An Examination of
Nova Scotia Power Incorporated’s
Green Power Rider
19 July 2002
In December 2001, Nova Scotia Power Incorporated (NSPI) made application to the Nova Scotia Utility and Review Board for an Optional Green Power Rider to be added to their existing Domestic (that is, residential) Services Rates [1]. The proposed Green Power Rider is intended to offer NSPI’s residential customers the opportunity to purchase ‘green power’. (Subsequent references to NSPI’s submission will be referred to as ‘the document’.)
The Green Power Rider is a ‘premium price option’. The proposed premium price is $5.00 for 125 kilowatt-hour per month ‘block’ of electrical energy. This is equivalent to a premium of 4 cents per kilowatt-hour; that is, the cost of a kilowatt-hour is the existing residential rate (at the time of writing, 8.35 cents per kilowatt-hour) plus 4 cents, for a total of 12.35 cents per kilowatt-hour. For example, if someone purchased a single block of ‘green power’ and used 200 kilowatt-hours of electricity, they would be charged 12.35 cents per kilowatt-hour for the first 125 kilowatt-hours and 8.35 cents per kilowatt-hour for the remaining 75 kilowatt-hours.
NSPI’s Green Power Rider is essentially a public relations exercise; as NSPI’s web site explains [2]:
With Green Power, Nova Scotia Power and Nova Scotians can feel good about making a contribution to a cleaner, greener, environment. It's an important first step in improving our environmental performance.
This report examines NSPI’s Green Power Rider submission to the UARB.
NSPI’s web site would seem to suggest that ‘green power’ would be produced from the two wind turbines it purchased in 2001 (see next section). However, according to the document, NSPI has the option to purchase ‘green credits’ (equivalent to blocks of ‘green’ electricity) from generators outside the province. In these circumstances, residential customers will still be expected to pay the Green Power premium pricing although the power will not be produced locally.
NSPI has purchased two turbines for its Green Power programme. According to the Emera Annual Report for 2001, these turbines are rated at 1.3 megawatts [3]. However, the document refers to these turbines as having a combined rating of 1.2 megawatts.
According to the document, the two turbines were purchased in 2001. The total capital expenditure on these turbines was $2,954,240. However, because these turbines were intended for a renewable energy programme, the Federal government refunded NSPI the 44 percent Capital Cost Allowance (CCA), meaning that the true cost to NSPI was:
$2,954,240 - ($2,954,240 x 0.44) = $1,654,374
It should be noted that this is not the value used by NSPI in the document. In the document, NSPI includes the cost of marketing and promoting the turbines ($48,000) as part of the overall cost of the turbines:
$2,954,240 + $48,000 = $3,002,986
This amount is then subject to the 44 percent CCA refund:
$3,002,986 - ($3,002,986 x 0.44) = $1,681,254
It is important to know the number of kilowatt-hours (kWh) that NSPI expects to generate from its turbines, since this can be used to determine the cost per kilowatt-hour.
The document does not discuss or indicate how many kilowatt-hours the turbines are expected to generate; however, it is possible to estimate this from information in the document:
$152,000 / $5.00 per block = 30,400 blocks
The sale of 30,400 blocks at 125 kWh each suggests that NSPI expects to generate 3.8 million kWh per year:
30,400 blocks x 125 kWh per block = 3.8 million kWh
8760 hours per year x 600kW x 2 turbines = 10.512 million kWh per year
Depending upon the sites selected, the turbines can be expected to generate upwards of 35 percent of their maximum output:
10.512 million kWh per year x 0.35 = 3.68 million kWh per year
These two methods, based upon the data supplied by in the document, suggest that NSPI expects to produce about 3.7 million kWh each year from these two turbines.
According to a report in the Daily News [4], NSPI expects to generate 3.9 million kWh from these turbines. (This figure is used throughout the remainder of the report.)
3.9 million kWh x 4 cents / kWh = $156,000
Or $4,000 per year (about 2.5 percent) more than their submission states.
The cost to generate a kilowatt-hour of electricity is important to know when determining the overall rate to charge a customer.
