AIlSA subsidiary ofPinnacle 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.

Fou Corners Power Plant

Daid~~i41 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

ExpansionJOints

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 installationcosts

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

Tota! variable annual costs

Total direct annual costs (DAC)

Teta! direct annual costs

IndirectAnnual Costs

Cost for capital recovery

Total indirectannual costs (IDAC)

Total Annual Cost (TAC) = (DAC) + (IDAC)

Total Annual Cost WithLevefizanon 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

9/5/2008
66

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 installationcosts (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 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&Vlabor 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 life
68

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

Constructionmdrrect

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 indirectannual 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 life
68

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 life
48

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 WIthLevenzetion 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 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)

$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

9/5/2008
Arizona Public Service (APS)

Four Corners Units 1 through 5

200

SCR and SCN

Industry Material Price

Escalation Summary

Dramatic escalation observed during 2005 - 20

9/5/2008
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

9/5/2008
Arizona Public Service

Four Corners Units 1 through 5

Cost

Impac

Table 6-2

Unit 1 - NOx Cost-Effectiveness Summary

Emission Expected Total 

Performance Expected Emissions Annualized Co

Level Emissions Reductions Capital Costs Cost Effect

All Feasible Technologies (lb/mmBtu) Rate (lb/h) (tons/yr) (x $1,000) (x $1,000) ($/

Unit 1 NO, (resultant emissions based on current O.781b/mmBtu)

COS 0.72 1,341 456 1,429 314 6

SNCR 0.56 1,043 1,622 10,866 4,314 2,6

Mobotec ROT AMIX 0.56 1,043 1,622 7,282 4,277 2,6

New LNBs 0.43 801 2,569 4,109 922 3

NewLNB,OFA 0.33 615 3,298 5,752 1,293 3

New LNBs and SNCR 0.32 596 3,371 13,796 3,849 1,

New LNBs, OFA, and ROT AMIX 0.30 559 3,517 II, I05 3,508 9

Mobotec ROFA 0.28 522 3,662 9,657 2,956 8

New LNBs, OFA, and SNCR 0.26 484 3,808 15,070 3,785 9

New LNBs, OFA, and HERT 0.20 373 4,245 10,762 2,816 6

Mobotec ROFA and ROT AMIX 0.19 354 4,318 13,672 4,223 9

SCR 0.08 145 5,134 110,664 22,297 4,3

New LNBs, and SCR 0.06 112 5,266 111,609 21,764 4,1

New LNBs, OFA, and SCR 0.06 112 5,266 112,058 21,685 4,1

(')Incremental cost undefined.

(2)Incremental cost compared to COS.

(3)Incremental cost compared to LNB.

(4)lncremental cost compared to LNB/OFA.

(5)Incremental cost compared to LNB and OFA+HERT.

(6)Incremental cost compared to Mobotec ROFA/ROTAMIX.

091808 
Arizona Public Service

Four Corners Units 1 through 5

Cost

Impac

250002250020000

1) Neural Network

2) Low NOx Burners (LNB)

3) Selective Non-Catalytic Reduction (SNCR)

4) Mobotec ROTAMIX

5) Mobotec ROFA

4,5) Mobotec ROFA and ROTAMIX

6) Selective Catalytic Reduction (SCR)

7) High Energy Reagent Technology (HERT)

6B

• 6L

6

4,000 5,000 

3L 4L 3LO

• .5B· •

3,000

Emissions Reduction (ton/yr)

2,000

-

4B

3B

•

1,000

---- -----

1B

5000

2500]

I

o

17500 IB) Baseline

L) LNB

LO) LNB + OFA

15000 I, • Baseline

• LNB

12500 II • LNB OFA

s

o

o

....

