**Exhibit 2 Revised Cost Effectiveness A** **nalysis for Dry Flue Gas Desulfurization at**  **Sooner Units 1 and 2 and Muskogee Units 4 and 5**

**Option 2 Sooner 1 &2**  **Sooner 1&2 Muskagee 4&5**  **Muskagee 4&5 S&L**  **Fox S&L**  **Fox**

Heat Input (MMBtu/hr) 5,116 5,116 5,480 5,480 Capacity (MW) 570 570 572 572 Vendor Quote 70,500,000 70,500,000 71,200,000 71,200,000 Dry FGD System 86,859,600 86,859,600 86,741,200 86,741,200 Fabric Filter 46,335,000 46,335,000 45,872,900 45,872,900 Ash Recycling System - DFGD Contractor's Scope 11,116,900 11,116,900 12,102,900 12,102,900 Waste Ash and Fly

Ash Handling System 14,265,600 14,265,600 14,311,500 14,311,500 Ash Recycling - BOP Scope 955,600 955,600 Flue Gas System 42,463,000 42,463,000 52,238,200 52,238,200 Mechanical - Balance of Plant 6,891,300 6,891,300 6,201,400 6,201,400 Electrical:Auxiliary

Power and Balance of Plant Electrical Work 41,935,100 41,935,100 37,923,600 37,923,600 Controls & Instrumentation 5,088,500 5,088,500 5,088,500 5,088,500 Civil Work 3,597,400 3,597,400 3,597,400 3,597,400 Removal & Relocation of Existing Equipment & Infrastructure 2,047,600 2,047,600 4,134,800 4,134,800 Manhour Productivity

Factor -14,276,530 -14,918,100 OK Vendor Discount Equipment -3,525,000 -3,560,000 OK Optimizing Design Vendor Scope -8,734,800 -9,073,560 OK Subtotal Equipment Material & Labor Costs 261,555,600 235,019,270 268,212,400 240,660,740 Other Costs 61,016,900 61,016,900 63,987,800 63,987,800 Overtime Inefficiency -9,518,000 -9,945,000 OK BOP Contractor's General & Admin -7,408,600 -7,855,500 Spare Parts, Special Tools % Consumables 794,000 794,000 807,000 807,000 Freight, Duties & Taxes 1,936,000 1,936,000 2,136,900 2,136,900 **325,302,500 281,839,570**  **335,144,100 289,791,940**  Total Indirect Costs 48,090,100 48,090,100 49,601,900 49,601,900 Engineering/Procurement -12,205,338 -12,354,495OK Construction Management 0 0 Revised to include construction management Startup & Commissioning Craft Support -3,273,900 -3,417,600 OK Operator Training & Manuals -900,300 -939,800 OK Owner's Cost -16,265,125 -16,757,205OK **Revised Total Indirect Costs 48,090,100**  **15,445,437 49,601,900**  **16,132,800** Escalation 46,602,900 0 63,277,100 0 OK Contingency 58,673,400 2,115,000 63,104,100 2,136,000 OK Bond Cost 4,786,700 0 5,111,300 0 OK AFUDC 101,133,800 0 118,148,300 0 OKReduction in Cost Due to Smaller Scrubber -8,982,000 -9,241,822 3% reduction based on S&L IPM spreadsheet **Total Project Cost 584,589,400**  **290,418,007 634,386,800**  **298,818,917** CRF 0.1036 0.0727 0.1036 0.072730 yrs & 6.01% Annual Capital 60,563,462 21,121,133 65,722,472 21,732,103 Variable O&M 19,899,400 19,899,400 21,292,200 21,292,200 Fixed O&M 8,027,400 8,027,400 8,439,200 8,439,200 Indirect O&M 5,174,200 5,174,200 7,146,400 7,146,400 Total O&M 33,101,000 33,101,000 36,877,800 36,877,800 Lime 0 0 Water 0 0 FGD Waste Disposal Cost 0 0 Bag & Cage Replacement Cost -218,548 -152,160 OK Auxiliary Power -5,368,400 -5,886,800 Property Taxes -5,000,914 -4,026,815OK Insurance -61,776 -70,469 OK **Revised O&M** 33,101,000 22,451,362 36,877,800 26,741,556 Total Annual Cost ($) 93,664,462 43,572,495 102,600,272 48,473,659 SO2 Emission Reduction (ton/yr) 13,930 13,930 13,799 13,799 Revised Emission Reduction (ton/yr) 15,860 15,989 S&L Cost Effectiveness ($/ton) 6,724 7,435 **Revised Cost Effectiveness ($/ton) 2,747**  **3,032 Revised (A** **FUDC, escalation, contingency) 3,684**  **4,134** Cost ($/kw) 513 255 555 261 Cost ($/kw) Utility

Comparison 343 364