L A Z A R D ’ S L E V E L I Z E D C O S T O F E N E R G Y A N A L Y S I S — V E R S I O N 1 2 . 0 Lazard’s Levelized Cost of Energy (“LCOE”) analysis addresses the following topics

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Introduction 


L A Z A R D ’ S L E V E L I Z E D C O S T O F E N E R G Y A N A L Y S I S — V E R S I O N 1 2 . 0 Lazard’s Levelized Cost of Energy (“LCOE”) analysis addresses the following topics: 


 Comparative LCOE analysis for various generation technologies on a $/MWh basis, including sensitivities, as relevant, for U.S. federal tax subsidies, fuel prices and costs of capital 


 Illustration of how the LCOE of wind and utility-scale solar compare to the marginal cost of selected conventional generation technologies 


 Historical LCOE comparison of various utility-scale generation technologies 


 Illustration of the historical LCOE declines for wind and utility-scale solar technologies 


 Illustration of how the LCOE of utility-scale solar compares to the LCOE of gas peaking and how the LCOE of wind compares to the LCOE of gas combined cycle generation 


 Comparison of assumed capital costs on a $/kW basis for various generation technologies 


 Decomposition of the LCOE for various generation technologies by capital cost, fixed operations and maintenance expense, variable operations and maintenance expense and fuel cost, as relevant 


 A methodological overview of Lazard’s approach to our LCOE analysis 


 Considerations regarding the usage characteristics and applicability of various generation technologies 


 An illustrative comparison of the cost of carbon abatement of various Alternative Energy technologies relative to conventional generation 


 Summary assumptions for Lazard’s LCOE analysis 


 Summary of Lazard’s approach to comparing the LCOE for various conventional and Alternative Energy generation technologies 


Other factors would also have a potentially significant effect on the results contained herein, but have not been examined in the scope of this analysis. These additional factors, among others, could include: import tariffs; capacity value vs. energy value; stranded costs related to distributed generation or otherwise; network upgrade, transmission, congestion or other integration-related costs; significant permitting or other development costs, unless otherwise noted; and costs of complying with various environmental regulations (e.g., carbon emissions offsets or emissions control systems). This analysis also does not address potential social and environmental externalities, including, for example, the social costs and rate consequences for those who cannot afford distributed generation solutions, as well as the long-term residual and societal consequences of various conventional generation technologies that are difficult to measure (e.g., nuclear waste disposal, airborne pollutants, greenhouse gases, etc.)

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