23
The net effect on the GAAP balance sheet is…
GAAP Balance Sheet Impact
Tax Equity vs. Baseline – Years 1-10
(1)
($ MM)
Closing12345678910
Baseline:
PP&E, net 175.0$ 169.2$ 163.3$ 157.5$ 151.7$ 145.8$ 140.0$ 134.2$ 128.3$ 122.5$ 116.7$
Cash and Cash Equivalents - - - - - - - - - - -
Total Assets 175.0$ 169.2$ 163.3$ 157.5$ 151.7$ 145.8$ 140.0$ 134.2$ 128.3$ 122.5$ 116.7$
Capitalization 172.9$ 171.0$ 170.7$ 171.2$ 96.6$ 89.1$ 85.5$ 82.0$ 78.4$ 74.8$ 71.3$
Accumulated deferred income taxes 2.1 (1.8) (7.3) (13.7) 55.1 56.7 54.5 52.2 49.9 47.7 45.4
Total Capitalization and Liabilities 175.0$ 169.2$ 163.4$ 157.5$ 151.7$ 145.8$ 140.0$ 134.2$ 128.3$ 122.5$ 116.7$
Tax Equity:
PP&E, net 175.0$ 169.2$ 163.3$ 157.5$ 151.7$ 145.8$ 140.0$ 134.2$ 128.3$ 122.5$ 116.7$
Cash and Cash Equivalents
(2)
116.0 - - - - - - - - - -
Total Assets 291.0$ 169.2$ 163.3$ 157.5$ 151.7$ 145.8$ 140.0$ 134.2$ 128.3$ 122.5$ 116.7$
Capitalization 152.6$ 33.7$ 32.3$ 31.7$ 31.9$ 32.6$ 33.6$ 41.8$ 50.8$ 61.2$ 71.3$
Accumulated deferred income taxes 22.4 20.9 20.3 20.0 20.2 20.8 21.4 26.6 32.3 38.9 45.4
116.0 114.6 110.7 105.8 99.5 92.5 84.9 65.8 45.2 22.4 -
Total Capitalization and Liabilities 291.0$ 169.2$ 163.3$ 157.5$ 151.6$ 145.9$ 139.9$ 134.2$ 128.3$ 122.5$ 116.7$
Year:
Deferral related to differential
membership interests - VIEs
(1) In this example, the balance sheet is essentially the same after year 10
(2) At closing, the tax equity investor contributes $116 MM into the project; at the beginning of year 1, the project
distributes the cash to the sponsor