Exhibit J
Southern Energy, Inc.
Mobile Energy Services Company Income Statement
Current Period: Dec. 99
Currency: USD
Company-(Mobile Energy Services Holding, Inc. Consolidated)
<TABLE>
<CAPTION>
Current Period
---------------------------------------------------------------------------------------------------------------------------
Actual Budget Variance Variance %
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Demand Charges 4,934,927 5,503,107 -568,180 -10%
Variable Charges 3,270,491 3,121,788 148,703 5%
Compressed Air -30,450 60,000 -90,450 -151%
Ash Disposal Revenue 69,674 57,000 12,674 22%
Power Sales (SCEM) 0 0 0 n/m
---------------------------------------------------------------------------------------------------------------------------
Total Revenue 8,244,642 8,741,895 -497,253 -6%
---------------------------------------------------------------------------------------------------------------------------
Purchased Gas 1,706,537 1,677,267 -29,270 -2%
Purchased Coal 591,053 645,182 54,129 8%
Purchased Biomass 0 369,619 369,619 100%
---------------------------------------------------------------------------------------------------------------------------
Total Fuel Expenses 2,297,590 2,692,068 394,478 15%
---------------------------------------------------------------------------------------------------------------------------
Salaries & Wages 1,125,299 547,706 -577,593 -105%
Fringe Benefits 323,281 274,965 -48,316 -18%
Travel 9,913 12,600 2,687 21%
Maintenance 99,289 292,375 193,086 66%
Chemicals 90,377 100,505 10,128 10%
Water and Effluent -15,049 81,500 96,549 118%
Hauling Ash 69,674 57,000 -12,674 -22%
Environmental & Permitting 2,634 10,450 7,816 75%
Tools, Supplies, & Equip Rental 34,498 42,500 8,002 19%
Other Operating Expenses 9,299 1,400 -7,899 -564%
Shared Services 33,480 24,789 -8,691 -35%
Insurance 65,609 90,000 24,391 27%
Taxes other than Income 45,625 50,000 4,375 9%
General & Administrative 845,396 145,750 -699,646 -480%
SEI 139,296 111,000 -28,296 -25%
SCS 102,192 21,400 -80,792 -378%
---------------------------------------------------------------------------------------------------------------------------
Total O&M Expenses 2,980,813 1,863,940 -1,116,873 -60%
---------------------------------------------------------------------------------------------------------------------------
Equity in MESC LLS Earnings 0 0 0 0
Depreciation & Amortization 1,142,908 1,055,419 -87,489 -8%
Interest Expense 175,023 2,395,186 2,220,163 93%
Interest Income -62,468 -12,270 50,198 -409%
Impairment Loss 0 0 0 N/M
Minority Interest 0 0 0 N/M
---------------------------------------------------------------------------------------------------------------------------
Income (Loss) Before Tax 1,709,775 744,550 965,225 130%
Income Tax Exp (Benefit) 776,725 284,789 -491,936 -173%
---------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) 933,050 459,761 473,289 103%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Southern Energy, Inc.
Mobile Energy Services Company Income Statement
Current Period: Dec. 99
Currency: USD
Company-(Mobile Energy Services Holding, Inc. Consolidated)
Year to Date
---------------------------------------------------------------------------------------------------------------------------
Actual Budget Variance Variance % Annual Budget
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Demand Charges 59,385,611 60,461,642 -1,076,031 -2% 60,461,642
Variable Charges 30,778,110 28,483,367 2,294,743 8% 28,483,367
Compressed Air 447,623 720,000 -272,377 -38% 720,000
Ash Disposal Revenue 654,873 702,000 -47,127 -7% 702,000
Power Sales (SCEM) 1,496,814 0 1,496,814 N/M 0
---------------------------------------------------------------------------------------------------------------------------
Total Revenue 92,763,031 90,367,009 2,396,022 3% 90,367,009
---------------------------------------------------------------------------------------------------------------------------
Purchased Gas 11,459,111 8,713,579 -2,745,532 -32% 8,713,579
Purchased Coal 4,518,157 5,005,463 487,306 10% 5,005,463
Purchased Biomass 0 1,275,653 1,275,653 100% 1,275,653
---------------------------------------------------------------------------------------------------------------------------
Total Fuel Expenses 15,977,268 14,994,695 -982,573 -7% 14,994,695
---------------------------------------------------------------------------------------------------------------------------
Salaries & Wages 8,745,207 8,134,652 -610,555 -8% 8,134,652
Fringe Benefits 2,982,859 3,444,272 461,413 13% 3,444,272
Travel 219,985 203,700 -16,285 -8% 203,700
Maintenance 6,914,831 9,245,572 2,330,741 25% 9,245,572
Chemicals 1,238,108 1,500,053 261,945 17% 1,500,053
Water and Effluent 556,180 918,000 361,820 39% 918,000
Hauling Ash 652,946 702,000 49,054 7% 702,000
Environmental & Permitting 201,676 216,000 14,324 7% 216,000
Tools, Supplies, & Equip Rental 292,663 380,100 87,437 23% 380,100
Other Operating Expenses 62,697 17,000 -45,697 -269% 17,000
Shared Services 251,277 297,468 46,191 16% 297,468
Insurance 942,867 1,084,000 141,133 13% 1,084,000
Taxes other than Income 547,971 600,000 52,029 9% 600,000
General & Administrative 9,312,810 2,160,100 -7,152,710 -331% 2,160,100
SEI 1,382,884 1,293,000 -89,884 -7% 1,293,000
SCS 915,776 256,800 -658,976 -257% 256,800
---------------------------------------------------------------------------------------------------------------------------
Total O&M Expenses 35,220,737 30,452,717 -4,768,020 -16% 30,452,717
---------------------------------------------------------------------------------------------------------------------------
Equity in MESC LLS Earnings 0 0 0
Depreciation & Amortization 12,974,528 12,591,317 -383,211 -3% 12,591,317
Interest Expense 3,200,164 28,875,574 25,675,410 89% 28,875,574
Interest Income -653,494 -121,473 532,021 -438% -121,473
Impairment Loss 95,541,494 0 -95,541,494 N/M 0
Minority Interest 242,541 0 -242,541 N/M 0
---------------------------------------------------------------------------------------------------------------------------
Income (Loss) Before Tax -69,740,296 3,574,180 -73,314,476 -2051% 3,574,180
Income Tax Exp (Benefit) -26,552,963 1,367,119 27,920,083 2042% 1,367,119
---------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) -43,187,333 2,207,061 -45,394,393 -2057% 2,207,061
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Southern Energy, Inc.
Mobile Energy Services Income Statement 100%
Current Period: DEC-98
Currency: USD
No specific company requested
Current Period
............. ............ .............. ..............
Actual Budget Variance Variance %
............. ............ .............. ..............
Revenues
<S> <C> <C> <C> <C>
Demand Charges 4,747,907 4,656,873 91,034 2%
Variable Charges 2,409,885 2,616,181 -206,296 -8%
Compressed Air Sales 27,485 83,500 -56,015 -67%
Ash Disposal Revenue 65,625 57,000 8,625 15%
............. ............ .............. ..........
Total Revenues 7,250,902 7,413,554 -162,652 -2%
............. ............ .............. ..........
Fuel Expense: 0
Purchased Gas 638,357 586,919 -51,438 -9%
Purchased Coal 370,392 395,038 24,646 6%
............. ............ .............. ..........
Total Fuel Expenses 1,008,749 981,957 -26,792 -3%
............. ............ .............. ..........
O&M Expense
Salaries & Wages 1,194,372 686,974 -507,398 -74%
Fringe Benefits & Payroll Taxes 140,228 293,806 153,578 52%
Travel, Meals & Relocation 24,854 12,600 -12,254 -97%
Maintenance 323,875 347,800 23,925 7%
Chemicals 109,511 96,000 13,511 14%
Water & Efficient -195,916 61,500 257,416 419%
Hauling Ash 65,625 57,000 -8,625 -15%
Asbestos Removal 0 0 0 n/m
Environmental & Permitting 8,123 6,250 -1,873 -30%
Tools, Supplies & Equipment Rental 13,368 36,600 23,232 63%
Other Operating Expenses 6,669 7,000 331 5%
Shared Services 23,866 24,789 923 4%
Insurance 84,931 90,000 5,069 6%
Taxes Other Than Income Taxes 45,625 50,000 4,375 9%
General & Administrative 1,342,375 102,550 -1,239,825 -1209%
SBI 138,322 80,000 -58,322 -73%
SCS 13,181 10,000 -3,181 -32%
............. ............ .............. ..........
Total O&M Expenses 3,339,009 1,962,869 -1,376,140 -70%
............. ............ .............. ..........
Depreciation & Amortization 1,053,108 1,052,451 -657 0%
Interest Expense - Long Term Debt 2,372,925 2,435,308 62,383 3%
Interst Income -138,043 -55,000 83,043 -151%
Other 325 0 -325 n/m
Minority Interest -3,960 0 3,960 n/m
............. ............ .............. ..........
