1 / 9

A T-348 ENERGY PROJECT

A T-348 ENERGY PROJECT. Cut ENERGY cost by half? or more? Q: Is this POSSIBLE? A: YES!. Income Statement – no IMPROVEMENTS Total Revenues RRRRR Total Expenses EEEEEE NIBIT (Net Income Before Interest and Taxes) Less: Interest Payments Less: Taxes

nell
Download Presentation

A T-348 ENERGY PROJECT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A T-348 • ENERGY PROJECT

  2. Cut ENERGY cost by half? or more? Q: Is this POSSIBLE? A: YES!

  3. Income Statement – no IMPROVEMENTS • Total Revenues RRRRR • Total Expenses EEEEEE • NIBIT (Net Income Before Interest and Taxes) • Less: Interest Payments • Less: Taxes • NIAT (Net Income After Taxes) • Cash Flow Statement – no IMPROVEMENTS • Sources Revenues LESS Costs • Uses Taxes PLUS Interest PLUS Principal • NNCF (Equity & Project Streams) Sources LESS Uses • IRR (Equity & Project) Dependent upon Investment and NNCF

  4. Income Statement – with IMPROVEMENTS • Total Revenues RRRRR + EEE • Total Expenses EEE • NIBIT (Net Income Before Interest and Taxes) = HIGHER • Less: Interest Payments = slightly higher (influenced by decisions) • Less: Taxes = very slightly higher • NIAT (Net Income After Taxes) = HIGHER • Cash Flow Statement – with IMPROVEMENTS • Sources Revenues LESS Costs = HIGHER • Uses Taxes PLUS Interest PLUS Principal = (decisions) • NNCF (Eq & Proj Streams) Sources LESS Uses = HIGHER • IRR (Equity & Project) Higher Streams == HIGHER IRR

  5. Tristan Calasanz – I have been there before • Vice President for Utility Operations – National Power Corporation • Assets: US$10 billion; Gross Revenues: US$1 billion (1983) • Energy-Efficiency Savngs: US$15 million (1983) • Vice President for Project Development – First Private Power Corporation • Co-Generation Faciility: Conceptualization, Feasibility Studies, Engineering, Bid Evaluation • Project Investment: US$65 million • Associate for Energy Management – SGV&CO/ArthurAndersen&CO

  6. PROJECT "TRIO" • PROPONENT • Target • Small Equity, &/or No Cash Out Possible • Signs a Fixed-Term Contract with an IPP • Ind. Power Producer (IPP) / Target Subsidiary • BOT - Build-Operate-Transfer • BOO - Build-Operate-Own • Financing Institution • JP Morgan / Target Bank: "Project-Finance“ • Loans are assured with Contract

  7. IPP's Business Elements • Partner with an Engineering Firm • Design and Build Standardized Packaged Units • in Container Vans for Portability • Requirement: Clean Fuel, e.g., Natural Gas • Equipment • ICE: Caterpillar, and/or Clunkers • Heat Pumps: York, and/or Sanyo + Kawasaki + Mitsubishi + HVAC/R Contractor • Project-Finance

  8. ELECTRICITY Owner: Reduced outside procurement IPP: Displaced with energy from fuel and from heat pump P&L Income Stream: Displaced electricity - Proponent-Owned ENERGY SERVICES Owner-Owned: Substantial savings IPP-Owned: High Internal Rate of Return PRODUCT/COMMODITY IPP: Pioneer in "packaged cogeneration" systems (a Niche) IPP: Eligible for Export Overall Net Effect

  9. Merchandise / Commodity • Services Provided • Supply energy in the form of electricity, heating, chilling • Radically alter the Income Statement: Revenues, Expenses, Bottom Line • Strategic Advantage • Energy Cost Reduction • Transportable for easy replication to different sites • Competition • Walmart, Trader Joe’s, Haggen, Whole Foods, Safeway • Costco, Sam’s Club

More Related