Sie sind auf Seite 1von 34

Operations Committee Meeting

January 14, 2009


Revised
XII. Review/Recommend Acceptance of the SCAPP Execution Plan

Southcentral Power Project

Deleted: C

Project Execution Plan

January 2009
Dustin Highers

Deleted: December 2008

Rev. 1

Formatted: Font: 9 pt

SPP Project Execution Plan

Chugach Electric Association

Page 2 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Table of Contents
1

PROJECT DESCRIPTION......................................................................................... 2
1.1
Design Basis........................................................................................................ 2
1.2
Cost Estimate ...................................................................................................... 2
1.3
Schedule.............................................................................................................. 2
1.4
Project Funding................................................................................................... 2
2 PROJECT ORGANIZATION .................................................................................... 2
2.1
Project Management Team ................................................................................. 2
2.1.1
Management................................................................................................ 2
2.1.2
Permitting Staff........................................................................................... 2
2.1.3
Preliminary Engineering & Construction Management Staff..................... 2
2.1.4
Engineering & Construction Staff .............................................................. 2
2.1.5
Quality Assurance Staff .............................................................................. 2
2.1.6
Safety Staff.................................................................................................. 2
2.1.7
Project Controls Staff.................................................................................. 2
2.1.8
Materials Contracting & Procurement Staff ............................................... 2
3 PROJECT MANAGEMENT...................................................................................... 2
3.1
Communications Management ........................................................................... 2
3.1.1
Document Control....................................................................................... 2
3.1.2
Owner Representation Plan......................................................................... 2
3.2
Project Controls (Scheduling & Cost Control) ................................................... 2
3.2.1
Scheduling................................................................................................... 2
3.2.2
Estimating ................................................................................................... 2
3.2.3
Budgeting.................................................................................................... 2
3.2.4
Forecasting.................................................................................................. 2
3.2.5
Progress Assessment for Vendor Pay Requests.......................................... 2
3.2.6
Reporting..................................................................................................... 2
3.3
Contract Management......................................................................................... 2
3.3.1
Compliance ................................................................................................. 2
3.3.2
Contractor Interface .................................................................................... 2
3.4
Risk Management ............................................................................................... 2
3.4.1
Risk Management Plans.............................................................................. 2
3.4.2
Quality Assurance....................................................................................... 2
3.4.3
Site Safety & Loss Control ......................................................................... 2
3.4.4
Compliance (Environmental & Other)........................................................ 2
4 PROJECT PHASES.................................................................................................... 2
4.1
Study & Planning................................................................................................ 2
4.2
Conceptual Engineering/Permitting.................................................................... 2
4.3
Preliminary Engineering ..................................................................................... 2
4.4
Design Engineering............................................................................................. 2
4.5
Construction........................................................................................................ 2
4.6
Startup and Commissioning................................................................................ 2
4.6.1
Performance Testing ................................................................................... 2
4.7
Warranty Administration and Project Close-out Plan ........................................ 2

Chugach Electric Association

Page 3 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

PROJECT DESCRIPTION

The Southcentral Power Project (SPP) will be a natural gas-fired combined cycle power
plant utilizing GE LM6000 PF-25 DLE combustion turbines in a three-on-one
configuration, in which each combustion turbine exhausts to a heat recovery steam
generator (HRSG). Steam generated in the HRSGs is piped to a condensing steam
turbine, which generates electrical energy in addition to that generated by the combustion
turbine generators. The steam turbine exhausts to a conventional steam surface
condenser which is cooled by a closed-loop glycol / water system which rejects heat from
the cycle via a large air-cooled heat exchanger consisting of banks of finned tubes and
fans for directing airflow through the tube banks. The turbine will be a 3,600 rpm, single
casing, single flow, non-reheat machine and will operate in sliding pressure mode with
the turbines steam admission valves wide open. The generator associated with the steam
turbine will be a totally enclosed water-air cooled generator as will the generators
associated with the combustion turbines. The combined cycle power plant will have an
approximate net plant output and net plant heat rate of 182.5 MW and 6,382 Btu/kW-hr,
respectively, while operating at the annual average ambient temperature of 36F.

Deleted: C
Deleted: SCPP

The unit will be equipped with a selective catalytic reduction (SCR) system for reduction
of NOX emissions and a CO oxidation catalyst for reduction of CO emissions.
Power generated by the facility will be stepped up to 138 kV by four three-phase
generator step-up (GSU) transformers one transformer for each combustion turbine
generator and one for the steam turbine generator. The GSU transformers will be
connected to a new 138 kV substation located on the International Generation Terminal
(IGT) property near the generating facility. Station auxiliaries will be powered from two
unit auxiliary transformers.
1.1

Design Basis

The design basis for SPP was established through multiple studies prepared by Black &
Veatch for Chugach. The Conceptual Engineering and Economic Assessment for IGT-2
3x1 LM6000 documents the general plant design criteria that will be used during the
projects detailed design. The key design criteria are listed below.
A three-on-one combined cycle configuration has three combustion turbine
generators (CTG) exhausting flue gas through three HRSGs which supply steam
to a single steam turbine generator (STG). The SPP plant will be based on GE
LM6000PF-25 DLE combustion turbines with single fuel, natural gas firing, twopressure HRSGs, and a non-reheat STG with axial exhaust.
The new combined cycle plant will be located on the south side of Chugach
Electrics IGT property immediately adjacent and east of the Chugach PCB
Building (Building E). Chugach Electrics headquarters are located at the
northernmost part of the site.

Chugach Electric Association

Page 4 of 34

December 12, 2008

Deleted: SCPP

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

The plant site elevation is at 130 fasl (feet above sea level) and its average annual
temperature is 36 F (dry bulb) and 68 percent relative humidity.
Power generation by the plant will be stepped up to transmission voltage of 138
kV.
The new generation should be designed to provide the same redundancy,
reliability, and availability as that being incorporated into other state-of-the-art,
base loaded natural gas-fired, combined cycle power plants.
The plant will be equipped with an auxiliary boiler. This equipment will assist
with initial inlet air heating of combustion air for the gas turbines and provide
sealing steam to the steam turbine glands to allow for vacuum buildup during
startup of the steam system.
Natural gas will be used as the only fuel for the CTGs and for the auxiliary boiler.
Natural gas for the new plant will be supplied by ENSTAR Natural Gas
Company. Chugach Electrics communication with ENSTAR revealed that the
natural gas supply system may be able to supply at least 30 MMscf per day at
GEs required gas pressure of 675 +/- 20 psig a pressure in which compressors
will not be required. However, future conditions are unknown and compression
will be installed to accommodate any unforeseen pressure drops or other future
deliverability problems. ENSTAR will need to upgrade their IGT metering
station to accommodate the increased flows. If the supply pressure is lower than
expected, compression may be required as part of the project.
Cycle heat rejection will be accomplished with a steam surface condenser used in
conjunction with a fin-fan cooler. Coolant for the heat rejection system will be a
propylene-glycol / water mixture instead of water. Closed cycle component
cooling will be accomplished by utilizing a side stream circuit of coolant from the
cycle heat rejection system. Use of a glycol system will open options for plant
and external heating requirements, especially inlet air heating of the gas turbines
to support more efficient operation, in terms of both thermal and environmental
characteristics.
The CT/HRSG combinations will be equipped with bypass stacks and diverter
dampers to allow for simple cycle operation of the CTGs.
Black start capability is included.
Major equipment, especially rotating and other sensitive equipment, will be
installed indoors within the plants main structures with an overhead crane for the
STG. Ready access will be provided to the CTGs, HRSGs, and BOP equipment
for regular maintenance. The plant maintenance shop and warehouse will be
adequately equipped with tooling and spares in consideration of the Chugach
Electrics normal approach to maintenance. This is to be done primarily for