Income Before Income Tax -381,214 1,035,969 -1,417,183 -137%
Income Tax -145,258 396,258 541,516 137%
............. ............ .............. ..........
Book Net Income -235,956 639,711 -875,667 -137%
............. ............ .............. ..........
Financial Highlight Lag 10,945 0 -10,945 *****
Financial Highlight Tax -3,831 0 3,831 *****
............. ............ .............. ..........
Financial Highlight Net -243,070 639,711 -882,781 -138%
............. ............ .............. ..........
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Southern Energy, Inc.
Mobile Energy Services Income Statement 100%
Current Period: DEC-98
Currency: USD
No specific company requested
Year to Date
................ ............. .............. .............................
Actual Budget Variance Variance % Annual Budget
................ ............. .............. .............................
Revenues
<S> <C> <C> <C> <C> <C>
Demand Charges 57,271,789 57,457,310 -185,521 0% 57,457,310
Variable Charges 25,807,625 26,203,699 -396,074 -2% 26,203,699
Compressed Air Sales 669,486 720,000 -50,514 -7% 720,000
Ash Disposal Revenue 657,443 702,000 -44,557 -6% 702,000
............. ............. .............. ............ ..............
Total Revenues 84,406,342 85,083,009 -676,667 -1% 85,083,009
............. ............. .............. ............ ..............
Fuel Expense:
Purchased Gas 4,150,532 4,561,655 411,123 9% 4,561,655
Purchased Coal 3,417,353 3,999,702 582,349 15% 3,999,702
............. ............. .............. ............ ..............
Total Fuel Expenses 7,567,985 8,561,357 993,372 12% 8,561,357
............. ............. .............. ............ ..............
O&M Expense
Salaries & Wages 8,809,471 8,305,507 -503,964 -6% 8,305,507
Fringe Benefits & Payroll Taxes 2,595,293 3,599,188 1,003,895 28% 3,599,188
Travel, Meals & Relocation 166,793 203,700 36,907 18% 203,700
Maintenance 6,485,577 7,851,000 239,190 3% 7,851,000
Chemicals 1,303,110 1,542,300 239,190 16% 1,542,300
Water & Efficient 387,749 838,000 450,251 54% 838,000
Hauling Ash 657,443 702,000 44,557 6% 702,000
Asbestos Removal 0 0 0 N/M 0
Environmental & Permitting 175,933 202,000 26,067 13% 202,000
Tools, Supplies & Equipment Rental 352,137 287,600 -64,537 -22% 287,600
Other Operating Expenses 39,554 84,000 44,446 53% 84,000
Shared Services 286,415 297,468 11,053 4% 297,468
Insurance 1,001,382 1,084,000 82,618 8% 1,084,000
Taxes Other Than Income Taxes 548,197 600,000 51,803 9% 600,000
General & Administrative 4,827,251 1,260,700 -3,566,551 -283% 1,260,700
SBI 1,160,949 913,000 -247,949 -27% 913,000
SCS 186,245 120,000 -66,245 -55% 120,000
............. ............. .............. ............ ..............
Total O&M Expenses 28,983,499 27,890,463 -1,093,036 -4% 27,890,463
............. ............. .............. ............ ..............
Depreciation & Amortization 12,394,054 12,522,553 128,499 1% 12,522,553
Interest Expense - Long Term Debt 29,140,100 29,429,205 289,105 1% 29,429,205
Interst Income -950,946 -660,000 290,946 -44% -660,000
Other 328 0 -328 N/M 0
Minority Interest 71,576 0 -71,576 0
............. ............. .............. ............ ..............
Income Before Income Tax 7,199,747 7,339,430 -139,683 -2% 7,339,430
Income Tax 2,754,460 2,807,334 52,874 2% 2,807,334
............. ............. .............. ..............
Book Net Income 4,445,287 4,532,096 -86,809 -2% 4,532,096
............. ............. .............. ..............
Financial Highlight Lag -75,295 0 75,295 ***** 0
Financial Highlight Tax 26,353 0 -26,353 ***** 0
............. ............. .............. ............ ..............
Financial Highlight Net 4,494,228 4,532,096 -37,868 -1% 4,532,096
............. ............. .............. ............ ..............
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
1/31/00 2/29/00
--------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges 5,057,878 $5,288,712
Budgeted Processing Charges 2,886,563 $2,439,327
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $60,000 $60,000
Budgeted Ash Diposal Revenue $44,000 $57,000
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
-----------------------------
Net Revenue Variance 2,099,588) $3,357,481
MESC Cash from Operations 5,948,853 $11,202,520
Monthly Normal Operating Cash Requirements (4) 6,550,353) ($4,946,899)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations 2,701,088) $9,613,102
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $71,287 $71,287
Interest on MESC Cash Balance to MESC Account $62,397 $45,740
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements 2,567,404) $9,730,128
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts 2,567,404 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations 2,567,404 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow $0 ($1,000,000)
Actual or Forecast of Allocated Development Cost ($8,105) ($4,154)
Contingency Reserve Balance - ($47,494)
Project Collateral Requirements $0 $0
Total Monthly Cogenerations Project Cash Requirements ($8,105) ($1,051,648)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $0 $0
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $8,105 $1,051,648
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $8,105 $1,051,648
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC ($109,729) ($1,050,648)
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $11,299,383 $8,614,145
Cash Currently Available in Bondholder Account (1) $9,800,000 $9,800,000
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing) $0 $8,105
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
3/31/00 4/30/00
-----------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,463,386 $1,463,386
Budgeted Processing Charges $2,749,907 $2,552,720
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $66,967 $63,161
Budgeted Ash Diposal Revenue $55,000 $55,000
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
-----------------------------------
Net Revenue Variance $3,775,713 ($452,235)
MESC Cash from Operations $8,110,973 $3,682,032
Monthly Normal Operating Cash Requirements (4) ($4,168,524) ($5,071,528)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $3,942,449 ($1,389,496)
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $71,287 $71,287
Interest on MESC Cash Balance to MESC Account $95,412 $72,165
Interest on KC Settlement Payment to MESC Account $0 $0
------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $4,109,148 ($1,246,045)
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $1,246,045
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $1,246,045
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow $0 ($37,200)
Actual or Forecast of Allocated Development Cost ($32,931) ($40,359)
Contingency Reserve Balance ($47,494) ($47,494)
Project Collateral Requirements $0 ($4,000,000)
Total Monthly Cogenerations Project Cash Requirements ($80,424) ($4,125,053)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $47,494 $47,494
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $32,931 $4,077,559
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $80,424 $4,125,053
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC $4,004,268 ($4,077,559)
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0 $0
SEI Project Contributions $0 $0 $0
Cogeneration Development Financing Account $0 $0 $0
Cash Balance in MESC Accounts $11,299,383 $24,038,737 $14,637,574
Cash Currently Available in Bondholder Account (1) $9,800,000 $9,800,000 $9,800,000
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing) $0 $80,424 $4,125,053
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
5/31/00 6/30/00
---------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,463,384 $1,463,385
Budgeted Processing Charges $2,608,756 $2,532,202
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $44,109 $20,148
Budgeted Ash Diposal Revenue $56,597 $54,413
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
---------------------------------------
Net Revenue Variance $406,949 $192,519
MESC Cash from Operations $4,579,795 $4,262,667
Monthly Normal Operating Cash Requirements (4) ($4,886,523) ($5,008,896)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations ($306,728) ($746,229)
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $71,287 $71,287
Interest on MESC Cash Balance to MESC Account $52,892 $71,135
Interest on KC Settlement Payment to MESC Account $266,162 $153,821
---------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $83,613 ($449,987)
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $449,987
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $449,987
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($3,750) ($3,750)
Actual or Forecast of Allocated Development Cost ($288,838) ($271,550)
Contingency Reserve Balance ($47,494) ($47,494)
Project Collateral Requirements ($4,500,000) ($5,000,000)
Total Monthly Cogenerations Project Cash Requirements ($4,840,081) ($5,322,793)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $4,047,494 $4,547,494
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $792,588 $775,300
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $4,840,081 $5,322,793
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC ($792,588) ($786,432)
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $13,052,399 $11,040,681
Cash Currently Available in Bondholder Account (1) $9,800,000 $9,800,000
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing) $4,840,081 $5,322,793
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
7/31/00 8/31/00
------------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,077,413 $1,077,413
Budgeted Processing Charges $2,960,193 $2,980,979
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $60,667 $62,051
Budgeted Ash Diposal Revenue $55,000 $55,000
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $50,000 $50,000
------------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,203,273 $4,225,443
Monthly Normal Operating Cash Requirements (4) ($4,730,130) ($5,372,551)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations ($526,857) ($1,147,108)
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $71,287 $45,122
Interest on MESC Cash Balance to MESC Account $53,179 $46,375
