RNR Consulting was engaged by CPP as a subcontractor to Middough Inc. to prepare a pro-forma statement as part of the Feasibility Study for Construction of a Combined Heat and Power Project. RNR Consulting’s approach towards developing the pro forma of the proposed facility’s operation included several steps. The first was information and data gathering. Typically, this is subdivided into two components: a) identifying the types of costs/expenses and expected revenue streams; and b) researching and developing the supporting data for the types of costs/expense and revenue categories identified. 

The project pro forma was prepared for a 20 year time horizon. Inputs to the pro forma will include:
 Steam Sales
 Power Sales (Customer)
 Power Sales (Excess)
 Operation and Maintenance Labor
 Asset Management
 Total Maintenance/Repair/Reserve/Safety/Training
 Fuel
 Sorbent (Lime/Limestone)
 Ammonia/Urea
 Chemicals
 Water & Sewer
 Waste/Ash Disposal
 Utilities
Each of the inputs was subjected to escalation rates consistent with industry standards. The data developed for each of the categories was presented in a spreadsheet that was used ultimately to identify the cost and revenue flow across a 20-year time line. Outputs from the pro forma included return on investment, net present value, and simple payback and other financial indicators.

The Scope of Work includes:
 Identification of cost and expense categories and values;
 Determination of revenue streams;
 Characterization/determination of unit costing;
 Preparation of a spreadsheet pro forma;
 Assessment of project financial success factors.