building new generation may11_2006

7/29/2019 Building New Generation May11_2006

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MMEA Presentation

Building New Baseload

Generation in the Midwest

Black & Veatch

May 11, 2006


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Confidential information. Copyright Black & Veatch Corporation, 2005. All rights reserved.

Process Steps for New Generation

Monte CarloAnalysis

SystemsAnalysis

Licensing /Permitting

PreliminarySchedules

PreliminaryCost

Estimates

ProjectSchedule

SystemDefinitions

ArrangementDrawings

DetailedCost

Estimates

CommercialConstructionStrategies

SoilsTesting

ConceptualEngineering

Feasibili ty / Init ialEngineering

Feasibili ty / InitialEngineering

Conceptual / DefinitionEngineering

Conceptual / DefinitionEngineering

Project ExecutionProject Execution

MarketAssessment

FeasibilityStudy

PlantConfiguration

Study

SelectMajor

Equipment

EngineeringReview

ProcurementAssistance

ConstructionManagement

StartupAssistance

OperatorTraining

ProjectPlanning

& Controls

ProjectCompletion

Beyond


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U.S. Energy Market Signals Remain

Favorable for New Coal-Fired Generation

Over 80 GW of

Planned New

U.S. CoalProjects

Of the 16 Units Under

Construction, We Are

Involved In 6


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Tri-State

Springerville

400 MW

Manatowoc

Unit 9

63 MW

MidAmerican

CB4

790 MW

Xcel

King

600 MW

Santee Coop.

Cross Unit 3580 MW

WPSC

Weston 4

532 MW

Black Hills

Wyg2 , Unit 4

90 MW

Newmont

TS Plant200 MW

OPPD

NC2

663 MW

WE Energies

Elm Road 1

615 MW

Santee Coop.

Cross Unit 4580 MW

CLECO

Rodemacher

600 MW

EKPC

Spurlock 4

278 MW

CWLP

Dallman 34

201 MW

Xcel

Comanche 3

750 MW

WE Energies

Elm Rd. 2

615 MW

Sunflower

Holcomb 2600 MW

NAPG

Two Elk

280 MW

CPS

Spruce 2

758 MW

LSP

Plum Point 1

665 MW

KCP&L

Iatan Unit 2

750 MW

NRGBig Cajn. II, 4

675 MW

Peabody

Prairie St. 1

750 MW

TXU

Oakgrove

850 MW

TXU

Sandow 5575 MW

EKPC

J.K. Smith 1

278 MW

BS II Owners

Big Stone II

600 MW

AECI

Norborne 1

660 MW

Basin Elec.

NE Wyoming250 MW

LG&E

Trimble Cty 2

732 MW

HG2 Owners

Hugo Unit 2

750 MW

CUS

Southwest 2

275 MW

LSP

Texas

600-800 MW

Sierra PacificWhite Pine

750 MW

LSP

Blk Hwk Iowa

600 MW

LSP

Nevada

600-800 MW

Tri-State

Holcomb 3600 MW

PPGA

Hastings 2

220 MW

Seminole

Palatka 3

750 MW

BPU

Nearmn Cr 2235 MW

Peabody

Prairie St. 2

750 MW

JEA/FMPA

N. Florida

800 MW

Dominion

SW VA Proj.

600 MW

UAMPs/Pacif

Intermt. 3

950 MW

FPLFlorida Unit 1

850 MW

LSP

Georgia

600-800 MW

Tri-State

Holcomb 4

600 MW

WPSC

Baseload II

530 MW

FPL

Florida Unit 2

850 MW

Pacificorp

Hunter 4500 MW

Sierra Pacific

White Pine

750 MW

Tri-State

CO Coal Unit

656 MW

2006 2007 2008 2009 2010 2011 2012 2013 2014

Units

Under Construction

Full NTP With Permits

LNTP, or NTP With Limit onConstruction

Detailed Design Awarded, orEPC Award / LOI WithoutLNTP

Development & PermittingWork Awarded(Selected Basis)

U.S. CoalProjects

(Units and COD)

MDU

Hardin, Mont.116 MW


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Black & Veatch Current Coal Projects

2010EPC665 MWPlum Point Energy StationLS Power

2006OE2 x 300 MWPrimadaya (PT S2P)PT Sumber Segara

2009EPC201 MWDallman Unit 34CWLP

2012Conceptual Design /Permitting Support

220 MWWhelan Energy Center 2PPGA

2011EpCM600 MWBig Stone IIBig Stone II OwnershipGroup

2011Conceptual Engineering /

Cost Estimate1 x 130 MWAlaska Coal Project

Chugach ElectricAssociation, Inc.