Interest on KC Settlement Payment to MESC Account $152,750 $152,750
----------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements ($249,641) ($902,861)
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $249,641 $902,861
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $249,641 $902,861
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($7,500) ($142,500)
Actual or Forecast of Allocated Development Cost ($155,569) ($115,521)
Contingency Reserve Balance ($47,494) ($54,750)
Project Collateral Requirements ($6,000,000) ($7,000,000)
Total Monthly Cogenerations Project Cash Requirements ($6,210,563) ($7,312,771)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $5,047,494 $6,047,494
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $1,163,069 $1,265,278
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $6,210,563 $7,312,771
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $5,000,000
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $5,000,000
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6) ($432,143) ($432,143
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $9,627,971 $7,459,832
Cash Currently Available in Bondholder Account (1) $9,367,857 $13,935,714
MESC Investment & Reserves in Cogeneration Project(Pre-Project Finance Closing) $6,210,563 $7,312,771
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
9/30/00 10/31/00
----------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,077,413 $1,077,413
Budgeted Processing Charges $2,914,455 $3,096,907
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $65,181 $67,682
Budgeted Ash Diposal Revenue $55,000 $55,000
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $15,000 $0
------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,127,049 $4,297,002
Monthly Normal Operating Cash Requirements (4) ($5,882,314) ($7,285,898)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations ($1,755,265) ($2,988,896)
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $67,124 $63,983
Interest on MESC Cash Balance to MESC Account $35,932 $23,192
Interest on KC Settlement Payment to MESC Account $152,750 $152,750
----------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements ($1,499,460) ($2,748,972)
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $1,499,460 $2,748,972
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $1,499,460 $2,748,972
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($58,064) ($66,507)
Actual or Forecast of Allocated Development Cost ($84,845) ($102,489)
Contingency Reserve Balance ($57,311) ($60,256)
Project Collateral Requirements ($8,000,000) ($9,114,550)
Total Monthly Cogenerations Project Cash Requirements ($8,200,220) ($9,343,803)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $23,212
Roll-Over of Prior-Month Collateral & Contingency $7,054,750 $8,057,311
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $1,263,280
Cash from MESC Account $1,145,470 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $8,200,220 $9,343,803
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $2,119,094 $0
Maintenance Guaranty Funds Made Available By Southern $2,700,000 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $4,819,094 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6) ($432,143) ($432,143)
MESC Contribution to Pulp Mill Preservation ($110,000) ($110,000)
Reserve for Reliability Penalty Paid to KCTC ($110,000)
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $4,819,094 $3,555,814
Cash Balance in MESC Accounts $4,814,902 $2,065,930
Cash Currently Available in Bondholder Account (1) $13,283,571 $12,741,428
MESC Investment & Reserves in Cogeneration Project(Pre-Project Finance Closing) $8,200,220 $9,343,803
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
11/30/00 12/31/00
-------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,077,413 $1,077,413
Budgeted Processing Charges $3,007,523 $3,282,006
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $67,682 $67,134
Budgeted Ash Diposal Revenue $55,000 $55,000
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
--------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,207,618 $4,481,553
Monthly Normal Operating Cash Requirements (4) ($6,383,063) ($6,307,874)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations ($2,175,445) ($1,826,322)
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $61,371 $58,760
Interest on MESC Cash Balance to MESC Account $9,951 $552
Interest on KC Settlement Payment to MESC Account $152,750 $152,750
-------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements ($1,951,373) ($1,614,260)
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $1,951,373 $114,557
Cash from Bondholder Account $0 $1,499,702
Total of Other Available Funds Committed to Operations $1,951,373 $1,614,260
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($783,105) ($458,235)
Actual or Forecast of Allocated Development Cost ($53,361) ($51,846)
Contingency Reserve Balance ($100,122) ($123,440)
Project Collateral Requirements ($10,329,550) ($10,329,550)
Total Monthly Cogenerations Project Cash Requirements ($11,266,138) ($10,963,072)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $17,127 $7,136
Roll-Over of Prior-Month Collateral & Contingency $9,174,806 $10,429,672
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $2,074,205 $526,263
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $11,266,138 $10,963,072
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6) ($432,143) ($432,143)
MESC Contribution to Pulp Mill Preservation ($110,000) ($110,000)
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $1,481,609 $955,346
Cash Balance in MESC Accounts $114,557 $0
Cash Currently Available in Bondholder Account (1) $12,199,285 $10,157,440
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing) $11,266,138 $10,963,072
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
1/31/01 2/28/01
----------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $894,685 $894,685
Budgeted Processing Charges $3,200,350 $2,901,860
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $67,585 $65,753
Budgeted Ash Diposal Revenue $56,100 $56,100
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
----------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,218,720 $3,918,398
Monthly Normal Operating Cash Requirements (4) ($3,982,665) ($3,459,307)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $236,054 $459,092
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $48,925 $43,130
Interest on MESC Cash Balance to MESC Account $0 $1,137
Interest on KC Settlement Payment to MESC Account $534,625 $0
--------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $819,604 $503,359
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($1,239,239.39) ($1,277,091)
Actual or Forecast of Allocated Development Cost ($36,180) ($36,553)
Contingency Reserve Balance ($168,859) ($216,204)
Project Collateral Requirements ($10,329,550) ($10,329,550)
Total Monthly Cogenerations Project Cash Requirements ($11,773,828) ($11,859,398)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $4,602 $0
Roll-Over of Prior-Month Collateral & Contingency $10,452,990 $10,498,409
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $955,346 $0
Cash from MESC Account $0 $236,054
Cash from (to) Bondholder Account $360,890 $1,124,935
Total of Other Available Funds Committed to Cogen Project $11,773,828 $11,859,398
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6) ($732,143) ($432,143)
MESC Contribution to Pulp Mill Preservation ($110,000) ($110,000)
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $236,054 $459,092
Cash Currently Available in Bondholder Account (1) $8,954,407 $7,829,472
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing) $11,773,828 $11,859,398
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
3/31/01 4/30/01
----------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,087,219 $1,087,219
Budgeted Processing Charges $3,058,853 $2,873,865
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $68,306 $64,424
Budgeted Ash Diposal Revenue $56,100 $56,100
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
----------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,270,479 $4,081,608
Monthly Normal Operating Cash Requirements (4) ($3,754,564) ($4,444,737)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $515,914 ($363,128)
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $37,712 $31,356
Interest on MESC Cash Balance to MESC Account $2,211 $2,485
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $555,837 ($329,288)
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $329,288
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $329,288
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($1,678,128) ($38,583,604
Actual or Forecast of Allocated Development Cost ($32,865) ($34,356
Contingency Reserve Balance ($283,971) ($797,364
Project Collateral Requirements ($10,329,550) ($1,215,000
Total Monthly Cogenerations Project Cash Requirements ($12,324,514) ($40,630,325
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $179,758
Roll-Over of Prior-Month Collateral & Contingency $10,545,754 $10,613,521
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $29,837,046
Cash from MESC Account $459,092 $0
Cash from (to) Bondholder Account $1,319,669 $0
Total of Other Available Funds Committed to Cogen Project $12,324,514 $40,630,325
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $57,706,432 $
Financing Cost Reserve ($8,062,000) $
KC Settlement Payment $0 $
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $
Cash Paid-Out to Bondholders $0 $
MESH Funds Made Available by Southern $0 $
Maintenance Guaranty Funds Made Available By Southern $0 $
Initial Funding of LTSA and Operational C/T Spare Parts $0 $
Total of Other Sources of Cash $49,644,432 $
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6) ($732,143) ($432,14
MESC Contribution to Pulp Mill Preservation ($110,000) ($110,00
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $
SEI Project Contributions $0 $
Cogeneration Development Financing Account $37,319,918 $7,482,87
Cash Balance in MESC Accounts $515,914 $186,62
Cash Currently Available in Bondholder Account (1) $6,509,803 $6,509,80
