generation services budget 2016 presentationfy 2016 – nsm transfer trip fiber upgrade . february...

N O R T H E R N C A L I F O R N I A P O W E R A G E N C Y

Generation Services Budget 2016

February 23, 2015 1


Generation Services Budget 2016 Summary 2015 % Change 2016 Comments GS Overhead

Routine O&M $1,698,746 -8.5% $1,555,017 Projects $0 0.0% $0 Total $1,698,746 -8.5% $1,555,017

Hydro Routine O&M $7,821,020 3.3% $8,079,764 Increase $150k Contract support until Eng. vacancy can be filled,

Change in FOA to Buyer Position Projects $2,265,000 -11.9% $1,995,000 Total $10,086,020 -0.1% $10,074,764

Geo Routine O&M $16,083,054 1.1% $16,263,350 Proposed reduction 1 Op Tech Projects $2,991,400 19.5% $3,575,000 Total $19,074,454 4.0% $19,838,350

CT1 Routine O&M $1,263,462 1.7% $1,285,876 Projects $1,082,600 -0.8% $1,074,200 Total $2,346,062 0.6% $2,360,076

CT2 Routine O&M $1,235,615 2.1% $1,261,773 Projects $143,500 -44.2% $80,060 Total $1,379,115 -2.7% $1,341,833

LEC Routine O&M $11,586,786 11.9% $12,965,610 Increase output 48% to 64%, LTSA Increases, Inclusion of sales

tax in LTSA, Lease agreement increase, Final Payment to PG&E Transmission Upgrade

Projects $6,791,260 -56.5% $2,954,589

Total $18,378,046 -13.3% $15,920,199 Total

Routine O&M $39,688,683 4.3% $41,411,390 Projects $13,273,760 -27.0% $9,678,849 Total $52,962,443 -3.5% $51,090,239

February 23, 2015 2


Gen Services Roseville Budget

February 23, 2015 3

FY 2015 Budget

Proposed FY 2016 Budget

Increase / (Decrease)

Routine O&M Costs Operations $300,000 $275,000 ($25,000) Administration 65,000 65,000 0 Routine O&M Costs w/o Labor 365,000 340,000 ($25,000)

Labor 1,333,746 1,215,017 ($118,729) Total Routine O&M Costs 1,698,746 1,555,017 ($143,729)

Occupancy Cost 155,833 90,000 ($65,833) Annual Budget Cost 1,854,579 1,645,017 ($209,562)


February 23, 2015 4


February 23, 2015

FY 2015 Current Increase / (Decrease) FY 2016 Proposed Routine O&M Costs Fixed $1,347,035 $ 186,000 $1,533,035 Water for Power 293,000 $ (18,000) 275,000 Administration 211,100 $ (9,000) 203,700 Mandatory Costs 1,824,320 $ (71,320) 1,753,000 Transmission O&M 235,000 $ 20,000 255,000 Routine O&M w/o Labor 3,910,455 $ 109,280 4,019,735

Labor 3,910,565 149,464 4,060,029 Total Routine O&M Costs 7,821,020 258,744 8,079,764

Other Costs Debt Service 37,884,580 50,073 37,934,653 Other Costs 1,160,949 (85,897) 1,075,052 CAISO Charges 240,243 TBD Generation Services Shared 395,418 (57,046) 338,372 Administrative & General 1,418,717 TBD Total O&M Costs 48,920,927 TBD

Projects O&M Projects 910,000 660,000 Capital Projects 355,000 210,000 Capital Development Reserve 1,000,000 1,125,000 Total Capital Budget 2,265,000 ($270,000) 1,995,000

Total Routine O&M/Projects 10,086,020 10,074,764 Annual Budget Cost 51,185,927 TBD

5

-11.9% in Projects

Labor increase per Union MOU Change in FOA to Buyer

Hydroelectric FY 2016 Proposed Budget

+2.79% in Routine O&M (-1.0% if engineer hired)

+$150K for contract engineering


HYDRO - FY 2016 Proposed Projects

February 23, 2015 6

O&M Projects Notes $ 660,000 CV Needle Actuator Rebuild D 100,000 CV Battery Chargers Upgrade D 75,000 CV Turbine Coupling Bolts M 80,000 RTU Telemetry Upgrades M 90,000 NSM Transfer Trip Fiber Upgrade D 65,000 MPRRL GPS Upgrade M 100,000 Physical Security Improvements M 150,000

General & Plant Projects Notes $ 210,000 Snow Cat Replacement D 140,000 Vehicle Replacement D 70,000

Capital Development Reserve Projects Notes $ 1,125,000

McKays Reservoir & Dam Betterment (Clean Out) M, CR 750,000

CV Unit 1 Generator Rewind M, CR 250,000

Beaver Creek Dredging M, CR 125,000


FY 2016 – CV Needle Valve Actuator Rebuild

February 23, 2015 7

Total FY 2015 FY 2016 FY 2017 FY2018 Cost to Current

Project Notes Complete Budget

CV Needle Actuator Rebuild D 350,000

100,000

100,000 100,000 50,000 Notes:

D Discretionary M Mandatory

CR Annual deposit to the Capital Development Reserve

• Project initiated in 2008 based on failure of similar plant in Alaska.

• Seven (7) rebuilt to date. Five (5) to go.

• Plan to rebuild two per year.

Useful Life (Years): 20 IRR: 15.1% Payback (years): 8.8 NPV @ 5%: $ 930,690 Est. Annual Benefits: $ 107,350

Financial Evaluation:


FY 2016 – CV Battery Chargers Upgrade

February 23, 2015 8



CV Battery Chargers D 75,000 0

75,000 0 0 Notes:



• Upgrade of Collierville’s obsolete 125 VDC and 48 VDC battery chargers and inverters.

