### Basin Elecric 11786-001 9/20/2011 

# Study **A ssumptions** 

**Basin Electric Basin Electric**  **HighDust Low**  **Dust**

1) Fuel to be Fired Dry Fork Dry Fork 2) SCR Design Temperature, F 700 600 3) Inlet NOx, lb/MBtu 0.20 0.20 4) Required Efficiency, % 85.00 85.00 5) Inlet Dust loading, lb/MBtu 4.80 0.015 6) Catalyst Pitch, mm 8.4 5.0 7) Initial catalyst life, years 2 3 8) Gas Gas Heat Exchanger No Yes 9) In duct heating No Superheated steam 10) SO2 to SO3 Oxidation, % 3.00 2.00

Sargent & Lundy

## SCR Pow **er Consumption (High/Low Dust)** 
**High Dust Low Dust** 



## Gross Power, MW 440 440 **ID fans** I ncrease in Fan HP 3,625 8,157 I ncrease in Motor kW 2,705 6,085
**Ammonia System Power** Ammonia Consumption, lb/hr 1091 873 Power Consumption, kW 109 87 2 x 20 kW Heaters 2 x 20 kW Heaters **Dilution Air Blower** Power Consumption, HP 128.0 102.0 Power Consumption, kW 95.5 76.1 Connected Air Blowers, kW 2 x 20 2 x 20

**Dilution Air Heaters** Power Consumption, kW 387.1 309.7 Connected Heaters, kW 2 x 75 2 x 75
**Ammonia Pump** Power Consumption, HP 2.4 1.9 Power Consumption, kW 1.8 1.4

**Seal Air Fans** Power Consumption, HP 88 88 Power Consumption, kW 66 66 Connected Seal air fan, kW 2 x 125 2 x 125

**Sub-Total Power Consumption, kW** 3363 6625

**Electrical and Control Power Consumption, kW**  **168 331** 

**Total Power Consumption, kW 3531**  **6956**
**% of Gross 0.80**  **1.58**

## EPA **Leland Olds Unit 2 SCR Cost A naly**  **sis Ad**  **justment of Fox Costs to 2009 Dollars Scenario 2: 2-Year Cataly**  **st Replacement Cy cle** 

**COST DESCRIPTION 2010 DOLLA**  **RS 2009 DOLLA**  **RS**

**TOTA L CA**  **PITA L COST** 
SCR + ASOFA Capital Cost $ 175,561,000 164,734,423 SCR Capital Cost $ 164,121,000 153,999,910 SO3 Mitigation Capital Cost $

- - **Total Installed Capital Cost** $ 175,561,000 164,734,423 **A nnual Capital Cost**  $/yr 15,305,408 14,361,547



### FIXED O&M COST
Operating Labor Cost $/yr

- - Maintenance Materials Cost $/yr 527,000 494,501 Maintenance Labor Cost $/yr 351,000 329,354 Administrative and Support Labor $/yr

- -
**Total Fixed O&M Cost** $/yr 878,000 823,855


### VA **RIA BLE O&M COST** 

Ammonia Cost $/yr 2,255,000 2,115,938 Catalyst Cost $/yr 531,000 498,254 Power Cost $/yr 2,003,000 1,879,478 Gas Penalty $/yr 2,767,000 2,596,363 Outage Penalty $/yr

- - Sorbent Injection $/yr

- - **Total Variable O&M Cost** $/yr 7,556,000 7,090,033


### TOTA **L O&M COSTS** $/yr 8,434,000 7,913,888 

### TOTA **L A NNUA**  **L COSTS** $/yr 23,739,408 22,098,090 

## COST EFFECTIVENESS **$/ton 1,970**  **1,849**

**NOTES** Emission reductions used for $/ton calculation: 12,050 tons/year Costs adjusted to 2009 dollars using the CEPCI index of 2009/2010 = 521.9/556.2 = 0.938Basin Elecric 12109-001 9/20/2011 **EXHIBIT 1b COST EFFECTIVENESS ANALYSIS**  **TA IL-END SCR PLUS ASOFA AT LELAND OLDS UNIT 2** 

**Units Fox Revised** 

**Cost I**  **INPUT DATA**

Design Coal Lignite Lignite SCR Configuration Tail End Tail End Capacity MW 440 440 Heat Input MBtu/hr 5,130 5,130 Inlet NOx Emissions lb/MMBtu 0.48 0.48 Outlet N0x Emissions lb/MMBtu 0.05 Control Efficiency % 90 90 NOx Removed lb/hr 2,206 2,216 NOx Removed tons/yr 8,357 10,517 Ammonia Required lb/hr 869 873 Ammonia Cost $/ton 475 700 Pressure Drop across catalyst in w.c. 4 4 Pressure Drop in w.c. 18 18 Power Consumption kW 6,956 6,956 Power Cost $/MW h 38 50 Temperature Rise Across Steam to Flue Gas Reheater F 50 50 Natural Gas Requirement MMBtu/hr 66 115 (30 F rise) (50 F rise) Natural Gas Cost $/MMBtu 5.5 12.0 Unit Capital Cost SCR + SOFA+SI $/kW 388 388 Unit Capital Cost SCR + SOFA $/kW 376 Unit Capital Cost ASOFA $/kW 26 26 Unit Capital Cost SCR $/kW 350 Unit Catalyst Cost $/m 3 7,500 7,500
Initial Catalyst Volume m 3 440 530 Coal Cost $/MBtu 1.00 1.00 Catalyst Cost $ 3,300,000 3,960,000 Annual Capacity Factor % 86.5 92.3 Cost of Outage $/week 0 3,696,000 Outage Duration weeks 0 4 Catalyst Replacement 24,000 hrs 6 months Number of Catalyst Layers 3 1 Future W orth Factor 0.31 1 Capital Recovery Factor 0.08718 0.08718 Levelized Annual O&M Factor 1 1.19314
**TOTAL CAPITAL COST**
SCR + ASOFA Capital Cost $ 170,720,000 SCR Capital Cost $ 164,121,000 SO3 Mitigation Capital Cost a $ 0 0 **Total Installed Capital Cost** $ **164,121,000 170,720,000**  **Annual Capital Cost** $/yr **14,308,069 14,883,370** 

**FIXED O&M COST**
Operating Labor Cost $/yr $0 $0 Maintenance Materials Cost $/yr $492,000 $512,000 Maintenance Labor Cost $/yr $328,000 $341,000 Administrative and Support Labor $/yr $0 $0

**Total Fixed O&M Cost** $/yr **$820,000 $853,000** 

**VARIABLE O&M COST**

Ammonia Cost $/yr 1,564,000 2,471,000 Catalyst Cost $/yr 342,000 7,920,000 Power Cost $/yr 2,003,000 2,813,000 Gas Penalty $/yr 2,767,000 11,161,000 Outage Penalty $/yr 0 14,784,000 Sorbent Injection $/yr 0 207,000

**Total Variable O&M Cost** $/yr **6,676,000 39,356,000**  40,209,000 **TOTAL O&M COSTS** $/yr **7,496,000 47,974,966**  **Cost Effectiveness $/ton**  **2,609 5,977** 

Sargent & Lundy