1 / 7

Project Cost Estimating, Long-Term Planning

Asia-Pacific Partnership. on. Clean Development and Climate. Project Cost Estimating, Long-Term Planning. Asia Pacific Partnership United States of America Power Generation Task Force August 13 – 17, 2007. Ron Kovach. Cost Estimating;. Project Cost Estimating; Capital or O&M.

kass
Download Presentation

Project Cost Estimating, Long-Term Planning

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Asia-Pacific Partnership on Clean Development and Climate Project Cost Estimating, Long-Term Planning Asia Pacific PartnershipUnited States of AmericaPower Generation Task ForceAugust 13 – 17, 2007 Ron Kovach

  2. Cost Estimating; • Project Cost Estimating; • Capital or O&M. • Large $ items must be proven to be cost effective before theyare approved. • Project Cost Estimating; • Options are; • In House (Hydro/CT Technical staff), FE Project Engineering, outside engineering firm. • Depending on type of project, size of the project, manpower availability. • In House; • Technical staff performs the engineering analysis, looks at past history if a similar project was done and develops the cost estimate for the project. • Budgetary material cost and labor to install cost are obtained from vendors. In all cases, we go through a bid process and solicit competitive bids. Project Cost Estimating, Long-Term Planning 2

  3. Cost Estimating; • FE Project Engineering Group; • The Engineering group is utilized for high dollar projects or if a project requires multidiscipline support. • A similar process is used by the project group, i.e. soliciting competitive bids. • Outside Engineering Firm, • Outside firms are used when a project requires expertise that is not available within the company or, there is a Lack of manpower to support the project, etc, • Outside firm will develop cost estimates with FE guidance and provides FE with the project cost. Project Cost Estimating, Long-Term Planning 3

  4. Long Term Planning: A Five year Business Plan is used to develop the going forward strategy. The purpose of the business plan is to identify the roles and responsibility of the Hydro fleet in the FE portfolio. The bp provides a complete assessment of the company strategy and how each business unit supports the portfolio. • The plan includes; • Vision-Mission statement, • Financial Report, • Generation strategy for the portfolio, • Outages Schedules, • List of major projects, • Performance Matrices • Excellence/Continuous improvement, • Key Event Time line, Project Cost Estimating, Long-Term Planning 4

  5. Technical Services Structure Director, Hydro & CT William Harker Manager, Technical Services Sergon Gevergiz Sumpter Site Engineer West Lorain Site Engineer Civil Engineer Richland Site Engineer Electrical Engineer Mechanical Engineer • Project Management • Project Planning • Cost Estimating • Outage Planning • Outage Management Project Cost Estimating, Long-Term Planning 5

  6. Ohio Edison Illuminating Company Toledo Edison Met-Ed Penelec Pennsylvania Power Jersey Central Power & Light Hydro & CT Portfolio Seneca443 MW Sumpter (Michigan) 340 MW Stryker 18 MW Erie Towanda Yards Creek200 MW Toledo Cleveland Edgewater48 MW New Castle Akron Pennsylvania Richland 432 MW Morristown Newark West Lorain545 MW Johnstown Reading Harrisburg Allenhurst Trenton NewJersey Columbus York Haven19 MW Mad River60 MW Ohio Forked River86 MW The Hydro & CT Group operates 50 units at 9 plants over a 4 state region. This group contains the oldest and newest plants in the FE Generation portfolio. FirstEnergy Power Plants G Gas H Hydro O Oil Project Cost Estimating, Long-Term Planning FirstEnergy Pumped HydroSeneca & Yards Creek Stations 4

  7. Long Term Planning & Project Cost Estimating • ProjectIdentification • Maintenance Inspection • Outage Report • Health Study • Other • ScopeRefinement • Two major deliverables are cost and duration • Develop technical specification • Potentially develop a bid specification • Consensus • Has a consensus been reached with the plant and Technical Services that the scope is acceptable? • AdditionalExpertise • FE Project Engineering • Consultants/vendors/contractors • Request for Quote/Proposal No Yes Compare the proposed outage timing, duration and cost to the remainder of the Hydro & CT Portfolio Yes Is the project large enough that it requires capital analysis? Did any of the project parameters change during the capital analysis. • Capital Analysis • Did it pass? Yes Yes No No No Re-evaluate Yes No Project placed into the Business Plan Were any project parameters changed? Project is evaluated against projects in the entire Fossil portfolio. Did project make it? Yes Project funding, duration and timing locked in. Outage planning commences. Covered in detail in tomorrow’s presentation No Project Cost Estimating, Long-Term Planning 5

More Related