria must be satisfied for a lease to qualify as an Operating Lease Revised 7 14 03 Page 89 EconExpert DG Users Manual Copyright 2001 2005 e The lease does NOT transfer ownership to the Leasee at the end of the term e The lease does NOT contain a Bargain Purchase option e The lease term is NOT equal to or longer than 75 of the economic life of the asset e The present value of the lease payments does NOT equal or exceed 90 of the fair value of the leased property If any of these criteria are not satisfied the lease is a Capital Lease and so must remain on the books of the customer Please Consult your Tax Advisor to confirm this information iii Carry Forward Tax Losses Global Inputs EconExpert allows you to capture tax losses in the current year or to carry them forward to be applied against future project earnings Sometimes reported tax losses may be larger than the amount of net taxable income realized by the owner This situation can commonly occur if Production or Investment Tax Credits are applied as the resulting accelerated depreciation can result in a very large tax write off in the first year of operations If the tax write offs in any year of the project are greater than the applicable taxable income then IRS will require those losses to be carried forward Ho
239. nized as follows Revised 7 14 03 Page 82 EconExpert DG Users Manual Copyright 2001 2005 Table 9 Income Statement The Income Statement is used to calculate Net Income Revenues minus expenses deprecation and taxes for the Project using Book Accounting Methods Table 9A Cash Flow Statement The Cash Flow Statement identifies sources of project cash and amounts available for potential distribution to the Owner Table 9B 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 EconExpert DG 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 9 18 Table 10 Cents per kwh Table 10 provides costs and revenues calculated in cents kwh during the operations phase These calculations are performed by dividing the annual revenues and expenses by the net annual power generation from the DG facility Table 10 includes the following expressed in Escalated current cents kwh Revenues by category including savings energy sales capacity sales and other revenues sources Operating Costs by category including individual contributions to fixed and variable operating costs Debt Service Lease Expenses including a breakdown of Primary and Su
240. nput Sheet Tornado Diagram Cogen Plant Operations Fuel and Operating Cost Related Inputs 2 z x TORNADO DIAGRAM Cogen Plant Operations Fuel and Operating Cost Related Inputs Tornado Diagrams help you to identify which economic parameters nputs if they were to change would have consequential impacts on the analysis They illustrate how the IRR of the Project will be impacted by changes in order or significance This provides valuable insight into which parameters might warrant further investigation to determine how changes would impact the economic case you have set up This Data Entry Form allows you to select the ranges that you would like EconExpert to evaluate in a Tornado Diagram that will illustrate the impacts of Cogen Facility Fuel Use Operations and Maintenance Related Inputs on your proforma For example if you enter 20 for Cogen Plant Fuel Cost or Use the corresponding Tornado Diagram will show you how the IRR of your project would be impacted by a plus or minus 20 change in the Fuel Use or Cost for the Cogen Facility for the Current Case NPW and Payback impacts will also be calculated and can be alternatively plotted on the diagram Please note that due to the nature of timing and discount rate effects on the IRR and NPY calculations the ordering of consequential impact of the parameters on the respective IRR and NPY Tornado Diagrams may be different for the same base case Enter the Variation in Each Parameter to be used
241. nputs Sheet that data will be overridden by values transferred to the Annual Inputs Sheet Table 1 Project Global Inputs and Table 1C Project Annual Inputs provide a flexible input structure for entering Forward Energy Pricing data The Figure below provides a screen shot of the Monthly Data Table Figure 68 The Monthly Data Table File Edit View Insert Format AN Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES Lh HELP ENABLE MODEL B G H E e A SPHE i EconExpert DG V3 0 1476 Copyright 2001 200 2003 amp L_ bil x 2 Conversion of Monthly Power and Energy Price p s Monthly Data seeinstructions in Condy a Monthly Data Input Table For Conversion of Mont 10 Year Number 6 ra 8 1 Year 2003 2010 2011 12 13 Site Electric and Gas Demand Excluding DG 14 Peak Site Total Electric Energy Demand kw 15 Janua 1 900 1 900 1 918 1 936 1 973 1 992 2 011 2 030 17 March 2 100 J 0 18 Apri 2 000 2 000 019 2038 2077 W 209 ar 2 137 20 June 1 800 1 800 8 1 834 1 905 21 July 4 600 4600 4615 1630 1661 477 1692 1 708 22 August 4 800 4e00 fT aaa7 14 834 14 869 1 887 1905 1 923 23 September zoo zooj trae raz ares agze2 roa 1 815 25 November 1 600 1 600 1 630 1 661 1 692 1 708 26 December 4 460 1450 1464 aar 450571519 T4533 1 547 27 Annual Peak 2 200 2 200 2 221 2 242 2 285 2
242. nt True After Tax Payback on Cash Flow 5 4 Years 7 1 Years Cocwriath 2004 CEI Inc All Riahts c Save or Reset Inputs This is a valuable feature in EconExpert DG It allows you to store input sheets to Holding Bins and then 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 Example DG Case that is documented in the Appendix to this User s Manual You can also reset or clear the Global or Annual Input Sheets and the Custom Construction Drawdown Schedule Options under Save or Reset Inputs include e Display Contents of Holding Bins This option allows you to view the contents of the various Holding Bins described below The Holding Bins are used to store copies of the respective Global Inputs Annual Inputs Monthly Data and Simplified Inputs 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 option An example of the window that EconExpert DG creates to inform you about the current contents of the Holding Bins is provided below Revised 7 14 03 Page 39 EconExpert DG Users Manual Copyright 2001 2005 Figure 26 Example Display of Current Contents of Holding Bins EconExpert DG Contents of Active Shee
243. nt on annual electric power production Two User Defined categories are available in the Global Inputs Sheet Revised 7 14 03 Page 190 EconExpert DG Users Manual Copyright 2001 2005 VI Special Insert Table 1P Partner Return Calculations Table 1P Partner Returns and Table 11P Partnership Financials are architected to model various schemes that might be written into a partnership agreement This module is designed to model most partnership arrangements and to provide automated calculations to support those arrangements Also proper capital account tracking and individual tax treatments are used Please refer to the Glossary at the end of this section for any terms that are unfamiliar to you Figure 91 Table 1P Partner Returns File Edit View Insert Format Tools Data Scenario Master Window Help ENABLE LP MODEL NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP Adobe PDF t 2 8 B10 z fe CEI Inc a Click Here to esa Mene Mesu Partner Leveraged Results for 30 Year Project 000 Year of NPV and IRR Summary Ses Table 1P Partner Returns Project Life 30 Years 16 Today is 03 31 2006 Developer Tax Investor Other Total 1 Total Initial Investment 5 435 574 18 of Initial Partnership 30 0 70 0 0 0 100 0 13 Post Tax NPY 10 0 126 478 295115 384 155 20 Post Tax IRR 32 9 32 9 21 1 21 26 Taxable Income Loss Account Minimums Optional 28
244. nt tax Figure 92 Table 1P Partner Returns Tax Rates Table 1P Partner Returns November 2 2005 Warning Negative Capital Account Warning Negative Inside Basis Developer Tax Investor All Figures in 000 Table 1P Partner Returns Year of Operation Year In the Figure above please note that the Pane is frozen which is why the Tax section appears next to the Warnings The tax rates are applied on lines 263 406 in the cash flow calculations for each partner Taxable Loss Appetite Additionally partners have their own tax appetite which is called the External Partner Taxable Income in Table 1P If a partner has any ability to utilize taxable losses at the federal or state level simply specify No for the Taxable Loss Carry Forward If their tax appetite is limited specify Yes for the Taxable Loss Carry Forward and then enter the federal or state tax appetite in rows 179 192 These entries are values that are outside of the modeled wind project If the partner s tax appetite is unlimited you can leave these entries blank and if no taxable loss carry forwards are assumed then all tax benefits will be assumed in the current year NPV and IRR Calculations At the top of Table 1P the after tax IRR and NPV for each defined partner is shown along with their initial capital contributions and Capital Share of the project The calculations for the NPV and IRR are t
245. o 260 Year of Financial Closing 6 00 Construction Term mos For Acquisitions enter 0 24 months Max 33 Interest Rate EarnedonEscrowedFunds 2 Project Life Years 20 Max Equity and Debt Percentages i Debt Financial Closing Date During Construction 50 0 Start of Operation During Operations 50 0 Retirement Date Quarterly Performance and Pricing Data Q2 Apr Jun Q3 Jul Sep Site Electric and Gas Use and Demand WITHOUT DG Annual Change s 8 a Maximum Total Site Electric Energy Demand 3 Month Average kw Site Displaceable Non Chiller Electric Consumption 1000 kwh period Electric Chiller Power Consumption 1000 kwhiperiod Site Displaceable Thermal Use 1000 Therms Period DG Plant and Absorption Chiller Performance 55 Net DG Plant Electric Generating Capacity kw 1 800 Waste Heat from DG Available For Non Chiller Thermal Use Therms hr 100 0 a Engine Average Operating Heat Rate Btukwh net c OR 10 000 Ig DG Plant Gross Avg Fuel Input Therms hr HHY Basis Heat Rate Used Heat DG Plant Capacity Factor in Each Quarter ks 80 0 li so Calcluated DG Plant Electric Generation 1000 kwhiperiod aes o o Excess Production 3180 g Maximum Coincident Electric Chiller Demand Displaced by Waste Heat A Month Awerane in ksn 367 300 400 i Astar Gs E gt D E EconExpert
246. obal Inputs Following the Capital Investment Cost table the user is provided with the option to recover a salvage or terminal value on the plant investment at the end of the Project Life The salvage value is specified either as a amount or as a percentage of the original plant basis This input is shown in the Figure below Figure 53 Salvage Value at the End of the Project Life Salvage Value Amount _ of Capital Cost Calculated Salvage Value 10 0 485 500 If a plant salvage is included the of the plant basis that is depreciated should either be reduced by the percentage of the salvage value or a capital gains tax should be specified to be applied against the lump sum income that is recovered against a fully depreciated asset xxvii Financing Global Inputs EconExpert DG lets you choose from multiple financing options including e Debt Equity Financing e Capital Leases e Operating Leases xxviii Permanent Financing Global Inputs Permanent financing or a Capital Lease can be divided into two parallel Tranches each with its own financing terms Terms entered here will apply to the life of the lease or loan A Capital Lease normally provides 100 financing A Capital Lease is structured much the same as debt so that the Owner the Leasee holds title to the project assets on their books As a result the owner will capture all of the associated tax depreciation Often times a Capital Lease will provide
247. od WITHOUT DG Global Inputs These are the quarterly total amounts of thermal use supplied by natural gas or other fuel in each quarter consumed at the site without DG operational in 1000 Therms quarter The values entered in each quarter will be used to calculate the heat consumption at the site in Therms period and the amount of waste heat that can be displaced by the CHP Facility If waste heat use is not expected to be constant or is not expected to increase at a constant annual rate over the life of the project annual waste heat usage rates can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu v Net DG Plant Electric Generating Capacity kw Global Inputs This is the net Capacity of the DG Plant in kw It is also the basis from which Demand Charge Savings and Standby Charges will be calculated as it represents the incremental demand reduction at the site or the incremental amount of stand by power that the site will require if the DG Plant experiences an unscheduled forced outage Net Electric Production will be calculated based on the net capacity and the capacity factor If the Net Capacity is not expected to be constant over the life of the project annual values can be entered or calculated in Table 1C Project Annual Inputs Monthly NET Capacities can also be