Chugach Electric Association

Page 5 of 34

December 12, 2008

Deleted: at least to the extent as


is technically feasible,

SPP Project Execution Plan

Deleted: SCPP

reliability and availability issues. Maintenance will take significantly longer to


accomplish on HRSG and steam systems with cold weather packages (heat
tracing) installed. The use of a building avoids the freeze up of boilers, piping,
and instrumentation that will result in unexpected, forced outages. Given this
plant will be vastly more efficient than all others on the Railbelt, these production
losses will become increasingly unacceptable with ever increasing natural gas
prices. Further, the proximity of these systems to residential areas will lead to a
noise compliance issue. A building will have the added effect of noise reduction
to avoid impact to the projects neighbors. The extent of the plant building is to
be finalized during the preliminary engineering phase of the project.
Raw water for cycle makeup and general use will be available from city water
located on-site.
Access to the site is readily available with one of Alaskas major highways
located within one-mile of the site. The Port of Anchorage is available to receive
shipments from ocean going ships, and the Alaska Railroad runs immediately
adjacent to the IGT site.
The plants construction workforce and Chugachs permanent operations and
maintenance staff will reside in housing located within the greater Anchorage
area.
The Air Quality Control (AQC) systems will be designed to comply with all
applicable emissions requirements. The following is a summary of the anticipated
Best Available Control Technology (BACT) and emission levels:
o Nitrogen oxides--BACT is expected to be the use of Selective Catalytic
Reduction (SCR) to achieve 3 to 5 ppmvd NOX at 15 percent O2.
o Carbon monoxide--BACT is expected to be the use of an oxidation
catalyst to achieve 3 to 10 ppm CO.
o Particulate matter (PM/PM10)--BACT is expected to be the use of natural
gas and good combustion practices.
o Volatile organic compounds (VOC)--BACT is expected to be the use of
natural gas and good combustion practices.
o Sulfur dioxide--BACT is expected to be the use of natural gas with a
maximum sulfur content of 2 grains per 100 scf.
o Sulfuric acid mist--BACT is expected to be the use of natural gas with a
maximum sulfur content of 2 grains per 100 scf.
o Actual final emission levels will be dictated by final permitting efforts.
Black & Veatch utilized the above described general plant design criteria in the
development of the conceptual design for the SPP project. Assumptions for conceptual
systems and component design were based on these criteria and are further described in
the Conceptual Engineering and Economic Assessment for IGT-2 3x1 LM6000 report.

Chugach Electric Association

Page 6 of 34

December 12, 2008

Deleted: IGT-2

SPP Project Execution Plan

1.2

Cost Estimate

In May 2008, the capital cost estimate was updated from previous figures provided in
2006 and 2007 by Black & Veatch. Estimates of total project costs were calculated by
escalating the July 1, 2005 dollar value of the plant less the CTGs to April 1, 2007 US
dollars by a factor of 1.1082. The April 1, 2007 dollar value was then escalated to May
2008 US dollars using a factor of 1.25 and GEs April 2008 proposed cost per CTG of
$20,903,299 (including stack) was added to the estimate. The total EPC project cost was
estimated at $274,254,677. The conceptualized 3x1 combined cycle plant continued the
use of GE LM6000PD DLE combustion turbines and included duct firing of the HRSGs,
but did not include black start generation. This estimate was considered as adequate for
relative comparison purposes to other plant configuration scenarios being considered in
the Chugach economic analysis, but the estimate was noted by Black & Veatch as now
being an order of magnitude capital cost. COD was not specified.
A new capital cost estimate will be prepared by the Owners Engineer, once this
engineering firm is retained under contract. The estimate will be based upon preliminary
engineering of a 3x1 combined cycle plant using GE LM6000PF-25 DLE combustion
turbines and will include simple cycle bypass stacks and black start generation. Duct
firing of the HRSGs will not be included in the plant design. The capital cost estimate
will be based upon a project schedule in which an EPC contractor will be given Notice to
Proceed by First Quarter 2009 and the COD will be set at June 30, 2013.
1.3

Schedule

Based on a construction start date of September 2009 and a 45 month construction


schedule, plant commercial operation was projected to occur on June 30, 2013. To
enable construction to begin at the end of September 2009, preliminary engineering
should have begun in May 2008, air permitting should have begun in July 2008, and the
award of the EPC contract should happen by April 2009.
Critical path for the project was identified as the procurement of the steam turbine
generator (STG). A 24- to 36-month STG procurement duration is expected. STG
procurement durations will be reviewed once again by the OE at the time of procurement.
A new project schedule will be prepared by the Owners Engineer, once this engineering
firm is retained under contract. The project schedule will based upon preliminary
engineering of a 3x1 combined cycle plant using GE LM6000PF-25 DLE combustion
turbines. The project schedule will consider having the Owners Engineer contracted in
February 2009, the EPC contractor receiving Notice to Proceed by April 2009, and the
combined cycle plant COD set at June 30, 2013.
1.4

Project Funding

The project was put forward on the basis that economies of scale and significant savings
would be achieved by working together with other utilities to increase the size and
capacity of the new power plant. This resulted in the successful negotiation of the
Participation Agreement between Chugach Electric Association, Inc. (Chugach) and
Anchorage Municipal Light and Power (ML&P). This Agreement contains the
Chugach Electric Association

Page 7 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

requirement for a Financing Plan which describes the projects funding plans by Chugach
and ML&P. The relevant sections of the Financing Plan are as follows:
Chugach Electric Association, Inc. (Chugach) intends to fund its proportionate share
of the costs of the South Central Alaska Power Project (SCAPP), through
establishment of a highly liquid Commercial Paper (CP) program in the amount up to
$300 million. The facility will be backstopped by a combined senior unsecured credit
facility from National Rural Utilities Cooperative Finance Corporation in the amount of
$100 million and KeyBank in the amount of $200 million.
And,
Municipal Light & Power (ML&P) intends to fund its proportionate share of the costs
of the South Central Alaska Power Project (SCAPP) through establishment of a
commercial paper (CP) program in an amount up to $90 million and through the use of
retained earnings up to $10 million. The facility will be backstopped by a senior credit
facility in the amount of $90 million.
Chugach achieved the CP program and the backstop, thereby fulfilling requirements of
the Financing Plan.
The proportionate shares of the generation are defined in the Participation Agreement
with 70% to Chugach, and 30% to ML&P.

Chugach Electric Association

Page 8 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

PROJECT ORGANIZATION

2.1
2.1.1

Project Management Team


Management

The Chugach Electric organization for SPP has been established by the Senior Vice
President, Power Supply. This position is the Program Manager which holds
responsibility for planning and execution of the project as a whole across the divisions of
Chugach for all project Participants including ML&P.

Deleted: SCPP

The Chugach Project Manager is responsible to the Program Manager for the
coordination and overall execution of the generation project, including performing the
work in accordance with the general policies of the company. The Project Manager is
responsible for the progress, schedules, costs, and quality of the project assisted by the
Chugach Site Manager. He will be directly supported by the OE Project Manager who
will be responsible for the activities performed by the engineering firm providing OE
services, including such tasks as preliminary design development, permitting support,
major equipment procurement specification preparation, proposal evaluations, EPC bid
package development, EPC bid package evaluation, construction support, startup/commissioning support, etc. The OE Project Manager will have an OE Assistant
Manager located in the field to work alongside Chugachs Project Manager to represent
the OE in Chugach Electrics offices. The OE Assistant Project Manager will not only
provide Chugach support during preliminary engineering and equipment procurement,
but also during construction.
The Chugach Electric project organization includes project management and the project
staff assigned to the project. Positions within the project organization will be staffed by
employees and/or temporary employees of Chugach Electric and the Owners Engineer
(OE). The project organization may also have contractors assisting in various project
roles. The project team is shown in Attachment 1; the organizational structure is shown
in Figure 2-1.
2.1.2

