Topic:"Operating Expenses" in M03632

20 Q. WHAT HAVE YOU ASSUMED ABOUT OPERATING COSTS FOR SMALL WIND? 21 A. We have assumed operating costs of $1,642 in year one, including periodic major 22 maintenance. This is calculated as ¢1.63 per kWh, based primarily on information 23...

AI summary The respondent assumes operating costs for small wind at $1,642 in year one (¢1.63/kWh), based on CANWEA data, with inflation-based escalation.

29 Q. WHAT HAVE YOU ASSUMED ABOUT OPERATING COSTS FOR LARGE WIND? 30 A. We have assumed operating costs of $55,000 per year, including periodic major 31 maintenance. This is based on information provided by developers and manufacturers. 32...

AI summary Operating costs for large wind projects are assumed at $55,000 annually, including maintenance and $1,000 in administrative expenses, both adjusted for inflation. These figures are based on developer and manufacturer data.

27 Q. WHAT HAVE YOU ASSUMED ABOUT OPERATING COSTS FOR BIOMASS CHP? 28 A. Routine O&M costs were developed through discussions with operators of similar 29 biomass fired facilities in PEI and Ontario. The costs are substantially the same fo...

AI summary The respondent discusses assumptions made about operating costs for biomass CHP, noting that routine O&M costs were developed through discussions with operators in PEI and Ontario. Additional costs for CHP include larger boilers and steam turbine maintenance. Fuel usage assumptions are based on a boiler efficiency of 80% and current fuel prices provided by COMFIT stakeholders.

03-01-2011 Nov a S ia C OM FIT Mo del cot Win d ≤ 50 kW Ca sh Flo w W ork she Top et: Syn e E aps xhi bit I Exp ens es Fue l Co st 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M (1,6 42) (1,6 74) (1,7 06) (1,7 38) (1,7 72) (1,8 06) (1,8 41) (...

AI summary The document contains a table with expense details for a Nova Scotia FIT model, including fuel cost, O&M, site maintenance, G&A insurance, land lease, and other expenses over time. The data shows increasing O&M and G&A insurance costs, while fuel cost and other expenses remain at zero.

Total Nov a S ia C OM FIT Mod el cot Lar Win d C ge ash Flo w W ork she et: Top Syn aps e E xhi bit J Expe nses Fuel Cos t 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M (55,0 00) (56, 056) (57, 132) (58, 229) (59, 347) (60, 487) (61, 648) (6...

AI summary The document presents a table showing expenses, specifically fuel costs and operations and maintenance (O&M) costs, for various years. O&M costs are listed in negative numbers, indicating expenses, and increase over time.

Scenarios in $2012 Va lue fo r S On ly tea m- Gr s V alu e f CH P os or Ne t V alu e f CH P or in steam-only scenario in year 10) Synapse Exhibit K Assumptions: • Notes: Operating Inputs Net Generator Capacity (MW) 2.05 1.55 MW at full ext...

AI summary The text outlines financial and operational assumptions for a steam-only scenario in 2012, including net generator capacity, energy production, fuel costs, and annual operating expenses. It also discusses assessed value percentages and annual declines in assessed value.

Synapse Exhibit L Assumptions: Notes: venu e ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,388 ,394 ,394 ,394 ,394 ,394 Expe nses Fuel Cos t 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M (50,0 00) (50, 960) (51, 938)...

AI summary The document provides a table of assumptions and expenses related to fuel costs, operations and maintenance, site maintenance and general administrative expenses, insurance, and land lease costs over a multi-year period. The numbers show increasing expenses for O&M, insurance, and land lease over time.

Synapse Exhibit M Assumptions: Notes: 40-y r SL 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % Cale ndar Yea r De iatio r Cla prec n pe 20-y r SL...

AI summary The table presents assumptions and notes related to maintenance costs, including major maintenance classifications and associated figures for various time periods. The data includes percentages and dollar amounts for different maintenance categories, such as 20-year, 30-year, and 40-year SL classifications.

6.1.3 Annual O&M Cost Estimate 13.06%

AI summary This section discusses the Annual O&M Cost Estimate, which is set at 13.06%. It is a key component in determining operational expenses and overall cost recovery for the organization.

(All costs in 2011 CAN$) Operating and Maintenance - Fixed Manager 125,000 Admin. Personnel 40,000 Maintenance Contract 200,000 Operators13 total @85K 1,105,000 Consultants 50,000 Insurance 348,000 General Supplies 50,000 Miscellaneous 50,...

AI summary The text outlines operating and maintenance costs for a project in 2011, including fixed costs such as salaries, contracts, insurance, and supplies. Fuel costs are also detailed, with a total first-year cost of $5,555,000 and an annual escalation rate of 2.0%.

