STEAMBOAT 1 GEOTHERMAL PLANT - PROJECTED CASH FLOW: 1996 - 2006
1996 1997 1998
Annual KWH Maximum 39,000,000 39,000,000 39,000,000
Availability % 97% 97% 97%
Saleable KWH 37,830,000 37,830,000 37,830,000
Energy rate $ 0.0717 $ 0.0259 $ 0.0259
Total Power Revenues 2,712,411 978,662 978,662
Royalty Income 144,000 144,000 45,578
Interest Income 72,000 72,000 72,000
Total Revenues 2,928,411 1,194,662 1,096,240
Operating Expenses:
SPPC Royalty 271,241 97,886 97,886
Royalty -
Booth, Harris, BSH 109,853 39,636 39,636
Royalty - GDA 50,000 - -
Oper'ns & Maintenance 640,000 665,600 692,224
Insurance 40,000 40,800 41,616
Personal Property Taxes 33,000 32,670 32,343
Net Proceeds of Mines Tax 5,000 5,050 5,101
Total Opertg Expenses 1,149,094 881,622 908,786
G & A Expenses
Legal & Accounting 30,000 30,900 31,827
Technical Consulting 10,000 10,300 10,609
Management Fees 25,000 25,750 26,523
Total G & A Expenses 65,000 66,950 68,959
Net Operating Income 1,714,317 246,090 118,496
Debt Service
(Westinghouse) 1,542,886 396,254 396,254
Cash Flow before
NOI net royalty; 171,432 (150,164) (277,758)
NOI net royalty - 73,827 35,549
Cash flow before
NOI net royalty 171,432 (150,164) (277,758)
Less, NOI net royalty - - -
Cash flow before accrued
NOI net royalty (150,164) (277,758)
Less, accrued NOI net royalty - -
Terminal Value:
Less, remaining accrued
NOI net royalty
Total: 171,432 (150,164) (277,758)
Accrued NOI net royalty - 73,827 109,376
1999 2000 2001
Annual KWH Maximum 39,000,000 39,000,000 39,000,000
Availability % 97% 97% 97%
Saleable KWH 37,830,000 37,830,000 37,830,000
Energy rate $ 0.0259 $ 0.0259 $ 0.0259
Total Power Revenues 978,662 978,662 978,662
Royalty Income 109,508 109,508 109,508
Interest Income 72,000 72,000 72,000
Total Revenues 1,160,170 1,160,170 1,160,170
Operating Expenses:
SPPC Royalty 97,886 97,886 97,886
Royalty -
Booth, Harris, BSH 39,636 39,636 39,636
Royalty - GDA - - -
Oper'ns & Maintenance 719,913 748,709 778,658
Insurance 42,448 43,297 44,163
Personal Property Taxes 32,020 31,700 31,383
Net Proceeds of Mines Tax 5,152 5,203 5,255
Total Opertg Expenses 937,035 966,411 996,961
G & A Expenses
Legal & Accounting 32,782 33,765 34,778
Technical Consulting 10,927 11,255 11,593
Management Fees 27,318 28,138 28,982
Total G & A Expenses 71,027 73,158 75,353
Net Operating Income 152,108 120,601 87,856
Debt Service
(Westinghouse) 396,254 396,254 396,254
Cash Flow before
NOI net royalty; (244,146) (275,653) (308,397)
NOI net royalty 45,632 36,180 26,357
Cash flow before
NOI net royalty (244,146) (275,653) (308,397)
Less, NOI net royalty - - -
Cash flow before accrued
NOI net royalty (244,146) (275,653) (308,397)
Less, accrued NOI net royalty - - -
Terminal Value:
Less, remaining accrued
NOI net royalty
Total: (244,146) (275,653) (308,397)
Accrued NOI net royalty 155,008 191,188 217,545
2002 2003 2004
Annual KWH Maximum 39,000,000 39,000,000 39,000,000
Availability % 97% 97% 97%
Saleable KWH 37,830,000 37,830,000 37,830,000
Energy rate $ 0.0259 $ 0.0259 $ 0.0259
Total Power Revenues 978,662 978,662 978,662
Royalty Income 109,508 109,508 109,508
Interest Income 72,000 72,000 72,000
Total Revenues 1,160,170 1,160,170 1,160,170
Operating Expenses:
SPPC Royalty 97,886 97,886 97,886
Royalty -
Booth, Harris, BSH 39,636 39,636 39,636
Royalty - GDA - - -
Oper'ns & Maintenance 809,804 842,196 875,884
Insurance 45,046 45,947 46,866
Personal Property Taxes 31,069 30,758 30,451
Net Proceeds of Mines Tax 5,308 5,361 5,414
Total Opertg Expenses 1,028,729 1,061,765 1,096,117
G & A Expenses
Legal & Accounting 35,822 36,896 38,003
Technical Consulting 11,941 12,299 12,668
Management Fees 29,851 30,747 31,669
Total G & A Expenses 77,613 79,942 82,340
Net Operating Income 53,828 18,464 (18,287)
Debt Service
(Westinghouse) 396,254 396,254 396,254
Cash Flow before
NOI net royalty; (342,426) (377,790) (414,541)
NOI net royalty 16,148 5,539 -
Cash flow before
NOI net royalty (342,426) (377,790) (414,541)
Less, NOI net royalty - - -