• DC trouble alarms triggered by failed, malfunctioning, or drifting chargers is a common (and increasing) problem.




FY 2016 – CV Turbine Coupling Bolts

February 23, 2015 9


Project Notes Complete Budget CV Turbine Coupling Bolts M 140,000 60,000 0 80,000 0

Notes: D Discretionary M Mandatory


• Collierville turbines bolted to generator coupling shafts by 12 high strength friction bolts.

• Each bolt has been stretched / stressed multiple times.

• Failure of the turbine / shaft coupling would result in catastrophic damage.




FY 2016 – RTU Telemetry Upgrades

February 23, 2015 10



RTU Telemetry Upgrades M 90,000 0

90,000 0 0 Notes:



• Life-cycle upgrades of DC power systems and RTU communications at Remote Telemetry Sites.

• Required to maintain compliance with FERC, USGS, & SWRCB licenses and regulations.

Financial Evaluation: Mandatory


FY 2016 – NSM Transfer Trip Fiber Upgrade




NSM Transfer Trip Fiber D 65,000 0

65,000 0 0 Notes:



• Fiber optic connection from Collierville to PG&E Stanislaus PH to allow for re-routing of NSM transfer trip scheme and elimination of AT&T lease circuit.

• Benefits: Reduction in forced outages (increased generation), lease cost savings, reduction in OT, & improved safety.




FY 2016 – MPRRL Landslide GPS Upgrade




MPRRL Landslide GPS M 100,000 0

100,000 0 0 Notes:



• Landslide adjacent to McKays Dam.

• Monitoring mandated by FERC & DSOD.

• Required by the Emergency Action Plan for public safety.



FY 2016 – Physical Security Improvements




Physical Security D 425,000 0

150,000 0 0 Notes:



• Fencing and gate improvements to NSM powerhouse, all microwave hilltops, and Murphys.

• Video surveillance improvements at Collierville, NSM, McKays, Murphys .

• Additional lighting surrounding Collierville.

• Access control / card readers at exterior doors and server racks .

• Additional motion detector beams at Collierville PH and switchyard.

Financial Evaluation: Varies by improvement. Risk and financial analysis completed by consultant.


FY 2016 – Snow Cat Replacement


FY 2015 FY 2016 FY 2017 FY 2018 Current

Project Notes Budget

Vehicle Replacement D 0

140,000 0 0 Notes:



• Life-cycle replacement for 23 year old LMC 2-track cat.

• Benefit: Improved safety, reliability, and fuel efficiency for the ~6 months each year when snow cat is the only method of transportation for the upper project.

• ~$20K to $25K in anticipated resale or trade-in for current Cat.


FY 2016 – Vehicle Replacement




Vehicle Replacement D 55,000

70,000 70,000 55,000 Notes:



• Routine vehicle replacement for high mileage, high maintenance, or unsafe vehicles.

• Hydro Fleet: 17 trucks collectively logging 200,000+ miles annually.

• Two (2) vehicles proposed for replacement in FY2016.


FY 2016 – McKays Reservoir Clean Out Reserve


Total FY 2015 FY 2016 FY 2017 FY 2018 Cost to Current


McKays Reservoir Betterment M, CR $20.5M+ 750,000 750,000

750,000 750,000



• Ongoing collection for Capital Development Reserve

• Mandatory for Dam Safety & Operational Flexibility

• ~$13 M will have been collected by end of FY 2015

Useful Life (Years): 20 IRR: 7.0% Payback (years): 14.6 NPV @ 5%: $ 2,627,467 Est. Annual Benefits: $ 773,880



FY 2016 – CV Generator Rewind Collection




CV Generator Rewind M, CR

6,000,000 250,000

250,000

250,000 200,000 Notes:



• CV2 rewind tentatively planned to coincide with outage for McKays sediment removal project

• ~$4.5M will have been collected by end of FY 2015

• Total Cost ~ $5M - $6.5M • Materials ~ $1.5M - $1.75 M per unit • Labor ~ $1M - $1.5M per unit

Useful Life (Years): 20 IRR: 18.2% Payback (years): 7.0 NPV @ 5%: $ 4,846,624 Est. Annual Benefits: $ 528,766



FY 2016 – Beaver Creek Dredging




Beaver Creek Dredging M $600,000 300,000 0 125,000 125,000 Notes:



• Recurring maintenance to remove sediment & debris (1997, 2006, 2008)

• Removal of ~ 5,000 cubic yards of debris

• Annual generation of ~66,000 MWh

Financial Evaluation: Useful Life (Years): 5 IRR: 182% Payback (years): 2.7 NPV @ 5%: $ 962,585 Est. Annual Benefits: $ 218,250


HYDRO - FY 2016 Proposed Projects


O&M Projects Notes $ 660,000 CV Needle Actuator Rebuild D 100,000 CV Battery Chargers Upgrade D 75,000 CV Turbine Coupling Bolts M 80,000 RTU Telemetry Upgrades M 90,000 NSM Transfer Trip Fiber Upgrade D 65,000 MPRRL GPS Upgrade M 100,000 Physical Security Improvements M 150,000

General & Plant Projects Notes $ 210,000 Snow Cat Replacement D 140,000 Vehicle Replacement D 70,000

Capital Development Reserve Projects Notes $ 1,125,000

McKays Reservoir & Dam Betterment (Clean Out) M, CR 750,000

CV Unit 1 Generator Rewind M, CR 250,000

Beaver Creek Dredging M, CR 125,000


HYDRO Total Routine + Project Forecast


FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 TOTAL ROUTINE O&M + PROJECTS $10,074,764 $10,952,157 $11,010,014 $11,471,164 $11,695,149 $12,172,204 $12,457,570 $12,401,497 $12,648,684