1ii

o

U

"C

II - - - Presumptive Limit

£I Least Cost Envelope

10000

I

7500

Figure 6-1

Unit 1 - NOx Cost-Effectiveness

091808 
Arizona Public Service

Four Corners Units 1 through 5

Cost-

Impac

Table 6-3

Unit 2 - NOx Cost-Effectiveness Summary

Emission Expected Total 

Performance Expected Emissions Annualized Co

Level Emissions Reductions Capital Costs Cost Effecti

All Feasible Technologies (lb/mmBtu) Rate (lb/h) (tons/yr) (x $1,000) (x $1,000) ($/t

Unit 2 NOx (resultant emissions based on current 0.64 Ib/mmBtu)

COS 0.60 1,118 302 1,429 314 1,0

SNCR 0.46 857 1,349 10,742 3,941 2,9

Mobotec ROT AMIX 0.45 838 1,424 7,282 4,277 3,0

New LNBs 0.43 801 1,573 4,109 922 58

NewLNB,OFA 0.33 615 2,321 5,752 1,293 55

New LNBs and SNCR 0.32 596 2,396 14,104 3,918 1,6New LNBs, OFA, and ROTAMIX 0.30 559 2,545 11,105 3,508 1,3

Mobotec ROF A 0.28 522 2,695 9,657 2,956 1,0

New LNBs, OFA, and SNCR 0.26 484 2,844 15,360 3,851 1,3New LNBs, OFA, and HERT 0.20 373 3,293 10,762 2,816 85

Mobotec ROF A and ROT AMIX 0.19 354 3,368 13,532 4,191 1,2

SCR 0.06 119 4,310 119,010 23,634 5,4

New LNBs and SCR 0.06 112 4,340 121,066 23,468 5,4

New LNBs, OFA, and SCR 0.06 112 4,340 121,496 23,385 5,3

(1)Incremental cost undefined.

(2)Incremental cost compared to COS.

(3)Incremental cost compared to LNB.

(4)Incremental cost compared to LNB/OFA.

(5)Incremental cost compared to LNB and OFA+HERT.

(6)Incremental cost compared to Mobotec ROF AlROTAMIX.

091808 
Arizona Public Service

Four Corners Units 1 through 5

Cost-

Impact 

25000 1,--,-,---,-,-------------------, '1) Neural Network I

2) Low NOx Burners (LNB)

22500 Selective Non-Catalytic Reduction (SNCR)

4) Mobotec ROT AMIX

5) Mobotec ROFA

2 0 14,5) Mobotec ROFA and ROTAMIX

00 0 -1 6) Selective Catalytic Reduction (SCR)

7) High Energy Reagent Technology (HERT)

17500 iB) Baseline

L)LNB

S ILO) LNB + OFA

15000

• Baseline

..

1/1 • 0 LNB

o 12500 .:

'C & LNB OFA

- - - Presumptive Limits '1aE 10000 Least Cost Envelope.

l: -

c:(

7500

5000

2500 .

1B

4B

3B. •

2L

3L• 4L 3LO

• 5B &

•

2LO

6L6L

o

o 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,

Emissions Reduction (ton/yr)

Figure 6-2

Unit 2 - NOx Cost-Effectiveness

091808 
Arizona Public Service Cost-

Four Corners Units 1 through 5 Impac

Table 6-4

Unit 3 - NOx Cost-Effectiveness Summary

Emission Expected Total 

Performance Expected Emissions Annualized Co

Level Emissions Reductions Capital Costs Cost Effecti

All Feasible Technologies (lb/mmBtu) Rate (lb/h) (tons/yr) (x $1,000) (x $1,000) ($/t

Unit 3 NOx (resultant emissions based on current 0.59 Ib/mmBtu)

COS 0.56 1,344 257 1,429 314 1,2

SNCR 0.46 1,104 1,217 12,137 4,536 3,7

Mobotec ROTAMIX 0.45 1,080 1,313 7,436 4,311 3,2

New LNBs 0.43 1,032 1,505 3,999 897 59

NewLNB,OFA 0.33 792 2,465 4,701 1,055 42

New LNBs and SNCR 0.32 768 2,561 15,409 4,520 1,7New LNBs, OFA, and ROT AMIX 0.30 720 2,753 11,215 3,536 1,2

Mobotec ROFA 0.28 672 2,945 10,705 3,406 1,1

New LNBs, OFA, and SNCR 0.26 624 3,137 15,626 4,210 1,3

New LNBs, OFA, and HERT 0.20 480 3,713 10,076 2,961 79

Mobotec ROFA and ROT AMIX 0.19 456 3,809 13,689 4,858 1,2

SCR 0.06 144 5,057 113,084 23,173 4,5

New LNBs and SCR 0.06 144 5,057 115,420 23,010 4,5New LNBs, OFA, and SCR 0.06 144 5,057 114,851 22,729 4,4

(I 'Incremental cost undefined.

