Installed Capacity Market
Net Cost of New Entry
Template Instructions
Data Submission Template for Buyer-Side Mitigation
Exemption Review
October 15, 2013
Table of Contents
Table of Contents ........................................................................................................................................ 2
1.
Overview.............................................................................................................................................. 3
2.
Column Items Guide........................................................................................................................... 4
Section (A). Input........................................................................................................................ 4
Section (B). Comment ................................................................................................................ 4
Section (C). Documentation Reference ...................................................................................... 4
3.
Line Items Guide................................................................................................................................. 5
Section I. General Unit Information ........................................................................................... 5
General Unit Information ........................................................................................................ 5
Section II. Capital Cost Inputs .................................................................................................... 5
EPC Cost Components............................................................................................................ 6
Non-EPC Cost Components ................................................................................................... 7
Financing (including Allowance for Funds Used during Construction (AFUDC), Interest
during Construction (IDC))..................................................................................................... 8
Working Capital and Inventories ............................................................................................ 8
Section III. Plant Performance .................................................................................................... 8
Net Plant Capacity: Unfired .................................................................................................... 9
Net Plant Capacity: Duct Fired ............................................................................................... 9
Net Plant Heat Rate: Unfired .................................................................................................. 9
Net Plant Heat Rate: Duct Fired ............................................................................................. 9
Other ....................................................................................................................................... 9
NOx Emissions (lb/mmbtu) - With Duct Firing ................................................................... 10
NOx Emissions (lb/mmbtu) - Without Duct Firing .............................................................. 10
CO2 Emissions (lb/mmbtu) - With Duct Firing ................................................................... 10
CO2 Emissions (lb/mmbtu) - Without Duct Firing .............................................................. 10
Section IV. Operating Cost Inputs ............................................................................................ 10
Fixed O&M ($/Year) ............................................................................................................ 10
Other Fixed Costs ($/Year) ................................................................................................... 11
Variable O&M ($/MWh) ...................................................................................................... 11
Variable O&M - Cost per Start per CT ................................................................................. 12
Section V. Financial Inputs ....................................................................................................... 12
Annual Property Taxes ......................................................................................................... 13
Annual Insurance Costs ........................................................................................................ 13
4.
Supporting Documentation Requirements .................................................................................... 14
Attachment 1: Project Report.................................................................................................... 14
I. Project Characteristics .................................................................................................... 14
II.
Project Status .............................................................................................................. 14
III. Plant Performance....................................................................................................... 15
IV. O&M ........................................................................................................................... 15
V.
Financial Assumptions ............................................................................................... 15
Attachment 2: Project Cost Financial Model ............................................................................ 15
Attachment 3: Plant Performance Model .................................................................................. 16
1. Overview
The Cost of New Entry (CONE) Template is a tool to facilitate data submission for the purposes
of the NYISO’s buyer-side mitigation (BSM) evaluation of proposed new entrants in the
Installed Capacity1 market, as set forth in Services Tariff Section 23/Attachment H. The NYISO
requires that the owner/developer identified in the NYISO interconnection queue for the project
timely complete each of the forms, according to the instructions below, and provide the
supporting documentation as indicated.
The unit specific Annual Net CONE (ANC) is an annual levelized value, in $/kW-year UCAP,
defined as follows:
ANC =
(ICkw ∙ LCC) + FOM – (NER + ASR)
(1 − EFORd)
Where:
ICkw is the present value of the investment cost for the examined facility, in $/kW ICAP.
LCC is the Levelized Carrying Charge rate.
FOM is the sum of estimated annual fixed operational and maintenance costs, in $/kWyear ICAP.
NER is the projected annual net energy revenues, in $/kW-year ICAP.
ASR is the projected ancillary services revenues, in $/kW-year ICAP.
EFORd is the Equivalent Demand Forced Outage Rate.
ICAP is the facility’s capacity at ICAP conditions 90 oF.
ANC is expressed in constant dollars with respect to a single reference year. The “reference
year” is the project’s in-service year assumed – for purposes of the BSM evaluation in
accordance with the Services Tariff – to be the Capability Year beginning three years from the
project’s Class Year. All of the components of ANC are likewise derived in constant dollar
terms for the same reference year.