TOTAL ROUTINE O&M $8,079,764 $8,322,157 $8,571,822 $8,828,976 $9,093,846 $9,366,661 $9,647,661 $9,937,091 $10,235,203

O&M PROJECTS $660,000 $985,000 $800,000 $750,000 $700,000 $750,000 $900,000 $750,000 $750,000 CV Needle Actuator Rebuild 100,000 100,000 50,000 - - - - - - 2409 Part 12 Study - - - - 200,000 - - - - 11563 Part 12 Study - 150,000 - - - - 150,000 - - CV Tunnel Intake Transfer Trip - 100,000 - - - - - - - CV Units Generator Protection - 35,000 - - - - - - - CV Battery Chargers Upgrade 75,000 - - - - - - - - CV Turbine Coupling Bolts 80,000 - - - - - - - - RTU Telemetry Upgrades 90,000 - - - - - - - - NSM Transfer Trip Fiber Upgrade 65,000 - - - - - - - - MPRRL GPS Upgrade 100,000 - - - - - - - - Physical Security 150,000 - - - - - - - - Paint CV Recreation Bridge - 100,000 - - - - - - - NFDD Tunnel Repairs - 150,000 - - - - - - - CV Guide Bearing Conversion - 250,000 250,000 - - - - - - Union Slide Gate Replacement - - 350,000 - - - - - - Unidentified Projects - 100,000 150,000 750,000 500,000 750,000 750,000 750,000 750,000

CAPITAL PROJECTS 210,000 520,000 555,000 805,000 810,000 960,000 810,000 810,000 750,000 Vehicle Replacement 70,000 70,000 55,000 55,000 60,000 60,000 60,000 60,000 - Snow Cat 140,000 - - - - 150000 - - - Spicer Snow Cat Building - 200,000 - - - - - - - Microwave Radio Replacement - - - 500,000 - - - - - Unidentified Projects - 250,000 500,000 250,000 750,000 750,000 750,000 750,000 750,000

RESERVE FUNDING 1,125,000 1,125,000 1,083,192 1,087,188 1,091,304 1,095,543 1,099,909 904,406 913,481 McKay's Sediment Removal 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 CV Generator Rewind 250,000 250,000 200,000 200,000 200,000 200,000 200,000 - - Beaver Creek Dredging 125,000 125,000 133,192 137,188 141,304 145,543 149,909 154,406 163,481 FERC Relicensing - - - - - - TBD TBD TBD


GEO FY 2016 Proposed Budget

23

2% increase in Routine O&M

Labor increase per Union MOU, Staff Reduction of 1

FY 2015 Current Increase / (Decrease) FY 2016 Proposed

Routine O&M Costs Variable $871,000 $54,000 $925,000 Fixed 3,673,731 $13,969 3,687,700 Steam Royalties (variable) 1,876,000 $0 1,876,000 Administration 409,000 $58,000 467,000 Mandatory Costs 348,500 $20,000 368,500 Inventory 270,000 $5,000 275,000 Transmission O & M 51,095 $0 51,095 Routine O&M Costs w/o Labor 7,499,326 $150,969 7,650,295

Labor 8,583,728 $29,327 8,613,055

Total Routine O&M Costs 16,083,054 $180,296 16,263,350

Other Costs Debt Service 5,106,985 $1,944 5,108,929

CA ISO Charges (variable): 565-023-060-200-070-000- - - - ISO GMC Charges 312,417 ($312,417) 0 Other Costs 4,063,606 $241,043 4,304,649 Generation Services Shared 887,157 ($150,764) 736,393 Administrative & General 2,882,295 ($2,882,295) 0 Total O&M Costs 29,335,514 ($2,922,193) 26,413,321

Projects O&M Projects 972,000 528,000 1,500,000 Capital Projects 369,400 55,600 425,000 Maintenance Reserve 1,650,000 0 1,650,000

Total Project Budget 2,991,400 $583,600 3,575,000

Total Routine/Project Budget 19,074,454 $763,896 19,838,350

Annual Budget Cost 32,326,914 -2,338,593 29,988,321

19.5% increase in Projects


GEO - FY 2016 Proposed Projects


0 & M Projects Notes Plant 2 Fire System M 300,000 Plant, Yard & Road Repairs M 175,000 Plant 1 Bridge Crane Overhaul M 100,000 Sed Basin Concrete Maintenance & Coating M 300,000 Chem Lab Up to Code M 150,000 Q Site CondensateTank M 100,000 Physical Security M 175,000 D-5 Abandonment M 200,000

0 & M Projects TOTALS: $1,500,000

Capital Projects Notes Remove/Improve Plant 2 Piping D 300,000 Concrete Pad for Large Truck Bins D 125,000

Capital Projects TOTALS: $425,000

Maintenance Reserve Notes Unit 4 Overhaul M $200,000 Control System Project D 375,000 Condensate Re-route Project D 75,000

Unit 4 Overhaul Total FY16 $650,000 Additional Maintenance Reserve Funding FY 16 1,000,000

Toatal Maint Reserve Funding FY 16 $1,650,000


Plant 2 Fire System


Total FY 2015 FY 2016 Cost to Current Proposed


Plant 2 Fire System M 450,000

150,000

300,000




Assumption: This Project is considered mandatory

• NCPA has a fire system at Plant 2 that includes a tank, pumps and underground piping.

• The underground piping has developed numerous leaks.

• The replacement of much of the piping is necessary to eliminate the leaks and restore the system to full integrity.

•Mandatory


Plant, Yard & Road Repairs and Maintenance


FY 2016 Total

Project Notes Cost

Plant, Yard & Road Repairs M 175,000

175,000 Notes:




• Steam field roads and plant yards require periodic maintenance to allow safe access and comply with permit conditions. Maintenance may include asphalt repair, crack sealing, re-coating of asphalt, chip sealing of roads, and road striping.

