Puerto Rico Electric T&D Opportunity
Front-End
Transition
Service Fee
Fixed Fee
Incentive Fee
Key Financial Contract Terms
Front-End Transition Period Compensation
Fixed Front-End Transition Service Fee of US$60M
Reimbursement of actual costs to provide Front-End Transition Services
O&M Services Period Compensation
Fixed Fee for each Contract Year (July 1 to June 30) paid monthly
Year 1 - US$70M; Year 2 - US$90M; Year 3 - US$100M; Year 4 to 16 - US$105M
Adjusted pro-rata for any partial Contract Year
Fixed Fee escalated annually at US CPI
System operating costs and capital expenditures are flow-through expenditures
LUMA's costs for Executives, Board of Directors, and general corporate administration
will be borne by LUMA and paid from the Fixed Fee
Incentive Fee up to a maximum of ~20% of the Fixed Fee in each Contract Year
Year 1 - US$13M; Year 2 - US$17M; Year 3 - US$19M; Year 4 to 16 - US$20M
Incentive Fee escalated annually at US CPI
Note: All compensation figures above are at the LUMA level. Canadian Utilities Limited holds a 50% interest in LUMA.
6
ATCOView entire presentation