There is an instruction guide for each Section (designated by roman numerals), Line Item
(designated by numbers) and Columns (designated by capital letters) in the template.
Please fill out information for the project being evaluated. Required fields are highlighted in an
orange dotted formatting. As information is entered the cell shading will change to white. You
will have an opportunity and are strongly encouraged to attach methodology and assumption
descriptions for any calculations in the Comment and Documentation fields. Please Note: Do
Not modify the template spreadsheet or add any line items. You will have an opportunity to list
costs unspecified in the template under the Line Item “Other” and attach documentation and
comments corresponding to this Line Item.
1
Terms with initial capitalization not defined herein have the meaning set forth in the NYISO’s
Market Administration and Control Area Services Tariff (Services Tariff), and if not defined therein, then
in the Open Access Transmission Tariff.
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2. Column Items Guide
Section (A). Input
This field requires an entry of data or information corresponding to the indexed line items. For
more guidance on the individual inputs refer to indexed line item instructions below.
Section (B). Comment
The comment field is an opportunity to clarify or comment on information inserted in the Input
field. Please describe any assumptions. Fields that require substantial assumptions descriptions
should be documented with supplemental attachment(s).
Section (C). Documentation Reference
To fill out the Documentation Reference field, please name and list attachments on the
“Documentation Organizer” tab of the Template. These are to be submitted with the Template.
Figure 1 illustrates the tab.
Figure 1
As you fill out the Template, please reference the Attachment number (e.g., Attachment 6) and
the exact location of the required information (e.g., page 5, Cell C9, Tab “X”, Table “Y”). You
can reference more than one attachment for each line item; however, please be sure to indicate
which data or field each attachment is documenting. Whenever possible, compile documentation
spreadsheets for easier reference (e.g., payroll data compiled into one spreadsheet with data tabs
for each year.)
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3. Line Items Guide
Please fill out the line items specified in the template and defined below. Do not add lines. If a
specific line item is not designated in the template, please include the cost in the Line Item
“Other” and provide Comments and appropriate Documentation.
Section I. General Unit Information
General Unit Information
1. Owner /Operator: Name of the company, as stated in the NYISO Interconnection Queue.
2. Station Unit: Unit name as it appears in the MIS, if known. Otherwise, enter the unit
name as it appears in the NYISO interconnection queue.
3. PTID: PTID from the MIS relating to the unit, if known. Otherwise, enter “N/A”.
Section II. Capital Cost Inputs
The Capital Cost Inputs section provides the component inputs to ICkw , expressed in terms of
total investment expenditures over the construction period. These include capitalized interest
and other capitalized costs, estimated to be incurred (if not yet incurred) or incurred up to the
project in-service date.
Capital investment cost inputs account for all direct costs, owner’s costs, financing costs incurred
during construction, along with working capital and inventories. 2 Direct costs include the cost of
equipment, materials, labor associated with the generating plant, electrical interconnections, gas
interconnections and transmission system upgrades. They also include project costs awarded on
an engineering, procurement and construction (EPC) contract basis.
Input values should be expressed in the reference year dollars. The reference year for the
purposes of the analysis, is the year that is three years from the Class Year of the project. For
example, the reference year of a Class Year 2013 project is 2016. Please inflate or deflate cost
estimate values to the reference year as defined above using the inflation rate of the ICAP
Demand Curves accepted at the time template is submitted. For example, if the template is
completed in February 2014 and new ICAP Demand Curves are accepted but not yet effective,
use the inflation rate in the accepted Demand Curves.
Financing costs during construction refer to the cost of debt and equity required over the periods
from each construction expenditure date through the plant in-service date. These costs are
calculated from the monthly construction cash flows and the cost of project debt and equity.
Financing costs are calculated using real (inflation removed) rates of interest and equity rates of
return.
2
Attachment 1 and these instructions have been prepared using the example of a natural gas fired
combustion turbine in simple or combined cycle mode, but can be applied to other fuels and technologies
as required.
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EPC Cost Components
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Equipment:
Cost of the gas turbines, heat recovery steam generator (HRSG), steam turbine and
balance of plant. This may also include owner furnished equipment outside the scope
of an EPC contract arrangement.
Spare Parts:
All capitalized spare equipment that is put in the warehouse on site and that will, or
can, be used on the plant after commercial operations commence.