• Asphalt repairs were completed at Plant #2 in FY 2015 along with some road patching and sealing outside the plant area.

• Plans are to continue road maintenance work in FY 2015 on the main road to both Plants #1 and #2. Roads to H, P and Q sites and the main easement through the Calpine Facility are to be chip sealed in FY 2016.

•


Plant 1 Bridge Crane Overhaul


Total FY 2016 Cost to

Project Notes Complete

Plant 1 Bridge Crane Overhaul M 100,000

100,000




• Plant 1 Turbine Building Bridge Crane is over 30 years old.

• Presently, the drive gear reducers are old and operate at different speeds causing the main bridge wheels to bind on the tracks and self-align by means of skipping on the crane rails and the Pendant has had several failures.

• It’s current condition warrants component/equipment repair and Overhaul.

• The Overhaul will include replacement of independent drive motors for the trolley, main bridge drive wheels and new independent operator control pendant.


Sed Basin Concrete Maintenance & Coating




Sed Basin Re-Coating M 300,000

300,000




• The Sedimentation Basin at the Geo Facility is a large cement structure that holds up to 250,000 gallons of condensate water from the power plants for a short period of time in order that any particulates that are in the water will fall down to the bottom of the basin and not be re-injected.

• Periodically, the cement of the basin needs to be patched and coated in order to maintain its integrity.


•Project Notes Cost FY 2013 FY 2014 •SEGEP Surge Protection D $150,000 $0 $150,000

•Chemistry Lab Upgrades




Chemistry Lab Upgrades M 150,000

150,000



• The Chemistry Lab at the Geothermal facility is thirty years old. • During this time, code requirements for a laboratories have evolved, so

that the Geothermal Chemistry Lab may not fulfill all of the new code requirements.

• The Geothermal Chemistry Lab should be evaluated and, if necessary, brought up to code requirements.



Q Site Condensate Tank




Q Site Condensate Tank M 100,000

100,000




• The steam condensate tank on the Q-Site well pad has corroded to the point that it needs to be replaced to prevent a major spill of steam condensate.


Physical Security


Total FY 2015 FY 2016 Cost to Current


Physical Security M 305,000

135,000

175,000 Notes:



Financial Evaluation: Varies by improvement,

analysis done by consultant

• The NCPA Geothermal Facility underwent a recent Physical Security Audit by CH2MHILL, recommending:

• Adding cameras to both the main entrances of the facility that will record license plate numbers.

• Adding cameras to all Power Plant Gates and cameras inside the Plant Yards.

• Adding Employee Electronic Card Readers for all Main Security Gates and numerous doors including:

• Bear Canyon Pump Station doors, warehouse doors, RTU Doors and the Admin doors.

• The removal of design documents from the unoccupied Steam Field office to a manned station at the facility.


D-5 Abandonment


Total Cost to

Project Notes Complete FY 2016

D-5 Abandonment M 200,000

200,000




• Steam well D-5 has been shut-in and has not produced since December 2, 1990.

• A casing caliper survey on August 29, 2013 showed that the 10-3/4” casing had collapsed to 2.64 inches starting at a depth of 754 ft.

• The BLM has requested that we either return the well to productive status or plug and abandon it.

• The total project cost of $200,000 is based on the BLM providing a waiver to the current abandonment standards and accepting an alternative abandonment method.

• If we cannot use an alternative abandonment method, the cost of the P&A could be as high as $2,000,000.


Plant 2 Main Steam Pipeline Modification



Project Notes Complete Plant 2 Main Steam Pipeline Modification D 300,000

300,000

Financial Evaluation: Useful Life (Years): 10 IRR: 47% Payback (years): 2.00 NPV @ 5%: $486,004 Est. Annual Benefits: $ 77,272



• The main steam pipeline into Plant #2 has a long dead leg section that acts as a heat sink and is no longer used.

• In addition, pipe bends and changes in pipeline diameter are causing unnecessary pressure losses resulting in reduced generation.

• Staff proposes that during the Plant 2 Overhaul the dead leg is removed along with modifying the pipeline to minimize pressure losses.

• Generation Gain assumed to be a minimum of 0.2 MW declining at 2.5% harmonically.


Concrete Pad for Large Truck Bins



Project Notes Complete Concrete Pad for Large Truck Bins D 125,000

125,000

Financial Evaluation: Useful Life (Years): 20 IRR: 21% Payback (years): 6.00 NPV @ 5%: $185,713 Est. Annual Benefits: $ 15,238



• NCPA’s Geothermal Facility requires the periodic storage of hazardous waste in large truck bins within the secondary containment of the Plant yards.

• When these heavy, steel wheeled roll-off bins are placed on the plant yards, damage to the asphalt often occurs.

• Staff proposes building one large (40’ x 120’) cement slab at Plant 2 on which these bins can be placed to avoid damaging the asphalt.

• Economics were based on the future reduction in asphalt repair costs if a permanent concrete pad were built for the truck bins.


Unit 4 Overhaul


Total FY 2016 Cost to Previously

Project Notes Complete Collected

Unit 4 Overhaul M 2,050,000 1,400,000

650,000



•NCPA Geothermal Facility Turbines are now on a six year overhaul schedule in order to maintain the Units in a safe, reliable and efficient running state. During the overhauls, the Turbines/Generators and major ancillary equipment are inspected and cleaned with the appropriate parts being replaced as necessary. There are other maintenance and repair projects that should be undertaken at that time to best utilize the outage in a cost effective manner for the Agency. Included in the Overhaul cost of $2,050,000 are two major projects: Control System Project ($375,000) and the Condensate re-route project ($75,000). Staff is also requesting $200,000 of contingency money in case unforeseen repairs are needed during the overhaul.

