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Indiana Municipal Power Agency

CONSIDERATIONSFOR

JOINT OWNERSHIP OF

POWER GENERATION FACILITIES


POWER GENERATION PROJECT LIFECYCLE

• Decision to participate and participation negotiations

• Development period

• Construction and ongoing operations


Decision To Participate And Participation Negotiations

• Know the technology• Evaluate the lead partner and define

their role• Sanity Check-Likelihood of project

completion• Evaluate the makeup of the other

participants• Determine your level of participation


Decision To Participate And Participation Negotiations

• Due diligence investigation of design

• Relationships with other partners and with lead partner

• Rights to future additions of generation

• Resource diversity strategy


Development Period

• Development period costs• EPC contract negotiation• Pricing changes between participation

and development phases• Methods to monitor progress of project• Proactive approach to public relations


Development Period

• Environmental permitting hurdles• Recordkeeping from day one• Cancellation penalties• Protection of confidential

information• Insurance decision (Contractor or

owner provided)


Construction And Ongoing Operations

• Level of representation and monitoring during construction

• Backup power supply plans for the non-firm resource

• Capital and O&M budget monitoring, invoice review and audits


Construction And Ongoing Operations

• Emission allowances allocation and air quality systems performance

• Capital cost exposure due to changing environmental regulations

• A&G cost increase exposure and control