Cost Estimation for Regional Transmission Overlay Study (RTOS)

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Annabel Rice
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1 Cost Estimation for Regional Transmission Overlay Study (RTOS)

2 Purpose & Key Takeaways Purpose: To provide detail for MISO s cost estimation approach Key Takeaways: Planning-Level and Scoping-Level MISO cost estimate approach Generic Cost Estimation Data

3 Cost Estimates: Overview Planning-Level cost estimates will be used to compare long-term indicative overlay roadmaps Why does MISO develop cost estimates Prior to FERC Order 1000, Transmission Owners or stakeholders provided cost estimates for regional projects FERC Order 1000 introduced competition to who constructs, owns, and operates regionally cost shared projects Project cost is one area that Transmission Owners and Developers compete Stakeholders sought MISO s involvement to develop cost estimates MISO Staff Expertise 3

4 Cost Estimates: Planning-Level and Scoping-Level MISO estimates project cost in two stages Planning and Scoping A Planning-Level cost estimate is a high level cost estimate for facilities in studies based on overall facility characteristics A Scoping-Level cost estimate is a preliminary cost estimate based on information derived from further research on particular project requirements in terms of assumed transmission line routing and construction details of line and substation 4

5 RTOS Study Cost Estimates: Regional Needs Identification Long term Indicative Overlay Roadmaps Development MISO Planning-Level cost estimate Preliminary Regional Plan Identification Candidate Regional Plan Evaluation MISO Scoping-Level cost estimate 5

6 Planning-Level Cost Estimate: Transmission Line Length; Voltage; Conductor; Structure, New or Re-Conductor Terrain Type Right-of-Way Cost Construction Cost Estimate AFUDC; Overhead; Contingency Project Implementation Cost Estimate 6

7 Planning-Level Cost Estimate: Transmission Line Inputs Transmission Estimate Inputs Definition Source: Straight Line Length + 20% Straight line between two interconnecting substations +20% Geography Voltage and Circuits Determined by the Voltage level and the number of circuits on the proposed line Planning Solution Idea Conductor Type ACSR, ACSS, or HTLS Planning Solution Idea Structure Type New or Re-Conductor Terrain Type Right-of-Way Width Lattice, or Tubular structure - determined to match existing structure types in the project area. Whether the proposed line is new, or re-conductoring an existing line. Farmland, Desert, Wetland, Suburban, Rolling Hill, Urban, Mountain, Forested. Value is determined by the Voltage level and the number of circuits on the proposed line. Planning Solution Idea Planning Solution Idea Geography Estimate Input Data AFUDC Allowance for Funds Used During Construction Estimate Input Data Overhead Contingency Services needed to complete the project, such as: Construction Management; Project Management; Permits; Legal Fees; and any other indirect costs. Additional funds included in estimate to account for unknown conditions at the time of completing the estimate Estimate Input Data Estimate Input Data 7

8 Planning-Level Cost Estimate: Substation # of New Positions; Arrangement; Voltage; New/Existing site Major Equipment (Transformer, Shunt Reactor, Series Capacitor) Construction Cost Estimate AFUDC; Overhead; Contingency Project Implementation Cost Estimate 8

9 Planning-Level Cost Estimate: Substation Inputs Substation Estimate Inputs Definition Source: # of New Positions Number of new line and/or major equipment positions added with the proposed project Planning Solution Idea Arrangement Ring Bus or Breaker-and-a-Half Bus Arrangement. Planning Solution Idea New Substation Adder If Substation is new, general facilities are needed such as land cost, grading, fencing, grounding, and a control enclosure. Planning Solution Idea Shunt Reactor MVA If a shunt reactor is required, the MVA will be specified. Planning Solution Idea Series Capacitor MVA If a series capacitor is required, the MVA will be specified. Planning Solution Idea Transformer MVA If a transformer is required, the MVA at the voltages of the transformer will be specified. Planning Solution Idea AFUDC Allowance for Funds Used During Construction Estimate Input Data Overhead Contingency Services needed to complete the project, such as: Construction Management; Project Management; Permits; Legal Fees; and any other indirect costs. Additional funds included in estimate to account for unknown conditions at the time of completing the estimate Estimate Input Data Estimate Input Data 9