A common method of determining the cost per kilowatt-hour from a particular generating source is to use the ‘levelized cost’. The levelized cost consists of two components:
The levelized costs for NSPI’s turbines are based upon the data shown in the following table:
Capital costs (turbine plus marketing) |
$1,681,254 |
Operating and Maintenance (annual) |
$51,000, escalating at 2% per year |
Expected output (annual) |
3.9 million kWh |
Expected lifetime of the turbines |
20 years |
To determine the operating and maintenance costs for the lifetime of the project, it is necessary to know the initial annual expenditure ($51,000), the annual cost increase (2%), and the lifetime of the project (20 years). The costs for the lifetime of t
he project are calculated as follows:
= Initial annual expenditure x ((1 + cost increase) lifetime - 1) / cost increase
= $51,000 x (1.0220 - 1) / 0.02
The levelized cost, based upon this information, is therefore:
Total cost = $1,681,254 + $51,000 x (1.0220 - 1) / 0.02
= $1,681,254 + $51,000 x 24.3
= $1,681,254 + $1,239,165
= $2,920,419
Levelized cost over 20 years:
= Total cost / kilowatt-hours produced
= $2,920,419 / (3.9 million kWh per year x 20 year)
= $0.0374 per kWh
Or about 3.7 cents per kWh.
Cost |
Cost (per kWh) |
Capital, operating and maintenance costs |
$0.012 to $0.037 |
Projected fuel costs (from [6]) |
$0.031 |
Levelized cost |
$0.043 to $0.068 |
The levelized cost of 3.7 cents per kilowatt-hour of wind generated electricity is better than the ‘best case’ coal fired technology. Since this technology is not available to NSPI, it is reasonable to assume that NSPI’s levelized cost is in the range gi
ven ($0.043 to $0.068 per kWh).
The author would like to thank Mr. Luke Miller, a graduate student in the Department of Mechanical Engineering at Dalhousie University, for several conversations regarding this section.
The cash flows are a necessary feature of any business plan, since they allow the proponent to decide whether the project will lose money, break even, or make money.
NSPI determines the annual cash flow as follows:
Annual cash flow = cash inflow - cash outflow - tax
where:
Cash inflow: revenue from residential customers.
Cash outflow: expenses from the project. These are positive if money is spent and negative if money is saved. NSPI lists four cash outflows:
Tax: the tax rate is 44 percent of the net cash flow (cash inflow - cash outflow).
The viability of a project can be determined using the ‘Net Present Value’ (NPV), a calculation of the present value of an investment’s future net cash flows minus the initial investment. The value of the future cash flows is discounted to a predetermi ned interest rate. The Net Present Value can be defined as:
Net Present Value = Sum of discounted annual cash flows - initial investment
If the Net Present Value is positive (that is, the sum of the discounted annual cash flows are greater than the initial investment), the investment should be made (unless a better investment exists), otherwise it should not [7].
NSPI’s initial investment consists of the following, both of which occur in the first year only (2001):
The document determines the Net Present Value of the turbines using two different cash inflows, both of which are now discussed.
In the first table (reproduced at the end of this report), NSPI assumes that the power generated by the turbines replaces that of existing generating assets, consequently, the cash inflow remains unchanged (i.e., it is zero). What does change is the a voided variable generating costs and avoided capital costs (they become negative, that is, a savings to NSPI, since NSPI is not required to produce electricity from these generating assets). There is, not surprisingly, an additional expense, the operatin g costs of the turbines (starting at $51,000 per year with a 2 percent escalator).
According to data presented in the first table, the Net Present Value of the turbines if there is no change in the residential revenues is about -$838,000. Due to rounding errors, the Net Present Value in the document differs by about $1,000 from the Net Present Value in this report.
The Net Present Value is negative because the sum of the discounted annual cash flows (i.e., the savings made in the avoided variable generation costs and the avoided variable capital costs, plus the turbine operating costs) is less than the initial ex penditures.
There are a number of omissions in the document regarding this table and the way the Net Present Value is obtained, notably:
In the second table (reproduced at the end of this report), NSPI introduces the Green Power Premium of 4 cents per kilowatt-hour. As stated earlier, this means that NSPI is charging the residential rate (currently 8.35 cents per kilowatt-hour) plus th e premium. This table is based upon revenues of $152,000 per year (that is, the sale of 3.8 million kilowatt-hours). As with the previous table, it is assumed that the turbines simply displace existing generation assets.
