Priest Rapids Turbine Upgrade Project. May 26 th, 2015
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1 Priest Rapids Turbine Upgrade Project May 26 th,
2 Agenda Project Update Change Order #1 Schedule & Next Steps 2
3 PROJECT UPDATE 3
4 Project Update Scope of Work 4
5 Project Update Major Components Contract is structured to provide engineering analysis and field inspection of parts to be reused to ensure 50 year life extension. Possible outcomes include: reuse as is modify & reuse replace New components turbine runner inner headcover wicket gates (originally planned for reuse) Stress concentrations Fatigue life Material properties Unacceptable for 50 yr. life extension 5
6 Project Update Major Components Refurbished components intermediate head cover stay ring and stay vanes bottom ring wicket gate linkage, operating ring, & servomotor turbine bearing packing box Kaplan pipes, oil head and governor oil pressure system turbine shaft (originally planned for reuse as is) Stress concentrations Fatigue life Acceptable for 50 yr. life extension with modifications 6
7 Major Part Manufacturing CASTING/FABRICATION MACHINING HUB & INTERNALS China Erzhong (China) Voith Shanghai (China) BLADES Voith Sao Paulo (Brazil) Voith Sao Paulo (Brazil) SHOP ASSEMBLY Voith York (PA) or Voith Sao Paulo (Brazil) 7
8 CHANGE ORDER #1 8
9 Change Order #1 Description of Change COST Increase to Voith contract? Changes location and shifts responsibility for lead abatement and painting for intermediate headcover refurbishment to Voith. Increase to project cost? $120,000/unit yes no New inner headcover deck plates $12,000/unit yes no Adds bottom ring facing plates Modifies methodology for site assembly of the runner Adds design of modifications of certain parts to be reused $113,027/1 st unit 106,690/2 nd 10 th unit yes $184,471 yes no Turbine shaft $62,272 Wicket gates $119,401 Wicket gate mechanism $5,560 yes yes yes Housekeeping changes (no cost) Modifies the Milestone Schedule to match awarded project scope Adjusts the Payment Schedule to match the Milestone Schedule Adjusts the liquidated damages to match the Milestone Schedule Clarifies the timing for making price adjustments per the escalation clauses 9
10 Change Order #1 Costs Cost for changes included in Change Order #1 Increase in Voith contract costs $ 2,764,941 Increase in project costs $1,260,470 New total Contract Price $64,363,818 10
11 SCHEDULE & NEXT STEPS 11
12 Schedule One unit per year Initial unit outage planned for Aug
13 Next Steps PR Turbine Upgrades Approval of Change Order #1 June 9, 2015 Resolution of shaft, wicket gates and June 23, 2015 other misc. items potential Change Order 2 Potential approval of Change Order #2 July 14, 2015 Other Related Contracts General NDE services 3 rd quarter 2015 Lead abatement & painting 4 th quarter 2015 Site labor 1 st quarter 2016 Discharge & bottom ring refurbishment 1 st quarter
14 Priest Rapids Dam Generator Rehabilitation Contract
15 Project Timeline/History DESCRIPTION DATE Commission Action: Prequalification of Voith, Alstom, Andritz Draft technical specifications provided to bidders for comment. Andritz notifies District their Canadian bar shop was moved, Andritz required to re qualify a facility that meets the pre qualification criteria Commission Report: Pre Qual update, GE request to reconsider their pre qual status, and bars vs coils discussion Staff approves Andritz s Austrian bar manufacturing facility. June 10 th, 2014 Oct 10, 2014 Oct 22, 2014 Dec, 9 th 2014 Dec 18 th 2014 Contract Released for Bid Jan 29, 2015 Contract Bids Opened April 23,
16 Contract Scope of Work Thrust Bearing Excitation System Monitoring System Thrust bearing scope likely to increase 3
17 Bids Received Bidder Base Bid Alternate Bid No. 1 Alternate Bid No. 2 Voith Hydro $85,351,900 $83,935,300 $90,760,100 Andritz Hydro $87,491,100 $85,763,400 Alstom Power $87,775,000 Engineer s Estimate* $98,660,000 *Engineer s Estimate developed from 2008 Wanapum Generator Contract bids and escalated to Confirmed by Independent estimate by MWH at $98,978,000. Close Competitive Bids, 2.8% between Base Bids 4
18 Commercial & Technical Evaluation Criteria per Contract Total Bid Price Efficiency Evaluation Temperature Evaluation Schedule Evaluation Bidders Data Sub Contractors Project and site managers Technical/commercial exceptions Equipment data, descriptions, and drawings Other Elements that may affect cost or benefits to the District 5
19 11,800 Total Generator Losses, 10 units 11,700 11,600 11,500 Kilowatts 11,400 11,300 11,200 Lower Losses = Better Efficiency 11,100 11,000 10,900 Existing 11,199 Alstom 11,064 Voith, 11,687 Andritz 11,340 10,800 10,700 Over ½ Megawatt Spread Amongst Bidders 6
20 Andritz Hydro Base & Alt Bids Commercially Compliant Technically Non Compliant Major Technical Exceptions Bar installation method is not one of the two defined methods. Not equal or better than the two methods. Does not provide a zero clearance on both sides of Bar Does not meet wedging system requirements to provide 150% preload on the bar Excitation System has numerous exceptions Alternate Bid 1 could not be considered according to ITB 2, since Base Bid was non compliant 7
