Economical Analysis

Fig. 11.1 Economical Analysis

Economic analysis takes into account the opportunity costs of resources employed
and attempts measure in monetary terms the private, social and benefits of a project to the
community or economy. The economic analysis was made with the different components
used in our project. Previously selected components will be divided into two parts: Aerial
Line Design and Underground Line Design. Once this analysis is carried out a
comparison between the two designs will be implemented to select the most costeffective project. Also, a payroll and employees salary will be included and explained.
Graphs will show the percentage that will apply to each one sector.

Section 11.1 Aerial Design Pole-Mounted Transformer

Moreover, Table 11.1 shows the materials needed to build an aerial distribution
line along with the cost of its components. Therefore, for this design the aerial
distribution line will be extended to power a telecommunications tower. This project
involves the installation of new conductors, poles, protective equipment, pole-mounted
transformer, etc. Consequently, an extensive research was made to select the most
economical materials.

Aerial Design Material Cost

Components
H4-45' (Pole)
H6-45' (Pole)
Down Guy (Expansion) Pattern E1-2-3 (F1-1)
Square Packing Ring 2x2 (aa-16")
Galvanized Eye Bolt (5/8"x 12")
Wind Wire
Tension Insulator 13.2 kV
Big Anchor (8 way, 10")
Square Packing Ring 2x2 (11-16")
Passing Bolt (5/8" x 14")
Square Packing Ring 2x2 (11-16")
Primary Terminal Fork
Compression Connector
Plastic Trim A.V. 8'
Core #6, 5kV
Ground Rod (5/8" x 8')
Lightning Arrester 10 kV
Breaker 70 Amps/2 poles
1 1/4" PVC Schedule 40
1 #10 AWG, THHN, 90 Degrees, Copper (FT)
1 #4 AWG, THHN, 90 Degrees, Copper (FT)
Metering Cabinet of 400 A
3 #500 MCM, Cu, 90 Degrees, RHH (FT)
1 #3 AWG, Cu, 90 Degrees, THHN (FT)
1 #1/0 AWG, Copper, BARE
Conduit 4" PVC Schedule 40
Service Entrance Cap 4"
Transformer Pole-Mounted 75 Kva, 1-Phase
1 #1/0 AWG, ACSR, THHN (FT)
1 #1/0 AWG, ACSR, THHN (FT)
Breaker 400 Amps/2 poles
FUSE SMD-U 25 A 15KV
SHACKLE INSULATOR

Quantity
12
1
2
1
30
1
25
1
1
25
4
1
26
1
10
13
1
4
16
160
480
1
120
40
10
4
1
1
1800
1800
1
1
25

Price per Unit

$1,031.38
$1,259.95
$20.05
$0.36
$3.79
$5.52
$26.80
$26.06
$0.36
$2.12
$0.36
$3.85
$17.30
$6.74
$0.26
$9.95
$45.21
$16.40
$3.59
$0.20
$0.61
$2,253.60
$5.98
$0.85
$1.36
$21.14
$39.99
$2,602.26
$1.31
$1.31
$475.00
$100.00
$20.00
SUBTOTAL
IVU
TOTAL

Table 11.1 Aerial Design Economic Analysis

Section 11.1

Total Price
$12,376.56
$1,259.95
$40.10
$0.36
$113.70
$5.52
$670.00
$26.06
$0.36
$53.00
$1.44
$3.85
$449.80
$6.74
$2.60
$129.35
$45.21
$65.60
$57.44
$32.00
$292.80
$2,253.60
$717.60
$34.00
$13.60
$84.56
$39.99
$2,602.26
$2,358.00
$2,358.00
$475.00
$100.00
$500.00
$27,169.05
$3,124.44
$30,293.49

Employee Duty
Field Engineer
Supervisor
Line Man
Electrical Worker
Electrical Worker
Operator

Aerial Employee Payroll

Salary
Daily Duty
Rate
Time
$20
4 HOURS
$16
8 HOURS
$14
8 HOURS
$11
8 HOURS
$11
8 HOURS
$12
8 HOURS
TOTAL

