# AIlS

A subsidiary of Pinnacle West Capital Corporation

David L 

## Saliba Plant Manager Four Corners Power Plant



# March 16,2009

Ms. Anita Lee US EPA REGION 9 75 Hawthorne Street Mail Code: AIR-3 San Francisco, CA 94105 Tel. 505-598-8200 Fax 505-598-8237 e-mail dsaliba@apsc.com Mail Station 4900 PO Box 355 Fruitland, NM 87416-0355



# CERTIFIED MAIL

RE: EPA's BART ANALYSIS INFORMATION REQUEST

Dear Ms. Lee,
As you requested through Bob Paine, attached is the analysis Black and Veatch performed in August 2008 to update costs in our BART analysis. This cost update was requested by Four Corners Power Plant (FCPP) to provide a more accurate forecast of construction and annual operating costs.

After the initial cost estimates were done in 2007 prices for steel, concrete, other building materials and overall construction services increased dramatically. The higher costs you noticed in the supplemental BART submittal are the result of the updated Black and Veatch study and more accurately reflect expected costs.

Attachment A contains the updated and original costs to install and operate SCR and SNCR on each unit and a detailed explanation of how costs have increased since 2005. Attachment B contains the updated costs for LNB, OFA, HERT, SNCR, SCR and the combinations of each technology considered for each unit.
If you have any questions or need additional information please let me know.

# Daid~~i41 Fou Corners Power Plant

RLG/cmm C5874/09-005-00 1.8 

# attachments
cc: Colleen McKaughan, US EPA Scott Bohning, US EPA Steven Frey, US EPA

# Attachment A

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates


# 2008 Update to BART SCR and SNCR Cost Estimates

The purpose of this document is to update the cost estimates for Selective Catalytic Reduction (SCR) and Selective Non-Catalytic Reduction (SNCR) technologies
that were first presented in Black & Veatch's (B&V) BART Engineering Analysis dated
December 4, 2007 (B&V File 145983.40.0000). APS requested this update due to significant escalation in retrofit prices since the development of the BART Engineering
estimates by B&V.
Table 1 presents a comparison of the original and updated Total Annual Cost.
Table 1: Total Annual Cost Comparison

SCR SNCR
Unit Original Current Differential Original Current Differential
1 $18,056,000 $22,297,000 +23.5% $3,123,000 $4,314,000 +38.1% I 

# 2 $18,966,000 $23,634,000 +24.6% $2,737,000 $3,941,000 +44.0%
3 $19,957,000 $23,173,000 +16.18% $3,102,000 $4,536,000 +46.2%
4 $51,487,000 $55,755,000 +8.3% $7,331,000 $10,668,000 +45.5%
5 $51,487,000 $55,755,000 +8.3% $7,331,000 $10,668,000 +45.5%

Table 2 presents a companson of the original and updated Total Capital
Investment (i.e. total installed cost).

I 

# Table 2: Total Capital Investment Cost Comparison
SCR SNCR
Unit Original Current Differential Original Current Differential I 

# 1 $88,235,000 $110,664,000 +25.4% $5,572,000 $10,866,000 +95.0%
2 $94,216,000 $119,010,000 +26.3% $5,397,000 $10,742,000 +99.0%
3 $96,690,000 $113,084,000 +16.9% $5,762,000 $12,137,000 +106.4%
4 $242,090,000 $265,406,000 +9.6% $11,060,000 $25,890,000 +134.1%
5 $242,090,000 $265,406,000 +9.6% $11,060,000 $25,890,000 +134.1%

9/5/2008 BV-1

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates



# SCR Cost Estimate 

# For the SCR cost update, the original material cost estimates were updated using
B&V's internal cost database that follows escalation in material prices. Each itemized
Purchased Equipment Cost (PEe) category for the SCR system was escalated to 2008
dollars based on B&V data. Direct installation costs (DIe) and Indirect Costs (IC) were
recalculated based on the new PEC utilizing the same factored percentages of PEC as
identified in the initial BART Engineering Analysis.
A refinement was also made during this update to the SCR cost estimate template. In the original BART cost estimate, the "SCR reactor housing" and "flue gas handling
and ductwork" line items have been expanded to the following components:

• Reactor housing. • Flue gas handling and ductwork.

• Expansion joints. • Dampers. Appendices A and B contain the updated and the original BART Engineering Analysis cost estimates, respectively.

SNCR Cost Estimate 

# For the SNCR cost update, the material cost for the SNCR system, which includes reagent storage, reagent handling, reagent injection equipment, and control system have
been revised to be consistent with recent vendor budgetary quotations for SNCR systems
in units that are comparable in size to the APS Four Comers units. A scaling ratio was
used in conjunction with the budgetary pricing to determine the relevant cost for each
Four Comers unit. This cost estimating approach was utilized to enhance the accuracy of
the cost estimates. Previously, the CUECost cost estimation model was used. The
vendor provided material cost also captures the recent escalation in material prices and is
in 2008 dollars. Appendices A and B contain the updated and the original BART Engineering Analysis cost estimates, respectively.

9/5/2008 BV-2

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates



# Escalation in the Power Industry
Black & 

# Veatch has been closely monitoring developments in the Power Industry and their impacts on cost and risk. Appendix C includes a summary of trends in material prices and components that are common in complex air quality control upgrades such as the NOx control systems. As shown in the table, the Power Industry has experienced a dramatic escalation in material price since 2005. We believe this trend will continue due

to domestic and global influences such as continuing demand for equipment and specialized construction, increases in fuel and transportation costs, and increased demand
for basic commodities such as steel and copper.

Revised B ART Engineering Analysis Section 6 

# Tables and Figures Appendix 0 

# contains the revised tables and figures in Section 6 of the BART Engineering Analysis. The revision incorporates the updated cost estimates for SCR and
SNCR presented in Table 1.

9/5/2008 BV-3

# Arizona Public Service (APS) Four Corners Units 1 through 5



# Appendix A 2008 Update to BART SCR and SCNR Cost Estimates



# Updated BART SCR and SNCR Cost Estimates

9/5/2008

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

Four Corners BART Analysis· Cost Analysis Unit: 1 Case Identifier: 

# -o6"'B=:-:-====:;-:=,---

_ Technology: SelectiveCatalytic Reduction Date: 8/19/2008

Cost Item SCR Remarks

CAPITAL COST DIrect Costs Purchased equipment costs Reactor housing Urea handling and injection Initialcatalyst Initial urea reagent Inventory Flue gas handling and ductwork Air pretteater FD fans FD fan VFD IDfans ID !anVFD Expansion JOints Dampers Electrical equipment MIsc. equipment Instruments and controls Subtotal (CC)

Taxes Freight

Total Cost (PEG)

Direct installation costs Foundation & supports Handling & erection Electrical Ptpmq Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Site preparation BUildings Total direct costs (DC) = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up TunIng Performance test Contingencies Total Indirect costs (IC)

Umntended Consequences (UC) Lost Revenue NewCEMS Rata Test for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual casts Operating labor Maintenance labor & matenals Total fixed annual costs

Venable annual costs Reagent Auxrhary and ID fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAG) 

## = (DAC) + (IDAC) Total Annual Cost With Levehzaticn Factor



# 9/5/2008 $441,000 $2,383,000 $2.553,000

$286,000 $5,432,000 $3,122,000 $1,625.000 $1,078,000 $3,791,000 $1,725,000

$543,000 $1,357,000 $3,262,000

$292,000 $1,574,000 $29,464,000

$2,946,000 $1,473,000

$33,883,000

$11,859,000 $8,471,000 $6,777,000

$847,000 $3,388,000

$339,000 $1,500,000

$508,000 $3,368,900 $37,057.900

$2,000,000

$500,000 $73,441,000

$11,016,000 $2,203,000 $7,344,000

Included $2,203,000

$25,000 $90,000 $11,016,000 $33,897,000

$1,176,000 $2,000,000

$150,000 $3,326,000

5110,664,000

$68,000 $2,203,000 $2,271,000

$871.000 $442,000 $51,000 $706,000 $272.000 $2,342,000

$4,613,000 $6,695,000

$17,684,000 $17,684,000

522,297,000 $24,379.000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUECost Eng. Estrmate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

(CC) X 10.0% (CC) X 5.0%

(PEC) X 35.0% (PEG) X 25.0% (PEG) X 20.0% (PEC)X 2.5% (PEC) X 10.0% (PEC)X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC)X 15.0% (DC) X 3.0% (DG) X 10.0% B&V labor market review (DC)X 3.0% Eng. Estimate Eng. Estimate (DC)X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levehzaficn Factor

15% Interest rate & 20 year Ide

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

Four Corners BART Analysis

- Cost Analysis Unit: 2 Case Identifier: .;;6;=8':-".--."-.,....,.."....".....,,....,.-

_ Technology: Selective Catalytic Reduction Date: 8/19/2008

Cost Item SCR Remarks

CAPITAL COST Drrect Costs Purchased equipment costs Reactor housing Urea handling and injection Initial catalyst lruhal urea reagent Inventory Flue gas handling and ductwork Air preheater FD fans FD fan VFD 10 fans 10 fan VFD Expansion JOints Dampers Electrical equipment MIsc. equipment Instruments and controls Subtotal (CC)

Taxes Freight

Total Cost (PEC)

Direct Installation costs Foundation & supports Handling & erection Electrical Piping Insulation Pamtmq Demolition Relocation Taxes Total direct installation costs (DIC)

Site preparation BUildings Total direct costs (DC) = (PEC) + (DIC)

Indirect Costs Engineenng Owners Cost Construction and field expenses Construction Indirect Start-up Tuning Performance test Contingencies Total indirect costs (Ie)

Unintended Consequences (UC) Lost Revenue NewCEMS Rata Test for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & matenals Total fixed annual costs

Variable annual costs Reagent AUXIliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (OAG) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) Total Annual Cost with Levehzation Factor



# 9/5/2008 $441,000 $2,383,000 $2,553,000

$234,000 $7,254,000 $3,122,000 $1,625,000 $1,078,000 $3,791,000 $1,725,000

$725,000 $1,813,000 $3,262,000

$292,000 $1,574,000 $31,872,000

$3,187,200 $1,593,600

$36,652,800

$12,828,000 $9,163,000 $7,331,000

$916,000 $3,665,000

$367,000 $1,500,000

$550,000 $3,632,000 $39,952,000

$2,000,000

$500,000 $79,105,000

$11,865,750 $2,373,150 $7,910,500

Included $2,373,150

$25,000 $90,000 $11,866,000 $36,504,000

$1,251,000 $2,000,000

$150,000 $3,401,000

$119,010,000

$68,000 $2,373,000 $2,441,000

$713,000 $442,000 $42,000 $706,000 $272,000 $2,175,000

$4,616,000 $6,699,157

$19,018,000 $19,018,000

$23,634,000 $25,717,157 Eng. Estimate Eng. Estimate Eng. Esnmate adjusted from CUECost Eng. Estimate Eng Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Esllmate Eng. Estimate Eng. Estrrnate Eng. Estimate

(CC) X 100% ICC) X 5.0%

(PEC) X 35,0% (PEC) X 25.0% (PEC) X 20,0% (PEC) X 2.5% (PEC) X 10.0% IPEC)X 1.0% Eng. Estimate (PEe) x 1.5% @10%

Estimate Estimate

(DC) X 15.0% (DC) X 30% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC)X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levelizanon Factor

15% Interest rate & 20 year ufe

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

Four Corners BART Analysis - Cost Analysis Unit: 3 Case Identifier: .,,6:=8=,..-,-;;-=.,..,-=0-:=,---

_ Technology: Selective Catalytic Reduction Date: 8/19/2008

Cost Item 

### SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and injection Initial catalyst lrutral urea reagent Inventory Flue gas handhngand ductwork Air pre heater FD fans Fa fan VFD 10 fans 10 fan VFD Expansion [omts Dampers Electncal equipment Misc. equipment Instrumentsand controls Sublotal (CG)

Taxes Freight

Total Cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Ptpmq Insulation Painting Demolition Relocation Taxes Total direct mstallation costs (DIG)

Site preparation Buildings Total direct costs (DG) 

## = (PEG) + (DIC)

IndirectCosts Enqtneennq Owners Cost Constructionand field expenses ConstructionIndirect Start-up Tuning Performance test Contingencies Total indirectcosts (Ie)

Unintended Consequences (UG) Lost Revenue NewCEMS Rata Test for GEMS Total Unintended Consequences (UC)

Total Capital Investment (Tel) = (DC) + (Ie)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Vanable annual costs Reagent Auxiliaryand 10 fan power Steam Catalyst replacement Catalyst disposal T ota! variable annual costs

Total direct annual costs (DAC) T eta! direct annual costs

IndirectAnnual Costs Cost for capital recovery Total indirectannual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) Total Annual Cost With Levefizanon Factor



# 9/5/2008 $441,000 $2,383,000 $2,553,000

$277,000 $5,432,000 $3,122,000 $1,625,000 $1,078,000 $4,332,000 $2,157,000

$543,000 $1,357,000 $3,459,000

$292,000 $1,669,000 $30,720,000

$3,072,000 $1,536.000

$35,328,000

$12,365,000 $8,832,000 $7,066,000

$883,000 $3.533,000

$353,000 $1,500,000

$530,000 $3,506,000 $38,568,000

$2,000.000

$500,000 $76,396,000

$9,168,000 $2,292,000 $7,640,000

Included $2.292,000

$25,000 $90,000 $11,459,000 $32,966.000

$1,572,000 $2,000,000

$150,000 $3.722,000

$113,084,000

$76,000 $2,292,000 $2.368,000

$842,000 $583,000 $50.000 $909,000 $350,000 $2.734,000

$5,102,000 $7,404.000

$18,071,000 $18,071,000

$23,173,000 $25,475,000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUECost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

(CC) X 10.0% (CC) X 5.0%

(PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC)X 10% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC) X 12.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 30% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levehzanon Factor

15% Interestrate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

48 Selective Catalytic Reduction 

### Four Corners BART Analysis - Cost Analysis Unit: 4 & 5 Case Idenmie'r: Technology: Date: 8/19/2008

Cost Item Costs are per Unit SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and Injection Initial catalyst Initial urea reagent Inventory Flue gas handling ana ductwork Air preheater lD fans ID fan VFD Expansion Joints Dampers Electncal equipment Misc. equipment Instruments and controls Subtotal (CC)

Taxes Freight
Total Cost (PEG)

Direct installation costs Foundaton & supports Handling & erection Electncal Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIG)

Site preparation BUIldings Total direct costs (DC) = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Ccnunqencres Total mcnrect costs (IC)

Unintended Consequences (UC) Side Effect Mitigation Lost Revenue NewCEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = (DC) + (IC) + (UC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operatmq labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent AuxIliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total vanable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Unintended Consequences (UCAC) Side Effect MItigation Total Unintended Consequences (UCAC)
Total Annual Cost (TAC) = (DAG) + (IDAC) + (UCAC) Total Annual Cost With Leveuzaticn Factor



