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Changing Power for the FutureThe landscape of America’s electric power production is changing. Environmental regulations are becoming increasingly strict with requirements to significantly lower power plants’ air emissions and decrease the strain on natural resources. With newer technologies and more affordable fuel sources available to meet those requirements, more coal-fired plants than ever are being decommissioned.

But deciding to decommission a plant is more than shutting down and dismantling. It involves in-depth considerations of what the future holds for the plant’s site. Beginning on page 9, we delve into the various aspects plant owners must consider, such as asset valuation, environmental studies, and site cleanup and redevelopment, and how they affect the future of providing electric power.

Coal-fired power plants have been a mainstay in our country’s electric power supply for more than 100 years. And they no doubt will continue to be. But as the regulatory changes begin to alter the way we provide and consume power, we must be diligent in transitioning to a new era of power generation.

Larry MilnerVice President and General Manager

Chicago

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Technical Q&A: Dynamic Pricing

How It Works Lean Six Sigma: Continuous Improvement for More Efficient Operations

Lean and Six Sigma are two of the most common disciplines in the business management practice of continuous improvement. Lean is a systematic approach of identifying and eliminating waste and maximizing the use of available resources, while Six Sigma relies heavily on process data and statistical tools to reduce variation and improve quality. Both continuous improvement disciplines focus on improving the customer experience, and, in combination, these two programs can generate substantial, transformational performance improvement.

One common myth about Lean Six Sigma is that it is only applicable to manufacturing. “Not so,” says Chris Williams, project manager and Lean Six Sigma Master Black Belt at Burns & McDonnell. “We see increasing interest in Lean Six Sigma in areas including healthcare, pharmaceuticals, energy,

government and financial services. If you use defined processes to make a product, deliver a service or execute a transaction, Lean Six Sigma can help you do it more efficiently.”

In building design and construction, Burns & McDonnell Lean Six Sigma Master Black Belts typically get involved in the early stages of design planning to drive design decisions around optimized client processes. “Moving into a new space provides a truly unique opportunity to improve process efficiency,” Williams says. “Considering that you’ll live with some of these design decisions for decades, you want to apply some Lean thinking up front.”

Improving process efficiency isn’t the only benefit. The capital investment required for construction or expansion can often be

reduced or delayed. For example, during a recent design project, Burns & McDonnell was able to reduce the required footprint of a new aerospace manufacturing facility by nearly 20 percent, saving the client several million dollars in design and construction costs.

Clients employing Lean Six Sigma can expect a 20 percent to 50 percent improvement in key metrics such as cycle time, quality, inventory turnover and on-time delivery, with much greater improvements possible in some cases.

“It’s not just a matter of how much you can improve in a single event or short period of time,” Williams says. “The real question is: How much better do you need to be to serve your customer? Whatever your answer to that question, Lean Six Sigma can help you achieve it.”

For more information, contact Chris Williams, 817-377-0361, ext. 231.

Q : As an electric utility, should I be preparing for dynamic pricing?

A: Generation costs are rising. Advanced metering infrastructure provides utilities with useful time-centric data for developing dynamic pricing in place of bundled rates. Dynamic pricing reflects utilities’ actual costs more accurately than traditional rates. With dynamic pricing, electric rates can aim to recover costs and meet these goals:• Promoteenergyefficiency• Incentivizepeak-loadreductionand

off-peak energy use• Promoteequitybetweencustomers• Clearlycommunicatepricesandcosts• Facilitatecustomerchoice

All types of dynamic pricing include a time-of-use component. Time periods can be as simple as seasonal or daily peak period

tomorerobusthourlymeasures.Pricingbased on hourly variations in wholesale market prices can allow utilities to send real-time price signals to retail consumers, creating opportunities to reduce costs and increasevaluetoconsumers.Pilotstudiesofdynamic pricing at the retail level have shown demand reduced up to 20 percent during peaks, and customers usually reduce energy consumption while lowering their total bills.

Burns & McDonnell performed comprehensive electric rate studies in Naperville, Ill., and Lakeland, Fla., as part of the utilities’ federally funded Smart Grid projects. Our analysts developed detailed financial-forecast models representing each utility’s overall cost of providing service. The costs were separated by customer class and

unit costs calculated during multiple time periods to develop time-of-use rates. Hourly energy-load data was integrated into the models to estimate revenues under new rates.

Technologies such as electric vehicles, battery storage and thermal energy storage increase the need for dynamic pricing — and the developing Smart Grid makes these rate structures both possible and valuable for utilities and their customers.

Ted Kelly is a senior manager in the Burns & McDonnell Business & Technology Services Group. His extensive experience includes utility rates and financial feasibility evaluation. Contact him at 816-822-3208.

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In-House NewsForecasting the Future, Burns & McDonnell Narrows Focus on Transportation and Water

Burns & McDonnell is shifting its resources to help solve the nation’s growing problem with aging and unreliable water and transportation systems.

While building its portfolio of experience in both areas, the firm recently restructured one of its 10 operating divisions. “The goal is to more effectively deliver the services Burns & McDonnell clients will need to make infrastructure investments better, faster and less expensive,” says Jim Foil, senior vice president and general manager of the former Infrastructure Group.

The division now operates as two practices, one that solely handles water systems and the other dealing only with surface transportation infrastructure. The separation will allow Burns & McDonnell to sharply focus in both areas.

“We recognize the urgent, growing need for investment in our national infrastructure,” Foil says. “Now we will be able to give each of these issues more attention and help our clients bring their systems up to 21st century standards.”

Since its founding in 1898, Burns & McDonnell has advocated for clean water, safe roads and bridges. The company specializes in the management and construction of water infrastructure systems and has spent a quarter century providing a full scope of engineering design and construction management for highways, roads and bridges.