Daily Payroll
$80.00
$128.00
$112.00
$88.00
$88.00
$96.00
$592.00

Table 11.2 Aerial Employee Payroll

Furthermore, Table 11.2 shows the total daily payroll for a group of 6 employees.
Each employee has their salary rate and daily duty time established per work shift.
Therefore, the total aerial labor cost is shown in Table 11.3 for an amount of 10 working
days. Additionally, the incidental insurance represents 10 percent of the total material
cost to cover incidents that may occur during working hours such as equipment damage
and bad weather days. Also, the general liability and FSE liability insurances were added
to comply with the law # 45 that applies to any employer who employs one or more
workers.

Aerial Labor Cost

Daily Payroll
$592

Weekly Pay Roll

Days
$2,960
10
Overhead (10%)
Benefits (33%)
General Liability Insurance (3%)
FSE Liability Insurance (8.5%)
Total Labor Cost
Table 11.3 Aerial Labor Cost

Cont. Section 11.1

Weeks
2

Amount
$5,920
$4,847.62
$1,953.60
$177.60
$503.20
$13,402.02

AERIAL HEAVY EQUIPMENT

COST
CRANE
HEAVY EQUIPMENT
TRANSPORTATION
DIGGER
DIESEL
BUCKET TRUCK
CONCRETE MIXER

DAYS
2

COST
$800

TOTAL
$1,600

2
2
7
7
10

$160
$195
$40
$400
$895
TOTAL

$320
$390
$280
$2,800
$895
$6,285

Table 11.4 Aerial Heavy Equipment Cost

Alternatively, the implementation of this design requires heavy equipment rental.
Accordingly, Table 11.4 shows the heavy equipment needed such as crane, heavy
equipment transportation, digger, bucket truck and concrete mixer. Also, the cost of
diesel consumption for 7 days was taken into consideration.
AERIAL ESTIMATED
TOTAL MATERIAL COST
TOTAL LABOR COST
INSPECTION AND CERTIFICATION WITH PREPA
HEAVY EQUIPMENT COST
TOTAL

COST
$48,476.12
$13,402.02
$800.00
$6,285.00
$68,963.14

Table 11.5 Aerial Estimated Cost

Furthermore, as shown in Table 11.5 a final aerial estimated cost was made taking
into consideration the results from previous tables. Also, the project needs an inspection
and certification with P.R.E.P.A. to ensure compliance with all regulations; therefore this
cost was added. The estimated total cost for aerial design is $68,963.14. Additionally, the
graph 11.1 shows as percentages the different total project costs.