# 9/5/2008 $1,444,000 $9,747,000 $7,941,000

$734,000 $9,909,000 $15,610,000 $10,830,000 $5,392,000

$991,000 $2,477,000 $9,742,000

$583,000 $4,702,000 $80,102,000

$8,010,000 $4,005,000

$92,117,000

$18,423,000 $36,847,000 $13,818,000 $2,303,000 $4,606,000

$921,000 $5,000,000 $2,303,000 $8,422,000 $92,643,000

$2,000,000

$500,000 $187,260,000

$9,363,000 $5,618,000 $5,618,000

Included $5,618,000

$120,000 $250,000 $28,089,000 $54,676,000

$6,962,000 $14,358,000 $2,000,000

$150,000 $23,470,000

$265,406,000

$163,000 $5,618,000 $5,781,000

$2,231,000 $1,823,000

$132,000 $2,279,000

$877,000 $7,342,000

$13,123,000 $19,045,000

$42,412,000 $42,412,000

$220,000 $220,000

$55,755,000 $61,457,000 Eng Estnnate Eng. Estimate Eng. Estimate adjusted from CUECost Eng. Estimate Eng Estimate Eng Estimate Eng Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng Estimate Eng Estimate

(CC) X 10.0% (CC) X 5.0%

(PEG) X 20.0% (PEC) X 40.0% (PEG) X 150% (PEC)X 25% (PEG) X 5.0% (PEG) X 1.0% Eng. Estimate (PEG) X 25% @10%

Estimate Estimate

(DC) X 5.0% (DG) X 30% (DC) X 30% B&V labor market review (DC)X 3.0% Eng. Estimate Eng. Estimate (DC)X 15.0%

S03 Removal Extended Outage

from CUECost (DG) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levehzancn Factor

15% interest rate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

from recent vendor quote from CUECost from CUECost 

## Four Corners NOx Compliance· Cost Analysis Unit 1 Technology: Selective Non-Catalytic Reduction

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC) 

### $

$2,981,000

$313,000 $590,000 $3,884,000

$388,000 $233,000 $4,505,000

$225,000 $451,000 $451,000 $135,000 $0 $0 $180,000 $90,000 $153,200 $1,685,200 Date:

Remarks

(CC)X (CC)X

(PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X @10% 8/20/2008

10.0% 6.0%

5.0% 10.0% 10.0% 3.0% 0.0% 0.0% 4.0% 2.0%

Chemical Pump Enclosure Buildings Total direct costs (DC) 

### = (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) 

### = (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs
Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor



# 9/5/2008 $100,000 $0 $6,290,000

$440,000 $189,000 $629,000 Included $189,000 $35,000 $944,000 $2,426,000

$2,000,000

$150,000 $2,150,000
$10,866,000

$100,000 $566,000 $666,000

$1,903,000 $5,000 $4.000 $1,912,000

$2,578,000 $3,741,000

$1,736,000 $1,736,000

$4,314,000 $5,477,000 Eng. Estimate N/A

(DC) X 7.0% (DC) 

### X 3.0% (DC) X 10.0% B&V labor market review (DC) 

### X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC)X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

from recent vendor quote from CUECost from CUECost 

## Four Corners NOx Compliance· Cost Analysis Unit 2 Technology: Selective Non-Catalytic Reduction

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC) 

### $

$2,981,000

$256,000 $590,000 $3,827,000

$383,000 $230,000 $4,440,000

$222,000 $444,000 $444,000 $133,000 $0 $0 $178,000 $89,000 $151,000 $1,661,000 Date:

Remarks

(CC)X (CC)X

(PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEClX (PEC) X @10% 

### 8/20/2008

10.0% 6.0%

5.0% 100% 10.0% 3.0% 0.0% 0.0% 4.0% 2.0%

Chemical Pump Enclosure Buildings Total direct costs (DC) = 

### (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (lC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) 

### = (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs
Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor



# 9/5/2008 $100,000 $0 $6,201,000

$434,000 $186,000 $620,000 Included $186,000 $35,000 $930,000 $2,391,000

$2,000,000

$150,000 $2,150,000

$10,742,000



### $100,000 $558,000 $658,000

$1,557,000 $5,000 $4,000 $1,566,000

$2,224,000 $3,228,000

$1,717,000 $1,717,000

$3,941,000 

### $4,945,000 Eng. Estimate 

### NIA

(DC) X 7.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC)X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

from recent vendor quote from CUECost from CUECost 

## Four Corners NOx Compliance - Cost Analysis Unit 3 Technology: 

### Selective Non-Catalytic Reduction

Cost Item



### CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC) 

### $

$3,441,000

$302,000 $718,000 $4,461.000

$446,000 $268,000 $5,175,000

$259,000 $518.000 $518,000 $155,000 $0 $0 $207.000 $104,000 $176,100 $1,937,100 Date:

Remarks



### (CC) X (CC)X

(PEC)X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X @10% 

### 8/20/2008

10.0% 6.0%

5.0% 10.0% 10.0% 3.0% 0.0% 0.0% 4.0% 2.0%

Chemical Pump Enclosure Buildings Total direct costs (DC) (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (lC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) (DC) 

### + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs
Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (lDAC)

Total Annual Cost (TAC) (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor



# 9/5/2008 $100,000 $0 $7,212,000

$505,000 $216,000 $721,000 Included $216,000 $35,000 $1,082,000 $2,775,000

$2,000,000

$150,000 $2,150,000

$12,137,000



### $100,000 $649,000 $749,000

$1,839,000 $5,000 $4,000 $1.848,000

$2,597,000 $3,769,000

$1,939,000 $1,939,000

$4,536,000 

### $5,708,000 Eng. Estimate 

### NIA

(DC) X 7.0% (DC) X 3.0% (DC) 

### X 10.0% B&V labor market review (DC) 

### X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC) X 9.0%

from CUECost from CUECost from CUECost

1,45129 Levelization Factor

15% interest rate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5 2008 Update to BART SCR and SCNR Cost Estimates

from recent vendor quote from CUECost from CUECost 

## Four Corners NOx Compliance· Cost Analysis Unit 4 & 5 Technology: Selective Non-Catalytic Reduction Costs are per Unit 

### Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air pre heater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC) 

### $

$7,232,000

$802,000 $1,740,000 $9,774,000

$977,000 $586,000 $11,337,000

$567,000 $1,134,000 $1,134,000

$340,000 $0 $0 $453,000 $227,000 $385,500 $4,240,500 

### Date:

Remarks

(CC) X (CC)X

(PEC) X (PEC)X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X @10% 8/20/2008

10.0% 6.0%

5.0% 10.0% 10.0% 3.0% 0.0% 0.0% 4.0% 2.0%

Control System and Communication Modification Chemical Pump Enclosure Total direct costs (DC) 

# = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) 

# = (DC) 

### + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent AUXiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

# = (DAC) + (IDAC) Total Annual Cost with Levelization Factor



# 9/5/2008 $1,500,000 $100,000 $17,178,000

$1,202,000

$515,000 $1,718,000

Included $515,000

$35,000 $2,577,000 $6,562,000

$2,000,000

$150,000 $2,150,000



### $25,890,000

$100,000 $1,546,000 $1,646,000

$4,876,000 $5,000 $4,000 $4,885,000

$6,531,000 $9,478,000

$4,137,000 $4,137,000



### $10,668,000 $13,615,000 Eng. Estimate Eng. Estimate

(DC)X 7.0% (DC)X 3.0% (DC) X 10.0% B&V labor market review (DC) 

### X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC)X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5



# Appendix B 2008 Update to BART SCR and SCNR Cost Estimates



# BART SCR and SNCR Cost Estimates from December 4, 2007
BART Engineering Analysis

9/5/200866 Selective Catalytic Reduction 

### Four Corners BART Analysis· Cost Analysis Unit: 1 Case Identifier: Technology: Date:

# 6/7/20~
Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing and Installation Urea handling and Injection Initial catalyst lmtrat Urea Flue gas handling and ductwork New Air Preheater New FD Fans FD Fan VFD New fD Fans 10 Fan VFO New Electrical Substation MIsc. equipment Instruments and controls Subtotal (CC) $3,516,000 $2,175,000 $1,695,000

$286,000 $2,475,000 $2,100,000 $1,550,000 $1,740,000 $2,800,000 $2,700,000 $1,500,000

$270,000 $123,000 $22.930.000 adjusted from CUECost adjusted from CUECost from CUECost adjusted from CUECost adjusted from CUECost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate from CUECost from CUECost

Taxes Freight
Total Cost (PEC) $2,293,000 $1.147,000

$26,370,000 (CC) X (CC)X 10.0% 5.0%

Direct instatlatrcn costs Foundaucn & supports Handling & erection Electrical Piping !nsulation Painting Demolition Relocation Taxes Tota! direct installation costs (DIG)

Site preparation BUildings Total direct costs (DC) = (PEC) • (OIC)

I ndirect Costs Engineering Owners Cost Construction and field expenses Construction Indirect Start-up TUning Performance tesl Contingencies Total mdrrect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) = (DC) • (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & matenals Total fixed annual costs

vanabte annual costs Reagent Auxiliary and 10 fan power Steam Catalysl replacement Catalyst disposal Total vanable annual costs

Total rnrect annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAC) = (OAC). (IOAC) Total Annual Cost with Levelizatrcn Factor $9,230,000 $6.593,000 $5,274,000

$659,000 $2,637.000

$264,000 $1,500,000

$396,000 $2.655,300 $29,208.300

$2,000.000

$500,000 $58,078,000

$8,712,000 $1,742,000 $5,808,000

Included $1,742,000

$25,000 $90,000 $8,711,700 $26,831.000

$1,176,000 $2.000,000

$150,000 $3,326,000

588,235,000

$68,000 $1,742.000 $1,810,000

$871,000 $442,000 $51,000 $565.000 $217.000 $2,146,000

$3.956,000 $5,741,000

$14,100,000 $14.100,000

518,056,000 $19,841,000 (PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEG) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC) X 15.0% (OC)X 3.0% (DC) X 10.0% B&V labor market review (OC)X 3.0% Eng. Estrmate Eng. Esumate (DC) X 15.0%

from CUECost (DC) X 30%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.4512905 Levelrzatron Factor

15% Interest rate & 20 year life68 Selective Catalytic Reduction 

### Four Corners BART Analysis - Cost Analysis Unit: 2 Case Identifier: Technology: Date: 6/7/2007

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equrpment costs Reactor housingand installation Urea handling and Injection Initial catalyst Initial Urea Flue gas handlingand ductwork New Air Pre heater New FD Fans FD Fan VFD New \0 Fans 10 Fan VFD New Electrical Substation MIsc. equipment Instruments and controls Subtotal (CC) $3,515,985 $1,974,794 $1,694,772

$234,341 $4,950,000 $2,100,000 $1,550,000 $1,740,000 $2,800,000 $2,700,000 $1,000,000

$269,646 $121,477 $24,651,016 adjusted from CUECost adjusted from CUECost fromCUECost adjusted from CUECost adjusted from CUECost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate from CUECost from CUECost

Taxes Freight

Totat Cost (PEC) $2,465,102 $1,232,551

$28,348,668 (CC) X (CC) X 10.0% 5.0%

DIrect Installationcosts Foundation & supports Handling & erecuon Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct Installationcosts (DIC)

Site preparatrcn BUildings Total duect costs (DC) = (PEC) + (DIG)

Indirect Costs Engineering Owners Cost Constructionand field expenses Construction mdrrect Start-up Tuning Periormance test Contingencies Total indirectcosts (IC)

uruntended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Umntended Consequences (UC)

Total Capilal Investment (TCI) = (DC) + (IG)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual casts (IDAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) Total Annual Cost WithLevehzation Factor $9,922,034 $7,087,167 $5,669,734

$708,717 $2,834,867

$283,487 $1,500,000

$425,230 $2,843,124 $31,274,359

$2,000,000

$500,000 $62,123,000

$9,318,450 $1,863,690 $6,212,300

Included $1,863,690

$25,000 $90,000 $9,318,450 $28,692,000

$1,251,000 $2,000,000

$150,000 $3,401,000

$94,216,000

$67,581 $1,863,690 $1,931,271

$712,786 $441,773 $42,084 $564,924 $217,000 $1,978,567

$3,909,838 $5,674,311

$15,056,000 $15,056,000

$18,966,000 $20,730,311 (PEC) X 35.0% (PEG) X 25.0% (PEC) X 20,0% (PEC) X 2.5% (PEC) X 10,0% (PEG) X 10% Eng. Estimate (PEC) X 1,5% @10%

Estimate Estimate

(DC) X 15.0% (DC)X 3,0% (DC)X 10,0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 150%

from CUECost (DC)X 3,0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.4512905 Levelrzatron Factor

15% Interest rate & 20 year life68 Selective Catalytic Reducuon 

### Four Corners BART Analysis· Cost Analysis Unit: 3 Case Identifier: Technology: Date: 6r712007

Cost Item 

### SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing and mstallauon Urea handling and Injection Initial catalyst Initial Urea Flue gas handling and ductwork New Air Pre heater New FD Fans FD Fan VFD New 10 Fans 10 Fan VFD New Electrical Substation MIsc. equipment Instruments and controls Subtotal (CC) $3,979,000 $2,139,000 $2,182,000

$277,000 $2,951,000 $2,600,000 $1,880,000 $1,800,000 $3,360,000 $3,240,000 $1,000,000

$297,000 $140,000 $25,845,000 adjusted from CUECost adjusted from CUECost from CUECosl adjusted from CUECost adjusted from C UECost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate from CUECost from CUECost

Taxes Freight

Total Cost (PEC) $2,585,000 $1,292,000

$29,722,000 (CC)X (CC)X 10.0% 5.0%

Direct installation costs Eoundauon & supports Handling & erection Eiectncat PIping Insulation Painting Demolition Relocation Taxes Total direct Installation costs (DIC)

Site preparation Buildings Total direct costs (DC) = (PEC) + (OIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction Indirect Start-up Tuning Performance test Contingencies Total Indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = (DC) 't' (1C)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & matenals Total fixed annual costs

Variable annual costs Reagent Auxiliary and ID fan power Steam Catalyst replacement Catalyst disposal Total vanable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAC) = (OAC) + (IOAC) Total Annual Cost With Levehzafion Factor $10,403,000 $7,431,000 $5,944,000

$743,000 $2,972,000

$297,000 $1,500,000

$446,000 $2,973,600 $32,709,600

$2,000,000

$500,000 $64,932,000

$7,792,000 $1,948,000 $6,493,000

Included $1,948,000

$25,000 $90,000 $9,740,000 $28,036,000

$1,572,000 $2,000,000

$150,000 $3,722,000

$96,690,000

$76,000 $1,948,000 $2,024,000

$842,000 $583,000 $50,000 $727,000 $280,000 $2,482,000

$4,506,000 $6,540,000

$15,451,000 $15,451.000

$19,957,000 $21,991,000 (PEG) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEG) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 15% @10%