Among its many projects nationwide, Burns & McDonnell manages services for the $2.5 billion Kansas City, Mo., combined sewer overflow control program and a long-term project to replenish a major aquifer that supplies much of the drinking water for Wichita, Kan.

“Our engineers are acutely aware of the problems plaguing aging water systems

that are estimated to cost anywhere from hundreds of billions to upgrade drinking water treatment facilities to upward of $1 trillion to replace aging and inadequate infrastructure from coast to coast,” says Ron Coker, vice president and general manager of the newly formed Water Group.

The country’s transportation systems have similar struggles.

The American Society of Civil Engineers estimates that one in every eight bridges is structurally deficient and 85 percent of public transit systems are struggling to carry a rapidly growing number of riders nationwide.

“The need for more reliable and efficient transportation systems is staggering for our clients, who are being left with a lot of uncertainty without funding for many of their programs,” says Ben Biller, vice president and general manager of the new Transportation Group.

Burns & McDonnell recently completed designs for the diverging diamond interchange planned at Interstate 35 and Homestead Lane in southern Johnson County, Kan. The innovative interchange will accommodate heavier traffic loads, especially trucks

traveling to and from a planned intermodal facility nearby. The project is one of several successes that form the foundation for the firm’s enhanced transportation portfolio.

In 2010, the firm acquired the assets of Harrington and Cortelyou (H&C), a Kansas City, Mo. company with a 100-year legacy in bridge, highway and roadway design. H&C has designed several high-profile bridges over the Missouri River and more than 800 bridges throughout the state of Missouri.

“This significantly bolsters our efforts and allows us to immediately have capabilities in our portfolio to deliver signature bridge design,” Biller says. Burns & McDonnell now has the in-house ability to design cable stay bridges, river crossings, interchanges, segmental bridges and a wide variety of structures.

“We are signaling to our clients that our focus on transportation is of equal importance as our other standalone practices as we continue our investment and pursuit of a higher level of expertise delivered with the same high quality service.”

Contact Jim Foil at 816-822-3180, Ben Biller at 816-822-3479 or Ron Coker at 816-822-3082.

From left: Ben Biller, Jim Foil and Ron Coker, the team leading the transition from a combined Infrastructure Group to separate Transportation and Water practices.

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to TRANSMISSION LINESFrom TORTOISES

K R I S T I W I S E ’ S C A R E E R T A K E S U N C O N V E N T I O N A L R O U T E

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If you had asked Kristi Wise in 1999, when she began working at Burns & McDonnell, what her job would be like in 12 years, her answer might have more to do with gopher tortoises than transmission lines.

With a pedigree in wildlife biology, Wise, a project manager in the Burns & McDonnell EnvironmentalStudies&Permitting(ES&P)Group,imaginedshe’dspendhertime interacting with animals, not upset landowners. But today, she specializes in transmission line routing, finding the optimal route to connect power generation sources to the point of consumption via the national power grid.

In the Wild Wise’s love of wildlife was fostered at an early age through family camping trips to national and state parks in Kansas, Missouri and Colorado.

“We’d go out at dusk looking for deer and beavers. I’d just sit outside getting eaten by mosquitoes, watching beavers build their dams,” she says. “At the time, I wanted to be a park ranger.”

Her love for nature led her to study wildlife biology at Kansas State University. She went on to raise 60 coyote pups en route to earning her master’s degree in 1996 from Utah State.

After college, Wise worked as a field coordinator for the Missouri Department of Conservation in St. Louis, where she participatedintheUrbanDeerProject,tracking the movements of deer in the city’s suburbs. The opportunity of a permanent job and the chance to move back home to OverlandPark,Kan.,broughtherto Burns & McDonnell.

Wise spent her first several months at Burns & McDonnell as a wildlife biologist, completing wildlife surveys, studying bald eagles, gopher tortoises and more. But it wasn’t long before her career took a different turn.

Route Change As the company’s transmission and distribution work increased in the late 1990s, demand expanded for people to complete routing studies to research the environmental impact of transmission line projects and prepare clients for the permitting process. Wise accepted the challenge.

“In our division, you need to be a jack of all trades,” Wise says. “Transmission line routing is one of our bread-and-butter-type projects, and we needed people to do the work.”

Wise learned the routing ropes from Cyril Welter,aprojectmanagerinES&Pwhoretired from Burns & McDonnell in 2010 after 30 years with the firm. “Cyril taught me everything there is to know about transmission lines,” Wise says. “My career here is because of him.”

Welter says Wise was a fast learner due, in part, to her background in biology. “She brought with her knowledge of statistical methods and mapping systems that helped her get up to speed quickly,” he says. “She got a grasp of what the significant issues were early on.”

Dale Trott, senior vice president, agrees that Wise’s experience in wildlife biology helped her transition easily to the transmission line routing field.

“Kristi is very analytical. She is good at coming up with quantifications and understands the complexity of transmission line routing work,” he says. “She’s also very bright and very adaptable. She’s willing to learn new things, yet she has her own style of doing things.”

Adding to the complexities of finding the best route for a transmission line project, these projects often face significant opposition. Wise frequently interacts with stakeholders at public meetings, and she has

defended projects with testimony during utility hearings.

Jim Hogan, vice president in the Transmission & Distribution Group, worked with Wise on the Middletown-NorwalkProjectforNortheastUtilities in Connecticut. “Kristi is really good at public meetings,” Hogan says. “She is the calm in the storm when everything’s going crazy around her.”

The Right Place Although it’s not the dream she had in her childhood, Wise is pleased with the way her career has panned out. “I really do like the opportunities I’ve been given and the challenges in transmission line routing,” she says. “I know a lot more about transmission lines now than I do wildlife.”

Wise’s counterparts at Burns & McDonnell and her clients agree she’s a perfect fit for the job.

“When clients get into a bind and need something in a hurry, she always manages to get things turned around in a very prompt manner. They appreciate that,” says Mark VanDyne,marketingdirectorinES&P.