21 Voith Hydro Base Bid Commercially and Technically Compliant Least efficient of all bids 8
22 Voith Hydro Alternate Bids Alternate Bid 1 Commercially Non Compliant, Technically Compliant Commercial Exception: Alternate payment schedule with progress payments resulting in $1.4M price reduction, However; Forward cash flow of progress payments results in reduced value of $2.4M compared to their base bid $2.4M added to evaluated bid price Additional risk added with progress payments vs payment for onsite material delivery or on site assembly completion Alternate Bid 2 Commercially Non Compliant Uses same sub contractors for excitation and monitoring systems as Wanapum Dam resulting in a $5.4M price increase. Also includes progress payments. No additional value to District over their Base Bid and not considered. No further technical evaluation completed 9
23 Alstom Power Bid Commercially & Technically Compliant Best efficiency of all Bidders Only bidder to improve the efficiency of the Units Achieved by tightening baffle clearances & sealing leakage paths Optimized rotor pole connection system that does not negatively impact the efficiency Stator bars, Exciter, and Monitoring System all manufactured in Canada. Same supply as Wanapum Reduced internal labor resources Many Interchangeable spare parts between plants Lowest Evaluated Bid 10
24 Evaluated Bid Prices $91,000,000 $90,000,000 $89,730,650 $89,000,000 $88,000,000 $88,747,250 $2,414,679 $87,775,250 $87,000,000 $3,395,350 $0 Most Efficient $86,000,000 $3,395,350 $85,000,000 $84,000,000 $87,775,000 $83,000,000 $85,351,900 $82,000,000 $83,935,300 $81,000,000 Voith Voith alt 1 Alstom Bid Price Efficiency Adjustment Progress Payments 11
25 Alstom Optional Bid Items 19 Optional Bid Items for: replacement parts, additional field work, or additional spare parts. Future Engineering analysis and field inspection will determine the need for replacement parts We expect to replace thrust bearing at $1M per Unit Spare Power Potential Transformer for Excitation System. Alstom s price is $128,400 Significantly reduced down time in case of failure Significantly reduced pricing when purchased with other 10 Units and not in an emergency condition Recommend award of Optional Bid Item No. 9 for Spare Power Potential Transformer 12
26 Staff s Recommendation Award Contract for the Priest Rapids Dam Generator Rehabilitation to: Alstom Power Inc. in the amount of $87,903,514 * *Includes price of Optional Bid Item for spare transformer 13
27 Public Affairs Quarterly Report May 2015
28 Targeted, easy-to-define metrics to determine effectiveness of campaigns Pubic Affairs Q Report 2
29 Results of High Speed Network campaign: Through March 31, new fiber subscribers, 5% growth in Q1, (17.9% growth since 13.) $158,496 in additional annual revenue $569,400 in additional annual revenue since Jan. 1, 2014 In Q1, take-rate goal gap closed from 2.97% to 1.38% Fastest growing hubs Mattawa +68, Larson +48, Soap Lake +36 Implementing Wireless marketing plan Pubic Affairs Q Report 3
30 Wireless Network postcard: Pubic Affairs Q Report 4
31 New epay customers in Q1 2015: 549 new epay customers 9.7% growth $9,882 in annual mailing savings $41,000 since July Results of Q-1 epay campaign Pubic Affairs Q Report 5
32 Share the Warmth Record-breaking donations of $63,000 for the campaign, (Feb Jan. 2015) Pubic Affairs Q Report 6
33 Pubic Affairs Q Report 7
34 Saving Energy 20,132 MWh saved in 2014 (I-937 reporting) Pubic Affairs Q Report 8
35 Pubic Affairs Q Report 9
36 Public Outreach plans for 2015 Sunglass Selfie Social Media Contest Highlights recreation upgrades and drives social media interaction Grant County Fair Tuesday main advertiser, partnering with 811 and Wanapum Summer library hydropower demonstration Engagement with community and youth to explain hydropower and electrical safety Recreation and High Speed Network campaigns New video and print ads for recreation and High Speed Network Visitor centers development and promotion Working with project managers to help develop content and also promote Wanapum and Hydro visitors centers. Pubic Affairs Q Report 10
37 Customer Satisfaction Survey 2015 Copyright 2013 Grant County Public Utility District. CONFIDENTIAL AND PROPRIETARY
38 Purpose Strategic Plan Objective 3 Provide Outstanding Service to Our Customers. Metric: Retail Customer Satisfaction Surveys»(every other year) Gauge effectiveness of customer education and outreach Satisfaction Survey 12
39 Instrument Vendor: Strategies 360 Survey portion of population with a 5.7% margin of error and a 95% confidence level. Sample size of 300 (Eng & Sph) representing every community min. in length Satisfaction Survey 13
40 Instrument Previous years satisfaction levels: 12=88% satisfaction 07=95% satisfaction 08=91% satisfaction Survey conducted in June results presented in July/Aug timeframe Questions designed to gather actionable data Requesting board input on proposed questions today Satisfaction Survey 14
41 Thank you. Public Affairs grantpud.org
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