Sea Breeze Victoria Converter Corporation ("Sea Breeze") CPCN Application for Vancouver Island Cable Project ("VIC")

Transcription

1 D A V I S LEGAL ADVISORS since 1892 &companyllp fromtheofficeof P. John Landry direct tel: direct fax: pjl@davis.ca (. ~/- 3>0 C31-30 March 14, 2006 file number: Mr. Robert J. Pellatt Commission Secretary British Columbia Utilities Commission Sixth Floor, 900 Howe Street Box 250 Vancouver, BC V6Z 2N3 Dear Mr. Pellatt: Re: Sea Breeze Victoria Converter Corporation ("Sea Breeze") CPCN Application for Vancouver Island Cable Project ("VIC") Please find enclosed the direct testimony for the members of Sea Breeze Panel D who have not previously appeared in this proceeding. The Panel consists of Mr. Brian Chemack (Chair), Mr. John Tompkins, Mr. Mike Wise, Dr. Zak El-Ramly, Mr. Alexey Melekhin, and Mr. Christopher Moscardelli. Attached is the direct evidence for Mr. Alexey Melekhin and Mr. Christopher Moscardelli, along with a CV for Mr. Moscardelli. The remaining CVs may be found in Exhibit B2-5l. The direct testimony for Mr. Chemack and Dr. El-Ramly may be found in Exhibit B2-68. The direct testimony for Mr. Tompkins and Mr. Wise may be found in Exhibit C3l-20. Yours truly, P. John Landry PJL/jzd DAVIS & COMPANY LLP Park Place, 666 Burrard Street, Vancouver, BC Canada v6c 2z7 VANCOUVER TORONTO MONTREAL CALGARY EDMONTON WHITEHORSE YELLOWKNIFE TOKYO

2 DIRECT TESTIMONY OF ALEXEY MELEKHIN Q1. Please state your name and present position. My name is Alexey Melekhin and I am a Manager of Financial Analysis and Evaluation for ZE PowerGroup Inc. Q2. How long have you held that position? I have held this position since Q3. Prior to this position, what other positions did you hold, and with whom? Prior to working with ZE PowerGroup, I was a Senior Financial Analyst for Catalyst Capital Partners ( ) and a Senior Investment Manager Analyst at the Federal Bank for Innovation and Development of Russia ( ). Prior to this ( ), I was an Investment Officer at International Finance Corporation, an investment branch of the World Bank Group. I was also an Investment Analyst/Business Analyst with Intelcom Ltd, (Russia) from 1992 to 1995 and Research Fellow with the Soviet Union Academy of Sciences from 1985 to Q4. What are your professional qualifications and other areas of special expertise? I obtained an MBA from the University of California at Berkley in 1997 and an M.Sc. in Physics (Hons.) from the Moscow University of Physics and Technology in I ani also a Chartered Financial Analyst (CFA) and a member of the Vancouver Society of Financial Analysts and the Association for Investment Management and Research (US). I am a Level 4 CGA student. I passed the Canadian Securities Institute Securities Course and Conduct and Practices Course with honours. I have also received professional training through the Deutsche Bank Correspondent Banking Seminar and the World Bank Induction Program for Investment Officers. Q5. What role have you played in the development of the VIC Application, the Juan de Fuca Project, or the analysis of the VITR Application? I have worked with other ZE PowerGroup members on the VIC project justification and project estimates, as well as on preparing responses to Information Requests. With respect to VIC, I participated in late-stage development of the Sea Breeze financial model, and I took part in debugging the model and verification of results. I provided probabilistic simulation and analysis of the model to estimate P50 and P90 financial results.

3 - 2 - I also participated in late-stage development of the Juan de Fuca Project financial model, specifically in estimations of the project revenue requirements NPV as a percentage of VITR project costs. I also worked with other ZE PowerGroup members on preparing responses to Information Requests. Q6. Did you obtain any expert assistance in fulfilling this role? I engaged in consultation with Dr. Zak El-Ramly, Jiri Sochor, Sea Breeze financial analyst Alex Bardas, and other members of the project team. Q7. Does this complete your direct testimony? Yes.