In the second table, the Net Present Value is positive, suggesting that NSPI should go ahead with the project. In the document, the Net Present Value is slightly lower than those shown in this report ($963 rather than $1031); this difference appears t o be attributable to rounding errors.
As with the first table, there are a number of omissions in the document regarding this table, notably:
A third table (reproduced at the end of the report) shows the Net Present Value if the turbines produce 3.9 million kilowatt-hours of electricity (that is, the annual residential revenue is $156,000 rather than $152,000). In this case, the Net Present Value increases to over $24,000 (using the same discount rate found in the second table).
Another way to consider these turbines is to assume that they are producing ‘new’ power that does not displace any existing generation assets. If this approach is taken, the residential revenues can be considered ‘new’ as well (given the growth in the residential home market, this is a reasonable assumption). In this case, the Net Present Value is positive, over $41,000.
The value of the residential rate is not fixed at 8.35 cents per kilowatt-hour (as it appears to be in the document); instead, the rate increases at one percent a year. By 2021, the rate is 10.09 cents per kilowatt-hour. The Net Present Value is calc ulated using the same discount rate presented in the second table.
In addition to the above discussions regarding the tables supplied in the document, the following should be noted:
According to the Emera 2001 Annual Report, NSPI had the following electricity sales [3]:
Sector |
Total (GWh) |
Residential |
3,756.7 |
Commercial |
2,724.9 |
Industrial |
3,831.6 |
Other |
592.6 |
Total |
10,905.8 |
The proposed green power programme, if included as part of NSPI’s generating capacity would amount to:
= 3.9 million kWh (3.8 GWh) / 10,905.8 GWh
= 0.035%
The additional capacity of these two turbines is negligible.
NSPI is proposing a Green Power Rider for its residential customers that is 4 cents per kilowatt-hour over and above the existing residential rate.
As this report has shown, the Green Power Rider cannot be justified for a number of reasons, notably:
The UARB should reject NSPI’s Green Power Rider and require NSPI to include these turbines as part of their existing generation assets. The cost per kilowatt-hour of these turbines compares favourably with NSPI’s existing generating assets.
Table 1: No change in residential revenue (from Table 1 of document)
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
Residential revenue |
||||||||||
Total cash inflow |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Incremental cash outflows: |
||||||||||
Avoided variable generation costs |
(268,014) |
(165,680) |
(180,614) |
(126,426) |
(177,498) |
(172,520) |
(176,130) |
(141,436) |
(159,562) |
|
Avoided capital generation costs |
0 |
0 |
0 |
(16,530) |
(16,872) |
(17,214) |
(17,556) |
(17,936) |
(18,278) |
|
Generation operating costs |
51,000 |
52,020 |
53,060 |
54,122 |
55,204 |
56,308 |
57,434 |
58,583 |
59,755 |
|
Marketing and promotion |
48,000 |
|||||||||
Total cash outflows |
48,000 |
(217,014) |
(113,660) |
(127,554) |
(88,834) |
(139,166) |
(133,426) |
(136,252) |
(100,789) |
(118,085) |
Net cash flow |