Estimate Estimate

(DC) X 12.0% (DC) X 3.0% (OC)X 10.0% 8&V laocr market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.4512905 Levelrzatron Factor

15% Interest rate & 20 year life48 Selective Catalytic Reduction Four Corners BART Analysis

- Cost Analysis Unit: 4 & 5 Case Identifier: Technology: Date: 7/6/2007

Cost Item Costs are per Unit SCR Remarks

CAPITAL COST Direct Costs Purcnased equipment costs Reactor housing Urea handling and injection lnltial catalyst trutrer Urea Flue gas handling and ductwork New Air Preneater New 10 Fans ID Fan VFD New Erectncal Sunstatron MIsc. equipment Instruments and controls Subtotal (CC) $6,955,000 $9,000,000 $6,838,000

$734,000 $6,542,000 $13,000,000 $12,800,000 $12,000.000 $2,500,000

$506,000 $1.150,000 $72,025,000 adjusted from CUECosl Quotation and Estarrute from CUECost aojustec from CUECost adjusted from CUECost Eng. Estimate Eng. Estimate Eng. Estimate Eng Estimate from CUE Cost adjusted from CUECost

Taxes Freight

Total Cost (PEG) $7,203.000 $3,601,000

$82,829,000 (CC)X (CC) X 10.0% 5.0%

Direct Installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct Installation costs (DIG)

Site preparation BUildings Total direct costs (DC) = (PEG) -to (DIG)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction Indirect Start-up Tuning Performance test Contingencies Total indirect costs (IG)

Unintended Consequences (UG) Side Effect Mitigation Lost Revenue NewCEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = (DC) + (IC) + (UC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total vanab!e annual costs

Total direct annual costs (DAC) TOIal direct annual costs

Indirect Annual Costs Cost for capital recovery Totelmotrect annual costs (IDAC;

Unintended Consequences (UCAC) Side Effect Mitigation Total Unintended Consequences (UCAC)

Tolal Annual Cost (TAC) = (DAC) + (IDAC) + (UCAC) Total Annual Cost WIth Levenzetion Factor $16,566.000 $33.132,000 $12,424,000 $2,071,000 $4,141,000

$828,000 $5,000,000 $2,071,000 $7,623,300 $83,856.300

$2,000,000

$500,000 $169.185.000

$8,459.000 $5,076,000 $5,076,000

lncluoed $5,076,000

$120,000 $250,000 $25,378.000 $49,435.000

$6,962,000 $14.358,000 $2,000.000

$150,000 $23,470.000

5242,090,000

$163,000 $5,076.000 $5,239.000

$2,231,000 $1,823,000

$132,000 $2,279,000 $877,000 $7,342.000

$12,581,000 $18,259,000

$38,686,000 $38,686,000

$220.000 $220,000
$51,487,000 $56.945,000 (PEC) X 200% (PEC) X 40.0% (PEC) X 15.0% (PEC) X 2.5% (PEC) X 50% (PEC)X 1.0% Eng. Estimate (PEC) X 25% @10%

Estimate Estimate

(DC) X 5.0% (DC) X 30% (DC) X 3.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

S03 Removal Extended Outage

from CUECost (DC) X 30%

from CUECost from CUECost from CUECosl from CUECost from CUECost

1.4512905 Levehzatron Factor

15% Interest rate & 20 year life

SCR designed for year-round operation. bypass dampers are not Included

### 3B Selective Non-Catalytic Reduction

from CUECost from CUECost from CUECost 

## Four Corners BART Analysis - Cost Analysis Unit: 

### 1 Case Identifier: Technology:

Cost Item



### CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

# s

$722,000 $313,000 $442,000 $1,477,000

$148,000 $89,000 $1,714,000 Date:

Remarks



### (CC)X (CC) X 

### 6/7/2007

10.0% 6.0%

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = 

### (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) 

### = (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs
Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

# = (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor $86,000 $171,000 $171,000 $51,000 $0 $0 $69,000 $34,000 $58,200 $640,200

$100,000 $0 $2,454,000

$172,000 $74,000 $245,000 Included $74,000 $35,000 $368,000 $968,000

$2,000,000

$150,000 $2,150,000

$5,572,000



### $100,000 $221,000 $321,000

$1,903,000 $5,000 $4,000 $1,912,000

$2,233,000 $3,241,000

$890,000 $890,000

$3,123,000 

### $4,131,000 (PEC) X 5.0% (PEC) X 10.0% (PEC) X 10.0% (PEC) X 3.0% (PEC)X 0.0% (PEC) X 0.0% (PEC) X 4.0% (PEC) X 2.0% @10%

Eng. Estimate 

### NIA

(DC)X 7.0% (DC) 

### X 3.0% (DC) 

### X 10.0% B&V labor market review (DC)X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC)X 9.0%

from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### 3B Selective Non-Catalytic Reduction 

## Four Corners BART Analysis - Cost Analysis Unit: 2 Case Identifier: Technology;

Cost Item 

### $ Date:

Remarks 6/7/2007

CAP ITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air pre heater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) 

# = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = 

### (DC) + (IC) $699,000 from CUECost $256,000 from CUECost $442,000 from CUECost $1,397,000

$140,000 (CC)X 10.0% $84,000 (CC)X 6.0% $1,621,000

$81,000 (PEC) X 5.0% $162,000 (PEC) X 10.0% $162,000 (PEC) X 10.0% $49,000 (PEC) X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $65,000 (PEC) X 4.0% $32,000 (PEC) X 2.0% $55,100 @10% $606,100

$100,000 Eng. Estimate $0 NIA $2,327,000

$163,000 (DC)X 7.0% $70,000 (DC) X 3.0% $233,000 (DC)X 10.0% Included B&V labor market review $70,000 (DC)X 3.0% $35,000 Eng. Estimate $349,000 (DC)X 15.0% $920,000

$2,000,000

$150,000 $2,150,000

$5,397,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

# = (DAC) + (IDAC) Total Annual Cost with Levelization Factor $100,000 $209,000 $309,000

$1,557,000 $5,000 $4,000 $1,566,000

$1,875,000 $2,721,000

$862,000 $862,000

$2,737,000 $3,583,000 Estimate (DC)X 9.0%

from CUECost from CUECosl

1.45129 Levelization Factor

15% interest rate & 20 year life

### 3B Selective Non-Catalytic Reduction 

## Four Corners BART Analysis· Cost Analysis Unit: 

### 3 Case Identifier: Technology:

Cost Item 

### $ Date:

Remarks 

### 6/7/2007

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & 

### supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)
Total Capital Investment (TCI) 

# = (DC) + 

### (IC) $724,000 from CUECost $302,000 from CUECost $538,000 from CUECost $1,564,000

$156,000 (CC)X 10.0% $94,000 (CC)X 6.0% $1,814,000

$91,000 (PEC) X 5.0% $181,000 (PEC) X 10.0% $181,000 (PEC) X 10.0% $54,000 (PEC) X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $73,000 (PEC) X 4.0% $36,000 (PEC) X 2.0% $61,600 @10% $677,600

$100,000 Eng. Estimate $0 NIA $2,592,000

$181,000 (DC)X 7.0% $78,000 (DC)X 3.0% $259,000 (DC)X 10,0% Included B&V labor market review $78,000 (DC)X 3.0% $35,000 Eng. Estimate $389,000 (DC)X 15.0% $1,020,000

$2,000,000

$150,000 $2,150,000


### $5,762,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = 

### (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor $100,000 $233,000 $333,000

$1,839,000 $5,000 $4,000 $1,848,000

$2,181,000 $3,165,000

$921,000 $921,000



### $3,102,000 $4,086,000 Estimate (DC)X 9.0%

from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### 3B Selective Non-Catalytic Reduction 

## Four Corners BART Analysis - Cost Analysis Unit: 

### 4 & 

### 5 Case Identifier: Technology: Costs are per Unit 

### Cost Item 

### $ Date:

Remarks 7/6/2007

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage. handling, injection 

### & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Fou ndation 

### & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIG)

Control System and Communication Modification Chemical Pump Enclosure Total direct costs (DC) = 

### (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (lC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = 

### (DC) + (IC) $924.000 from CUECost $802,000 from CUECost $1,304,000 from CUECost $3,030,000

$303,000 (CC)X 10.0% $182,000 (CC)X 6.0% $3,515,000

$176,000 (PEC)X 5,0% $352,000 (PEC) X 10.0% $352,000 (PEC) X 10,0% $105,000 (PEC) X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $141,000 (PEC) X 4.0% $70.000 (PEC) X 2.0% $119.600 @10% $1,315,600

$1,500,000 Eng. Estimate

$100,000 Eng. Estimate $6,431.000

$450,000 (DC)X 7.0% $193,000 (DC) X 3.0% $643,000 (DC) X 10.0% Included B&V labor market review $193,000 (DC) X 3.0% $35,000 Eng. Estimate $965,000 (DC) X 15.0% $2,479,000

$2,000,000

$150,000 $2,150,000



### $11,060,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = 

### (DAC) + 

### (IDAG) Total Annual Cost with Levelization Factor $100,000 $579.000 $679,000

$4,876,000 $5,000 $4,000 $4,885,000

$5,564,000 $8,075,000

$1.767,000 $1,767.000



### $7,331,000 $9,842,000 Estimate (DC)X 9.0%

from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

# Arizona Public Service (APS) Four Corners Units 1 through 5



# Appendix C 2008 Update to BART SCR and SCNR Cost Estimates



# Industry Material Price Escalation Summary

9/5/2008ArizonaPublicService(APS)FourCornersUnits1through52008UpdatetoBARTSCR and SCNRCostEstimatesIndustryMaterialPriceEscalationSummaryDramaticescalationobservedduring2005-20089/5/2008

