LRAC

2008 LRAC

Mid-Year Dates -->
ERC Approved
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Base Date
1-Jan-2008
Gross Capacity
MW
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
Total Capital Costs
$000
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
513,466
TCC per kW (Gross)
$/kW
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
2,567
Auxiliary Load
%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Net Capacity
MW
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
Net Gen Capacity
MW
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
Capacity Factor
%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
80.00%
Total Gen Sent Out
GWh
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
1,261
WACC
%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
13.27%
Return on Total Invetment
$000
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
71,301
Capacity Fee
P/kWh
2.2977
2.5436
2.6180
2.7061
2.7972
2.8913
2.9886
3.0892
3.1932
3.3006
3.4117
3.5265
3.6452
3.7679
3.8947
4.0258
4.1612
4.3013
4.4460
4.5957
4.7503
4.9102
5.0754
5.2462
5.4228
5.6053
5.7939
5.9889
6.1905
Capacity Fee Approved
P/kWh
2.2958
Foreign O&M Fee Approved
P/kWh
0.2782
0.2907
0.3169
0.3406
0.3662
0.3937
0.4232
0.4549
0.4890
0.5257
0.5652
0.6075
0.6531
0.7021
0.7547
0.8114
0.8722
0.9376
1.0079
1.0835
1.1648
1.2522
1.3461
1.4470
1.5556
1.6722
1.7976
1.9325
2.0774
Local O&M Fee Approved
P/kWh
0.3809
0.3980
0.4339
0.4664
0.5014
0.5390
0.5794
0.6229
0.6696
0.7198
0.7738
0.8318
0.8942
0.9613
1.0334
1.1109
1.1942
1.2838
1.3800
1.4835
1.5948
1.7144
1.8430
1.9812
2.1298
2.2895
2.4613
2.6459
2.8443
High Heat Rate Value
kJ/kWh
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
10,417
Heat Rate Degradation
%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
Net Heat Rate
kJ/kWh
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
10,575
Net Heat Rate
btu/kWh
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
10,023
Coal Cost
$/mt
52.574
94.75
85.28
76.75
79.82
83.01
86.33
89.78
93.38
97.11
101.00
105.04
109.24
113.61
118.15
122.88
127.79
132.90
138.22
143.75
149.50
155.48
161.70
168.16
174.89
181.89
189.16
196.73
204.60
Heat Content
GJ/mt
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
17.44
Heat Content
Btu/lb
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
7,498
Cost of Fuel
$/GJ
3.01
5.43
4.89
4.40
4.58
4.76
4.95
5.15
5.35
5.57
5.79
6.02
6.26
6.51
6.77
7.05
7.33
7.62
7.93
8.24
8.57
8.91
9.27
9.64
