Lease Financing Structure Development F i n a n c i a l C o n s u l t i n g S e r v i c e s

Client Profile Large ($1+ billion/yr) regulated utility seeking to create a lease-financed subsidiary to develop new generating assets Focus on economic performance roll-up to the parent company New entity structured to quickly access capital to allow for rapid expansion

Engagement Activities Development of a structured lease financing model to forecast the economics of project development, ownership, and operation Consider the development of several $200 million electric generating assets Allow for flexibility in project development scope and timing Coordinate efforts with client financial staff to the CFO level

Lease Financing Model

Capital Requirements

Revenues to Parent Company

EPS Impact of Lease Vehicle

Cash Flows Characterization

Engagement Results Delivery of model to client; instruction of client on model functionality Continued development of lease structure by client Client use of model to obtain financing from investment banks Client expansion under lease structure