Cost estimates
Download
1 / 23

Cost Estimates - PowerPoint PPT Presentation


  • 129 Views
  • Uploaded on

Cost Estimates. Katherine Prewitt [email protected] Director, Planning. RSC Motions (Oct 2010). 2. MOTION 1 : RSC recommends that SPP review what is the best manner to address significant cost increases and/or overruns of transmission projects that are regionally funded.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Cost Estimates' - brett-rojas


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Cost estimates

Cost Estimates

Katherine Prewitt

[email protected]

Director, Planning


Rsc motions oct 2010
RSC Motions (Oct 2010)

2

  • MOTION 1: RSC recommends that SPP review what is the best manner to address significant cost increases and/or overruns of transmission projects that are regionally funded.

  • MOTION 2: RSC recommends that SPP review the Novation Process and report to the RSC by April 2011.

  • MOTION 3: RSC recommends that SPP consider establishing design and construction standards for transmission projects at 200 kV and above that are regionally funded.

  • MOTION 4: SPP evaluate how cost estimates are established for transmission projects before Cost Benefit Analysis are performed.

  • MOTION 5: CAWG to study various methods on how costs that exceed some standard can be addressed with different cost allocation mechanisms and recommend strategies to RSC.


Cost estimation improvements
Cost Estimation Improvements

  • Standardized Cost Estimate Reporting Template (SCERT)

    • All cost estimates

    • Quarterly reporting

  • Conditional Notification to Construct (CNTC)

    • > $20 Million

    • > 100 kV

  • Establish Project Estimate baseline

    • CNTC Project Estimate (CPE)

    • NTC Project Estimate (NPE)

3


Cost estimation improvements1
Cost Estimation Improvements

4

  • Project Cost Working Group

  • Deviates or is expected to deviate +/- 10% from established baseline cost

    • Report monthly

  • Deviates or is expected to deviate +/-20% from established baseline cost

    • Provide detailed cost variances via updated SCERT with explanations regarding the variances


Project cost working group pcwg
Project Cost Working Group (PCWG)

5

  • Oversee a quarterly report

  • Study Estimate Design Guide (SEDG)

  • Review estimation variances

    • Regionally funded project >300 kV and >$20 million

    • Explanation for the cost estimate variances as well as

    • Reasons why the project should or should not move forward

  • Develop business practices


Stages of cost estimation
Stages of Cost Estimation

  • Conceptual Estimate (Staff)

    • prepared by SPP from historical data

    • used for screening purposes only

  • Study Estimate (DTO)

    • submitted by DTO if project passes Conceptual screening and requires more refined estimate

  • NTC Project Estimate (NPE)/CNTC Project Estimate (CPE) (DTO)

    • submitted by DTO in response to CNTC/NTC issuance

    • established as baseline for project cost variance

  • Design/Construction Estimate (DTO)

    • submitted by DTO in quarterly tracking process for cost estimates as engineering and construction for project is underway/completed



Conditional notification to construct cntc
Conditional Notification To Construct (CNTC)

  • Projects within the financial commitment window

    • Study Estimate > than $20 Million and > 100 kV

  • Additional time and cost recovery for DTO to refine estimate

  • SPP re-evaluates project if CNTC Project Estimate (CPE) outside accepted bandwidth

  • NTC issued

    • Cost variance is acceptable

    • BOD approves the refined cost analysis


Conditional ntc cntc project estimate variance
Conditional NTC (CNTC)Project Estimate Variance

  • CPE bandwidth exceeds Study Estimate bandwidth

    • Re-evaluate project

    • Make a recommendation to the BOD

  • Possible SPP staff recommendations:

    • Accept the cost variance and approve as is

    • Modify the project

    • Replace the project with new solution

    • Cancel the project

9


Cpe evaluation illustrations

$

70

M

$

100

M

$

130

M

-

30

%

+

30

%

CPE Evaluation Illustrations

$105 Million

Study Estimate: $100 Million

$84 M

$105 M

$126 M

CNTC Project Estimate:

Action:

SPP IssuesNTC to DTO

If the +/-20% precision bandwidth of the project’s CPE is within the accepted range, an NTC will automatically be issued


Cpe evaluation illustrations1

$

70

M

$

100

M

$

130

M

-

30

%

+

30

%

CPE Evaluation Illustrations

$120 Million

Study Estimate: $100 Million

$96 M

$120 M

$144 M

CNTC Project Estimate:

Action:

SPP Re-evaluation and BOD Review

If the +/-20% precision bandwidth of the project’s CPE is outside the accepted range, SPP Staff will re-evaluate the project and submit updated analysis to BOD for review



Study estimate design guide1
Study Estimate Design Guide

Study Estimate Design Guide (SEDG)

Establish Study Estimate Design Guide to be used by the SPP’s Transmission Owners (TOs) in developing Study Estimates for SPP footprint projects rated at voltages at 100 kV and greater.

These SEDGs are intended to ensure consistency in TO Study Estimates.

13


Transmission lines
Transmission Lines

Minimum Conductor Sizing for normal ratings is specified, e.g., 1,200 Amps for 230 kV and 3,000 Amps for 345 kV

Reconductoring should consider advanced conductors if possible

Reactive Compensation costs should be included in project costs estimates

14



Substations
Substations

Substations should be designed with :

Accommodations for future expansion

Suggested bus configurations by voltage class and number of terminals

Minimum terminal equipment ratings

Minimum bus ratings

16


Protection controls
Protection/Controls

Protection and control designs should include:

Redundancy

PMUs or Intelligent Electronic Devices (EIDs) for 230 kV and above

SCADA and RTUs

17


Scert questions
SCERT Questions

  • Is there an instruction manual?

  • Should there be a confidentiality statement on the estimate or documents?

  • How should the forms be submitted? PDF or hard copy?

  • Do ROW/Land Rights cost need to be broken down in more detail than one-line?


Scert questions1
SCERT Questions

  • Will NTC be issued on a program or project basis?

  • Under Line Assumptions – Structure, are Tangents and Dead Ends the number of assumed structures and Underbuild?

  • For Station Assumptions – Breaker Scheme, are you looking for information on substation arrangement?

  • How should or who should questions be submitted?


Scert question nominal vs current
SCERT Question – Nominal vs Current $

  • Costs should be in current dollars

    • Unless a project is considered ‘multi-year’

  • 1st year cost should be in current dollars regardless of start date

    • Estimated as if they started today

  • All multi years projects calculated with escalation rate chosen by DTO


Scert question nominal vs current1
SCERT Question – Nominal vs Current $

Example: Year 1: $100,000

Year 2: $200,000

Year 3: $100,000

Total $400,000

Using a escalation rate of 2%/yr

Year 1: $100,000 = $100,000

Year 2: $200,000 @ 2% = $204,000

Year 3: $100,000 @ 2% = $104,040

Total: = $408,040


Scert form
SCERT Form

  • SPP provided

    • SPP Project Name

    • Project ID

    • Upgrade ID

    • RTO Determined Need Date

    • Estimate Request Date added (New)

  • DTO provided

    • Estimate Provider

    • Point of Contact


ad