Kelly Harrison, vice president of transmission at Westar Energy in Topeka, Kan., recalls working with Wise on a 345-kV transmission line project in Kansas from Wichita to Hutchinson to Salina in late 2006. Harrison says the 100-mile project was initially planned as two phases, but midstream was combined into one project to be completed within the same year-end deadline.

“Kristi brought in extra resources and worked through the holidays, and we were able to complete the job on time,” Harrison says. “At the end of the day, she went over, above and beyond the call of duty, met the deadline, and submitted a great report.”

These days, Wise hasn’t lost her love for wildlife. She still enjoys spending her free time camping with family. Her favorite camping spotsareclosetohome,atWallaceStateParkand Truman Lake in Missouri, where she always finds plenty of deer, beavers and mosquitoes.

Contact Kristi at 816-822-3598.

“She is the calm in the storm when everything’s going crazy around her.”

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It’s a commercial real estate developer’s dream: an 11-square-mile area in the heart of America that comes ready-made with electric and gas utilities, a sewer system, and an abundant water supply. Rail line access is conveniently located within a mile of the site. What’s more, the site is just minutes from two major interstates, putting two-thirds of the United States within reach by truck. And it is all available through a single owner.

Until recently, a mega site like this was indeed just a dream.

But it became a reality in October 2011 when the former Newport Chemical Depot in west central Indiana was rechristened the VermillionRiseMegaPark.

Today, Vermillion Rise is being marketed for industrial development and other uses, says Jack Fenoglio, president of the Newport Chemical Depot Reuse Authority, which was deeded the decommissioned chemical weapons depot from the U.S. Army after devoting more than five years preparing it for private use.

The Fast Track One of nine Army installations that manufactured chemical agents and stored

chemical weapons, the Newport Chemical Depot was slated in late 2005 for closure under the Department of Defense’s Base Realignment and Closure program.

The reuse authority was created to work with the community to create a plan and implementation strategy for converting the 70-year-old depot to civilian use.

“We had 11 square miles of a former military installation, and we weren’t sure what shape the infrastructure was in,” Fenoglio says. “We had lots of questions.”

To get answers, the authority retained Burns & McDonnell to help identify the site’s strengths and weaknesses and then develop, among other things, an infrastructure master plan to guide its future.

“When news comes out that a military base nearby is closing, the local reaction is often

RISES AGAINVERMILLION

Former Chemical Weapons Depot Is Cast in a New Role After Redevelopment Process

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not good,” says Lawrence Fieber, a principal for Burns & McDonnell in Chicago. “The local community is often in shock, focused only on the negative financial impact that a base closure can have.”

But a closure is not necessarily bad news. “Dozens of previously closed bases have been reinvented as centers of industry and research. The same thing can happen here,” Fieber says.

The key is to move quickly and cooperatively. And the reuse authority did.

“It was better for the Army that we redevelop the property quickly to reduce its operating costs,” says Bob Rendaci, treasurer of the authority’s board. “It was also better for the region, which has a highly skilled workforce. By moving forward quickly with our reuse plan, we can limit the resources that might otherwise migrate from our area.”

By performing the preliminary work before the base closure, the authority was able to move quickly when it was officially decommissioned

in July 2010. The property was transferred just 14 months later.

Assessing the site and designing infrastructure improvements required the resources of multiple Burns & McDonnell service areas and divisions. The knowledge of environmental, infrastructure, energy and business technology groups were called into action, as well as the company’s aviation facilities and electrical transmission and distribution specialists.

“It was great to have all the resources in one place that we could call on for answers quickly. It was also a very practical approach for us to get the results we needed,” Rendaci says.

A 50/50 Plan The reuse authority’s plan balances large- scale industrial and commercial uses, while retaining much of the surrounding natural environment.

It was developed with substantial input from the local community. “In our outreach, we found an interest in a balanced reuse — using some land to support business development

while reserving some land for natural and open spaces,” Rendaci says.

That plan, in fact, includes a near-50/50 split between natural and built areas, with abundant parkland, natural and open spaces, agriculture and forestry encircling areas designated for business and technology, conference and support facilities, and highway-oriented commercial development.

The board has already identified and is working with potential business partners, including a diversified mix of large and small industrial users.

“Our plan demonstrates that we can attract investment and create jobs, while protecting the environment,” Fenoglio says. “We’re excited to put it into action.”

For more information, contact Lawrence Fieber, 312-223-0920, ext. 2239.

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The dismantling of a coal-fired power plant along the Colorado River — on a site that once supplied electricity to 1.5 million Las Vegas-area homes — is now complete. Another, demolished recently in Queens, N.Y., stood as the last in a line of historic buildings on property used to generate

Changes to the U.S. Power Generation Fleet Are Being Driven by Environmental, Economic and Market Factors

number of coal-fired plants being retired now exceeds 180 units, with an average age of 54 years and service spans ranging from 19 to 86 years. The generating capacity of this group totals more than 27 gigawatts. Yet that number could expand to between 50 and 80 gigawatts of generating capacity by 2020, aftertheEPA’srulesgointoeffect.

Compliance Deadlines LoomUnquestionably, new and proposed regulations to reduce air emissions, cooling water use and coal combustion residues continue to drive these projections. Requirements to retrofit scrubbers and add other emission control technologies by mid-decade may also force the idling of smaller and medium-sized coal-fired plants across the eastern U.S. and Midwestern states.

Among the pending regulatory actions, two standout:EPA’sCrossStateAirPollution

POWER PLANT

DECOMMISSIONING:A Noble Past, Many Possible Futures

electricity since 1905. Today, six coal-fired units at a 60-year-old plant near Cincinnati, producing more than 860 megawatts of generating capacity, may be retired by January 2015 due in part to new U.S. Environmental ProtectionAgency(EPA)requirementsforemissionscontrols.Plansarealsounderwayfor a decommissioned power plant outside Austin, Texas, to become the centerpiece of a new landmark residential and retail district, complete with light rail and intercity rail connections to the adjacent downtown and area parks.