Permitting Staff

The Project Permitting Manager will be responsible for all permitting activities on the
project. Conceptual and preliminary environmental and air permitting for SPP has been
performed by the environmental professionals at Hoefler Consulting Group in
Anchorage, Alaska under the direction of Chugachs Environmental Manager. Final
project permitting services will be bid as part of the OE contract. The OE will provide
engineering services and preliminary design technical documents to support permitting
work for the project.
2.1.3

Preliminary Engineering & Construction Management Staff

The Owners Engineer (OE) Project Manager will be responsible for the activities
performed by the engineering firm providing OE services. The OE Project Manager will
be supported by an Assistant Project Manager located in the field to work alongside

Chugach Electric Association

Page 9 of 34

December 12, 2008

Deleted: Both
Deleted: SCPP
Deleted: will be

SPP Project Execution Plan

Deleted: SCPP

Chugach Electrics Project Manager and to represent the OE in Chugach Electrics


offices.
The OE Project Engineering Manager will oversee the day to day activities in the design
office of the owners engineering firm and he will report directly to the OE Project
Manager. Reporting to the OE Project Engineering Manager will be discipline
engineering leads, including OE Project Engineer Civil/Structural, OE Project Engineer
Mechanical, OE Project Engineer Electrical, OE Project Engineer Controls, and OE
Project Engineer Chemical.
2.1.4

Deleted: primary

Engineering & Construction Staff

Design engineering will be awarded to either the Owners Engineer as an extension of the
OE contract, or it may be put to bid at the direction of the Project Manager with guidance
from the Operations Committee. The ability to assign this scope of work to the OE will
be established in the OE contract but, due to the large value of this contract, the
assignment may only be accomplished with approval from the Chugach Board of
Directors in accordance with Chugach policy. Chugach will reserve the right to bid the
design engineering scope for any reason. For this reason the OE Project Manager may
become the Engineering Manager for the project. Alternatively the Engineering Manager
will be assigned by the successful bidder of the design work.
Construction will be performed by an Construction Contractor under the direction of a
Construction Manager. .
The Construction Manager will have a construction
management team led by a Project Field Manager who will likely have direct reports
including a Construction Manager, Controls Manager, Engineering/Start-up Manager,
Lead Field Engineer, Quality Control Manager, and Safety/Health Manager. Chugachs
Project Manager, the OE Assistant Project Manager, and OE Project Safety Engineer will
work closely with each member of the Construction Contractors construction
management team.

Deleted: EPC
Deleted: the
Deleted: EPC Project Director
Deleted: EPC Project Director

Deleted: EPC

The OE Assistant Project Manager will have field engineers for various periods during
construction.
The Field Civil/Structural Engineer will be on-site during site
development, installing underground utilities, installing foundations, and steel erection.
The Field Electrical Engineer will be on-site once electrical wiring and components are
being installed, and the Field Mechanical Engineer will support equipment and piping
installation throughout the plant.
Once the Construction Contractor begins start-up and commissioning activities, the Startup Commissioning Engineer from the OEs staff will be present to represent Chugach
Electric in coordination with the Chugach Startup Manager.
2.1.5

Quality Assurance Staff

The Project Quality Plan (PQP) will be developed and implemented by the OE Project
QA/QC Engineer under supervision of the OE Project Manager. The Quality

Chugach Electric Association

Page 10 of 34

December 12, 2008

Deleted: EPC

SPP Project Execution Plan

Management System (QMS) standards will be developed by the OE staff and the
Chugach Project Manager.
2.1.6

Safety Staff

The site safety program will be administered by the OE Project Safety Engineer, who will
advise the Chugach Electric Project Manager and the OE Assistant Project Manager
whenever site personnel and construction workers are not following the requirements of
the program, especially as they relate to OSHA safety regulations.
The Chugach Project Manager will work closely with the Chugach Safety Manager to
ensure that all company policies are followed while contractors are on site.
2.1.7

Project Controls Staff

The Chugach Project Controls Engineer will be responsible for overall project cost
control and high level scheduling to coordinate efforts of the Owners Engineer and other
aspects of the project, such as engineering and construction of the substation. The
Chugach Project Controls Engineer will work in close cooperation with the OE Project
Controls Manager.
The OE Project Controls Manager will be responsible for overseeing and monitoring
project planning, scheduling, and cost control, and will report directly to the OE Project
Manager.
2.1.8

Materials Contracting & Procurement Staff

Project procurement control is essential. Completing a project on time and within budget
requires careful attention to materials contracting and procurement activities. Detailed
engineering design depends on the prompt selection of equipment and schedule certainty
relies on timely material purchase orders and subcontract selection. Continued support
after contract award includes control and monitoring of costs.
Chugach internal materials contracting and procurement will be managed the Chugach
Electric Purchasing Department. The OE Project Manager will be responsible for
development of major equipment materials specifications, which will be supporting
documentation for the Requests for Proposal (RFPs) using the normal Chugach bidding
procedure.
Contract management for major equipment purchases and major contracts (Owners
Engineer and EPC contracts, in particular) will be negotiated by a Chugach team
comprised of the Chugach Project Manager, the Chugach Purchasing Manager, the
projects attorney, and a Subject Matter Expert (SME) selected based on relevant
qualifications. The Project Controls Engineer will assist with negotiation of project
contracts and ensure all contracts conform to the RFP prior to submission to the
Purchasing Department for final review and processing.

Chugach Electric Association

Page 11 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

The OE Project Procurement Specialist will be responsible for overseeing and monitoring
project materials contracting and procurement activities assigned to the Owners
Engineer, and will report directly to the OE Project Manager.

Chugach Electric Association

Page 12 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Chugach
Program Manager

Chugach
Project Manager

Chugach
Site Manager

Chugach Project
Controls Engineer

Chugach
Environmental
Manager

Engineering
Manager

OE Project
Manager

Chugach
Startup Manager

Chugach
Permiting Manager

OE Assistant
Project Manager
(On Site Liaison)

OE Project Safety
Engineer

Construction
Manager

OE Project
Support Assistant

OE Project
Controls Manager

OE Project QA/QC
Engineer

OE Project
Engineering
Manager

OE Project
Procurement
Specialist

OE Project Cost
Control Engineer

OE Project
Engineer (Civil/
Structual)

OE Field Electrical
Engineer

OE Project
Scheduler

OE Project
Engineer
(Electrical)

OE Field
Mechanical
Engineer

OE Project
Engineer
(Mechanical)

OE Field Civil/
Structural
Engineer

OE Project
Engineer
(Chemical)

OE Start-up
Commissioning
Engineer

OE Project
Engineer
(Controls)

Figure 2-1. Project Staffing

Chugach Electric Association

Page 13 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

PROJECT MANAGEMENT

3.1
3.1.1

Communications Management
Document Control

Chugach Electric will accept the OEs standard document filing and numbering system to
maintain organization of OE submittals. This system will be used to identify and file OE
project documents. The standard document filing and numbering system may be adjusted
for project requirements, as mutually agreed between Chugach Electric and the OE
Project Manager. The OE will manage formal communications with the EPC contractor.
Chugach Electrics Project Manager, the OE Project Manager, the OE Assistant Project
Manager, and the OE Project Engineering Manager shall ensure that all project
documents are properly numbered and filed. All OE project documents shall be
identified by the OEs standard file number. Chugach may adopt the OEs system to
organize and track internal project documentation once it is available for review.
The OE Project Manager shall ensure that a review of the projects official file system,
process, and procedures is performed quarterly and that Chugach Electrics Project
Manager shall be notified of the results of the review.
The modes of communication to be used on the project are for both team members
located in Alaska and in the OEs primary design office. Instructions on letterhead usage,
correspondence numbering, handling of meeting notes, phone calls, e-mail, and the
Project Correspondence Distribution Matrix are to be documented in a Project
Instructions Manual. The OE Project Support Assistant shall ensure effective and
consistent record and information sharing between various project groups and Chugach
Electric. The OE Project Support Assistant shall ensure that official distribution and
filing of key project information will be provided in accordance with established
interfaces and lines of communication protocol as outlined in a yet to be developed
communications procedure.
Project documentation submitted to Chugach will be stored in a protected network filing
system, which is available to the Chugach Engineering Support department. OE drawing
packages will be entered into the Meridian Document Management System when formal
internal reviews are required, and these will be cross referenced to the Chugach standard
document naming convention. Ultimately all project documentation subject to revision
control will reside in Meridian. Those packages not subject to future revision (e.g.
quality documentation required at equipment purchases) will be entered in Chugachs
Laserfiche document management system.
3.1.2

