THE APPLICATION OF KENTUCKY POWER

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THE APPLICATION OF KENTUCKY POWER ( the-application-kentucky-power )

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We report here the life cycle operating costs for each plant configuration, including pre-mobilization costs and ongoing annual fees for a plant with an online date of June 1, 2015. For all years after the five years we report, these fees would be escalated at a 2.5% inflation rate. For year 1, we have reported the breakdown between fixed costs and variable costs included in these fees. The proportion of cost breakdown would be constant over the plant life assuming the same number of hours and starts reported here. These variable costs are addit.ivewith the variable costs reported for the LTSA. This does not include Owner’s costs such as property tax, plant insurance, or asset management. The Brattle Groiip 2011 PJM CONE Study Appendi.s Page C-4 3

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