Construction Labor & Materials:
All labor utilized in construction of the actual plant. It also includes materials used in
constructing the plant.
Electrical Connection & Substation:
Costs associated with connecting the site, transformer(s) and meter(s) to the substation
that connects to the electrical grid of the host transmission owner.
Electrical Interconnect & Upgrades:
Costs associated with transmission system interconnection and upgrades, including
NYISO Project Cost Allocations for System Upgrade Facilities (SUF) and System
Deliverability Upgrades.
Gas Interconnect & Reinforcement:
Costs associated with the gas line connecting to the facility. Please describe the gas
connection system and permits associated with acquiring. If there are other fuels, like
oil, then the storage facility and any other items needed to supply the tank would also
be included (e.g., a dock for offloading ships or connecting station for offloading trucks
would be included.)
Site Prep:
Costs associated with clearing and preparing the site for construction of new facility.
Engineering & Design:
Costs associated with the plant. They include all the engineering studies and design
costs associated with the site.
Construction Mgmt./ Field Engr./Indirects:
Costs associated with the fee for managing the construction plan, any field engineers
required to assist in developing the site and/or plant, along with any other indirect costs
not captured in other lines.
Startup & Training:
Costs associated with the training of personnel to operate any of the new systems and
all costs that are part of the commissioning of the site; including fuel, additional labor
not included elsewhere and parts used during the startup process.
Testing:
Costs associated with all the tests required by manufacturers, transmission companies
and others, which are required to prove the site is safe for operation within normal
operating parameters.
Contingency:
Sum of the contingencies of the EPC component costs, recognizing for costs that are
covered under fixed price contracts and require minimal contingency, while accounting
for the current status of non-fixed price components.
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16.
Other:
Please sum other EPC costs not included in line items above and include comments
identifying and describing costs and provide associated documentation.
Non-EPC Cost Components
Non-EPC Costs are owner’s cost items not covered by the EPC scope. If the identified categories
do not provide an opportunity for the project’s costs to be categorized, the owner/developer may
aggregate some of the existing categories under other categories or add new categories. For
example, permitting costs may include a portion of legal costs; owner’s development costs may
include a portion of project management costs, etc. The owner/developer may include other
costs not explicitly indicated. These might include startup and testing oversight, O&M training
and mobilization and could be placed under an existing category, if possible, or they could be
added in the “Other” category. Please provide detailed comments and documentation. Do not
duplicate costs included in other line items.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Permitting:
Costs associated with obtaining permits for plant operation. These typically include air,
water and building permits, and Public Service Law Article 7 or 10 permits.
Legal:
Total legal cost, excluding legal costs that are accounted for in other categories such as
Permitting, Studies, Contracting or Other. In the comment section specify the amount
of legal costs included in other categories, and specify the category.
Owner’s Project Mgmt. & Misc. Engr.:
Costs related to any personnel that the developer hires to oversee the EPC contractor
and engineers.
Social Justice:
Costs related to special conditions imposed on the developer, such as by the
communities surrounding the site, and which are required in order for the developer to
gain approval for installation of the project (e.g., community outreach and other special
projects).
Owner’s Development Costs:
Internal costs, site surveys, miscellaneous development fees that are not included in
above categories.
Financing Fees:
Financing fees, which include bank agency fees, lender legal fees, title insurance and an
up-front debt fee. Please include interest during construction separately, in the line
item below. Financing fees should be adjusted for any mortgage recording tax (MRT)
waivers. In addition, if an MRT is applicable to the project, state the basis for the
project being eligible.
Financial Advisory:
If the developer of the project is using a consultant or financial advisor to advise them
on the project development and financing, then its cost would be included in this line.
Environmental Studies:
Costs of consultants, lawyers and fees utilized to complete environmental studies
required by regulators in the approval process of developing the project.
Market Studies:
Costs of consultants, lawyers and fees utilized to complete market studies required by
regulators in the approval process of developing the project.
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26.
Interconnection Studies:
Costs of consultants, lawyers and fees utilized to complete interconnection studies
required by regulators in the approval process of developing the project.
27. Insurance:
Costs for insurance during construction.
28. Emission Reduction Credits:
Costs associated with the purchase of Emission Reduction Credits, as required.