10.03
10.43
10.85
11.28
11.73
Cost of Fuel
$/MMbtu
3.17
5.72
5.15
4.63
4.82
5.01
5.21
5.42
5.64
5.86
6.10
6.34
6.59
6.86
7.13
7.42
7.71
8.02
8.34
8.68
9.02
9.38
9.76
10.15
10.56
10.98
11.42
11.87
12.35
Cost of Fuel - Net Generation
$/MWh
31.88
57.45
51.71
46.54
48.40
50.33
52.35
54.44
56.62
58.88
61.24
63.69
66.24
68.89
71.64
74.51
77.49
80.59
83.81
87.16
90.65
94.28
98.05
101.97
106.05
110.29
114.70
119.29
124.06
PHP - $US Exchange Rate
40.65
45.00
46.32
47.88
49.49
51.15
52.87
54.65
56.49
58.39
60.36
62.39
64.49
66.66
68.90
71.22
73.62
76.10
78.66
81.31
84.04
86.87
89.79
92.82
95.94
99.17
102.51
105.95
109.52
Cost of Fuel
P/kWh
1.2959
2.5854
2.3950
2.2280
2.3951
2.5748
2.7679
2.9755
3.1986
3.4385
3.6964
3.9736
4.2716
4.5920
4.9364
5.3067
5.7047
6.1325
6.5924
7.0869
7.6184
8.1898
8.8040
9.4643
10.1741
10.9372
11.7575
12.6393
13.5872
Cost of Fuel Approved
P/kWh
1.2962
LRAC
P/kwh
4.2511
5.82
5.76
5.74
6.06
6.40
6.76
7.14
7.55
7.98
8.45
8.94
9.46
10.02
10.62
11.25
11.93
12.66
13.43
14.25
15.13
16.07
17.07
18.14
19.28
20.50
21.81
23.21
24.70
LRAC w/ VAT
P/kWh
4.7612
6.52
6.46
6.43
6.79
7.17
7.57
8.00
8.46
8.94
9.46
10.01
10.60
11.23
11.89
12.61
13.36
14.17
15.04
15.96
16.94
17.99
19.12
20.32
21.60
22.96
24.43
25.99
27.66
Nominal Escalation
36.9%
-0.9%
-0.4%
5.6%
5.6%
5.6%
5.7%
5.7%
5.8%
5.8%
5.8%
5.9%
5.9%
5.9%
6.0%
6.0%
6.1%
6.1%
6.1%
6.2%
6.2%
6.2%
6.3%
6.3%
6.3%
6.4%
6.4%
6.4%
Real Escalation
25.6%
-9.1%
-7.3%
-1.8%
-1.8%
-1.7%
-1.7%
-1.7%
-1.6%
-1.6%
-1.6%
-1.5%
-1.5%
-1.4%
-1.4%
-1.4%
-1.3%
-1.3%
-1.3%
-1.2%
-1.2%
-1.2%
-1.1%
-1.1%
-1.1%
-1.1%
-1.0%
-1.0%
KSPC Price w/o VAT
4.28
5.47
5.57
5.67
5.95
6.24
6.54
6.86
7.20
7.55
7.92
8.31
8.72
9.15
9.60
10.07
10.57
11.10
11.65
12.22
12.83
13.47
14.14
14.85
15.59
16.37
17.18
18.04
18.95
KSPC Price w/ VAT
4.79
6.13
6.24
6.35
6.66
6.99
7.33
7.69
8.06
8.46
8.87
9.31
9.77
10.25
10.75
11.28
11.84
12.43
13.04
13.69
14.37
15.09
15.84
16.63
17.46
18.33
19.25
20.21
21.22
KSPC Price as % of LRAC
94%
97%
99%
98%
97%
97%
96%
95%
95%
94%
93%
92%
91%
90%
90%
89%
88%
87%
86%
85%
84%
83%
82%
81%
80%
79%
78%
77%
U.S. CPI
5.90%
5.90%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
U.S. PPI
12.50%
12.50%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
Avg. U.S. CPI & PPI
9.20%
9.20%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
Ph. CPI
9.0%
9.00%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
7.5%
40.65
45.00
46.32
47.88
49.49
51.15
52.87
54.65
56.49
58.39
60.36
62.39