248. of waste heat from the CHP Facility Tariff Data Basis of Savings and Revenues Due to DG Monthly Data iv Cost of Electric Energy Purchased from Utility c kwh WITHOUT DG From the UTILITY Tariff this is the monthly average value displaced electric energy purchases from the utility in each period expressed in current cents kwh under the tariff that applies WITHOUT DG This is the monthly weight averaged or aggregate Power purchase price based on the amount of power usage at each specified rate So the quarterly average power price should reflect the cost of power purchased during on peak mid peak and off peak conditions etc during that month and the amount of power used under each of those respective periods Revised 7 14 03 Page 140 vi Vii EconExpert DG Users Manual Copyright 2001 2005 Values entered here will be aggregated to quarterly values that can be automatically reference in the Annual Inputs Sheets Cost of Electric Energy Purchased from Utility c kwh WITH DG Monthly Data This is the monthly average value displaced electric energy purchases from the utility in each period expressed in current cents kwh under the tariff that applies WITH DG operational This is the monthly weight averaged or aggregated power purchase price based on the amount of power usage at each specified rate So the quarterly average power price should reflect the cost of power purchased during on peak mid peak
249. omatically 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 DG Command Menu Each of the Tornado Diagrams must be individually generated 22 Graphs Current Case 6 7 Two worksheets in EconExpert DG provide the graphical results that are produced for the current case in the model Graphs on these sheets are updated each time the spreadsheet is calculated This will occur automatically if the Excel Calculation setting is set to Automatic when F9 is pressed or whenever a Current Case Graph is printed using the EconExpert DG Command Menu It is not necessary to execute a macro from the EconExpert DG Command Menu to update these graphs Revised 7 14 03 Page 84 EconExpert DG Users Manual Copyright 2001 2005 D Inputs to the EconExpert DG Model Five options are available for data entry into the EconExpert model O Table 1 Project Global Inputs is the only input sheet that you will ALWAYS use when running the model Table 1 uses values that typically apply and may escalate or increase at a constant annual rate over the life of the project Simplified Inputs This sheet allows you to set up the model using a minimum number of inputs EconExpert DG will make simplifying assumptions for you which are described in the User s Manual or under the explanation of the Simplified In
250. on TIA 0 eration During Operations 50 0 Ea pate Q P orman nd Pricing j ic and Demand Quarterly Average Peak Site Electric Eggy Deed kw ___ 207 10 Site Displaceable Electric Consumg Bn 1000 kwhfperiod Excluding Chj O F tox CY 5 L Cm a oo UU e DG Plant re ER PE 7000 j 2 000 x Mao E able 1 Project Annual Inputs F Table 2 2Summary Table 3 Construction Table 4 Operating Costs Table 5 Debt Se aon of Ready NUM The Worksheet Tabs are listed below and described individually in more detail in the pages that follow License This sheet includes the EconExpert DG Software License Agreement Users are required to acknowledge acceptance of the License Agreement in order to enable the model You can print the license by clicking either of the two buttons at the top of this sheet The license can be accepted or declined by clicking on the buttons at the bottom of the License Agreement Title This is the EconExpert DG Title Sheet and Copyright notice You may link directly to the CEI EconExpert Website http www CEInsight comby clicking on the Revised 7 14 03 Page 55 EconExpert DG Users Manual Copyright 2001 2005 EconExpert Logo shown on the Title Sheet Information on how to contact CEI is also provided Status This sheet provides you with valuable information on the status of the current setup of the model Potential conflicts between inp
251. on peak mid peak off peak conditions and super off peak periods etc during that month and the amount of power used during each of those respective periods If the cost of electric energy purchased from the utility is not expected to be constant or is not expected to increase at a constant annual rate annual Electric Energy Cost values can be entered here xiii Cost of Electric Energy Purchased from Utility c kwh WITH DG This is the value of displaced electric energy at the site WITH DG in cents kwh This is the quarterly weight averaged or aggregated power price based on the amount of power displaced during each period at the corresponding time of use rate If needed this aggregated value can be estimated using the Time of Use Wizard The quarterly average power price should reflect the cost of power purchased during on peak mid peak off peak conditions and super off peak periods etc during that month and the amount of power used during each of those respective periods If the cost of electric energy purchased from the utility is not expected to be constant or is not expected to increase at a constant annual rate annual Electric Energy Cost values can be entered here xiv Demand Charges for Maximum Metered Power kw mo WITHOUT DG Annual Inputs These are the Demand Charges WITHOUT or Prior to DG Demand Charges are reflective of the maximum meter reading experienced by the customer during the target period Often t
252. onExpert DG is Enabled 39 M 4 gt Di License Title Status Sensitivities Project Summary Tariff Wizard Monthly Data f Simplified Inputs Table 1 Project Global Inputs Table 1 _ sh T Drawy Autoshapes a OB 42H B o 4 A Sz 2Qq e Step 8 The EconExpert DG Command Menu will appear at the top of the screen You are ready to go To begin using the model simply select the Click Here button to enter the spreadsheet Remember that after saving the model the Div 0 notation will appear throughout the model To enable EconExpert DG select ENABLE MODEL Enable EconExpert from the EconExpert DG Command Menu Congratulations You are now ready to use EconExpert DG Final note If your Display Setting in Windows is set at other than the setting of 1024 x 768 Pixels recommended for EconExpert DG 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 DG from the default value of 50 If you do not choose to change the EconExpert DG Zoom settings when this message appears you may do so later by selecting UTILITIES Table Viewing Format Set Table Zoom Setting on the EconExpert DG Command Menu Revised 7 14 03 Page 27 V EconExpert DG Users Manual Copyright 2001 2005 Features of the EconExpert DG Model EconExpert DG is equipped with a variety of specialized features to expand its funct
253. operating expenses Input summaries and intermediate calculations are displayed at the top of the sheet leading to a summary table Table 4A at the bottom of the sheet Table 5 Debt Service or Lease o Debt Equity Financing or Capital Leases This sheet provides parameters for two tranches of debt and resulting computations of debt service requirements or capital lease payments Debt or Capital Lease terms can be customized to include interest only payments accelerated or deferred principal repayments and variable interest rates o Operating Leases If the Operating Lease switch is selected in Table 1 Lease Payments for an Operating Lease are alternatively provided Table 6 Revenues amp Savings This sheet provides calculation of energy demand and thermal expenses with and without DG and of any other revenues associated with sales of excess heat or power etc Input summaries and intermediate calculations are displayed at the top of the sheet leading to a summary table Table 6A at the bottom of the sheet Table 7 Cash Flow This sheet provides calculations of the Net Cash Flow before tax income taxes and Net Cash Flow after tax on a leveraged basis i e including all debt Depreciation is reported from Table 11 and resulting state and federal income taxes Revised 7 14 03 Page 57 EconExpert DG Users Manual Copyright 2001 2005 capital gains taxes and tax loss carry forwards are calculated Net Cash Flow is rep
254. 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 Model 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 DG 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 DG Trademark and copyright notices as provided by
255. orted during the construction phase and operating phases of the Project Calculations of revenues minus expenses deprecation and taxes are provided to be used in the calculations of before and after tax Net Present Value NPV to date of financial closing and Internal Rate of Return IRR Table 8 Returns This sheet provides calculations of before and after tax Internal Rate of Return IRR Net Present Value NPV and Payback using the results from Table 7 Cash Flow Table 9 Financials This sheet provides the Project s Income Statement Cash Flow Statement and Balance Sheet using Generally Accepted Accounting Practice GAAP accounting format Table 10 Cents per KWH This sheet provides computation of revenues and expenses expressed in cents kwh including a Sources and Uses Statement expressed in cents kwh Table 11 Depreciation This sheet provides detailed itemization of depreciation expenses for book and for cash purposes including depreciation on the Initial Capital Investment The user can also enter custom depreciation schedules as alternatives to the programmed US IRS MACRS schedules Custom schedules might be utilized for projects outside of the US Graphs Sheets The remaining sheets provide graphs illustrating results for the current case and for automated sensitivities and tornado diagrams that can be run for the current case Expanded discussions of the individual tables follows Revised 7 14
256. ose adjustments must be made by the user in Table 1C after the data is transferred The quarterly values computed in this table can be automatically populated into the annual inputs sheet by selecting UTILITIES POPULATE WITH DATA FROM on the Command Menu Or you may reference the respective cells on this table from the Monthly Data or Annual Inputs sheets Figure 75 TW2B Projected Displaced Electric Chiller Consumption 1000 kwh period TW2B Start of DG Projected Displaced Electric Operations 11 01 03 Base Year Table TW2B is used to calculate the electric consumption that is displaced in each period based on the hours of operation and the DG plant capacity and the capacity and efficiency of the Absorption Chillers specified in Table TW2 above If the amount displaced will change during the project life annual changes in operating rates of the Absorption Chillers can be entered in any year If the rate of change of consumption is not constant across all periods in a given year the amounts must be manually adjusted after transferring the data in the Annual Inputs Sheet Annual changes are entered as a percentage increase or decrease from the prior year Revised 7 14 03 Page 155 EconExpert DG Users Manual Copyright 2001 2005 Figure 76 TW2C Projected Aggregated Cost of Electricity Purchased from Utilit with DG Operational c kwh Conversion of Time
257. otection back ON For Help on formatting graphs in Excel see the Excel Help Menu and perform a search for Charts Please note that when a graph is selected the EconExpert DG 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 h Show Hide Comments i J 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 Change the Name of the Company that Appears in EconExpert DG Reports You can temporarily change the name of the company that will appear in the reports that are generated from the EconExpert DG menu When you reinitialize the model the name will be reset to the default value of the company that the model is registered to Create Values Only Spreadsheet From the UTILITIES MENU or from the EconExpert DG HELP Menu you can create a Values Only copy of the current EconExpert DG case This Values Only copy of EconExpert DG can be shared with others who may not be licensed to use EconExpert DG It will not be possible to run new cases using the Values Only copy and once saved and reopened the EconExpert DG Command Menu will have limited functionality Revised 7 14 03 Page 45 EconExpert DG Users Manual Copyright 2001 2005 the NAVIGATE PRINT and HELP options will be Fully Functional No spec
258. oth are entered You can specify up to 5 categories of Phase 1 Development Costs Figure 51 Table 1 Project Global Inputs Development Costs Total Project Investment Costs i Phase 1 Development Expenses Not Escalated Developers Costs 50 000 Amount Factor Contingency Amount of above Sub Total Development Costs 50 000 Revised 7 14 03 Page 105 EconExpert DG Users Manual Copyright 2001 2005 Phase 2 Engineering Construction and Start up Costs Global Inputs 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 Debt Reserves Up Front Financing Fees Interest During Construction which are concentrated at the start or end of the construction phase are also entered here You can specify up to 5 categories of Phase 2 Costs The user may also add contingency as a percentage of the other Phase 2 Costs and as a fixed amount in the two entries will be summed if both are entered Soft costs can be estimated using a Factored amount and a amount If both are entered they will be summed Factored amounts are calculated as follows Start up Mobilization Costs Start up costs are up front expenses incurred to get the plant operational They can include f