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing) $12,324,514 $0
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
5/31/01 6/30/01
--------------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,087,219 $1,098,961
Budgeted Processing Charges $3,042,541 $2,905,592
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $60,959 $65,450
Budgeted Ash Diposal Revenue $56,100 $56,100
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $216,300
-----------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,246,819 $4,342,404
Monthly Normal Operating Cash Requirements (4) ($3,752,372) ($3,672,749)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $494,447 $669,655
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $31,356 $31,356
Interest on MESC Cash Balance to MESC Account $899 $3,281
Interest on KC Settlement Payment to MESC Account $0 $0
---------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $526,702 $704,291
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($2,202,804) ($2,453,616)
Actual or Forecast of Allocated Development Cost ($28,066) ($23,044)
Contingency Reserve Balance ($891,846) ($999,100)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($4,337,716) ($4,690,760)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $36,042 $10,373
Roll-Over of Prior-Month Collateral & Contingency $2,012,364 $2,106,846
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $2,289,309 $2,153,563
Cash from MESC Account $0 $419,978
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $4,337,716 $4,690,760
Funding Shortfall None None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $30,800,000
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts ($3,040,000) $0
Total of Other Sources of Cash ($3,040,000) $30,800,000
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims ($5,032,396)
Unpaid Trade Claims (Estimated) (9) $2,982,396
Unpaid Professional Fees (Hold-Back) (Estimated) $425,000
Unpaid Professional Fees (Current Month) (Estimated) $425,000
Contingent Professional Fees $1,200,000
Unclassified: Allowed Priority Tax Claims $0
Class 1: Allowed Priority Claims $0
Class 2: Allowed Working Capital Claims $0
Class 3: Southern Post-Petition Claims (8) ($4,900,000)
Post-Petition O&M Claims (Estimated) $0
Turbine Option Fee $2,900,000
Reserve for Severance Costs $2,000,000
Unpaid Cogneration Development Costs (Estimated) $0
Class 4: Allowed First Mortgage Bondholder Claims $0
Class 5: Allowed Tax-Exempt Bondholder Claims $0
Class 6: Allowed Other Secured Claims $0
Class 7: Allowed Unsecured Claims (Estimated) ($431,286)
Class 8: Allowed Southern Pre-Petition Claims $0
Class 9: Mobile Energy Equity Interest $0
Class 10: Holding Equity Claims $0
Bondholder Professional Fees--Paid from Bondholder Account (6) ($432,143) ($832,143)
MESC Contribution to Pulp Mill Preservation ($110,000) ($110,000)
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $2,153,563 $30,800,000
Cash Balance in MESC Accounts $681,074 $930,750
Cash Currently Available in Bondholder Account (1) $6,509,803 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
7/31/01 8/31/01
----------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,098,961 $1,098,961
Budgeted Processing Charges $3,019,397 $3,040,599
Budgeted Pulp Mill Revenues (5) $0 $0
Budgeted Compressed Air Charges $61,880 $63,292
Budgeted Ash Diposal Revenue $56,100 $56,100
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $270,375 $270,375
----------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,506,714 $4,529,327
Monthly Normal Operating Cash Requirements (4) ($3,362,271) ($3,362,271)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $1,144,442 $1,167,055
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $4,483 $9,996
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $1,177,282 $1,205,407
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($2,715,368) ($4,001,138)
Actual or Forecast of Allocated Development Cost ($32,484) ($34,714)
Contingency Reserve Balance ($2,410,469) ($2,599,960)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($6,373,322) ($7,850,812)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $148,353 $129,034
Roll-Over of Prior-Month Collateral & Contingency $2,214,100 $3,625,469
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $4,010,868 $4,096,308
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $6,373,322 $7,850,812
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $26,789,132 $22,692,823
Cash Balance in MESC Accounts $2,075,192 $3,242,248
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
9/30/01 10/31/01
-------------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,098,961 $1,098,961
Budgeted Processing Charges $2,972,744 $3,158,846
Budgeted Pulp Mill Revenues (5) $0 $978,528
Budgeted Compressed Air Charges $66,485 $69,036
Budgeted Ash Diposal Revenue $56,100 $56,100
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $216,300 $0
--------------------------------------
Net Revenue Variance
MESC Cash from Operations $4,410,590 $5,361,471
Monthly Normal Operating Cash Requirements (4) ($3,557,135) ($3,671,955)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $853,455 $1,689,515
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $15,617 $19,728
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $897,429 $1,737,599
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($2,994,061) ($5,338,767)
Actual or Forecast of Allocated Development Cost ($34,499) ($37,324)
Contingency Reserve Balance ($2,734,738) ($2,996,453)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($6,978,298) ($9,587,544)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $109,304 $94,594
Roll-Over of Prior-Month Collateral & Contingency $3,814,960 $3,949,738
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $3,054,034 $5,543,212
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $6,978,298 $9,587,544
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Opening
Projected Balance of Other Available Fund Accounts Balance
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $19,638,789 $14,095,577
Cash Balance in MESC Accounts $4,095,703 $5,785,218
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
11/30/01 12/31/01
-------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,098,961 $1,098,961
Budgeted Processing Charges $3,067,674 $3,347,646
Budgeted Pulp Mill Revenues (5) $978,528 $978,528
Budgeted Compressed Air Charges $69,036 $68,477
Budgeted Ash Diposal Revenue $56,100 $56,100
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
-------------------------------------
Net Revenue Variance
MESC Cash from Operations $5,270,299 $5,549,712
Monthly Normal Operating Cash Requirements (4) ($3,417,670) ($3,781,590)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $1,852,629 $1,768,122
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $27,865 $36,789
Interest on KC Settlement Payment to MESC Account $0 $0
-------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $1,908,851 $1,833,268
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($2,734,958) ($2,366,896)
Actual or Forecast of Allocated Development Cost ($33,674) ($35,139)
Contingency Reserve Balance ($3,118,034) ($3,220,871)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($7,101,666) ($6,837,906)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $67,894 $54,300
Roll-Over of Prior-Month Collateral & Contingency $4,211,453 $4,333,034
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $2,822,320 $2,450,572
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $7,101,666 $6,837,906
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $11,273,258 $8,822,686
Cash Balance in MESC Accounts $7,637,847 $9,405,970
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
1/31/02 2/28/02
----------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $939,833 $939,833
Budgeted Processing Charges $3,361,849 $3,048,297
Budgeted Pulp Mill Revenues (5) $978,528 $978,528
Budgeted Compressed Air Charges $68,937 $67,068
Budgeted Ash Diposal Revenue $57,222 $57,222
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
----------------------------------------
Net Revenue Variance
MESC Cash from Operations $5,406,370 $5,090,949
Monthly Normal Operating Cash Requirements (4) ($2,748,844) ($4,080,631)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $2,657,525 $1,010,318
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $45,305 $58,106
Interest on KC Settlement Payment to MESC Account $0 $0
-------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $2,731,187 $1,096,780
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($2,381,302) ($1,805,980)
Actual or Forecast of Allocated Development Cost ($75,919) ($19,625)
Contingency Reserve Balance ($3,324,444) ($3,398,718)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($6,996,665) ($6,439,323)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $42,496 $30,366
Roll-Over of Prior-Month Collateral & Contingency $4,435,871 $4,539,444
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $2,518,298 $1,869,513
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $6,996,665 $6,439,323
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $6,304,388 $4,434,875
Cash Balance in MESC Accounts $12,063,495 $13,073,813
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
3/31/02 4/30/02
--------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,142,083 $1,142,083
Budgeted Processing Charges $3,213,212 $3,018,889
Budgeted Pulp Mill Revenues (5) $978,528 $978,528
Budgeted Compressed Air Charges $69,672 $65,713
Budgeted Ash Diposal Revenue $57,222 $57,222
Budgeted Grid Revenue (CT) $0 $0
Budgeted Grid Revenue (Existing Plant) $0 $0
-------------------------------------
Net Revenue Variance
MESC Cash from Operations $5,460,718 $5,262,435
Monthly Normal Operating Cash Requirements (4) ($3,932,754) ($4,471,790)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 $0
Net Operating Cash Available From (Required For) Operations $1,527,964 $790,645
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $62,972 $70,332
Interest on KC Settlement Payment to MESC Account $0 $0
---------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $1,619,293 $889,333
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($1,777,850) ($1,320,387)