Owner Representation Plan

The Chugach Electric Program Manager will make monthly project status presentations
to the Operations Committee created by the Participation Agreement between Chugach
and ML&P.
Chugach Electric Association

Page 14 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

The Project Manager will provide the basis for these reports through consistent reporting
from the Chugach Project Controls Engineer. Support will be received by the OE
Assistant Project Manager and the Project Permitting Manager along with other key
members of the project management team as is necessary to explain progress and/or
issues with design, schedule, procurement, permitting/licensing, construction, safety, and
project financials.
The meetings will be held in Chugach Electrics offices on the second Tuesday of every
month and will be limited to a one-half day meeting. The agenda for each meeting will
be issued to the Operations Committee members on the day prior to the meeting. Each
meeting will be followed by a tour of the facility to provide an overview of the progress
of the project.
3.2

Project Controls (Scheduling & Cost Control)

Chugach will internally develop, maintain, and implement a logic-driven schedule for the
project management team to confirm the requirements of the overall project are being
met. This project schedule will integrate project activities of the OE, the Engineering
Contractor, the Construction Contractor, and various Chugach departments at a high level
with associated Chugach projects and activities by the Chugach Project Controls
Engineer.
The successful completion of SPP on time and within budget requires carrying out the
project in accordance with a well developed plan. Chugach Electrics objective is to
implement a cost effective management tool that provides timely and accurate reporting
of actual project costs against the project budget and actual project progress against the
project schedule, thereby facilitating the management of project cost and schedule risks
and helping to minimize disputes. It should provide the necessary information needed to
quickly identify and effectively address and resolve problems as they arise.

Deleted: EPC
Deleted: c

Deleted: SCPP

Cost control is an integral part of successful project performance. The necessary


elements of a cost control system include accurate budget development, cost reporting/
forecasting, cost tracking, and cash flow development. By implementing these practices,
the lowest cost project can be achieved.
3.2.1

Scheduling

Three levels of schedules will be developed over the course of the project with increasing
amount of detail, as follows:

Level I Project Milestone Schedule The Level I schedule shall include the most
significant events in the project and planned dates for the accomplishment of
each. This will be developed at the beginning of the project by the OE Project
Scheduler and maintained by the Chugach Project Controls Engineer.

Chugach Electric Association

Page 15 of 34

December 12, 2008

Deleted: and is

SPP Project Execution Plan

3.2.2

Summary Schedule The Summary Schedule (sometimes referred to as a Level II


schedule) is a time sequence network of summary activities and their associated
planned dates. It is developed by the OE Project Scheduler by summarizing (i.e.,
rolling up) the Level III schedule and provides an overview of all phases of the
project for periodic Chugach Electrics corporate management and the SPP
Partners. This Level II schedule will be incorporated into the schedule
maintained by the Chugach Project Controls Engineer, which also tracks internal
projects related to the construction of the power plant.
Level III Control Schedule (CS) The Level III schedule will be prepared by the
OE Project Scheduler utilizing the precedence critical path method covering all
phases of the project and incorporating milestones and other key events defined in
the Level I schedule. Activities included in the CS cover the permitting,
conceptual and detailed design, procurement, construction, and start-up.
Interfaces between all activities are included which assures integration of all
phases of the project. The construction and start-up portions of the CS will be
developed in sufficient detail to logically complete the project and to focus
engineering and procurement with early need dates. The CS will be utilized by
the project team to monitor and analyze construction and start-up activities and
progress of the Engineering and Construction Contractors.

Deleted: SCPP

Deleted: SCPP

Deleted: EPC

Estimating

The most recent estimated total project cost for SPP was developed by Black & Veatch in
May 2008. The estimate is an order of magnitude capital cost. It was derived by
escalating a cost estimate that was developed two years earlier based on a plant design
that was conceptual. Going forward, a new capital cost estimate will be prepared by the
OE, once this engineering firm is retained under contract. The estimate will be based
upon preliminary engineering of a 3x1 combined cycle plant using GE LM6000PF-25
DLE combustion turbines and will include simple cycle bypass stacks and black start
generation. It will be based on a well defined site plot plan, general arrangement
drawings, process flow diagrams, electric one-line, detailed equipment list, award pricing
for the combustion turbine generators, OEM budgetary prices for the steam turbine
generator, HRSGs, and fin-fan cooling heat rejection system, and takeoffs for the
balance-of-plant.

Deleted: SCPP

The project cost estimate will be updated with actual award procurements and
construction proposal pricing that are received as the project progresses. The number of
unknowns will be reduced and the accuracy of the estimate will therefore be improved.
3.2.3

Budgeting

The project cost estimate will be approved by Chugach Electric and the SPP Participants
and become the project budget. This project cost estimate will serve as the starting point
for the project cost report. Normal Chugach budgeting procedures will be followed in
accordance with Chugach Board Policy.
3.2.4

Forecasting

Chugach Electric Association

Page 16 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

The project will manage cost changes through Contract Change Orders. The purpose of
these documents will be to describe the change and impacts to the schedule and cost.
Chugach Electric will need to approve the Contract Change Orders prior to the work
being performed. The OEs Project Controls group will manage the process and maintain
logs and files for the changes. Forecasts of cost to complete will be derived from
factoring the changes into the project cost estimate and thus reported on a monthly basis.
3.2.5

Progress Assessment for Vendor Pay Requests

Project Schedule will be analyzed on a monthly basis and deviation and analysis reports
will be prepared by the OEs Project Controls group with support from the project team.
Other reports will be developed as required and tailored specifically for the projects
needs to assess actual progress by the Contractors. Progress payments will be made in
accordance with the terms and conditions set forth in the relevant contract.
3.2.6

Deleted: The EPC Contractors

Deleted: EPC
Deleted: EPC

Reporting

Monthly reports will be produced with a written summary prepared by the OEs Project
Controls group that indicates float analysis, problem areas, trends, and risks for Chugach
Electrics Project Manager and project team to review. For critical activities that are
trending 20 days or more behind, the EPC Contractor will be required to develop
recovery plans to ensure the project completion date is not impacted.
3.3
3.3.1

Contract Management
Compliance

A compliance plan will be generated for each major contract to ensure each party has
achieved the agreed requirements. This plan will be reviewed by the Chugach Project
Controls Engineer periodically, or as required by milestones achievement on each
contract.
3.3.2

Contractor Interface

Since the project involves a scope split of the permitting, preliminary and Owners
engineering, and construction, a detailed division of responsibility (DOR) document shall
be prepared, communicated, maintained, finalized, and implemented.
Review,
expansion, and refinement of the DOR will likely be required during project execution.
The Chugach Project Manager, with the support the OE Project Manager and the OE
Assistant Project Manager, will be responsible for revising the scope of services as
required throughout the project. The OE Project Manager and/or the OE Assistant
Project Manager shall ensure that a recorded history of the changes to the scope of
services initiated by others is maintained. The OE Project Manager and/or the OE
Assistant Project Manager shall also ensure that the interface information and data
required from Chugach Electric and that influence the performance of contracted work
with the permitting company, the Owners Engineer, and the Construction Contractor are
obtained timely and efficiently. A list of the key information and data required from

Chugach Electric Association

Page 17 of 34

December 12, 2008

Deleted: by an EPC contractor

Deleted: EPC
Deleted: c

SPP Project Execution Plan

Deleted: SCPP

Chugach Electric shall be developed for items that will have the most influence on the
successful and timely performance of services by each contractor.
The interface coordination list shall be initially developed within 60 days of the OEs
notice to proceed. Additions shall be made as new key interfaces are identified. The
interface coordination list shall be in tabular format and indicate, as a minimum, the
following:

Transmittal number of applicable correspondence.