(48,000) |
217,014 |
113,660 |
127,554 |
88,834 |
139,166 |
133,426 |
136,252 |
100,789 |
118,085 |
Capital expenditures |
(2,954,240) |
|||||||||
Total net cash flow |
(3,002,240) |
217,014 |
113,660 |
127,554 |
88,834 |
139,166 |
133,426 |
136,252 |
100,789 |
118,085 |
Tax |
1,320,986 |
(95,486) |
(50,010) |
(56,124) |
(39,087) |
(61,233) |
(58,707) |
(59,951) |
(44,347) |
(51,958) |
Cash flow after tax |
(1,681,254) |
121,528 |
63,650 |
71,430 |
49,747 |
77,933 |
74,718 |
76,301 |
56,442 |
66,128 |
NPV |
(837,104) |
Table 1 (continued)
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Residential revenue |
|||||||||||
Total cash inflow |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Incremental cash outflows: |
|||||||||||
Avoided variable generation costs |
(163,628) |
(133,418) |
(157,320) |
(154,888) |
(239,514) |
(132,772) |
(264,784) |
(188,594) |
(201,020) |
(158,042) |
(161,196) |
Avoided capital generation costs |
(18,658) |
(19,038) |
(19,418) |
(19,798) |
(20,216) |
(25,422) |
(25,954) |
(26,448) |
(25,232) |
(25,764) |
(26,258) |
Generation operating costs |
60,950 |
62,169 |
63,412 |
64,680 |
65,974 |
67,293 |
68,639 |
70,012 |
71,412 |
72,841 |
74,297 |
Marketing and promotion |
|||||||||||
Total cash outflows |
(121,336) |
(90,287) |
(113,326) |
(110,006) |
(193,756) |
(90,901) |
(222,099) |
(145,030) |
(154,840) |
(110,965) |
(113,157) |
Net cash flow |
121,336 |
90,287 |
113,326 |
110,006 |
193,756 |
90,901 |
222,099 |
145,030 |
154,840 |
110,965 |
113,157 |
Capital expenditures |
|||||||||||
Total net cash flow |
121,336 |
90,287 |
113,326 |
110,006 |
193,756 |
90,901 |
222,099 |
145,030 |
154,840 |
110,965 |
113,157 |
Tax |
(53,388) |
(39,726) |
(49,863) |
(48,402) |
(85,253) |
(39,996) |
(97,723) |
(63,813) |
(68,129) |
(48,825) |
(49,789) |
Cash flow after tax |
67,948 |
50,561 |
63,463 |
61,603 |
108,503 |
50,904 |
124,375 |
81,217 |
86,710 |
62,141 |
63,368 |
Table 2: Application of the Green Power Premium (from Table 2 of document)
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
Residential revenue |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
|
Total cash inflow |
0 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
Incremental cash |
||||||||||
Avoided variable |
(268,014) |
(165,680) |
(180,614) |
(126,426) |
(177,498) |
(172,520) |
(176,130) |
(141,436) |
(159,562) |
|
Avoided capital |
0 |
0 |
0 |
(16,530) |
(16,872) |
(17,214) |
(17,556) |
(17,936) |
(18,278) |
|
Generation |
51,000 |
52,020 |
53,060 |
54,122 |
55,204 |
56,308 |
57,434 |
58,583 |
59,755 |
|
Marketing |
48,000 |
|||||||||
Total cash outflows |
48,000 |
(217,014) |
(113,660) |
(127,554) |
(88,834) |
(139,166) |
(133,426) |
(136,252) |
(100,789) |
(118,085) |
Net cash flow |
(48,000) |
369,014 |
265,660 |
279,554 |
240,834 |
291,166 |
285,426 |
288,252 |
252,789 |
270,085 |
Capital expenditures |
(2,954,240) |
|||||||||
Total net cash flow |
(3,002,240) |
369,014 |
265,660 |
279,554 |
240,834 |
291,166 |
285,426 |
288,252 |
252,789 |
270,085 |
Tax |
1,320,986 |
(162,366) |
(116,890) |
(123,004) |
(105,967) |
(128,113) |
(125,587) |
(126,831) |
(111,227) |
(118,838) |
Cash flow after tax |
(1,681,254) |
206,648 |
148,770 |
156,550 |
134,867 |
163,053 |
159,838 |
161,421 |
141,562 |
151,248 |
NPV |
1,031 |
Table 2 - continued.
