CANE RUN UNIT 7 FIRST-OF-A-KIND NATURAL GAS COMBINED CYCLE PLANT

CANE RUN UNIT 7 FIRST-OF-A-KIND NATURAL GAS COMBINED CYCLE PLANT

ENVIRONMENTALLY RESPONSIBLE ENERGY SOLUTION FOR KENTUCKY Black & Veatch completed the engineering, procurement, and construction (EPC) for Cane Run Unit 7, a 640 MW natural gas combined cycle unit. This project made dramatic upgrades to Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU) Cane Run power plant to better the environment and community, using first-of-a-kind technology and ushering in a new era of gas turbine power generation for Kentucky and its residents. ENHANCING THE ENVIRONMENT When the Environmental Protection Agency (EPA) announced environmental regulations for power plants, LG&E and KU took those requirements to heart. Rather than simply modifying its existing facilities to comply with the EPA s guidelines, the utility developed a long-term plan for its fleet in order to meet regulations far into the future. That plan spelled major changes at the 60-year-old Cane Run Generating Station. Located in Louisville, Kentucky, the Cane Run Generating Station opened in 1954. By 1969, it expanded to include six coal-fired units producing 943 MW of total capacity. Units 1, 2 and 3 were retired in 1987, reducing the facility s output to 563 MW. In 2011, LG&E and KU revealed its plan to phase out approximately 800 MW of coal-fired facilities and transition to a state-of-the-art fleet that utilizes natural gas, hydro and solar power. That plan included retiring Cane Run Units 4, 5 and 6 by 2016. After six decades, the coal-fired power generation era at Cane Run would end; but a rebirth was in the making. 2 CANE RUN UNIT 7

In August 2012, LG&E selected the joint venture of Black & Veatch and PCL Industrial Construction Co. (PCL), to complete engineering, procurement, construction (EPC) and startup scope for Cane Run Unit 7, a new 640 MW, 2 x 1 natural gas combined cycle unit. This unit will support the retirement of the other three coal-fired units using combined cycle technology, so it will have better emissions than the site has right now, said Gary Jamison, Black & Veatch Project Manager. Cane Run Unit 7 features the latest Siemens advanced technology gas turbines the efficiency-enhanced SGT6-5000Fee as well as a Siemens SST6 5000 steam turbine and Vogt Power International HRSGs. Cane Run 7 will provide a cost-effective means for LG&E to continue to provide low-cost, reliable, clean energy in an environmentally responsible way. The Cane Run Generating Station has reduced particulate emissions by more than 50%, sulfur dioxide emissions by 99% and nitrogen oxide emissions by 85% by replacing the coal-fired Units 4, 5 and 6 with the natural gas-fired Unit 7. NOEL LIVELY, MANAGER OF MAJOR CAPITAL PROJECTS, LG&E Completed in June 2015, the facility generates enough power to meet the needs of approximately 660,000 homes in the LG&E and KU service area. Cane Run Unit 7 will provide a cost-effective means for LG&E to continue to provide low-cost, reliable, clean energy in an environmentally responsible way, said Noel Lively, LG&E Manager of Major Capital Projects. BLACK & VEATCH 3

TECHNOLOGY INNOVATION Cane Run Unit 7 used the first two manufactured SGT6-5000Fee turbines in the world, the most technologically advanced gas turbine in Siemens fleet. This makes Cane Run a truly unique power plant. This turbine model met the plant s required output without requiring duct firing in the HRSG, increasing the overall efficiency of the facility and making it one of the most efficient combustion turbine plants in the world. The SGT6-5000Fee also allowed Cane Run Unit 7 to achieve unprecedented quick startup to meet desired emissions limits, further helping the environment and surrounding local community. EFFECTIVE TEAMWORK/OVERCOMING CHALLENGES Every successful joint venture requires collaborative, proactive teamwork and communication. Black & Veatch and PCL s balanced approach of efficient engineering and optimized constructability resulted in meeting the schedule, delivering a successful project and seamless execution along the way. An uncommonly frigid, harsh winter presented challenges during project construction as heavy snowfall impacted the construction schedule. However, the project team deployed ways to mitigate delays to meet established project milestones. With advanced technology turbines and some innovative approaches from Black & Veatch engineering design, we are reducing emissions quickly for the community and utility with fast startup and shutdown, said Gary Jamison, Project Manager, Black & Veatch. Cane Run Unit 7 is also the first combined cycle combustion turbine power plant in Kentucky, making it the most technologically innovative generating station in the state and setting the precedent for future local combined cycle plants. Cane Run Unit 7 is located near residential areas and the Ohio River, which required more manpower and equipment to prevent disruptions. The project team protected residents from coal and construction dust through continual watering and utilized on-site truck washes to avoid tracking mud from the jobsite into nearby neighborhoods. 4 CANE RUN UNIT 7