# Arizona Public Service (APS) Four Corners Units 1 through 5



# Appendix D 2008 Update to BART SCR and SCNR Cost Estimates



# Revised BART Engineering Analysis Section 6 Tables and Figures

9/5/2008ArizonaPublicServiceFourCornersUnits 1through5Cost-EffectivenessandImpactAnalysis(Step 4)Table6-2Unit 1 - NOxCost-EffectivenessSummaryEmissionExpectedTotalIncrementalPerformanceExpectedEmissionsAnnualizedCost-CostLevelEmissionsReductionsCapitalCosts CostEffectiveness EffectivenessAllFeasibleTechnologies(lb/mmBtu)Rate (lb/h)(tons/yr)(x$1,000)(x$1,000)($/ton)($/ton)Unit 1NO,(resultantemissionsbased oncurrentO.781b/mmBtu)COS0.72 1,341 4561,429314688--(I)SNCR0.56 1,0431,622 10,8664,3142,660--(I)MobotecROT AMIX0.56 1,043 1,6227,282 4,277 2,637--(I)NewLNBs0.43 801 2,5694,109 922359288(2)NewLNB,OFA0.33 615 3,2985,752 1,293392509(3)New LNBs andSNCR0.325963,37113,7963,8491,142--(I)NewLNBs, OFA, and ROT AMIX0.30559 3,517II,I05 3,508998--(I)MobotecROFA0.28522 3,662 9,6572,956807--(I)NewLNBs, OFA, andSNCR0.26 484 3,808 15,0703,785 994--(I)NewLNBs, OFA, and HERT0.203734,24510,762 2,816 6631,608(4)MobotecROFA and ROT AMIX0.19 3544,31813,672 4,223 97819,308(5)SCR0.08 145 5,134 110,66422,2974,34322,146(6)New LNBs, and SCR0.06112 5,266 111,60921,7644,13318,517(6)NewLNBs, OFA, and SCR0.06 112 5,266 112,05821,6854,11818,433(6)(')Incrementalcostundefined.(2)Incremental costcomparedto COS.(3)Incremental costcomparedto LNB.(4)lncremental costcomparedtoLNB/OFA.(5)Incremental costcomparedto LNB andOFA+HERT.(6)Incremental costcomparedtoMobotecROFA/ROTAMIX.0918086-5ArizonaPublicServiceFourCornersUnits 1through5Cost-EffectivenessandImpactAnalysis(Step 4)2500022500200001) Neural Network2) Low NOx Burners (LNB)3) Selective Non-Catalytic Reduction (SNCR)4) Mobotec ROTAMIX5) Mobotec ROFA4,5) Mobotec ROFA and ROTAMIX6) Selective Catalytic Reduction (SCR)7) High Energy ReagentTechnology(HERT)6B•6L6LO6,0005,0004,0003L 4L 3LO•.5B·•3,000Emissions Reduction(ton/yr)2,000-4B3B•1,000---------1B50002500]Io17500 IB) BaselineL) LNBLO) LNB+OFA15000I,•Baseline•LNB12500II•LNB OFAsoo....1iioU"CII- - -Presumptive Limit£ILeast Cost Envelope10000I7500Figure 6-1Unit 1 - NOxCost-Effectiveness0918086-6ArizonaPublicServiceFourCornersUnits1through5Cost-EffectivenessandImpactAnalysis(Step 4)Table6-3Unit2 -NOxCost-EffectivenessSummaryEmissionExpectedTotalIncrementalPerformanceExpectedEmissionsAnnualizedCost- CostLevelEmissionsReductionsCapitalCostsCostEffectivenessEffectivenessAllFeasibleTechnologies(lb/mmBtu)Rate (lb/h)(tons/yr)(x$1,000)(x$1,000)($/ton)($/ton)Unit2 NOx(resultantemissionsbasedoncurrent0.64Ib/mmBtu)COS0.60 1,118 3021,429 3141,039--(1)SNCR0.46 857 1,349 10,7423,941 2,922--(1)MobotecROT AMIX0.45 8381,4247,2824,2773,004--(1)NewLNBs0.43 801 1,5734,109922586478(2)NewLNB,OFA0.33 615 2,3215,752 1,293 557496(3)NewLNBs andSNCR0.32596 2,396 14,104 3,918 1,635--(I)NewLNBs, OFA, andROTAMIX0.30 5592,54511,1053,508 1,378--(I)MobotecROF A0.28 522 2,695 9,6572,956 1,097--(1)NewLNBs, OFA, andSNCR0.264842,84415,3603,851 1,354--(1)NewLNBs, OFA, andHERT0.20 3733,293 10,7622,8168551,567(4)MobotecROF A and ROTAMIX0.19 354 3,368 13,5324,191 1,24418,389(5)SCR0.061194,310119,01023,6345,48420,644(6)NewLNBs and SCR0.06112 4,340121,06623,4685,40819,832(6)NewLNBs, OFA, and SCR0.061124,340121,49623,385 5,38919,746(6)(1)Incrementalcostundefined.(2)Incremental costcomparedto COS.(3)Incremental costcomparedto LNB.(4)Incremental costcomparedtoLNB/OFA.(5)Incremental costcomparedto LNB andOFA+HERT.(6)Incremental costcomparedtoMobotecROFAlROTAMIX.0918086-7Arizona Public ServiceFour Corners Units 1through5Cost-EffectivenessandImpactAnalysis(Step 4)250001,--,-,---,-,-------------------,'1) NeuralNetworkI2) LowNOxBurners(LNB)22500SelectiveNon-CatalyticReduction(SNCR)4)MobotecROT AMIX5)MobotecROFA2 014,5)MobotecROFAandROTAMIX00 0-16)SelectiveCatalyticReduction(SCR)7) HighEnergyReagentTechnology(HERT)17500iB)BaselineL)LNBSILO)LNB + OFA15000•Baseline..1/1•LNB0o12500 .:&LNBOFA'C- - -PresumptiveLimits'1aE10000LeastCostEnvelope.l:-c:(750050002500.1B4B3B.•2L3L• 4L 3LO• 5B&•2LO6L6LOoo5001,0001,500 2,000 2,5003,000 3,5004,0004,5005,000EmissionsReduction(ton/yr)Figure 6-2Unit 2 - NOxCost-Effectiveness0918086-8ArizonaPublicServiceCost-EffectivenessandFourCornersUnits1through5ImpactAnalysis(Step4)Table6-4Unit3 -NOxCost-EffectivenessSummaryEmissionExpectedTotalIncrementalPerformanceExpectedEmissionsAnnualizedCost-Cost -LevelEmissionsReductionsCapitalCosts CostEffectivenessEffectivenessAllFeasibleTechnologies(lb/mmBtu)Rate (lb/h)(tons/yr)(x$1,000)(x $1,000)($/ton) ($/ton)Unit3 NOx(resultantemissions based oncurrent0.59Ib/mmBtu)COS0.56 1,344 2571,4293141,221--(1)SNCR0.46 1,104 1,217 12,1374,5363,727--(I)MobotecROTAMIX0.45 1,0801,313 7,4364,3113,283--(I)NewLNBs0.43 1,0321,505 3,999 897596467(2)NewLNB,OFA0.33 7922,4654,7011,055 428165(3)NewLNBs andSNCR0.32 768 2,561 15,4094,520 1,765--(I)NewLNBs, OFA, and ROT AMIX0.307202,753 11,2153,5361,284--(I)MobotecROFA0.28672 2,94510,7053,4061,157--(I)NewLNBs, OFA, andSNCR0.26 624 3,137 15,6264,2101,342--(I)NewLNBs, OFA, andHERT0.204803,71310,0762,961 7981,527(4)MobotecROFA and ROT AMIX0.19 456 3,809 13,6894,8581,27519,763(5)SCR0.06 144 5,057 113,08423,1734,58314,677(6)NewLNBs and SCR0.06144 5,057 115,42023,0104,55014,547(6)NewLNBs, OFA, and SCR0.06144 5,057 114,85122,7294,49514,321(6)(I'Incrementalcostundefined.(2)Incremental costcomparedto COS.(3)Incremental costcomparedto LNB.(4)lncremental costcomparedtoLNB/OFA.(5)lncremental costcomparedto LNB andOFA+HERT.(6)Incremcntal costcomparedtoMobotecROFA/ROTAMIX.0918086-9ArizonaPublicServiceFourCornersUnits1through5Cost-EffectivenessandImpactAnalysis(Step 4)6B6L6LO1)NeuralNetwork2) LowNOxBurners(LNB)3)SelectiveNon-CatalyticReduction(SNCR)4)MobotecROTAMIX5)MobotecROFA4,5)MobotecROFAandROTAMIX6)SelectiveCatalyticReduction(SCR)7) HighEnergyReagentTechnology(HERT)2000022500250001..•.I17500lB)BaselineL) LNBLO) LNB +OFAsoo....o1l:.i15000••12500•-10000-75005000i2500-1BA.-0-0BaselineLNBLNBOFAPresumptiveLimitsLeastCostEnvelope3B 4B••1,0002L2,0003L 3LO• 4L 5B•••2LO3,000EmissionsReduction(ton/yr)4,0005,0006,000Figure 6-3Unit 3 - NOxCost-Effectiveness0918086-10ArizonaPublicServiceFourCornersUnits1through5Cost-EffectivenessandImpactAnalysis(Step 4)Table6-5Units4and5 - NOxCost-EffectivenessSummary-ValuesareperUnitEmissionExpectedTotalIncrementalPerformanceExpectedEmissionsAnnualizedCost-CostLevelEmissionsReductionsCapitalCostsCostEffectivenessEffectivenessAllFeasibleTechnologies(lb/mmBtu)Rate(lb/h)(tons/yr)(x$1,000)(x$1,000)($/ton)($/ton)Units4and5NO,(resultantemissionsbasedoncurrent0.49Ib/mmBtu)COS0.473,6696331,557348550--(1)SNCR0.382,9273,13825,89010,6683,399--(I)NewLNBs0.45 3,513 1,160 8,8281,9911,7163,115(2)NewLNB,OFA0.35 2,732 3,798 15,2603,447908552(3)NewLNBsandSNCR0.32 2,4984,58934,08811,503 2,507--(I)NewLNBs,OFA,andSNCR0.262,030 6,17139,08411,2211,8183,275(4)SCR0.0646811,445265,40655,7554,8718,444(5)NewLNBsandSCR0.0646811,445273,89256,8834,9708,657(5)NewLNBs,OFA,andSCR0.0646811,445279,44457,2375,0018,725(5)(IJlncrementalcostundefined.(2)lncremental costcomparedto COS.(3)lncremental costcomparedto LNB.(4)lncremental costcomparedtoLNB/OFA.(5)lncremental costcomparedto LNB andOFA+SNCR.0918086-11Arizona Public ServiceFour Corners Units 1through5Cost-EffectivenessandImpactAnalysis(Step 4)4L·4LO4BI)NeuralNetwork2) Low NOxBurners(LNB)3)Selective Non-CatalyticReduction(SNCR)4)SelectiveCatalyticReduction(SCR)60000---;-:-;-:--;-:------------,50000IB)BaselineL)LNBLO)LNB+OFA•Baseline40000•LNBSALNBOFA00- - -PresumptiveLimit...-ILeastCostEnvelopefIl0U30000'tIII>.!l!16:::J«20000-14,00012,00010,0008,0003LO6,0004,0003B•2,0002L_••o10000EmissionsReduction(ton/yr)Figure 6-4Units 4 and 5 - NOxCost-Effectiveness0918086-12

# Attachment B

## Budgetary Quotation 

# Four Corners NOx Compliance - Cost Analysis Unit 1 Technology: Low NOx Burners (LNB)

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEG) 

## $

$1,113,000 $1,113,000

$111,000

$67,000 $1,291,000 Date:

Remarks

(CC) X (CC)X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications Flame Scanning System Total direct costs (DC) = (PEC) + 

## (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) = (DC) + 

## (IC) $0 $627,000 $103,000

$73,000 $803,000

$500,000 $350,000 $2,944,000

$206,000

$88,000 $294,000 Included $100,000

$35,000 $442,000 $1,165,000

$4,109,000 N/A Budgetary Quotation (PEC) 

## X 8.0% @10%

APS Eng. Estimate Eng. Estimate

(DC) 

## X 7.0% (DC) 

## X 3.0% (DC) 

## X 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) 

## X 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $265,000 $265,000

N/A (DC) 

## X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

## = (DAC) + 

## (IDAC) Total Annual Cost with Levelization Factor $265,000 $385,000

$657,000 $657,000

$922,000 $1,042,000 1.451 Levelization Factor

15% interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance

- Cost Analysis Unit 1 Technology: Low NOx Burners (LNB) and Overfire Air (OFA)



## Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

## $

$1,530,000 $1,530,000

$153,000

$92,000 $1,775,000 

## Date:

Remarks

(CC)X (CC) X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications CFD Flow Model Flame Scanning System Control System and Communication Modification Total direct costs (DC) 

## = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) 

## = (DC) + (IC) $0 $904,000 $142,000 $105,000 $1,151,000

$500,000

$35,000 $350,000 $350,000 $4,161,000

$291,000 $125,000 $416,000 Included $100,000

$35,000 $624,000 $1,591,000



## $5,752,000 N/A Budgetary Quotation (PEC) 

## X 8.0% @10%

APS Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

(DC) 

## X 7.0% (DC) 

## X 3.0% (DC) 

## X 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) 

## X 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

. Variable annual costs Total variable annual costs $374,000 $374,000

N/A (DC)X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

## = (DAC) + (IDAC) Total Annual Cost with Levelization Factor $374,000 $543,000

$919,000 $919,000



## $1,293,000 $1,462,000 1.451 Levelization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 1 Technology: Selective Non-Catalytic Reduction



### Cost Item 

### $ Date:

Remarks 

### 8/20/2"'0'-'0-'-8

_

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Eleelrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DiC)

Chemical Pump Enclosure Buildings Total direct costs (DC) 

# = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCi) = (DC) 

### + (IC) $2,981,000 from recent vendor quote $313,000 from CUECost $590,000 from CUECost $3,884,000

$388,000 (CC)X 10.0% $233,000 (CC) X 6.0% $4,505,000

$225,000 (PEC) X 5.0% $451,000 (PEC) X 10.0% $451,000 (PEC) X 10.0% $135,000 (PEC) X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $180,000 (PEC) X 4.0% $90,000 (PEC) X 2.0% $153,200 @lO% $1,685,200

$100,000 Eng Estimate $0 NIA $6,290,000

$440,000 (DC)X 7.0% $189,000 (DC)X 3.0% $629,000 (DC) X 10.0% Included B&V labor market review $189,000 (DC)X 3.0% $35,000 Eng. Estimate $944,000 (DC)X 15.0% $2,426,000

$2,000,000

$150,000 $2,150,000



### $10,866,000

ANNUAL COST Direel Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capitai recovery Total indireel annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $100,000 $566,000 $666,000

$1,903,000 $5,000 $4,000 $1,912,000

$2,578,000 $3,741,000

___ $:<-c 1,736,000 $1,736,000



### $4,314,000 $5,477,000 Estimate (DC)X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 1 Technology: -=L"'N:=B:::/S"'Nc.:C=R'-----

_
Cost Item 

### $ Date:

Remarks 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = 

### (PEC) + 

### (DIC) $2,981,000 from recent vendor quote $313,000 from CUECost $590,000 from CUECost $3,348,000

$335,000 (CC)X 10.0% $201,000 (CC)X 6.0% $3,884,000

$194,000 (PEC)X 5.0% $388,000 (PEC)X 10.0% $388,000 (PEC)X 10.0% $117,000 (PEC)X 3.0% $0 (PEC)X 0.0% $0 (PEC)X 0.0% $155,000 (PEC)X 4.0% $78,000 (PEC) X 2.0% $132,000 @10% $1,452,000

$100,000 Eng. Estimate $0 N/A $5,436,000

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) = (DC) + 

### (IC) LNB Capital Investment (TCI) = (DC) + 

### (IC) Total Capital Investment (TCI) = (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $381,000 $163,000 $544,000 Included $163,000 $35,000 $815,000 $2,101,000

$2,000,000

$150,000 $2,150,000

$9,687,000 $4,109,000 $13,796,000

$100,000 $489,000 $589,000

$1,046,000 $5,000 $4,000 $1,055,000

$1,644,000 $2,386,000

$2,205,000 $2,205,000

$3,849,000 $4,591,000 (DC) X 7.0% (DC) X 3.0% (DC)X 100% B&V labor market review (DC) X 

### 3.0% Eng. Estimate (DC) X 

### 15.0%

Estimate (DC) X 9.0%

from CUECost from CU ECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 1 Technology: .=L;;..N:.=B;;../O:::..:...FA/:...:..::S:.:.N.:.:C::.:R-'---

_
Cost Item 

### $ Date:

Remarks 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) 

### = (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) = (DC) + 

### (IC) LNB/OFA Capital Investment (TCI) = (DC) + 

### (IC) Total Capital Investment (TCI) = (DC) + 

### (IC) $2,981,000 from recent vendor quote $313,000 from CUECost $590,000 from CUECost $3,179,000

$318,000 (CC)X 10.0% $191,000 (CC)X 6.0% $3,688,000

$184,000 (PEC)X 5.0% $369,000 (PEC) X 10.0% $369,000 (PEC) X 10.0% $111,000 (PEC)X 3.0% $0 (PEC)X 0.0% $0 (PEC) X 0.0% $148,000 (PEC)X 4.0% $74,000 (PEC) X 2.0% $125,500 @10% $1,380,500

$100,000 Eng. Estimate $0 N/A $5,169,000

$362,000 (DC)X 7.0% $155,000 (DC)X 3.0% $517,000 (DC)X 10.0% Included B&V labor market review $155,000 (DC)X 3.0% $35,000 Eng. Estimate $775,000 (DC)X 15.0% $1,999,000

$2,000,000

$150,000 $2,150,000



### $9,318,000 $5,752,000 $15,070,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor $100,000 $465,000 $565,000

$803,000

$5,000 $4,000 $812,000

$1,377,000 $1,998,000

$2,408,000 $2.408,000



### $3,785,000 $4,406,000 Estimate (DC)X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### Four Corners NOx Compliance - Cost Analysis Unit 1 Technology: LNB, OFA and HERT

Cost 

### Item 

### $ Date:

Remarks 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs High energy reagent technology (HERT) Initial ammonia inventory 

### Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes 

### Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect 

### Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

Low Nox Bumer and Overfire Air Capital Investment Total Capital Investment (TCI) 

### = (DC) + 

### (IC) $500,000 Budgetary Quotation $132,000 from CUECost $590,000 from CUECost $1,222,000

$122,000 (CC) X 10.0% $73,000 (CC)X 6.0% $1,417,000

$71,000 (PEC) X 5.0% $142,000 (PEC) X 10.0% $142,000 (PEC) X 10.0% $43,000 (PEC) X 3.0% $0 (PEC)X 0.0% $0 (PEC) X 0.0% $57,000 (PEC) X 4.0% $28,000 (PEC) X 2.0% $48,000 @10% $531,000

$100,000 Eng. Estimate $0 NIA $2,048,000

$143,000 (DC)X 7.0% $61,000 (DC)X 3.0% $205,000 (DC)X 10.0% Included B&V labor market review $61.000 (DC) X 3.0% $35,000 Eng. Estimate $307,000 (DC)X 15.0% $812,000

$2,000,000

$150,000 $2,150,000

$5,752,000 

### $10,762,000

ANNUAL COST Direct Annual Costs Fixed annual cosls Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = 