From coast to coast, an unprecedented transformation is happening within North America’s aging fleet of power plants — driven in large part by emerging environmental regulations, economics, and the rise of relatively low cost and abundant natural gas. Based on a recent Burns & McDonnell study of utilities, the

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Rule(CSAPR)andthenewNationalEmissionStandardforHazardousAirPollutants(NESHAP).FinalizedinJuly2011,CSAPRrequires 27 states to significantly improve air quality by reducing power plant emissions that cross state lines and contribute to ozone and fine particle pollution in other states. CSAPRandrelatedregulationsaredrivingowners of many coal-fired units to install scrubbers to minimize annual sulfur dioxide emissions and to reduce nitrogen dioxide through selective catalytic reduction or selective non-catalytic reduction.

However, on Dec. 30, 2011, the U.S. Court of Appeals for the District of Columbia, granted a last-minute request from electric power producerstodelayimplementationofCSAPR.This put the rule on hold through the spring, while the court weighs legal challenges. FinalizedinDecember2011,NESHAPisdesigned to reduce hazardous air pollutant emissions from coal- and oil-fired electric utility steam generating units under the Clean Air Act (CAA). In particular, the agency’s Mercury and Air Toxics Standards (MATS) sets equipment and work-practice standards to limit toxic air emissions of mercury, acid gases and other hazardous pollutants from existing power plants beginning in 2015. The EPAalsoreviseditsstandardsofperformancefor fossil fuel-fired power plants under CAA section 111(b). Additional regulations to watch within a three- to five-year span include: Best Available Retrofit Technology requirements under the Clean Air Visibility Rule; sulfur dioxide and nitrogen dioxide National Ambient Air Quality Standards; and consent decrees under New Source Review provisions of the CAA.

Even with more stringent air emissions requirements on the horizon, another market dynamic may play an even bigger role in power plant decommissioning: the growing supply of cleaner burning natural gas.

Thanks to new technologies — primarily horizontal drilling and hydraulic fracturing techniques — and plentiful domestic supplies, the price of natural gas has plummeted, making it competitive with coal. Shale gas production alone is expected to increase almost fourfold through 2035. Given the EPA’snewregulationsandthehighcostofretrofitting coal-fired facilities, electrical

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Decommissioning Drivers: New and Pending Regulations

The EPA’s co-proposed rules would require either: 1) listing these residuals as special wastes subject to regulation under Subtitle C of RCRA; or 2) regulating coal ash under Subtitle D of RCRA, the section for non-hazardous wastes, with additional national minimum standards for disposal. The first option would effectively phase out wet handling of coal combustion residuals, while the second option would allow for continued wet handling only after retrofitting surface impoundments with composite liner systems and implementing additional monitoring criteria.

More: http://epa.gov/wastes/nonhaz/industrial/ special/fossil/ccr-rule/index.htm

Clean Water Act, Section 316(b): Cooling Water Intake StructuresThe EPA is developing regulations under Section 316(b) of the Clean Water Act, requiring existing facilities that withdraw at least 2 million gallons per day of cooling water — including steam electric power plants — to use the best technology available in terms of the location, design, construction and capacity to minimize the adverse environmental impacts of cooling water intake structures. According to the agency, these impacts include the impingement of fish and shellfish on cooling water intake screens and the entrainment of their larvae and eggs into facilities’ cooling systems.

All facilities would be subject to impingement and entrainment standards. For impingement, the standards are a maximum annual mortality of 12 percent with a monthly maximum of 31 percent. Alternatively, facilities can achieve a through-screen velocity of less than 0.5 feet per second. In addition, all intake screens that are moved and sprayed with water for cleaning must be equipped with devices designed to minimize the exposure of fish to high intake velocities, the atmosphere, and high-pressure sprays, and gently return impinged fish to the source water. Facilities with ocean or tidal source waters must also reduce shellfish impingement to a level commensurate with a barrier net. For entrainment, facilities can reduce the intake flow to a level commensurate with a closed-cycle, recirculating cooling system or conduct studies to help permitting authorities determine site-specific entrainment mortality controls based on the cost of compliance and the benefit to natural resources. The EPA is expected to implement a final rule by July 27, 2012.

More: http://water.epa.gov/lawsregs/ lawsguidance/cwa/316b/index.cfm

Cross State Air Pollution Rule (CSAPR)Finalized in July 2011, the EPA’s CSAPR requires 27 states to significantly improve air quality by reducing power plant emissions that cross state lines and contribute to ozone and fine particle pollution in other states. The EPA also finalized supplemental rules on Dec. 15, 2011, requiring five states — Iowa, Michigan, Missouri, Oklahoma and Wisconsin — to make summertime nitrogen oxide (NOx) reductions under the CSAPR ozone season control program. However, the U.S. Court of Appeals for the District of Columbia granted a last-minute request (Dec. 30, 2011) by electric power producers to delay this requirement; as a result, CSAPR is on hold through the spring while the court weighs legal challenges.

To meet CSAPR requirements, electric generating facilities must either install controls, buy allowances, reduce operation, fuel switch or retire units.

More: http://epa.gov/airtransport

National Emission Standards for Hazardous Air Pollutants (NESHAP)Proposed by the EPA in May 2011, NESHAP rules address emissions of hazardous air pollutants (HAPs) from coal- and oil-fired electric utility steam generating units under Clean Air Act section 112(d). EPA identified source categories that must meet technology requirements to control HAP emissions and are required to develop standards for all industries that emit one or more of the HAPs in significant quantities.

The EPA also recently issued its Mercury and Air Toxics Standards (MATS) for power plants in December 2011 — designed to limit mercury, acid gases and other toxic pollution from power plants and reflecting application of maximum achievable control technology.