•Financial Assumption:

•These assumptions are based on the necessity to maintain the Unit Turbine in a Safe, reliable cost effective manner. •

•Estimated project cost: Total Project cost is $2,050,000 of which $1,400,000 has already been collected in Maint Reserve over the last five years. This cost includes the Control System Project ($375,000), the Condensate re-route project ($75,000) and a contingency of $200,000 for any presently unidentified issues that might be found during the Overhaul.



Control System Enhancement


FY 2016

Project Notes

Notes:



• Due to recent and projected future Operations staffing reductions, it is necessary for the T3000 to be able to bring in more of the Plant conditions so that the Operations Department can watch the plant performance and adjust accordingly at locations other than the Plant 2 Control Room.

• Once completed, Operations will be able to monitor and control portions of Plant 2 from the ground level Plant 2 Stretford Room and from the Plant 1 Control Room.

•(Included in $650,000 Overhaul Cost)

AFE Financial Measurements ValueNPV @ Discount Rate 71,115IRR 48.1%Average Annual Benefits 24,021Payback 2.0Useful Life 20.0B/C Ratio 1.17


Condensate Reroute


FY 2016 Total Cost to Complete

Project Notes

Financial Evaluation: Useful Life (Years): 10 IRR: 66% Payback (years): 1.0 NPV @ 5%: 329,139 Est. Annual Benefits: 40,414



• All of the Plant 2 treated Gas is delivered to Cell 6. • All of the water in the tower has to maintain sufficient

Iron concentration to treat the high gas concentration present only in Cell 6.

• Dispersing the gas over the entire tower will lower the amount of Iron used in the tower resulting in a cost savings.

•(Included in $650,000 Overhaul Cost)


GEO - FY 2016 Proposed Projects


0 & M Projects Notes Plant 2 Fire System M 300,000 Plant, Yard & Road Repairs M 175,000 Plant 1 Bridge Crane Overhaul M 100,000 Sed Basin Concrete Maintenance & Coating M 300,000 Chem Lab Up to Code M 150,000 Q Site CondensateTank M 100,000 Physical Security M 175,000 D-5 Abandonment M 200,000

0 & M Projects TOTALS: $1,500,000

Capital Projects Notes Remove/Improve Plant 2 Piping D 300,000 Concrete Pad for Large Truck Bins D 125,000

Capital Projects TOTALS: $425,000

Maintenance Reserve Notes Unit 4 Overhaul M $200,000 Control System Project D 375,000 Condensate Re-route Project D 75,000

Unit 4 Overhaul Total FY16 $650,000 Additional Maintenance Reserve Funding FY 16 1,000,000

Toatal Maint Reserve Funding FY 16 $1,650,000


GEO Project and O & M Forecast


FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024+

Project Costs and Routine O&M $19,838,350 $19,636,251 $19,953,788 $21,096,402 $20,804,544 $21,378,680 $22,319,290 $22,526,869 $23,101,925Routine O&M ( at 3%/yr) $16,263,350 $16,751,251 $17,253,788 $17,771,402 $18,304,544 $18,853,680 $19,419,290 $20,001,869 $20,601,925 Total Project & Maintenance Reserve $3,575,000 $2,885,000 $2,700,000 $3,325,000 $2,500,000 $2,525,000 $2,900,000 $2,525,000 $2,500,000

O&M PROJECTS $1,500,000 $1,110,000 $1,050,000 $1,650,000 $850,000 $850,000 $1,250,000 $850,000 $850,000 Plant 2 Fire System 300,000 0 0 0 0 0 0 0

Plant, Yard & Road Repairs 175,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000

Wellhead Valve Replacements and Rebuilds 60,000 0 0 0 0 0 0 0

Undefined Projects 600,000 600,000 1,200,000 600,000 600,000 1,000,000 600,000 600,000

Plant 1 Bridge Crane Overhaul 100,000 0 0 0 0 0 0 0

Sed Basin re-coating 300,000

Chem Lab Up to Code 150,000

Q Site CondensateTank 100,000

Physical Security 175,000

Main Steam Piping Loop removal 200,000 200,000 200,000

D-5 Abandonment 200,000

CAPITAL PROJECTS $425,000 $125,000 $0 $25,000 $0 $25,000 $0 $25,000 $0

Stretford System Upgrade 0 0 0 0 0 0 0 0 0

Caustic Chemical Systems 0 0 0 0 0 0 0 0 0

Vehicle Replacement 0 25,000 0 25,000 0 25,000 0 25,000 0

Plt. 2 Clean and/or remove piping 300,000

Concrete Pad for Large Truck bins 125,000

Add Dedicated D Line Steam Wells 100,000

Maintenance Reserve $1,650,000 $1,650,000 $1,650,000 $1,650,000 $1,650,000 $1,650,000 $1,650,000 $1,650,000 $1,650,000Unit one Overhaul 0 0 0 1,400,000 0 0 0 0 0

Unit Two Overhaul 1,400,000

Unit Four Overhaul 2,050,000 1,400,000

Well Replacement /Workover 3,900,000 3,900,000 3,900,000


GEO Maintenance Reserve


FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Unit One Overhaul 1,400,000Unit Two Overhaul 1,400,000Unit Four Overhaul 2,050,000 1,400,000Well Replacement /Workover 3900000 3900000 3900000

Project Cost Requirements 2,050,000 3,900,000 0 2,800,000 3,900,000 0 1,400,000 3,900,000 0

Annual Funding Requirements 1,650,000 1,650,000 1,650,000 1,650,000 1,650,000 1,650,000 1,650,000 1,650,000 1,650,000