259. ovides two forms of savings e Electric Energy Production from the Cogeneration Plant is used to offset Electricity Purchases from the Utility e Waste Heat from the Cogeneration Plant is used to offset consumption fuel used to generate hot water or steam Tri Generation includes a third option e Waste Heat from the Cogeneration Plant is used to operate thermally driven chillers Typically these chillers were originally electrically driven so additional electricity purchases are offset Relative to options 1 or 2 above o Electric consumption by the chillers is offset by the use of waste heat rather than direct self generation of electricity o Waste heat from the Cogeneration Plant is used to offset electricity purchases in addition to the offset of gas purchases used to produce hot water or steam To Select Tri Generation Simply Select the Checkbox in the Switches Section of Table 1 Project Global Inputs User Defined Inputs You may define your own categories of certain costs and revenues in either Table 1 or Table 1C The User can name each of two categories of both Variable and Fixed O amp M costs in Table 1 Project Global Inputs The titles you assign to each of these cost categories will appear on all of the associated tables and reports generated by the EconExpert DG model In Table 1C The User can name each of six additional cost or revenue savings categories Variable Costs Variable Operations and Maintenance costs are depende
260. per peak on peak mid peak and off peak remain constant Revised 7 14 03 Page 156 EconExpert DG Users Manual Copyright 2001 2005 6 The Time Related Demand Charge Wizard In addition to Time of Use Energy Pricing some utilities also have Time Related Demand Charges in their tariff Where applicable this will result in supplemental demand charges at certain times of the year based on the maximum demand during one or more Rate Blocks This Wizard can be used to calculate and incorporate time related demand charges into your analysis The annual savings computed in this table can be automatically populated into an available section of the Other Revenues and Savings Section the annual inputs sheet by selecting UTILITIES Populate with Data from the Monthly Simplified Data or Time of Use Wizard Sheets Transfer Time Related Demand Data to the Annual Inputs Sheet Option on the Command Menu Or you may reference the respective cells on this table from the Monthly Data or Annual Inputs sheets a Time related Demand Charges WITHOUT DG The figure below illustrates Table TW3 where the user can enter tariff and peak demand data associated with the site WITHOUT DG Figure 77 TW3 Time related Demand Charge Wizard Site WITHOUT DG TW3 Time Related Demand Charge Wizard Without DG Note that these are Usually Added to the Annual Non Time Related Demand Charges SCE TOU 8 Time of Use General Service Large WITHOUT Effect
261. projects using virtually any technology type The Tutorial is Self Guided and will provide you with options to skip major sections or to exit the Tutorial at numerous points IMPORTANT NOTE As you view the Tutorial please note that the Message Boxes that you are seeing can be dragged to alternate locations on the screen allowing you to view any data that might be hidden behind the Message Box Select OK to proceed The Tutorial will describe the following features of the model Command Menus and their Sub Menus Help Features Tips on Saving and Re enabling the Model Inputs and Important Features in the Model Worksheet Tabs and Tables in the Model Tips on Customizing the Model Information on How to Enable or Extend Your License to Use the Model When viewing the Tutorial you will be provided with options at various times to skip forward to a later section or to end the Tutorial Also note that in order to view information hidden Revised 7 14 03 Page 28 EconExpert DG Users Manual Copyright 2001 2005 behind the various message boxes you may click on the message box and drag it to any location on the screen B The EconExpert DG Command Menu EconExpert DG includes a Custom Command Menu that appears on the Excel Menu Bar to the right of the Excel Help Option The EconExpert DG Command Menu provides you with access to and control of the EconExpert DG Model s special functions and On Line Help Features The menu will be a
262. ptimal appearance Note that for the recommended Windows Display setting of 1024 x 767 Pixels 50 is the recommended Zoom setting in EconExpert DG If you have a lower resolution monitor and use a setting of 800 x 600 Pixels the recommended Zoom Setting in EconExpert DG is 40 You can check your Windows Display Settings in Windows by selecting Start Settings Control Panel Display 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 To change the Zoom Setting from EconExpert DG select UTILITIES Table Viewing and Format Set Table Zoom e Reformat Cells Because the sheets in EconExpert DG are protected you will not be able to change the cell formats from the Excel menu This option is 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 bold or italics type underline and Revised 7 14 03 Page 43 EconExpert DG Users Manual Copyright 2001 2005 column width of tables and cells in the model You can also restore any individual input sheet to its original format settings Revised 7 14 03 Page 44 f g EconExpert DG Users Manual Copyright 2001 2005 Trace Precedents or Dependents Debugging Your Model Subscribers to EconExpert DG will be allowed to vie
263. puts Sheet the user may enter the average quarterly gross heat input MMBtu hr based on the higher heating value HHV of the fuel If the plant will be cycled during the year this represents the composite average for the respective quarter If heat input is not expected to be constant over the life of the project i e due to performance degradation changes in operating philosophy upgrades to the project etc annual heat input entries can be entered in Table 1C Project Annual Inputs for each quarter If transferred to the Annual Inputs sheet the corresponding values will take precedence over any Heat Rate Inputs in the Global Inputs Sheet DG Plant Capacity Factor in Each Month Monthly Data This is the percentage of the potential plant output that will occur during each month accounting for number of hours in service and level of operation when the facility is operated For example if the plant will be operated at full capacity during 50 of the hours in the period this entry would be 50 Similarly if the plant were to be operated at 50 capacity for the whole period the entry would also be 50 Revised 7 14 03 Page 139 ii iii EconExpert DG Users Manual Copyright 2001 2005 Maximum Coincident Electric Chiller Demand Displaced by Waste Heat kw Monthly Data These inputs can be used ONLY if the Tri Generation Switch is selected The inputs should reflect the amount of chiller electric energy demand that c
264. puts sheet located in the EconExpert DG Help menu Table 1C Project Annual Inputs uses values entered for a given year The user my selectively customize the results obtained for any Global Input or may introduce new categories of inputs into the model Non Zero entries in Table 1C will either be added to or will override their counterpart Inputs to Table 1 in the years that the non zero entries appear Monthly Data This sheet allows you to enter data directly from the Customer s electric and gas bills The Monthly data you enter will be aggregated into quarterly equivalents for import or reference into the corresponding locations in the Global or Annual Inputs Sheets for use by the model An automated macro located on the UTILITIES Menu can be used to Populate the aggregated Monthly Data into the correct locations Time of Use Wizard The Time of Use Wizard allows you to more fully evaluate the time of use related pricing elements of individual utility tariffs Using this tool in combination with the Table 1C Project Annual Inputs you can break each month down into block pricing periods i e off peak mid peak on peak etc for the purposes of analyzing time related energy and demand charges The Time of Use Wizard is described in more detail on page 145 Revised 7 14 03 Page 85 EconExpert DG Users Manual Copyright 2001 2005 1 Discussion of Individual Inputs to Table 1 Project Global Inputs Table 1 is the only input table
265. r Defined Additional Annual Expenses 2 User Defined Additional Annual Expenses 3 User Defined Additional Annual Expenses 4 i User Defined Additional Annual Expenses 5 User Defined Additional Annual Expenses 6 Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Costs added to do not override Table 1 Global Inputs Di gt gt gt gt gt gt These fields are freely available to the user but will be over ridden if data is imported from the Tariff Model into EconExpert DG If this procedure is initiated and there is a risk of data being replaced the user will be notified with a warning Revised 7 14 03 Page 131 EconExpert DG Users Manual Copyright 2001 2005 g Debt Service or Capital Lease Custom Principal Payments or Interest Rates Financing Permanent financing Capital Lease or Debt can be divided into two parallel Tranches of debt each with their own financing terms If special financing terms are required such as variable interest rates or accelerated principal payments those amounts can be entered as Annual Inputs and so will override the amounts entered here If the quarterly interest rates or principal payments do not follow a standard fixed rate mortgage repayment schedule over the
266. r of Operation Year 2 3 Description 2004 2005 2006 20 5 6 Months of Operation During Year Annual Inputs Holding Bin is not labled 12 12 12 7 Green Shaded Cells are Input Locations Orange Shaded Cells are also used by Tariff Model x 8 All Annual Inputs expressed at values are entered in Current Proforma Hotes Empty Cells or entries of 0 will result in Global Inputs being used in the anne of associated gear Otherwise unless otherwise indicated Annual Inputs 9999999 override Global Inputs in the gear that theg are entered Enter a verg biari small number such as 0 000001 if you would like to override the Global Pees ae Input with an Entry equivalent to 0 h P ave been Annual inputs are used Literally that is theg are not atomically beta ache adjusted for partial gear operation or escalation TEREA tee 3 10 Escalation 11 General Inflation Rate for Revenues amp Expenses 20 Site Electric and Gas Use and Demand WITHOUT DG 21 Maximum Total Site Electric Energy Demand 3 Month Average kw 22 Q1 Jan Mar 23 Q2 Apr Jun 001 24 Q3 Jul Sep 25 Q4 Oct Dec 26 3 Site Displaceable Non Chiller Electric Consumption 1000 kwh period 34 Q1 Jan Mar 0 35 Q2 Apr Jun 0 36 Q3 Jul Sep 0 37 Q4 Oct Dec 0 38 Electric Chiller Power Consumption 1000 kwhiperiod Selected 46 Q1 Jan Mar 47 Q2 Apr Jun 0 48 Q3 Jul Sep r 49 Q4 Oct Dec 0
267. r services actually rendered to or on behalf of a partnership engaged in a trade or business Revised 7 14 03 Page 201 EconExpert DG Users Manual Copyright 2001 2005 e Ifan individual partner has net earnings from self employment of 400 or more for the year the partner is liable for self employment tax Distributive Share e Generally the partnership agreement determines a partner s distributive share of any item or class of items of income gain loss deduction or credit However the allocations provided for in the partnership agreement or any modification will be disregarded if they do not have substantial economic effect If the partnership agreement does not provide for an allocation or an allocation does not have substantial economic effect the partner s distributive share of the partnership items is generally determined by the partner s interest in the partnership Substantial Economic Effect e An allocation has substantial economic effect if both of the following tests are met e There is a reasonable possibility that the allocation will substantially affect the dollar amount of the partners shares of partnership income or loss independently of tax consequences e The partner to whom the allocation is made actually receives the economic benefit or bears the economic burden corresponding to that allocation Partner s Interest in Partnership e Ifa partner s distributive share of a partnership item cannot be determined
268. rchasers will be provided with 30 days of free technical support and access to all updates issued during the term of their Software License Rates for a subscription can be quoted by CEI All users of the EconExpert DG model will be required to acknowledge their acceptance of the EconExpert DG Software License Agreement in order to fully enable the model Please see the Getting Started Section for an additional description on how to accept the Software License A copy of the License is included on the License Sheet in the Model and in the Appendix of this User s Manual If you open EconExpert DG 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 DG 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 Don t wait for your license to expire 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 DG experiences problems this feature may also be used to revalidate a current license If you forward copies of EconExpert DG to others who do not have an active license the model you send them can be enabled as a Fully Functional Model by CEI using these License Codes If others attempt to open a model and they are not unauthorized they will be advised how to con