More: http://epa.gov/compliance/monitoring/ programs/caa/neshaps.html and http://epa. gov/airquality/powerplanttoxics/index.html

Coal Combustion ResidualsFor the first time, the EPA is proposing to regulate coal combustion residuals (coal ash) produced by electric generating utilities — wastes still considered exempt under an amendment to the Resource Conservation and Recovery Act (RCRA). After a series of comment periods in 2010 and public submittals during 2011, the EPA is expected to release its final rule in 2012.

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generating companies may opt instead to close plants and/or convert them to rely on more efficient combined cycle gas turbine technology.

ProjectionsbytheU.S.DepartmentofEnergyin its 2011 Annual Energy Outlook: “The role of natural gas grows due to low natural gas prices and relatively low capital construction costs that make it more attractive than coal. The share of generation from natural gas increases from 23 percent in 2009 to 25 percent in 2035.”

A Process of IntegrationWhether choosing to abandon, convert or replace an existing facility, energy providers face a complex set of choices in determining thebestcourseofaction.JeffPope,managerof environmental and remediation services for Burns & McDonnell, knows this first-hand: “Most of the owners in the power industry have been building all these years, or repowering and modifying their facilities. This is the first time they’re actually looking at having to take these units down.”

Many steps factor into the complete decommissioning and retirement of a coal-fired facility, from asset valuation and cost studies to deconstruction scoping, site remediation and possible redevelopment. For example, bidding and cost estimates should reflect the full scope of work required: structural demolition and scrap recovery as well as environmental cleanup costs and site restoration.

“Our integrated team at Burns & McDonnell brings that knowledge of the whole process,” Popesays,“tonegotiateafairpricewithdemolition contractors while addressing environmental remediation, pond closures and other issues after the physical plant comes down. It’s important to have an upfront understanding of all the aspects that go into this process.”

Retire or Not?Every decommissioning, conversion and redevelopment scenario should begin with a careful study of economic models, environmental issues and site options before

determining the best course of action. Burns & McDonnell analysts have conducted numerous studies on plant decommissioning over the past decade to support rate cases and testimony as well as for financial accounting, due diligence and other regulatory requirements.

“A decision on whether or not to decommission a plant calls for a detailed look at your entire portfolio, to see how retiring an asset fits with the rest of your plan and how those costs compare to other capital costs necessary to replace that power generation,” says Jeff Kopp, Burns & McDonnell manager of project development. He agrees on the importance of examining plant retirement as holistically as possible; otherwise, environmental costs, for example, may not be represented accurately.

A case in point: A recent Burns & McDonnell study identified a large amount of high-value scrap metal for one plant, overlooked in the demolition contractor’s estimate. “This dramatically changed the net demolition costs for that facility because we were able to uncover several million dollars in credit,” Kopp says.

The value of a decommissioning study is greater than ever. “Historically, this has been more of an accounting exercise,” Kopp says. “But now that we’re seeing a lot of announced retirements, utilities seem to be transitioning from that study phase to getting ready for actual decommissioning.”

To the Heart of the MatterDemolition may be the most visible symbol of plant decommissioning. Yet it, too, requires a careful approach to removing the complete structure, all equipment and machinery, and auxiliaries such as pumps, piping, boilers, ductwork, fans and more while recovering and recycling valuable scrap.

“First you need to address what decommissioningmeans,”Popesays. “Do you actually tear it down? Take more of an ‘abandon in place’ approach and keep additional units running at a given site? Or simply leave the abandoned assets in place, depending on the market for scrap metal?”

Making the (Rate) Case: Tampa ElectricWhen Tampa Electric Co. needed a new decommissioning report on its five fossil fuel-fired power stations, as part of its regular update to the Florida Public Service Commission (FPSC), the regulated utility turned to analysts at Burns & McDonnell for assistance. This study — required once every four years as part of its depreciation rates update — provides an estimate of total decommissioning obligations at the end of a plant’s useful life. Finalized in March 2011, the study was filed with the FPSC in support of proposed new depreciation rates.

As the principal subsidiary of TECO Energy Inc., Tampa Electric delivers 4,600 megawatts of generating capacity to more than 672,000 residential, commercial and industrial customers in west central Florida. Electric generating plants include Bayside combustion turbines (CTs, natural gas), Big Bend Steam Units (coal), Big Bend CT (natural gas/oil), Polk Unit 1 integrated gasification combined cycle (coal) and Polk Units 2-5 CTs (natural gas/oil).

“We provided them with a comprehensive look at decommissioning, as well as a full study that would hold up to regulatory scrutiny,” explains Jeff Kopp, a Burns & McDonnell analyst. “In turn, this allows Tampa Electric to support the costs expected to be incurred upon retiring any of these plants as part of its depreciation filing with the FPSC.”

As an example of the work performed, through extensive drawing reviews and site visits, Burns & McDonnell developed accurate estimates of scrap metal quantities expected at plant dismantling — and then adequately accounted for the expected scrap value. “Efforts like that essentially save future ratepayers money,” he adds, “because it means the utility appropriately charges customers through its annual depreciation rates to recover a more accurate estimate of future demolition costs.”

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Even with a decision to proceed on dismantling a facility, owners may need assistance with demolition contractors, from developing bid specs, hiring subcontractors and remediation services to assessing the recovery value of scrap materials.

“Often, we can help scope out the demolition work,” explains Vic Ranalletta, manager of the Burns & McDonnell Energy Group in the Chicago office. “Many owners have never done this before, so we’re able to walk them through the process, offer recommendations on what to include. We’ve also taken on the role of owner’s engineer, essentially acting as a general contractor for them.”

Environmental issues remain the biggest and most costly items to address as part of decommissioning. Asbestos abatement must occur before any demolition. Remediation alsoinvolvesleadabatementandPCBandmercury contamination removal where necessary. One area of uncertainty is coal ash pond closure — problematic because federal regulations have not been finalized. Additional tasks include air monitoring, permitting and site restoration.