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Residential revenue |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
Total cash inflow |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
152,000 |
Incremental cash outflows: |
|||||||||||
Avoided variable generation costs |
(163,628) |
(133,418) |
(157,320) |
(154,888) |
(239,514) |
(132,772) |
(264,784) |
(188,594) |
(201,020) |
(158,042) |
(161,196) |
Avoided capital generation costs |
(18,658) |
(19,038) |
(19,418) |
(19,798) |
(20,216) |
(25,422) |
(25,954) |
(26,448) |
(25,232) |
(25,764) |
(26,258) |
Generation operating costs |
60,950 |
62,169 |
63,412 |
64,680 |
65,974 |
67,293 |
68,639 |
70,012 |
71,412 |
72,841 |
74,297 |
Marketing and promotion |
|||||||||||
Total cash outflows |
(121,336) |
(90,287) |
(113,326) |
(110,006) |
(193,756) |
(90,901) |
(222,099) |
(145,030) |
(154,840) |
(110,965) |
(113,157) |
Net cash flow |
273,336 |
242,287 |
265,326 |
262,006 |
345,756 |
242,901 |
374,099 |
297,030 |
306,840 |
262,965 |
265,157 |
Capital expenditures |
|||||||||||
Total net cash flow |
273,336 |
242,287 |
265,326 |
262,006 |
345,756 |
242,901 |
374,099 |
297,030 |
306,840 |
262,965 |
265,157 |
Tax |
(120,268) |
(106,606) |
(116,743) |
(115,282) |
(152,133) |
(106,876) |
(164,603) |
(130,693) |
(135,009) |
(115,705) |
(116,669) |
Cash flow after tax |
153,068 |
135,681 |
148,583 |
146,723 |
193,623 |
136,024 |
209,495 |
166,337 |
171,830 |
147,261 |
148,488 |
Table 3: Residential revenues of $156,000 per year
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
Residential revenue |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
|
Total cash inflow |
0 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
Incremental cash |
||||||||||
Avoided variable |
(268,014) |
(165,680) |
(180,614) |
(126,426) |
(177,498) |
(172,520) |
(176,130) |
(141,436) |
(159,562) |
|
Avoided capital |
0 |
0 |
0 |
(16,530) |
(16,872) |
(17,214) |
(17,556) |
(17,936) |
(18,278) |
|
Generation |
51,000 |
52,020 |
53,060 |
54,122 |
55,204 |
56,308 |
57,434 |
58,583 |
59,755 |
|
Marketing and promotion |
48,000 |
|||||||||
Total cash outflows |
48,000 |
(217,014) |
(113,660) |
(127,554) |
(88,834) |
(139,166) |
(133,426) |
(136,252) |
(100,789) |
(118,085) |
Net cash flow |
(48,000) |
373,014 |
269,660 |
283,554 |
244,834 |
295,166 |
289,426 |
292,252 |
256,789 |
274,085 |
Capital expenditures |
(2,954,240) |
|||||||||
Total net cash flow |
(3,002,240) |
373,014 |
269,660 |
283,554 |
244,834 |
295,166 |
289,426 |
292,252 |
256,789 |
274,085 |
Tax |
1,320,986 |
(164,126) |
(118,650) |
(124,764) |
(107,727) |
(129,873) |
(127,347) |
(128,591) |
(112,987) |
(120,598) |
Cash flow after tax |
(1,681,254) |
208,888 |
151,010 |
158,790 |
137,107 |
165,293 |
162,078 |
163,661 |
143,802 |
153,488 |
NPV |
24,669 |
Table 3: continued.
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Residential revenue |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
Total cash inflow |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
156,000 |
Incremental cash |
|||||||||||
Avoided variable |
(163,628) |
(133,418) |
(157,320) |
(154,888) |
(239,514) |
(132,772) |
(264,784) |
(188,594) |
(201,020) |
(158,042) |
(161,196) |
Avoided capital |
(18,658) |
(19,038) |
(19,418) |
(19,798) |
(20,216) |
(25,422) |
(25,954) |
(26,448) |
(25,232) |
(25,764) |
(26,258) |
Generation |
60,950 |
62,169 |
63,412 |
64,680 |
65,974 |
67,293 |
68,639 |
70,012 |
71,412 |
72,841 |
74,297 |
Marketing and promotion |
|||||||||||
Total cash outflows |
(121,336) |
(90,287) |
(113,326) |
(110,006) |
(193,756) |
(90,901) |