### (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $100,000 $184,000 $284,000

$803,000

$5,000 $4,000 $812,000

$1,096,000 $1,591,000

$1,720,000 $1,720,000



### $2,816,000 $3,311,000 Estimate (DC) X 9.0%

from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### Four Corners BART Analysis· Cost Analysis Unit: 1 Case Identifier: 68 Tech nology: .,S"e"le-,c"'tiv-,e"C"a::-;t-=-al"'Yt"'ic=-R"e=-d"'u-,c7: 

### uo ::: n:------ Date: 8/19/2008

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and Injection Initialcatalyst Initialurea reagent inventory Flue gas handling and ductwork Air pre heater FD fans FO fan VFD 10 fans 10 fan VFD Expansion joints Dampers Electrical equipment Misc. equipment Instruments and controls Subtotal (CC) $441,000 $2,383,000 $2,553,000

$286,000 $5,432,000 $3,122,000 $1,625,000 $1,078,000 $3,791.000 $1,725,000

$543,000 $1,357,000 $3,262,000

$292,000 $1,574,000 $29,464,000 Eng Estimate Eng Estimate Eng Estimate adjusted from CUECost Eng Estimate Eng Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

Taxes Freight

Total Cost (PEC) $2,946,000 $1,473,000

$33,883,000 (CC)X (CC)X 10.0% 5.0%

Direct installation costs Foundation & supports Handling & erection Electrical Pipmg Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIG)

Site preparation BUildings Total direct costs (DC) 

## = (PEC) + (OIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Contingencies Totar Indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

Total CapitalInvestment (TCI) 

## = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & matenats Total fixed annual costs

Variable annual costs Reagent AUXiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Totat mdirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (OAC) + (IOAC) Total Annual Cost with l.evelrzation Factor $11,859,000 $8,471,000 $6,777,000

$847,000 $3,388,000

$339,000 $1,500,000

$508,000 $3,368,900 $37,057,900

$2,000,000

$500,000 $73,441,000

$11,016,000 $2,203,000 $7,344,000

Included $2,203,000

$25,000 $90,000 $11,016,000 $33,897,000

$1,176,000 $2,000,000

$150.000 $3,326,000

$110,664,000

$68,000 $2,203,000 $2,271.000

$871.000 $442.000 $51.000 $706.000 $272.000 $2,342.000

$4.613.000 $6.695.000

$17,684,000 $17.684,000

$22,297,000 $24,379.000 (PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC)X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC) X 15.0% (DC) X 3.0% (OC)X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECosl from CUECosl from CUE Cost from CUE Cost from CUE Cost

1.45129 t.eveuzauon Factor

15% interest rate & 20 year life

### Four Corners BART Analysis. Cost Analysis Unit: 1 Case Identifier:**76~S==,----** 

## _ Technology: ..:oL"N.o:S"/S"C"R-'---

_ Date: 9/17/2008

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and mjection Initial catalyst Initial urea reagent inventory Flue gas handling and ductwork Air pre heater FD fans FD ran VFD 10 fans ID fan VFD Expansion joints Dampers Electncal equipment Misc. equipment Instruments and controls Subtotal (CC) $441,000 $2,383,000 $2,553,000

$286,000 $5,432,000 $3,122.000 $1,625.000 $1,078.000 $3,791.000 $1.725.000

$543.000 $1,357.000 $3,262.000

$292.000 $1,574.000 $28.543.000 Eng. Estimate Eng. Estimate Eng. Eshrnate adjusted from CUECost Eng Estimate Eng. Estimate Eng Estimate Eng Estimate Eng. Estimate Eng Estimate Eng Estimate Eng. Estimate Eng Esumate Eng Estimate Eng Estimate

Taxes Freight

Total Cost (PEC) $2.854,000 $1,427,000

$32,824,000 (CC)X (CC)X 10.0% 5.0%

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct Installation costs (DIG)

Site preparation Buildings Total direct costs (DC) ; (PEC) + (DIC)

Indirect Costs Engineenng Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance lest Contingencies Total mdrrect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Umntended Consequences (UC)

SCR Capital Investment (TCI) ; (DC) + (IC) LNS Capital Investment (TCI) ; (DC) + (IC) Total Capital Investment (TCI) ; (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Opera ling labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total vanable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAC); (DAC) + (IDAC) Total Annual Cost with Levelization Factor $11,488,000 $8,206,000 $6,565,000

$821,000 $3,282,000

$328,000 $1,500,000

$492,000 $3,268,200 $35,950,200

$2,000,000

$500,000 $71,274,000

$10,691,000 $2,138,000 $7,127,000

Included $2,138,000

$25,000 $90,000 $10,691,000 $32,900,000

$1,176,000 $2,000,000

$150,000 $3,326,000

$107,500,000

$4,109,000 $111.609,000

$68,000 $2,138,000 $2,206,000

$479,000 $442,000 $28,000 $559,000 $215,000 $1.723.000

$3.929.000 $5.702.000

$17,835,000 $17,835,000

$21,764,000 $23,537,000 (PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC) X 15.0% (DC) X 30% (DC) X 100% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% Interest rate & 20 year life

### Four Corners BART Analysis

- Cost Analysis Unit: 1 Case Identifier: -;6"'S7;;-,===,---

_ Technology: cLo:.N"So:./O=F AC"I-"S-"C"-R'----

_ Date: 9/17/2008

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and Injection Initial catalyst Initial urea reagent Inventory Flue gas handling and ductwork Air pre heater FD fans FD fan VFD ID fans 10 fan VFD Expansion jomts Dampers Electrical equipment Misc. equipment Instruments and controls Sublolal (CC)

Taxes Freight

Tolal Cost (PEC)

Direct mstaneuon costs Foundation & supports Handling & erection Electrical Piping lnsulaucn Pamtmq Demolition Relocation Taxes Total direct installation costs (DIG)

Site preparation Buildings Total direct costs (DC) = (PEC) • (OIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction Indirect Start-up Tuning Performance test Conhngencies Totalmdirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

SCR Caortal tnvestrnent (TCI) = (DC) + (IC) LNS/OFA Capnallnvestment (TCI) 

## = (DC) + (IC) Total Caprtallnvestment (TCI) = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Tolal fixed annual costs

Variable annual costs Reagent Auxiliary and ID ran power Sleam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Totalmdirect annual costs (IDAC)

Tolal Annual Cost (TAC) 

### = (OAC) + (IOAC) Total Annual Cost with Levehzetion Factor $441,000 $2,383,000 $2,553,000

$286,000 $5,432,000 $3,122,000 $1,625,000 $1,078,000 $3,791,000 $1,725,000

$543,000 $1,357,000 $3,262,000

$292,000 $1,574,000 $28,194,000

$2,819,000 $1.410,000

$32.423,000

$11,348,000 $8,106,000 $6.485000

$811,000 $3,242,000

$324,000 $1,500,000

$486,000 $3,230,200 $35,532,200

$2,000,000

$500,000 $70.455,000

$10,568,000 $2,114,000 $7,046,000

Included $2,114,000

$25,000 $90,000 $10,568,000 $32,525,000

$1,176,000 $2,000,000

$150,000 $3,326,000

$106,306,000

$5,752,000 $112,058,000

$68,000 $2,114,000 $2,182,000

$367,000 $442,000 $22,000 $552,000 $213,000 $1,596,000

$3,778,000 $5.483,000

$17,907,000 $17,907,000

$21,685,000 $23.390,000 Eng Estimate Eng. Estimate Eng Estimate adjusted from CUECost Eng Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

(CC) X 100% (CC) X 5.0%

(PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC)X 1.0% Eng. Estimate (PEC)X 1.5% @10%

Estimate Eslimate

(DC) X 15.0% (DC) X 30% (DC) X 10.0% B&V labor market review (OC)X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 30%

from CUECos! from CUECost from CUECost from CUECost from CUECost

1.45129 Levelizatrcn Factor

15% interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance - Cost Analysis Unit 2 Technology: Low NOx Burners (LNB)

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

## $

$1,113,000 $1,113,000

$111,000

$67,000 $1,291,000 Date:

Remarks

(CC)X (CC)X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (OIC)

Boiler Modifications Flame Scanning System Total direct costs (DC) 

## = (PEC) + (OIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) = (DC) + (IC) $0 $627,000 $103,000

$73,000 $803,000

$500,000 $350,000 $2,944,000

$206,000

$88,000 $294,000

Included $100,000

$35,000 $442,000 $1,165,000

$4,109,000 N/A Budgetary Quotation (PEC) X 8.0% @10%

APS Eng. Estimate Eng. Estimate

(DC) X 7.0% (DC) X 

## 3.0% (DC) X 

## 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) 

## X 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $265,000 $265,000

N/A (OC)X 9.0%

Total direct annual costs (OAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IOAC)

Total Annual Cost (TAC) = (OAC) + (IOAC) Total Annual Cost with Levelization Factor $265,000 $385,000

$657,000 $657,000

$922,000 $1,042,000 1.451 Levelization Factor

15% interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance· Cost Analysis Unit 2 Technology: Low NOx Bumers (LNB) and Overfire Air (OFA)

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

## $

$1,530,000 $1,530,000

$153,000

$92,000 $1,775,000 Date:

Remarks

(CC) X (CC) 

## X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications CFD Flow Model Flame Scanning System Control System and Communication Modification Total direct costs (DC) = 

## (PEC) + 

## (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) = (DC) + 

## (IC) $0 $904,000 $142,000 $105,000 $1,151,000

$500,000

$35,000 $350,000 $350,000 $4,161,000

$291,000 $125,000 $416,000 Included $100,000

$35,000 $624,000 $1,591,000

$5,752,000 N/A Budgetary Quotation (PEC) 

## X 8.0% @10%

APS Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

(DC) 

## X 7.0% (DC) 

## X 3.0% (DC) 

## X 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) 

## X 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $374,000 $374,000

N/A (DC) 

## X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + 

## (IDAC) Total Annual Cost with Levelization Factor $374,000 $543,000

$919,000 $919,000

$1,293,000 $1,462,000 1.451 Levelization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 2 Technology: Selective Non-Catalytic Reduction

Cost Item 

### $ Date:

Remarks 8/20/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air pre heater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) 

### = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) 

### = (DC) + 

### (IC) $2,981,000 from recent vendor quote $256,000 from CUECost $590,000 from CUECost $3,827,000

$383,000 (CC)X 10.0% $230,000 (CC)X 6.0% $4,440,000

$222,000 (PEC) X 5.0% $444,000 (PEC) X 10.0% $444,000 (PEC)X 10.0% $133,000 (PEC)X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $178,000 (PEC)X 40% $89,000 (PEC) X 2.0% $151,000 @10% $1,661,000

$100,000 Eng Estimate $0 N/A $6,201,000

$434,000 (DC)X 7.0% $186,000 (DC)X 3.0% $620,000 (DC) X 10.0% Included B&V labor market review $186,000 (DC)X 3.0% $35,000 Eng. Estimate $930,000 (DC) X 15.0% $2,391,000

$2,000,000

$150,000 $2,150,000

$10,742,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $100,000 $558,000 $658,000

$1,557,000 $5,000 $4,000 $1,566,000

$2,224,000 $3,228,000

$1,717,000 $1,717,000

$3,941,000 $4,945,000 Estimate (DC) X 9.0%

from CUECost from CUECost from CUECost

1.45129 Leveiization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance· Cost Analysis Unit2 Technology: .=L;;..N:.=B;;../S::;N=C'-'Re-

_
Cost Item 

### $ Date:

Remarks 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) 

### = (DC) 

### + (IC) LNB Capital Investment (TCI) = (DC) 

### + (IC) Total Capital Investment (TCI) 

### = (DC) 

### + (IC) $2,981,000 from recent vendor quote $256,000 from CUECost $590,000 from CUECost $3,487,000

$349,000 (CC)X 10.0% $209,000 (CC)X 6.0% $4,045,000

$202,000 (PEC)X 5.0% $405,000 (PEC)X 10.0% $405,000 (PEC)X 10.0% $121,000 (PEC)X 3.0% $0 (PEC) X 0.0% $0 (PEC)X 0.0% $162,000 (PEC)X 4.0% $81,000 (PEC)X 2.0% $137,600 @10% $1,513,600

$100,000 Eng Estimate $0 N/A $5,659,000

$396,000 (DC)X 7.0% $170,000 (DC)X 3.0% $566,000 (DC)X 10.0% Included B&V labor market review $170,000 (DC)X 3.0% $35,000 Eng. Estimate $849,000 (DC)X 15.0% $2,186,000

$2,000,000

$150,000 $2,150,000



### $9,995,000 $4,109,000 $14,104,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $100,000 $509,000 $609,000

$1,046,000 $5,000 $4,000 $1,055,000

$1,664,000 $2,415,000

$2,254,000 $2,254,000



### $3,918,000 $4,669,000 Estimate (DC) X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 2 Technology: -=Lc...N-=Bc.../0::.c...FAlc.;:..:S:..;.N.:..:C"'R-'---

_
Cost Item 

### $ Date:

Remarks 

### 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) 

### = (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) = (DC) + 

### (IC) LNB/OFA Capital Investment (TCI) = (DC) + 

### (IC) Total Capital Investment (TCI) 

### = (DC) + 

### (IC) 

### $2,981,000 from recent vendor quote 

### $256,000 from CUECost 

### $590,000 from CUECost 

### $3,312,000

$331,000 (CC)X 

### 10.0% $199,000 (CC)X 

### 6.0% $3,842,000

$192,000 (PEC) X 

### 5.0% $384,000 (PEC)X 

### 10.0% $384,000 (PEC) X 

### 10.0% $115,000 (PEC)X 

### 3.0% $0 (PEC)X 

### 0.0% $0 (PEC) X 

### 0.0% $154,000 (PEC)X 

### 4.0% $77,000 (PEC) X 

### 2.0% $130,600 @10% $1,436,600

$100,000 Eng. Estimate 

### $0 N/A 

### $5,379,000

$377,000 (DC)X 

### 7.0% $161,000 (DC)X 

### 3.0% $538,000 (DC)X 

### 10.0% Included B&V labor market review 

### $161,000 (DC)X 

### 3.0% $35,000 Eng. Estimate 

### $807,000 (DC)X 

### 15.0% $2,079,000

$2,000,000

$150,000 $2,150,000



### $9,608,000 $5,752,000 $15,360,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor 

### $100,000 $484,000 $584,000

$803,000

$5,000 $4,000 $812,000

$1,396,000 $2,026,000

$2,455,000 $2,455,000



### $3,851,000 $4,481,000 Estimate (DC) X 

### 9.0%

from CUECost from CUECost from CUECost



### 1.45129 Levelization Factor



### 15% interest rate & 

### 20 year life

### Four Corners NOx Compliance. Cost Analysis Unit 2 Technology: LNB,OFc-AC-'a"-n"'dC-'H-'.E=cR-'.T

_
Cost Item 

### $ Date:

Remarks 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs High energy reagent technology (HERT) Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handting & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) 

### = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total Indirect costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)