Repowering and RedevelopmentFor most of the last century, coal-fired power plants have taken up prime real estate along rivers, in or near downtown areas, and featuring rail access, roadways, water, sewers and other utilities. Conversion to gas-fired generation offers one strong possibility, as a combined cycle plant requires significantly less space than coal-fired structures spread over hundreds of acres. Today’s natural gas-fired combustion turbine power plants also convert fuel energy to electricity at a more efficient conversion rate than conventional, older coal-fired or natural gas-fired steam power plants, at less than 7,000 British thermal units per kilowatt-hour instead of greater than 10,000. And they do it with lower operating and maintenance costs.

Repowering a plant with gas-fired elements can make sense because so much critical infrastructure is already in place, including transmission lines, substations and water. Three options must be considered in retrofitting a decommissioned plant with newer, more efficient technology, Kopp says: “Can you retrofit existing equipment, either by

converting the boilers to burn gas or installing a combustion turbine in combined cycle with the existing steam turbine? Can you reuse the site by using all-new equipment and take advantage of existing infrastructure? Or do you abandon the site altogether and build elsewhere?”

Alternatively, the best use of a decommissioned coal-fired plant may lie in redevelopment of the site for some other commercial or industrial application — as determined by key factors during the study phase of the project. A site’s location near an urban center, its historic architecture, existing infrastructure and access to transportation networks all shape the potential for repurposing a complex.

Sarah Torres, a Burns & McDonnell senior analyst, spends a lot of time considering these scenarios. “There are so many factors that go into deciding whether or not it makes sense to pursue redevelopment on a site.

“That’s where we come in and ask, ‘What will the market bear?’ Not only what can this site support, but does it make sense for the city to acquire it and transition the space into something that will support its long-term goals for economic development like a jobs incubator? Or is it best to partner with the current owner of the site and pursue a dual redevelopment strategy?” she continues. “These are just some of the possibilities that can be explored. Helping guide decision-making is the potential return on investment for individual scenarios: the short-term economic stimulus from construction, as well as the longer-term benefits of repurposing that site for recruiting business to the community while serving as a catalyst to further development.”

For more information, contact Jeff Kopp, 816-822-4239, or Jeff Pope, 630-724-3328,

Demolition may be the most visible symbol of plant decommissioning. Yet it, too, requires a careful approach to removing the complete structure, all equipment and machinery, and auxiliaries such as pumps, piping, boilers, ductwork, fans and more while recovering and recycling valuable scrap.

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Project: Armed Forces Reserve CenterLocation: Bentonville, Ark.Client: Arkansas Army National Guard

As a shared facility between the Arkansas Army National Guard and U.S. Army Reserves, the new, energy-efficient $22 million, 109,957-square-foot Armed Forces Reserve Center (AFRC) in Bentonville, Ark., consolidates unit operations at four armories closed due to the Base Realignment and Closure Act of 2005. The Arkansas Army National Guard shares the readiness center assembly hall, classrooms, physical training and auditorium with the U.S. Army Reserves, while other areas of the facility are unique to their respective missions. Also on site is a separate unit storage building, a vehicle maintenance training building and a 20,500-square-yard, secured motor pool for vehicles including the multiple rocket launch system used by the 1st Battalion of the 142nd Field Artillery Regiment.

As the prime architectural and engineering design firm for the AFRC, Burns & McDonnell worked with the soldiers to design a facility that helped them fulfill their mission, respect the environment and honor their service.

Occupied by approximately 30 people during the week, the AFRC accommodates up to 500 on drill weekends. To maintain energy efficiency at both occupancy levels, Burns & McDonnell designed the AFRC in zones for full-time and drill-weekend areas, co-locating full-time operations so only certain areas needed air conditioning or heat during periods of lower occupancy. Natural lighting in spaces typically unoccupied during the week, such as the assembly hall and storage areas, allows further energy conservation.

Mission: Honor and Respect

Burns & McDonnell designed the AFRC to meet the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Silver certification level. Sustainable features also include efficient insulation; electrical and mechanical systems designed for variable occupancy levels; low-maintenance, high-durability interior finishes; and plumbing that reduces water consumption.

The highly functional layout features convenient access to family support and recruiting and retention offices from the front lobby. To aid in quick mobilization during an emergency, vehicle staging is adjacent to equipment loading.

To honor the unit’s military history, Burns & McDonnell incorporated red — the traditional color of the artillery branch — throughout the facility; a large mural sketched by one of the soldiers was placed in the break room; and display cases in the lobby to showcase unit awards, citations and recognitions. A memorial wall near the building features monuments relocated from the four closed armories and a reflection area with benches.

Construction on the AFRC began in October 2009 and concluded in March 2011 with a celebratory ribbon-cutting in November.

For more information, contact Amy Clement, 816-822-3153.

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Using the latest advances in power grid technology, Burns & McDonnell is helping develop the TresAmigas SuperStation (TASS), the first power transmission hub to link the country’s three primary electric grids and provide the smooth, reliable and efficient transfer of green power from region to region.

The superstation is planned on a 14,400-acre site near Clovis, N.M., in an area of some of the richest solar and wind renewable resources in the U.S. It will serve as a power exchange that facilitates the trading of electricity between interconnections. The exchange is being developedbyViridityandEPEXSPOT,aleadingdeveloperinEuropeanelectricmarkets.Phaseoneofconstructionisscheduledtobegininsummer 2012.

“This will be one of the most groundbreaking projects in power delivery in our generation,” says Jeff Greig, vice president and general manager of the Burns & McDonnell Business & Technology Services Group.