269. rgy Cost values can be entered in Table 1C Project Annual Inputs This rate is usually the energy price WITHOUT DG but if there is a change in the tariff it is the resulting value of the energy that is displaced Revised 7 14 03 Page 98 EconExpert DG Users Manual Copyright 2001 2005 Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu xiv Cost of Electric Energy Purchased from Utility c kwh WITH DG This is the value of displaced electric energy which the DG facility will displace expressed in cents kwh This is the quarterly Weight averaged or aggregated power price based on the amount of power displaced during each period at the corresponding time of use rate If needed this aggregated value can be estimated using the Time of Use Wizard The quarterly average power price should reflect the cost of power purchased during on peak mid peak off peak conditions and super off peak periods etc during that month and the amount of power used during each of those respective periods If the cost of electric energy purchased from the utility is not expected to be constant or is not expected to increase at a constant annual rate annual Electric Energy Cost values can be entered in Table 1C Project Annual Inputs This rate is usually the energy price WITHOUT DG but if there is a change in the tariff it is
270. rly Format used in the Global Inputs Sheet and or you can automatically reference the Projected Data in Quarterly Format in the Annual Inputs Sheet For additional explanation of the Time of Use Wizard see page 145 D Compare EconExpert DG Files to Identify Changes EconExpert DG offers two very powerful options for comparing different cases and quickly understanding the changes and differences between those cases The options are i Comparing Input Sheets You can compare the INPUT SHEETS for two different cases to identify which inputs have changed 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 This feature allows you to compare each input category and identifies which specific input categories have been modified or changed A new worksheet is created with copies of all of the input tables in the model with the changed items highlighted on an orange background Please note that this is a memory intensive procedure It is recommended that you close all other applications and workbooks before proceeding The procedure will involve three spreadsheets o The Target EconExpert DG Model is the model that you want to identify the changes in The Target model MUST be opened FIRST The Macro should be initiated with the Target Model S
271. rma sls You may save or copy to file to any drive or directory accessible to your computer Select OK to Continue EconExpert DG will be saved to your C Drive to store the installation settings for your use This saved copy of the model will include all of the installation settings When you reopen it you will not be required to repeat the installation process Select OK and the following screen will appear Figure 9 EconExpert DG Copyright Notice Screen EconExpert DG 5 0 1654 Copyright 2001 2002 2003 CEI Inc All Rights Reserved Welcome Steve Provol of Competitive Energy Insight Inc The current Date is 07 09 2003 Your License is valid until 02 10 2004 Remember to save your work frequently and to ALWAYS CAREFULLY CHECK the results produced by the model When you use this model you are bound by the terms of the EconExpert Software License Agreement Copyright Notice EconExpert DG is protected by copyright law and international treaties Unauthorized use modification reverse engineering reproduction or distribution of EconExpert DG 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 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 Also note that the Recalculation Feature on Excel will be set to Automati
272. rt Form Tools Data Window ti Aob NAVIGATE PRINT SENSITIVITIES UTILITIES Fron pert HELP ENABLE MODEL swiss cr s An SUE ERS B4 F eS O A HERE ee Sle Srnatmhoss v r NPV ater Taw RR After Tox 10 Yeors at Lala ered 10 Yon 25 Ciscon a oo Sey ae ELN 6 i Downside Deltas NPY Alter ton Aner Tax Annan Capmcty Factor ife at project agja 891 14 5 0 Cogan Annual Fuel Price 3 yr avg 3U 390 Therm i 9 0 V XBB Slo e HRB OM gt GABMET mA WP ga Se gra eae eer E aris os J AB UES ex 2a ee o o A s ORR SEH 4 SiS ers BOs 46600 3 RIS a 3 anA 2m 2m 4 276 23 Case Sore 100 10 3 is 3 mse 3 rossi RR Anter Tax 10 Yours Rey Ae toe 10 Yor ot 80 Dirau Rate Revised 7 14 03 EconExpert DG Users Manual Copyright 2001 2005 5 Project Summary This sheet provides a one 8 1 2 in x 1 lin report summary of key project parameters Project Highlights that are provided include e IRR NPV and Payback Summary Project Operating and Fuel Parameters Project Schedule Investment Costs Energy Pricing Fuel Pricing Sources and Uses of Operating Funds in cents kwh e Cash Flows The figure below provides a screen shot of the top section of the Project Summary Sheet Figure 35 Project Summary Sheet E Microsoft Excel EconE xpert DG Proforma VBETA 3 0 1438 xts 1 RE DOSGH AR S6RAY SBR Slo o r 42M Box OAREAR aHa a File Edit Yie
273. run individual Sensitivities listed above The individual Sensitivity Tables and Graphs can be viewed from the Navigate menu or printed from the PRINT Menu o Run All Sensitivity Cases You can run all of the programmed 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 The complete model will be calculated almost 150 times to develop all of the desired cases It is 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 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 AND TORNADO DIAGRAMS as shown in the following figure Figure 20 Inputting the Term of Sensitivity Analyses or Tornado IRR TERM FOR Ho Annual inpute sad NPV IRR and Payback Summary SENSITIVITY STUDIES After Tax AND TORNADO DIAGRAMS Term 5 7 10 IRR After Tax 23 79 30 36 34 73 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 273 668 2 417 894 4 408 444 sj On Equity On Total Capital Investment Payback 2 6
274. s In reality capital account values can change with more frequency e g quarterly or monthly but in this model all capital account changes are assumed to occur annually By selecting this option the end of year cash distributions will be paid to each partner proportionally according to their end of year Capital Account values Profit Share Another option is to base the cash distributions on the designated profit sharing which is defined in the Allocations section under Taxable Income Loss and Depreciation Capital Share The third option is to set cash distributions to the amount of capital invested None The last option is to only use custom distributions which are done in lines 161 163 on Table 1P Custom distributions can also be used if any of the Cash Distributions options except for Maximum Cash are selected because there will be cash available that is not automatically distributed If the partnership agreement contains language about preferred returns then the user can put in formulas in these rows to reflect the preferred returns 7 Guaranteed Payments The language in the partnership agreement governs the flow of income and expense items through the partners capital accounts as well as items such as guaranteed payments that are not capital account items Guaranteed payments can either be a capitalized item or deductible for the partnership depending on the nature of the payment but are always a taxable event to the receiv
275. s This can provide advantages for the Leasee the Customer as the Leasee might not be able to as fully take advantage of the associated depreciation write offs The following four criteria must be satisfied for a lease to qualify as an Operating Lease e The lease does NOT transfer ownership to the Leasee at the end of the term e The lease does NOT contain a Bargain Purchase option e The lease term is NOT equal to or longer than 75 of the economic life of the asset e The present value of the lease payments does NOT equal or exceed 90 of the fair value of the leased property If these conditions are satisfied you may select this option and EconExpert will treat the lease as a fixed operating cost for book and for tax purposes If any of these criteria are not satisfied the lease is a Capital Lease and so must remain on the books of the customer The Operating Lease criteria are subject to review and approval by the IRS Please Consult your Tax Advisor to confirm this information Please note that if the Operating Lease option is not selected the Operating Lease section of this table will be grayed out and will be inactive in the model This checkbox is duplicated in the Switches Section of Table 1 Selection of either checkbox will accomplish the same result Revised 7 14 03 Page 110 EconExpert DG Users Manual Copyright 2001 2005 Figure 55 Table 1 Project Global Inputs Operating Lease Residual 1
276. s Manual Copyright 2001 2005 Sections of this table include Base Year and Start of Operations It is necessary for the Time of Use Wizard to be fully synchronized with the case modeled in the Global Inputs Sheet and so these values are determined from entries to the Global Inputs Sheet All escalation calculated by the Time of Use Wizard will be from the Base Year Rate Block A Rate Block or Time of Use Period corresponds to the time interval over which a certain pricing structure applies These default Rate Blocks i e Super Peak On Peak Mid Peak correspond to periods when rates will make step changes due to variations in system wide demand The user may rename these blocks to match the specified tariff Based on the applicable tariff there will be a characteristic number of hours that typically apply to each Rate Block in each month For example if the On Peak period is from 10 am 4 pm on weekdays in the month of January this would typically represent 6 hours day x 5 days week x 4 weeks month x 31 28 133 hours of on peak hours in a typical month of January Note that the actual number of hours will vary from year to year as a function of when the week starts so this represents an average for all January Period Maximum Demand kw This is the maximum demand established during the respective Rate Block during each month The corresponding charge is then used to calculate that Rate Block s contribution to the Time Relat
277. s and Maintenance Costs 1 to 6 Expensed Major Maintenance Fixed Operating and Maintenance Costs Variable Operating and Maintenance Costs e Revenues and Savings o Savings in Power Purchased from Utility o Revenues from Excess Power Sales to Utility o User Defined Revenue Categories 1 to 6 000000 0 00000 0 Revised 7 14 03 Page 167 EconExpert DG Users Manual Copyright 2001 2005 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 after tax Net Present Value NPV Internal Rate of Return IRR or Payback will be impacted by variations in these parameters You can specify the term in years of the IRR Analysis that is used in the 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 IRR TERM FOR SENSITIVITY STUDIES Figure 83 The IRR Sensitivity Term Input to Table 1 IRR TERM FOR NPV IRR and Payback Summary SENSITIVITY STUDIES Ma Annual Inputs Used After Tax AND TORNADO DIAGRAMS Term 5 7 10 IRR After Tax 23 79 30 36 34 73 NPV After Tax 6 0 Discount Rate to Financial Close Date 2003 1 273 668 2 417 894 4 408 444 On Equity On Total Capital Investment Payback 2 6 Years 5 7 Years Sensitivity Analyses in EconExpert DG are executed by incrementing the
278. s available Revised 7 14 03 Page 4 EconExpert DG Users Manual Copyright 2001 2005 Page Intentionally Left Blank Revised 7 14 03 Page 5 EconExpert DG Users Manual Copyright 2001 2005 Table of Contents Important Notices to Users of EconExpert DG cssssccsssscsssscsssccssssccsscsssssssssscssssscsssscssessssssascsssasssssssssesssssassssscecs 3 LASt OF FIQtres AE E EEEE EEA E EEE E SEE E ST EE E E E S E E E EEE 8 D Introduction and Overview of the EconExpert DG Model seesseessesssecssccssccesecesccesocesocesocesocssocssooseoossoossosseoo 12 II How to Obtain or to Extend a Subscription to EconExpert DG eesseessesssesssccssecssccssecescesocssocesoossoossoossosseoo 15 THD System Requirements ccccsccssccsssssssscssssessesscesccssessesssesssssssscsscssssescesessssensesesssssseessessesssssesssesscsssseneesosees 18 IV Getting Started Installing EconExperrt DG sccssssccssscssssscssssscsscsessssssescssssccssscsssesssssessssscscsscssssasssssees 19 V Features of the EconExpert DG Model scssssccssssssssscssssscssssscssscssssscssssssssccssessssssescsscascsssssssssssssascensssosses 28 A The EconExpert DG On Line Tutorial iss vesc peeved nnen ede dagen ea di order tin ee E Eo 28 B The EconExpert DG Command Menu eeeeceesseesceeseeeseeesecesecesecesecsseeeseesseeseeeseaeseaeesaaeeaaecsaesnaeseaeeaeens 29 1 INAV LETAN D E N A lyase Saver eee E AEE EH NEE EE OIE Ca 30 2
279. s income tax rates This can provide advantages for the Leasee the Customer as the Leasee might not be able to as fully take advantage of the associated depreciation write offs or might benefit from the Leasor s higher relative income tax bracket If the Operating Lease option is selected it will be assumed that 100 of the project investment during the term of the lease will be financed by the leasing company The leasing company the Leasor will assume title to the project during the lease period and will receive all depreciation credits for cash tax purposes At the end of the lease the Leasee will have the option to purchase the asset from the Leasor at the Residual Fair Market value Revised 7 14 03 Page 79 EconExpert DG Users Manual Copyright 2001 2005 The lease payments will be treated as a periodic fixed operating expense to the project the Leasee Consult your leasing company for rates and terms Please Consult your Tax Advisor to confirm this information The following four criteria must be satisfied for a lease to qualify as an Operating Lease e The lease does NOT transfer ownership to the Leasee at the end of the term e The lease does NOT contain a Bargain Purchase option e The lease term is NOT equal to or longer than 75 of the economic life of the asset e The present value of the lease payments does NOT equal or exceed 90 of the fair value of the leased property If any of these criteria are