Low Nox Burner and Overfire Air Capital Investment Total Combined Capital Investment (TCI) 

### = (DC) + (IC) $500,000 Budgetary Quotation $132,000 from CUECost $590,000 from CUECost $1,222,000

$122,000 (CC)X 10.0% $73,000 (CC)X 6.0% $1,417,000

$71,000 (PEC) X 5.0% $142,000 (PEC)X 10.0% $142,000 (PEC)X 10.0% $43,000 (PEC)X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $57,000 (PEC)X 4.0% $28,000 (PEC)X 2.0% $48,000 @10% $531,000

$100,000 Eng. Estimate $0 N/A $2,048,000

$143,000 (DC)X 7.0% $61,000 (DC)X 3.0% $205,000 (DC)X 10.0% Included B&V labor market review $61,000 (DC)X 3.0% $35,000 Eng. Estimate $307,000 (DC)X 15.0% $812,000

$2,000,000

$150.000 $2,150,000

$5,752,000 

### $10,762,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) Total Annual Cost with Levelization Factor $100,000 $184,000 $284,000

$803,000

$5,000 $4,000 $812,000

$1,096,000 $1,591,000

$1,720,000 $1,720,000



### $2,816,000 $3,311,000 Estimate (DC) X 9.0%

from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### Four Corners BART Analysis - Cost Analysis Unit: 2 Case Identifier: 

### -;6"'B:,-.,,------;oo--,--,--;c--,,-,--,-

_ Technology: Selective Catalytic Reduction Date: 8/19/2008

Cost Item 

### SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and injection lmltal catalyst Initial urea reagent Inventory Flue gas handling and ductwork Air preheater FD fans FO fan VFO 10 fans 10 fan VFO Expansion Joints Dampers Electrical equipment Misc. equipment Instruments and controls Subtotal (CC) $441,000 $2,383,000 $2,553,000

$234,000 $7,254,000 $3,122,000 $1,625,000 $1.078.000 $3.791.000 $1.725,000

$725.000 $1.813.000 $3.262.000

$292.000 $1,574,000 $31,872,000 Eng Estimate Eng Estimate Eng. Estimate adjusted from CUECost Eng Estimate Eng. Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng. Estimate Eng. Esbmate

Taxes Freight

Total Cost (PEC) $3,187,200 $1.593,600

$36,652,800 (CC)X (CC)X 10.0% 5.0%

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct Installation costs (Ole)

Site preparation Buildings Total direct costs (DC) 

## = (PEC) + (OIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construcuon Indirect Start-up Tuning Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) 

### = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total frxec annual costs

Variable annual costs Reagent Auxiliary and ID fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual cosls (DAC) Total direct annual costs

lndtrect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAC) 

## = (OAC) + (IOAC) TotalAnnualCost with t.evanzanon Factor $12.828.000 $9.163.000 $7,331,000

$916,000 $3,665,000

$367,000 $1,500,000

$550,000 $3,632,000 $39,952,000

$2,000,000

$500,000 $79,105,000

$11,865,750 $2,373,150 $7,910,500

Included $2,373,150

$25,000 $90,000 $11,866,000 $36,504,000

$1.251,000 $2,000,000

$150,000 $3,401.000

$119,010,000

$68,000 $2,373,000 $2,441,000

$713,000 $442.000 $42.000 $706.000 $272,000 $2.175,000

$4,616,000 $6,699,157

$19,018,000 $19,018,000

$23,634,000 $25,717.157 (PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 15% @10%

Estimate Estimate

(DC) X 15.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 150%

from CUECost (DC) X 3.0%

from CUECost from CUE Cost from CUE Cost from CUE Cost from CUE Cost

1.45129 Levelrzation Factor

15% interest rate & 20 year life

### Four Corners BART Analysis· Cost Analysis Unit: 2 Case Identifier: 76.;cB==,----

_ Technology: -'=Lc.:N"'B'-'/S'-'C"'R-'---

_ Date: 9/17/2008

Cost Item 

### SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handlmg and injection lrutral catalyst Initial urea reagent Inventory Flue gas handling and ductwork AIr pre heater FD fans FD ran VFD 10 fans ID fan VFD Expansion jomts Dampers Electrical equipment Misc. equipment Instruments and controls Subtotal (CC) $441,000 $2,383,000 $2,553,000

$234,000 $7,254,000 $3,122,000 $1,625,000 $1.078.000 $3,791,000 $1,725,000

$725,000 $1,813,000 $3,262,000

$292,000 $1,574,000 $31,274,000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUECosl Eng. Estimate Eng. Estimate Eng. Estimate Eng Estimate Eng. Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estrmate Eng Estimate

Taxes Freight

Total Cost (PEG) $3,127,400 $1.563,700

$35,965,100 (CC)X (CC)X 10.0% 5.0%

Direct installalton costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIG)

Site preparation Buildings Total direct costs (DC) 

## = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Contmqencies Total indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

SCR Caprtallnvestment (TCI) 

## = (DC) • (IC) LNB Capital Investment (TCI) 

## = (DC)' (IC) Total Capital Investment (TCI) 

## = (DC) • (IC)

ANNUAL COST Direct Annual COSlS Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total mdirect annual costs (lOAC)

r alai Annual Cost (TAC) = (DAC) • (IDAC) Total Annual Cost with Levelization Factor $12,588,000 $8,991,000 $7.193,000

$899,000 $3,597,000

$360,000 $1,500,000

$539,000 $3,567,000 $39,234,000

$2,000,000

$500,000 $77 ,699,000

$11,654,850 $2,330,970 $7,769,900

Included $2,330,970

$25,000 $90,000 $11,655,000 $35,857,000

$1,251,000 $2,000,000

$150,000 $3,401,000

$116,957,000

$4,109,000 $121,066,000

$68.000 $2,331.000 $2,399,000

$479,000 $442.000 $28,000 $559,000 $215.000 $1,723,000

$4,122,000 $5,982,219

$19.346,000 $19,346,000

$23,468,000 $25,328,219 (PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Eshmate Eshmale

(DC) X 15.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECosl from CUECost from CUECost from CUECost from CUECost

1.45129 Levehzanon Factor

15% interest rate & 20 year life

### Four Corners BART Analysis· Cost Analysis Unit: 2

# ~:;~~:~;~~:er:**1:t~~B:;/O~F~AI~"'SZC",""R,,--_-_-_-~_-_-_-_-_-_-_-_-_-~_-~_-_-_** Date: 9/17/2008

Cost Item SCR Remarks

CAPITAL COST DIrect Costs Purchased equipment costs Reactor housing Urea handling and injection lrutial catalyst lmtial urea reagent inventory Flue gas handling and ductwork Air pre heater FD fans FD fan VFD 10 fans 10 fan VFD Expansion joints Dampers Electrical equipment Misc. equipment Instruments and controls Subtotal (CC) $441.000 $2.383.000 $2.553.000

$234.000 $7.254.000 $3.122.000 $1.625.000 $1.078.000 $3,791.000 $1.725.000

$725.000 $1.813.000 $3.262.000

$292.000 $1.574.000 $30.921.000 Eng Estimate Eng, Estimate Eng. Estimate adjusted from CUECost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng Estimate Eng Estimate Eng. Estirnate Eng Estimate Eng. Estimate Eng. Estimate Eng. Estimate

Taxes Freight

Total Cost (PEC) $3.092.100 $1.546.050

$35.559.150 (CC)X (CC)X 10.0% 5,0%

Direct Installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (Ole)

Site preparation BUildings Total direct costs (DC) 

## = (PEC) + (DtC)

Indirect Costs Engineenng Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Contingencies Total Indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

SCR Capital Investment (TCI) 

## = (DC) + (IC) LNB/OFA Capital Investment (TCI) 

## = (DC) + (IC) Total Capital Investment (TCI) = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Opera ling labor Maintenance labor & materials Total fixed annual costs

Vanable annual cosls Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total vanable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost lor capital recovery Total mdirect annual costs (IDAC)

Total Annual Cost (TAC) 

## = (DAC) + (IDAC) Total Annual Cost With Levehzation Factor $12,446,000 $8,890,000 $7,112,000

$889,000 $3.556.000

$356,000 $1.500.000

$533,000 $3.528.000 $38,810,000

$2.000.000

$500.000 $76,869.000

$11,530,350 $2.306.070 $7.686,900

Included $2,306,070

$25,000 $90,000 $11.530,000 $35,474,000

$1,251,000 $2.000,000

$150.000 $3.401.000

$115,744,000

$5,752,000 $121,496,000

$68,000 $2,306,000 $2.374,000

$367,000 $442.000 $22.000 $552,000 $213.000 $1.596,000

$3.970,000 $5,761,623

$19,415.000 $19,415,000

$23,385,000 $25.176,623 (PEC) X 35.0% (PEC) X 25.0% (PEe) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC) X 150% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost (rom CUECost (rom CUECost from CUECosl

1.45129 Levelization Factor

15% Interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance - Cost Analysis Unit 

# 3 Technology: Low NOx Burners (LNB)

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

## $

$834,000 $834,000

$83,000 $50,000 $967,000 Date:

Remarks

(CC) X (CC) X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications Flame Scanning System Control System and Communication Modification Total direct costs (DC) 

## = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) = (DC) + (IC) $0 $556,000

$77,000 $63,000 $696,000

$500,000 $350,000 $350,000 $2,863,000

$200,000

$86,000 $286,000

Included $100,000

$35,000 $429,000 $1,136,000



## $3,999,000 N/A Budgetary Quotation (PEC) X 8.0% @10%

APS Eng. Estimate Eng. Estimate Eng. Estimate

(DC) X 7.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) X 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $258,000 $258,000

N/A (DC) X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) Total Annual Cost with Levelization Factor $258,000 $374,000

$639,000 $639,000



## $897,000 $1,013,000 1.451 Levelization Factor

15% interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance - Cost Analysis Unit 

# 3 Technology: Low NOx Burners (LNB) and Overfire Air (OFA)

Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) $



## $1,252,000 $1,252,000

$125,000

$75,000 $1,452,000 Date:

Remarks

(CC)X (CC)X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications CFD Flow Model Flame Scanning System Total direct costs (DC) = (PEC) + 

## (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) = 

## (DC) + 

## (IC) $0 $835,000 $116,000

$95,000 $1,046,000

$500,000

$35,000 $350,000 $3,383,000

$237,000 $101,000 $338,000 Included $100,000

$35,000 $507,000 $1,318,000



## $4,701,000 N/A Budgetary Quotation (PEC) X 8.0% @10%

APS Eng. Estimate Eng. Estimate Eng. Estimate

(DC) X 7.0% (DC) X 

## 3.0% (DC) X 

## 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) X 

## 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $304,000 $304,000

N/A (DC)X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + 

## (IDAC) Total Annual Cost with Levelization Factor $304,000 $441,000

$751,000 $751,000



## $1,055,000 $1,192,000 1.451 Levelization Factor

15% interest rate & 20 year life

### from recent vendor quote from CUECost from CUECos( 

## Four Corners NOx Compliance - Cost Analysis Unit 3 Technology: Selective Non-Catalytic Reduction



### Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls tnitial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC) 

### $

$3,441,000

$302,000 $718,000 $4,461,000

$446,000 $268,000 $5,175,000

$259,000 $518,000 $518,000 $155,000 $0 $0 $207,000 $104,000 $176,100 $1,937,100 

### Date:

Remarks

(CC)X (CC)X

(PEC)X (PEC)X (PEC)X (PEC) X (PEC) X (PEC) X (PEC) X (PEC) X @10% 8/20/2008



### 10.0% 6.0%

5.0% 10.0% 10.0% 3.0% 0.0% 0.0% 4.0% 2.0%

Chemical Pump Enctosure Buildings Total direct costs (DC) = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capitat Investment (TCI) = (DC) 

### + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance tabor and materials Total fixed annuat costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) 

### + (IDAC) Totat Annual Cost with Levelization Factor $100,000 $0 $7,212,000

$505,000 $216,000 $721,000 Included $216,000 $35,000 $1,082,000 $2,775,000

$2,000,000

$150,000 $2,150,000

$12,137,000

$100,000 $649,000 $749,000

$1,839,000 $5,000 $4,000 $1,848,000

$2,597,000 $3,769,000

$1,939,000 $1,939,000



### $4,536,000 $5,708,000 Eng. Estimate 

### NIA

(DC) X 7.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC) X 9.0%

from CUECost from CUE Cost from CUECost

1.45129 Levetization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 3 Technology: -=Le-N:..::Be-/S=.N:..=C.:...R=----

_


### Cost Item $ 

### Date:

Remarks 

### 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air pre heater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investmenl (TCI) = (DC) 

### + (IC) LNB Capital Investment (TCI) 

### = (DC) 

### + (IC) Total Capital Investment (TCI) = 

### (DC) 

### + (IC) $3,441,000 from recent vendor quote $302,000 from CUECost $718,000 from CUECost $4,130,000

$413,000 (CC)X 10.0% $248,000 (CC)X 6.0% $4,791,000

$240,000 (PEC)X 5.0% $479,000 (PEC) X 10.0% $479,000 (PEC) X 10.0% $144,000 (PEC) X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $192,000 (PEC) X 4.0% $96,000 (PEC) X 2.0% $163,000 

### @10'10 $1,793,000

$100,000 Eng. Estimate $0 N/A $6,684,000

$468,000 (DC)X 7.0% $201,000 (DC)X 3.0% $668,000 (DC)X 10.0% Included B&V labor market review $201,000 (DC)X 3.0% $35,000 Eng. Estimate $1,003,000 (DC) X 15.0% $2,576,000

$2,000,000

$150,000 $2,150,000


### $11,410,000 $3,999,000 $15,409,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $100,000 $602,000 $702,000

$1,347,000 $5,000 $4,000 $1,356,000

$2,058,000 $2,987,000

$2,462,000 $2,462,000



### $4,520,000 $5,449,000 Estimate (DC)X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit 3 Technology: -=L"-N:.::B"-/O"-'--FN'-'-'S"-N-"C"'R-'-

_
Cost Item 

### $ Date:

Remarks 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Chemical Pump Enclosure Buildings Total direct costs (DC) = (PEC) 

### + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indireci costs (IC)

Unintended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) 

### = (DC) + 

### (IC) LNB/OFA Capital Investment (TCI) = (DC) + 

### (IC) Total Capital Investment (TCI) = (DC) 

### + (IC) $3,441,000 from recent vendor quote $302,000 from CUECost $718,000 from CUECost $3,911,000

$391,000 (CC)X 10.0% $235,000 (CC)X 6.0% $4,537,000

$227,000 (PEC)X 5.0% $454,000 (PEC)X 10.0% $454,000 (PEC)X 10.0% $136,000 (PEC) X 3.0% $0 (PEC) X 0.0% $0 (PEC) X 0.0% $181,000 (PEC)X 4.0% $91,000 (PEC) X 2.0% $154,300 @10% $1,697,300

