## Entergy Lake Catherine Unit 4

**LNB-SOFA Capital and O&M Cost Estim ate**  **Summary of EPA's revisions to Entergy's LNB-SOFA cost estim ate:**  Entergy's estimate includes capital suspense and AFUDC. These line items have been adjusted to "0."
**Operational Data** Maximum HI (MMBtu/hr) Average Annual Operating Hours, 2009-2011 **Capital Costs** Installed Capital Cost Installed Capital Cost estimate provided by S&L

### 1 Permitting and Legal/Regulatory Support Entergy employee labor and loaders Capital Suspense AFUDC

Capital Recovery Factor (CRF) (2012 Dollars) CRF= [I x (1+i)^a]/ [(1+i)^a-1], where I=interest rate, a=equipment life, 30-yr life, 7% interest **Annual Costs** Fixed O&M Costs 

### 1 Variable O&M Costs Annualized Capital Cost CFR* Installed Capital Cost **Total Annual Costs** Anuual Emissions Reductions (NOx tpy) **Average Cost-effectiveness of Controls ($/ton rem oved)** 

1: The estimates for the Installed Capital Cost and Fixed O&M Cost for LNB/SOFA were provided by Sargent & Lundy in the "NOx Control Technology Cost and Performance Study," dated May 16, 2013. This study is found in Appendix D to the “Revised BART Five Factor Analysis Lake Catherine Steam Electric Station Malvern, Arkansas (AFIN 30-00011),” dated May 2014, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. A copy of this BART analysis and its appendices is found in the docket for our proposed rulemaking.

### Entergy's estimate includes capital suspense and AFUDC. These line items have been

Entergy's Cost Estimates EPA Revised Cost Estimates **Explanation of EPA's Cost Estim ate Revisions** 

5850 5850 1205 1205
$11,845,025 $10,508,863 

### Installed Capital Cost revised to account for revision to line item **s below**

$8,762,000 $8,762,000 $112,500 $112,500 $1,634,363 $1,634,363 $751,978 $0 

### Capital Suspense is a disallowed line item $584,184 $0 

### AFUDC is a disallowed line item

0.080586403 0.080586403 $210,000 $210,000 $19,034 $19,034 $954,548 $846,871 

### Annualized Capital Cost revised to account for revision to Installed Capital Cost. $1,183,582 $1,075,905 

### Total Annual Cost revised to account for revision to Annualized Capital Cost 742 742 $1,595 $1,450

1: The estimates for the Installed Capital Cost and Fixed O&M Cost for LNB/SOFA were provided by Sargent & Lundy in the "NOx Control Technology Cost and Performance Study," dated May 16, 2013. This study is found in Appendix D to the “Revised BART Five Factor Analysis Lake Catherine Steam Electric Station Malvern, Arkansas (AFIN 30-00011),” dated May 2014, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. A copy of this BART analysis and its appendices is found in the docket for our proposed rulemaking.

### Explanation of EPA's Cost Estim **ate Revisions**

**Installed Capital Cost revised to account for revision to line item s below** 

**Annualized Capital Cost revised to account for revision to Installed Capital Cost. Total Annual Cost revised to account for revision to Annualized Capital Cost** 

## Entergy Lake Catherine Unit 4

**LNB-SOFA + SNCR Capital and O&M Cost Estim ate**  **Summary of EPA's revisions to Entergy's LNB-SOFA + SNCR cost estim ate:**  Entergy's estimate includes capital suspense and AFUDC. These line items have been adjusted to "0."
**Operational Data** Maximum HI (MMBtu/hr) Average Annual Operating Hours, 2009-2011 **Capital Costs** Installed Capital Cost Installed Capital Cost estimate provided by S&L

### 1 Permitting and Legal/Regulatory Support Entergy employee labor and loaders Capital Suspense AFUDC

Capital Recovery Factor (CRF) CRF= [I x (1+i)^a]/ [(1+i)^a-1], where I=interest rate, a=equipment life, 30-yr life, 7% interest **Annual Costs** Fixed O&M Costs 

### 1 Variable O&M Costs 

### 1 Annualized Capital Cost CFR* Installed Capital Cost **Total Annual Costs** Anuual Emissions Reductions (NOx tpy) **Average Cost-effectiveness of Controls ($/ton rem oved)** 

1: The estimates for the Installed Capital Cost, Fixed O&M Cost, and Variable O&M Cost for LNB/SOFA + SNCR were provided by Sargent & Lundy in the "NOx Control Technology Cost and Perfomance Study," dated May 16, 2013. This study is found in Appendix D to the “Revised BART Five Factor Analysis Lake Catherine Steam Electric Station Malvern, Arkansas (AFIN 30-00011),” dated May 2014, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. A copy of this BART analysis and its appendices is found in the docket for our proposed rulemaking.