Transmittal subject.
Date requested.
Status.

This list will be reviewed from time-to-time in a weekly coordination conference


telephone call with Chugach Electric to ensure information is made available in a timely
manner.
3.4
3.4.1

Risk Management
Risk Management Plans

Risk management for the project will be the responsibility of all Chugach project
management staff. It is expected that lessons learned from previous projects and
excellent planning will help avoid many of the risks present on this type of project.
Selection of appropriate expertise, based on knowledge and experience, will be
fundamental in addition to the requirement of good communications between the Owner
and each contractor.
Many types of risk exist for the project, including business, commercial, permitting,
contracting, etc. The most tangible is the risk of loss which may occur at any time, but
especially during procurement and construction of the project. This risk of loss is
covered through the various forms of property insurance carried by Chugach. For all
other forms of risk, full risk management plans will be developed to identify where risks
may exist, the cause of such risk, the effect, and a mitigation plan for those risks which
are considered either highly probably or costly.
3.4.2

Quality Assurance

SPPs quality system requirements are to be documented in a Project Quality Plan (PQP),
and the PQP shall be developed and implemented by the Project QA/QC Engineer.
Chugach Electrics Project Manager shall ensure that a PQP is developed, maintained,
communicated, and implemented for the project.

Deleted: SCPP

The PQP is to be composed of two components. The first component describes the SPP
quality system, the projects quality objective, division of responsibilities, and methods to
be used for each part of the project. The other PQP component is the identification of
detailed procedures and work instructions to be implemented.

Deleted: SCPP

Chugach Electric Association

Page 18 of 34

December 12, 2008

SPP Project Execution Plan

The PQP defines the applicable Quality Management System (QMS) standards to be used
during the project execution stage for both the Engineering and the Construction
Contractor. The plan will cover the following:

Applicable Engineering and Construction Contractor QMS standards.

Applicable Chugach Electric project-specific standards and requirements (if any).

Planned participation level of the OEs Quality Management Services Department


in supplier/subcontractor evaluation either by direct visits or desk record review,
assisting in supplier selection using past history data, direct inspection of
suppliers and subcontractors, supplier/subcontractor quality auditing, and
involvement in the review cycle of the defined process, including contract, design
and purchase order reviews, and incorporation of requirements.

Assist Chugach Electric in the creation of the project supplier Inspection Test
Plan (ITP), if requested.

Project internal audits.

Project design and drawing verification process.

Quality records management.

Deleted: OE
Deleted: EPC
Deleted: OE
Deleted: EPC

The Project Quality Plan shall be included in the Project Instructions Manual.
3.4.3

Deleted: SCPP

Site Safety & Loss Control

The protection of life and property, prevention of accidents, and maintenance of a safe
and healthy work environment for site personnel and visitors are needed for the project to
be successful. A site safety program will be established and it will be defined and
documented in a Project Safety and Health Manual. It shall be administered by the
Project Safety Engineer, who will advise the Chugach Electric Project Manager and the
OE Assistant Project Manager whenever site personnel and construction workers are not
following the requirements of the manual or abiding by OSHA safety regulations.
Chugach Electric, or its OE acting on behalf of Chugach Electric, shall be responsible for
the following activities:

Administer the site safety program as documented in the Project Safety and
Health Manual.

Initiate reports and maintain records as required by Chugach Electrics insurers


and OSHA regulations.

Chugach Electric Association

Page 19 of 34

December 12, 2008

SPP Project Execution Plan

Monitor the enforcement of all safety rules and regulations on the project,
including but not limited to, the following:
- Monitoring contractor/subcontractor enforcement of personnel wearing
appropriate personnel protective equipment (PPE).
- Assisting contractor/subcontractors in posting safety signs for hazardous
locations.
- Monitoring contractor/subcontractor performance to ensure compliance with
OSHA standards.
- Monitoring contractor/subcontractor working areas and note any violations of
safety regulations.

Maintain surveillance of jobsite working practices and conditions, including


levels of airborne contaminants, noise exposure, and sanitary facilities.

Organize and oversee a Supervisory Safety Committee consisting of the Chugach


Electric Project Manager, OE Assistant Project Manager, Project Safety Engineer,
EPC Field Manager, and the EPC Construction Manager to evaluate the
performance of the safety program. This committee shall meet often on a regular
basis.

Maintain liaison with contractor/subcontractors on ordering, handling, and


controlling hazardous materials.

Assist in claim investigations; log claims.

Conduct safety and site loss orientation meetings for new site personnel and
construction workers.

All contractor/subcontractor workers shall be responsible for compliance with all federal
and state laws related to their work as evidenced by a safety plan coordinated with the
Project Safety and Health Manual. The Engineering and Construction Contractors and all
subcontractors shall implement the following activities in connection with their work in
cooperation with Chugach Electric, the OE, and other subcontractors.

Initiate and maintain procedures that are necessary to comply with OSHA
regulations.

Provide frequent and regular inspections of the jobsite, materials, and equipment
by competent persons.

Determine that their employees comply with established first aid and medical
attention procedures.

Chugach Electric Association

Page 20 of 34

December 12, 2008

Deleted: SCPP

Deleted: EPC

SPP Project Execution Plan

Be responsible for the distribution of potable drinking water, the provision of


sanitary toilet facilities for its employees, and furnish required PPE, safety
warning devices, signs, portable fire extinguishers, etc.

Determine that equipment used on the SPP meets OSHA regulations.

Be responsible for the attendance of all new employees to safety and site loss
orientation meetings.

Issue safety instruction with all work assignments, supervise weekly safety
meetings, and ensure all craft employees are familiar with OSHA regulations.

3.4.4

Compliance (Environmental & Other)

Compliance with federal, state, and local environmental laws and other regulations will
be monitored, overseen, and managed by Chugach Electrics project management team
under the direction of Chugach Electrics Project Manager. The Project Permitting
Manager will take the lead role for ensuring all permits and licenses are identified,
applications prepared and submitted, and appropriate and timely approvals by governing
authorities are obtained. The OE Project Manager and OE Assistant Project Manager
along with their designees will provide support as necessary to execute known
commitments and track emerging issues.
The Chugach Permitting Manager will ensure all environmental compliance requirements
are addressed in relevant contracts. This requirements will be reviewed with each
contractor upon mobilization to site. He will also monitor compliance requirements in
association with the Chugach Environmental Engineering Manager throughout the
project.
At the outset of the project, regulatory permitting and licensing requirements will be
addressed, including the identification of environmental regulatory requirements and the
establishment and implementation of a comprehensive licensing strategy. Services
provided by professionals assigned to ensure success of the compliance aspects of the
project will also include conducting environmental field studies (such as community
noise surveys, ambient air quality monitoring, visibility impairment, etc.),
characterization, modeling and analysis of impacts, preparation of permit applications for
review by regulatory agencies and the public, agency negotiation support, and expert
witness testimony.