4 - 3 - DIRECT TESTIMONY OF CHRISTOPHER MOSCARDELLI Q1. Please state your name and present position. My name is Christopher Moscardelli. I am a Vice President for Societe Generale in New York. Q2. How long have you held that position? Five and a half (5-Y2)years. Q3. Prior to this position, what other positions did you hold, and with whom? Prior to this position I worked as a Civil Engineer for the Indiana Department and as a Project Manager/Project Engineer for Gannett Fleming, Inc. of Transportation Q4. What are your professional qualifications and other areas of special expertise? I am a registered professional engineer (civil) in the state of Massachusetts. In addition to my engineering qualifications, I specialize in the financing of energy, power, and infrastructure projects in a variety of roles. Q5. What role have you played in the development of the VIC Application, the Juan de Fuca Project, or the analysis of the VITR Application? As a Vice President at Societe Generale, I have served as Financial Advisor for Sea Breeze Pacific Juan de Fuca Cable, LP with regard to its Juan de Fuca Project. In that capacity, one of the tasks I have been responsible for was to assist the Company in developing the financial model that is being used for the Juan de Fuca Project. Q6. Did you obtain any expert assistance in fulfilling this role? I have worked with ElF in relation to the financial model. More particularly, I have worked with ElF to assess financial targets for providing equity financing for the Juan de Fuca Project. Q7. Does this complete your direct testimony? Yes.

5 CHRISTOPHER P. MOSCARDELLI 4 Franklin School Way Metuchen, NJ (212) (0) (917) (C) CHRIS.MOSCARDELLI@SGCm.COM PROFESSIONAL SUMMARY Several years of experience in the energy, power, and infrastructure sectors serving a variety of roles. Began career and became registered as a Civil Engineer responsible for the design and construction of large scale infrastructure projects. Joined Societe Generale and focused on the financing of transmission, power, and infrastructure projects, serving as both advisor and arranger. Gained significant experience structuring transactions in several markets including the bank market, the private placement market, and the capital markets. EMPLOThfENT: SOCIETE GENERALE (2000-present) Vice President, Project and Sectorial Finance Joined SG's Project Finance Group in 2000 and focus primarily on domestic power, transmission, and infrastructure project financings in both arranging and advisory roles. Serve as an advisor, arranger, underwriter, and equity placement agent serving a wide variety of clients focused on the energy and infrastructure sectors. Participated in several important project finance transactions mostly in the U.S. Recently completed an advisory role for the high profile financing of the Neptune Project, a 660 MW high voltage direct current ("HVDC") transmission line developed by Atlantic Energy Partners. The Neptune Project will provide transmission capacity intercolmecting the Long Island Power Authority with the Pennsylvania, New Jersey, Maryland Interconnection ("PJM") in New Jersey. GANNETT FLEMING, INC. ( ) Project Manager/Project Engineer Managed several infrastructure projects from design through construction. Designed several complex transportation and civil engineering development projects requiring full preparation of plans, specifications, and estimates. Worked closely with several public agencies through design process, including substantial contract negotiations and public hearing processes. Oversaw construction activities for several projects following completion of design. INDIANA DEPARTMENT OF TRANSPORTATION ( ) Civil Engineer Worked as civil engineer for design of several state of Indiana highway roads and bridges. Focused on hydraulics and hydrology to analyze waterways for given projects and determined sizing parameters to be used in bridge design. Implemented computer modeling programs to analyze different river characteristics and flow types. Organized and supervised highway construction operatious.

6 EDUCATION: COLUMBIA BUSINESS SCHOOL, New York, NY MBA, Finance, May 2000 Energy Roundtable, Hermes Society, Real Estate Association, Emerging Markets Club, Columbia Finance Association, Mentor Society, Intramural Basketball League, Ski Club, Admissions Open House Committee UNIVERSITY OF NOTRE DAME, Notre Dame, IN B.S. Civil Engineering, 1992 Varsity Football Team (Monogram Award Winner), Elected to various Student Government program, Freshmen Orientation Committee, Undergraduate Schools Committee positions, "Big Brother" ADDITIONAL INFORMATION: Professional Engineer (Massachusetts) - Civil: License No Interests include: skiing, traveling, basketball, softball