We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byReilly Lynes
Modified about 1 year ago
Fort Pierce Repowering Project 04/24/01
1 ©2001 Enron Proprietary and Confidential Information Recommendations Go forward with the project on a combined-cycle basis with a commercial operation date of October Current development cost it at $3.6MM with capital exposure of $2.4MM. Monitization at cost is likely with TECO or other 3 rd party Contract strategy with Ft. Pierce to sign the following: Participation Agreement Ground Lease O&M Agreement Tolling Agreement (Steam Agreement) Interconnection Agreement Suspend engineering expenditures as of Friday, April 27, 2001 and authorize the following expenditures until the completion of contracts with FPUA. $600K of engineering support to cover expenditures from April 15th – April 27th (two weeks) Enter into Physical Delivery Gas Contract with Gas Desk through Phase VI and purchase long term Phase VI capacity from FGT. (May 4 th – May 11 th )
2 ©2001 Enron Proprietary and Confidential Information Estimated Project Valuation - Comparison ASSUMPTIONS Pre-tax analysis 278 MWs of output from June 2002 – 2031 Heat Rate – Combined cycle heat rate of 7,080 btu/kWh HHV – FPRP heat rate of 6,068 btu/kWh HHV 93% Availability Gas prices based on ICF curves plus EA transport surcharge Power prices based on ICF curves 50/50 Debt to equity ratio Project life = 30 years (25 years + 5 year option) Terminal Value = Assumed 0 Case 1 assumes June 2002 start using a by-pass stack Case 2 assumes October 2002 start using a dump condenser Case 1VSCase 2 Simple-cycle June 2002;Combined-cycle October 2002 Combined-cycle October 2002 NPV 17% = $24.3MMNPV 17% = $19.2MM
3 ©2001 Enron Proprietary and Confidential Information Major Project Risks Commercial Risks Large capital expenditure without gain of asset(s) Material change in long-dated view of Florida market Default of FPUA under the Steam Agreement may collapse the value of the asset Development Risks Air permit may not allow simple-cycle operations with emissions in excess of 25ppm NO x (currently, Mitsubishi’s maximum guaranty is 25ppm NO x ). Supply of Natural Gas Suspend activities until FPUA has signed PA, Ground Lease, O&M and Tolling Agreements PA has unilateral termination by Enron through October 2001 Step-in rights (legally questionable) thin ability for Enron to build its own steam turbine to re-capture value of Steam Agreement in electric capacity & energy minus construction time Change by-pass stack to dump condenser which allows for simple-cycle like operation under projected air permit Enter into a Physical Supply Contract with East Desk Pre-FGT Phase VI & purchase long term Phase VI capacity
4 ©2001 Enron Proprietary and Confidential Information Major Project Risks Development Risks (continued) Interconnection and transmission agreements – FPUA Interconnection at King Plant – FPUA Transmission – FPL Transmission – Certain – In flux, physical capacity exists but FPUA only has direct control of 135MWs of the 196MWs required; Vero Beach has contractual control of remaining. Recommend Enron negotiate directly with Vero and FMPA for the gap and later with Grid Florida as these transmission lines will be ISO jurisdictional. – FPL presently cooperating with Enron/FPUA on upgrading the present agreement. Net flow is into grid therefore no major hurdles are anticipated.
5 ©2001 Enron Proprietary and Confidential Information Major Project Risks Development Risks (continued) Mitsubishi turbine Finance Risks Off-balance sheet financing in Turbo Park EPC Wrap Legal Risks Contract Enforceability Requires Japanese consent to move into this project. Development team working on consent and technical modifications. Rush nature of project makes Turbo Park compliance tricky. Could potentially trip over hard cost before reaching criteria for Turbo Park Phase I. Pushing project into Fall 2002 will help to mitigate The preferred “wraps” of Turbo Park seem to be above EPC wraps offered in today’s construction market. May have to settle for a series of wraps or pay significant premium to achieve total project financing. May have to find alternative construction financing in a vehicle such as AIG High… No certainty that certain protections afforded Florida Municipalities (for example, sovereign immunity) are effectively waived or that other FPRP Protections (for example, step in rights and indemnities) are enforceable. Qualified opinion of outside counsel will be obtained as to enforceability.
6 ©2001 Enron Proprietary and Confidential Information Major Project Risks Legal Risks (continued) Limited Recourse Transmission and Interconnection Limited Development Discretion Even if contracts are fully enforceable, FPUA’s ability to collect damages against FPUA is limited by FPUA’s prior pledge of FPUA revenues in connection with bond financing. With certain exceptions, FPUA’s liability is limited to $3MM. Specific performance remedy to compel FPUA to perform contract obligations subject to certain limitations. There is no firm transmission available from FPUA absent future agreements with FPUA and FMPA, which agreements may not be obtained. Enron can take legal action to compel access to transmission or construct own transmission facilities. Aesthetic Agreement to placate city gives city unusually broad discretion over development costs and schedules based on city planner’s subjective evaluation of project aesthetics. Aesthetic Agreement provides appeals process to Florida Circuit Court.