Chugach Electric Association

Page 21 of 34

December 12, 2008

Deleted: SCPP

Deleted: SCPP

SPP Project Execution Plan

PROJECT PHASES

SPP will be executed under the direction of the Chugach Electric Project Manager and
with the organization established by the Senior Vice President, Power Supply. The Sr.
VP Power Supply is the ultimate responsible authority and will act as the Program
Manager to coordinate activities of various Chugach departments to achieve successful
operation of the new plant. SPP will be implemented in accordance with this Project
Execution Plan and the Project Instruction Manual and within limits and directions
provided in the Project Quality Plan and the Project Safety and Health Manual. The
project will be implemented in multiple phases as described below.
4.1

Deleted: SCPP

Study & Planning

Conceptual studies of the new power plant were initiated in 2004. Work achieved to date
includes:
Economic assessment and cost estimates of the plant with various assumptions for
gas turbine selection (updated three times since 2006, most recently in May
2008).
Siting work has progressed significantly:
o Joint Siting Study performed to identify the most appropriate location of
the plant, including an assessment of infrastructure to support the project
features.
o New site underground facilities located and properly identified on existing
Chugach drawings.
o Selection and negotiation of terms and conditions for the purchase of land
to be used for laydown and storage of displaced Chugach assets.
o Site preparation is been performed; laydown areas have been identified in
terms of lots.
Conceptual engineering performed:
o Identification of plant design criteria.
o Layout drawing of 3x1 combined cycle power plant on the selected
Chugach property.
Major contracts have been anticipated or, in the case of gas turbines, completed:
o Turbine Purchase Agreement (TPA) negotiated with favorable terms and
conditions for three (3) LM6000PF units, and a spare engine, with General
Electric.
o Contractual Service Agreement (CSA) negotiated with favorable terms
and conditions with General Electric (Unplanned-Uncapped concept
was a first for GE).
o Draft Request for Proposal (RFP) for the Owners Engineer (OE) contract.
o Draft RFP for the Engineer, Procure, and Construct (EPC) contract.
Permitting Plan (Level I) developed and initial work begun:
o Conceptual plant design was reviewed with each Municipality of
Anchorage (MOA) permitting agencies in 2005.

Chugach Electric Association

Page 22 of 34

December 12, 2008

Deleted: SCPP

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

o NSPS notification submitted as required by the Alaska Department of


Environmental Conservation (ADEC).
o FAA Form 7460 submitted and re-submitted as required in November
2008. Clarified FAA position as favorable for selected project site.
Preliminary engineering steps have been taken to reduce uncertainty in EPC bid
estimates:
o Geotech work was performed on the new site by Black & Veatch; report is
due in December 2008.
o A waste heat utilization study has been bid and an award is expected in
December 2008.
This initial phase of the project will come to a close at the end of 2008. The project
accounts will be brought over from the study accounts into the capital account codes
and preliminary engineering will continue first with bids for the Owners Engineer
contract.
4.2

Conceptual Engineering/Permitting

At the outset of the project, the permitting consultant (Hoefler Consulting Group or
HCG) addressed project requirements for regulatory permitting and licensing,
including the identification of air and non-air environmental regulatory requirements
and the establishment and implementation of a comprehensive licensing strategy. The air
quality scientists and engineers with the permitting consultant shall perform
meteorological/climatological assessments associated with air quality permitting, develop
air dispersion models, and prepare air quality permit applications for construction
permits.
The OE for SPP will work with the permitting consultant to provide the engineering data
needed to support permitting. The OE will also answer technical questions from
applicable regulatory agencies and participate in meetings with applicable agencies
during the preliminary design development activities described in Section 4.3 below.
Most of the plant conceptual design and project specifications needed for the
environmental permitting process will be produced during these project development
activities.
The OE typically provides the following engineering services and conceptual design
technical documents to support the preliminary environmental permitting work for a project.

Site Arrangement Drawing.


Plant Arrangement Drawing.
Heat Balance Diagram(s).
Process Diagrams.
Preliminary Water Balance.
Electrical Single Line Drawing.
Controls Architecture Drawing Depicting the Layout of the Overall Plant Control
System.

Chugach Electric Association

Page 23 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

Equipment List Denoting all Major Project Mechanical, Electrical, and Controls
Equipment.
Plant Descriptions
Other technical input for the permitting process.

The permitting consultant will develop a list of federal, state, and local non-air
environmental permits that may be required to construct and operate Chugach Electrics
combined cycle plant (such as Construction/Operation Spill Prevention Control &
Countermeasure Plans, Risk Management Plan, Threatened & Endangered Species,
NPDES Hydrostatic Test Discharge Permit, etc.). The list of non-air permits shall be
presented in a matrix format that would include the following for each permit:

Permit Title
Agency
Regulated Activity
Required Phase of Project
Expected Duration of Agency Review
Applicability to Project
Assumptions
Party Responsible for Obtaining Permit

The permitting consultant will prepare a permitting schedule fragnet that can be input
into the overall project schedule.
In support of permitting and preliminary engineering, the facility noise assessment
previously performed for Chugach Electric by Black & Veatch in August 2006 shall be
revisited. The updated assessment shall include an updated review of applicable noise
regulations and an evaluation of potential facility noise emissions. The following items
outline the specific activities that will be performed.

Regulatory Review: A thorough review of the applicable local noise regulations


will be conducted. The regulatory review will involve reviewing the regulations
and ordinances of all local jurisdictions applicable to the facility including the
City of Anchorage. Because there is a residential area northeast of the SPP site in
the vicinity of Dorbrandt Street, the combined cycle facility sound levels in this
area will likely have to comply with the residential nighttime limit of 50 dBA
(Chapter 15.70 of the Anchorage Municipal Charter Code and Regulations).
Other limits may apply to the facility as well.
Project Sound Level Design Criteria: Sound level design criteria shall be
established for the proposed facility. The overall criteria shall be selected based
on complying with the applicable local noise regulations and minimizing the
noise impact on neighboring noise-sensitive receptors (e.g. residences, schools,
churches, and hospitals), as applicable. The criteria for noise impacts on noisesensitive receptors will be based on industry guidelines and standards including,

Chugach Electric Association

Page 24 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Deleted: SCPP

but not limited to, the U.S. Environmental Protection Agency (EPA) as well as
ambient sound level survey results.

Project Noise Modeling: Noise modeling shall be conducted to estimate the


potential noise emissions associated with the proposed combined cycle power
plant during normal operation. The facility noise emissions shall be modeled in
accordance with ISO 9613 using noise prediction software (Cadna/A version
3.6.119). Noise modeling will be conducted to identify the equipment and
mitigation requirements necessary to support compliance with the applicable
regulations and minimize impacts on sensitive receptors. The project noise
modeling will include the development of noise contour plots for normal
operation.

Noise Mitigation Analysis: Noise mitigation strategies shall be developed and


evaluated to meet the project design criteria, as necessary. The mitigation
strategies shall be coordinated directly with the OE to confirm performance and
constructability impacts are acceptable.

4.3

Preliminary Engineering

The OE will prepare a preliminary design for the project, which will include
consideration of maintainability, efficiency, availability, reliability, constructability,
operability, and safety. The project design criteria will be developed to include required
considerations for the project located in a high seismic area.

Plant Optimization Studies: The OE will conduct specific plant optimization


studies to support the preparation of the site arrangement, project design basis,
and EPC bid specification. Currently known optimization studies to be performed
include:
- Cycle Optimization: Previous performance runs for SPP have been centered
on the average annual ambient temperature of 36F for Anchorage.
- Heat Rejection System Optimization: Previous performance runs for SPP have
assumed the use of air cooled condensers instead of actually modeling the wet
surface condenser used in conjunction with a fin-fan cooler. Closed cycle
cooling water will be factored into the sizing of the fin-fan cooler. Rejected
heat is expected to be used for gas turbine inlet heating.

Plant Performance:
developed:

The following plant performance parameters will be

Design criteria: Basic plant criteria, applicable design codes and predicted or
expected performance parameters (including emissions) will be determined.

Heat Balance Diagrams: Heat balance diagrams for the selected technology
will be developed at maximum load at three different site ambient

Chugach Electric Association

Page 25 of 34

December 12, 2008

Deleted: s

Deleted: SCPP
Deleted: SCPP

SPP Project Execution Plan

temperatures (extreme high, extreme low, and average annual temperatures).


