building new generation may11 2006 - michigan.gov · Sumitomo Corporation Owner Project Project...

May 11,2006 - 1

MMEA Presentation

Building New BaseloadGeneration in the Midwest

Black & Veatch May 11, 2006

May 11,2006 - 2

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

Process Steps for New Generation

Monte CarloAnalysis

SystemsAnalysis

Licensing /Permitting

Preliminary Schedules

PreliminaryCost

Estimates

ProjectSchedule

SystemDefinitions

ArrangementDrawings

DetailedCost

Estimates

CommercialConstructionStrategies

SoilsTesting

Conceptual Engineering

Feasibility / InitialEngineering

Feasibility / InitialEngineering

Conceptual / DefinitionEngineering

Conceptual / DefinitionEngineering Project ExecutionProject Execution

MarketAssessment

FeasibilityStudy

Plant Configuration

Study

SelectMajor

Equipment

EngineeringReview

ProcurementAssistance

ConstructionManagement

StartupAssistance

OperatorTraining

ProjectPlanning

& Controls

ProjectCompletion

Beyond

May 11,2006 - 3


U.S. Energy Market Signals Remain Favorable for New Coal-Fired Generation

Over 80 GW of Planned New

U.S. Coal Projects

Of the 16 Units Under Construction, We Are

Involved In 6

May 11,2006 - 4


Tri-StateSpringerville

400 MW

ManatowocUnit 963 MW

MidAmericanCB4

790 MW

XcelKing

600 MW

Santee Coop. Cross Unit 3

580 MW

WPSCWeston 4532 MW

Black Hills Wyg2 , Unit 4

90 MW

NewmontTS Plant200 MW

OPPDNC2

663 MW

WE EnergiesElm Road 1

615 MW

Santee Coop.Cross Unit 4

580 MW

CLECORodemacher

600 MW

EKPCSpurlock 4

278 MW

CWLP Dallman 34

201 MW

XcelComanche 3

750 MW

WE EnergiesElm Rd. 2615 MW

SunflowerHolcomb 2

600 MW

NAPGTwo Elk280 MW

CPS Spruce 2758 MW

LSPPlum Point 1

665 MW

KCP&LIatan Unit 2

750 MW

NRGBig Cajn. II, 4

675 MW

PeabodyPrairie St. 1

750 MW

TXUOakgrove850 MW

TXUSandow 5575 MW

EKPCJ.K. Smith 1

278 MW

BS II OwnersBig Stone II

600 MW

AECI Norborne 1

660 MW

Basin Elec.NE Wyoming

250 MW

LG&ETrimble Cty 2

732 MW

HG2 OwnersHugo Unit 2

750 MW

CUSSouthwest 2

275 MW

LSPTexas

600-800 MW

Sierra PacificWhite Pine

750 MW

LSPBlk Hwk Iowa

600 MW

LSPNevada

600-800 MW

Tri-StateHolcomb 3

600 MW

PPGAHastings 2

220 MW

SeminolePalatka 3750 MW

BPUNearmn Cr 2

235 MW

PeabodyPrairie St. 2

750 MW

JEA/FMPAN. Florida 800 MW

DominionSW VA Proj.

600 MW

UAMPs/PacifIntermt. 3950 MW

FPLFlorida Unit 1

850 MW

LSPGeorgia

600-800 MW

Tri-StateHolcomb 4

600 MW

WPSCBaseload II

530 MW

FPLFlorida Unit 2

850 MW

PacificorpHunter 4500 MW

Sierra PacificWhite Pine

750 MW

Tri-StateCO Coal Unit

656 MW

2006 2007 2008 2009 2010 2011 2012 2013 2014

Uni

ts

Under Construction Full NTP With Permits

LNTP, or NTP With Limit on Construction

Detailed Design Awarded, or EPC Award / LOI Without LNTP

Development & Permitting Work Awarded (Selected Basis)

U.S. Coal Projects

(Units and COD)

MDUHardin, Mont.