10 Planning-Level Base Cost Transmission Line 230kV Single 345kV Single 345kV Double 500kV Single 765kV Single Circuit Circuit Circuit Circuit Circuit Base cost ($/mile) in 2017$, M=Million Conductor Type $1.2M $2.0M $3.3M $2.1M $2.45M Assumptions for Base cost as mentioned below ACSS ACSS ACSS ACSR ACSR Structure Type Tubular Steel Tubular Steel Tubular Steel Lattice Steel Lattice Steel Length Greater than 10 Miles Greater than 10 Miles Greater than 10 Miles Greater than 10 Miles Greater than 10 Miles Terrain Flat Farmland Flat Farmland Flat Farmland Flat Farmland Flat Farmland Base Costs do not include AFUDC, Overhead, or Contingency 10

11 Planning-Level Base Cost Substation 230 kv Substation 345 kv Substation 500 kv Substation 765kV Substation* New line position Existing Substation Ring Bus New line position Existing Substation Breaker-and-a-Half Bus New Substation 4 positions Ring Bus New Substation 4 positions Breaker-and-a-Half Bus $1.6M $2.4M $3.3M $11.4M $2.4M $3.7M $4.9M $13.8M $8.4M $12.1M $15.8M $50.1M $11.7M $17.0M $22.4M $59.9M *765kV Line Positions include one 300MVAr Reactor per line position 2017 Dollars, M = Million Base Costs do not include AFUDC, Overhead, or Contingency 11

12 Planning-Level Base Cost Substation Transformers Transformer 300 MVA 500 MVA 700 MVA 750 MVA 1200 MVA 2250 MVA 115kV/345kV $3.3M $5.6M $7.8M 138kV/345kV $3.3M $5.6M $7.8M 161kV/345kV $3.3M $5.6M $7.8M 230kV/500kV $9.2M $14.7M 345kV/500kV $10.9M $17.4M 345kV/765kV $40.7M 500kV/765kV $40.7M 2017 Dollars, M = Million 12

13 Feedback MISO presented Cost Estimation Data in the February Planning Subcommittee meeting, and the February Economic Planning Users Group meeting and requested feedback Feedback was received on March 9, 2017 MISO will provide responses to the feedback received at upcoming Planning Subcommittee, and Economic Planning Users Group meetings 13

14 Contact Information Devang Joshi, PE Principal Transmission Design Engineer MISO Alex Monn, PE Senior Substation Design Engineer MISO 14

15 15 END

16 16 APPENDIX

17 Scoping-Level Estimate: Transmission Line Planning-Level Estimate Straight Line Length +20% Voltage & # of Circuits Conductor Type Scoping-Level Estimate Google Earth Line Routing Voltage & # of Circuits Conductor Type Conductor Size Fittings & Accessories Shield Wire 17

18 Scoping-Level Estimate: Transmission Line Planning-Level Estimate Structure Type Scoping-Level Estimate Structure Type # of Structures New or Re-conductor Right-of-Way Foundation Details New or Re-conductor Right-of-Way Terrain Type Terrain Type 18

19 Scoping-Level Estimate: Transmission Line Planning-Level Estimate AFUDC Overhead Contingency Scoping-Level Estimate AFUDC Construction Management Project Management Permits & Legal Fees Indirect Costs Contingency 19

20 Scoping-Level Estimate: Substation Planning-Level Estimate # of New Positions Scoping-Level Estimate Mobilization & Demobilization All Equipment, Bus & Fittings Steel Stands Foundations Conduit & Control Cable Relay Panels 20

21 Scoping-Level Estimate: Substation Planning-Level Estimate Arrangement New Substation Adder Scoping-Level Estimate Arrangement Land Cost Clearing & Grubbing Grading, Fence & Grounding Control Enclosure 21

22 Scoping-Level Estimate: Substation Planning-Level Estimate Shunt Reactor MVA Series Capacitor MVA Transformer MVA Scoping-Level Estimate Shunt Reactor MVA Series Capacitor MVA Transformer MVA 22

23 Scoping-Level Estimate: Substation Planning-Level Estimate AFUDC Overhead Contingency Scoping-Level Estimate AFUDC Construction Management Project Management Permits & Legal Fees Indirect Costs Contingency 23

NORTHERN INDIANA PUBLIC SERVICE COMPANY Attachment GG True-Up Adjustment For the Year Ended December 31, 2014

NORTHERN INDIANA PUBLIC SERVICE COMPANY Attachment GG True-Up Adjustment For the Year Ended December 31, 2014 Attachment GG Projected Proportion Actual True Up Revenue of Revenues Revenue Interest allocated