Cumulative Balance 6,594,658 4,344,658 5,994,658 4,844,658 2,594,658 4,244,658 4,494,658 2,244,658 3,894,658


December 15, 2014

Combustion Turbine CT1 – Lodi / Alameda


Proposed

FY 2014 FY 2015 Increase FY 2016

Budget Budget (Decrease) Budget

Routine O & M Costs

Variable 8,240 8,240 0 8,240

Fixed 427,755 367,091 17,458 384,549

Administration 48,285 61,800 (6,107) 55,693

Mandatory Costs 152,375 158,500 (5,000) 153,500

Routine O & M Costs without Labor 636,655 595,631 6,351 601,982

Labor 661,454 667,831 16,063 683,894

Total Routine O & M Costs 1,298,109 1,263,462 22,414 1,285,876

Projects

Operations & Maintenance 860,000 1,082,600 (8,400) 1,074,200

Annual Budget Cost 2,158,109 2,346,062 14,014 2,360,076

FY 2016 – CT1 Budget

1.7% Inflationary Increase


CT1 FY 2016 Proposed Projects 2016 2017 2018 2019 2020 2021 2022 2023 2024

Combustion Turbine 518,000 645,000 150,000 150,000 150,000 300,000 300,000

Generators 275,000 250,000 250,000 250,000 BOP (HMO, Paint, Switchgear, Fire Upgrades) 556,200 190,000 190,000 150,000 230,000 245,000 15,000

TOTALS 1,074,200 1,110,000 190,000 550,000 630,000 400,000 0 545,000 315,000

2016 2017 2018 2019 2020 2021 2022 2023 2024

Combustion Turbine 715,000 445,000 150,000 150,000 150,000 300,000 300,000

Generators 275,000 250,000 250,000 250,000 BOP (HMO, Paint, Switchgear, Fire Upgrades) 220,000 470,000 190,000 150,000 230,000 245,000 15,000

TOTALS 1,210,000 915,000 190,000 550,000 630,000 400,000 0 545,000 315,000

CT1 FY 2015 Approved Projects

Variance 2016 2017 2018 2019 2020 2021 2022 2023 2024

TOTALS (135,800) 195,000 0 0 0 0 0 0 0

•Switched Lodi & ALA2 Maint •Moved 2017 Fire System to 2016 •Added Gas Relief Maint •Added Administrative Shared Projects

Change History


FY 2016 CT1 Proposed Projects


O&M Projects Notes $ 75,000 Physical Security 75,000

General & Plant Projects Notes $ 13,200 Administrative Shared Projects (total project $130,000) D

GSU Oil Dryer (CT1 Share) D 4,800

Bathroom Update (CT1 Share) D 3,000

Forklift (CT1 Share) D 5,400

Capital Development Reserve Projects Notes $ 0

0


FY 2016 – CT1 Physical Security Improvements


FY 2015 FY 2016 FY 2017 FY2018 Current


Physical Security D 0

75,000 0 0 Notes:



• Fencing

• Video Cameras

• Access control / card readers

• Storage

Financial Evaluation: NCPA performed a Security Risk Assessment. The Assessment identified weaknesses in security and estimated the risk as a result. Projects to mitigate risk were selected and provide benefit by reducing risk. All projects have B/C >1


FY 2016 – CT1 GSU Oil Dryer



Project Notes Complete Budget GSU Oil Dryer D $40,000

(CT1 Share $4,800)

4,800



• Recurring maintenance to remove moisture from transformer oil

• Alternative: contract out service

Financial Evaluation: Useful Life (Years): 20 IRR: 59% Payback (years): 0 NPV @ 5%: $73,744 Est. Annual Benefits: $7,367


FY 2016 – CT1 Bathroom Update



Project Notes Complete Budget Bathroom Updates D $25,000

(CT1 Share $3,000)

3,000



• Non-financial project

• Correct recurring problems with plumbing, fixtures and remove porous surfaces for effective cleaning

Financial Evaluation: Useful Life (Years): n/a IRR: n/a Payback (years): n/a NPV @ 5%: n/a Est. Annual Benefits: n/a


FY 2016 – CT1 Forklift



Project Notes Complete Budget Forklift D $45,000

(CT1 Share $5,400)

5,400



• Existing Clark lift failed

• 25 years old

• Currently Renting

Financial Evaluation: Useful Life (Years): 20 IRR: 59.8% Payback (years): 2 NPV @ 5%: $296,561 Est. Annual Benefits: $16,201


FY 2016 CT1 Project Forecast


FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 TOTAL ROUTINE O&M + PROJECTS $2,360,076 $2,442,445 $1,902,418 $2,358,591 $1,930,999 $1,987,679 $1,619,669 $1,906,009 $1,956,739 TOTAL ROUTINE O&M $1,285,876 $1,332,445 $1,372,418 $1,413,591 $1,455,999 $1,499,679 $1,544,669 $1,591,009 $1,638,739 O&M PROJECTS $1,074,200 $1,110,000 $530,000 $945,000 $475,000 $488,000 $75,000 $315,000 $318,000

Combustor Inspection (4 Years or 4,000 Hours) 150,000 150,000 150,000 Hot Gas Path (8 Years or 8,000 Hours) 300,000 300,000 300,000 Major (15 Years or 20,000 Hours) 500,000 3,000 IGV Lube 3,000 Starting Package 125,000 125,000 Inlet Filters Gas Compressor Maintenance 20,000 20,000 Medium Inspection (5-7yrs) 75,000 75,000 75,000 Major (10-12yrs) 275,000 Excitation System Upgrade 250,000 250,000 250,000 1st Stage Nozzle 70,000 HMI Upgrades 100,000 Paint and Preservation 50,000 50,000 50,000 50,000 High Voltage Testing Switchgear Upgrades 70,000 100,000 100,000 100,000 Switchyard Relay Upgrades 40,000 Fire System Upgrades 230,000 230,000 230,000 Circuit Breaker Maintenance 25,000 Insulator Cleaning 15,000 Battery 15,000 15,000 Gas Pipeline Coating Service Water Systems Gas Relief's (Every 5yrs) 18,000 18,000 GSU Oil Dryer (CT1 Share) 4,800 Bathroom Update (CT1 Share) 3,000 Forklift (CT1 Share) 5,400 Physical security 75,000 Vehicles 90,000 90,000 90,000