100.0% Total annual revenue - amount in A/R at end of year 50 8.3% Total potential revenue 12,718,915 12,947,855 13,180,917 13,418,173 13,659,700 13,905,575 14,155,875 14,410,681 14,670,073 14,934,134 15,202,949 15,476,602 15,755,181 16,03...

AI summary The text provides a table detailing financial data for a regulatory proceeding, including total annual revenue, potential revenue, gross revenue, and various expenses such as operating and maintenance, interest on debt, and depreciation and amortization. The data spans multiple years and includes percentages of available revenue.

Operation and Maintenance Scotian WindFields Inc believes that the operation and maintenance costs assumed for small wind are too low. While the figures included in the models may be accurate for the physical maintenance required on the tu...

AI summary Scotian WindFields Inc. argues that the operation and maintenance (O&M) costs for small wind projects in the COMFIT program are underestimated, as they do not include site maintenance, land leases, and administrative costs. They recommend increasing O&M costs to 1.8% of capital costs, which is still below the standard range of 2%-4%.

V. OPERATING COSTS

AI summary This section of the document introduces the topic of operating costs, which is a key area of discussion in the regulatory proceeding. It sets the stage for an analysis of various cost-related factors, including expenses associated with operations and maintenance, and may involve discussions on efficiency, management, and cost recovery mechanisms.

Q. What are the apparent differences between the expected non-fuel O&M costs of the Synapse estimate and ESI estimate? A. The Synapse model considers most of the non-fuel operating expenses between a steam only plant and the CHP to be zero...

AI summary The Synapse model assumes minimal non-fuel O&M costs for CHP compared to steam-only plants, while ESI estimates higher costs due to increased operational hours. The difference in operating hours (90% vs. 60%) is a key factor in O&M cost differences.

- The parasitic power losses for a generating plant are higher due to the larger plant size and the extra motors (hotwell pumps, cooling tower fans, cooling water pumps, etc.). - The water costs for the generating plant are higher because...

AI summary The text discusses increased operational and maintenance costs associated with a larger generating plant, including higher parasitic power losses, water treatment chemical costs, landfill costs, and maintenance expenses. These costs are attributed to additional equipment and processes, with operating labor being addressed separately in testimony.

Table V: Loss Method Boiler Efficiency Calculation Dry Gas Loss (%) - assume 325°F stack exit 6.29 Hydrogen and Moisture in Fuel (%) – 50%MC fuel 20.33 Moisture in Air (%) – 55% relative humidity 0.15 Unburned Combustibles (%) 1.01 Sorbent...

AI summary This table calculates boiler efficiency using the loss method, resulting in a 69.83% efficiency. A recommendation is made to use 69.9% for calculating fuel contribution to O&M costs, considering various factors like dry gas loss, moisture content, and radiation losses.

ASSUMPTIONS AND CLARIFICATIONS - 1. ESI has not included use taxes, property taxes, or Owner's insurance as part of this project budgetary pricing. We assume owner will provide this information. - 2. ESI assumes that the site is level with...

AI summary The document outlines various assumptions and clarifications made by ESI regarding the project budget, including the exclusion of certain taxes, site conditions, utilities, and environmental compliance measures. It highlights the assumptions made about site access, soil conditions, and the availability of resources during construction and commissioning.

Q. How does the Synapse estimate for operating and maintenance costs compare to the ESI estimate in its Study? A. As with the capital cost estimate, it appears as though Synapse has left out operating cost items such as Ash Landfill, Make-...

AI summary The response indicates that Synapse's operating and maintenance cost estimates are lower than ESI's, as Synapse omitted items like Ash Landfill and Make-up Water, and underestimated plant maintenance costs.

6. Annual Operating Expenses - 6.1. Operation and Maintenance (O&M): in addition to the general inflation factor (that implies no real cost increase), we believe necessary to consider the equipment's lifecycle cost factors. In our understa...

AI summary The section discusses annual operating expenses, highlighting the need to consider lifecycle costs for equipment, the low O&M budget and suggestion to include G&A expenses, and the need to evaluate potential charges and penalties from energy purchase contracts, with a placeholder for miscellaneous costs.

Outline of Significant Differences Between the Synapse Model and ANSS Model In cell B6 we can see the single biggest and most influential difference between the two models in the capital cost estimates between Synapse and ESI. On a per MW...

AI summary The text outlines key differences between the Synapse model and the ANSS model, including capital cost estimates, handling of steam-only scenarios, financing assumptions, plant size, capacity factors, fuel requirements, O&M expenses, and overall COMFIT prices. These differences significantly impact the financial and operational analysis of the project.