280. s that non zero entries appear iv Site Displaceable Use of Thermal Energy 1000 Therms Period Annual Inputs These are the Annual quarterly total amounts of thermal use supplied by natural gas or other fuel in each quarter consumed at the site in 1000 Therms quarter Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear and will be used to calculate the heat consumption at the site in Therms period and the amount of waste heat that can be displaced by the CHP Facility Projected data entered in the Monthly Sheet can be transferred into this sheet by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu DG Plant and Absorption Chiller Performance Annual Inputs v Net DG Plant Electric Generating Capacity kw Annual Inputs This is the net Capacity of the DG Plant in kw It is also the basis from which Demand Charge Savings and Standby Charges will be calculated as it represents the incremental demand reduction at the site or the incremental amount of stand by power that the site will require if the DG Plant experiences an unscheduled forced outage Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear Net Electric Production will be calculated based on the net capacity and the capacity factor Proj
281. s to the Global Inputs sheet in the years that the non zero results appear Projected monthly prices can also be entered in the Monthly Data Table and transferred to the Annual Inputs Sheet using the UTILITIES Populate with Data From option on the EconExpert Command Menu xviii Standby Charges to Ensure Firm Backup Power kw mo Annual Inputs Standby Charges are a Monthly fee expressed in kw mo that represent new charges to the customer of the utility to ensure that in the event of an outage in the CHP facility the utility will provide firm backup power in the current quarter Normally if standby charges are imposed there are no additional penalties or demand charges paid by the customer even if the DG Facility experiences interruptions in service If the standby charges are not expected to escalate at a constant factor over the life of the project annual standby charges can be entered in Table 1C Project Annual Inputs Non Zero values entered in Table 1 C will override this value in the years that they are entered Projected prices can also be entered in the Monthly Data Table and transferred to the Annual Inputs Sheet using the UTILITIES Populate with Data From option on the EconExpert Command Menu Thermal Energy Prices Annual Inputs xix Value of Site Uses of Thermal Energy WITHOUT DG Therm Annual Inputs This is the value of Thermal Energy the DELIVERED price of gas or other fuel in Therm in current at
282. scalation Real Escalation Q Cost of Electric Energy Purchased from Utility c kwh WITHOUT DG 9 40 0 5 8 00 0 5 Cost of Electric Energy Purchased from Utility c kwh WITH DG 9 40 E oe 3 00 0 5 Demand Charges for Maximum Metered Power S kw mo WITHOUT DG mee ae aad Inputs Demand Charges for Maximum Metered Power kw mo WITH DG 6 000 f 2 4 6 000 2 4 Conti d Value of Excess Electricity Sold BACK TO Utility c kwh 2 00 L 05 1 50 0 5 BIU Standby Charges to Ensure Firm Backup Power kw mo 3 000 3 000 0 0 for 3 Thermal Energy and DG Fuel Prices 7 and Value of Site Uses of Thermal Energy WITHOUT DG Therm 0 550 0 5 0 500 0 5 q Value of Site Uses of Thermal Energy WITH DG Therm 0 550 0 5 0 500 0 5 Quarters DG Plant Fuel Price Therm 0 500 0 5 0 450 0 5 Note are items where SAVINGS are realized as a result of DG are items that result in NEW COSTS that may be incurred as a result of DG Revised 7 14 03 Page 93 EconExpert DG Users Manual Copyright 2001 2005 i Maximum Site Electric Energy Demand kw Global Inputs This is the Average MAXIMUM electric energy demand at the location and is calculated by averaging the peak demand in each month of the respective quarter This amount should include electric chillers if applicable but not include any power generated or used by the DG Facility during the applicable period If the Maximum demand varies
283. sed to offset Electricity Purchases from the Utility e Waste Heat from the Cogeneration Plant is used to offset consumption fuel used to generate hot water or steam Debt Equity Financing Debt Equity financing is conventional financing where the owner puts up a proportion of the project cost as equity and the remainder is financed by a bank or other financial institution Demand Charges Demand charges are usually monthly fees kw mo charged by the utility Demand Charges are usually related to the maximum metered power reading over a calendar year Demand charges may be separately based on demand during on peak periods A DG facility can reduce the peak meter reading and so reduce Demand Charges However if the DG facility goes off line the metered peak power requirements may not be reduced decreasing or eliminating the demand charge savings for a some period EconExpert DG allows you to input historical and projected Demand Charge rates in the Global Annual or Monthly Data Sheets and to evaluate the associated savings The Annual Inputs sheet also includes a Forced Outage option that will allow you to better understand impacts that DG plant outages might have on reducing Demand Charges Please consult the fee structures for your local utility for more and specific information on their Demand Charge structure Demand Ratchet The Demand Ratchet is a special condition used in some tariff or utility rate schedules which requires the c
284. 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 3 times the increment to the base case value plus 3 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 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 Econ Expert 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 after tax NPV IRR and Payback will vary as a function of the resulting changes in the Total Investment Cost Incl Development Costs Capital Costs Soft Costs and Interest During Construction The Sensitivity Increment is specified in an Input Cell in the respective Capital Cost Sensitivity Table as shown in the figure below Revised 7 14 03 Page 168 EconExpert DG Users Manual Copyright 2001 2005 Figure 84 Sensitivity Tables Input of Sensitivity Increments Capital Cost and Equity Related Tables Supporting Sensit Sensitivity
285. 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 power generation projects Now EconExpert DG has been transformed into a Universal Tool that can be used efficiently and effectively by project developers project owners and hosts banks equipment suppliers consultants and others in the Distributed Generation industry to study and make informed decisions on the economic viability of Distributed Generation and Cogeneration investments The beauty of EconExpert DG is its flexibility The key to the model is its architecture which allows you to study any project through the model s input sheets By specifying the conditions of the host s needs the DG plant design the utility tariff fuel pricing the project schedule construction and operating costs project financing and income tax considerations virtually any Inside the Fence DG CHP ESCO project can be fully analyzed Then it becomes easy to quickly perform sophisticated sensitivity analyses to study how the economic viability of that project might be impacted by changes in future market conditions Built in menus 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 Distributed Generation Comb
286. sophisticated Visual Basic macros to add flexibility ease of use and functionality While the spreadsheet will work effectively with a very wide variety of computer hardware operating systems and versions of Microsoft Excel the following minimum system requirements are recommended Hardware A Pentium III Pentium IV or higher processor or the equivalent 32 MB or more of Random Access Memory If it is desired 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 A Graphics Capable Monitor with a setting of at least 800 x 600 Pixels and preferably 1024 x 768 Pixels A Graphics Capable printer Note If you have a printer capable of printing to 11 x 17 paper the model will accommodate that paper format in addition to 8 2 x 11 paper At least 15MB of available storage on you C 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 Microsoft Windows 95 Windows 98 Windows NT Windows XP or Windows Millennium Operating System Microsoft Excel 2000 or Excel 2002 o Note Due to memory management limitations in Microsoft Excel 97 and limitations in that versions memory handling capabilities EconExpert
287. surety of supply Enable Model After you save EconExpert cells throughout the model will be converted to Div 0 This is associated with a security feature in the model designed to prevent misuse by unauthorized or unlicensed persons If you are an authorized user the model can be easily re enabled by clicking on the ENABLE MODEL Enable EconExpert selection on the Command Menu Macros must be Enabled in Excel for this feature to function properly Energy Price Profiles EconExpert DG allows input of Energy and Fuel Prices and DG Plant Performance in quarterly periods EconExpert DG 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 In the Monthly Data Sheet the user can specify detailed Historical and projected performance and pricing data for up to 12 Monthly periods These inputs include historical gas and electric usage and rates and projected DG Plant performance parameters Fixed Costs Fixed Operations and Maintenance costs are not dependent on annual net generation These costs can be entered either as either of two User Defined Fixed Cost Categories Forced Outage A Forced Outage is a condition where the production of the DG facility is partially or fully interrupted due to an operational upset This situation is most critical to a DG facility if it occurs during a time period usually on peak when t
288. t DG Users Manual Copyright 2001 2005 e 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 New Window from the Excel menu to add a window to the file where it is required 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 Figure 90 Comparing Data Files Highlighting of Inputs that Changed ina TARGET File SI File Edit view Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL 8 peee e After Tax 5 00 Table 1 Section 1A GLOBAL INPUTS Global Inputs Holding Bin 1 is Not Labled 5 FACERCEI ProformatCEI Comm Shaded Areas Indicate Inputs Hame of File Proformat Compare Input Fil Global Inputs Holding Bin 2 is Not Labled Active Annual Inputs Sheet is Not Labeled IRR Selected Select Checkbox to Use XIRR XIRR Analysis ToolPak HPV TER 5 haf SENSIT Ho Annual Inputs Used IRR_End of Year HPY to by EOY 2003 1000 STUE AHD TOI DIAGR a a re ee Discount Rate L 18 88 a 451 2 11 85 N 10 00 77 549 9 953 Proforma NOTES IThis Workbook sho changedin Example Fr bined
289. tables that have been previously saved with the active Simplified Inputs Sheet When you EXCHANGE the contents with a Holding Bin the current contents of the Active Simplified Inputs Sheet are saved in the Holding Bin and the current contents of the Holding Bin are written to the Active Simplified Inputs Sheet Neither is lost In addition to processing the Global Annual Monthly and Simplified Inputs Sheets this menu also allows you to RESET the Construction Drawdown Schedule to the S Curve Default Any inputs to a custom drawdown schedule will be cleared and the default S Curve Drawdown that EconExpert DG automatically calculates to match your construction period will be used Load the Example DG Case The Example cases in EconExpert DG are described in the Appendix to the User s Manual as primers to assist you in becoming familiar with the model These cases are provided for Illustrative Purposes Only and are not intended to represent a Real Commercial Situation Discussions in the Appendix to this User s Manual use these illustrative cases to describe examples of how to use EconExpert DG Inputs examples and descriptions provided by CEI in the EconExpert DG Model and in the User s Manual are provided for example purposes only CEI makes no representations or warranties with respect to the accuracy of such inputs examples or descriptions Reset the EconExpert DG Model to its original as shipped setup This macro clears all of th
290. tact CEI to obtain the needed codes Without these codes unauthorized copies of the model will not function properly Once the authorized codes are entered all copies of EconExpert DG will function on the authorized computer during the authorized license period From the EconExpert DG Command Menu licensed users can create a Values Only copy of the model that can be shared with others and viewed on any PC including PC s that are not licensed to use the model These Values Only copies must be created using the EconExpert DG Command Menu to function properly Much of the Command Menu functionality will be preserved in the Values Only copy allowing others to easily print reports and charts for the case that has been provided to them A Values Only copy will not allow users to change inputs or to evaluate any new cases Importantly if you purchase an appropriate subscription to the EconExpert model any copies of the model that you save will be recoverable as values only versions even after your license expires The Initial Installation File you receive from CEI will only enable the use of the model for a limited period usually 30 days If you have purchased an extended period license to use the EconExpert DG model contact CEI after performing your initial installation CEI will provide Revised 7 14 03 Page 15 EconExpert DG Users Manual Copyright 2001 2005 you with the necessary License Extension Codes to ful
