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ORDER NO. PSC -2018 -0316 -PAA -EQ <br />DOCKET NO. 20180083 -EQ <br />PAGE 3 8 <br />Attachment A <br />rLV1UUA CVwr m at Lit." 1 GVMCAllY Vngmat aneet rvo. ru Jiu <br />(Continued from Sheet No. 10.304) <br />CALCULATIONOFFIXEDVALUEOFDEFERRALPAYMENTS-LEVELI EDAND -E-AftYLMT.UZUQ W.ACffY- <br />OPTION C & OPTION D. RESPECTIYELY <br />Monthly fixed value of deferral payments for levelized and early levelized capacity shall be calculated as follows: <br />PL = F Xr + 0 <br />12 1-(1+r)" <br />Where: <br />Pc = <br />the monthly levelized capacity payment, starting on or prior to the in- <br />service date ofthe Company's Avoided Unit(s); <br />F = <br />the cumulative present value, in the year that the contractual payments <br />will begin, of the avoided capital cost component of the capacity <br />payments which would have been made had the capacity payments not <br />been levelized; <br />r = <br />the annual discount rate, defined as. the Company's incremental after-tax <br />costofcapital; <br />t <br />the term, in years, of the Standard Offer Contract; <br />O = <br />the monthly fixed operation and maintenance component of the capacity <br />payments, calculated in accordance with calculation of the fixed value of <br />deferral payments for the levelized capacity or the early levelized <br />capacity options. <br />Issued by. S. E. Romig, Director, Rates and TAM& <br />Effective: May 22, 2007 <br />X343 <br />