Appendix A Valuation Multiple for Comparable Regulated Energy Firms

(Dollars in Millions)
MV EQUITY ENTERPRISE VALUE BOOK VALUE EPS
EQUITY (Book Value)
Aaliant Energy Corp. 3,333.00 5,600.00 2,806.00 1.42
Cinergy corp 7,989.00 13,231.00 4,178.00 2.15
NSTAR 2,898.00 5,287.00 1,484.00 1.78
SCANA CORP. 4,486.00 7,967.00 2,566.00 2.34
WINCONSIN ENERY CORP. 4,048.00 7,691.00 2,522.00 2.62
Median 4,048.00 7,691.00 2,566.00 2.15
Mean 4,551.00 7,985.00 2,711.00 2.06
PACIFIC CORP.
(Based on Median) 5,904.00 7,596.31 3,377.00 0.81
Analysis Above the Median Above the Median

(Dollars in Millions)
Equity Debt & Pref Stock
Market Value 5,904.00 1,692.31
Buying Price 5,100.00 4,300.00
Book Value 3,377.00 3,677.80
Gain in Intrinsic Value 804.00 2,607.69
 ENTERPRISE VALUE MV EQUITY Price Per share Shares O/S
REVENUE EBIT EBITDA NET INCOME EPS BOOK VALUE Millions

5,592.51 5,598.60 5,602.40 5,600.60 3,341.25 3,339.14 28.85 115.74

13,214.52 13,232.34 na 13,231.00 7,971.06 7,979.98 42.55 187.53
5,287.66 5,287.10 5,286.06 5,287.70 2,892.30 2,893.80 27.16 106.55
7,964.25 7,995.26 7,964.25 7,967.52 4,492.50 4,490.50 39.74 113
7,685.44 7,690.30 7,687.29 7,689.78 4,055.18 4,060.42 34.71 116.99
7,033.55 7,086.10 7,070.25 7,967.52 4,227.81 4,490.50
17,169.57 112,644.19 35,281.54 238,739.15 77,858.31 7,648.65

6,252.00 8,775.00 9,023.00 7,596.00 4,277.00 5,904.00 18.91 312.18

Above the Median Above the Median Above the MedAbove the Median

PACIFIC CORP
MV Equity
Stocks RE Total Equity
Median EPS(Per share) 13.76
EPS(Total share) 4,296.19 1,607.81 5,904.00
Mean EPS(Per share) 13.86
EPS(Total share) 4,326.53 1,351.47 5,678.00
Total Number of shares Outstanding 312.18
(Millions)
EV toEVITDA

1.000

1.000
1.000
1.000

0.842
Annex B
Acquisition of Pacific Management Corp.

INVEST ABILITY TEST

Evaluate the following:
(Dollars in Millions)
1 Return on Equity Pacific Alliant Cinergy NSTAR SCANA WISCONSIN
Net Income(BV) 251.70 164.00 404.00 190.00 264.00 306.00
Shareholder's Equity(BV) 3,377.10 2,805.00 4,178.00 1,484.00 2,566.00 2,522.00
ROE(2005) 7% 6% 10% 13% 10% 12%
ROE(2004) 7%

2 Debt to Equity
Total Debt 1,692.31
Shareholder's Equity 5,904.00
Debt to Equity Ratio 29%

3 Price to Book Ratio

Shareholder's Equity(BV) 3,377.00
Total Shares Outstanding 312.18
(In Millions)
Book Value Per share 10.82
Shareholder's Equity(MV) 5,904.00
Price per Share(MV/sahre) 18.91
Price to Book Ratio 1.75

4 Intrinsic Value(Market Value )

Market Value Equity 5,904.00
Book Value of Equity 3,377.00
Value Created 1.75 investment in market value based on comparable regulated Energy Industry
Value Created 1.16 investment in market value based on Initital Investment in Equity

5 Management and Business operation is sustainable

 See Strenthg of The Company dtated in SWOT Analysis

6 Gain in Intrinsic Value

Buying Price(Billion)
Cash
Cash Payment for Equity
Market Value of Equity
Gain
5,100.00 Actual Payment
5,904.00 Market Capitalization
804.00 Under Payment

Assumed Long-term Debt & Preferred stocks

Debt and Preferred Stocks 4,300.00 Offered Price
Debt and Preferred Stocks(MV) 1,692.31 True assumed Debt and Preffered Stocks to be paid
Gain 2,607.69 Over Assumption