Project Green District Energy Feasibility Study - Partners in Project ...

TRCA Pearson Eco-Business Zone District Energy Feasibility Study 10 April 2012
Fixed Costs
Pearson DES
Labour (CAD) (3 FTE) in $ per year 184,605
Maintenance Cost (% capital) 1.00%
Insurance (% of capital cost) 0.25%
Land Lease (CAD) in $ per year 66,000
Corporate Overheads (CAD million)
Development Costs 2012-2014 0.15
Salary and G&A expenses 2015 onwards 0.15
75
per year
per year
Plant G&A (CAD million)
Plant G&A (a fixed amount escalating) 5%
Subject to maximum of 0.10 per year
8.4 Financial Results
Table 23 Heating Fixed Cost Assumptions
The Business Model is based on supplying heat only to the 11 identified customers, together
with a 4 MWe CHP Facility per the CHP Standard Offer Program. The projected unlevered
Internal Rate of Return (IRR) is 5% over a 25 year operating period.
Financial projections are presented in the following tables:
Table 25 – Income Statement Projection
Table 26 – Balance Sheet Projection
Table 27 – Cash Flow Statement Projection
These summary tables show the pro forma financial statements for ten years of operations. The
printouts in Appendix H show the statements from the start of project development in 2012
through 25 years of operation to 2039.