THE APPLICATION OF KENTUCKY POWER

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Table 22 EPC Costs for Gas CT Plants CONEArea 1 Eastern MAAC 2 Southwest MAAC 3 RestofRTO 4 Westem MAAC 5 Doininion Soirrres atid Notes. EPC Costs ($Ill) ($/Iccv) $130.6 $335.1 $105.0 $269.5 $113.6 $291.5 $123.0 $315.8 $104.0 $26.5.3 EPC Costs provided by CH2M H1L.L.(2011). Table 23 EPC Costs for Gas CC Plants CONEArea EPC Costs ($In) 1 EasternMAAC $3.56.2 ($/IC Wl $543.3 $418.8 $510.8 $508.6 $418.5 2 Southwest MAAC 3 R e s t o f R T O 4 Western MAAC 5 Doininion $274.6 $3.34.9 $3.3.3.4 $274.4 Soirrres arid Notes. EPC Costs provided by CH2M HILL (201 1) 4. Capital Drawdown Schedules CH2M HILL has developed monthly capital drawdown schedules over the project development periodforeachplantconfiguration. Separatemonthlydrawdownscheduleshavebeendeveloped for the direct owner’s plant proper costs identified in Section IV.A.2, as well as for the EPC costs identified in Section IV.A.3. These drawdown schedules differ slightly for each plant, but representative drawdown schedules are included for one simple-cycle plant in Appendix A.5, consistent with the prqject schedule in Appendix A.4, as well as for one combined-cycle plant in Appendix B.5 consistent with the project schedule in Appendix B.4. B. OWNER’SCAPITALCOSTS Outside of the plant proper owner and EPC costs, there are additional costs an owner must incur in the development and construction of a generating plant. We estimate these costs, which include land, emissions reductions credits, gas interconnection, electric interconnection, start-up fuel during testing, and owner’s contingency. We developed these cost estimates based on publicly-available sources, except for project development and owner’s contingency, for which estimates are based on industry experience and conversations with a number of project developers and plant operators. 1. Land We estimated the cost of land by reviewing historical transaction prices and current asking prices for vacant industrial land for sale in each selected county. We narrowed the recent transactions 21

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