(222,099) |
(145,030) |
(154,840) |
(110,965) |
(113,157) |
Net cash flow |
277,336 |
246,287 |
269,326 |
266,006 |
349,756 |
246,901 |
378,099 |
301,030 |
310,840 |
266,965 |
269,157 |
Capital expenditures |
|||||||||||
Total net cash flow |
277,336 |
246,287 |
269,326 |
266,006 |
349,756 |
246,901 |
378,099 |
301,030 |
310,840 |
266,965 |
269,157 |
Tax |
(122,028) |
(108,366) |
(118,503) |
(117,042) |
(153,893) |
(108,636) |
(166,363) |
(132,453) |
(136,769) |
(117,465) |
(118,429) |
Cash flow after tax |
155,308 |
137,921 |
150,823 |
148,963 |
195,863 |
138,264 |
211,735 |
168,577 |
174,070 |
149,501 |
150,728 |
Table 4: Treating the turbines as ‘new’ power
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
Residential rate cents/kWh |
8.35 |
8.43 |
8.52 |
8.60 |
8.69 |
8.78 |
8.86 |
8.95 |
9.04 |
|
Residential revenue |
325,650 |
328,907 |
332,196 |
335,518 |
338,873 |
342,261 |
345,684 |
349,141 |
352,632 |
|
Total cash inflow |
0 |
325,650 |
328,907 |
332,196 |
335,518 |
338,873 |
342,261 |
345,684 |
349,141 |
352,632 |
Incremental cash outflows: |
||||||||||
Avoided variable generation costs |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Avoided capital generation costs |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Generation operating costs |
51,000 |
52,020 |
53,060 |
54,122 |
55,204 |
56,308 |
57,434 |
58,583 |
59,755 |
|
Marketing and promotion |
48,000 |
|||||||||
Total cash outflows |
48,000 |
51,000 |
52,020 |
53,060 |
54,122 |
55,204 |
56,308 |
57,434 |
58,583 |
59,755 |
Net cash flow |
(48,000) |
274,650 |
276,887 |
279,135 |
281,396 |
283,669 |
285,953 |
288,250 |
290,558 |
292,878 |
Capital expenditures |
(2,954,240) |
|||||||||
Total net cash flow |
(3,002,240) |
274,650 |
276,887 |
279,135 |
281,396 |
283,669 |
285,953 |
288,250 |
290,558 |
292,878 |
Tax |
1,320,986 |
(120,846) |
(121,830) |
(122,819) |
(123,814) |
(124,814) |
(125,819) |
(126,830) |
(127,845) |
(128,866) |
Cash flow after tax |
(1,681,254) |
153,804 |
155,056 |
156,316 |
157,582 |
158,854 |
160,134 |
161,420 |
162,712 |
164,011 |
NPV |
41,005 |
Table 4: continued.
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Residential rate cents/kWh |
9.13 |
9.22 |
9.32 |
9.41 |
9.50 |
9.60 |
9.69 |
9.79 |
9.89 |
9.99 |
10.09 |
Residential revenue |
356,159 |
359,720 |
363,317 |
366,951 |
370,620 |
374,326 |
378,070 |
381,850 |
385,669 |
389,525 |
393,421 |
Total cash inflow |
356,159 |
359,720 |
363,317 |
366,951 |
370,620 |
374,326 |
378,070 |
381,850 |
385,669 |
389,525 |
393,421 |
Incremental cash Outflows: |
|||||||||||
Avoided variable Generation costs |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Avoided capital Generation costs |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Generation Operating costs |
60,950 |
62,169 |
63,412 |
64,680 |
65,974 |
67,293 |
68,639 |
70,012 |
71,412 |
72,841 |
74,297 |
Marketing and Promotion |
|||||||||||
Total cash outflows |
60,950 |
62,169 |
63,412 |
64,680 |
65,974 |
67,293 |
68,639 |
70,012 |
71,412 |
72,841 |
74,297 |
Net cash flow |
295,209 |
297,551 |
299,905 |
302,270 |
304,646 |
307,033 |
309,430 |
311,838 |
314,256 |
316,685 |
319,123 |
Capital expenditures |
|||||||||||
Total net cash flow |
295,209 |
297,551 |
299,905 |
302,270 |
304,646 |
307,033 |
309,430 |
311,838 |
314,256 |
316,685 |
319,123 |
Tax |
(129,892) |
(130,923) |
(131,958) |
(132,999) |
(134,044) |
(135,094) |
(136,149) |
(137,209) |
(138,273) |
(139,341) |
(140,414) |
Cash flow after tax |
165,317 |
166,629 |
167,947 |
169,271 |
170,602 |
171,938 |
173,281 |
174,629 |
175,984 |
177,344 |
178,709 |