## Entergy Independence Units 1 and 2

**LNB-SOFA Capital and O&M Cost Estim ate** 

## 1

**Operational Data** Maximum HI (MMBtu/hr) Annual Operating Hours, 2001-2003
**Capital Costs** Installed Capital Cost Installed Capital Cost estimate provided by S&L 

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

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 

## 2 Variable O&M Costs Annualized Capital Cost **Total Annual Costs** NOx Emissions Baseline (tons) 

## 3 Anuual Emissions Reductions (NOx tpy) **Average Cost-effectiveness of Controls ($/ton rem oved)** 

1: Our estimate of the cost-effectiveness of LNB/SOFA at Independence Units 1 and 2 is based on Entergy's cost analysis for LNB/SOFA on Whitebluff Units 1 and 2, with one line item revision made by EPA. See “Revised BART Five Factor Analysis White Bluff Steam Electric Station Redfield, Arkansas (AFIN 35-00110),” dated October 2013, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. Trinity’s Entergy’s NOx control cost estimates are found in Appendix A of the BART analysis and Appendix E contains the “NOx Control Technology Cost and Performance Study” prepared by Sargent & Lundy on behalf of Entergy. A copy of the BART analysis and all appendices are found in the docket for our proposed rulemaking.
2: 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 E to the “Revised BART Five Factor Analysis White Bluff Steam Electric Station Redfield, Arkansas (AFIN 35-00110),” dated October 2013, 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.

3: See the tab titled "NOx Emission Baseline."

### EPA Cost Estimates **Explanation of EPA's Cost Estim ate Revisions**  **Unit 1 Unit 2**  8950 8950 7361 7401

**Unit 1 Unit 2**  $9,505,533 $13,532,533 

### Installed Capital Cost revised to reflect revision to the Capital Suspense line item

$7,804,000 $11,831,000 $112,500 $112,500 $1,589,033 $1,589,033 $0 $0 

### Capital Suspense is a disallowed line item

0.080586403 0.080586403
$142,000 $142,000 $177,887 $170,838 $766,017 $1,090,538 

### Annualized Capital Cost revised to reflect revision to the Installed Capital Cost $1,085,904 $1,403,376 

### Total Annual Costs revised to reflect revision to Annualized Capital Cost 6,329 6,384 2,710 3,217 $401 $436

1: Our estimate of the cost-effectiveness of LNB/SOFA at Independence Units 1 and 2 is based on Entergy's cost analysis for LNB/SOFA on Whitebluff Units 1 and 2, with one line item revision made by EPA. See “Revised BART Five Factor Analysis White Bluff Steam Electric Station Redfield, Arkansas (AFIN 35-00110),” dated October 2013, prepared by Trinity Consultants Inc. in conjunction with Entergy Services Inc. Trinity’s Entergy’s NOx control cost estimates are found in Appendix A of the BART analysis and Appendix E contains the “NOx Control Technology Cost and Performance Study” prepared by Sargent & Lundy on behalf of Entergy. A copy of the BART analysis and all appendices are found in the docket for our proposed rulemaking.
2: 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 E to the “Revised BART Five Factor Analysis White Bluff Steam Electric Station Redfield, Arkansas (AFIN 35-00110),” dated October 2013, 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 reflect revision to the Capital Suspense line item**

**Annualized Capital Cost revised to reflect revision to the Installed Capital Cost Total Annual Costs revised to reflect revision to Annualized Capital Cost** 

### Unit 1 - Actual Annual Emissions (NOx tpy) **Unit 2- Actual Annual Emissions (NOx tpy)**

2009 6610 2009 7728 2010 7841 2010 6778 2011 7013 2011 6397 2012 5364 2012 5702 2013 4737 2013 5977

*** Baseline Emission Rates (NOx tpy)** Unit 1 = 6,329 Unit 2= 6,384

* Baseline Emission Rates calculated by eliminating the year with the highest emissions and the year with the lowest emissions, and averaging the remaining three years (averaged years highlighted in yellow).

### * Baseline Emission Rates calculated by eliminating the year with the highest emissions and the year with the lowest emissions, and averaging the remaining three years (averaged years highlighted in yellow).

### * Baseline Emission Rates calculated by eliminating the year with the highest emissions and the year with the lowest emissions, and averaging the remaining three years (averaged years highlighted in yellow).