Cash flow before accrued
NOI net royalty (342,426) (377,790) (414,541)
Less, accrued NOI net royalty - - -
Terminal Value:
Less, remaining accrued
NOI net royalty
Total: (342,426) (377,790) (414,541)
Accrued NOI net royalty 233,694 239,233 239,233
2005 2006
Annual KWH Maximum 39,000,000 39,000,000
Availability % 97% 97%
Saleable KWH 37,830,000 37,830,000
Energy rate $ 0.0259 $ 0.0259
Total Power Revenues 978,662 978,662
Royalty Income 109,508 109,508
Interest Income 72,000 72,000
Total Revenues 1,160,170 1,160,170
Operating Expenses:
SPPC Royalty 97,886 97,886
Royalty -
Booth, Harris, BSH 39,636 39,636
Royalty - GDA - -
Oper'ns & Maintenance 910,920 947,356
Insurance 47,804 48,760
Personal Property Taxes 30,146 29,845
Net Proceeds of Mines Tax 5,468 5,523
Total Opertg Expenses 1,131,840 1,168,986
G & A Expenses
Legal & Accounting 39,143 40,317
Technical Consulting 13,048 13,439
Management Fees 32,619 33,598
Total G & A Expenses 84,810 87,355
Net Operating Income (56,480) (96,170)
Debt Service
(Westinghouse) 396,254 396,254
Cash Flow before
NOI net royalty; (452,734) (492,424)
NOI net royalty - -
Cash flow before
NOI net royalty (452,734) (492,424)
Less, NOI net royalty - 492,424
Cash flow before accrued
NOI net royalty (452,734) -
Less, accrued NOI net royalty - -
Terminal Value: (673,192)
Less, remaining accrued (731,657)
NOI net royalty
Total: (452,734) (1,404,849)
Accrued NOI net royalty 239,233 731,657
Assumed energy rate - 1997: $ 0.02587
Terminal Value Capitaliz'n rate: 10%
PV of Net Cash Flow at: 10% $ (1,883,641)
12% (1,638,760)
14% (1,432,160)
Note: This projection assumes that certain generator overhauls
are successful in raising output throughout the period
covered, and that Far West Capital is able to renegotiate
its Purchase Power Purchase Agreement to provide for
energy purchases for the second ten years of the
agreement at a flat rate significantly above current
market rates, but substantially below the rate for the
first ten years of the agreement. Given current short-
term avoided costs, this rate assumption appears highly
unlikely. Operations & Maintenance expenses are based on
higher of company's projected O & M expenses for 1997
($640 K) and annualization of latest 6- month Maintenance
expenses per partnership's 6/30/95 10-QSB ($558 k).
Changes per year from 1997 forward reflected in this
schedule are as follows: 4% increase in Operations and
Maintenance, 2% increase in Insurance, 1% decrease in
Property Taxes, 1% increase in Mines Tax Proceeds, and a
3% increase to account for inflation in each category
under G & A expenses.
Note: Saleable KWH assumes that generator overhauls are able to
increase output just over 5% on an annual basis from the
average output level of 1987-94.
Note: This projection further assumes that Far West is able to
renegotiate its indebtedness with Westinghouse Credit,
reducing the principal balance to the same extent as USE
has been able to do (by appx. 26%) and extending the term
of the loan to ten years commencing in 1996 at the same
interest rate, and that the company is able to apply 90%
of net cash flow in 1996 towards reducing the principal
of the loan, thus reducing subsequent payments of
principal and interest over the next nine years.
Note: Since the net royalty to BSH (30% of Net Operating
Income) is subordinated to debt service, it is assumed
that this royalty accrues until such time as the cash
flow of the project can begin to pay it. The projection
also assumes that whatever cash flow remains available
after debt service is applied to reducing the accrued
amount, after that year's royalty interest is paid.
Note: Terminal Value computation assumes constant growth in net
cash flow beyond 2006, and uses capitalization rate of
10%, which is applied to the net cash flow before
accumulated net royalty for 2006. It is assumed that the
accrued net royalty is subtracted from the terminal value
at this point, assuming hypothetical sale at ten times
net cash flow for this year.