The superstation will incorporate a network of high-voltage direct current (HVDC) voltage source converters that will transmit and balance power loads between the three electric network systems. This connection will allow electric systems stretching from coast to coast to operate together, optimizing the use of renewable energy. The superstation is designed to improve power reliability and assist with voltage and stability issues associated with the intermittent generation of renewable energy sources such as wind and solar in the interconnections, says Kiah Harris, Burns & McDonnell principal.

Unfortunately, this concentration of wind and solar energy is located at the edge of the three electric grid regions that aren’t connected.

The sparse population and resulting low electrical load in the area makes it only able to use to use a fraction of the renewable energy. The technology being used in the superstation allows the efficient large scale transfer of energy to the areas where demand is able to absorb it.

The expected 5,000 megawatt (MW) initial build out of the TASS will provide enough renewable energy to serve more than 2.5 million homes. Analyses of wind and solar generation in New Mexico, Texas and Oklahoma show significant generic growth opportunites for the TASS.

When power flows into the superstation, it is channeled through an HVDC voltage source converter (VSC) terminal. The facility looks like a huge, but typical, alternating current substation with extra buildings for the VSC electronics. High-voltage power electronics inside the converter switch electricity between alternating current (AC) and direct current (DC). “The VSCs are similar to plug-and-play building blocks,” Harris says. “You can insert them as needed, increasing the transfer capability between grids.”

Ongoing expansion plans for the TASS include underground pipelines of direct current superconductor cables. These cables can carry 5 gigawatts of electricity through a wire with a diameter 100 times smaller than can be done with copper conductors, without any losses.

“TresAmigas allows energy to flow between the interconnections where there may be market benefits on a massive scale,” Harris says. “TASS will assist in the economic development of new renewable energy and transmission projects in the region.”

For more information, contact Kiah Harris, 816-822-3174.

Project: TresAmigas SuperStation Location: Clovis, N.M.

Client: TresAmigas LLC

Transferring Green Power Between Grids

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POWER AGESGeorgia Power Substation Relay Improvements Make Way for Smarter Energy Solutions

FOR THE

Background With a focus on bringing more reliable, efficient and affordable power to consumers, electric utilities have upgraded their networks, preparing them for additional upgrades that will make meeting these goals a reality.

Since 2009, the American Recovery and Reinvestment Act has been a catalyst pushing the Department of Energy’s (DOE) Smart Grid initiative forward by providing funding for improvements to many of the existing grid’s aging systems.

Those systems require that technology be updated at the most basic level, starting with replacing substation distribution feeder relays, so that a move to the Smart Grid is possible.

GeorgiaPower,oneoffouroperatingcompanies within Southern Company, is overhauling its entire network of substations in preparation for further Smart Grid improvements. Overall, Southern Company is using $165 million in stimulus funding through the DOE to pay for its substation relay upgrade efforts.

Tokick-startthiseffort,GeorgiaPower hired Burns & McDonnell and other firms to upgrade the facilities. To date, Burns & McDonnell has retrofitted more than 200 substations within the Georgia Powersystem.

“We are helping to build the backbone of the Smart Grid,” says Dotun Famakinwa, transmission and distribution project

manager in the Burns & McDonnell Atlanta office. “All of these projects are a tiny piece of the overall Smart Grid project.”

Many of the substations are decades old, making the timing right to use stimulus funding for modernization.

Challenges The size of the project is itself a challenge, but finding manpower to complete the project within the designated timeline is a substantive concern. “The schedule is very aggressive and the timeline is complex,” Famakinwa says. “We needed additional resources to finish the job on time.”

Engineers from several Burns & McDonnell regional offices were brought onto the project

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team to provide design services and conduct pre-engineering and pre-construction site visits to identify problems, potential scope increases and budget issues.

To complete the relay project, portions of the substations are taken out of operation in small sections and power is rerouted to avoid loss of service to customers. Typically, a project of this scope takes six to 10 years. The Georgia Powerrelayupgradesarescheduledtobecompleted in just over three years. Because stimulus funds are being used for the project, the timeline is firm.

Solution TheGeorgiaPowersubstationrelayproject improvements involve replacing existing electromechanical relays with new microprocessor-based relays at all substations within the utility’s network.

“The improved relays incorporate new technology enabling the utility to gather as much information as possible within central clearinghouses, providing more powerful data and enabling utilities to do more preventive maintenance, react more efficiently to outages and get power back on quicker,” Famakinwa says.

StevenCampbell,GeorgiaPower’sprotectionand control supervisor, says this project is about control and protection of the utility’s

assets, and enhancing the reliability and intelligence of the distribution system.

“This is where our intelligent distribution system comes into play,” he says. “These microprocessor-based relays are going to help us gather information that our trouble centers can then use to improve outage restoration. We also gain benefits from enhanced protection features and higher reliability and lower maintenance cost of our control systems going forward.”

Outcome The upgraded facilities provide the first step in improvements to Southern Company’s power grid that will pave the way for future upgrades to its overall power distribution system. As the distribution feeder project draws to a close, larger scale projects are getting started.

“We’re beginning to see much larger substation modernization projects that involve replacing the old electromechanical and older generation electronic relays, upgrading old battery systems and putting in newer communication systems,” says Oko Buckle, Burns & McDonnell’s transmission and distribution manager in the Southeast.

Buckle says the overall result is the convergence of information technology and the power system. “This project allows the

utility to communicate between devices, from one network to another,” he says. “The utility companies need to make sure their equipment and network have the capability and capacity to make the technology possible.”

With this new technology, the utility can detect some issues in advance, allowing them to address those issues more quickly, and ultimately provide greater security, reliability and efficiency.

The upgraded systems provide data about usage patterns, equipment condition and voltage levels that can help in planning maintenance intervals.

“The new technology provides preventive maintenance,”Bucklesays.“GeorgiaPowercanpinpoint when and where the system could fail before it happens. This yields minimized downtime and improved reliability.”