$100,000 Eng Estimate $0 N/A $6,334,000

$443,000 (DC)X 7.0% $190,000 (DC)X 3.0% $633,000 (DC)X 10.0% Included B&V labor market review $190,000 (DC) X 3.0% $35,000 Eng. Estimate $950,000 (DC)X 15.0% $2,441,000

$2,000,000

$150,000 $2,150,000


### $10,925,000 $4,701,000 $15,626,000

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor $100,000 $570,000 $670,000

$1,034,000 $5,000 $4,000 $1,043,000

$1,713,000 $2,486,000

$2,497,000 $2,497,000



### $4,210,000 $4,983,000 Estimate (DC) X 9.0%

from CUECost from CUECost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### Four Corners NOx Compliance - Cost Analysis Unit 

## 3 Technology: LNB, OFA and HERT

Cost Item 

# s Dale:

Remarks 9/17/2008

Budgetary Quotation from CUECost from CUECost CAPITAL COST Direct Costs Purchased equipment costs High energy reagent technology (HERT) Initial ammonia mventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIG) $500,000 $170,000 $718,000 $1,388,000

$139,000 $83,000 $1,610,000

$81,000 $161,000 $161,000 $48,000 $0 $0 $64,000 $32,000 $55,000 $602,000 (CC)X (CC)X

(PEC) X (PEC)X (PEC)X (PEC)X (PEC)X (PEC)X (PEC)X (PEC) X @10% 10.0% 6.0%

5.0% 10.0% 10.0% 3.0% 0.0% 0.0% 4.0% 2.0%

Chemical Pump Enclosure Buildings Total direct costs (DC) = (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Uninlended Consequences (UC) NewCEMS Rata for CEMS Total Unintended Consequences (UC)

Low Nox Burner and Overfire Air Capital Investment Total Combined Capital Investment (TCI) = 

### (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = 

### (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor $100,000 $0 $2,312,000

$162,000 $69,000 $231,000 Included $69,000 $35,000 $347,000 $913,000

$2,000,000

$150,000 $2,150,000

$4.701,000 

### $10,076,000

$100,000 $208,000 $308,000

$1,034,000 $5,000 $4,000 $1,043,000

$1,351,000 $1,961,000

$1,610,000 $1,610,000



### $2,961,000 $3,571,000 Eng. Estimate N/A

(DC)X 7.0% (DC)X 3.0% (DC) X 10.0% B&V labor market review (DC)X 3.0% En9. Estimate (DC)X 15.0%

Estimate (DC)X 9.0%

from CUECost from CUE Cost

1.45129 Levelization Factor

15% interest rate & 20 year life

### Four Corners BART Analysis - Cost Analysis Unit: 3 Case Identifier: 

# .:;6"'B7:-:=:-:::======

_ Technology: Selective Catalytic Reduction Date: 8/19/2008

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handlingand injection Initial catalyst Initial urea reagent Inventory Flue gas handling and ductwork AIr pre heater FD fans FD (an VFD 10 fans ID (an VFD Expansion JOints Dampers Electncal equipment MISC, equipment Instruments and controls Subtotal (CC) $441.000 $2.383.000 $2.553.000

$277.000 $5,432.000 $3.122.000 $1.625.000 $1.078.000 $4.332.000 $2.157.000

$543.000 $1.357.000 $3,459.000

$292.000 $1.669.000 $30,720.000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUE Cost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng. Estimate

Taxes Fretqht

Total Cost (PEC) $3.072.000 $1.536.000

$35.328.000 (CC)X (CC)X 10.0% 5.0%

Direct installation costs Foundation & supports Handling & erection Electncal Pipmq Insulation Painting Demolition Relocation Taxes Total directmstallation costs (DIG)

Site preparation BUIldings Total direct costs (DC); (PEC) + (DIC)

IndirectCosts Engineenng Owners Cost Construction and field expenses Construction Indirect Start-up Tuning Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

Total Capital Investmenl (TCI) ; (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total Indirect annual costs (IDAC)

Total Annual Cost (TAC); (DAC) + (IDAC) Total Annual Cost with l.evetizauon Factor $12.365.000 $8.832.000 $7.066.000

$883.000 $3.533.000

$353.000 $1.500.000

$530.000 $3.506.000 $38.568.000

$2.000.000

$500.000 $76.396.000

$9.168.000 $2.292.000 $7.640.000

Included $2.292.000

$25.000 $90.000 $11.459.000 $32.966.000

$1.572.000 $2.000.000

$150.000 $3,722.000

$113.084.000

$76.000 $2.292.000 $2.368.000

$842.000 $583.000 $50.000 $909.000 $350.000 $2,734.000

$5.102.000 $7,404.000

$18.071.000 $18.071.000

$23,173,000 $25,4 75.000 (PEC) X 350% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC)X 12.0% (DC)X 3.0% (DC)X 10.0% B&V labor market review (DC)X 3.0% Eng. Estimate Eng. Estimate (DC)X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Leveuzetron Factor

15% interest rate & 20 year life

### Four Corners BART Analysis - Cost Analysis
Unit: 3 Case Identifier: -;'6;cB==o:-

_ Technology: -=L"N"'B'-'/S'-'C"R'----

_ Date: 9/17/2008

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and Injection Initial catalyst Initial urea reagent inventory Flue gas handling and ductwork Air preheater FD fans FO Ian VFD ID fans 10 fan VFD Expansionjoints Dampers Electrical equipment Misc. equipment Instruments and controls Subtotal (CC) $441,000 $2,383,000 $2,553,000

$277,000 $5,432,000 $3,122,000 $1,625,000 $1,078,000 $4,332,000 $2,157,000

$543,000 $1,357,000 $3,459,000

$292,000 $1,669,000 $30,226,000 Eng Estimate Eng Estimate Eng. Estimate adjusted from CUECost Eng. Estimate Eng Estimate Eng. Estimate Eng Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

Taxes Freight

Total Cost (PEC) $3,023,000 $1,511,000

$34,760,000 (CC)X (CC)X 10.0% 5.0%

Direct Installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct Installation cosls (DIG)

Site preparation BUildings Total direct costs (DC) = (PEC) + (OIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction Indirect Start-up Tuning Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) Los! Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

SCR Capital Investment (TCI) 

## = (DC) + (IC) LNB CapitalInvestment (TCI) = (DC) + (IC) Total CapitalInvestment (TCI) 

## = (DC) + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost lor capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (OAC) + (IOAC) Total Annual Cost with Leveuzetton Factor $12,166,000 $8,690,000 $6,952,000

$869,000 $3,476,000

$348,000 $1,500,000

$521,000 $3,452,000 $37,974,000

$2,000,000

$500,000 $75,234,000

$9,028,000 $2,257,000 $7,523,000

Included $2,257,000

$25,000 $90,000 $11 ,285,000 $32,465,000

$1,572,000 $2,000,000

$150,000 $3,722,000

$111,421,000

$3,999,000 $115,420,000

$76,000 $2,257,000 $2,333,000

$617,000 $583,000 $36,000 $720,000 $277,000 $2,233,000

$4,566,000 $6,627,000

$18,444,000 $18,444,000

$23,010,000 $25,071,000 (PEC) X 35,0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 2.5% (PEC) X 100% (PEC) X 1.0% Eng. Estimate (PEC) X 15% @10%

Estimate Estimate

(DC) X 12.0% (DC) X 30% (DC) X 100% B&V labor market review (DC) X 3.0% Eng. Esurnate Eng. Estimate (DC) X 150%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECost from CUE Cost from CUECost

1.45129 Levelization Factor

15% interest rate & 20 year life

### Four Corners BART Analysis

- Cost Analysis Unit: 3

# ~:;~~=;::,~~:er:**~~f~~B=/O~F~AJ';::~S~C~R::::::::::::::::::::::::::=-** _ Date: 9/1712008

Cost Item SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handhnq and injection Initial catalyst Initial urea reagent inventory Flue gas handling and ductwork Air preheater FO fans FD fan VFD 10 fans 10 fan VFD Expansion joints Dampers Electrical equipment MIsc. equipment Instruments and controls Subtotal (CC) $441,000 $2,383,000 $2,553,000

$277,000 $5,432,000 $3,122,000 $1,625,000 $1,078,000 $4,332,000 $2,157,000

$543,000 $1,357,000 $3,459,000

$292,000 $1,669,000 $29,848,000 Eng, Estimate Eng. Estimate Eng. Esurnate adjusted from CUECos( Eng. Estimate Eng. Estimate Eng. Estimate Eng Estimate Eng. Estimate Eng. Estimate Eng. Estrrnate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

Taxes Freight

Total Cost (PEC) $2,985,000 $1,492,000

$34,325,000 (CC)X (CC)X 10.0% 5.0%

Direct installation costs Foundation & supports Handling & erection Electrical Piping lnsulauon Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Site preparation BUildings Total direct costs (DC) = (PEC) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction Indirect Stan-up Tuning Performance test Continqencies Total indirect costs (IC)

Unintended Consequences (UC) Lost Revenue New CEMS Rata Test for CEMS Total Unintended Consequences (UC)

SCR Capital Investment (TCI) = (DC) + (IC) LNB Capital Investment (TCI) 

### = (DC) + (IC) Total Capital Investment (TCt) 

### = (DC) + (tC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & matenats Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

tnorrect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Totat Annual Cost (TAC) = (DAC) + (IDAC) Total Annual Cost with Levelization Factor $12,014,000 $8,581,000 $6,865,000

$858,000 $3,433,000

$343,000 $1,500,000

$515,000 $3,411,000 $37,520,000

$2,000,000

$500,000 $74,345,000

$8,921,000 $2,230,000 $7,435,000

Included $2,230,000

$25,000 $90,000 $11,152,000 $32,083,000

$1,572,000 $2,000,000

$150,000 $3,722,000

$110,150,000

$4,701,000 $114,851,000

$76,000 $2,230,000 $2,306,000

$473,000 $583,000 $28,000 $712,000 $274,000 $2,070,000

$4,376,000 $6,351,000

$18,353,000 $18,353,000

$22,729,000 $24,704,000 (PEC) X 35.0% (PEC) X 25.0% (PEC) X 20.0% (PEC) X 25% (PEC) X 10.0% (PEC) X 1.0% Eng. Estimate (PEC) X 1.5% @10%

Estimate Estimate

(DC) X 12.0% (DC) X 3.0% (DC) X 10.0% 8& V labor market review (DC) X 3.0% Eng. Estimate Eng. Esumale (DC) X 15.0%

from CUECost (DC) X 3.0%

from CUECost from CUECost from CUECosl from CUECost from CUECost

1.45129 Levehzauon Factor

15% interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance - Cost Analysis Unit 4 & 

# 5 Technology: Low NOx Burners (LNB) Costs are per Unit 

## Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

## $

$2,712,000 $2,712,000

$271,000 $163,000 $3,146,000 

## Date:

Remarks

(CC)X (CC)X 9/17/2008

100% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications Flame Scanning System Total direct costs (DC) = (PEC) + 

## (DIC)

Indirect Costs Engineering Owners Cost Owner's Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) = 

## (DC) + (IC) $0 $1,878,000

$252,000 $213,000 $2,343,000

$500,000 $450,000 $6,439,000

$451,000 $193,000 $644,000 Included $100,000

$35,000 $966,000 $2,389,000



## $8,828,000 N/A Budgetary Quotation (PEC) X 8.0% @10%

APS Eng. Estimate Eng. Estimate

(DC) X 7.0% (DC) 

## X 3.0% (DC) 

## X 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) 

## X 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $580,000 $580,000

N/A (DC)X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

## = (DAC) + 

## (IDAC) Total Annual Cost with Levelization Factor $580,000 $842,000

$1,411,000 $1,411,000



## $1,991,000 $2,253,000 1.451 Levelization Factor

15% interest rate & 20 year life

## Budgetary Quotation 

# Four Corners NOx Compliance· Cost Analysis Unit 4 & 5 Technology: Low NOx Burners (LNB) and Overfire Air (OFA) Costs are per Unit Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC) 

## $

$4,589,000 $4,589,000

$459,000 $275,000 $5,323,000 Date:

Remarks

(CC)X (CC)X 9/17/2008

10.0% 6.0%

Direct installation costs Foundation & supports Handling, erection and installation Demolition Taxes Total direct installation costs (DIC)

Boiler Modifications CFD Flow Model Flame Scanning System Control System and Communication Modification Total direct costs (DC) = 

## (PEC) + 

## (DIC)

Indirect Costs Engineering Owners Cost Owner's Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Total Capital Investment (TCI) 

## = (DC) + 

## (IC) included $3,616,000

$426,000 $404,000 $4,446,000

$500,000

$35,000 $450,000 $450,000 $11,204,000

$784,000 $336,000 $1,120,000 Included $100,000

$35,000 $1,681,000 $4,056,000

$15,260,000 N/A Budgetary Quotation (PEC)X 8.0% @10%

APS Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

(DC) X 70% (DC)X 3.0% (DC) X 

## 10.0% B&V labor market review Eng. Estimate Eng. Estimate (DC) X 

## 15.0%

ANNUAL COST Direct Annual Costs Fixed annual costs Maintenance labor and materials Total fixed annual costs

Variable annual costs Total variable annual costs $1,008,000 $1,008,000

N/A (DC)X 9.0%

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + 

## (IDAC) Total Annual Cost with Levelization Factor $1,008,000 $1,463,000

$2,439,000 $2,439,000

$3,447,000 $3,902,000 1.451 Levelization Factor

15% interest rate & 20 year life

### from recent vendor quote from CUECost from CUECosl 

## Four Corners NOx Compliance· Cost Analysis Unit 4 & 5 Technology: Selective Non-Catalytic Reduction Costs are per Unit Cost Item

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC) 

### $

$7,232,000

$802,000 $1,740,000 $9,774,000

$977,000 $586,000 $11,337,000

$567,000 $1,134,000 $1,134,000

$340,000 $0 $0 $453,000 $227,000 $385,500 $4,240,500 Date:

Remarks

(CC) X (CC)X

(PEC)X (PEC)X (PEC) X (PEC)X (PEC)X (PEC) X (PEC) X (PEC)X 

### @10% 8/20/2008

10,0% 6.0%

5.0% 10.0% 10.0% 3.0% 00% 0.0% 4.0% 2.0%

Control System and Communication Modification Chemical Pump Enclosure Total direct costs (DC) = 

### (PEC) + 

### (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) = (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) 

### = (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor 

### $1,500,000 $100,000 $17,178,000

$1,202,000

$515,000 $1,718,000

Included 

### $515,000 $35,000 $2,577,000 $6,562,000

$2,000,000

$150,000 $2,150,000



### $25,690,000

$100,000 $1,546,000 $1,646,000

$4,876,000 $5,000 $4,000 $4,885,000

$6,531,000 $9,478,000

$4,137,000 $4,137,000



### $10,666,000 $13,615,000 Eng. Estimate Eng. Estimate

(DC) 