- 4. If ESI performed a study to determine the capital cost and O&M costs for an 18,000 pph boiler than one could address all ofthe above issues. Nova Scotia COMFIT Model Biomass CHP (condensing turbi Operating Inputs Gross Generator Capac...

AI summary The text discusses the need for ESI to perform a study on the capital and O&M costs of an 18,000 pph boiler to address certain issues. It also includes a table comparing the Nova Scotia COMFIT Model with a Biomass CHP system, including details on capacity and energy production.

Scenarios in $2012 Scenarios in $2012 Value for Steam-Only Shared Value Steam Gross Value for CHP Net Value for CHP Interconnection ($) $0 $199,000 $199,000 Maintenance reserve ($) $64,049 $32,024 $99,350 $67,326 Working capital reserve ($...

AI summary The text presents a table with various financial and operational scenarios for 2012, including interconnection costs, maintenance reserves, working capital, debt service, interest during construction, and annual fuel costs for different steam and combined heat and power (CHP) configurations. It highlights differences in values between steam-only and CHP scenarios.

Nova Scotia COMFIT Model O tin Ye pe ra g ar Ca le nd Y ar ea r 0 20 10 1 20 11 2 20 12 3 20 13 4 20 14 Ot he r 0 0 0 0 0 M ajo r M ai nt en an ce An al De iat ion nu pr ec 13 ,52 7, 11 2 0 3, 27 4, 02 8 0 4, 91 1,0 42 0 2, 45 5, 52 1 0 1,...

AI summary The document presents a table outlining maintenance and occurrence expenses related to the Nova Scotia COMFIT Model over several years, highlighting major maintenance analysis and deviation classifications.

Scenarios in $2012 r S On Va lue fo ly tea m- Sh e S d V alu tea are m Gr CH s V alu e f P os or CH Ne t V alu e f P or De bt Clo sin Co & Fe sts g es $ 10 9, 64 6 $ 0 $ 0 C C Eq uity los ing & F ts os ee s $ 48 71 8 , $ 24 35 9 , $ 66 5,...

AI summary The text presents a table of financial scenarios from 2012, including values related to debt closure costs, equity losses, interest during construction, routine maintenance, ash disposal, water, sewer, and labor costs. These figures appear to be part of a financial analysis or planning process.

9.5 Operating Costs [185] In developing the operating costs, Synapse decided to use a model having high "granularity", meaning that the data was aggregated at a high level. As stated by Synapse: And when we put the model up for review and...

AI summary Synapse used a high-level model for operating costs, which was criticized for lacking precision. ANSS found it difficult to compare operating costs, and Synapse defended the model by citing the trade-off between granularity and precision in rate setting.

e is going to be not just [a] capital cost, it's also going to be an operating cost, and there will be a difference to some extent in, for example, labour as well. [Transcript, April 5, 2011, p. 465] [194] The rating of the boiler (essenti...

AI summary The text discusses the capital and operating costs associated with a boiler, highlighting differences in labor requirements based on the boiler's rating. It also references testimony from the Sawmillers Association regarding the classification of facilities under the Power Engineers Act and the possibility of obtaining dispensation for periodic supervision.

[196] St. FX, in costing its plant, commented upon the labour costs as follows: 2. Operating Labour Cost. This plant will need to be manned with operators 24/7 because of the steam boilers involved and also because of the inherent nature o...

AI summary St. FX highlights that the plant requires 24/7 operation due to steam boilers and solid fuel handling equipment, resulting in high labour costs as a percentage of operating costs.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Annual O&M (expensed) Escalates at inflation.

AI summary The document outlines annual operating and maintenance (O&M) costs, which are expensed and escalate at the rate of inflation.

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Net Output in MWhs 101 Annual Operating Expenses Annual Fuel Cost F...

AI summary The document presents a depreciation worksheet for a large wind project in Nova Scotia, focusing on the COMFIT model. It includes details such as net output, annual operating expenses, fuel costs, and routine O&M costs, which escalate with inflation.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Fuel Required per Year (mmBtu) 0 Initial year Fuel Price ($/mmBtu) 0 Routine O&M (expensed) 4.500...

AI summary The text presents a cash flow worksheet for a small wind project, indicating routine operations and maintenance costs, which escalate with inflation. There is no fuel required, and the project is tax-exempt.

Nova Scotia COMFIT Model Depreciation Worksheet: Top Synapse Compliance Small Wind Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Annual O&M (expensed) 215,939 Escalates at inflation.

AI summary The document presents a depreciation worksheet for the COMFIT model, focusing on annual operating and maintenance (O&M) expenses for a small wind taxable owner, which escalate at the rate of inflation.