116 MW

May 11,2006 - 5


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 Support220 MWWhelan Energy Center 2PPGA

2011EpCM600 MWBig Stone IIBig Stone II Ownership Group

2011Conceptual Engineering / Cost Estimate1 x 130 MWAlaska Coal ProjectChugach Electric

Association, 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 PlantSumitomo Corporation

Scope CODProject SizeProjectOwner

May 11,2006 - 6


CWLP Dallman 34, Springfield, Illinois

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

May 11,2006 - 7



May 11,2006 - 8


New Generation Project Layout and Design Basis

May 11,2006 - 9


Site Plan

May 11,2006 - 10


Dallman Site

City Water Plant

Unit 3

Units 1 and 2 FGD

Unit 3 FGD and 1,2, and 3 Limestone and Dewatering

Units 1 and 2

Lakeside Plant

May 11,2006 - 11


Coal Pile

Existing Truck

unloading

Existing StockoutNew

Unit Stockout

New Transfer

Conveyor

New Unit Reclaim

and Conveyor

May 11,2006 - 12


Cooling Tower

Sound Wall

Drainage Trench

Sound and Plume Abated Cooling

Tower

Lake Springfield

May 11,2006 - 13


Overall AQCS

May 11,2006 - 14


City of Springfield 3-D Model

May 11,2006 - 15


Project Schedule

CWLP

Begin EPCSpec Prep / RFQ Responses Due

Select EPC Bidder Start Negotiations

Issue RFQStart Phase 1

EPC Contract Award

Engr

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

Receive Permit

-10

Permit Application Submitted

5

Start Construction

NTP Mobilization Start Site Modification

Receive EPC Bids

Issue EPC RFP

-11

Guaranteed Power

Delivery Sept 2009

-25 -24

Phase 1 Complete

Start Phase 2 Engr and Permitting

May 11,2006 - 16


Actual U.S. Coal Plant Construction Schedules

0 10 20 30 40 50 60 70Months

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

May 11,2006 - 17


76

52

68 72

01020304050607080

April 2004 October2004

April 2005 January2006

Wee

ksMarket and Sourcing Example –Pipe Material to Fabricator Lead Times

Significant Factor in Project Schedules

May 11,2006 - 18


20 to 24

161616

0

5

10

15

20

25

30

2003 2004 2005 2006

Wee

ksMarket and Sourcing Example –Total Structural Steel Mill Order Lead Times


Mill Order Times:• 2003 to 2005 = 8 Wks• 2006 = 12 to 16 Wks

May 11,2006 - 19


0

5

10

15

20

25

30

Dec 2003 May 2005 Sep 2005 January 2006

Mon

ths

Market and Sourcing Example –Steam Turbine Lead Times


1820 20

22-24

May 11,2006 - 20


Escalation Summary – Market and Sourcing

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

AQCS Equipment Extremely Tight Market Due to Ongoing 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

May 11,2006 - 21


300

350

400

450

500

550

600

650

700

Jan '

04

Dec '0

4

Jan '

05

Dec '0

5

Jan '

06

Month

$ / T

on

Total Mill Price

Escalation Example – Steel

36% Increase

May 11,2006 - 22


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*$30.73Electricians6.4%$36.93$34.83$32.73Pipefitter

7.4%$28.80$26.95$25.10Ironworker6.2%$33.70$31.85$30.00Millwright

5.3%$31.06*$29.56$28.06Operators

2007 RateAnnual

Escalation Rate

2006 Rate2005 RateCraft

*Future Estimate

May 11,2006 - 23


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)

May 11,2006 - 24


Equipment Suppliers – Boilers

Alstom Power

Babcock & Wilcox

Foster Wheeler

Babcock Power

IHI, Inc.

Mitsubishi Power

Mitsui Babcock

Babcock Hitachi

Domestic Based International Based

May 11,2006 - 25


Equipment Suppliers – STGs

Alstom Power

General Electric

Mitsubishi Power

Siemens Westinghouse

Toshiba

Hitachi

Fuji

May 11,2006 - 26


Equipment Suppliers – FGD, Fabric Filters and Electrostatic Precipitators

XMarsulex

XAdvaTech (MHI & URS)

XXXXXWheelabrator

XHitachi

XXXHamon RC

XChiyoda

XXXXXBabcock & Wilcox

XXBabcock Power

XXXXXAlstom Power

Wet ESPDry ESPFFWet FGDDry FGD

May 11,2006 - 29



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