29. Other:
Sum other Non-EPC costs not included in line items above and include comments
identifying and describing costs and provide associated documentation.
Financing (including Allowance for Funds Used during Construction (AFUDC), Interest during
Construction (IDC))
30.
EPC Portion:
Interest and fees paid to finance the EPC portion of the project, until the EPC turns the
project over to the developer. Financing costs are calculated using real (inflation
removed) rates of interest and equity rates of return.
31. Non-EPC Portion:
Interest and fees paid to finance the Non-EPC portion of the project, until the EPC turns
the project over to the developer. Financing costs are calculated using real (inflation
removed) rates of interest and equity rates of return.
32. Other:
Please sum other Financing costs not included in line items above and include
comments identifying and describing costs and provide associated documentation.
Working Capital and Inventories
33.
34.
Working Capital and Inventories:
Cost of initial inventories of fuel, consumables and spare parts that are typically
capitalized and working capital cash for the payment of monthly operating expenses.
Other:
Please sum other Working Capital and Inventories costs not included in line items
above and include comments identifying and describing costs and provide associated
documentation.
Section III. Plant Performance
The Plant Performance section states capacity in terms of Installed Capacity, EFORd and data to
support the derivation of net energy and ancillary services revenues (NER and ASR). The inputs
include capacity values, heat rates, start fuel consumption, emission rates, ramp rate, Mingen and
heat rate at mingen, startup curve in mmbtus, minimum runtime and minimum offtime. Please
refer to instructions for Attachment 3.
The CONE inputs for net plant capacity are expressed as “new and clean” and “average
degraded” values, each for both summer and winter ambient conditions. Provide values for each
with and without the use of duct firing, if applicable. Degraded values are to represent the longterm average, taken over the long-term major maintenance interval. Please note in the comment
field whether or not duct firing is applicable, the period for which the long term average is
computed and the basis therefor.
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The CONE inputs for net plant heat rate are expressed as average degraded summer and winter
values on a full-load, higher heating value (HHV) basis. Values should otherwise represent the
same conditions as described below. Specify in a note in Attachment 3 described below the
period for which the long term average for the “average degraded” value is computed and the
basis therefor (see details in a section below).
The CONE input values for NOX and CO2 emissions are based on the summer and winter values,
expressed in lb/mmbtu. Emission rates should be based on average long-term degraded
performance averaged over the long-term major maintenance interval.
The start-up fuel refers to the amount of natural gas consumed by the entire plant for a warm
start through the point of reaching the steam turbine maximum load, which corresponds to the
plant maximum load.
Net Plant Capacity: Unfired
35. Summer (MW) 83°F, 64.3% RH
36. Winter (MW) 28°F, 61.7% RH
37. ISO Conditions (MW) 59°F, 60% RH
38. ICAP (MW) 90°F, 70% RH, margined & avg. degraded value, with evaporative
cooling.
39. ICAP (MW) 90°F, 70% RH, new and clean value, with evaporative cooling.
Net Plant Capacity: Duct Fired
40. Summer (MW) 83°F, 64.3% RH
41. Winter (MW) 28°F, 61.7% RH
42. ISO Conditions (MW) 59°F, 60% RH
43. ICAP (MW) 90°F, 70% RH, margined & avg. degraded value, with evaporative
cooling.
44. ICAP (MW) 90°F, 70% RH, new and clean value, with evaporative cooling.
Net Plant Heat Rate: Unfired
45. Summer (BTU/kWh-HHV) 83°F, 64.3% RH
46. Winter (BTU/kWh-HHV) 28°F, 61.7% RH
47. ISO Conditions (BTU/kWh-HHV) 59°F, 60% RH
48. ICAP (BTU/kWh-HHV) 90°F, 70% RH, margined & avg. degraded value, with
evaporative cooling.
49. ICAP (BTU/kWh-HHV) 90°F, 70% RH, new and clean value, with evaporative cooling.
Net Plant Heat Rate: Duct Fired
50. Summer (BTU/kWh-HHV) 83°F, 64.3% RH
51. Winter (BTU/kWh-HHV) 28°F, 61.7% RH
52. ISO Conditions (BTU/kWh-HHV) 59°F, 60% RH
53. ICAP (BTU/kWh-HHV) 90°F, 70% RH, margined & avg. degraded value, with
evaporative cooling.