Scenarios in $2012 $ Sc ios in 2 0 1 2 en ar Inte Du ing Co ion t tru t res r ns c $ 8 6, 6 3 2 $ 3 3 0, 4 2 5 $ 2 4 3, 7 9 3 Bo i ler f f ic ien ( ) % e cy 7 0 % 7 0 % $ /y Ro ine Ma inte ( ) t na nce r u $ 1 3 0, 5 5 7 $ 1 7 3, 2 6 4 $ 4...

AI summary This table outlines various financial and operational scenarios from 2012, including figures related to boiler efficiency, maintenance costs, labor expenses, insurance, property taxes, and fuel usage in British Thermal Units (Btu). The data highlights differences between various categories and years.

4.3 Operating and Maintenance Sawmills have existing employees such as accountants, loader drivers and other related overheads that will not be considered in the labor cost estimate. Boiler engineers are the most likely source of labor req...

AI summary The section discusses operating and maintenance (O&M) costs for sawmills, noting that existing employees like accountants and loader drivers are not included in labor cost estimates. Boiler engineers are highlighted as a potential labor source, and the need to account for major replacement and maintenance costs over the asset's life is emphasized.

O&M Cost Items - Maintenance - Employees required (total cost including benefits) - Parasitic power requirements - All consumables - Ash disposal - Insurance - Major planned maintenance (turbine blade refurbishment etc.) • Property tax

AI summary The document outlines various operational and maintenance (O&M) cost items, including maintenance, employee costs, parasitic power requirements, consumables, ash disposal, insurance, and major planned maintenance activities such as turbine blade refurbishment, as well as property tax.

Table 1. The Impacts of the Changes Analyzed in U-2, U-6 and U-6(a) Change Analyzed Fixed Component ($/MWh) Variable Component ($/MWh) Full 2012 Rate ($/MWh) Working Capital Net of steam-only scenario Fuel Required per Year (mmBtu) 268 056...

AI summary Table 1 outlines the financial and operational impacts of various changes analyzed in U-2, U-6, and U-6(a). It includes fixed and variable components, fuel requirements, initial fuel prices, operating and maintenance costs, and other financial metrics related to a project. The table also highlights inflation-related escalations and assessed value details.

Scenarios in $2012 Val for Ste -On ly ue am Gro ss V alu e fo r C HP Net Va lue for CH P Reserves Annual Operating Expenses Up-Front Maintenance Net of steam-only scenario Annual Fuel Cost Working Capital Net of steam-only scenario Fuel Re...

AI summary The table presents financial scenarios from 2012, including reserves, operating expenses, fuel costs, and project costs. It details various components such as debt service reserves, working capital, and initial reserve account sizing, along with associated values and escalations.

Nova Scotia COMFIT Model Synapse U-6 Capital Structure Assumptions Notes: 1 Notes: General Inflation Factor (revenue and expenses) 1.92% From NSPI 2009 IRP Update Operating Inputs Capital Costs (Uses of Funds) Net Generator Capacity (MW) 2...

AI summary The document outlines the Nova Scotia COMFIT Model, detailing capital structure, assumptions, and financial inputs related to a project. It includes inflation factors, capital costs, energy production metrics, and operating expenses, with notes on net of steam-only scenarios and cost escalations.

Scenarios in $2012 Ste -O Va lue fo nly r am Gr C Va lue fo HP os s r C Ne t V lue fo HP a r Fue l Co st (1,4 71) 17,8 (1,4 94) 45,0 (1,4 40) 72,8 (1,5 18) 01,1 (1,5 40) 29,9 (1,5 15) 59,3 (1,5 53) 89,2 (1,6 67) 19,7 (1,6 67) 50,8 (1,6 63)...

AI summary The document presents a table outlining various financial scenarios for the year 2012, including fuel cost, O&M, and site maintenance values. The data appears to be part of a larger analysis involving financial tracking and investment considerations.

Page 5 of 6 NS_COMFIT_Biomass_45% Cost Allocation.xls Component Scenario Scenario Scenario Project development $0 $275,000 $275,000 Boiler installed cost ($) $20,298,000 $36,818,000 $16,520,000 Turbine installed cost ($) $0 $0 $0 Emission...

AI summary The document provides a detailed cost allocation breakdown for a biomass project, including installed costs for boilers, maintenance reserves, debt and equity closing costs, insurance, property taxes, fuel use, and plant capacity factors. It outlines different scenarios and associated financial figures for various components of the project.