2008OE / P1 x 90 MWWygen 2 Unit 4Black Hills Energy

2010EPC758 MWJ.K. Spruce Unit 2CPS

2009EPC663 MWNebraska City Unit 2OPPD

2008Ep, Field Engr., SU532 MWWeston Unit 4WPSC

2007Ep2 x 250 MWBhilai, IndiaBESCL

2007Ep600 MWKing Rehabilitation ProjectXcel Energy

2006EP2 x 660 MWTanjung Jati BPower Plant

Sumitomo Corporation

Scope CODProject SizeProjectOwner


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CWLP Dallman 34, Springfield, Ill inois

201 MW PC Subcritical Unit

Designed to Burn High

Sulfur Illinois Coals

Contract Signed:October 3, 2005

B&V Role: EP

KIC Role: C

EPC JV: KIC and B&V

FW Boiler, Toshiba Turbine

Generator

FF, Wet FGD, Wet ESP

Scheduled Completion:September 2009


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New Generation Project Layout and Design Basis


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Site Plan


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Dallman Site

CityWaterPlant

Unit 3

Units 1and 2

FGDUnit 3 FGD and 1,2,

and 3 Limestoneand Dewatering

Units 1and 2

LakesidePlant


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Coal Pile

Existing

Truckunloading

ExistingStockoutNew

UnitStockout

NewTransferConveyor

New UnitReclaim

andConveyor


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Cooling Tower

SoundWall

DrainageTrench

Sound and PlumeAbated Cooling

Tower

LakeSpringfield


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Overall AQCS


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City of Springfield 3-D Model


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Project Schedule

CWLP

Begin EPCSpec Prep / RFQ

Responses Due

Select EPC BidderStart Negotiations

Issue RFQStartPhase 1

EPCContract

AwardEngr

-38 -16 -15 -5 -4 -2 0 47

ReceivePermit

-10

Permit ApplicationSubmitted

5

StartConstruction

NTP Mobilization StartSite Modification

ReceiveEPCBids

IssueEPC RFP

-11

GuaranteedPower

Delivery Sept2009

-25 -24

Phase 1Complete

Start Phase 2Engr andPermitting


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Actual U.S. Coal Plant

Construction Schedules

0 10 20 30 40 50 60 70

Months

600 700 MW

250 400 MW

5858

5050

3737

4444

425 500 MW

100 200 MW

75 100 MW

3737

4646

4040

3434

4040

2828


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76

52

68

72

0

10

20

30

40

50

60

70

80

April 2004 October

2004

April 2005 January

2006

Wee

ks

Market and Sourcing Example

Pipe Material to Fabricator Lead Times

Significant Factor in Project Schedules


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20 to 24

161616

0

5

10

15

20

25

30

2003 2004 2005 2006

Weeks


Total Structural Steel Mill Order Lead Times


Mill Order Times:

2003 to 2005 = 8 Wks 2006 = 12 to 16 Wks


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0

5

10

15

20

25

30

Dec 2003 May 2005 Sep 2005 January 2006

Months


Steam Turbine Lead Times


1820 20

22-24


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Escalation Summary Market and Sourcing

Price Escalation on Commodities Such as Steel,Copper and Alloy Have Driven Prices and LeadTimes Up Dramatically

AQCS Equipment Extremely Tight Market Due toOngoing Retrofit Work (30% Materials Required)

Boiler Prices Increasing (30% Materials Required)

The E&C Industry Is Also Tight With a

Limited Number of Capable Players

Increasing Coal Plant Costs


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300

350

400

450

500

550

600

650

700

Jan'04

Dec

'04

Jan'05

Dec

'05

Jan'06

Month

$/Ton

Total Mill Price

Escalation Example Steel

36%

Increase


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Escalation LaborAs-Stated Escalation Rates for Midwest Coal Project

6.1%$21.90*$20.70$19.50Laborers

5.2%$30.10$28.60$27.80Boilermaker

7.2%$29.35$27.50$25.65Carpenter

6.2%Average

6.0%$34.43*$32.58*$30.73Electricians

6.4%$36.93$34.83$32.73Pipefitter

7.4%$28.80$26.95$25.10Ironworker

6.2%$33.70$31.85$30.00Millwright

5.3%$31.06*$29.56$28.06Operators

2007 Rate

Annual

Escalation

Rate

2006 Rate2005 RateCraft

*Future Estimate


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Total Craft Labor Full Time Equivalents

(FTEs)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Year

FTE's

Based on

U.S. Coal

Projects Slide(Units and COD)


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Equipment Suppliers Boilers

Alstom Power

Babcock & Wilcox

Foster Wheeler

Babcock Power

IHI, Inc.

Mitsubishi Power

Mitsui Babcock

Babcock Hitachi

Domestic Based International Based


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Equipment Suppliers STGs

Alstom Power

General Electric

Mitsubishi Power

Siemens Westinghouse

Toshiba

Hitachi

Fuji


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Equipment Suppliers FGD, Fabric Filters

and Electrostatic Precipitators

XMarsulex

XAdvaTech (MHI & URS)

XXXXXWheelabrator

XHitachi

XXXHamon RCXChiyoda

XXXXXBabcock & Wilcox

XXBabcock Power

XXXXXAlstom Power

Wet ESPDry ESPFFWet FGDDry FGD


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