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industries are busy, costs increase drainatically due to not only material aiid inanufacturing costs, but also due to greater demand than supply. Market conditions sometimes make it nearly impossible to assess with any certainty the proper amount of escalation to apply to some materials aiid equipment. This is compounded by the extended time froin estimate development to project implementation. CH2M HILL‘S constant activity in bidding and procuring material aiid equipment provides more accurate costs that reflect current market conditions tlian available by other means. CH2M HILL’s Indicative Estimating Software Model CH2M HILL has taken over 20 years of data from our involvement in tlie power industry and developed an indicative database to aid in estiinating future projects. The ’Tower Indicative Estimating Program” derives project costs based on information tliat is input on various worksheets within the program froin a series of inputs, multiple logic functions and iterations, and a preliminary Indicative Estimate is produced which can be reviewed and modified as necessary. Power Indicative Estimating Program Output Once a project configuration, location, schedule and execution model is defined, tlie indicative estimator works with a Power Project Engineer to reflect other project properties unique to the project. The estimator inputs the specific project data into the inodel and then reviews witli experienced construction managers and engineers to confirin alignment. The program produces an estiinating basis and a series of outputs. Some of tliese outputs include: Quantities of concrete, structural steel, pipe, conduit, cable and insulation 0 0 Equipment required by system Work-hours for labor by discipline 0 0 Engineering hours 0 Construction supervision hours * Startup and testing hours Indirect labor and equipment The program allows the estimator to input tlie latest labor rates, productivity, which is tlien tabulated in the program to develop tlie final cost of the plant. The results of these analyses are contained in Section 6.0 of this report. 2.2 Owner Cost Estimates Pricing for tlie Combustion Turbine Generators (CTGs), is based on GE Power Island information obtained from similar plants CH2M HILL has constructed and proposed. Note that G E s scope includes tlie Continuous Emissions Monitorbig System (CEMS), Packaged Electrical and Electronic Control Cab (PEECC),the Plant Distributed Control System (DCS)and the CTGs auxiliary equipment. For plants witli SCR, budgetary quotes were received from major SCR system suppliers and one representative design was used for pricing data. Page 5 of 24 The Brattle Group 201 I PJM CONE Stitdy Appendix Page A-XPDF Image | THE APPLICATION OF KENTUCKY POWER
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