### X 7.0% (DC)X 

### 3.0% (DC)X 

### 10.0% B&V labor market review (DC) X 

### 3.0% Eng. Estimate (DC)X 

### 15.0%

Estimate (DC) X 

### 9.0%

from CUECost from CUECost from CUECosl



### 1.45129 Levelization Factor



### 15% interest rale & 

### 20 year life

## Four Corners NOx Compliance - Cost Analysis Unit4 & 5 Technology: -:;L:c-N:.::B:c:/S::;Nc.:c:::C.:...R'--:-.,.,-c;-

_ Costs are per Unit Cost Item 

### $ Date:

Remarks 

### 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (DIC)

Control System and Communication Modification Chemical Pump Enclosure Total direct costs (DC) 

### = (PEC) 

### + (DIC) $7,232,000 from recent vendor quote $802,000 tram CUECost $1,740,000 from CUECost $9,487,000

$949,000 (CC)X 10.0% $569,000 (CC)X 6.0% $11,005,000

$550,000 (PEC) X 5.0% $1,101,000 (PEC)X 10.0% $1,101,000 (PEC)X 10.0%

$330,000 (PEC)X 3.0% $0 (PEC)X 0.0% $0 (PEC) X 0.0% $440,000 (PEC) X 4.0% $220,000 (PEC)X 2.0% $374,200 @10% $4,116,200

$1,500,000 Eng. Estimate

$100,000 Eng. Estimate $16,721,000

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) = (DC) 

### + (IC) LNB Capital Investment (TCI) 

### = (DC) + 

### (IC) Total Capital Investment (TCI) 

### = (DC) + 

### (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = 

### (DAC) + 

### (IDAC) Total Annual Cost with Levelization Factor $1,170,000 $502,000 $1,672,000

Included $502,000 $35,000 $2,508,000 $6,389,000

$2,000,000

$150,000 $2,150,000


### $25,260,000 $8,828,000 $34,088,000

$100,000 $1,505,000 $1,605,000

$4,442,000 $5,000 $4,000 $4,451,000

$6,056,000 $8,789,000

$5,447,000 $5,447,000



### $11,503,000 $14,236,000 (DC)X 7.0% (DC) X 3.0% (DC) X 10.0% B&V labor market review (DC) X 3.0% Eng. Eslimate (DC)X 15.0%

Estimate (DC)X 90%

from CUECost from CUECost from CUECost

1.45129 Leveiizalion Factor

15% interest rate & 20 year life

## Four Corners NOx Compliance

- Cost Analysis Unit 4 & 5 Technology: .:;L""-'N"'B:;-/O:::..:...FA/=S"-N.:..;C:;.:R,.:..".

_ Costs are per Unit Cost Item 

### $ Date:

Remarks 

### 9/17/2008

CAPITAL COST Direct Costs Purchased equipment costs Reagent storage, handling, injection & controls Initial ammonia inventory Air preheater modifications Subtotal capital cost (CC) Taxes Freight Total purchased equipment cost (PEC)

Direct installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct inslallation costs (DIC)

Control System and Communication Modification Chemical Pump Enclosure Total direct costs (DC) = (PEC) 

### + (DIC) $7,232,000 from recent vendor quote $802,000 from CUECost $1,740,000 from CUECost $8,835,000

$884,000 (CC)X 10.0% $530,000 (CC)X 6.0% $10,249,000

$512,000 (PEC) X 5.0% $1,025,000 (PEC)X 10.0% $1,025,000 (PEC)X 10.0%

$307,000 (PEC) X 3.0% $0 (PEC)X 0.0% $0 (PEC)X 0.0% $410,000 (PEC) X 4.0% $205,000 (PEC)X 2.0% $348,400 @10% $3,832,400

$1,500,000 Eng. Estimate

$100,000 Eng. Estimate $15,681,000

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) New CEMS Rata for CEMS Total Unintended Consequences (UC)

SNCR Capital Investment (TCI) 

### = (DC) 

### + (IC) LNB/OFA Capital Investment (TCI) = (DC) 

### + (IC) Total Capital Investment (TCI) = (DC) 

### + (IC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor and materials Total fixed annual costs

Variable annual costs Reagent Auxiliary Power Water Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Total Annual Cost (TAC) = (DAC) 

### + (IDAC) Total Annual Cost with Levelization Factor $1,098,000 $470,000 $1,568,000

Included $470,000 $35,000 $2,352,000 $5,993,000

$2,000,000

$150,000 $2,150,000



### $23,824,000 $15,260,000 $39,084,000

$100,000 $1,411,000 $1,511,000

$3,455,000 $5,000 $4,000 $3,464,000

$4,975,000 $7,220,000

$6,246,000 $6,246,000



### $11,221,000 $13,466,000 (DC) X 7.0% (DC) X 

### 3.0% (DC) X 

### 10.0% B&V labor market review (DC) X 3.0% Eng. Estimate (DC) X 15.0%

Estimate (DC)X 9.0%

from CUECost from CUECost from CUE Cost

1.45129 Levelization Factor

15% interest rate & 20 year life48 Selective Catalytic Reduction 

### Four Corners BART Analysis

- Cost Analysis
Unit: 4 & 5 Case Identifier: Technology: Date: 8/19/2008

Cost Item Costs are per Unit SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housmq Urea handling and mjection Initial catalyst Initial urea reaqentrnventory Flue gas handling and ductwork Air pre healer 10 fans 10 fan VFD Expansion Joints Dampers Electrical equipment Misc. equipment Instruments and controls Subia tal (CC) $1,444,000 $9,747,000 $7,941,000

$734,000 $9,909,000 $15,610,000 $10,830,000 $5,392,000

$991,000 $2,477000 $9,742,000

$583,000 $4,702,000 $80,102,000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUECost Eng Estimate Eng Estimate Eng Estimate Eng Estimate Eng. Estimate Eng. Estimate Eng Estimate Eng. Estimate Eng. Estimate

Taxes Freight

Tolal Cost (PEC) $8,010,000 $4,005,000

$92,117,000 (CC)X (CC)X 10.0% 5.0%

Direct Installation costs Foundation & supports Handling & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total direct installation costs (Ole)

Site preparation Buildings Total direct costs (DC) = (PEC) • (DIC)

Indirect Costs Engmeering Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Contingencies Total Indirect costs (IC)

Unintended Consequences (UC) Side Effect Mitigation Lost Revenue New CEMS Rata for CEMS Total Unintended Consequences (UC)

Total Capital Investment (TCI) 

## = (DC) • (tC) • (UC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Unintended Consequences (UCAC) Side Effect Mitigation Total Unintended Consequences (UCAC)

Total Annual Cost (TAC) 

### = (DAC) + (IDAC)' (UCAC) Total Annual Cost with Levellzation Factor $18,423,000 $36,847,000 $13,818,000 $2,303,000 $4,606,000

$921,000 $5,000,000 $2,303,000 $8,422,000 $92,643,000

$2,000,000

$500,000 $187,260,000

$9,363,000 $5,618,000 $5,618,000

Included $5,618,000

$120,000 $250,000 $28,089,000 $54,676,000

$6,962,000 $14,358,000 $2,000,000

$150,000 $23,470,000

$265,406,000

$163,000 $5,618,000 $5,781,000

$2,231,000 $1,823,000

$132,000 $2,279,000

$877,000 $7,342,000

$13,123,000 $19,045,000

$42,412,000 $42,412,000

$220,000 $220,000

$55,755,000 $61,457,000 (PEC) X 20.0% (PEC) X 40.0% (PEC) X 15.0% (PEC) X 2.5% (PEC) X 5.0% (PEC) X 1,0% Eng. Estimate (PEC) X 2.5% @10%

Estimate Estimate

(DC) X 50% (DC) X 30% (DC) X 30% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 150%

S03 Removal Extended Outage

from CUECost (DC) X 30%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levehzatlon Factor

15% interest rate & 20 year life4B LNB/SCR 

### Four Corners BART Analysis· Cost Analysis
Unit: 

## .i.!...? Case Identifier: Technology: Date: 9/17/2008

Cost Item Costs are per Unit SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and mjecuon Initial catalyst Initial urea reagent inventory Flue gas handling and ductwork Air preheater 10 fans 10 fan VFD Expansion joints Dampers Electrical equipment Misc. equipment Instruments and controls Subtotal (CC) $1,444,000 $9,747,000 $7,941,000

$734,000 $9,909,000 $15,610,000 $10,830,000 $5,392,000

$991,000 $2,477,000 $9,742,000

$583,000 $4,702,000 $79,984,000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUECost Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate Eng. Estimate

Taxes Freighl

Total Cost (PEC) $7,998,000 $3,999,000

$91,981,000 (CC)X (CC)X 10.0% 5.0%

DIrect installation costs Foundation & supports Handhng & erection Electrical Piping Insulation Painting Demolition Relocation Taxes Total duect installation costs (DIG)

Site preparation Buildings Total direct costs (DC) = (PEG) + (DIG)

Indirect Costs EngIneering Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Continqencres Total mdirect costs (IC)

Unintended Consequences (UC) Side Effect Mitigation Lost Revenue New CEMS Rata for CEMS Total Unintended Consequences (UC)

SCR Capital Investment (TCI) = (DC) + (IC) + (UC) LNB Capital Investment (TCI) = (DC) + (IC) + (UC) Total Capital Investment (TCI) 

## = (DC) + (IC) + (UC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & rnatenats Total fixed annual costs

Variable annual costs Reagent Auxiliary and ID fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (DAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IDAC)

Unmtended Consequences (UCAC) Side Effect Mitigation Total Unintended Consequences (UCAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) + (UCAC) Total Annual Cost with Levehzation Factor $18,396,000 $36,792,000 $13,797,000 $2,300,000 $4,599,000

$920,000 $5,000,000 $2,300,000 $8,410,000 $92,514,000

$2,000,000

$500,000 $186,995,000

$9,350,000 $5,610,000 $5,610,000

Included $5,610,000

$120,000 $250,000 $28,049,000 $54,599,000

$6,962,000 $14,358,000 $2,000,000

$150,000 $23,470,000

$265,064,000

$8,828,000 $273,892,000

$163,000 $5,610,000 $5,773,000

$2,033,000 $1,823,000

$120,000 $2,272,000

$874,000 $7,122,000

$12,895,000 $18,714,000

$43,768,000 $43,768,000

$220,000 $220,000

$56,883,000 $62,482,000 (PEC) X 200% (PEC) X 400% (PEC) X 150% (PEC) X 25% (PEC) X 5.0% (PEC) X 10% Eng. Estimate (PEC) X 2.5% @10%

Estimate Estimate

(DC) X 50% (DC) X 3.0% (DC) X 3.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

S03 Removal Extended Outage

from CUECost (DC) X 3.0%

from CUECosl from CUECost from CUECost from CUECost from CUECost

1.45129 Levelizetion Factor

15(% interest rate & 20 year life4B LNB/OFA/SCR 

### Four Corners BART Analysis· Cost Analysis Unit: 4 & 5 Case Identifier: Technology: Date: 9/17/2008

Cost Item Costs are per Unit SCR Remarks

CAPITAL COST Direct Costs Purchased equipment costs Reactor housing Urea handling and injection Initial catalyst Initial urea reagent inventory Flue gas handling and ductwork Air preheater 10 fans 10 fan VFD Expansion jomts Dampers Electrical equipment Misc, equipment Instruments and controls Subtotal (CC) $1,444,000 $9,747,000 $7,941,000

$734,000 $9,909,000 $15,610,000 $10,830,000 $5,392,000

$991,000 $2,477,000 $9,742,000

$583,000 $4,702,000 $79,679,000 Eng. Estimate Eng. Estimate Eng. Estimate adjusted from CUECost Eng Estimate Eng Estimate Eng Esnrnate Eng Estimate Eng Estunate Eng. Estimate Eng Estimate Eng. Estimate Eng. Estimate

Taxes Freight

Total Cost (PEC) $7,968,000 $3,984,000

$91,631,000 (CC)X (CC)X 10.0% 5.0%

Direct Installation costs Foundation & supports Handling & erection Electrical Pipmq tnsutauon Pamtmq Demolition Relocation Taxes Tolal direct Installation costs (Ole)

Site preparation Buildings Total direct costs (DC) 

## = (PEe) + (DIC)

Indirect Costs Engineering Owners Cost Construction and field expenses Construction indirect Start-up Tuning Performance test Contingencies Total indirect costs (IC)

Unintended Consequences (UC) Side Effect Minqaticn Lost Revenue New CEMS Rata for CEMS Total Unintended Consequences (UC)

SCR Capital Investment (TCI) = (DC) + (tC) + (UC) LNB Capital Investment (TCI) = (DC) + (JC) + (UC) Total CapitalInvestment (TCI) 

## = (DC) + (IC) + (UC)

ANNUAL COST Direct Annual Costs Fixed annual costs Operating labor Maintenance labor & materials Total fixed annual costs

Variable annual costs Reagent Auxiliary and 10 fan power Steam Catalyst replacement Catalyst disposal Total variable annual costs

Total direct annual costs (OAC) Total direct annual costs

Indirect Annual Costs Cost for capital recovery Total indirect annual costs (IOAC)

Unmtended Consequences (UCAC) SIde Effect Mitigation Total Unintended Consequences (UCAC)

Total Annual Cost (TAC) = (DAC) + (IDAC) + (UCAC) Total Annual Cost with Levelizattcn Factor $18,326,000 $36,652,000 $13,745,000 $2,291,000 $4,582,000

$916,000 $5,000,000 $2,291,000 $8,380,000 $92,183,000

$2,000,000

$500,000 $186,314,000

$9,316,000 $5,589,000 $5,589,000

Included $5,589,000

$120,000 $250,000 $27,947,000 $54,400,000

$6.962.000 $14,358,000 $2,000,000

$150,000 $23,470,000

$264,184,000 $15,260,000 $279,444,000

$163,000 $5,589,000 $5,752,000

$1,581,000 $1,823,000

$93.000 $2,248,000

$865,000 $6,610,000

$12,362,000 $17,941,000

$44,655,000 $44,655,000

$220,000 $220,000

$57,237,000 $62,596,000 (PEC) X 20.0% (PEG) X 40.0% (PEC) X 15.0% (PEC) X 2.5% (PEC)X 50% (PEC) X 1.0% Eng. Estimate (PEC) X 2.5% @10%

Estimate Estimate

(DC) X 5.0% (DC) X 3.0% (DC) X 3.0% B&V labor market review (DC) X 3.0% Eng. Estimate Eng. Estimate (DC) X 15.0%

S03 Removal Extended Outage

from CUECost (DC)X 3.0%

from CUECost from CUECost from CUECost from CUECost from CUECost

1.45129 Levelizaticn Factor

15% interest rate & 20 year life