54. ICAP (BTU/kWh-HHV) 90°F, 70% RH, new and clean value, with evaporative cooling.
Other
55.
Equivalent Forced Outage Rate on Demand (EFORd):
Buyer Side Mitigation Exemption Template Instructions | August 29, 2013 | 9
56.
The Equivalent Forced Outage Rate on Demand (EFORd) refers to the plant’s EFORd
during the period when the plant is actually dispatched. The plant’s UCAP value,
which is the maximum capacity a generator is able to sell in the capacity auction, is
equivalent to ICAP*(1 - EFORd). Provide the basis or a relevant data source to explain
the project’s expected EFORd.
Natural gas consumed during start (MMBTU-HHV/start, per unit)
NOx Emissions (lb/mmbtu) - With Duct Firing
57.
58.
59.
60.
61.
Summer
Winter
Spring-fall
Average
ICAP
NOx Emissions (lb/mmbtu) - Without Duct Firing
62.
63.
64.
65.
66.
Summer
Winter
Spring-fall
Average
ICAP
CO2 Emissions (lb/mmbtu) - With Duct Firing
67.
68.
69.
70.
71.
Summer
Winter
Spring-fall
Average
ICAP
CO2 Emissions (lb/mmbtu) - Without Duct Firing
72.
73.
74.
75.
76.
Summer
Winter
Spring-fall
Average
ICAP
Section IV. Operating Cost Inputs
The Operating Cost Inputs section provides variable costs and fixed costs associated with the
operation and maintenance of the plant. Cost input values are to be based on the reference year.
Fixed O&M ($/Year)
Fixed O&M costs are annually recurring costs that do not vary substantially with generating
output. Fixed O&M includes costs that are directly related to the plant (labor, materials, contract
services for routine O&M, administrative and general costs) and other fixed operating costs that
are related to the location (site leasing costs, property taxes and insurance.) Provide long-term
averaged values, expressed in the reference year dollars and indicate cost escalation assumptions
for each line item.
Buyer Side Mitigation Exemption Template Instructions | August 29, 2013 | 10
77.
Labor - Routine O&M:
Full-time equivalent staffing costs, including salaries and benefits, for plant
management, operation and maintenance.
78. Materials and Contract Services – Routine:
Relatively fixed annual costs of materials and supplies and contract services. This
input may also include the fixed payment component of long-term service agreements
or other contract services.
79. Administrative and General:
On-site and home office costs not covered above under routine labor or contract
services.
80. Other:
Dum other Fixed O&M costs not included in line items above and include comments
identifying and describing costs and provide associated documentation.
Other Fixed Costs ($/Year)
81.
Site Leasing Costs:
Annual lease payments for the site, if applicable.
82. Property Taxes:
Property valuation, assessment ratios and tax rates applicable to the specific project and
site. Indicate the full value, unadjusted for depreciation or any eligible property tax
exemptions. State any payments in lieu of taxes (PILOT) and the term thereof, if
applicable. Depending on the form and availability of property tax data, the
owner/developer may choose to enter this information under the Financial Inputs.
83. Insurance:
All applicable annual premiums during the plant operating life, unadjusted for
depreciation. Depending on the form and availability of insurance data, the
owner/developer may choose to enter this information under the Financial Inputs.
84. Other:
Please sum other fixed costs not included in line items above and include comments
identifying and describing costs and provide associated documentation.
Variable O&M ($/MWh)
Variable O&M costs are annually recurring costs that are directly proportional to generating
output. Variable O&M costs, along with fuel costs, are used to develop net energy and ancillary
services revenues (NER and ASR). Base the indicated variable O&M costs on pricing
information from any long-term service agreements for major maintenance parts and labor, along
with current local pricing and material balances for consumable items such as ammonia, water
and sewer, and water treatment chemicals.
