Building New Generation May11_2006

MMEA Pr es en t at i o n Bu ildi Buil ding ng New Ba B aseloa seload d Genera nerati tion on in th the e Mid Midwest west

Bl ack & Vea Bla Veatc tch h May 11, 2006

May Ma y 11 11,2 ,200 006 6-1

Process ro cess Steps for fo r New New Genera Generati tion on

Systems Analysis

Licensing / Permitting

Market Assessment Assessment

Conceptual Engineering

Plant Configuration Study

Monte Carlo Analysis

Preliminary Cost Estimates

Fe Feasibili asibility ty Feasibili Fe asibility ty // Initial Initial Init ial Engineering Engineering

Arrangement Arrangement Drawings System Definitions

Construction Management

Soils Testing

Project Schedule

Project Planning & Controls

Commercial Construction Strategies

Startup Assistance Assistance

Beyond

Operator Training Procurement Assistance Assista nce

Conceptual D onn Conc onceptual eptual // Definiti Definiti De efin finitio itio Engineering Engineering Confidential information. information. ©Copyright Black Black & Veatch Corporation, Corporation, 2005. All rights reserved.

May Ma y 11, 11,20 2006 06 - 2

Project Completion

Engineering Review

Detailed Cost Estimates

Select Major Equipment

Preliminary Schedules

Feasibility Study

Project E nn Project Executio Execution Executio xecution

U.S. Energy Market Signals Remain Favorable for New Coal-Fired Generation

Over 80 GW of Planned New U.S. Coal Projects Of the 16 Units Under Constru ctio n, We Are Involved In 6

Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 3

EKPC J.K. Smith 1 278 MW

Under Construction Full NTP With Permits

TXU Sandow 5 575 MW

Tri-State Holcomb 3 600 MW

LNTP, or NTP With Limit on Construction

TXU Oakgrove 850 MW

LSP Nevada 600-800 MW

Tri-State Holcomb 4 600 MW

Peabody Prairie St. 1 750 MW

LSP B lk Hw k Io wa 600 MW

LSP Georgia 600-800 MW

NRG Big Cajn. II, 4 675 MW

Sierra Pacific White Pine 750 MW

FPL Florida Unit 1 850 MW

KCP&L Iatan Unit 2 750 MW

LSP Texas 600-800 MW

UAMPs/Pacif Intermt. 3 950 MW

CWLP Dallman 34 201 MW

LSP Plum Point 1 665 MW

CUS Southwest 2 275 MW

Dominion SW VA Proj. 600 MW

EKPC Spurlock 4 278 MW

CPS Spruce 2 758 MW

HG2 Owners Hugo Unit 2 750 MW

JEA/FMPA N. Flori da 800 MW

CLECO Rodemacher 600 MW

NAPG Two Elk 280 MW

LG&E Trimble Cty 2 732 MW

Peabody Prairie St. 2 750 MW

Detailed Design Awarded, or EPC Award / LOI Without LNTP Development & Permitting Work Awarded (Selected Basis)

s t i n U

U.S. Coal Projects (Units and COD)

MDU Hardin, Mont. 116 MW

Santee Coop. Cross Unit 3 580 MW

Newmont TS Plant 200 MW

Santee Coop. Cross Unit 4 580 MW

Sunflower Holcomb 2 600 MW

Basin Elec. NE Wyomin g 250 MW

BPU Nearmn Cr 2 235 MW

Pacificorp Hunter 4 500 MW

Manatowoc Unit 9 63 MW

Xcel King 600 MW

Black Hills Wyg2 , Unit 4 90 MW

WE Energies Elm Road 1 615 MW

WE Energies Elm Rd. 2 615 MW

AECI Norborne 1 660 MW

Seminole Palatka 3 750 MW

FPL Florida Unit 2 850 MW

Tri-State CO Coal Unit 656 MW

Tri-State Springerville 400 MW

MidAmerican CB4 790 MW

WPSC Weston 4 532 MW

OPPD NC2 663 MW

Xcel Comanche 3 750 MW

BS II Owners Big Ston e II 600 MW

PPGA Hastings 2 220 MW

WPSC Baseload II 530 MW

Sierra Pacific White Pine 750 MW

2006 May 11,2006 - 4

2007

Confidential information. ©Copyright Black & Veatch Corporation, 2005. 2008 2009 2010 2011

All rights reserved.

2012

2013

2014

Black & Veatch Current Coal Projects Owner

Project

Project Size

Scope

COD

Tanjung Jati B Power Plant

2 x 660 MW

EP

2006

Primadaya (PT S2P)

2 x 300 MW

OE

2006

King Rehabilitation Project

600 MW

Ep

2007

Bhilai, India

2 x 250 MW

Ep

2007

Black Hills Energy

Wygen 2 Unit 4

1 x 90 MW

OE / P

2008

WPSC

Weston Unit 4

532 MW

Ep, Field Engr., SU

2008

OPPD

Nebraska City Unit 2

663 MW

EPC

2009

CWLP

Dallman Unit 34

201 MW

EPC

2009

CPS

J.K. Spruce Unit 2

758 MW

EPC

2010

Plum Point Energy Station

665 MW

EPC

2010

Big Stone II

600 MW

EpCM

2011

Alaska Coal Project

1 x 130 MW

Conceptual Engineering / Cost Estimate

2011

Whelan Energy Center 2

220 MW

Conceptual Design / Permitting Support

2012

Sumitomo Corporation PT Sumber Segara Xcel Energy BESCL

LS Power Big Stone II Ownership Group Chugach Electric Association, Inc. PPGA


May 11,2006 - 5

CWLP Dallman 34, Springfield, Illinois 201 MW PC Subcritical Unit Designed to Burn High Sulfur Illinois Coals Contract Signed: October 3, 2005 B&V Role: EP KIC Role: C EPC JV: KIC and B&V FW Boiler, Toshiba Turbine Generator FF, Wet FGD, Wet ESP Scheduled Completion: September 2009 Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 6

