THE APPLICATION OF KENTUCKY POWER

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Soiircm arid Notes, CONEArea 1 Eastern MAAC 2 Southwest MAAC 3 RestofRTO 4 Western MAAC 5 Dominion OFE CT HRSG ST ($/Icy ($174 ($//iw) ($nl) ($/ltw) Sales Tax OFEScope EPC Scope Table 20 CT Costs of Owner-FurnishedEquipment and Sales Taxes CONEArea 1 Eastem MAAC 2 Southwest MAAC 3 Rest ofRTO 4 Westeni MAAC 5 Dominion Table 21 CC Costs of Owner-FurnishedEuuipment and Sales Taxes OFE CT SCR ($111) ($/lCw) ($111) Sales Tax $93.0 $238.7 $93.0 $238.7 $90.0 $231.0 $93.0 $238.7 $93.0 $237.2 $21.5 $21.5 $21.5 $21.5 ($/k by) $55.2 $55.2 $55.2 $55.2 $6.9 $17.6 $7.8 $20.0 $6.9 $17.6 $4.7 $11.9 ($111) ($/IC w) ($111) $2.3 $6.0 $124.9 $2.0 $5.1 $123.4 $2.0 $5.2 $121.3 $2.0 $5.2 $123.4 $1.8 $4.6 $99.5 ($/k w) $320.5 $316.7 $311.4 $316.7 $25.3.7 Total $0.0 Owner-furnished equipment and sales tax data provided by CH2M H1L.L. (2011) ($177) $93.0 $93.0 $90.0 $9.3.0 $93.0 ($t?l) ($/kw)($111) ($/kw) ($nl) ($/kw) $141.8 $41.0 $141.8 $41.0 $137.3 $41.0 $141.8 $41.0 $141.8 $41.0 $62.5 $42.0 $62.5 $42.0 $62.5 $42.0 $62.5 $42.0 $62.5 $42.0 $64.1 $12.3 $64.1 $10.6 $64.1 $12.1 $G41 $10.6 $64.1 $8.8 $18.8 $6.5 $9.9 $194.8 $16.1 $5.5 $8.4 $192.1 $18.5 $6.1 $9.4 $191.3 $16.1 $5.5 $8.5 $192.1 $13.4 $4.6 $7.0 $189.4 $297.1 $292.9 $291.7 $293.0 $288.9 Sowces arid Notes: Owner-furnished equipinent and sales tax data provided by CH2M HILL. (2011) 3. Engineering Procurement and Construction Costs $0.0 All other plant proper costs are paid to the EPC contractor as suinniarized in Table 22 and Table 23. These costs include all EPC costs required to engineer and consti-uct the plant after considering specific locational and tiine-dependent escalation rates for materials, equipment, and labor. Direct project costs include, but are not limited to, materials, instrumentation, site work, craft labor, freight, and balance of plant (“BOP”) mechanical and electrical equipment. Indirect costs include taxes, builder’s all risk insurance, and perfoimance and payment bonds. Management costs include project management, engineering, procurement, site management, and startup. Contingency costs are incoi-porated for all potential cost over-runs within EPC scope and a project profit margin is included. These EPC costs are incui-red over the capital drawdown schedule as suirmarized in Section 1V.A.4. Additional supporting documentation for these costs is included in Appendix A for the simple-cycle and Appendix B for the combined-cycle configurations. 20 OFEScope ($117) ($/lcw) $8.0 $20.6 EPC Scope Total

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