PNM SJGS BART Analysis - Cost Analysis (Draft)

Technology: SNCR/SCR Hybrid - SJGS Unit 1 Date: 7/11/2007

Cost Item $ Remarks/Cost Basis

CAPITAL COST

Direct Costs

Purchased equipment costs

Hybrid system scope: $15,753,000 B&V cost development from vendor quote

Reagent delivery system

Wall injectors and multiple nozzle lances

Automatic injector and lance retract system

Flue gas temperature, NOx monitors

Reagent storage tank

Single layer catalyst SCR system

Ductwork modifications

Electrical system upgrades $378,000 Actual price from similarly sized unit, escalated to 2007 dollars

Instrumentation and control system $279,000 Actual price from similarly sized unit, escalated to 2007 dollars

Subtotal capital cost (CC) $16,410,000

Gross Receipt Tax $1,015,000 (CC) X 6.2%

Freight $821,000 (CC) X 5.0%

Total purchased equipment cost (PEC) $18,246,000

Direct installation costs

Foundation & supports $3,649,000 (PEC) X 20.0%

Handling & erection $5,474,000 (PEC) X 30.0%

Electrical $2,737,000 (PEC) X 15.0%

Piping $456,000 (PEC) X 2.5%

Insulation $1,825,000 (PEC) X 10.0%

Painting $182,000 (PEC) X 1.0%

Demolition $1,825,000 (PEC) X 10.0%

Relocation $912,000 (PEC) X 5.0%

Total direct installation costs (DIC) $17,060,000

Air preheater modifications $1,071,000 Scaled from a B&V project based unit size, using 0.7 scale factor

Balanced draft conversion $13,366,000 Adjusted from a B&V balanced draft conversion project based on differences in scope

Site preparation $1,000,000 Contingency for site unknowns, such as underground utilities

Buildings $200,000 Contingency for general site building requirements

Total direct costs (DC) = (PEC) + (DIC) $50,943,000

Indirect Costs

Engineering $3,566,000 (DC) X 7.0%

Owner's cost $2,547,000 (DC) X 5.0%

Construction management $5,094,000 (DC) X 10.0%

Construction indirect $11,222,000 B&V labor market review

Start-up and spare parts $1,528,000 (DC) X 3.0%

Performance test $509,000 (DC) X 1.0%

Contingencies $10,189,000 (DC) X 20.0%

Total indirect costs (IC) $34,655,000

Interest During Construction (IDC) $3,171,000 [(DC)+(IC)] X 7.41% 1 years (project time length X 1/2)

Loss Generation during Outage (GEN) $15,667,000 5 weeks and 0.06095 $/kWh 12 weeks required for BDC, 

7 weeks major outage available

Total Capital Investment (TCI) = (DC) + (IC) + (GEN) $104,436,000

ANNUAL COST

Direct Annual Costs

Fixed annual costs

Operating labor $125,000 1 FTE and 124,862 $/year Estimated manpower level

Maintenance labor & materials $1,528,000 (DC) X 3.0%

Total fixed annual costs $1,653,000

Variable annual costs

Urea $1,703,000 1,089 lb/hr and 420 $/ton Engineering estimate

Water $1,762,000 252 gpm and 15.67 $/1,000 gal Engineering estimate

Catalyst replacement $215,000 33 m3 and 6,500 $/m3 2 yr catalyst replacement rate

Auxiliary power $32,000 70 kW and 0.06095 $/kWh Engineering estimate

ID fan power $670,000 1,477 kW and 0.06095 $/kWh Engineering estimate

Total variable annual costs $4,382,000

Total direct annual costs (DAC) $6,035,000

Indirect Annual Costs

Cost for capital recovery $10,172,000 (TCI) X 9.74% CRF at 7.41% interest & 20 year life

Total indirect annual costs (IDAC) $10,172,000

Total Annual Cost (TAC) = (DAC) + (IDAC) $16,207,000
PNM SJGS BART Analysis - Cost Analysis (Draft)