Since major maintenance activities and costs are spaced irregularly over the long-term, indicate
for them a long-term average value over the major maintenance interval, expressed in the
reference year dollars. On this basis the average cost represents an annual accrual for future
major maintenance. For hours-based major maintenance, the average variable O&M cost
($/MWh) is equal to the total cost of parts and labor over a complete major maintenance interval,
divided by the factored operating hours between overhauls and further divided by the unit
capacity in megawatts. For starts-based major maintenance, the average variable O&M cost
($/factored start, per turbine) is equal to the total cost of parts and labor over a complete major
Buyer Side Mitigation Exemption Template Instructions | August 29, 2013 | 11
maintenance interval, divided by the factored starts between overhauls. Please indicate whether
the value presented is hours-based or starts-based.
Please also include other variable O&M costs that are directly proportional to plant generating
output. These should include costs related to unscheduled maintenance, the SCR catalyst,
ammonia, the CO oxidation catalyst, water and other chemicals and consumables. These items
are always expressed in $/MWh, regardless of whether the maintenance component is hoursbased or starts-based.
85.
86.
87.
88.
89.
90.
91.
92.
Major Maintenance Parts
Major Maintenance Labor
Unscheduled Maintenance
SCR Catalyst and Ammonia
CO Oxidation Catalyst
Other Chemicals and Consumables
Water
Other:
Please sum other Variable O&M costs not included in line items above and include
comments identifying and describing costs and provide associated documentation.
Variable O&M - Cost per Start per CT
93. Major Maintenance Parts
94. Major Maintenance Labor
95. Total ($/factored start, per turbine)
96. Other:
Please sum other Variable O&M costs not included in line items above and include
comments and documentation.
Section V. Financial Inputs
The Financial Inputs section provides the components necessary for calculating the levelized
carrying charge rate (LCC). The LCC converts the ICkw, into a levelized annual value over the
project amortization period and is expressed in $/kW-year ICAP. Carrying charges typically
include all annual costs that are a direct function of the capital investment amount: principal and
interest payments on project debt, equity returns, income taxes, property taxes and insurance.
The owner/developer may include property taxes and insurance as an O&M input on Attachment
2, depending on the format and availability of this data. Specify what is included.
Represent the project debt and equity as weighted averages over the duration of the respective
financing periods. The costs of debt and equity are to be indicated on a nominal basis (e.g., as
quoted by project lenders under the terms of the debt), without removing the implicit inflation
component. The cost of debt is to be expressed on a pre-tax basis, not adjusted for the taxdeductibility of interest payments. The cost of equity is to be expressed on an after-tax basis.
Income tax rates are to account for the project ownership structure, such as a corporation or a
limited liability company (LLC). LLC’s are to state the income tax rates for each equity
investor. The tax rates should account for all applicable tax liabilities, deductions, and credits,
weighted by ownership shares. Explain why that tax rate is applicable.
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97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
Equity Fraction
Debt Fraction
Cost of Equity (after tax, nominal, %/year)
Cost of Debt (pre-tax, nominal, %/year)
Useful Life - Equity Horizon (years)
Average Debt Maturity (years)
Federal Tax Rate (%)
State Tax Rate (%)
City Tax Rate (%)
Other Taxes or Credits (%)
Effective Tax Rate (%)
Tax Depreciation Schedule (e.g., MACRS, years)
Other:
Please sum other financial details not included in line items above and include
comments and provide associated documentation.
Annual Property Taxes
110. Expressed as percent of initial capital cost
111. Expressed as an annual value
112. Other
Please include other property tax costs or details not included in line items above and
include comments describing costs and provide associated documentation.
Annual Insurance Costs
113. Expressed as percent of initial capital cost
114. Expressed as an annual value
115. Other
Please include other insurance costs or details not included in line items above and
include comments describing costs and provide associated documentation.
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4. Supporting Documentation Requirements
In addition to the completed Input Template, please prepare the following required documents:
Attachment 1: Project Report
Attachment 2: Project Cost Financial Model
Attachment 3: Plant Performance Model
Attachment 4: Revenue Forecasts Model
To facilitate confirmation that all required documentation and documentation referred to in the
template is uploaded, please complete the Documentation Organizer. In addition to the required
documents listed above, please attach any other supporting documents to substantiate the
modeled figures.
Please list the document names and their descriptions in the appropriate columns. When referring
to documents, please use the corresponding Attachment # in the Document Organizer (i.e.
Attachment 1, p. 101). You may add lines to the Documentation Organizer Tab.
