Minutes of the Annual Meeting of the Power - New York Power ...

Exhibit C
NEW YORK POWER AUTHORITY
HYDROELECTRIC PROJECTS
CAPITAL COST - EXISTING ASSETS
($000)
Equity-Financed
Original Cost
Depreciation Inflation Rate
Cumulative
Inflation Factor
Amortization of
Write-Up
("Inflation") Total
[1] [2] [3] [4] [5]
2004 26,175 5.20% 1.68 17,837 44,012
2005 25,521 5.50% 1.77 19,751 45,272
2006 24,883 3.00% 1.83 20,582 45,464
2007 24,261 3.00% 1.88 21,397 45,657
Notes:
[1]: 2004 from NYPA gross plant in service.
2005-2008: Value of previous year less the annual retirement amount (2004 Original
Cost Depreciation x 2.5%)
[2]: 2004 and 2005: Actual change in Handi-Whitman Index; 2006-2007: Based on NYPA
estimate of inflation.
[3]: 2005: [4] / [1]+1; 2005-2007: prior year value of [3] x ( 1 + [2] )
[4]: 2005: NYPA; 2006-2007: [1] x ( [3] - 1 )
[5]: [1] + [4]
Debt-Financed
Original Cost Debt-Funded
Depreciation Rate Base Interest Total
[1] [2] [3] [4]
2004 2,771 113,803
2005 2,702 111,527 6,123 8,825
2006 2,634 109,251 6,001 8,635
2007 2,568 106,975 5,878 8,447
Notes:
[1]: 2004 from NYPA gross plant in service.
2005-2007: Value of previous year less the annual retirement amount (2004 Original
Cost Depreciation x 2.5%)
[2]: 2004: rate base at year-end; 2005-2007: Value of 2004 rate base less cumulative
annual amortization of rate base (2.0% per year).
[3]: [2] Rate Base x Interest Rate (Niagara-Taxable & Tax-Exempt, St. Lawrence-Taxable).
[4]: [1] + [3]