291. tant Notice You are permitted to send copies of the model to others but unless the model is converted to VALUES ONLY using the EconExpert DG Command Menu electronic copies will only function properly on others computers after they have received Authorization from CEI Select OK and EconExpert DG will be initialized In the upper left hand corner of the spreadsheet the message will appear EconExpert DG is Initializing Please Wait The Initialization Procedure will occur every time that you open the model EconExpert DG will automatically check its setup to ensure that all of its internal settings are set correctly when you start work Revised 7 14 03 Page 22 EconExpert DG Users Manual Copyright 2001 2005 e Step 4 If this is your first use of the model you will next see the following screens Figure 11 How to Obtain the User s Manual EconExpert Note 2 of 3 EconExpert User s Manual Finally another VERY IMPORTANT one time message Figure 12 Notice Regarding the EconExpert DG License Agreement EconExpert Note 3of 3 READ THE SOFTWARE LICENSE x 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 DG s 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 you renew your license to
292. te Annual Inputs This row of inputs allows the user to specify annual federal income tax rates that where non zero entries are entered will override the corresponding rate entered in Table 1 Project Global Inputs in the specified years n State Income Tax Rate Annual Inputs This row of inputs allows the user to specify annual state income tax rates that where non zero entries are entered will override the corresponding rate entered in Table 1 Project Global Inputs in the specified years Note that State Income Taxes are deductible in the calculation of Federal Taxable Income o0 Additional State Taxes Annual Inputs The user can enter Additional State Income Tax Amounts in any year that they might occur An example of when this might apply is where special taxes or fines are imposed on the project These entries are in current are not escalated and are added to any other deductions or taxes calculated for the project Additional Taxes should be entered as a positive number Tax Credits should be entered as a negative number p Additional Federal Taxes Annual Inputs The user can enter Additional Federal Income Tax Amounts in any year that they might occur An example of when this might apply is where special taxes or fines are imposed on the project These entries are in current are not escalated and are added to any other deductions or taxes calculated for the project Additional Taxes should be entered as a positive num
293. te critical values for which it is highly recommended that input data should be entered Like Table 1 Project Global Inputs this input sheet is organized into sections associated with each class of inputs You can locate a specific input by scrolling through the table You may automatically populate Table 1 Project Global Inputs with entries in this table by selecting UTILITIES Populate with Input Data from the Monthly Data Simplified Input or Time of Use Wizard Sheets Transfer Simplified Input Data to Global Inputs Sheet from the EconExpert Command Menu The data will be transferred as values For additional explanation on the Simplified Inputs Sheet see page 115 Note that ALL of the inputs listed here will be transferred to the Global Inputs Sheet treated as average annual values overwriting the corresponding quarterly values that are currently in Table 1 Project Global Inputs You will be provided with the option to save the Global Inputs Sheet before the data is overwritten EconExpert will allow you to use default values for other assumptions for remaining inputs or to use assumptions that have been previously populated into the Global Inputs Sheet by you or others in your organization Please note that this data input sheet WILL NOT be used in the proforma unless you select the option to Populate the Global Inputs Sheet using the Transfer Data option described above If you select the option to use the default EconExpert va
294. the model Revised 7 14 03 Page 23 EconExpert DG Users Manual Copyright 2001 2005 Select OK and the following screen will appear Figure 13 The EconExpert DG License Agreement Sheet File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL is re ee a 8 1 IMPORTANT PLEASE READ THE TERMS OF YOUR SOFTWARE LICENSE 3 4 Today s Date July 9 2003 5 License Period June 17 2003 Until February 10 2004 Print License SSE ae Print License 6 See Bottom of Sheet to Accept SOFTWARE LICENSE AGREEMENT See Bottom of Sheet to Accept 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 pressing the ACCEPT button at the end of the Agreement H do not accept the Agreements terms the Econ Expert Model will not tion rly 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 Econ Expert Financial Model the Model is a spreadsheet des
295. the site WITHOUT DG Fuel prices will be used to determine SAVINGS associated with the use of waste heat from the DG Plant These fuel prices will be used to determine FUEL SAVINGS associated with offset gas purchases due to use of DG waste heat and will not be used to estimate costs of fuel for the DG Plant Revised 7 14 03 Page 129 EconExpert DG Users Manual Copyright 2001 2005 If the quarterly fuel prices do not vary at a constant escalation rate over the life of the project non zero fuel prices entered in here will override entries to Table 1 Project Global Inputs xx Value of Site Uses of Thermal Energy WITH DG Therm Annual Inputs This is the value of Thermal Energy the DELIVERED price of gas or other fuel in Therm in current at the site WITH DG in Operation Fuel prices will be used to determine SAVINGS associated with the use of waste heat from the DG Plant These fuel prices will be used to determine FUEL SAVINGS associated with offset gas purchases due to use of DG waste heat and will not be used to estimate costs of fuel for the DG Plant If the quarterly fuel prices do not vary at a constant escalation rate over the life of the project non zero fuel prices entered in here will override entries to Table 1 Project Global Inputs xxi DG Plant Fuel Price Therm Annual Inputs This is the price of gas or other fuel in Therm in Base Year for the DG Facility The entered amount will be escalated by the GNP
296. the tax year in which the distribution is received Money or property withdrawn by a partner in anticipation of the current year s earnings is treated as a distribution received on the last day of the partnership s tax year e A partner s adjusted basis in his or her partnership interest is decreased but not below zero by the money distributed to the partner e A partnership generally does not recognize any gain or loss because of distributions it makes to partners e A partner generally recognizes gain on a partnership distribution only to the extent any money included in the distribution exceeds the adjusted basis of the partner s interest in the partnership Any gain recognized is generally treated as capital gain from the sale of the partnership interest on the date of the distribution Partner s Income or Loss e A partner s income or loss from a partnership is the partner s distributive share of partnership items for the partnership s tax year that ends with or within the partner s tax year Self Employment Income and Taxes e A partner is not an employee of the partnership The partner s distributive share of ordinary income from a partnership is generally included in figuring net earnings from self employment However a limited partner generally does not include his or her distributive share of income or loss in computing net earnings from self employment This exclusion does not apply to Guaranteed Payments made to a limited partner fo
297. tion e Waste Heat from the CHP Plant is used to operate absorption chillers Typically these chillers were originally electrically driven so additional electricity purchases are offset Relative to options 1 or 2 above o Electric consumption by the chillers is offset by the use of waste heat rather than direct self generation of electricity o Waste heat from the CHP Plant is used to offset electricity purchases in addition to the offset of gas purchases used to produce hot water or steam To Select Tri Generation Simply Select the Checkbox in the Switches Section of Table 1 Project Global Inputs ii Operating Lease Switch Global Inputs An Operating Lease is structured so that the Leasing Company the Leasor takes title to the project assets on their books As a result they are able to capture all of the associated tax depreciation at the Leasing Company s income tax rates This can provide advantages for the Leasee the customer as the Leasee might not be able to as fully take advantage of the associated depreciation write offs If an Operating Lease is selected by selecting the corresponding Checkbox EconExpert will assume that the project is 100 financed by the Operating Lease and that title will be held in the name of the Leasing Company The Operating Lease Payment will be treated as an operating expense At the end of the Lease a Purchase option will be provided at the Residual Fair Market value After purchase by the ow
298. total Annual Deductible Operating Costs o Major Maintenance amp Additions to Major Maint Reserves See Major Maint Sheet Total Annual Operating Expenses incl Deposits to MM Reserves Total Vvorking Capital Balance in Major Maintenance Reserve Account PNE 3 15 5 I5 You May Use the Outlined Section Below for Calculations and Customiz Asen A S e S A Revised 7 14 03 Page 183 EconExpert DG Users Manual Copyright 2001 2005 c Demand Ratchets The Demand Ratchet is a special condition used in some tariff or utility rate schedules which requires the customer to pay a premium on each bill during a specified period typically related to peak demand or usage during a previous billing period Ratchets are often used by utilities as a means to recover costs associated with installed capacity which the utility deems a customer previously used and so therefore should continue to fund for some period As an example some utility tariffs will require the customer to pay demand charges for the first year of operation of a DG facility which are based on the demand over the year prior to the operation of the DG facility Similarly after a forced outage of the DG facility especially during an on peak period the utility may charge the customer higher demand fees for a specified period often up to a year following the outage event This sectio
299. ts and Holding Bins xj Active GLOBAL Inputs Sheet Example Global Inputs GLOBAL Inputs Holding Bin No Description Provided or No Data Present in Holding Bin Active ANNUAL Inputs Sheet No Description Provided in Table 1C Annual Inputs ANNUAL Inputs Holding Bin No Description Provided or No Data Present in Holding Bin Active MONTHLY Data Sheet Example Monthly Data Inputs MONTHLY Data Holding Bin No Description Provided or No Data Present in Holding Bin Active SIMPLIFIED Inputs Sheet Example Simplified Inputs SIMPLIFIED Inputs Holding Bin No Description Provided or No Data Present in Holding Bin e Clear All Holding Bins This option clears all contents saved in the holding bins reducing the file size Active Input Sheets are not affected e Clear All Input Sheets This option resets all of the input sheets to blank entries Use this feature before starting a new case to ensure that no legacy entries are included in the input sheets from prior analyses Holding bins are not affected For Table 1 Project Global Inputs you can e SAVE acopy of the Active Global Input Table to The Global Inputs Holding Bin This option allows you to save a copy of this table and then to make modifications to the respective input sheet without losing the saved set of inputs When you SAVE the contents to the Holding Bin the current contents of the Holding Bin are overwritten e RESTORE a copy of the Global Input Table that has been previously saved to the G
300. u can use Annual Inputs any time that you would like to more precisely model a variable than can be accomplished using Table 1 Project Global Inputs Any non zero entry is read as an Annual Input and included in the calculations in the model Where appropriate this means that Global Inputs from Table 1 will be overridden in the years that Annual Inputs are entered Table 1C also allows you to introduce new categories of revenues of expenses that might not have been available in Table 1 More detailed discussions of Annual Inputs are provided on page 118 Table 2 Summary This sheet provides a summary of the results for the current case including IRR NPV and Payback summaries debt coverage ratios and revenue and income summaries Table 3 Construction This sheet provides the monthly Construction Period Drawdown The model includes a default drawdown schedule for any duration from 1 24 months The user may also specify a custom drawdown schedule Interest accrued during construction IDC is calculated in this sheet based on a standard S Curve drawdown schedule The user may also override the default S Curve schedule with a custom drawdown schedule Soft costs are also allocated over the specified construction term Table 4 Operating Costs This sheet provides breakdowns of operating cost factors including consumption rates of fuel and raw materials escalation indices and calculation of annual Fixed and Variable O amp M and other