Technology: SNCR/SCR Hybrid - SJGS Unit 2 Date: 7/11/2007

Cost Item $ Remarks/Cost Basis

CAPITAL COST

Direct Costs

Purchased equipment costs

Hybrid system scope: $15,753,000 B&V cost development from vendor quote

Reagent delivery system

Wall injectors and multiple nozzle lances

Automatic injector and lance retract system

Flue gas temperature, NOx monitors

Reagent storage tank

Single layer catalyst SCR system

Ductwork modifications

Electrical system upgrades $372,000 Actual price from similarly sized unit, escalated to 2007 dollars

Instrumentation and control system $278,000 Actual price from similarly sized unit, escalated to 2007 dollars

Subtotal capital cost (CC) $16,403,000

Gross Receipt Tax $1,015,000 (CC) X 6.2%

Freight $820,000 (CC) X 5.0%

Total purchased equipment cost (PEC) $18,238,000

Direct installation costs

Foundation & supports $3,648,000 (PEC) X 20.0%

Handling & erection $7,295,000 (PEC) X 40.0%

Electrical $2,736,000 (PEC) X 15.0%

Piping $456,000 (PEC) X 2.5%

Insulation $1,824,000 (PEC) X 10.0%

Painting $182,000 (PEC) X 1.0%

Demolition $1,824,000 (PEC) X 10.0%

Relocation $912,000 (PEC) X 5.0%

Total direct installation costs (DIC) $18,877,000

Air preheater modifications $1,071,000 Scaled from a B&V project based unit size, using 0.7 scale factor

Balanced draft conversion $13,366,000 Adjusted from a B&V balanced draft conversion project based on differences in scope

Site preparation $1,000,000 Contingency for site unknowns, such as underground utilities

Buildings $200,000 Contingency for general site building requirements

Total direct costs (DC) = (PEC) + (DIC) $52,752,000

Indirect Costs

Engineering $3,693,000 (DC) X 7.0%

Owner's cost $2,638,000 (DC) X 5.0%

Construction management $5,275,000 (DC) X 10.0%

Construction indirect $13,041,000 B&V labor market review

Start-up and spare parts $1,583,000 (DC) X 3.0%

Performance test $528,000 (DC) X 1.0%

Contingencies $10,550,000 (DC) X 20.0%

Total indirect costs (IC) $37,308,000

Interest During Construction (IDC) $3,337,000 [(DC)+(IC)] X 7.41% 1 years (project time length X 1/2)

Loss Generation during Outage (GEN) $15,231,000 5 weeks and 0.06095 $/kWh 12 weeks required for BDC, 

7 weeks major outage available

Total Capital Investment (TCI) = (DC) + (IC) + (GEN) $108,628,000

ANNUAL COST

Direct Annual Costs

Fixed annual costs

Operating labor $125,000 1 FTE and 124,862 $/year Estimated manpower level

Maintenance labor & materials $1,583,000 (DC) X 3.0%

Total fixed annual costs $1,708,000

Variable annual costs

Urea $1,703,000 1,089 lb/hr and 420 $/ton Engineering estimate

Water $1,762,000 252 gpm and 15.67 $/1,000 gal Engineering estimate

Catalyst replacement $215,000 33 m3 and 6,500 $/m3 2 yr catalyst replacement rate

Auxiliary power $32,000 70 kW and 0.06095 $/kWh Engineering estimate

ID fan power $670,000 1,477 kW and 0.06095 $/kWh Engineering estimate

Total variable annual costs $4,382,000

Total direct annual costs (DAC) $6,090,000

Indirect Annual Costs

Cost for capital recovery $10,580,000 (TCI) X 9.74% CRF at 7.41% interest & 20 year life

