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Expansion Delta Lateral Project MalkWest Texas Eastern Transmission ciulfstreain Bayonne Delivery Lateral Project [SI NJ Columbia Gas [GI NJ Duke Energy Indiana ~ 7 1 IN Table 29 istorical Gas Lateral Project Costs Filed with FERC E11 DE I21 NM [3] LA [41 FL State Pipeline Pipeline Width Length (itiches) (miles) 16 3.42 16 3.16 20 3.79 20 17.74 20 6.24 24 23.80 20 19.50 Pipeline Cost Meter Station ($tn/tiiile) (Y/N) $2.77 Y $1.10 N $3.76 Y $3.44 Y $2.21 Y $1.63 Y $1.92 Y Station Cost (Ill$) $3.33 n/a $3.16 $3.72 $3.86 $3.09 $3.75 $3.48 Average $2.40 Soirrcer arid Notes [I] Delta Lateral Project (2009). [2] MarkWest (2007). [3] Texas Eastern Transmission Co. (2007). [4] Gulfstream (2006). [SI Bayonne Delivery Lateral Project (2009) [GI Coluinbia Gas (2001). [7] Duke Energy Indiana, Inc. (2010). Pipeline lengths range from 3 to 23 miles. For the gas CT and CC plants in our study, we selected siting locations in the same county as a major gas pipeline, with a reasonable availability of vacant industrial land. For this reason, we assume that each plant will interconnect with a pipeline with a 5-mile gas lateral, a reasonable assumption based on historical pipeline lengths. In addition, each plant will be equipped with a metering station.26 Total gas interconnection costs vary widely from location to location, but we estimate a cost consistent with the average observed. We estimate the total gas interconnection cost for each CONE area is $16 million based on $2.5 million per mile for 5 miles plus $3.5 million for the metering station. 4. Electric Interconnection We estimated electric interconnection costs based on historical electric interconnection cost data provided by PJM.27 Electric interconnection costs consist of two categories of costs: direct connection costs and network upgrade costs. Direct connection costs will be incurred by any new project connecting to the network. Network upgrade costs do not always occur, but are incurxed when improvements, such as replacing the transfoimer, are required. To deteiinine the most appropriate basis for deteiinining expected interconnection costs, we reviewed interconnection costs for plants recently built and summarized them by voltage, plant size, and location. The total range of interconnection costs is quite large, depending on both voltage and plant size. Interconnections below 138kV vary substantially as a function of voltage and can be quite low, while interconnection costs above that threshold did not appear to vary substantially by voltage. For projects above 138kV, plant size is another factor affecting 26 27 Note that while meter stations are not included in all prqjects in Table 29, this means only that the meter station cost was not included as part of the public filing, not that the project was without a meter station. PJMInterconnection, L,.L,.C.(201la). 25PDF Image | THE APPLICATION OF KENTUCKY POWER
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