Two additional heat balance cases to cover reduced load conditions will also
be developed. Heat balance data sheets which further define the heat cycle
information will be provided for each balance.
-

Water Mass Balance Diagrams: A plant water mass balance diagram will be
prepared to show the plant water usage for average and maximum operation
conditions. Major plant and equipment water usage will be represented on the
diagrams from the sources of water to the site, treatment facilities, waste
streams, evaporation, and any other usage of water. The usage will be shown
in gallons per minute.

Plant Configuration and System Descriptions: The preliminary design will


include brief descriptions of major plant systems. The descriptions will address
the following sufficiently to define the design requirements for the facility to an
EPC Contractor:
Combustion Turbine Generator and auxiliaries
Steam Turbine Generator and auxiliaries
Heat Recovery Steam Generators and auxiliaries
Fuel supply system
Air emissions control
Heat rejection system
Water supply and treatment systems
Compressed air system
Fire protection system
Plant electrical systems (transformers, switchgear, motor control centers,
uninterruptible power supply, grounding, lighting, communications) up to an
including the high voltage side of the generator step-up transformers
- Controls and instrumentation
- Civil and structural works
- Wastewater collection and treatment system.
-

The EPC Contractor will be required to expand and update these system
descriptions based on the final detailed design and the equipment and systems
actually purchased for the project.

Develop Preliminary Site Arrangement: The OE will prepare a site arrangement


for the IGT site, which will identify the location and layout of major structures
and facilities, the natural gas fuel supply equipment, water supply facilities,
storage tanks, administration building, warehouses, and access roads. This layout
drawing will illustrate the general area requirements, orientation, and relative
positioning of the power plant major equipment and facilities.

Chugach Electric Association

Page 26 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Construction Logistics and Infrastructure Evaluation: The constructability


review and infrastructure evaluation will include equipment access, material laydown area, transportation access, heavy haul access, interface with the fuel
supply, interface with water supply, and completeness of furnished site data for
the selected plant site. In addition the following aspects will also be reviewed:
-

Deleted: SCPP

Lay-down areas and staging areas


Construction utilities, power, water, etc.
Labor availability, productivity, rates.

Develop Steam Turbine Purchase Specifications: The OE will prepare Technical


Specifications which will be incorporated into an RFP for purchase of the steam
turbine. These specifications will be based on the design work performed to date.
This will be done to address the long lead time associated with this piece of
equipment.

Formatted: Bullets and


Numbering

Not included in the current OE scope of services is the preliminary design of the 138 kV
IGT substation and any required interconnecting transmission lines.
The OE shall prepare separate Technical Specifications for the design and construction of
the new combined cycle power station. The Technical Specification shall be written in
sufficient detail to ensure that SPP will be a power plant of high-quality, with the desired
functionality at a reasonable cost. A performance-based specification typically identifies
the desired plant desired performance, generation technology, and high-level design
information (e.g., preliminary layout, configuration, and preferences regarding
redundancy and other critical Owner preferences).
4.4

Deleted: EPC
Deleted: SCPP

Design Engineering

Upon issuance of Limited Notice to Proceed (LNTP) to the selected Engineering


Contractor, activities that are required to establish the design in sufficient detail to
support the scheduled construction mobilization date and SPPs commercial operation
date (COD) will begin. During this stage of project development, the Engineering
Contractor will perform the following:

Define key major equipment supply and technical specifications.


Bid and negotiate with provisional equipment suppliers.
Develop and finalized the overall cycle design.
Incorporate Chugach Electric operations and maintenance (O&M) considerations
into the design basis.
Refine the project schedule and plans.

The Engineering Contractors design activities during the LNTP phase will likely
include:

Chugach Electric Association

Page 27 of 34

December 12, 2008

Deleted: EPC
Deleted: SCPP
Deleted: EPC
Deleted: c
Deleted: <#>Finalize the prime
EPC contract.
<#>Finalize price.

Deleted: EPC

SPP Project Execution Plan

Deleted: SCPP

Develop and publish system design specifications and obtain Chugach Electrics
concurrence with the concept, redundancy levels, and design criteria.
Develop piping and instrument diagrams (P&IDs).
Develop plant arrangement drawings.
Develop initial design to support purchase of provisional equipment (including
steam turbine-generator, HRSG, generator step-up transformers, and cycle heat
rejection system fin fan cooling system).

The Engineering Contractor will focus on development of specifications, securing bids,


and negotiating terms and conditions for provisional equipment. The intent for this
activity is to identify and negotiate contracts with provisional equipment suppliers to be
able to execute the contracts immediately upon Chugach Electrics issue of the Full
Notice to Proceed (FNTP).

Deleted: EPC

Detailed plant design will proceed during the LNTP phase in support of procurement
activities. Completion of design activities will also support early construction activities.
Listed below are some of the detailed engineering activities that will occur during the
pre-construction phase:

Site preparation drawings.


Preparation of P&IDs and system calculations.
One-line diagrams.
Control system architecture.
Plant arrangements.

The construction management staff of the Engineering Contractor will provide


constructability input on a regular basis as the design develops. This will include
sequencing, construction concepts, access, etc. Activities carried out in the LNTP phase
of the project will continue during the FNTP phase of the project. Work will be
prioritized in accordance with the project schedule to support the project mechanical
completion date.
Design engineering results in the finished designs, drawings, lists, and technical
specifications for procurement and construction. The system-engineering concept is
carried forward throughout the design engineering phase and is integrated with the
construction-by-area concept. Design is initiated with construction and plant start-up in
mind, thereby improving efficiencies, reducing contingencies, and minimizing cost and
schedule.
Other activities occurring during the pre-construction phase of the project, following
FNTP, include:
Procurement execution and implementation of materials management program.
Expediting of equipment and materials.
Quality assurance activities for equipment supply along with monitoring shop
fabrication.

Chugach Electric Association

Page 28 of 34

December 12, 2008

Deleted: EPC

SPP Project Execution Plan

4.5

Deleted: SCPP

Subcontract administration, including supplier pre-qualification, scheduling, and


post-award operational oversight.
Project controls establishment to plan and budget work; monitor and report
project costs and trends, and then measure project progress to ensure timely
completion of intermediate and final milestones.
Construction

Construction execution will be either by a direct-hire work model or subcontracted labor


model. The type of work model to be used will be as proposed by the selected EPC
Contractor and will be dependent upon the contractors working relationship with
subcontractors within the region and the availability of skilled craftsmen representing all
required disciplines.
Work expected to be contracted with subcontractors in the region follows:

Temporary facilities delivery, setup and demobilization (office complex, storage


units, warehouse, etc.)
Piling or drilled piers.
Pre-engineered metal buildings (the EPC Contractor will install foundations).
Field-erected tanks (the EPC Contractor will install foundations).
Fire protection.
Paint.
Insulation.
Specialty coatings and linings.
Roadway grading and paving.
Heavy-haul.
Concrete pumping.
Concrete testing.
Stress relief.
Radiography.
Boiler and pre-boiler chemical cleaning.
Transformer dress-out and oil fill.

The means, methods, and construction sequencing will be as proposed by the selected
Construction Contractor. Areas that the Construction Contractor shall address in his
proposal shall include the following:

Construction mobilization/logistics.
Personnel assignments/Working hours.
Weather impacts and considerations.
Permits and regulations.
Access to construction site.
Temporary facilities and laydown space utilization.
Construction utilities requirements.
Construction equipment and tools.
Construction warehouse space.