Total indirect annual costs (IDAC) $10,580,000

Total Annual Cost (TAC) = (DAC) + (IDAC) $16,670,000
PNM SJGS BART Analysis - Cost Analysis (Draft)

Technology: SNCR/SCR Hybrid - SJGS Unit 3 Date: 7/11/2007

Cost Item $ Remarks/Cost Basis

CAPITAL COST

Direct Costs

Purchased equipment costs

Hybrid system scope: $23,680,000 B&V cost development from vendor quote

Reagent delivery system

Wall injectors and multiple nozzle lances

Automatic injector and lance retract system

Flue gas temperature, NOx monitors

Reagent storage tank

Single layer catalyst SCR system

Ductwork modifications

Electrical system upgrades $484,000 Actual price from similarly sized unit, escalated to 2007 dollars

Instrumentation and control system $291,000 Actual price from similarly sized unit, escalated to 2007 dollars

Subtotal capital cost (CC) $24,455,000

Gross Receipt Tax $1,513,000 (CC) X 6.2%

Freight $1,223,000 (CC) X 5.0%

Total purchased equipment cost (PEC) $27,191,000

Direct installation costs

Foundation & supports $5,438,000 (PEC) X 20.0%

Handling & erection $10,876,000 (PEC) X 40.0%

Electrical $4,079,000 (PEC) X 15.0%

Piping $680,000 (PEC) X 2.5%

Insulation $2,719,000 (PEC) X 10.0%

Painting $272,000 (PEC) X 1.0%

Demolition $2,719,000 (PEC) X 10.0%

Relocation $1,360,000 (PEC) X 5.0%

Total direct installation costs (DIC) $28,143,000

Air preheater modifications $8,685,000 Based on a budgetary quote received for the project

Balanced draft conversion $17,122,000 Adjusted from a B&V balanced draft conversion project based on differences in scope

Site preparation $1,000,000 Contingency for site unknowns, such as underground utilities

Buildings $200,000 Contingency for general site building requirements

Total direct costs (DC) = (PEC) + (DIC) $82,341,000

Indirect Costs

Engineering $5,764,000 (DC) X 7.0%

Owner's cost $4,117,000 (DC) X 5.0%

Construction management $8,234,000 (DC) X 10.0%

Construction indirect $19,442,000 B&V labor market review

Start-up and spare parts $2,470,000 (DC) X 3.0%

Performance test $823,000 (DC) X 1.0%

Contingencies $16,468,000 (DC) X 20.0%

Total indirect costs (IC) $57,318,000

Interest During Construction (IDC) $5,174,000 [(DC)+(IC)] X 7.41% 1 years (project time length X 1/2)

Loss Generation during Outage (GEN) $23,674,000 5 weeks and 0.06095 $/kWh 12 weeks required for BDC, 

7 weeks major outage available

Total Capital Investment (TCI) = (DC) + (IC) + (GEN) $168,507,000

ANNUAL COST

Direct Annual Costs

Fixed annual costs

Operating labor $125,000 1 FTE and 124,862 $/year Estimated manpower level

Maintenance labor & materials $2,470,000 (DC) X 3.0%

Total fixed annual costs $2,595,000

Variable annual costs

Urea $2,641,000 1,689 lb/hr and 420 $/ton Engineering estimate

Water $2,658,000 380 gpm and 15.67 $/1,000 gal Engineering estimate

Catalyst replacement $270,000 42 m3 and 6,500 $/m3 2 yr catalyst replacement rate

Auxiliary power $32,000 70 kW and 0.06095 $/kWh Engineering estimate

ID fan power $997,000 2,197 kW and 0.06095 $/kWh Engineering estimate

Total variable annual costs $6,598,000

Total direct annual costs (DAC) $9,193,000

Indirect Annual Costs

Cost for capital recovery $16,413,000 (TCI) X 9.74% CRF at 7.41% interest & 20 year life