SUPERIOR SAFETY OUTCOME/RETURNING WORKERS HOME SAFELY Safety was a top priority throughout every phase of the project, from engineering through construction and turnover. The Cane Run Unit 7 project team implemented a rigorous, proven safety program, and Black & Veatch safety leaders were on site continually, to ensure full program awareness and implementation by the entire team. The safety program included a Construction Hazard Assessment (CHA) to identify major project risks and plan for controls before workers first stepped onto the jobsite. Moreover, the CHA incorporated better engineered safety protections, such as fall protection railing systems, into the design of the facility. Using the CHA, the team then developed a comprehensive Job Hazard Analysis (JHA) for specific work tasks that served as the basis for the project s fall protection plan. A Pre-Job Safety Instruction (PSI) was also utilized to provide detailed instructions for workers before the start of each task. The PSI required the participation of all crew members to help identify hazards and corrective actions based on the actual location of each assigned task. Another critical component of the safety program was the requirement that all professionals on site maintain a personal safety log that could be inspected by anyone at any time. This practice helped ensure safety remained at the forefront of each professional s focus at all times. The results of Cane Run Unit 7 s safety program are remarkable. The project required more than 2.3 million man-hours to complete and had zero lost-time incidents. A recordable injury rate of 0.3 demonstrates the project s excellent safety outcome. It should be noted that Cane Run Unit 7 was recognized as PCL s 2014 Bob Tarr Safety Award winner for its superior safety record. DEMONSTRATED SAFETY SUCCESS: 2.3 MILLION MAN HOURS WITH ZERO LOST-TIME INCIDENTS. BLACK & VEATCH 5

COMMUNITY IMPACT/MAKING LIVES BETTER Black & Veatch wanted to ensure that Cane Run Unit 7 had a long-lasting positive impact on the local community - in ways beyond providing cleaner, more reliable power for approximately 660,000 homes. Making lives better for residents of the Louisville Rescue Mission, a homeless shelter located in downtown Louisville, was also part of the plan. The team refurbished the Mission s day shelter and learning center to make it safer, cleaner and more capable of helping those who are homeless and struggling with life s challenges. The learning center provides computer courses, online classes and other learning programs. Additionally, the day shelter provides breakfast for guests, postal services for more than 3,200 people, restrooms, showers, personal hygiene supplies, laundry facilities and storage areas. CRITICAL UPGRADES FOR GREATER IMPACT Walls were torn down to create a more open layout, windows were replaced, a glassed-in security counter was installed and the electrical system of the facility was upgraded as a part of critical shelter renovations. 6 CANE RUN UNIT 7

Not only is this generating unit significant for our state, it s also a significant part of our ongoing efforts to look down the road and, with approval from the Kentucky Public Service Commission, put resources in place that allow us to meet the future energy needs of our customers and evolve with our ever-changing industry. PAUL W. THOMPSON, CHIEF OPERATING OFFICER, LOUISVILLE GAS & ELECTRIC COMPANY/KENTUCKY UTILITIES BLACK & VEATCH 7

BUILDING A WORLD OF DIFFERENCE Black & Veatch is an employee-owned, global leader in building critical human infrastructure in Energy, Water, Telecommunications and Government Services. Since 1915, we have helped our clients improve the lives of people in over 100 countries through consulting, engineering, construction, operations and program management. Our revenues in 2014 were US $3 billion. Follow us on www.bv.com and in social media. GARY JAMISON PROJECT MANAGER P +1 913-458-2061 E JamisonGG@bv.com Black & Veatch Corporation, 2015. All Rights Reserved. The Black & Veatch name 11401 Lamar Avenue, Overland Park, KS 66211 and logo are registered trademarks of Black & Veatch Holding Company. P +1 913-458-2000 W bv.com REV 2015-09