Cont. Section 11.1

AERIAL ESTIMATED COST

TOTAL MATERIAL COST
$800.00 $6,285.00
TOTAL LABOR COST

$13,402.02
$48,476.12

INSPECTION AND
CERTIFICATION WITH
PREPA
HEAVY EQUIPMENT COST

Graph 11.1 Aerial Distribution Chart

Cont. Section 11.1

Section 11.2 Underground Design Pad Mounted Transformer

Furthermore, for the underground design the list shown in figure 11.6 presents all
materials needed to implement a safety work and their respected cost to obtain the best
prices for the consumer. The design consists of a primary and secondary underground
line to have a good aesthetic and more space for future construction.
Components
H4-45' (Pole)
H6-45' (Pole)
Down Guy (Expansion) Pattern E1-2-3 (F1-1)
Square Packing Ring 2x2 (aa-16")
Galvanized Eye Bolt (5/8"x 12")
Wind Wire
Tension Insulator 13.2 kV
Big Anchor (8 way, 10")
Square Packing Ring 2x2 (11-16")
Passing Bolt (5/8" x 14")
Square Packing Ring 2x2 (11-16")
Primary Terminal Fork
Compression Connector
Plastic Trim A.V. 8'
Core #6, 5kV
Ground Rod (5/8" x 8')
Lightning Arrester 10 kV
Breaker 70 Amps/2 poles
1 1/4" PVC Schedule 40
1 #10 AWG, THHN, 90 Degrees, Copper (FT)
1 #4 AWG, THHN, 90 Degrees, Copper (FT)
Metering Cabinet of 400 A
3 #500 MCM, Cu, 90 Degrees, RHH (FT)
1 #3 AWG, Cu, 90 Degrees, THHN (FT)
1 #1/0 AWG, Copper, BARE
Conduit 4" PVC Schedule 40 (FT)
Conduit 2" PVC Schedule 40 (FT)
Transformer Pad-Mounted 75 Kva, 1-Phase
1 #1/0 AWG, ACSR, THHN (FT)
1 #1/0 AWG, ACSR, THHN (FT)
1#2 AWG, Cupper, 90 Degrees, THHN (FT)
FUSE SMD-U 25 A 15KV
Service Entrance Cap 2"
1#2 AWG, Copper, 90 Degrees, THHN (FT)
Breaker 400 Amps/2 poles
SHACKLE INSULATOR

Quantity
12
1
2
1
30
1
25
1
1
25
4
1
26
1
10
13
1
4
16
160
480
1
40
40
10
4
3
1
1800
1800
70
2
1
70
1
25

Price per Unit

$1,031.38
$1,259.95
$20.05
$0.36
$3.79
$5.52
$26.80
$26.06
$0.36
$2.12
$0.36
$3.85
$17.30
$6.74
$0.26
$9.95
$45.21
$16.40
$3.59
$0.25
$0.61
$2,253.60
$5.98
$0.85
$1.36
$21.14
$7.75
$3,657.50
$1.31
$1.31
$0.85
$100.00
$9.30
$0.85
$475.00
$20.00
SUBTOTAL
IVU
TOTAL

Table 11.6 Underground Economic Analysis

Total Price
$12,376.56
$1,259.95
$40.10
$0.36
$113.70
$5.52
$670.00
$26.06
$0.36
$53.00
$1.44
$3.85
$449.80
$6.74
$2.60
$129.35
$45.21
$65.60
$57.44
$40.00
$292.80
$2,253.60
$239.20
$34.00
$13.60
$84.56
$23.25
$3,657.50
$2,358.00
$2,358.00
$59.50
$200.00
$9.30
$59.50
$475.00
$500.00
$27,965.45
$3,216.03
$31,181.48

UNDERGROUND EMPLOYEE PAYROLL

Salary
Daily Duty
Employee Duty
Rate
Time
Daily Payroll
Field Engineer
$20
4 HOURS
$80.00
Supervisor
$16
8 HOURS
$128.00
Line Man
$14
8 HOURS
$112.00
Electrical Worker
$11
8 HOURS
$88.00
Electrical Worker
$11
8 HOURS
$88.00
Operator
$12
8 HOURS
$96.00
TOTAL
$592.00
Table 11.7 Underground Employee Payroll
Consequently, a group of electrical workers will be needed to construct an
underground design. These workers shall complete their work in 10 days. Moreover, in the
table 11.7 it can be seen the employee payroll for a group of six workers and their
designated salary.

UNDERGROUND LABOR COST

Daily Payroll
$592

Weekly Pay Roll

Days
$2,960
10
Overhead (10%)
Benefits (33%)
General Liability Insurance (3%)
FSE Liability Insurance (8.5%)
Total Labor Cost

Weeks
2

Amount
$5,920
4,936.41
$1,953.60
$177.60
$503.20
$13,490.81

Table 11.8 Underground Labor Cost

As shown in table 11.8, it can be appreciated the total labor cost of the underground
design construction. The electrical workers will be hired for an approximate of 10 business
days. The labor time to make an underground design is more compared to the aerial design
because it needs an excavation at a certain depth to make an excellent trench.