Total indirect annual costs (IDAC) $16,413,000

Total Annual Cost (TAC) = (DAC) + (IDAC) $25,606,000
PNM SJGS BART Analysis - Cost Analysis (Draft)

Technology: SNCR/SCR Hybrid - SJGS Unit 4 Date: 7/11/2007

Cost Item $ Remarks/Cost Basis

CAPITAL COST

Direct Costs

Purchased equipment costs

Hybrid system scope: $23,680,000 B&V cost development from vendor quote

Reagent delivery system

Wall injectors and multiple nozzle lances

Automatic injector and lance retract system

Flue gas temperature, NOx monitors

Reagent storage tank

Single layer catalyst SCR system

Ductwork modifications

Electrical system upgrades $484,000 Similar scope to SCR modifications

Instrumentation and control system $291,000 Similar scope to SCR modifications

Subtotal capital cost (CC) $24,455,000

Gross Receipt Tax $1,513,000 (CC) X 6.2%

Freight $1,223,000 (CC) X 5.0%

Total purchased equipment cost (PEC) $27,191,000

Direct installation costs

Foundation & supports $5,438,000 (PEC) X 20.0%

Handling & erection $8,157,000 (PEC) X 30.0%

Electrical $4,079,000 (PEC) X 15.0%

Piping $680,000 (PEC) X 2.5%

Insulation $2,719,000 (PEC) X 10.0%

Painting $272,000 (PEC) X 1.0%

Demolition $2,719,000 (PEC) X 10.0%

Relocation $1,360,000 (PEC) X 5.0%

Total direct installation costs (DIC) $25,424,000

Air preheater modifications $8,685,000 Based on a budgetary quote received for the project

Balanced draft conversion $17,122,000 Adjusted from a B&V balanced draft conversion project based on differences in scope

Site preparation $1,000,000 Contingency for site unknowns, such as underground utilities

Buildings $200,000 Contingency for general site building requirements

Total direct costs (DC) = (PEC) + (DIC) $79,622,000

Indirect Costs

Engineering $5,574,000 (DC) X 7.0%

Owner's cost $3,981,000 (DC) X 5.0%

Construction management $7,962,000 (DC) X 10.0%

Construction indirect $16,723,000 B&V labor market review

Start-up and spare parts $2,389,000 (DC) X 3.0%

Performance test $796,000 (DC) X 1.0%

Contingencies $15,924,000 (DC) X 20.0%

Total indirect costs (IC) $53,349,000

Interest During Construction (IDC) $4,927,000 [(DC)+(IC)] X 7.41% 1 years (project time length X 1/2)

Loss Generation during Outage (GEN) $23,674,000 5 weeks and 0.06095 $/kWh 12 weeks required for BDC, 

7 weeks major outage available

Total Capital Investment (TCI) = (DC) + (IC) + (GEN) $161,572,000

ANNUAL COST

Direct Annual Costs

Fixed annual costs

Operating labor $125,000 1 FTE and 124,862 $/year Estimated manpower level

Maintenance labor & materials $2,389,000 (DC) X 3.0%

Total fixed annual costs $2,514,000

Variable annual costs

Urea $2,641,000 1,689 lb/hr and 420 $/ton Engineering estimate

Water $2,658,000 380 gpm and 15.67 $/1,000 gal Engineering estimate

Catalyst replacement $270,000 42 m3 and 6,500 $/m3 2 yr catalyst replacement rate

Auxiliary power $32,000 70 kW and 0.06095 $/kWh Engineering estimate

ID fan power $997,000 2,197 kW and 0.06095 $/kWh Engineering estimate

Total variable annual costs $6,598,000

Total direct annual costs (DAC) $9,112,000

Indirect Annual Costs

Cost for capital recovery $15,737,000 (TCI) X 9.74% CRF at 7.41% interest & 20 year life

Total indirect annual costs (IDAC) $15,737,000

Total Annual Cost (TAC) = (DAC) + (IDAC) $24,849,000