64.49
66.66
68.90
71.22
73.62
76.10
78.66
81.31
84.04
86.87
89.79
92.82
95.94
99.17
102.51
105.95
109.52
US$/mt
83.23
150.00
135.00
121.50
126.36
131.41
136.67
142.14
147.82
153.74
159.89
166.28
172.93
179.85
187.04
194.53
202.31
210.40
218.81
227.57
236.67
246.14
255.98
266.22
276.87
287.95
299.46
311.44
323.90
Newcastle Coal Index
US$/GJ
3.31
5.97
5.37
4.84
5.03
5.23
5.44
5.66
5.88
6.12
6.36
6.62
6.88
7.16
7.44
7.74
8.05
8.37
8.71
9.06
9.42
9.80
10.19
10.60
11.02
11.46
11.92
12.40
12.89
Newcastle Coal Index
US$/MMbtu
3.49
6.30
5.67
5.10
5.31
5.52
5.74
5.97
6.21
6.46
6.71
6.98
7.26
7.55
7.85
8.17
8.50
8.84
9.19
9.56
9.94
10.34
10.75
11.18
11.63
12.09
12.58
13.08
13.60
Net Calorific Value for Index
kcal/kg
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
Net Calorific Value for Index
GJ/mt
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
25.1
Net Calorific Value for Index
btu/lb
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
10,802
VAT
12%
Conversion Factors
1 kJ
0.24 kcal
1 GJ
0.95 MMbtu
1 mt
2,205 lbs
1 kcal
3.969 btu
1 btu/lb
0.555 kcal/kg
1 GJ/mt
238.8 kcal/kg
1 GJ/mt
429.9 btu/lb
Year
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Annuzlized
1,998
-0.5
-0.1
-0.1
0.2
-0.2
-0.1
0.2
-0.2
0
0.4
-0.1
0.4
1,999
0.3(r)
-0.4(r)
0.2(r)
0.5(r)
0.2(r)
0.1(r)
0.2(r)
0.6(r)
0.7(r)
-0.1(r)
0.4(r)
0.2(r)
2,000
0
1
0.5
-0.3
0.1
0.8
0.1
-0.2
0.8
0.4
0.5
0.2
4.0%
2,001
0.9
0.1
-0.5
0.6
0.2
-0.4
-1.2
0.4
0.4
-1.6
-0.4
-0.4
-1.9%
2,002
-0.2
0.2
0.6
-0.1
-0.2
0.3
-0.1
0.1
0.4
0.6
0
-0.2
1.4%
2,003
1
1.1
0.9
-1.3
-0.2
0.6
0.1
0.6
0.2
0.6
-0.1
0.3
3.9%
2,004
0.4
0
0.3
0.8
0.9
-0.1
-0.1
0.2
0.1
1.6
0.6
-0.5
4.3%
2,005
0.5
0.5
0.6
0.5
-0.3
0.1
0.7
0.8
1.5
0.9
-0.9
0.5
5.5%
2,006
0.8
-1.1
0.3
0.7
0.1
0.6
-0.2
0.8
-1.4
-1.2
1.3
0.6
1.3%
2,007
-0.1
1.2
0.9
0.7
0.6
0.1
0.5
-0.8
0.5
0.5
2.6
-0.5
6.4%
2,008
1.2
0.3
0.9
0.3
1.4
1.8
1.2
12.5%
3.1%
Year
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Annuzlized
1,998
0.1
0
0
0.1
0.2
0.1
0.2
0.1
0.1
0.2
0.1
0.2
1,999
0.2
0
0.1
0.7
0.1
0
0.4
0.2
0.4
0.2
0.2
0.2
2.7%
2,000
0.3
0.4
0.6
-0.1
0.2
0.6
0.3
0
0.5
0.2
0.2
0.2
3.5%
2,001
0.6
0.2
0.1
0.2
0.5
0.2
-0.2
0
0.4
-0.3
-0.1
-0.1
1.5%
2,002
0.2
0.2
0.3
0.4
0.1
0.1
0.2
0.3
0.2
0.2
0.2
0.2
2.6%
2,003
0.4
0.5
0.2
-0.4
-0.2
0.1
0.3
0.4
0.3
-0.1
0.1
0.3
1.9%
2,004
0.4
0.3
0.2
0.2
0.4
0.4
0.1
0.2
0.2
0.5
0.4
0.1
3.5%
2,005
0
0.3
0.3
0.5
-0.2
0.1
0.7
0.7
1.3
0.2
-0.5
-0.1
3.4%
2,006
0.6
-0.1
0.2
0.5
0.3
0.3
0.5
0.4
-0.4
-0.5