Actual or Forecast of Allocated Development Cost ($24,660) ($29,598)
Contingency Reserve Balance ($3,471,561) ($3,521,110)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($6,489,072) ($6,086,095)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $21,361 $12,431
Roll-Over of Prior-Month Collateral & Contingency $4,613,718 $4,686,561
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $1,853,992 $1,387,102
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $6,489,072 $6,086,095
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $2,580,883 $1,193,781
Cash Balance in MESC Accounts $14,601,777 $14,392,422
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
5/31/02 6/30/02
------------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,142,083 $1,154,418
Budgeted Processing Charges $3,196,076 $3,052,217
Budgeted Pulp Mill Revenues (5) $978,528 $978,528
Budgeted Compressed Air Charges $62,178 $66,759
Budgeted Ash Diposal Revenue $57,222 $57,222
Budgeted Grid Revenue (CT) $0 $2,179,179
Budgeted Grid Revenue (Existing Plant) $0 $222,789
------------------------------------------
Net Revenue Variance
MESC Cash from Operations $5,436,089 $7,711,112
Monthly Normal Operating Cash Requirements (4) ($3,306,778) ($4,378,258)
Monthly C/T Non-Fuel Operating Cash Requirements (7) $0 ($385,857)
Net Operating Cash Available From (Required For) Operations $2,129,311 $2,946,997
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $74,140 $84,140
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $2,231,807 $3,059,494
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($1,179,224) ($710,990)
Actual or Forecast of Allocated Development Cost ($31,137) ($32,694)
Contingency Reserve Balance ($3,563,471) ($3,581,988)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($5,988,832) ($5,540,671)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $5,750 $0
Roll-Over of Prior-Month Collateral & Contingency $4,736,110 $4,778,471
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $1,193,781 $0
Cash from MESC Account $53,191 $762,200
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $5,988,832 $5,540,671
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $17,468,541 $19,653,339
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
7/31/02 8/31/02
-----------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,154,418 $1,154,418
Budgeted Processing Charges $3,171,765 $3,194,036
Budgeted Pulp Mill Revenues (5) $978,528 $978,528
Budgeted Compressed Air Charges $63,118 $64,558
Budgeted Ash Diposal Revenue $57,222 $57,222
Budgeted Grid Revenue (CT) $3,631,964 $3,631,964
Budgeted Grid Revenue (Existing Plant) $278,486 $278,486
-----------------------------------------
Net Revenue Variance
MESC Cash from Operations $9,335,502 $9,359,213
Monthly Normal Operating Cash Requirements (4) ($4,241,189) ($4,241,189)
Monthly C/T Non-Fuel Operating Cash Requirements (7) ($385,857) ($385,857)
Net Operating Cash Available From (Required For) Operations $4,708,455 $4,732,167
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $94,664 $115,362
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $4,831,475 $4,875,885
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($347,981) ($3,382,072)
Actual or Forecast of Allocated Development Cost ($45,434) ($32,188)
Contingency Reserve Balance ($3,599,692) ($3,771,913)
Project Collateral Requirements ($1,215,000) ($1,215,000)
Total Monthly Cogenerations Project Cash Requirements ($5,208,107) ($8,401,173)
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $4,796,988 $4,814,692
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $411,119 $3,586,480
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $5,208,107 $8,401,173
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $23,950,675 $25,096,361
Cash Currently Available in Bondholder Account (1) $5,887,134 $5,887,134
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
9/30/02 10/31/02
--------------------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,154,418 $1,154,418
Budgeted Processing Charges $3,122,758 $3,318,250
Budgeted Pulp Mill Revenues (5) $978,528 $1,007,884
Budgeted Compressed Air Charges $67,814 $70,416
Budgeted Ash Diposal Revenue $57,222 $57,222
Budgeted Grid Revenue (CT) $2,179,179 $1,452,786
Budgeted Grid Revenue (Existing Plant) $222,789 $0
--------------------------------------------
Net Revenue Variance
MESC Cash from Operations $7,782,708 $7,060,977
Monthly Normal Operating Cash Requirements (4) ($3,485,488) ($5,232,509)
Monthly C/T Non-Fuel Operating Cash Requirements (7) ($385,857) ($385,857)
Net Operating Cash Available From (Required For) Operations $3,911,363 $1,442,610
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $28,356 $28,356
Interest on MESC Cash Balance to MESC Account $120,881 $128,178
Interest on KC Settlement Payment to MESC Account $0 $0
--------------------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requiremen $4,060,600 $1,599,145
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow ($57,786) $0
Actual or Forecast of Allocated Development Cost ($2,335,603) $0
Contingency Reserve Balance ($3,774,840) $0
Project Collateral Requirements ($1,215,000) $0
Total Monthly Cogenerations Project Cash Requirements ($7,383,229) $0
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $4,986,913 $4,989,840
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $2,396,316 $0
Cash from (to) Bondholder Account $0 ($4,989,840)
Total of Other Available Funds Committed to Cogen Project $7,383,229 $0
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $26,611,408 $28,054,019
Cash Currently Available in Bondholder Account (1) $5,887,134 $14,651,814
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Sources and Uses of Cash
Month Ending Month Ending
11/30/02 12/31/02
----------------------------------
Operating Revenues
<S> <C> <C>
Budgeted Demand Charges $1,154,418 $1,154,418
Budgeted Processing Charges $3,222,478 $3,516,578
Budgeted Pulp Mill Revenues (5) $1,007,884 $1,007,884
Budgeted Compressed Air Charges $70,416 $69,846
Budgeted Ash Diposal Revenue $57,222 $57,222
Budgeted Grid Revenue (CT) $726,393 $726,393
Budgeted Grid Revenue (Existing Plant) $0 $0
-----------------------------------
Net Revenue Variance
MESC Cash from Operations $6,238,811 $6,532,341
Monthly Normal Operating Cash Requirements (4) ($6,022,649) ($5,964,944)
Monthly C/T Non-Fuel Operating Cash Requirements (7) ($385,857) ($385,857)
Net Operating Cash Available From (Required For) Operations ($169,695) $181,540
Interest Revenue (projections assume LIBOR=5.78% APR)
Interest on Bondholder Cash Balance to Bondholder Account $70,573 $70,573
Interest on MESC Cash Balance to MESC Account $135,127 $135,127
Interest on KC Settlement Payment to MESC Account $0 $0
-----------------------------------
Monthly Cash Available to Meet MESC Operating Cash Requirements $36,005 $387,240
Excess Cash Provided to Fund Operating Shortfalls
Cash from MESC Accounts $0 $0
Cash from Bondholder Account $0 $0
Total of Other Available Funds Committed to Operations $0 $0
Funding Shortfall None None
Monthly Cogeneration Project Cash Requirements
Construction/Procurement Cash Flow $0 $0
Actual or Forecast of Allocated Development Cost $0 $0
Contingency Reserve Balance $0 $0
Project Collateral Requirements $0 $0
Total Monthly Cogenerations Project Cash Requirements $0 $0
Cash Provided to Cogneration Development Project
Interest on Cogen Development Account Balance to Development Account $0 $0
Roll-Over of Prior-Month Collateral & Contingency $0 $0
Other MESC Funds $0 $0
SEI Project Advances $0 $0
Cogeneration Development Financing Account $0 $0
Cash from MESC Account $0 $0
Cash from (to) Bondholder Account $0 $0
Total of Other Available Funds Committed to Cogen Project $0 $0
Funding Shortfall None None
Other (Uses) Sources of Cash
Cogeneration Project Debt (Debtor-In-Possession Financing/Long-Term Financing) $0 $0
Financing Cost Reserve $0 $0
KC Settlement Payment $0 $0
Change in Treatment of Cash Reserved by Bondholders for Professional Fees (3) $0 $0
Cash Paid-Out to Bondholders $0 $0
MESH Funds Made Available by Southern $0 $0
Maintenance Guaranty Funds Made Available By Southern $0 $0
Initial Funding of LTSA and Operational C/T Spare Parts $0 $0
Total of Other Sources of Cash $0 $0
Other Net Monthly Cash Disbursements--To (From) MESC
Cash Paid Out at POR Confirmation
Unclassified: Allowed Admin. Claims
Unpaid Trade Claims (Estimated) (9)
Unpaid Professional Fees (Hold-Back) (Estimated)
Unpaid Professional Fees (Current Month) (Estimated)
Contingent Professional Fees
Unclassified: Allowed Priority Tax Claims
Class 1: Allowed Priority Claims
Class 2: Allowed Working Capital Claims
Class 3: Southern Post-Petition Claims (8)
Post-Petition O&M Claims (Estimated)
Turbine Option Fee
Reserve for Severance Costs
Unpaid Cogneration Development Costs (Estimated)
Class 4: Allowed First Mortgage Bondholder Claims
Class 5: Allowed Tax-Exempt Bondholder Claims
Class 6: Allowed Other Secured Claims
Class 7: Allowed Unsecured Claims (Estimated)
Class 8: Allowed Southern Pre-Petition Claims
Class 9: Mobile Energy Equity Interest
Class 10: Holding Equity Claims
Bondholder Professional Fees--Paid from Bondholder Account (6)
MESC Contribution to Pulp Mill Preservation
Reserve for Reliability Penalty Paid to KCTC
Projected Balance of Other Available Fund Accounts
SEI Turbine Financing $0 $0
SEI Project Contributions $0 $0
Cogeneration Development Financing Account $0 $0
Cash Balance in MESC Accounts $28,054,019 $28,054,019
Cash Currently Available in Bondholder Account (1) $14,651,814 $14,651,814
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
(1) Assumes $5 million reserved to pay professional fees.
(2) Assumes interest paid on Bondholder account balance plus $5M; Assumes $5M
paid out 1/1/01 for professional fees.
(3) Reserve shown as held in Bondholder Account
(4) Includes Debtor Professional Fees
(5) Assumes that Pulp Mill Payments are 1 month in arrears; Account Receivable
of $979k at the end of 2001
(6) Fees paid prior to July 2000 are not included in this Schedule (7) Costs
related to start-up and commissioning of Cogeneration Project are
included in project costs.
(8) Does not include GE Turbine Costs under Amendment No. 1 to MESC
Cogeneration Development Agreement.