7 Fort Pierce Repowering Project L.L.C. (“FPRP”), a wholly owned subsidiary of Enron Americas, intends to repower the existing power generation facilities of the H. D. King Plant (“King Plant”) owned by the Fort Pierce Utilities Authority (“FPUA”) located in Fort Pierce, Florida. The repowering will require FPUA to lease to FPRP approximately two acres of land on the King Plant property on which FPRP will build a new power generation facility (“FPRP Plant”) consisting of a Mitsubishi 501F combustion turbine (the “Turbine”) and a Cockerill Mechanical Industries (“CMI”) heat recovery steam generator (“HRSG”). A total of approximately 278 MWs will be generated by the FPRP Plant and the King Plant, an estimated 196 MWs of net output from the FPRP Facility and 82 MWs from the #7 and #8 steam turbines in the King Plant. The combined-cycle heat rate of the facilities will equal approximately 7,080 btu/kWh high heating value (“HHV”). Steam will be sourced to the King Plant at a heat rate of 9,500 btu/kWh HHV (an improvement to the 12,000 btu/kWh HHV steam it is currently generating from its two existing boilers). Due to this arrangement, FPRP will enjoy a reduced net heat rate equivalent of approximately 6,068 btu/kWh HHV, provided the King Plant is running. FPUA intends to reimburse FPRP for consumed steam through a natural gas fuel allocation. In the event the King Plant is not running its steam turbines, FPRP has the right, but not the obligation, to toll the #7 and #8 King Plant turbines and generate the estimated 278 MWs for its own account at the combined cycle heat rate of approximately 7,080 btu/kWh HHV. ©2001 Enron Proprietary and Confidential Information Deal Overview
8 Combined-cycle power generation in Florida by Fall 2002 Attains combined cycle heat rate without requiring FPPSA approval Innovative solution provides for combined cycle equivalent heat rate power generation via the implementation of cogeneration Municipal as well as FP&L load service opportunities Document status/terms – Structured to be Turbopark compliant (subject to bank review) FPRP to be sold out of Turbopark prior to commercial operations – HRSG contract executed with CMI (completion milestone payments commence June 2001) – Remainder of definitive agreements executed by FPRP & FPUA by May 2001 – Fort Pierce City Commission > 04/23/01 – FPUA Board Meeting > 04/24/01 – FPUA obligation to buy steam if FPRP generating – FPRP option to toll FPUA units when not dispatched by FMPA for power sales to third parties – Specific performance remedy Right to substitute steam turbine at FPRP Facility if King Plant is not operating ©2001 Enron Proprietary and Confidential Information Deal Highlights
9 Estimated Completion Environmental Resource Permit (ERP) issuedMarch 2001 Public approvals Site plan/conditional useFebruary 2001 Ground LeaseApril 2001 (City vote 4/23/01) FPUA remediation/tank removal > clean site deliveredApril 2001 (90% complete; closing letter due 4/30/01) Final contracts with FPUA (CPs to continuing)May 4, 2001 (FPUA vote to approve 4/24/01) Gas Supply AgreementsMay 4, 2001 (If CPs are met) Transmission FP&L Feasibility StudyMay 2001 FPUA provides transmission capacity to FP&LMay 2001 MHI Turbine Assignment of ContractsMay – June 2001 Air Permit grantedAugust 2001 Architectural complianceOngoing ©2001 Enron Proprietary and Confidential Information Development Status (Updated)
10 Estimated Completion Selection of EPC contractorMay 2001 Project phased into Turbopark May 2001 Commence hard costs Ground breaking (contingent upon Air Permit)September 2001 Combined Cycle (Cogen) OperationsOctober 2002 ©2001 Enron Proprietary and Confidential Information Construction Timing
11 ©2001 Enron Proprietary and Confidential Information Projected Costs $MM Committed Costs (expenses through 4/15/01)$3.4* – Engineering$1.7 – Development$1.0 – Legal$0.7 Current DASH Request (expenses through 5/30/01)$4.7 – Engineering$3.5 – Equipment Options $0.6 – Development/Legal$0.6 Final DASH Request (expenses through COD) $155.6 Project Total $163.7 * The $3.4MM includes the $2.481MM approved in the I-DASH and $0.921MM of development related expenditures and tasking letters.
Boreal Renewable Energy Development Ferriter Scobbo & Rodophele PC Outback Engineering Richard C. Gross, Inc. March 12, 2009 Notus Clean Energy LLC Wind.
1 Convention Center Authority Republican Policy Group Presentation March 23 rd 2015.
1 Energy/Compost Facility Action Plan City Council Meeting July 2, 2012.
An Overview of the Development of a Renewable Energy Project And the 5 Major Milestones to Achieve Financing By Robert Hunter Director of Operations, Green.
Pasadena Water & Power Intermountain Power Project Amend the Existing Contracts Participate in Renewal Project Pasadena City Council Item 11 July 20, 2015.
American Municipal Power – Ohio, Inc. AMERICAN MUNICIPAL POWER – OHIO, INC. (AMP-Ohio)
Commercial Arrangements For Gas Quality Service – Process UNC Transmission Workstream 23 rd April 2007.
Fountain Valley Power 225 MW Peaking Station for Public Service of Colorado.
