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If your company is planning to retire a coal-fired power plant, you’ll need more information about decommissioning, decontamination and demolition. What are the risks, benefits and long-term liabilities? This presentation features a comprehensive discussion about the cost of decommissioning, the liabilities, the remediation and the opportunities for repurposing old sites.
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www.trcsolutions.com
POWER ENGINEERING Webinar
August 7, 2014
"Fossil Fuel Plant Retirement:
Planning and Lessons Learned”
Introduction to TRC
• TRC [TRR:NYSE] is a national energy, environmental
and infrastructure engineering and construction
management firm with $425M in sales and 3,000
professional and technical employees.
• TRC has been a partner to the utility sector since 1969
and derives 40% of its revenue from energy clients.
• Developed its RE POWER™ Program in 2007 - Over
Twenty Decommissioning Projects to Date.
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Announced Power Plant Closures
Market Opportunities and Timing
• 150 Sites, 500 Boiler-Turbine Units
• Markets Started in Oil Burners on the Coasts
• Economic Drivers – Gas Prices and Heat Rate
• Regulatory Drivers – MATS, CSAPR, 316(b),
CCRs
• Peak Closure Years 2015-6
• $2B decommissioning market using EPRI
numbers
• Major Driver of Transmission Projects
Reserve Margins
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TRC RE POWER™ Initiative
• Created in 2007 to help generating companies transform
aging power plants through replacement, retirement, retrofit or
redevelopment
• Twenty-two projects, fifteen as Owner’s Engineer, five as
Prime Contractor and two as a Consultant
– Playbooks
– Engineering and construction management during decommissioning
– Turnkey solutions as prime contractor
• Working relationships with power utilities, independent power
national, asset recovery and abatement and demolition
contractors
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RE POWER™ Project Goals
• Safety
– Protect the health and safety of workers and the public and third party
property.
• Environmental excellence
– Compliance with law and regulation, maximizing beneficial reuse of
building materials and real estate.
• Cost
– Maximizing asset recovery, managing carry and decommissioning
costs, recovering costs in regulated states and maximizing
redevelopment credits.
• Schedule
– Meet schedule commitments.
• Quality,
– Stakeholder requirements, including system reliability.
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Power Plant Retirement Business Models
• Retain Assets for Reuse as Generation or Transmission
• Retrofit for CSAPR, MATS, GHG Regulations
• Sell for Utility Use by Another Firm
• Sell for Redevelopment / Adaptive Use
• Sell for Scrap – Caveat Emptor
• Donations and Public-Private Partnerships with Local Government
• Declare Bankruptcy and Auction Sites
RE POWER™ Playbooks
It’s Best to Have a Plan
• Based on Existing Information
• Asbestos, Hazardous and Regulated Materials
• Transmission and Other Utilities
• Asset Valuation – Salvage, Scrap and Real Estate
• Permits
• Environmental Site Assessments
• Means and Methods Constraints
• Community and Stakeholder Relations
• Future Use Scenarios
• Cost Estimate
• Schedule
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RE POWER™ Engineering During
Decommissioning
• Pre-demolition Surveys
• Plans and Specifications
• Commercial Requirements and Pricing Sheet
• Allocation of Risk
• Bid Package
• Work Plans
• Permit Applications
• Community and Stakeholder Relations
• Procurement Support Services
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RE POWER™ Construction Support Services
• Project Management
• Site Management
• Contract Administration
• Change Management
• Health And Safety Inspections
• Environmental Coordination
• Project Documentation
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Asset Recovery – Salvage and Scrap Metal
• Think about fair price for salvage equipment – what would you
pay for salvage equipment?
• Scrap quantities correlate well with steam capacity
• Average scrap steel prices have ranged from less than $200
to more than $400 per long ton for plate and structural steel,
prepared and delivered to mill or port.
• Copper quantities somewhat less predictable.
• American Metal Market and LME Published Indices
• Risk / reward options
– assign quantity and market risk to demolition contractor or share risk &
reward
– risk sharing based on open book or published index e.g. American Metals
Market plate & structural
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Waterside Station, New York City
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Austin Energy Holly Street
• TRC is Serving as Prime
Contractor for abatement,
demolition and restoration of this
570 MW power plant
• Prescriptive requirements, over
and above legal, regulatory and
commercial requirements
• Extensive community involvement,
35% M/WBE participation
• Future use is transmission and
waterfront park in Austin, TX
14www.trcsolutions.com
National Grid Portfolio
Far Rockaway
Barrett
Glenwood
Port Jefferson
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New York Power Authority Poletti Station
• TRC provided permitting support for the new
NYPA 500 MW plant, Astoria Energy I & II,
totaling 1500 MW of CCGTs with air cooled
condensers
• TRC won competitive bid for engineering
during decommissioning of Poletti Station, an
825 MW Plant
– asset recovery
– pre-demolition surveys
– plans and specifications for bid
– procurement support
– engineer of record
– health, safety and environmental
inspections during decommissioning.
• LVI is performing abatement & demolition
16www.trcsolutions.com
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PPL Hydroelectric Expansion
Geotechnical Study
• TRC was retained as the
geotechnical engineer-of-record to
execute a geotechnical investigation
associated with A 125 MW
expansion of PPL’s Holtwood hydro-
electric generating facility on the
Susquehanna River. The
investigation included a coal ash
landfill, which was subsequently
covered with 750,000 CY of rock
from the one-mile long channel
below the powerhouse.
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