(9) Trade Claims are expected to be paid through Operating Budget as normal
course of business prior to POR Confirmation
<PAGE>
<TABLE>
Ending Balances
Projected Balance of Other Available Fund Accounts
<S> <C>
SEI Turbine Financing $0
SEI Project Contributions $0
Cogeneration Development Financing Account $0
Cash Balance in MESC Accounts $3,000,000
Cash Currently Available in Bondholder Account (1) $39,887,372
MESC Investment & Reserves in Cogeneration Project(Pre-Project
Finance Closing)
</TABLE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
1/31/00 2/29/00 3/31/00
----------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 415,365 498,470 528,896
Fuel: CT
Fuel: Natural Gas 1,706,537 1,340,434 1,299,786
Fuel: 7TG - - -
Fuel: Biomass - - 240,313
Fuel: Secondary Dispatch
Fuel: Purchased Power
Total Fuel 2,121,902 1,838,904 2,068,995
Ash Hauling (1) 69,674 65,322 66,298
Compressed Air (1) - - -
Biomass O&M Expenses - - -
Hourly Payroll 1,412,055 202,768 297,836
Other Employee Deductions 4,343 2,647 2,469
SEI Billing - - -
Salaried Employees 252,156 216,358 227,579
Overhead Reimbursement 181,091 163,715 194,379
Home Office Wages & Salaries
Hourly Employee Pension and Benefits
Engineering Services SCS
Legal Fees & Audit Fees
Allocated Rent & Depreciation
Allocated G&A/Support
Interconnection Service Fee (Market Power Operations)
Hourly Labor Direct Deposit (Scott CU) 44,989 45,908 57,383
Hourly Labor 401(k) (Merrill Lynch) 55,207 18,967 78,719
Hourly Group Health Insurance (BCBS) 44,948 44,296 44,795
Workers Comp. And Other Benefits 16,229 15,281 14,850
Insurance Property - - -
Maintenance 312,378 247,305 339,701
Major Maintenance 5 TG Major - - 67
Training Expense 1,350 158 -
Chemicals 19,100 68,504 78,204
Safety Supplies 677 8,899 772
Environmental Services/Permits 8,603 5,505 5,011
General & Administrative Expense 116,787 148,596 112,854
Shared Services (1) - - -
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 26,285 - 171,104
Engineering/Consulting Fees 62,112 51,663 43,746
Availability Penalty - - -
Business License Renewal 55,000 - -
Alabama Privelege Tax - - -
Debtors' Professional Fees 143,303 233,808 282,399
-------------------------------------------
Total O&M Costs 4,948,189 3,378,604 4,087,161
Capital Costs 1,456,874 1,537,930 40,609
Cash Flow Net 6,405,063 4,916,534 4,127,770
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
4/30/00 5/31/00 6/30/00
---------------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 410,623 506,231 387,107
Fuel: CT
Fuel: Natural Gas 1,488,610 1,579,040 1,548,832
Fuel: 7TG - - -
Fuel: Biomass 334,089 277,035 386,024
Fuel: Secondary Dispatch
Fuel: Purchased Power
Total Fuel 2,233,322 2,362,306 2,321,964
Ash Hauling (1) 56,597 54,414 55,349
Compressed Air (1) - - -
Biomass O&M Expenses - - -
Hourly Payroll 178,145 252,465 207,443
Other Employee Deductions 2,562 2,002 3,704
SEI Billing - - -
Salaried Employees 416,941 242,564 242,284
Overhead Reimbursement 215,894 202,185 202,178
Home Office Wages & Salaries
Hourly Employee Pension and Benefits
Engineering Services SCS
Legal Fees & Audit Fees
Allocated Rent & Depreciation
Allocated G&A/Support
Interconnection Service Fee (Market Power Operations)
Hourly Labor Direct Deposit (Scott CU) 45,452 76,247 46,030
Hourly Labor 401(k) (Merrill Lynch) 38,947 40,190 49,999
Hourly Group Health Insurance (BCBS) 44,651 44,226 51,747
Workers Comp. And Other Benefits 14,914 18,244 12,843
Insurance Property 362,089 - -
Maintenance 546,535 587,466 660,806
Major Maintenance 5 TG Major - - -
Training Expense 3,275 860 11,200
Chemicals 57,424 93,993 100,695
Safety Supplies 584 291 1,160
Environmental Services/Permits 13,412 2,249 4,730
General & Administrative Expense 125,042 113,762 87,511
Shared Services (1) - - -
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 13,249 - 32,686
Engineering/Consulting Fees 67,372 42,085 53,989
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax 15,250 - -
Debtors' Professional Fees 400,190 132,083 146,902
--------------------------------------------------------
Total O&M Costs 4,851,847 4,267,632 4,293,220
Capital Costs 188,739 582,031 669,638
Cash Flow Net 5,040,586 4,849,663 4,962,858
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
7/31/00 8/31/00 9/30/00
----------------------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 515,647 498,655 484,899
Fuel: CT
Fuel: Natural Gas 1,991,885 1,800,002 1,847,669
Fuel: 7TG - 119,374 -
Fuel: Biomass 301,016 460,580 460,580
Fuel: Secondary Dispatch
Fuel: Purchased Power
Total Fuel 2,808,548 2,878,611 2,793,148
Ash Hauling (1) 51,027 65,000 53,000
Compressed Air (1) - 62,051 65,181
Biomass O&M Expenses
Hourly Payroll 193,937 303,753 293,951
Other Employee Deductions 1,702 4,000 4,000
SEI Billing - - -
Salaried Employees 252,212 256,844 256,844
Overhead Reimbursement 155,901 -
Home Office Wages & Salaries - 26,300 26,300
Hourly Employee Pension and Benefits - 89,207 89,149
Engineering Services SCS - 17,694 17,964
Legal Fees & Audit Fees - 75,000 75,000
Allocated Rent & Depreciation - 1,344 1,344
Allocated G&A/Support - 62,500 62,500
Interconnection Service Fee (Market Power Operations) - 5.716 5,716
Hourly Labor Direct Deposit (Scott CU) 41,068 45,000 45,000
Hourly Labor 401(k) (Merrill Lynch) 17,611 10,158 9,830
Hourly Group Health Insurance (BCBS) 43,976 16,380 16,380
Workers Comp. And Other Benefits 10,379 10,000 10,000
Insurance Property - - -
Maintenance 227,528 192,450 282,450
Major Maintenance 5 TG Major - 150,000 200,000
Training Expense - 16,500 16,500
Chemicals 70,239 65,722 65,722
Safety Supplies 1,160 6,000 6,000
Environmental Services/Permits 6,302 11,500 11,500
General & Administrative Expense 79,883 88,454 88,454
Shared Services (1) - - -
Property Tax - - 375,000
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 16,343 16,343 16,343
Engineering/Consulting Fees 24,817 158,750 175,750
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax - - -
Debtors' Professional Fees 422,857 630,449 422,857
--------------------------------------------------
Total O&M Costs 4,425,490 5,265,727 5,485,884
Capital Costs 240,000 269,000 352,000
Cash Flow Net 4,665,490 5,534,727 5,837,884
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
10/31/00 11/30/00 12/31/00
------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 484,899 498,655 498,655
Fuel: CT
Fuel: Natural Gas 2,004,915 2,101,095 2,346,600
Fuel: 7TG - - -
Fuel: Biomass 410,353 453,586 471,228
Fuel: Secondary Dispatch
Fuel: Purchased Power
Total Fuel 2,900,167 3,053,336 3,316,483
Ash Hauling (1) 56,000 44,000 57,000
Compressed Air (1) 67,682 67,682 67,134
Biomass O&M Expenses
Hourly Payroll 344,391 300,354 303,759
Other Employee Deductions 4,000 4,000 4,000
SEI Billing - - -
Salaried Employees 256,844 256,844 256,844
Overhead Reimbursement - - -
Home Office Wages & Salaries 26,300 26,300 26,300
Hourly Employee Pension and Benefit 90,566 89,093 89,027
Engineering Services SCS 17,964 17,964 17,964
Legal Fees & Audit Fees 75,000 75,000 75,000
Allocated Rent & Depreciation 1,344 1,344 1,344
Allocated G&A/Support
Interconnection Service Fee (Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit (Scott CU) 45,000 45,000 45,000
Hourly Labor 401(k) (Merrill Lynch) 11,517 10,044 10,158
Hourly Group Health Insurance (BCBS) 16,380 16,380 16,380
Workers Comp. And Other Benefits 10,000 10,000 10,000
Insurance Property - - -
Maintenance 579,450 342,450 192,450
Major Maintenance 5 TG Major 400,000 250,000 -
Training Expense 16,500 16,500 16,500
Chemicals 65,722 65,722 65,722
Safety Supplies 6,000 6,000 6,000
Environmental Services/Permits 136,500 11,500 11,500
General & Administrative Expense 87,954 90,204 90,884
Shared Services (1) - - -
Property Tax - - 225,000
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 16,343 16,343 16,343
Engineering/Consulting Fees 158,750 158,750 175,250
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax - - -
Debtors' Professional Fees 422,857 422,857 422,857
----------------------------------------------
Total O&M Costs 5,881,731 5,466,167 5,587,399