CAPITAL PROJECTS 0 0 0 0 0 0 0 0 0

RESERVE FUNDING 0 0 0 0 0 0 0 0 0


Combustion Turbine CT2 – STIG


Proposed FY 2014 FY 2015 Increase FY 2016 Budget Budget (Decrease) Budget

Routine O & M Costs

Variable 64,375 98,000 (5,500) 92,500 Fixed 384,866 396,245 18,122 414,367 Administration 87,142 77,606 (3,061) 74,545 Mandatory Costs 46,865 38,000 15,000 53,000 Routine O & M w/o Labor 583,248 609,851 29,561 621,412

Labor 612,573 625,764 14,597 640,361

Total Routine O & M Costs 1,195,821 1,235,615 26,158 1,261,773

Projects

Operations & Maintenance 23,500 143,500 (63,440) 80,060

Annual Budget Cost 1,219,321 1,379,115 (37,282) 1,341,833

FY 2016 – CT2 Budget

Annual Injection Well MIT

Phase II of DCS Less expensive

2.1% Increase


FY 2016 CT2 Proposed Projects


O&M Projects Notes $ 60,260 Physical Security (CT2 Share) D 30,260

DCS Spare Cards/Power Supply/Software D 30,000


GSU Oil Dryer (CT2 Share) D 7,200

Bathroom Update (CT2 Share) D 4,500

Forklift (CT2 Share) D 8,100

Capital Development Reserve Projects Notes $ 0

0


FY 2016 – CT2 Physical Security Improvements



Project Notes Budget Physical Security D (CT2

Share $30,260)

0 200,000

0 0



• Fencing

• Video Camera

• Access Card Readers

• Anti-Tailgating

• Major upgrades not part of this, ie, aqueous ammonia



FY 2016 – CT2 DCS Operating System


Total FY 2015 FY 2016 FY 2017 FY 2018

Cost to Current


DCS Operating System D $150,000 90,000

30,000 30,000 0

Notes: D Discretionary

M Mandatory


• Currently running operating system from 2000 • Both HMIs patched together, modern computer will not

work • Approved in FY15 Budget


FY 2016 – CT2 GSU Oil Dryer




(CT2 Share $7,200)

7,200







FY 2016 – CT2 Forklift




(CT2 Share $8,100)

8,100




• 25 years old




FY 2016 – CT2 Bathroom Update




(CT2 Share $4,500)

4,500








FY 2016 CT2 Project Forecast FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

TOTAL ROUTINE O&M + PROJECTS $1,341,833 $1,377,626 $1,468,615 $1,398,773 $1,465,137 $1,495,741 $1,651,623 $1,551,822 $1,613,376

TOTAL ROUTINE O&M $1,261,773 $1,299,626 $1,338,615 $1,378,773 $1,420,137 $1,462,741 $1,506,623 $1,551,822 $1,598,376

O&M PROJECTS $80,060 $78,000 $130,000 $20,000 $45,000 $33,000 $145,000 $0 $15,000 Borescope Inspection 8,000 8,000 SCR Catalyst/Inspection 20,000 20,000 HRSG Inspection (NDE) 20,000 20,000 NDE Inspections

High Energy Piping Inspection (Every 5yrs) 15,000 15,000 HRSG Steam Relief's (every 5yrs) 30,000 Injection Well Cleaning 125,000 125,000 High Energy Pipe Inspection 15,000 Physical Security 30,260 DCS Spare Cards/Power Supply/Software 30,000 30,000 GSU Oil Dryer (CT1 Share) 7,200 Bathroom Update (CT1 Share) 4,500 Forklift (CT1 Share) 8,100 Vehicles 5,000 5,000 5,000

CAPITAL PROJECTS 0 0 0 0 0 0 0 0 0

RESERVE FUNDING 0 0 0 0 0 0 0 0 0



LEC 2016 Proposed Budget


FY 2014 FY 2015 Proposed

FY 2014 Approved Approved Increase FY 2016

Actual Budget Budget (Decrease) Budget

Routine O & M Costs

Variable $1,035,121 $3,588,987 3,651,332 1,193,191 $4,844,523

Fixed 5,371,948 1,464,503 1,765,358 14,645 1,780,003

Administration 1,223,987 1,214,657 1,250,914 65,249 1,316,163

Mandatory Costs 519,687 456,000 220,000 15,000 235,000

Inventory Stock 180,577 400,000 400,000 0 400,000

Routine O & M Costs without Labor 8,331,320 7,124,147 7,287,604 $1,288,085 8,575,689

Labor 4,630,807 4,227,098 4,299,182 90,739 4,389,921

Total Routine O & M Costs 12,962,127 11,351,245 11,586,786 1,378,824 12,965,610

Projects 1,230,468 1,129,000 4,991,260 ($3,836,671) 1,154,589

Maintenance Reserve 397,250 397,250 1,800,000 0 1,800,000

Total Routine O&M and Projects 14,589,845 12,877,495 18,378,046 (2,457,847) 15,920,199

