Russian Electric Utilities Managers Project - Nizhnovenergo

Johnson Management Inc. contracted MHI to provide project finance services to meet the commitments of the CIDA funded Electric Utilities Managers II Project Work Plan.

The PFS was required to perform the following tasks:

• Collect Economic Information
• Review Plant Modernization Investment Cost Estimate
• Review NNE’s Capital Expansion Plan
• Confirm Project is Least Cost Alternative
• Compare Estimates with Expansion Plan
• Confirm Need for Capital Expenditure
• Obtain Long-term Rate and Price Forecasts
• Review Existing Legal, Tax and Regulatory Framework
• Establish Industrial Customer Electrical and Steam Load Profiles
• Assess the Avoided Cost for Electricity and Steam
• Determine Credit Worthiness of Industrial Customers
• Develop Revenue ProjectionsPerform Production Costing
• Develop Cost ForecastsPerform Sensitivity Analysis
• Review the Impact of EnergoSbyt on NNEDevelop Project After-tax Cash Flow Model
• Develop a Merchant Plant Model (to be determined in Russia)
• Confirm the economic strength of the region to undertake project
• Prepare information for Business Case