Capital Costs
Cash Flow Net 7,239,731 6,342,167 6,265,399
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
1/31/01 2/28/01 3/31/01
-------------------------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 516,526 466,540 516,526
Fuel: CT - - -
Fuel: Natural Gas 1,331,458 1,287,687 1,476,269
Fuel: 7TG - - -
Fuel: Biomass 323,751 292,421 323,751
Fuel: Secondary Dispatch - - -
Fuel: Purchased Power - - -
Total Fuel 2,171,736 2,046,648 2,316,547
Ash Hauling (1) 55,000 55,000 55,000
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses 71,119 64,236 71,119
Hourly Payroll 181,343 175,410 190,331
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,186 131,186 131,186
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,713 15,713 15,713
Hourly Employee Pension and Benefits 53,205 53,009 53,592
Engineering Services SCS 5,974 5,974 5,974
Legal Fees & Audit Fees 5,974 20,910 20,910
Allocated Rent & Depreciation - - -
Allocated G&A/Support - - -
Interconnection Service Fee (Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit (Scott CU) - - -
Hourly Labor 401(k) (Merrill Lynch) 5,979 5,783 6,365
Hourly Group Health Insurance (BCBS) 9,786 9,786 9,786
Workers Comp. And Other Benefits 5,974 5,974 5,974
Insurance Property 400,000 - 2,390
Maintenance 102,430 102,430 102,430
Major Maintenance 5 TG Major - - -
Training Expense 9,858 9,858 9,858
Chemicals 39,265 39,265 39,265
Safety Supplies 3,585 3,585 3,585
Environmental Services/Permits 6,871 6,871 6,871
General & Administrative Expense 47,795 47,795 47,795
Shared Services (1) 11,949 11,949 11,949
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,455 10,455 10,455
Engineering/Consulting Fees 23,897 23,897 23,897
Availability Penalty - - -
Business License Renewal 55,000 - -
Alabama Privelege Tax - - -
Debtors' Professional Fees 422,857 422,857 422,857
--------------------------------------------------------------
Total O&M Costs 3,920,082 3,341,723 3,636,981
Capital Costs 123,583 123,583 123,583
Cash Flow Net 4,043,665 3,465,307 3,760,564
(1) Shared Services costs are included in G&
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Ending Month Ending Month Ending Month
4/30/01 5/31/01 6/30/01
------------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 416,554 516,526 499,864
Fuel: CT - - -
Fuel: Natural Gas 1,565,834 1,471,178 1,423,721
Fuel: 7TG - - -
Fuel: Biomass 261,090 323,751 313,308
Fuel: Secondary Dispatch - - -
Fuel: Purchased Power - - -
Total Fuel 2,243,477 2,311,456 2,236,893
Ash Hauling (1) 55,000 55,000 55,000
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses 68,824 71,119 68,824
Hourly Payroll 199,220 178,769 175,617
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,186 131,186 131,186
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,713 15,713 15,713
Hourly Employee Pension and Benefits 53,889 53,205 53,099
Engineering Services SCS 5,974 5,974 5,974
Legal Fees & Audit Fees 5,974 5,974 5,974
Allocated Rent & Depreciation - - -
Allocated G&A/Support
Interconnection Service Fee (Market Power Operations) - 6,000 6,000
Hourly Labor Direct Deposit (Scott CU) - - -
Hourly Labor 401(k) (Merrill Lynch) 6,662 5,979 5,873
Hourly Group Health Insurance (BCBS) 9,786 9,786 9,786
Workers Comp. And Other Benefits 5,974 5,974 5,974
Insurance Property - - -
Maintenance 875,810 105,119 105,119
Major Maintenance 5 TG Major - 29,872 29,872
Training Expense 9,858 9,858 9,858
Chemicals 39,265 39,265 39,265
Safety Supplies 3,585 3,585 3,585
Environmental Services/Permits 6,871 6,871 6,871
General & Administrative Expense 47,795 47,795 47,795
Shared Services (1) 11,949 11,949 11,949
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,455 10,455 10,455
Engineering/Consulting Fees 23,897 23,897 23,897
Availability Penalty - - -
Business License Renewal 15,250 - -
Alabama Privelege Tax - - -
Debtors' Professional Fees 422,857 422,857 422,857
--------------------------------------------------
Total O&M Costs 4,342,403 3,634,788 3,555,166
Capital Costs 123,583 123,583 123,583
Cash Flow Net 4,465,987 3,758,372 3,678,749
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
7/31/01 8/31/01 9/30/01
------------------------------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 516,526 516,526 499,864
Fuel: CT - - -
Fuel: Natural Gas 1,471,178 1,471,178 1,423,721
Fuel: 7TG - - -
Fuel: Biomass 323,751 323,751 313,308
Fuel: Secondary Dispatch - - -
Fuel: Purchased Power - - -
Total Fuel 2,311,456 2,311,456 2,236,893
Ash Hauling (1) 55,000 55,000 55,000
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses 71,119 71,119 68,824
Hourly Payroll 181,473 181,473 175,617
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,186 131,186 131,186
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,713 15,713 15,713
Hourly Employee Pension and Benefits 53,295 53,295 53,261
Engineering Services SCS 5,974 5,974 5,974
Legal Fees & Audit Fees 5,974 5,974 5,974
Allocated Rent & Depreciation - - -
Allocated G&A/Support - - -
Interconnection Service Fee (Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit (Scott CU) - - -
Hourly Labor 401(k) (Merrill Lynch) 6,069 5,873 6,881
Hourly Group Health Insurance (BCBS) 9,786 9,786 9,786
Workers Comp. And Other Benefits 5,974 5,974 5,974
Insurance Property - - -
Maintenance 105,119 105,119 158,888
Major Maintenance 5 TG Major 59,743 59,743 59,743
Training Expense 9,858 9,858 9,858
Chemicals 39,265 39,265 39,265
Safety Supplies 3,585 3,585 3,585
Environmental Services/Permits 6,871 6,871 6,871
General & Administrative Expense 47,795 47,795 47,795
Shared Services (1) 11,949 11,949 11,949
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,455 10,455 10,455
Engineering/Consulting Fees 23,897 23,897 23,897
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax - - -
Debtors' Professional Fees - - -
--------------------------------------------------------------
Total O&M Costs 3,244,688 3,244,688 3,439,551
Capital Costs 123,583 123,583 123,583
Cash Flow Net 3,368,271 3,368,271 3,563,135
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
10/31/01 11/30/01 12/31/01
-----------------------------------------------------------------------
Operating Cash Requirements
<S> <C> <C> <C>
Fuel: Coal 516,526 499,864 516,526
Fuel: CT - - -
Fuel: Natural Gas 1,471,178 1,423,721 1,815,814
Fuel: 7TG - - -
Fuel: Biomass 323,751 313,308 323,751
Fuel: Secondary Dispatch - - -
Fuel: Purchased Power - - -
Total Fuel 2,311,456 2,236,893 2,656,091
Ash Hauling (1) 55,000 55,000 55,000
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses 71,119 68,824 71,119
Hourly Payroll 205,751 179,442 181,476
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,186 131,186 131,186
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,713 15,713 15,713
Hourly Employee Pension and Benefit 53,261 54,107 53,227
Engineering Services SCS 5,974 5,974 5,974
Legal Fees & Audit Fees
Allocated Rent & Depreciation
Allocated G&A/Support
Interconnection Service Fee (Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit (Scott CU) - - -
Hourly Labor 401(k) (Merrill Lynch) 5,873 6,881 6,001
Hourly Group Health Insurance (BCBS) 9,786 9,786 9,786
Workers Comp. And Other Benefits 5,974 5,974 5,974
Insurance Property - - -
Maintenance 158,888 284,349 149,926
Major Maintenance 5 TG Major 59,743 89,615 149,359
Training Expense 9,858 9,858 9,858
Chemicals 39,265 39,265 39,265
Safety Supplies 3,585 3,585 3,585
Environmental Services/Permits 6,871 81,550 6,871
General & Administrative Expense 47,795 47,795 47,795
Shared Services (1) 11,949 11,949 11,949
Property Tax 224,038 - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,455 10,455 10,455
Engineering/Consulting Fees 23,897 23,897 23,897
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax - - -
Debtors' Professional Fees - - -
---------------------------------------------------------------
Total O&M Costs 3,554,372 3,300,087 3,664,006
Capital Costs 123,583 123,583 123,583
Cash Flow Net 3,563,135 3,677,955 3,423,670
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
</TABLE>