Attachment 1: Project Report
Please compile a Project Report, outlining the following components. Include additional
documentation as needed.
I.
Project Characteristics
i.
II.
Description of plant site, major equipment, and design features including the
following:
a) Site location and description
b) Site conditions
c) Gas turbine model
d) HRSG type
e) Steam turbine type
f) Performance features (e.g., duct firing, inlet air filters, inlet air chillers,
evaporative coolers, etc.)
g) Environmental control (e.g., dry low-NOx burners, SCR, CO catalyst, etc.)
h) Water and wastewater treating equipment (e.g., rental trailer-mounted water
treating, tanker truck wastewater disposal, etc.)
i) Backup fuel capability and storage
j) Black start capability
k) Foundation type (e.g., piles, spread footings, etc.)
l) Buildings (e.g., steam turbine building, control/administration building, etc.)
m) Fuel gas compressors and supply pressure
Project Status
i.
Description of current project status and schedule, including the following:
a)
b)
c)
d)
e)
Environmental permits
Electrical interconnection
Transmission system upgrade requirements
Gas interconnection
Water supply
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f)
g)
h)
i)
j)
k)
ii.
iii.
III.
Fuel supply agreements
Selection and award of EPC contractor
Fuel supply agreements
O&M agreements
Other operational agreements
Project financing
Basis for EPC costs (e.g., studies, union or non-union labor, preliminary bids, signed
fixed price contracts, etc.).
Basis for owner’s costs (e.g., costs incurred to date, mortgage recording tax waivers,
etc.) and description of major items included under each line item.
Plant Performance
i.
ii.
IV.
i.
ii.
iii.
V.
Basis for performance assumptions such as EPC performance guarantees or
performance tests. Attach additional documentation as needed.
Description of forecasted amounts of revenue, the sources of those revenues (power
purchase agreements, merchant revenues, ancillary services, etc.), and basis for
forecasted revenues.
O&M
Description of O&M organization including O&M agreements, long-term service
agreements, payment structures, and current status.
Description of property tax assumptions, including applicable assessment ratios, tax
rates, payments in lieu of taxes (PILOT), and eligibility for property tax exemptions.
Description and status of fuel supply agreements and other operational agreements.
Financial Assumptions
i.
ii.
iii.
Description of project financing plan, including debt and equity portions, sources of
debt, expected tenors and interest rates, names of equity investors, equity horizon
(years), target after-tax equity returns, current status of financing activities, and
expected date of financial closing.
Description of project ownership structure (corporation, LLC, etc.) and ownership
share percentages.
Description of all applicable tax liabilities for the project ownership structure,
whether corporate or individual partner level, including but not limited to federal,
state, and city income taxes, franchise taxes, unincorporated business taxes, and
allowable tax deductions and credits.
Attachment 2: Project Cost Financial Model
Please compile an Excel model containing the following:
i.
Project financial model that includes representation of all capital investment costs for
project financing, including but not limited to EPC and non-EPC costs, owner’s costs,
capitalized interest during construction, contingencies and all other capitalized costs.
The model should include the monthly drawdown payments over the construction
period.
ii.
Project financial model that includes representation of fixed and variable O&M
expenditures over the facility operating life (stating the operating life and the basis for
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iii.
that number of years), including but not limited to major maintenance expenditures
and cost escalation assumptions.
Project financial model that includes representation of all financing and tax
assumptions, including but not limited to debt amortization schedules, after-tax cash
flows to equity, tax depreciation schedules, application of all applicable federal, state,
city, and other income taxes, tax deductions and tax credits, the application of
property taxes, other payments in lieu of taxes and any property tax exemptions.
Attachment 3: Plant Performance Model
Please compile an Excel model containing the following:
i.
A representation of projected operating performance over the facility operating life
(stating the operating life and the basis for that number of years), including assumed
annual operating hours, annual starts, mmbtu required per start for each hour the plant
has been off (up to the maximum required for a cold start), net capacity values, net
plant heat rate curves, minimum load, ramp rate, minimum runtime and downtime,
the amount of megawatts available for each ancillary service (i.e. 10 minute
spinning/non-spinning reserves), part load operation, forced outage hours, planned
outage hours, major maintenance expenditures, and cost escalation assumptions.
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