301. ual Copyright 2001 2005 5 Time of Use Wizard While commercial electric customers typically receive their utility electric bills on a monthly billing cycle costs for electric use are usually computed based on time of use with the lowest rates for electric energy consumption charged during low demand periods and progressively higher rates billed as system demand The corresponding rate block periods super peak on peak mid peak off peak etc are established in association with the time of day day of the week and month season of the year when these system load variations occur Since the customers use of electricity and potentially their need for DG may also vary as a function of the time of day day of the week and season of the year the ultimate calculation of the electric bill before and after the implementation of DG can be relatively complex Similar to the variation of the cost of electricity as a function of the corresponding time of use some utilities also have monthly or seasonal variations in their demand charges as a function of how they value their capacity investments to meet that demand during different months of the year The Time of Use Wizard allows you to proceed into the next level of DG Project Economic Analysis by analyzing time of use electric energy pricing and time related demand charges Time of use energy prices and time related demand charges from the appropriate tariff s the Host s energy usage and
302. uation Figure 97 Table 1P Partner Returns Guaranteed Return on Capital Table 1P Partner Returns November 7 2005 Warning Negative Capital Account Warning Negative Inside Basis All Figures in 000 8 Glossary Most definitions from IRS Publication 541 except where noted Capital Account A capital account represents the equity that a partner has in the partnership The Capital Account tracks the partner s contributions distributions and the distributive share of income Each year these capital accounts will change depending on the language of the partnership agreement and how they will share in the profits and losses and receive distributions Revised 7 14 03 Page 199 EconExpert DG Users Manual Copyright 2001 2005 Capital Account Maintenance If partnerships make special allocations of income or distributions then each partner might have to take special care to keep a positive balance in their capital account A partnership does not have to maintain book capital accounts in this manner but might be required to by a creditor Moreover if special allocations are made there is a higher risk that upon audit these allocations will not be respected Account maintenance is another item that should be covered in a partnership agreement Inside Basis Adjusted Basis of Partner s Interest The initial basis of a partnership interest is the money the partner contributes plus the partner s
303. uation The example tariffs provided are based on the following simplifying assumptions All changes in rates coincide with the first day of the month If changes take effect mid month this can be addressed by prorating in proportion to the number of days in each month that apply under each respective rate February is 28 days Leap Years are ignored Where holidays that fall on a calendar day are applicable the probability of a holiday falling on a weekday versus a weekend is prorated by 5 7 The examples do not address Special Conditions where applicable Please note that the inputs examples and descriptions provided by CEI in the Model and in the User s Manual are provided for example purposes only CEI makes no representations or warranties with respect to the accuracy of such inputs examples or descriptions Revised 7 14 03 Page 147 EconExpert DG Users Manual Copyright 2001 2005 b TW1 The Time of Use Energy Price Wizard Site Energy Consumption WITHOUT DG The first table in the Time of Use Wizard TW1 is used to calculate Time of Use Energy Prices at the site if DG were not implemented This is accomplished by segregating the non chiller and electric chiller loads by time of use and assigning the associated Rate Block times and rates The results calculated from these inputs are used to determine the customer s appetite for electric and thermal energy and the aggregated price of electric energy in each perio
304. ubject to income tax withholding e The partnership generally deducts guaranteed payments as a business expense e Guaranteed payments made to partners for organizing the partnership or syndicating interests in the partnership are capital expenses and are not deductible by the partnership However these payments must be included in the partners individual income tax returns e Guaranteed payments are included in income in the partner s tax year in which the partnership s tax year ends e If guaranteed payments to a partner result in a partnership loss in which the partner shares the partner must report the full amount of the guaranteed payments as ordinary income The partner separately takes into account his or her distributive share of the partnership loss to the extent of the adjusted basis of the partner s partnership interest Cash Distribution e Partnership distributions include the following o A withdrawal by a partner in anticipation of the current year s earnings o A distribution of the current year s or prior years earnings not needed for working capital o A complete or partial liquidation of a partner s interest o A distribution to all partners in a complete liquidation of the partnership e A partnership distribution is not taken into account in determining the partner s distributive share of partnership income or loss If the partner recognizes any gain or loss from the distribution it must be reported on his or her return for
305. uel labor and other capitalized expenses that are incurred prior to acceptance of the facility Start up costs are included in the plant basis and are depreciated for book or for cash purposes These costs can be entered and or estimated as a percentage of the total Fixed O amp M Costs excluding Expensed Major Maintenance in Base Year Working Capital Working Capital covers cash flow associated with the difference between payables and receivables Working Capital is NOT included in the plant basis and is NOT depreciated for book or for cash purposes Working Capital is recovered at the end of the project life The amount of Working Capital can be entered and or estimated based on a number of months of fuel costs in Base Year Debt Reserves Debt Reserves are funds that the bank may require the owner to hold in reserve to ensure payment of debt for a specified period Debt Reserves are NOT included in the plant basis and are NOT depreciated for book or for cash purposes Debt Reserves are recovered when the debt is retired Spare Parts Spare parts are parts stored in inventory at the site The investment in residual spare parts will be recovered when the project is retired Spare parts costs are not included in the basis and are not depreciated for book or for cash purposes The cost of spare parts can be input and or estimated as a percentage of the total Fixed O amp M Costs excluding Expensed Major Maintenance in Base Year Up Front
306. uential impact on IRR at the top of the chart and the least consequential parameter on the bottom of the chart The second button will run the selected sensitivities and will sort the horizontal bars in the Tornado Diagram based on the after tax NPV showing the parameter which if changed would have the most consequential impact on NPV at the top of the chart and the least consequential parameter on the bottom of the chart The third button will allow you to cancel the operation and to return to the EconExpert DG model Revised 7 14 03 Page 173 EconExpert DG Users Manual Copyright 2001 2005 Revised 7 14 03 Page 174 EconExpert DG Users Manual Copyright 2001 2005 ample Tornado Diasram Tornado Diagram Sensitivity of After Tax IRR to Changes in Fuel Costs Fixed and Variable O perating Costs and Capacity Factor Related Inputs Base Case 10 yr IRR 35 5 Change in Leveraged IRR from Base Case 2 5 2 0 1 5 1 0 0 5 0 0 0 5 1 0 1 5 2 0 Annual Capacity Factor life of project avg 84 5 5 0 User Defined Additional Annual Expenses 3 5 yr avg O amp M 141 417 25 0 Cogen Annual Fuel Price 5 yr avg 0 350 Therm 5 0 User Defined Additional Annual Expenses 2 5 yr avg O amp M 90 595 25 0 User Defined Additional Annual Expenses 1 5 yr avg O amp M 55 716 25 0 Standby Charges 5 yr avg 3 000 kw mo 25 0 Variable O amp M Costs 5 yr avg 0 000cents kwh
307. under the partnership agreement it is determined by his or her interest in the partnership The partner s interest is determined by taking into account all the following items e The partners relative contributions to the partnership e The interests of all partners in economic profits and losses if different from interests in taxable income or loss and in cash flow and other non liquidating distributions e The rights of the partners to distributions of capital upon liquidation External Partner Taxable Income CEI Definition e The partner s taxable income base from interest outside this power project which would allow the partner to utilize any taxable loss or tax credit in the year in which it is earned Revised 7 14 03 Page 202
308. user you are free to distribute printed reports and charts as well as to provide others with electronic copies of EconExpert DG if such reports or electronic copies are generated by the EconExpert DG Model s Command Menu and contain the Copyright Notices included with the EconExpert DG Model You may also provide saved electronic copies of the EconExpert DG 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 Warning Regarding Changing of 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 DG or forwards beyond the end of your authorized license period an error will be produced when the EconExpert DG Model is opened While Excel can be closed and reopened normally EconExpert DG will not function properly if it is reopened after such invalid clock settings have been made It is highly recommended that you maintain your Computer Clock Settings at the current date and time whenever you plan to or have opened the EconExpert DG Model If you encounter a problem related to the setting of your Computer Clock please contact CEI to discuss measures to repair your valid installation of the EconExpert DG Model Revised 7 14 03 Page 3 EconExpert DG Users Manual Copyright 2001 2005 Warning Regarding Use of EconExpert DG
309. ustomer to pay a premium on each bill during a specified period typically related to peak demand or usage during a previous billing period Ratchets are often used by utilities as a means to recover costs associated with installed capacity which the utility deems a customer previously used and so therefore should continue to fund for some period As an example some utility tariffs will require the customer to pay demand charges for the first year of operation of a DG facility which are based on the demand over the year prior to the operation of the DG facility Similarly after a forced outage of the DG facility especially during an on peak period the utility may charge the customer higher demand fees for a specified period often up to a year following the outage event Distributed Generation Distributed Generation Projects in EconExpert DG are Inside the Fence independently owned power generation projects where an owner or operator uses a Revised 7 14 03 Page 186 EconExpert DG Users Manual Copyright 2001 2005 power generation facility to self generate electricity to offset purchases from the local utility In addition the facility may produce waste heat which can be used to offset use of gas or other fuels or to run thermally driven chillers In these cases the economics of the project are largely driven by giving the entity some element of independence from the local power and gas providers providing savings and potentially better
310. ut use a very small number like 0 0000001 and the zero value will be used in the model Where appropriate this means that Global Inputs from Table 1 will be overridden in the years that Annual Inputs are entered The blue shaded cells represent the site WITHOUT DG Operating The R H shaded cells represent data that is typically projected for the customer s site after installation of the DG project and WITH the DG plant Operational This input data can include information such as the customer s site s expected gas or electric usage gas or electric pricing electrically driven chiller operation etc or DG Plant Parameters Data populated from the Projected Data in the Monthly data sheet will be transferred into this sheet The Figure below provides a Screen Shot of Table 1C EQ Microsoft Excel EconExpert DG Proforma 4 0 1577_xls 1 i k jaj x H File Edit View Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL iad Xx OSA AaAR SRAY kB S oca A E 2 kl Mw 0 B A Ee XE AR e Condiionalrormatting gt Arial 16 A B z u m i i B S e a tas 98 Em2 ME Ee a G48 z f 300 E F ATE l a A I Mh il B c D EconExpert DG V4 0 1575 Copyright 2001 2002 2003 Competitive Energy Insight Inc All Rights Reserved 1 2 Green Shaded Areas Indicate DG Project Inputs 3 xi Blue Shaded Areas can be site data WITHOUT DG 4 May 19 2003 Y