3 sections that calculate: - Revenue (from energy sales) - Expenses (O&M, insurance, taxes) - Debt repayment

AI summary The text outlines three key sections for calculation: revenue from energy sales, expenses including O&M, insurance, and taxes, and debt repayment. These sections are likely used for financial reporting or regulatory analysis.

Input complexity Ontario Vermont Germany Data granularity Capital Costs -One input for installed costs Operating Costs -Variable O&M -Fixed O&M -Other costs -Fuel costs -Property tax Capital Costs -Debt reserve -Maintenance reserve -Workin...

AI summary The table compares input complexity across Ontario, Vermont, and Germany, focusing on data granularity for capital and operating costs. Ontario has a structured approach with specific inputs, while Vermont includes a range of cost factors and Germany provides highly detailed listings of costs.

OPERATING COSTS - 40. As explained in the pre-filed evidence of Mr. Hayes, the Synapse model considers most of the non-fuel operating expenses between a steam only plant and a CHP to be zero. However, he explains that simply by operating t...

AI summary The text discusses the operating costs of a CHP plant compared to a steam-only plant, highlighting differences in O&M costs due to factors like parasitic power losses, water treatment, and maintenance. Mr. Hayes' evidence points out that Synapse's model overlooked several key costs associated with the CHP facility.

9.5 Operating Costs [185] In developing the operating costs, Synapse decided to use a model having high "granularity", meaning that the data was aggregated at a high level. As stated by Synapse: And when we put the model up for review and...

AI summary Synapse used a high-level model for operating costs, which was criticized by ANSS for lacking precision. Synapse defended the model by citing the trade-off between granularity and precision, noting that more detailed models are typically used for specific projects rather than rate-setting processes.

[188] Synapse projected operating costs were based on the following: Steam Combined Net Routine Maintenance ($/yr) $130.557 $173.264 $42.707 Labour ($) $305,760 $356,720 $50,960 General & Admin. $0 $0 $0 Insurance $9,691 $39,443 $29,752 Pr...

AI summary Synapse projected operating costs for Steam, Combined, and Net systems, including routine maintenance, labour, insurance, and overhaul costs for turbines and boilers in Year-10. The data is sourced from Synapse Report, Exhibit B-1, and Exhibit K.

[196] St. FX, in costing its plant, commented upon the labour costs as follows: 2. Operating Labour Cost. This plant will need to be manned with operators 24/7 because of the steam boilers involved and also because of the inherent nature o...

AI summary St. FX highlighted that the plant requires 24/7 operation due to steam boilers and solid fuel handling equipment, resulting in high labour costs as a percentage of operating costs.

9.5.2 Findings on Non-Fuel Operating Costs [200] Because of the high aggregate approach taken by Synapse, the Board must take care in ascribing any precision to the components of any operating cost figure. Even with this limitation, the Bo...

AI summary The Board cautions against overprecision in Synapse's high aggregate approach to operating costs, but identifies parasitic power and labour as areas needing further consideration. It suggests adjusting for parasitic power based on efficiency calculations and increasing the labour cost differential between 15 psi and 600 psi CHP plants.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Annual Operating Expenses

AI summary The text contains a table with columns related to financial and operational data, including annual operating expenses, cash flow, and a section labeled 'Large Wind no tax'. The context suggests the document is related to financial modeling and tax considerations for a large wind project in Nova Scotia.

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Net Output in MWhs 101 Annual Operating Expenses Annual Fuel Cost F...

AI summary The document presents a depreciation worksheet for a large wind project in Nova Scotia, focusing on operating expenses, fuel costs, and routine O&M costs. It includes details such as net output in MWhs and escalations based on inflation.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Fuel Required per Year (mmBtu) 0 Initial year Fuel Price ($/mmBtu) 0 Routine O&M (expensed) 4.500...

AI summary The document outlines a cash flow worksheet for a small wind project, including details on routine operations and maintenance costs, which escalate with inflation, and fuel requirements. Fuel costs are listed as zero, indicating potential reliance on other energy sources or subsidies.

Scenarios in $2012 $ Sc ios in 2 0 1 2 en ar Inte Du ing Co ion t tru t res r ns c $ 8 6, 6 3 2 $ 3 3 0, 4 2 5 $ 2 4 3, 7 9 3 Bo i ler f f ic ien ( ) % e cy 7 0 % 7 0 % $ /y Ro ine Ma inte ( ) t na nce r u $ 1 3 0, 5 5 7 $ 1 7 3, 2 6 4 $ 4...

AI summary The table presents financial and operational data from 2012, including figures for boiler efficiency, maintenance costs, insurance, property taxes, and fuel usage in British Thermal Units (Btu). These details provide insight into operational performance and expenditures during that year.