CWLP Dallman 34, Springfield, Illinois


May 11,2006 - 7

New Generation Project Layout and Design Basis


May 11,2006 - 8

Site Plan


May 11,2006 - 9

Dallman Site City Water Plant

Lakeside Plant

Unit 3

Units 1 and 2

Units 1 and 2 FGD Unit 3 FGD and 1,2, and 3 Limestone and Dewatering Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 10

Coal Pile

Existing Truck unloading New Unit Stockout

New Unit Reclaim and Conveyor

Existing Stockout

New Transfer Conveyor


May 11,2006 - 11

Cooling Tower

Sound Wall

Drainage Trench

Lake Springfield Sound and Plume Abated Cooling Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved. Tower

May 11,2006 - 12

Overall AQCS


May 11,2006 - 13

City of Springfield 3-D Model


May 11,2006 - 14

Project Schedule

Issue RFQ Start Phase 1 Engr

Phase 1 Complete

Select EPC Bidder Begin EPC Start Negotiations Spec Prep / RFQ Responses Due Receive EPC EPC Issue Contract EPC RFP Bids Award

NTP Mobilization Start Site Modification Guaranteed Start Power Construction Delivery Sept 2009

CWLP -38

-25

-24

-16 -15

Start Phase 2 Engr and Permitting

-11 -10

-5

Permit Application Submitted

-4

-2

0

Receive Permit


May 11,2006 - 15

5

47

Actual U.S. Coal Plant Construction Schedules 34

75 – 100 MW

28

100 – 200 MW

37 37

250 – 400 MW

40

425 – 500 MW

40

44 50 58

46

600 – 700 MW

0

10

20

30 40 Months

50


May 11,2006 - 16

60

70

Market and Sourcing Example – Pipe Material to Fabricator Lead Times 80 70 60

s 50 k e 40 e W30

Significant Factor in Project Schedules 76 72 68 52

20 10 0 April 2004

Octo ber 2004

Apr il 2005


May 11,2006 - 17

Januar y 2006

Market and Sourcing Example – Total Structural Steel Mill Order Lead Times 30

Significant Factor in Project Schedules Mill Order Times:

25 20

s k e 15 e W

• 2003 to 2005 = 8 Wks • 2006 = 12 to 16 Wks

16

16

16

2003

2004

2005

20 to 24

10 5 0 Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 18

2006

Market and Sourcing Example – Steam Turbine Lead Times 30

Significant Factor in Project Schedules 22-24

25 20

s h t n 15 o M

18

20

20

May 2005

Sep 2005

10 5 0 Dec 2003

January 2006


May 11,2006 - 19

Escalation Summary – Market and Sourcing Increasing Coal Plant Costs Price Escalation on Commodities Such as Steel, Copper and Alloy Have Driven Prices and Lead Times Up Dramatically AQCS Equipment Extremely Tight Market Due to Ongoing Retrofit Work (30% Materials Required) Boiler Prices Increasing (30% Materials Required)

The E&C Industry Is Also “ Tight” With a Limited Number of Capable Players Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 20

Escalation Example – Steel 700 650 600

36% Increase

550

n o T 500 / $ 450 400

Total Mill Pric e

350 300 4 ' 0 n J a

4 ' 0 c e D

5 ' 0 n J a

5 ' 0 c e D

6 ' 0 n J a

Month Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 21

Escalation – Labor As-Stated Escalation Rates for Midwest Coal Project

2005 Rate

2006 Rate

2007 Rate

Annual Escalation Rate

Operators

$28.06

$29.56

$31.06*

5.3%

Laborers

$19.50

$20.70

$21.90*

6.1%

Millwright

$30.00

$31.85

$33.70

6.2%

Ironworker

$25.10

$26.95

$28.80

7.4%

Carpenter

$25.65

$27.50

$29.35

7.2%

Pipefitter

$32.73

$34.83

$36.93

6.4%

Electricians

$30.73

$32.58*

$34.43*

6.0%

Boilermaker

$27.80

$28.60

$30.10

5.2%

Average

6.2%

Craft

*Futur e Estimate Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 22

Total Craft Labor Full Time Equivalents (FTEs) Based on U.S. Coal Projects Slide

14,000

12,000

(Units and COD)

10,000

s ' E T F

8,000

6,000

4,000

2,000

0 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Year Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 23

2012

2013

2014

Equipment Suppliers – Boilers Domestic Based

International Based

Alstom Power

IHI, Inc.

Babcock & Wilcox

Mitsubishi Power

Foster Wheeler

Mitsui Babcock

Babcock Power

Babcock Hitachi


May 11,2006 - 24

Equipment Suppliers – STGs

Alstom Power General Electric Mitsubishi Power Siemens Westinghouse Toshiba Hitachi Fuji Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 25

Equipment Suppliers – FGD, Fabric Filters and Electrostatic Precipitators Dry FGD Wet FGD

Alstom Power

X

X

Babcock Power

X

X

Babcock & Wilcox

X

X

Chiyoda

FF

Dry ESP

Wet ESP

X

X

X

X

X

X

X

X

X

X

X

Hamon RC

X

Hitachi

X

Wheelabrator

X

X

AdvaTech (MHI & URS)

X

Marsulex

X Confidential information. ©Copyright Black & Veatch Corporation, 2005. All rights reserved.

May 11,2006 - 26

X

CWLP Dallman 34, Springfield, Illinois


May 11,2006 - 29

Building New Generation May11_2006

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