1.0

Introduction

1-1

2.0

Conclusions

2-1

3.0

Preliminary Screening of Ownership/Financing Alternatives

3-1

3.1

Tax-Exempt Financing – “Private Ownership”

3-1

3.2

Taxable Financing – “Private Ownership”

3-4

3.3

PGW Participation

3-5

3.4

Regulation of the Project

3-7

3.5

Screening Review

3-8

4.0

Definition of Study Alternatives

4-1

4.1

Public Option I

4-1

4.2

Public Option II

4-2

4.3

Private Option III

4-3

4.4

Private Option I

4-3

4.5

Private Option II

4-4

4.6

Selected Alternatives for Further Studies

4-5

5.0

Financial Analysis of Selected Alternatives

5-1

5.1

Description of Computer Models

5-2

5.1.1

Model 1 – Cash Flow During Construction Period

5-3

5.1.2

Model 2 – Debt Service

5-4

5.1.3

Model 3 – Forecasted Financial Results of Operation

5-4

5.2

Statement of Assumptions

5-5

5.2.1

Model 1 – Cash Flow During Construction

5-5

5.2.2

Model 3 – Financial Schedule

5-9

5.3

Projection of Operating Results

5-10

5.4

Adopted Base Case (with revised Interest Rate)

5-11

6.0

Sensitivity Analysis

6-1

6.1

Changes in Coal Pricing

6-1

6.2

Effect of Long term Interest Rates

6-3

6.3

Effect of Construction Costs

6-4

6.4

Removal of Specific Tax Credits

6-5

6.5

Oxygen Purchase Option

6-5

6.6

Coal Terminal Option

6-6

6.7

Combined Cycle Option

6-7

Appendix

A

Case II – Tax Exempt

B

Case IV – Partnership with SFC

C

Case V – Partnership without SFC

D

Case IV – Base Case with New Assumptions