The Coushatta Tribe, in coordination with Meyer & Associates, Inc.
(Meyer), is investigating the potential development of a petroleum coke-fired generating facility,
proposed to be located in central Louisiana. In this regard, ERG was retained to conduct several
aspects of the feasibility study. In particular, members of ERG developed the load definition for
the proposed project by identifying and modeling the aggregate load profile of potential wholesale municipal
electric system purchasers of the project’s output. Based upon this information an analysis of alternative
plan configurations was performed. ERG was also responsible for developing a conceptual project capital
cost estimate, and an investigation of the availability of adequate transmission capacity required to deliver the
project’s output to ultimate purchasers and alternatives for the provision of associated ancillary services.
Since 1983 ERG has been retained to perform annual
operations reviews and semi-annuls inspections of a 520 MW pulverized coal unit operated by CLECO in central Louisiana. In the performance of
the annual consulting engineers report, ERG performs on-site inspections of the facility, conducts interviews with key plant
staff, reviews operations and maintenance records, assesses capital improvement plans, and reviews compliance with environmental permits.
Additionally, the review includes a financial survey of the use of funds related to the project. The report is filed with the bond trustee to
provide independent assurance that the facility is being operated and maintained in a prudent manner and that all of the bond covenants, agreements,
and conditions related to the bond issuance have been satisfied.
DIRECT WATER HEATER CONTROL LOAD MANAGEMENT STUDY
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For the Western Farmers Electric Cooperative, Inc., Oklahoma, a member of the
Firm performed a comprehensive load management which analyzed the direct control of residential water heater load during peak periods. Various daily load
profiles with related costs were examined during the peak season to assess the target periods for shifting peak load. A model was constructed to vary the
amounts and duration of load controlled and estimate the recovery energy effect from the water heaters on load profiles. In conjunction with this engagement,
various load management scenarios were evaluated including production cost savings, costs of the equipment and program implementation, and customer reaction to the project.
A member of ERG participated in a study for the
City of Richland, Washington’s Energy Services Department which investigated the feasibility of acquiring ownership of and conversion of the
U.S. Department of Energy’s (“USDOE”) Fast Flux Test Facility Nuclear Research Reactor (“FFTF”) located on USDOE’s Hanford Reservation to
commercial use. The study focused on technical issues related to adapting the facility for power generation, licensing requirements, and
development of necessary transmission additions to support the project. In conjunction with the engagement, an economic/financial analysis
of the project was also performed.
A member of the Firm served as the primary consultant to the Guam
Power Authority (GPA) and U.S. Navy Public Works Center concerning the performance of a study investigating the feasibility of re-powering
the Navy’s PITI Station Units 4 and 5 as combined cycle units. The following services were provided: determination of the remaining life of
existing boilers and steam turbine generators; investigation of the feasibility of converting the units to combined cycle operation; development
of capital cost estimates; development of operating and maintenance costs; development of a construction schedule; coordination with GPA in
performance of long range supply-side planning studies; and, comparison of the project to other supply-side alternatives. A report was prepared
concerning the results of the reviews undertaken for presentation to both to the GPA and U.S. Navy concerning the project.
A member of the Firm served as the primary consultant for Indosuez Australia, Ltd.,
Sydney, concerning its provision of financing regarding the development of the Victoria Hospitals Cogeneration Project. The Project consisted of the
development of combustion turbine based cogeneration systems for five hospitals located in Melbourne, Australia. Reviews were performed concerning hospital
steam loads and power requirements; proposed steam sale and power sale agreements; proposed retrofit plans for existing hospital steam supply and power distribution
systems; proposed combustion turbine/ waste heat boiler systems; proposed project capital costs, project annual costs and revenue projections; project environmental
and regulatory permitting requirements; and, project scheduling. A confidential Consulting Engineer’s Report for submission to project lenders and equity participants
was prepared in conjunction with the engagement.
INDEPENDENT REVIEW OF DEMAND AND SUPPLY PLANS
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While not a holding company under SEC regulations, PacifiCorp operated
in a six state multi-jurisdictional area and, subsequent to its merger with Utah Power, operated a Utah Power division and a Pacific Power division
as well as an unregulated subsidiary Inner PacifiCorp, Inc. On behalf of a Fortune 50 corporate client, a member of the Firm reviewed and analyzed
PacifiCorp’s multi-jurisdictional six state rate proposal and reviewed and provided an analysis of its short and long term demand and supply side plans.
In addition, ERG assisted the client in the development of a competitive selection process for the selection of electric utility providers and in the
operation and maintenance of production and transmission facilities.
LAKE LIVINGSTON HYDROELECTRIC PROJECT DEVELOPMENT
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For the Lone Star Municipal Power Agency (LSMPA) and the City of College Station,
Texas, a member of the Firm provided assistance regarding the initial development of the Lake Livingston Hydroelectric Project and was responsible for negotiating
the Project and Power Sales Agreements on behalf of LSMPA and the project sponsor, the Trinity River Authority. A member of the Firm also acted as Project Manager
concerning the development and filing of an Application for a Major License concerning the project before the FERC, as well as representation of LSMPA before the
FERC and other federal and state agencies regarding the acquisition of required project approvals.