### Entergy's estimate includes capital suspense and AFUDC. These line items

Entergy's Cost Estimates EPA Revised Cost Estimates **Explanation of EPA's Cost Estim ate Revisions** 

5850 5850 1205 1205
$29,295,494 $26,015,863 

### Installed Capital Cost revised to account for revision to line item **s below**

$24,269,000 $24,269,000 $112,500 $112,500 $1,634,363 $1,634,363 $1,821,939 $0 

### Capital Suspense is a disallowed line item $1,457,962 $0 

### AFUDC is a disallowed line item

0.080586403 0.080586403 $489,000 $489,000 $462,000 $462,000 $2,360,818 $2,096,525 

### Annualized Capital Cost revised to account for revision to Installed Capital Cost. $3,311,818 $3,047,525 

### Total Annual Cost revised to account for revision to Annualized Capital Cost 865 865 $3,829 $3,523

1: The estimates for the Installed Capital Cost, Fixed O&M Cost, and Variable O&M Cost for LNB/SOFA + SNCR were provided by Sargent & Lundy in the "NOx Control Technology Cost and Perfomance Study," dated May 16, 2013. This study is found in Appendix D to the “Revised BART Five Factor Analysis Lake Catherine Steam Electric Station Malvern, Arkansas (AFIN 30-00011),” dated May 2014, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. A copy of this BART analysis and its appendices is found in the docket for our proposed rulemaking.

### Explanation of EPA's Cost Estim **ate Revisions**

**Installed Capital Cost revised to account for revision to line item s below** 

**Annualized Capital Cost revised to account for revision to Installed Capital Cost. Total Annual Cost revised to account for revision to Annualized Capital Cost** 

## Entergy Lake Catherine Unit 4

**LNB-SOFA + SCR Capital and O&M Cost Estim ate**  **Summary of EPA's revisions to Entergy's LNB-SOFA + SCR cost estim ate:**  Entergy's estimate includes capital suspense and AFUDC. These line items have been adjusted to "0."
**Operational Data** Maximum HI (MMBtu/hr) Average Annual Operating Hours, 2009-2011 **Capital Costs** Installed Capital Cost Installed Capital Cost estimate provided by S&L

### 1 Permitting and Legal/Regulatory Support Entergy employee labor and loaders Capital Suspense AFUDC
Capital Recovery Factor (CRF) (2012 Dollars) CRF= [I x (1+i)^a]/ [(1+i)^a-1], where I=interest rate, a=equipment life, 30-yr life, 7% interest **Annual Costs** Fixed O&M Costs 

### 1 Variable O&M Costs 

### 1 Annualized Capital Cost **Total Annual Costs** Anuual Emissions Reductions (NOx tpy) **Average Cost-effectiveness of Controls ($/ton rem oved)** 

1: The estimates for the Installed Capital Cost, Fixed O&M Cost, and Variable O&M Cost for LNB/SOFA + SCR were provided by Sargent & Lundy in the "NOx Control Technology Cost and Perfomance Study," dated May 16, 2013. This study is found in Appendix D to the “Revised BART Five Factor Analysis Lake Catherine Steam Electric Station Malvern, Arkansas (AFIN 30-00011),” dated May 2014, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. A copy of this BART analysis and its appendices is found in the docket for our proposed rulemaking.

### Entergy's estimate includes capital suspense and AFUDC. These line items

Entergy's Cost Estimates EPA Revised Cost Estimates **Explanation of EPA's Cost Estim ate Revisions** 

5850 5850 1205 1205
$79,152,952 $70,370,863 

### Installed Capital Cost revised to account for revision to line item **s below**

$68,349,000 $68,349,000 $387,500 $387,500 $1,634,363 $1,634,363 $4,888,377 $0 

### Capital Suspense is a disallowed line item $3,956,212 $0 

### AFUDC is a diaallowed line item

0.080586403 0.080586403 $568,000 $568,000 $268,000 $268,000 $6,378,652 $5,670,935 

### Annualized Capital Cost revised to account for revision to Installed Capital Cost. $7,214,652 $6,506,935 

### Total Annual Cost revised to account for revision to Annualized Capital Cost 1,159 1,159 $6,225 $5,614

1: The estimates for the Installed Capital Cost, Fixed O&M Cost, and Variable O&M Cost for LNB/SOFA + SCR were provided by Sargent & Lundy in the "NOx Control Technology Cost and Perfomance Study," dated May 16, 2013. This study is found in Appendix D to the “Revised BART Five Factor Analysis Lake Catherine Steam Electric Station Malvern, Arkansas (AFIN 30-00011),” dated May 2014, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. A copy of this BART analysis and its appendices is found in the docket for our proposed rulemaking.

### Explanation of EPA's Cost Estim **ate Revisions**

**Installed Capital Cost revised to account for revision to line item s below** 

**Annualized Capital Cost revised to account for revision to Installed Capital Cost. Total Annual Cost revised to account for revision to Annualized Capital Cost**