<PAGE>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
1/31/02 2/28/02 3/31/02
-------------------------------------
Operating Cash Requirements
Fuel: Coal - 1,001,943 1,070,717
Fuel: CT - - -
Fuel: Natural Gas 1,100,987 1,539,404 1,367,258
Fuel: 7TG - - -
Fuel: Biomass 253,464 544,073 474,152
Fuel: Secondary Dispatch - - -
Fuel: Purchased Power - - -
Total Fuel 1,354,451 3,085,419 2,912,126
Ash Hauling (1) 55,000 55,000 55,000
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses 71,281 64,383 71,281
Hourly Payroll 181,758 175,811 190,767
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,486 131,486 131,486
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,748 15,748 15,748
Hourly Employee Pension and Benefits 53,326 53,130 53,714
Engineering Services SCS 5,988 5,988 5,988
Legal Fees & Audit Fees 5,988 20,958 20,958
Allocated Rent & Depreciation - - -
Allocated G&A/Support - - -
Interconnection Service Fee
(Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit
(Scott CU) - - -
Hourly Labor 401(k)
(Merrill Lynch) 5,992 5,796 6,380
Hourly Group Health Insurance
(BCBS) 9,808 9,808 9,808
Workers Comp. And Other Benefits 5,988 5,988 5,988
Insurance Property 400,915 - 2,395
Maintenance 102,665 102,665 102,665
Major Maintenance 5 TG Major - - -
Training Expense 9,880 9,880 9,880
Chemicals 39,354 39,354 39,354
Safety Supplies 3,593 3,593 3,593
Environmental Services/Permits 6,886 6,886 6,886
General & Administrative Expense 47,904 47,904 47,904
Shared Services (1) 11,976 11,976 11,976
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,479 10,479 10,479
Engineering/Consulting Fees 23,952 23,952 23,952
Availability Penalty - - -
Business License Renewal 55,000 - -
Alabama Privelege Tax - - - - -
Debtors' Professional Fees - - -
-------------------------------------
Total O&M Costs 2,682,553 3,959,340 3,811,463
Capital Costs 127,291 127,291 127,291
Cash Flow Net 2,809,844 4,086,631 3,938,754
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
<PAGE>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
4/30/02 5/31/02 6/30/02
-------------------------------------
Operating Cash Requirements
Fuel: Coal 785,074 635,287 -
Fuel: CT - - 1,542,065
Fuel: Natural Gas 1,426,949 1,112,625 1,076,734
Fuel: 7TG - - -
Fuel: Biomass 474,152 535,333 -
Fuel: Secondary Dispatch - - 257,452
Fuel: Purchased Power - - 483,546
Total Fuel 2,686,174 2,283,245 3,359,796
Ash Hauling (1) 55,000 55,000 55,000
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses 68,982 71,281 68,982
Hourly Payroll 199,676 179,178 176,018
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,486 131,486 131,486
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,748 15,748 15,748
Hourly Employee Pension and Benefits 54,012 53,326 53,221
Engineering Services SCS 5,988 5,988 5,988
Legal Fees & Audit Fees 5,988 5,988 5,988
Allocated Rent & Depreciation - - -
Allocated G&A/Support - - -
Interconnection Service Fee
(Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit
(Scott CU) - - -
Hourly Labor 401(k)
(Merrill Lynch) 6,677 5,992 5,886
Hourly Group Health Insurance
(BCBS) 9,808 9,808 9,808
Workers Comp. And Other Benefits 5,988 5,988 5,988
Insurance Property - - -
Maintenance 877,813 105,359 105,359
Major Maintenance 5 TG Major - 29,940 29,940
Training Expense 9,880 9,880 9,880
Chemicals 39,354 39,354 39,953
Safety Supplies 3,593 3,593 3,593
Environmental Services/Permits 6,886 6,886 6,886
General & Administrative Expense 47,904 47,904 47,904
Shared Services (1) 11,976 11,976 11,976
Property Tax - - -
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,479 10,479 10,479
Engineering/Consulting Fees 23,952 23,952 23,952
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax 15,250 - -
Debtors' Professional Fees - - -
-------------------------------------
Total O&M Costs 4,365,750 3,185,487 4,256,967
Capital Costs 127,291 127,291 127,291
Cash Flow Net 4,493,040 3,312,778 4,384,258
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
<PAGE>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
7/31/02 8/31/02 9/30/02
--------------------------------------
Operating Cash Requirements
Fuel: Coal - - -
Fuel: CT 2,570,108 2,570,108 1,542,065
Fuel: Natural Gas - - -
Fuel: 7TG - - -
Fuel: Biomass - - -
Fuel: Secondary Dispatch 257,452 257,452 257,452
Fuel: Purchased Power 483,546 483,546 483,546
Total Fuel 3,311,106 3,311,106 2,283,063
Ash Hauling (1) - - -
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses - - -
Hourly Payroll 181,888 181,888 176,018
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,486 131,486 131,486
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,748 15,748 15,748
Hourly Employee Pension and Benefits 53,417 53,417 53,383
Engineering Services SCS 5,988 5,988 5,988
Legal Fees & Audit Fees 5,988 5,988 5,988
Allocated Rent & Depreciation - - -
Allocated G&A/Support - - -
Interconnection Service Fee
(Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit
(Scott CU) - - -
Hourly Labor 401(k)
(Merrill Lynch) 6,083 6,083 5,886
Hourly Group Health Insurance
(BCBS) 9,808 9,808 9,808
Workers Comp. And Other Benefits 5,988 5,988 5,988
Insurance Property - - -
Maintenance 105,359 105,359 159,251
Major Maintenance 5 TG Major 59,880 59,880 59,880
Training Expense 9,880 9,880 9,880
Chemicals 39,354 39,354 39,354
Safety Supplies 3,593 3,593 3,593
Environmental Services/Permits 6,886 6,886 6,886
General & Administrative Expense 47,904 47,904 47,904
Shared Services (1) 11,976 11,976 11,976
Property Tax - - 224,551
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,479 10,479 10,479
Engineering/Consulting Fees 23,952 23,952 23,952
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax - - -
Debtors' Professional Fees - - -
--------------------------------------
Total O&M Costs 4,119,898 4,119,898 3,364,197
Capital Costs 127,291 127,291 127,291
Cash Flow Net 4,247,189 4,247,189 3,491,488
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
<PAGE>
Mobile Energy Services
Monthly Operating Budget Details
Month Ending Month Ending Month Ending
10/31/02 11/30/02 12/31/02
------------------------------------
Operating Cash Requirements
Fuel: Coal - - -
Fuel: CT 1,028,043 514,022 514,022
Fuel: Natural Gas - - -
Fuel: 7TG - - -
Fuel: Biomass - - -
Fuel: Secondary Dispatch 1,029,808 1,544,712 1,544,712
Fuel: Purchased Power 1,934,182 2,901,273 2,901,273
Total Fuel 3,992,034 4,960,007 4,960,007
Ash Hauling (1) - - -
Compressed Air (1) 67,134 67,134 67,134
Biomass O&M Expenses - - -
Hourly Payroll 206,222 179,852 181,891
Other Employee Deductions - - -
SEI Billing - - -
Salaried Employees 131,486 131,486 131,486
Overhead Reimbursement - - -
Home Office Wages & Salaries 15,748 15,748 15,748
Hourly Employee Pension and Benefits 54,231 53,349 53,417
Engineering Services SCS 5,988 5,988 5,988
Legal Fees & Audit Fees 5,988 5,988 5,988
Allocated Rent & Depreciation - - -
Allocated G&A/Support - - -
Interconnection Service Fee
(Market Power Operations) 6,000 6,000 6,000
Hourly Labor Direct Deposit
(Scott CU) - - -
Hourly Labor 401(k)
(Merrill Lynch) 6,896 6,014 6,083
Hourly Group Health Insurance
(BCBS) 9,808 9,808 9,808
Workers Comp. And Other Benefits 5,988 5,988 5,988
Insurance Property - - -
Maintenance 285,000 150,269 105,359
Major Maintenance 5 TG Major 89,820 149,700 -
Training Expense 9,880 9,880 9,880
Chemicals 39,354 39,354 39,354
Safety Supplies 3,593 3,593 3,593
Environmental Services/Permits 81,736 6,886 6,886
General & Administrative Expense 47,904 47,904 47,904
Shared Services (1) 11,976 11,976 11,976
Property Tax - - 134,730
Utilities Gross Receipt Tax (2) - - -
Water & Effluent 10,479 10,479 10,479
Engineering/Consulting Fees 23,952 23,952 23,952
Availability Penalty - - -
Business License Renewal - - -
Alabama Privelege Tax - - -
Debtors' Professional Fees - - -
------------------------------------
Total O&M Costs 5,111,218 5,901,358 5,843,653
Capital Costs 127,291 127,291 127,291
Cash Flow Net 5,238,509 6,028,649 5,970,944
(1) Shared Services costs are included in G&A during 2000
(2) Costs are passed-through to Mill Owners