LEC Proposed Budget w/Updates


Additional Output, Escalation, Sales Tax

Final phase payments of T-Line Upgrade

Contract Escalation of Water Supply

2.6% increase non-variable costs


FY 2016 Proposed Projects


O&M Projects Notes $ 294,740 Physical Security (LEC Share) D 169,740

Plant Betterment D 125,000


GSU Oil Dryer (LEC Share) D 28,000

Bathroom Update (LEC Share) D 17,500

Forklift (LEC Share) D 31,500

Capital Development Reserve Projects Notes $ 782,849

Platforms M 150,000

Transmission Line D 632,849


FY 2016 – Physical Security Improvements



Project Notes Budget Physical Security D (LEC

Share $169,740)

0 200,000

0 0




• Fencing

• Video Camera

• Access Card Readers

• Anti-Tailgating

• Major upgrades not part of this, ie, aqueous ammonia


FY 2016 – Plant Betterment



Project Notes Budget Plant Betterment D 125,000 125,000 100,000



•Examples of uses; air and water stations on top of clarifier, weather covers over panels, post indicating valve relocation, gate controls, ladders and cages, steps for high concrete foundations


•For FY2016, plant improvements are budgeted at $125,000. These projects are evaluated one by one as they are discovered. All plant improvements are requested, implemented and tracked using NCPA’s procurement approval process.


FY 2016 – GSU Oil Dryer




(LEC Share $28k)

28,000







FY 2016 – Bathroom Update




(LEC Share $17.5k)

17,500







FY 2016 – Forklift




(LEC Share $31.5k)

31,500




• 25 years old




FY 2016 – Platforms Project


Total FY 2015 FY 2016 Cost to Current

Project Notes Complete Budget Platforms M 150,000 150,000 150,000



• Continuation of Project from FY15, engineering started

• Required to install platforms in frequently accessed areas to remove scaffolding


FY 2016 – CAISO Project Updated Economics



Project Notes Complete Budget Transmission Line Upgrade D 6,052,609**

911,000 4,504,000 632,849



• Approved by PPC in 03/2014

• **Estimated Cost to Complete at time of approval was $7,533,000

Financial Evaluation: Useful Life (Years): 30 IRR: 14.1 Payback (years): 6 NPV @ 5%: $4,566,397 Est. Annual Benefits: $344,849

Phase II Cost Network Upgrade 4,504,000 Phase II Interconnction Facilities 41,508 Engineering 78,985 Materials 207,025 Construction 212,323 Subtotal 5,043,841 Contingency 1,008,768 Total 6,052,609

Paid FY14 911,000 Paid FY15 4,508,760 Proposed Budget FY16 632,849


LEC 2016 Project Forecast


FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

TOTAL ROUTINE O&M + PROJECTS $15,920,199 $14,769,578 $15,160,216 $15,422,872 $15,942,908 $16,185,696 $16,821,616 $17,796,065 $17,524,447

TOTAL ROUTINE O&M $12,965,610 $13,354,578 $13,755,216 $14,167,872 $14,592,908 $15,030,696 $15,481,616 $15,946,065 $16,424,447

O&M PROJECTS $371,740 $30,000 $5,000 $5,000 $100,000 $5,000 $240,000 $250,000 $0 Plant Betterment 125,000 GSU Oil Dryer (LEC Share) 28,000 Bathroom Update (LEC Share) 17,500 Forklift (LEC Share) 31,500 Physical Security 169,740 Gas Turbine Insulation 250000 Cooling Tower Pump Down 100000 DCS Software Upgrades 200,000 iRig-B Time Stamping 30,000 HVAC 40,000 Vehicles 5,000 5,000 5,000

CAPITAL PROJECTS 782,849 150,000 300,000 150,000 150,000 50,000 0 500,000 0 Platforms 150,000 150,000 150,000 150,000 150,000 50,000 CT Maintenance Access 0 Transmission Line Upgrade 632,849 ST Access 150000 Air Filter Puffer System 500000

RESERVE FUNDING 1,800,000 1,235,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Maintenance Reserve 1,800,000 1,235,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000


Maintenance Reserve


Funding/(Expenditures) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Beginning Reserve Balance

Combustion Turbine

120,000

3,940,000

320,000

1,650,000

210,000

500,000 0

CI HGP CI, SP HGP CI, SP Major

Steam Turbine

-

-

145,000

-

-

-

-

20,000

-

125,000 0

Limited Servos Major

Generators

-

-

585,000

-

-

-

- 1,385,000

-

- 0

Medium Major

Balance of Plant

-

200,000

385,000

240,000

-

165,000

170,000

300,000

335,000

470,000 0

HV, IW Valves Pumps IW HV Valves,

SRV Pumps CTW, Bat,

FGC

HRSG

-

40,000

145,000

40,000

-

40,000

1,000,000

185,000

-

40,000 0

NDE NDE NDE Catalyst NDE NDE

Projected Requirements

120,000

4,180,000

1.260,000

280,000

320,000

1,855,000

1,170,000

1,890,000

545,000

1,135,000 0

Funding Requirement

1,800,000

1,800,000

1,235,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000 1,100,000

Cumulative Balance 2,455,584 75,584 50,584 870,584 1,650,584 895,584 825,584 35,584 590,584 555,584 1,655,584


VOM Impact


VOM Impact Approved FY15

Budget Approved FY15

VOM Proposed FY16

Budget Proposed FY16

VOM

Variable Cost $ $/MWH $ $/MWH

Operations (Appendix I) 1,191,985 0.94 $1,516,320 0.94

LTSA 2,409,386 1.89 $3,328,201 2.07

Maintenance Reserve Variable (Appendix I) 277,734 0.23 $353,208 0.22

Total 3,979,570 3.06 $5,197,729 3.23

Forecasted Generation (MWH) 1,207,542

1,605,494

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