For the Guam Power Authority (GPA), a member of the Firm was responsible for the development
of long range resource plans leading to GPA’s commitment to construct a new base load low speed diesel generating station and several combustion turbine based peaking
and combined cycle intermediate plant additions. A member of the Firm was involved in recommending changes to the Island Wide Power System Agreement (IWPS) between GPA
and the U.S. Navy relative to cost allocation and joint dispatch of IWPS units.
The Louisiana Energy & Power Authority (LEPA) is a Joint
Action Agency with eighteen Louisiana municipal electric system members. ERG is presently involved in providing
assistance to LEPA in acquiring long term power supply resources either through power purchase agreements with third
party suppliers or the development of new LEPA generating resources designed to meet the future load requirements of
its member electric systems. In this regard, ERG has been involved in a number of multi-track tasks, including
the optimization of the mix of resources required to provide for economic long term power supply resources to LEPA
members, the development and management of an RFP process for power purchases, and negotiation power purchase agreements
with the recommended wholesale provider. In support of determining the deliverability of proposed power purchases across
the Southwest Power Pool and Entergy transmission grids, ERG participated in LEPA’s submission of transmission service
requests (TSR) to Entergy’s Independent Coordinator of Transmission (ICT) and performed independent review of Entergy’s
loadflow studies performed in response to LEPA’s TSRs. In relation to the development of new generating resources, ERG
has been involved in determining the optimal project sizing and configuration, development of project capital cost estimates,
and performance of economic/financial analyses of the alternatives leading to the development of a cost allocation structure
for LEPA’s members. In addition, ERG has played a key role in the performance and analysis of numerous studies
performed to investigate the siting and sizing of proposed generating facilities aimed at reducing area transmission constraints
and insuring deliverability of power to LEPA’s member electric systems.
For the Electric Power Research Institute (EPRI), a member of the Firm participated in a detailed study to model the energy use of residential
water heaters as part of an EPRI research project. Working with a consultant team that included Associated Edison Illuminating Companies (AEIC)
Load Research Committee members from several large utilities, the project encompassed the development of a physical model as well as a model of
the customer use characteristics. Multiple sites were selected, and variations on the equipment, installation specifics, and configuration of
the dwellings were tested and incorporated in the physical model. Hourly data collected from interval metering was processed with demographic data
to model the customer use characteristics in conjunction with the physical model.
Members of the Firm provided consulting assistance to the
Greenville Utilities Commission, North Carolina (GUC) concerning feasibility investigations of two potential cogeneration projects.
The overall goal of the studies was to determine if the development of a cogeneration project by GUC could be utilized to reduce its
purchased power supply costs. An initial “Fatal Flaw” investigation was undertaken concerning the potential installation of a combustion
turbine based co-generation facility to provide the steam heating requirements of East Carolina University’s (ECU) main campus. For this
investigation, the installation of a combustion turbine rated 8.55 MW in combination with an unfired heat recovery steam generator (HRSG)
rated for delivery of 44,000 lbs/per hour steam. Study results indicated that the benefit of such an installation to GUC would be marginal
due to ECU’s thermal load profile.
As a separate investigation, the preliminary feasibility of installing
eleven different combinations of closed-cycle and combined-cycle combustion turbine units to meet the steam heating and cooling requirements
of the ECU Medical School and Pitt County Memorial Hospital (PCMH) was analyzed. As one aspect of this study, ERG developed
potential joint venture project business and operations structures for the project. Study results indicated that the installation of two
combustion turbines each rated 6.2 MW with unfired HRSG’s and steam absorption chillers would potentially provide savings of approximately
$2 million annually in power purchase cost to GUC and would reduce the heating and cooling costs of the ECU Medical School and PCMH by approximately
$1 million annually while maintaining the proposed project in full compliance with federal Qualified Facility criteria. A follow-on comprehensive
study was accomplished to: develop a detailed conceptual project design; resolve siting issues and investigate state and federal regulatory requirements;
develop a project implementation schedule and to perform detailed economic/financial analyses relative to several alternatives for splitting the
savings between project participants.
ERG
completed a power supply study performed for a joint
action agency consisting of 18 municipal utilities located
in the Southeastern U.S. The study assessed the viability of
repowering aging gas-fired conventional boilers at 6 municipal
power facilities, and compared potential combined-cycle repowering
opportunities, with new greenfield power plant development,
and merchant power offers.
Seventeen units
at six sites were identified as candidates for repowering. The
units ranged in size from a low of 5 MW to a high of 41 MW, and
in age from 27 years to 40 years. As part of the analysis, ERG
staff visited and reviewed the selected facilities, assessed
the candidate equipment, and developed estimated cost and performance
parameters for each of the repowering options.
In addition
to assessing the technical feasibility of the repowering options,
and in order to compare the repowering opportunities with competing
alternatives, ERG performed a system wide economic analysis.
The analysis involved forecasting member utilities loads and
fuel prices, and forecasting the availability of, and prices
for wholesale market power. As part of the study, the utilities
existing generating system was modeled for comparison to potential
supply-side options. Total production costs for the system were
developed and compared under various operating and capacity expansion
scenarios. Study results
are being used by the agency in support of its future supply
decision making.

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