1. 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

2. 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

3. 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

4. Lease Financing Model

5. Capital Requirements

6. Revenues to Parent Company

7. EPS Impact of Lease Vehicle

8. Cash Flows Characterization

9. 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