The upgraded systems also require less maintenance, resulting in cost savings. TheprojectputsGeorgiaPowerinapositionto move forward with its Smart Grid development. “This project is one piece of the puzzle in the overall Smart Grid equation,” Famakinwa says.

For more information, contact Oko Buckle, 770-510-4503.

A two-feeder retrofitted relay panel with Schweitzer SEL 351S relays. Each Schweitzer relay replaces the functions of the electromechanical relays pictured at left.

A single-feeder relay panel with electromechanical relays.

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New Water Security RegulationsUtilities Urged to Communicate with State Agencies, Federal Representatives Regarding Risk Reduction

Water and wastewater utilities may soon be subject to Chemical Facility Anti-Terrorism Standards (CFATS) or similar regulations.

Created by a congressional mandate in 2007, CFATS specifically exempted public water systems and water-treatment works. However, in early 2011, testimony before a Senate committee recommended eliminating those exemptions.

“Undersecretary Rand Beers of the National Protection&ProgramsDirectorateinthe U.S. Department of Homeland Security (DHS) testified for ending the exemption,” says R.J. Hope, department manager for Burns & McDonnell global security services. “Some legislators have also called for increased oversight of water and wastewater operations as a security measure.”

Under CFATS, any operation that possesses, or plans to possess, a quantity of chemicals determined to be dangerous or potentially dangerous must follow a defined compliance process. The process includes inventory, reporting, assessments and security plan requirements according to a tiered system. The trigger for the CFATS compliance process is possession of one or more of 322 listed chemicals of interest. Chlorine, commonly used in water and wastewater treatment, is one of the listed chemicals.

Utilities Will Bear Compliance Costs New regulations for water utilities are expected to be more narrowly focused than CFATS, with emphasis on regulating large-scale storage of a smaller number of chemicals. But compliance requirements could be similar for documentation, inspections, and security plan development and implementation. Nearly all utilities

would have to self-fund compliance activities, adding to the financial concerns of municipal departments strapped with costs to maintain or update aging systems.

DHS has estimated that submitting required CFATS information via its web-based interface tool takes up to 600 man-hours. That’s in addition to the time and expense involved in implementing security plans and documenting ongoing compliance.

Inherently Safer Technologies Reduce Risk According to Burns & McDonnell senior associate engineer Craig Koenig, some water utilities are taking a proactive approach. “Some have already been conducting assessments,” Koenig says. “Others are taking the next step and beginning to develop master plans for minimizing risk. This allows utilities to plan and budget over time rather than having to react to a regulatory deadline.”

Koenig says there are alternatives to maintaining large supplies of dangerous chemicals such as chlorine gas. Known as inherently safer technologies, or ISTs, these disinfection methods may include less-hazardous chemicals such as on-site generation of sodium hypochlorite, or non-chemical methods such as ultraviolet disinfection.

Input from Utilities Needed to Shape Regulations “We may not know the final form, but we do know that water security regulations are on the way,” Koenig says. “As regulations are developed, it’s important for utilities to give feedback to their state regulatory agencies and federal representatives on what steps would most effectively improve security and on the actions they are already taking to reduce risk.”

For more information, contact Craig Koenig, 816-822-3149, or R.J. Hope, 816-349-6754 .

Water utilities’ chlorine-gas storage facilities may become subject to the Chemical Facility Anti-Terrorism Standards compliance process.

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The Chocolate Room

For months, Burns & McDonnell designers and process engineers kept a tantalizing secret: Unilever planned to introduce its Magnum brand ice cream bar — the world’s most popular ice cream bar — to the United States. Europeans consume a staggering 1.3 billion Magnum bars a year, but most Americans had never heard of the brand.

A Magnum bar is a decadent portion of premium vanilla-bean ice cream thickly coated with real Belgian chocolate. There are double chocolate, white chocolate and other variations — all with the signature thick Belgian-chocolate coating. The publicity campaign for the U.S. launch would include glamorous, tongue-in-cheek videos directed by designer Karl Lagerfeld. But first, Unilever needed to fill the American distribution pipeline with product.

Unilever called on Burns & McDonnell to design and build modifications to an existing plant in Sikeston, Mo. The modifications involved adding a special chocolate room, piping and controls to support a proprietary process that enrobes the rich ice cream-on-a- stick (known in the industry as a premium stick novelty) in high-quality Belgian chocolate.

“The chocolate had to be kept within a narrow temperature range in the chocolate room

storage tanks and delivered to the process at a precise temperature,” says Burns & McDonnell engineer Randy Peterson,whomanagedtheproject.

Burns & McDonnell designers met the challenge with a system that keeps the chocolate constantly circulating through more than 2,000 feet of insulated, double-walled piping. The piping containing the chocolate is gently heated by hot water contained in the second piping wall.

A control system designed by Burns & McDonnell continually measures the temperature of the chocolate at the delivery point and sends signals for temperature adjustments at upstream points in order to consistently maintain the required delivery-point temperature. The use of insulated piping saves energy and helps with maintaining the proper temperature.

“Keeping the project a secret wasn’t really a problem for us,” Petersonsays.Wewereexcited about it, but we often work on projects that are confidential, so

Design-Build Team Meets The Belgian-Chocolate Challenge

for Frozen Confection

not discussing our work outside of the project team is pretty normal for us.”

Conceptual design began in March of 2010. In addition to fast-tracked design-build, Burns & McDonnell stayed on site to help coordinate installation and start-up of new processing equipment at the facility. By mid-October 2010, Magnum bars were being produced at the Sikeston facility and shipped to distribution points across the country. In early 2011, Unilever launched the Magnum brand in the U.S. and Canada.

“Demand for Magnum bars exceeded expectations,”Petersonsays.

But no worries, Magnum bar fans — Burns & McDonnell is continuing to help Unilever expand U.S. production of the popular treats.

For more information, contact Randy Peterson, 816-822-3576.

New 10,000-gallon tanks are lifted into place during construction of the chocolate storage room.