Chugach Electric Association

Page 29 of 34

December 12, 2008

Deleted: EPC
Deleted: EPC

SPP Project Execution Plan

4.6

Heavy-haul.
Cost control.
Project scheduling.
Construction management staffing.
Medical services.
Security services.
Construction quality.
Construction testing.
Chemical cleaning and steam blow.
Commissioning and plant turnover.
Initial operation.
Training.
Performance testing.
Warranty administration and project close-out.
Startup and Commissioning

The planning for a successful start-up program begins during the detailed design and
procurement phase of the project. For example, P&IDs will be reviewed so that the
quantity and location of isolation valves to facilitate start-up by subsystems are
adequately incorporated. A detailed start-up schedule will be developed so that all startup and commissioning activities and required testing procedures are completed in support
of the commercial operation date.
Early in the project, a list of all of the turnover packages, description of the scope of each
package, and the required construction completion date and turnover date will be
determined. Two to three weeks prior to the scheduled construction turnover of a
particular package, a joint walkdown between construction, start-up, and Chugach
Electrics personnel will be conducted.
Outstanding construction work and/or
deficiencies will be identified and recorded on a Master Punchlist. These items will be
prioritized, assigned to the craft or subcontractor for resolution, a date established for
resolution, and documentation prepared to show that a particular issue has been
addressed.
During the construction completion phase, the construction team will install and erect
equipment in accordance with project design and specifications. Certain tests will be
completed during this phase and that are within Constructions scope of responsibility.
These tests will include, but are not limited to, the following:

Hydrostatic, pneumatic, initial service leak tests.


Nondestructive testing of field welds.
Wiring integrity (hi-pot and megger tests) and continuity checks.
Initial equipment alignment and adjustment.
Initial lubrication of equipment.

Chugach Electric Association

Page 30 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Once all Constructions activities for a subsystem are complete, the Construction
Contractors Turnover Coordinator will turn over the subsystem package to the Start-up
Group for checkout. When a subsystem is accepted by the Start-up Group, boundary
valves, electrical switchgear, and major components of the subsystem are tagged to
indicate that the system is under the Start-up Groups control. At this point, all work on
the subsystem must be authorized by the Start-up Manager.

Deleted: SCPP

Deleted: EPC

The Start-up Manager directs the checkout of each system and the start-up team, under
the direction of responsible start-up engineers, flushes systems as required, performs loop
checks on control circuits, and functionally checks all equipment (some of which will
require vendor participation to preserve warranties). As a part of the operator training
program, the Start-up Manager will invite Chugach Electrics operators to participate in
the testing and initial operation of the subsystems. Once a subsystem package is tested
and the remaining exceptions, if any, are determined to be minor, the subsystem will be
put into initial operation under the direction of the responsible start-up engineer. The
start-up engineer will subsequently address any equipment malfunctions, determine if
construction involvement is required, and expedite resolution of any problems
encountered during the initial operation.
After the individual equipment is commissioned, the Start-up Group functionally tests
and tunes the various systems to demonstrate the plant is operative and safe. Start-up
personnel perform more complex commissioning tasks, involving multiple systems, prior
to total unit coordinated commissioning. Normal and off-normal operation is simulated
to verify that individual systems and multiple interacting systems will function properly.
After these systems are checked out in this manner, the unit undergoes coordinated
commissioning to check out coordination of controls and systems operation. Systematic
observations are made during coordinated commissioning to detect any possible problems
or out of specification operating conditions such as flows, temperatures, piping and
support interaction, thermal growth interferences, etc. Unit control logic is fine tuned at
this time.
The Start-up Group then conducts or coordinates performance tests, environmental
compliance testing, availability, and/or reliability as required to demonstrate that
contractual guarantees have been met. As a final step, the Start-up Group compiles all
testing and calibration data required to complete the turnover packages for release to
Chugach Electric.
4.6.1

Performance Testing

The overall objectives of Performance Testing will be to determine if the plant


performance guarantees for net plant electrical generating capacity as well as net plant
heat rate are met. The Construction Contractor will provide the necessary start-up and
commissioning support, as well as the necessary craft labor in support of these efforts.
The Construction Contractors activities associated with preparation for performance
testing include the following:

Chugach Electric Association

Page 31 of 34

December 12, 2008

Deleted: EPC
Deleted: EPC

SPP Project Execution Plan

Review and approve the detailed test plan and procedures (developed by the OE
and others) that will govern the conduct of the plant performance tests.
Provide and install all additional temporary instrumentation necessary to conduct
and record the results of the tests.
Manage calibration of instrumentation with the exception of the net power output
signal. Chugach Electrics meter is anticipated to be used for this measurement.
Ensure that the distributed control system is operational prior to commencing
tests.

The Engineering Contractor will have the overall responsibility for conducting the
performance tests and for directing operation of the unit during performance testing. The
responsibilities during and following the conclusion of the testing as included in the final
Engineering Contract may include:

4.7

Deleted: SCPP

Deleted: EPC

Deleted: EPC

Plant overall performance (output, heat rate, etc.)


Plant emissions
Noise tests
Individual component performance testing (CTG, HRSG, STG, Condenser, Cycle
Heat Rejection Fin-Fan Cooler)
Reliability run (7 days)
Demonstration tests.
Warranty Administration and Project Close-out Plan

The objectives of Warranty Administration and Project Close-out Plan are to provide
assurance that, if any warranty issues arise during the warranty period, they shall be
addressed in a timely manner in accordance with contract requirements. In addition, as
the project nears completion, the Project Close-out Plan addresses any remaining contract
obligations to see that they are completely fulfilled. The following warranty
administration and project close-out activities are required:

A Warranty Administrator will be designated by the Construction Contractor for


the duration of the contract warranty period. The Warranty Administrator will be
available throughout the warranty period to address all warranty issues.
Upon notification of a warranty issue, the Warranty Administrator will investigate
the root cause of the problem and identify the appropriate corrective action.
The Warranty Administrator will coordinate the performance of the warranty
work so that impact to plant operation is minimized.
The Warranty Administrator will coordinate the performance of warranty work by
original equipment manufacturers and suppliers to ensure that warranty issues are
addressed in a timely fashion.
Completion of documentation.
Completion of punchlist items.

Chugach Electrics Project Manager or his designee will be responsible for the following
regarding warranty and project close-out issues:

Chugach Electric Association

Page 32 of 34

December 12, 2008

Deleted: EPC

SPP Project Execution Plan

Notification regarding warranty issues in accordance with the contract.


Investigation of suspected warranty issues to exclude maintenance and/or
operational problems.
Administer and perform warranty work on Chugach Electric furnished equipment.

Chugach Electric Association

Page 33 of 34

December 12, 2008

Deleted: SCPP

SPP Project Execution Plan

Attachment 1
Project Team
Name

Title

Phone No. /
Cell No.

Paul Risse

Program Manager

907-762-4532

Dustin Highers

Project Manager

907-762-4775

E-mail Address

Company
Location

Owner Staff
paul_risse@
chugachelectric.com
dustin_highers@
chugachelectric.com

Site Manager
Peter Poray

Chugach
Chugach
Chugach

Permitting Manager

907-762-4788

peter_poray@
chugachelectric.com

Chugach

Project Controls Engineer


Mike Henrich

Startup Manager

907-762-4821

Kathryn Linn

Project Clerk

907-762-4547

Dan Mattson

Controls Engineer

907-762-4582

Mechanical Engineer

mike_henrich@
chugachelectric.com
kathryn_linn@
chugachelectric.com
dan_mattson@
chugachelectric.com

Chugach
Chugach
Chugach
Chugach

Contract Staff
OE Project Manager
OE Project Support Assistant
OE Assistant Project Manager
(On-Site)
OE Project Engineering Manager
OE Project Engineer Civil/Structural
OE Project Engineer Mechanical
OE Project Engineer
Control/Electrical
OE Project Engineer Chemical
OE Project Controls Manager
OE Project Cost Control Engineer
OE Project Scheduler
OE Project QA/QC Engineer
OE Project Safety Engineer
OE Project Procurement Specialist
OE Field Engineer Civil/Structural
OE Field Engineer Electrical
OE Field Engineer Mechanical
OE Start-up/Commissioning Engineer

Chugach Electric Association

Page 34 of 34

December 12, 2008

Deleted: SCPP