Investor Presentaiton
Fuel and Operating Cost Savings
Reduce GPL's exposure to volatile international oil prices
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In 2012, GPL's fuel bill alone was $117 MM for 727 GWh of generation; the fuel and operations cost alone
today is 19 and 30 US ¢/kWh for HFO and diesel generation, respectively
With AHP, the total cost will be reduced to ~11 US ¢/kWh in the first year of operation and ~9 US ¢/kWh
over the 20 year PPA term
Once the asset is transferred to GPL after 20 years, the cost will be less than 2 US ¢/kWh
The graph below sets forth a comparison of the fuel and operating costs alone (excluding GPL's need to
replace aging generation units) with and without AHP and assumes no fuel price increases from today
20
20
18
16
Yrs 1-12 savings = US
$991 MM or 40%
14
US ¢/kWh
12
12
8
6
Yrs 13-20 savings:
=
10
4
2
0
US$1.15B or 71%
Yrs 21-100 savings
US$14.8B or 91%
AHP Cost GPL Current Cost
=
2017
2023
2029
2035
2041
2047
2053
2059
2065
2071
2077
2083
2089
2095
2101
2107
2113
5
SITHE GLOBALView entire presentation