STEAMBOAT ENVIROSYSTEMS POWER PLANTS PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 The following pro forma statement of operations reflects the combined results of operations of the Steamboat Facilities for the year ended December 31, 1995, adjusted to eliminate those costs which will no longer exist as a result of the purchase of interests by the Company and Far West Capital, Inc. This statement is not necessarily indicative of what results of operations would have been had the Company acquired its interest in the Steamboat Facilities operations at the beginning of 1995 or of what future results of operations may be. This statement should be read in conjunction with that of Far West Electric Energy Fund L.P. (of which Steamboat 1 is a part) and 1A Enterprises (Steamboat 1A) included elsewhere in this Prospectus. 1 and 1A Pro Forma Historical 1 and 1A Combined Adjustments Adjusted Revenue: Electric Power $3,404,000 $3,404,000 Other 145,000 145,000 Total Revenues 3,549,000 3,549,000 Expenses: Operations: Depreciation 727,000 (547,000) (1) 180,000 Royalty 615,000 (275,000) (2) 340,000 Other 1,074,000 1,074,000 Interest 816,000 (816,000) (3) Total Expenses (3,232,000) (1,638,000) 1,594,000 Net Income $ 317,000 $1,638,000 $1,955,000 Resulting Income to U.S. Envirosystems, Inc.: Preferred 18% $1,800,000 50% of Balance 77,000 Total $1,877,000 Notes to proforma condensed combined statement of operations (1) To record estimated reduction of depreciation for new basis in assets acquired, assuming a 30 year depreciation period. (2) To eliminate royalty expense of certain royalty agreements cancelled. (3) To eliminate interest expense due to elimination of all debt including debt owed to Westinghouse Electric Corporation.