Underground Heavy Equipment

As shown in figure 11.9, all underground heavy equipment are divide in day of use
and their cost to complete the project on a required time. Also, the most important
components like a digger is used one more day because the primary and secondary line will
be underground.
UNDERGROUND HEAVY
EQUIPMENT
CRANE
HEAVY EQUIPMENT TRANSPORTATION
DIGGER
DIESEL
BUCKET TRUCK
CONCRETE MIXER

Days
2
2
3
7
7
10

COST
$800
$160
$195
$40
$400
$895
TOTAL

Total
$1,600
$320
$585
$280
$2,800
$895
$6,480

Table 11.9 Underground Equipment

As shown in Table 11.10 and Graph 11.2, the underground design estimated amount
would be presented with the material list, labor cost, inspections, certifications and heavy
equipment total cost.

UNDERGROUND ESTIMATED
TOTAL MATERIAL COST
TOTAL LABOR COST
INSPECTION AND CERTIFICATION WITH
PREPA
HEAVY EQUIPMENT COST
TOTAL

COST
$49,364.11
$13,490.81
$800.00
$6,480.00
$70,134.92

Table 11.10 Underground Estimated Cost

UNDERGROUND ESTIMATED COST

TOTAL MATERIAL COST

$800.00 $6,480.00

TOTAL LABOR COST

$13,490.81
$49,364.11

INSPECTION AND
CERTIFICATION WITH
PREPA
HEAVY EQUIPMENT COST

Graph 11.2 Underground Estimated Cost

Standby system
Components
Transfer Switch
Conduit 4" PVC Schedule 40
3 #500 MCM, Cu, 90 Degrees, RHH (FT)
1 #3 AWG, Cu, 90 Degrees, THHN (FT)
Conduit 1/2 " PVC Schedule 40
3 #12 AWG, Cu, 90 Degrees, RHH (FT)
Emergency Generator
Concrete area for Emergency Generator (yd)
Generator Transportation

Quantity Price per Unit Total Price

1
$1,750.00
$1,750.00
1
$21.14
$21.14
12
$5.98
$71.76
6
$0.85
$5.10
2
$1.14
$2.28
24
$0
$6.97
1
$13,800
$13,800
2
$110
$220.00
1
$100
$100.00
$15,977.25
SUBTOTAL
IVU
$1,837.38
TOTAL
$17,814.63

Table 11.12 Standby Systems

Employee Duty
Field Engineer
Electrical Worker
Operator

Standby system Employee Payroll

Salary Rate
Daily Duty Time
$20
8 HOURS
$16
8 HOURS
$10
8 HOURS
Total

Daily Payroll
$160.00
$128.00
$80.00
$368.00

Table 11.13 Standby System Employee Payrolls

Consequently, to implement the design of the standby system a quotation (See Table
11.9) of different equipment and accessories was made. The quotation was made according
to the system wiring.

Section 11.3 Design Selected

During the process of designing for the High Voltage Distribution System, it was
analyzed different types of systems like the underground and aerial distribution. Moreover,
to select an adequate system, electrical and civil aspects were analyzed and all types of
equipment that makes a one phase power system with a primary voltage of 7.62 KV and a
secondary voltage of 120 / 240 V. Consequently, an economical analysis was made for both
distribution systems and selected the most efficient one. Once the economical analysis was
made, the aerial distribution system was more cost-efficient than the underground
distribution system. The aerial system compared to the underground has a saving of
$1,171.79 US dollars.
Although the underground design provides safety, reliability and aesthetics, it has
several disadvantages such as: underground cables have a limited power transfer capability
caused by lower thermal limits in cable insulation; conductors take continuous relatively
high charging currents, this can cause high power losses as high dielectric losses;
underground conductors are more liable to permanent damage following a flash-over, this
is because while air, which is the insulating medium for overhead lines, is restorable, cable
insulation cannot be restored if damaged by a flash-over.
Afterwards, the design selected for our project was the aerial distribution design
because of the reasons mentioned above. Also, the underground design involves several
equipment that increases the total cost of the project. Furthermore, our customer demanded
that the design had to be with an aerial pole mounted substation for reasons of economy and
accessibility.

10