CES

Power Plant Capital Cost Model

User Inputs

Plant Cost

$/KW

Construction Period (1-4)

yrs

Operating Life (max 30)

yrs

Escalation Factor

Prop Tax & Insurance

Tax Rate

Tax Life

yrs

Debt Rate

Equity Rate

Debt Share

Equity Share

100% - Debt Share

Tax Depreciation Schedule

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Year 21

Year	Year
Period	First year of operation is assumed to be period 1. All present values are calculated to year 1.
Construction Payment Timing	Based on length of construction.
Construction Cost Real Year 1 $	Total construction costs divided by length of construction.
Construction Cost Nominal $	Construction Real Yr 1 $ * (1+Escalation Rate)^(Period-Year 1 Period)
Interest During Construction	(One half of Nominal Construction Cost + previous year's Cumulative Construction Cost) * Debt Rate.
Cumulative Tax Basis	Cumulative Construction Cost + Interest During Construction.
Tax Depreciation Schedule	Based on IRS schedule for 20-year recovery rate.
Tax Depreciation	Cumulative Tax Basis * Tax Depreciation Schedule.
Property Tax & Insurance (Ptax & Insur)	Cumulative Tax Basis * Property Tax & Insurance rate.
Revenue	Project revenue. For IRR and NPV calculations, Revenue values are input. For FCR calculations, Revenue for first year after construction is completed is calculated. For all calculations, year 2 onward is grown at Escalation Factor.
Taxable Income	Revenue - Tax Depreciation - Property Tax & Insurance
Income Tax	Taxable Income * Tax Rate.
Cash Flow	Taxable Income - Income Tax + Tax Depreciation
Year 1 Present Value - Cash Flow	For IRR calculation = Cash Flow / (1+IRR)^Period For NPV and FCR calculations = Cash Flow / (1+WACC)^Period
Simple Cycle Combustion Turbine Plant	Includes assets used in the production of electricity for sale by the use of such prime movers as jet engines, combustion turbines, diesel engines, gasoline engines, and other internal combustion engines, their associated power turbines and/or generators, and related land improvements. Does not include combustion turbines operated in a combined cycle with a conventional steam unit.
Steam/Combined Cycle	Includes assets used in the steam power production of electricity for sale, combustion turbines operated in a combined cycle with a conventional steam unit and related land improvements. Also includes package boilers, electric generators and related assets such as electricity and steam distribution systems as used by a waste reduction and resource recovery plant if the steam or electricity is normally for sale to others.