Business and Legal Issues in Developing Vacant Land and Underutilized Existing Buildings Jeffrey G. Wright Nixon Peabody LLP June 28, 2007.
Financing Wind Transactions Financing Wind Power The Future of Energy IPED Conference July 25-27, 2007.
1 NEDPower Mount Storm Wind Farm Project Update 10/20/2009.
WFEC and Its Rural Electric Cooperative Members Solar Power October 16, 2015 Fall PR-MR & Marketing Meeting.
Regulatory Flexibility Committee Competitive Procurement September 18 th Joe Kerecman Director Government and Regulatory Affairs
FINANCING LNG PROJECTS. Contracting for and financing LNG assets April 2006.
October 22nd, 2015 Burlington Telecom Advisory Board Setting the stage for discussion on criteria of the sale of BT 1.
Overview of FIP Issues in the RUC, Verifiable Cost, and other Nodal Market Processes November 12, 2008 VCWG Meeting.
The three most important considerations for development of wind farms are: LAND with good to excellent wind resource CONTRACT to sell electricity produced.
Reliability-Must-Run (RMR) Cost Evaluation and Settlement Basis Ino González ERCOT RMR Workshop May 24, 2016.
Session 22 (R) Utility Scale Solar Development Power Purchase Agreements (PPAs) April 04, 2016.
B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 1 Network Operating Committee (NOC) June 12 th, 2014.
ISTISNA. Istisnaa is a contract of sale of specified items to be manufactured (or constructed), with an obligation on the part of the manufacturer (or.
Practical Ways for Towns to Save Money with Clean Energy Projects Doreen Hamilton April 30, 2014.
1 Bilateral Interconnection Agreement Model Presented to HAPUA Working Group 5 (ESI Services), Project 6 By Power Purchase Agreement Division Electricity.
BIOENERGY SYMPOSIUM 2013 ANAEROBIC DIGESTION Regulations Ollie Frazier, P.E., MBA.
1 EERMC Public Meeting on Combined Heat and Power September 17, 2013.
OPERATIONAL ASSETS: ACQUISITION AND DISPOSITION Chapter 10 © 2009 The McGraw-Hill Companies, Inc.
Making the Right Wind Power Investment University of Toronto Wind Workshop October 12th, 2005 Mike Crawley, President/CEO AIM PowerGen Corporation.
2008 All Source Participants WorkshopJune 19, Participants Workshop All Source RFO June 19, 2008.
Alternativenergy Flat Ridge Wind Facility Ted Hofbauer – Asset Manager.
Lecture(3) Instructor : Dr. Abed Al-Majed Nassar
“Specializing in Operational Excellence” Outsourcing Is it right for you? Texas Technology Showcase Houston, Texas March 18, 2003 Integrated Process Solutions.
How to Hit a Homerun Saving Energy and Updating Facilities Presented by Shirley McNutt.
From Preferred Bidder to Financial Close Iain Menzies The World Bank St. Petersburg - 24 May 2008.
The project finance termsheet Broad characteristics: 12 mln USD for expansion of power plant. Two year grace (construction) period, reimbursement over.
February 16, 2000 CONFIDENTIAL ENA, Commercial Transactions Group LM6000 Valuation Process.
TOWN OF NORTH EAST NEW TOWN HALL AND HIGHWAY FACILITY September 2015.
Green. Clean. Wind energy. EverPower Wind Holdings, Inc.
Merchant Plant Finance Price Risk Management Products Kinder/Morgan Inc. April 5, 2000.
Genesis Solar Module Brochure ™
Town Of Douglas A Review of the Town’s Proposed Tax Incentive Financing (TIF) Agreement With American Pro Wind, LLC Presented To The Douglas Finance Committee.
Does owning a solar array make you a utility?...and other questions A presentation to the Kentucky Environmental Quality Commission Andrew Melnykovych.
ISDA ® The New CDS Landscape Auction Settlement International Swaps and Derivatives Association, Inc. ISDA ® Copyright © 2009 International Swaps and Derivatives.
Reliable Power Reliable Markets Reliable People Performance Targets for the Customer Interconnection Process January, 2008.
INVESTMENT AND FINANCING OF RENEWABLE ENERGY PROJECTS 26|NOV|09.
North Eastham Wind Feasibility Study Results Brian Eastman Eastham Energy Committee Kristen Burke Massachusetts Technology Collaborative Ric O’Connell.
Convention Center Authority Republican Policy Group Presentation February 23 rd 2015.
Energy for the Future Belene Nuclear Power Plant Project Status.
LOCAL REGULATION AND CLIMATE CHANGE QUICK TELECONFERENCE American Bar Association Section of Environment, Energy, and Resources Climate Change, Sustainable.
Long Term Service Agreements: The “Top 10” Contractual Pitfalls And How To Avoid Them Troutman Sanders LLP Richard E. Thompson II, Esq.
BUSINESS ACQUISITIONS THE ACQUISITION AGREEMENT: General Introduction to M&A Agreements AND PURCHASE PRICE ©2010 Joseph D. Lehrer.
© 2017 SlidePlayer.com Inc. All rights reserved.