311. uts and special circumstances are flagged and the user is notified of instances where Annual Inputs entered in Table 1C will override or be added to results calculated using a Global Input to Table 1 Sensitivities This sheet is used to perform automated Sensitivity Analyses and Tornado Diagrams to evaluate how incrementing key parameters will affect the Project s Internal Rate of Return Net Present Value and Payback The Sensitivity Increments for each sensitivity analysis are entered in this sheet The IRR Term used in all of the Sensitivity Studies is specified in IRR Summary at the top of Table 1 Monthly Data This sheet allows you to automatically convert Monthly Customer Demand Tariff Pricing and DG Plant Performance data into the quarterly EconExpert DG Energy Pricing Periods used in the Global and Annual Inputs Sheets After the data is input to this sheet it can be cut and pasted as values from another model the data is automatically converted and can be automatically transferred to the Global or Annual Inputs Tables Simplified Inputs The Simplified Inputs Sheet provides a simplification one screen of data entry to be transferred to and used in the Global Inputs Sheet Inputs are entered in the shaded cells based on Annual Averages After the data is input to this sheet the data is automatically converted for transfer to the Global Inputs Table Time of Use Wizard The Time of Use Wizard allows you to more fully evalu
312. vailable amount of waste heat from the Tri Generation Plant This is the maximum coincident quarterly amount of electric energy use by the chillers in 1000 kwh quarter which will be displaced by waste heat from the DG Facility i e if absorption chillers replace or offset electrically driven chillers Non zero values or formulas resulting in non zero results will override inputs to the Global Inputs sheet in the years that the non zero results appear The values entered in each quarter will be used to calculate the amount of electric consumption by the chillers that can be displaced by use of waste heat from the CHP Facility during the specified period Projected data entered in the Monthly Sheet can be transferred into this sheet by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu Revised 7 14 03 Page 126 EconExpert DG Users Manual Copyright 2001 2005 Tariff Data Basis of Savings and Revenues Annual Inputs xii Cost of Electric Energy Purchased from Utility c kwh WITHOUT DG This is the value of displaced electric energy at the site WITHOUT DG in cents kwh This is the quarterly Weight averaged or aggregated power price based on the amount of power displaced during each period at the corresponding time of use rate If needed this aggregated value can be estimated using the Time of Use Wizard The quarterly average power price should reflect the cost of power purchased during
313. w Insert Format Tools Data Window Help Acrobat NAVIGATE PRINT SENSITIVITIES UTILITIES EconExpert HELP ENABLE MODEL 8 X Arial 16 J AB z u SRlBle x BME S 2 A Eea ProjectSumm f Mi EE a ee eee E _ ia 5 Ea Internal Rate of Return Het Present Value and Payback After Tax Project Schedule z Years 5 z 10 Financial Closing Date May 1 2003 a IRR After Tax 24 60 28 96 31 68 Start of Operation March 1 2005 s NPY at 6 0 Discount Rate 1 674 288 2 745 853 4 222 087 Retirement Date March 1 2015 10 Payback On Equity 27 Years Construction Term 22 Months n Payback On Total Capital Investment 58 Years Project Life 12 13 Project Financing Structure Project Financing Structure 14 During Construction Phase Total Project At Financial Closing as Amount Financed during Construction 2 601 881 Equity at Start of Operations 50 0 2 601 881 16 Owner s Equity During Construction 2 601 881 Primary Debt 50 0 2 601 881 17 Total 5 203 762 Subordinate Debt 0 0 18 Total 100 0 5 203 762 19 20 21 Cogen Plant Operating Parameters Year 1 Annual Avg in Year 1 Reduced Electric and Gas Consumption Due to Cogen Cogen Plant Capacity 2 000 kw Year 1 2 3 Fuel Use 200 Thermsshr Displaced Electric Use 1000 kwh 11 779 14 316 14 385 24 Plant Capacity Factor 81 9 Year1 Displaced Chiller Electric Use 1000 kwh 1 818 1
314. w the formulas in the model in the Excel Formula Bar These user s can also trace the various cell relationships using this option The Trace option has been added to the UTILITIES Menu allowing you to use the Excel Audit 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 The Trace Function will not allow you to view certain hidden cells in EconExpert DG Note that if you are using a Demo copy of the model all of the formulas in the model are hidden and so this feature will be disabled Range Protection for Project Summary and Graphs Sheets This option allows you to turn ON or to turn OFF the Range Protection for the Project Summary and the seven Graphs Sheets This feature can be used to allow you to customize or enhance the model s preprogrammed graphs or to add new graphs to the model Also as various cases are run in any Excel model the formatting of graphs can change in ways that may not be desirable For example the graph area may be reduced resulting in a lot of empty space in the graph frame or the legend may be displaced and cover the x axis title 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 pr
315. wever if the losses at the project level can be applied to other earnings realized by the owner or Leasor profits from other parts of the owner s income those write offs can be realized in the year that they occur independent of the fact that the project on a stand alone basis was not profitable If the Tax Carry Forward Checkbox is selected any tax losses and their associated depreciation write offs will be carried forward and applied to future project earnings during any year that the project experiences losses If this option is not selected the project will be credited with net income associated with tax losses in the year that those losses occur This latter scenario assumes that losses can be transferred and fully applied against other before tax profits realized by the owner Consult you Tax Advisor to confirm this information and how it applies to your situation b Economic Factors Global Inputs Economic Factors are entered in the next section which is shown in the Figure below Revised 7 14 03 Page 90 EconExpert DG Users Manual Copyright 2001 2005 Figure 43 Table 1 Project Global Inputs GNP Escalation Rate and Real Escalation Rates Base Year Constant Dollar in Mid Year 2004 General Inflation Rate for Revenues amp Expenses Discount Rate NPV Interest Rate Earned on Escrowed Funds Inputs include The Base Year is the time frame from which all escalation calculations for revenues and exp
316. will be preserved Such reference may be changed when importing from very early versions of the model It is always recommended that you check any cell reference inputs that you have added to the model if you transfer data between different version numbers of the model When comparing different versions of the model you will be prompted with the option for EconExpert to automatically compare the input sheets and notify you of any references that have changed The procedure to perform a data import is as follows e From the UTILITIES menu select Import Data Transfer Data from another EconExpert Model e The following screen will then appear Revised 7 14 03 Page 51 EconExpert DG Users Manual Copyright 2001 2005 Figure 28 Instructions for Data Import Between Copies of EconExpert DG EconExpert DG Importing Data from Another EconExpert DG Model 3 xi x IMPORTANT PLEASE READ THESE INSTRUCTIONS Before transferring data you must open two copies of the EconExpert DG Model 1 The Destination model EconExpert DG Proforma YBETA 3 0 1438 xls is the model that you want to transfer data to The Destination model MUST be opened FIRST Nm The Source model is the model that you want transfer data from This Source model MUST be opened SECOND This Source model MUST have at least TWO available windows Record the name of this file as you will be asked for this information The two files MU
317. with Macros Enabled In order to properly install and use EconExpert DG the Macros Enabled option for Microsoft Excel MUST be selected The model will not function properly without Macros Enabled Microsoft Excel Versions 2000 and later include a Security Setting that can prevent the user from opening spreadsheets that contain macros If this Security Setting is set the HIGH then you will not be permitted to open EconExpert DG or any other spreadsheet with the Macros functioning Prior to opening EconExpert DG you may want to check this setting on your version of Excel To do so select Tools Macro Security from the Excel Command Menu On the Security Level Tab the setting selection should be MEDIUM or LOW Product Warranty and Warranty Limitations Users of EconExpert DG 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 DG Model by the Licensee Competitive Energy Insight Inc makes no warranties or 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
318. ws following each partner s Capital Account there are a few rows of calculations that look at future reductions in Liabilities and Basis and compare them against future Net Income and other positive effects on the Capital Account Then in rows 757 829 the model will determine how much cash can be distributed factoring in the future outlook of the Capital Account and Inside Basis Revised 7 14 03 Page 197 EconExpert DG Users Manual Copyright 2001 2005 6 Cash Distribution Basis Once the distribution strategy is formulated keeping in mind any partnership obligations the allocation of cash distributions to each partner can be automatically set up as per a partnership agreement The four options as provided in this model are as follows Figure 96 Table 1P Partner Returns Cash Distribution Basis Table 1P Partner Returns ipti REFRESH Menu Project Life Year of Analysis November 7 2005 Total Initial Investment Warning Negative Capital Account of Initial Partnership Warning Negative Inside Basis Post Tax NPY 10 0 a e x a A CertatAocomss __ R Taxable Losses 2 Distribute Enoudh to Pay Taxes pi a Depreciation G 3 Maintain Cap AcAgunt amp 3 Capital Share All Figures in 000 Ps Maintain Basis NY snore Ne Capital Accounts Capital Account values for each partner change yearly as allocations are made to reflect taxable income loss allocations and or cash distribution
319. xpert DG Model will not be fully installed and should not be used Revised 7 14 03 Page 179 EconExpert DG Users Manual Copyright 2001 2005 A Comparing EconExpert Files and Identify Quantify Differences Between Cases EconExpert offers two very powerful options for comparing different cases and quickly understanding the changes and differences between those cases Either of these Features can be accessed from the UTILITIES Menu by selecting UTILITIES Compare EconExpert Files to Identify Changes Further Discussion of these Model Comparison Features is provided below a Feature 1 You can compare the INPUT SHEETS of two different cases and identify which inputs have changed This procedure allows you to Track input changes between two different EconExpert DG 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 The procedure will involve three spreadsheets e The Target EconExpert DG Model is the model that you want to identify the changes in o The Target model MUST be opened FIRST e The Reference EconExpert DG 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 e The COMPARISION
320. y quarter can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue shaded cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu Revised 7 14 03 Page 101 EconExpert DG Users Manual Copyright 2001 2005 XX Value of Site Uses of Thermal Energy Therm WITH DG Global Inputs This is the quarterly average price of thermal energy gas or other fuel in Therm in Base Year at the site if WITH DG in Operation The entered amount will be escalated by the GNP Escalator plus the Real Escalation Factor input to the right These equivalent fuel prices will be used to determine THERMAL SAVINGS associated with offset fuel purchases due to use of waste heat from the DG plant If the quarterly fuel prices do not vary at a constant escalation rate over the life of the project annual fuel prices by quarter can be entered in Table 1C Project Annual Inputs Historical data entered in the Monthly Sheet can be transferred into this blue cell by executing the UTILITIES Populate with Data From option on the EconExpert Command Menu xxi DG Plant Fuel Price Therm Global Inputs This is the price of gas or other fuel in Therm in Base Year for the DG Facility The entered amount will be escalated by the GNP Escalator plus the Real Escalation Factor input to the right Fuel prices will be used to determine the cost of fue

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