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<br />88 <br />Page 35 <br /> <br />Guarantees. This analysis, as further illustrated in Chart B below, indicates that when <br />commodity prices are at $85.98 per ton or below, SBWMA's total costs under the HBC proposal <br />are $1.031 M less than SBR's. However J when commodity prices rise, the $1.031 M is reduced <br />and is completely eliminated when commodity prices are at $102.29 per ton. At this price, the <br />benefit of HBC's Revenue Guarantee is neutralized and SBWMA's costs for service are equal <br />between HBC and SBR. At commodity prices above $102.29 per ton, the operating costs <br />difference is reversed and SBWMA's costs under the SBR proposal are less than HBC's. As <br />commodity prices increase, the operating costs difference continues to increase until commodity <br />prices reach $119.78 per ton. At this price or higher, SBWMA's total costs under the SBR <br />proposal are $1.106M less than HBC's (see Figure B). <br /> <br />Table 5 <br /> <br /> Difference <br /> Price per Revenue HaC Toted HaC SBR Tota"l SBR Between <br /> Ton Revenue Adjusted Revenue Adjusted HBCand <br /> Sharina Costs Sharina Costs SBR <br /> Proposed Operating Costs $14.987 - $13.169 $1.818 <br /> $0.0 $0.000 $10.100 $4.887 I $7,250 $5.919 ($1.031 ) <br /> $85.98 $7.250 $10.100 $4.887 $7.250 $5.919 ($1.031) <br /> $94.14 $7,938 $10.100 $4.887 $7.766 $5.403 ($0.515) <br /> $102.94 $8.625 $10.100 . $4.887 $8.281 $4.887 $0.00 <br /> $111 .06 $9.363 $10.100 $4.887 $8.835 $4.334 $0.553 <br /> $119.78 $10.100 $10.100 $4.887 $9.387 $3.781 $1.106 <br />I $140.00 $11.805 $11.379 $3.609 $10.666 $2.503 $1.106 <br /> <br />* In millions <br /> <br />SBWMA - EC Report <br /> <br />Page <br />17 <br /> <br />1/15/2009 <br />