(2)Incremental cost compared to COS.

(3)Incremental cost compared to LNB.

(4)lncremental cost compared to LNB/OFA.

(5)lncremental cost compared to LNB and OFA+HERT.

(6)Incremcntal cost compared to Mobotec ROFA/ROTAMIX.

091808 
Arizona Public Service

Four Corners Units 1 through 5

Cost-

Impac

6B

6L

6LO

1) Neural Network

2) Low NOx Burners (LNB)

3) Selective Non-Catalytic Reduction (SNCR)

4) Mobotec ROTAMIX

5) Mobotec ROFA

4,5) Mobotec ROFA and ROTAMIX

6) Selective Catalytic Reduction (SCR)

7) High Energy Reagent Technology (HERT)

20000

22500

25000 1.. •. I

17500 lB) Baseline

L) LNBLO) LNB + OFA s

oo

....

o

1

l:

.i

15000

•

•

12500 •

-

10000 -

7500

5000 i

2500 -

1B

A.-

0-

0

BaselineLNBLNB OFA

Presumptive Limits

Least Cost Envelope

3B 4B

••

1,000

2L

2,000

3L 3LO

• 4L 5B •

• •

2LO

3,000

Emissions Reduction (ton/yr)

4,000 5,000 

Figure 6-3

Unit 3 - NOx Cost-Effectiveness

091808 
Arizona Public Service

Four Corners Units 1 through 5

Cost

Impac

Table 6-5

Units 4 and 5 - NOx Cost-Effectiveness Summary - Values are per Unit

Emission Expected Total 

Performance Expected Emissions Annualized Co

Level Emissions Reductions Capital Costs Cost Effecti

All Feasible Technologies (lb/mmBtu) Rate (lb/h) (tons/yr) (x $1,000) (x $1,000) ($/t

Units 4 and 5 NO, (resultant emissions based on current 0.49 Ib/mmBtu)

COS 0.47 3,669 633 1,557 348 55

SNCR 0.38 2,927 3,138 25,890 10,668 3,3

NewLNBs 0.45 3,513 1,160 8,828 1,991 1,7

NewLNB,OFA 0.35 2,732 3,798 15,260 3,447 90

New LNBs and SNCR 0.32 2,498 4,589 34,088 11,503 2,5New LNBs, OFA, and SNCR 0.26 2,030 6,171 39,084 11,221 1,8

SCR 0.06 468 11,445 265,406 55,755 4,8

New LNBs and SCR 0.06 468 11,445 273,892 56,883 4,9

New LNBs, OFA, and SCR 0.06 468 11,445 279,444 57,237 5,0

(IJlncremental cost undefined.(2)lncremental cost compared to COS.

(3)lncremental cost compared to LNB.

(4)lncremental cost compared to LNB/OFA.

(5)lncremental cost compared to LNB and OFA+SNCR.

091808 
Arizona Public Service

Four Corners Units 1 through 5

Cost-

Impac

4L

·4LO

4B

I) Neural Network

2) Low NOx Burners (LNB)

3) Selective Non-Catalytic Reduction (SNCR)

4) Selective Catalytic Reduction (SCR)

60000 ---;-:-;-:--;-:------------,

50000 IB) Baseline

L) LNB

LO) LNB + OFA

• Baseline

40000 • LNB

S A LNB OFA 0

0

... - - - Presumptive Limit

-

I Least Cost Envelope fIl

0

U 30000

'tI

II>

.!l!

16

:::J

«

20000 -

8,000 10,000 12,000 

3LO

4,000 6,000

3B

•

2,000

2L

_

• •

o

10000

Emissions Reduction (ton/yr)

Figure 6-4

Units 4 and 5 - NOx Cost-Effectiveness

091808 
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

___$:<-c1,736,000

$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

Expansionjoints

Dampers

Electricalequipment

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 installationcosts (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

Operaling 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=FAC"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 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)

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 installationcosts

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 life
48

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

Subiatal (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 life
4B

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 life
4B

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