0.1
0.6
2.5%
2,007
0.1
0.3
0.5
0.3
0.5
0.3
0.2
0
0.4
0.3
0.9
0.4
4.3%
2,008
0.4
0
0.3
0.2
0.6
1.1
0.8
5.9%
2.9%

KPSC Price

Kepco Pricing mechanism Before ERC 2008 Ruling on reduced LRAC
1/1/2008
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
FCP
1.0000
1.0460
1.1422
1.1879
1.2354
1.2849
1.3362
1.3897
1.4453
1.5031
1.5632
1.6258
1.6908
1.7584
1.8288
1.9019
1.9780
2.0571
2.1394
2.2250
2.3140
2.4065
2.5028
2.6029
2.7070
2.8153
2.9279
3.0450
3.1668
BP
27.72
49.96
44.96
40.47
42.08
43.77
45.52
47.34
49.23
51.20
53.25
55.38
57.60
59.90
62.30
64.79
67.38
70.07
72.88
75.79
78.82
81.98
85.26
88.67
92.21
95.90
99.74
103.73
107.88
TBP
24.85
29.83
29.09
28.36
28.64
28.93
29.22
29.51
29.81
30.11
30.41
30.71
31.02
31.33
31.64
31.96
32.28
32.60
32.93
33.26
33.59
33.92
34.26
34.61
34.95
35.30
35.65
36.01
36.37
CF
52.57
79.79
74.05
68.83
70.73
72.70
74.74
76.85
79.04
81.31
83.66
86.09
88.61
91.23
93.94
96.74
99.66
102.67
105.80
109.05
112.41
115.90
119.52
123.27
127.16
131.20
135.39
139.74
144.25
FX
40.65
45.00
46.32
47.88
49.49
51.15
52.87
54.65
56.49
58.39
60.36
62.39
64.49
66.66
68.90
71.22
73.62
76.10
78.66
81.31
84.04
86.87
89.79
92.82
95.94
99.17
102.51
105.95
109.52
LCP
1.0000
1.0450
1.1390
1.2245
1.3163
1.4150
1.5212
1.6353
1.7579
1.8897
2.0315
2.1838
2.3476
2.5237
2.7130
2.9164
3.1352
3.3703
3.6231
3.8948
4.1869
4.5009
4.8385
5.2014
5.5915
6.0109
6.4617
6.9463
7.4673
BIP
83.23
150.00
135.00
121.50
126.36
131.41
136.67
142.14
147.82
153.74
159.89
166.28
172.93
179.85
187.04
194.53
202.31
210.40
218.81
227.57
236.67
246.14
255.98
266.22
276.87
287.95
299.46
311.44
323.90
BBP
80.18
144.50
130.05
117.05
121.73
126.60
131.66
136.93
142.41
148.10
154.03
160.19
166.60
173.26
180.19
187.40
194.89
202.69
210.80
219.23
228.00
237.12
246.60
256.47
266.72
277.39
288.49
300.03
312.03
Kadj
1.2785
1.0184
1.0179
1.0487
1.0487
1.0488
1.0489
1.0489
1.0490
1.0491
1.0491
1.0492
1.0493
1.0493
1.0494
1.0494
1.0495
1.0496
1.0496
1.0497
1.0497
1.0498
1.0499
1.0499
1.0500
1.0500
1.0501
1.0501
K=KSPC Price
4.2798
5.47
5.57
5.67
5.95
6.24
6.54
6.86
7.20
7.55
7.92
8.31
8.72
9.15
9.60
10.07
10.57
11.10
11.65
12.22
12.83
13.47
14.14
14.85
15.59
16.37
17.18
18.04
18.95
Nominal Escalation
27.8%
1.8%
1.8%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
4.9%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
Real Escalation
17.3%
-6.6%
-5.3%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.4%
-2.3%
-2.3%
-2.3%
-2.3%
-2.3%
-2.3%
-2.3%
-2.3%