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County of Alameda - General Services Agency Net Present Value - Annual PG&E Bill Savings

The stream of benefits for ten years, 2002 to 2011, were best fit with a straight line to obtain esti mates of the continuing stream of benefits for the years 2012 through 2026 - a total of 25 years. The present value of each years benefit was then computed, the sum made over the 25 years to obtain a Net Present Value of $5,561,194. This differs by 2% from the value calculated by Alameda County GSA - a difference which may be accounted for by a difference in starting year for the stream. The plot below shows the Annual Benefit projection and the corresponding present values for each year. The discount rate was taken as 8%.

Annual PG&E Savings - Alemeda County, Santa Rita Jail


$800,000 700,000 Best Fit Line to Years 2001-2010 600,000 500,000

Annual Dollars

400,000 300,000 200,000 100,000 Annual Present Value

Annual Benefit

2001

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2026

Year

County of Alameda - General Services Agency

12/1/04

LL Bucciarelli

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