Analysis - The Institute for Southern Studies

EPRI, and other organizations. Exhibit 4C below displays the unitized capital costs and Exhibit 4D below displays the unitized O&M costs
from the study updated for this RIA to 2009 price level.
Using the 2009-updated mean unit capital and O&M cost estimates displayed in Exhibit 4C and Exhibit 4D, provides the following cost
estimates for conversion to dry disposal, based on extrapolation to 22.4 million tons per year baseline wet CCR (i.e., wet fly ash, wet bottom
ash, wet FGD, wet gypsum, wet other CCR) disposal in impoundments at 158 of the 495 electric utility plants which have a subtotal of
180,901 MW nameplate total capacity:
o Capital cost: (180,901,000 kilowatt capacity for 158 electric utility plants with surface impoundments) x ($37.60 dry conversion
capital cost per kilowatt capacity from Exhibit 4C) = $6,810 million capital cost
Annual equivalent cost: ($6,810 million) x (0.07246 capital recovery factor @7% & 50-years) = $494 million/year
o O&M cost: (22.4 million tons per year wet CCR disposed in impoundments) x (-$17.40 cost savings per ton to manage for dry
disposal from Exhibit 4D) = -$389 million per year O&M cost savings.
o Total average annualized cost (capital + O&M) = ($494 million/year capital cost) – ($389 million/year O&M cost savings) =
$105 million per year dry conversion cost.
Exhibit 4C
Comparison of Unitized Capital Costs for Wet and Dry CCR Disposal (Source: 1985 EPA Study; $/kW)
Plant Size Categories (MW = megawatts)
Row Summary
Wet or Dry 250 500 1000 2000
Across Four Size Categories
Item Disposal Operation CCR Min Max Min Max Min Max Min Max Min Max Midpnt Mean
1A Fly ash handling/processing Wet $2.3 $6.8 $1.9 $5.5 $1.5 $6.4 $1.3 $3.6 $1.3 $6.8 $4.1 $3.7
1B Dry $2.2 $4.1 $1.8 $3.3 $1.4 $2.7 $1.2 $2.2 $1.2 $4.1 $2.7 $2.4
2 Fly ash storage Dry $4.7 $8.8 $4.2 $7.7 $3.7 $6.8 $3.2 $5.9 $3.2 $8.8 $6.0 $5.6
3A Fly ash transport Wet $3.5 $6.4 $2.7 $5.1 $2.2 $4.0 $1.7 $3.2 $1.7 $6.4 $4.1 $3.6
3B Dry $0.3 $0.5 $0.3 $0.6 $0.3 $0.5 $0.2 $0.5 $0.2 $0.6 $0.4 $0.4
4A Fly ash placement/disposal Wet $15.1 $27.8 $12.9 $23.9 $11.0 $20.5 $9.4 $17.5 $9.4 $27.8 $18.6 $17.3
4B Dry $4.3 $8.1 $3.3 $6.1 $2.5 $4.7 $1.9 $3.6 $1.9 $8.1 $5.0 $4.3
5 Bottom ash
Wet/Dry $2.2 $4.6 $1.7 $3.7 $1.3 $3.0 $1.0 $2.4 $1.0 $4.6 $2.8 $2.5
handling/processing
6A Bottom ash transport Wet $3.0 $5.6 $2.4 $4.5 $1.9 $3.6 $1.5 $2.8 $1.5 $5.6 $3.6 $3.2
6B Dry $0.2 $0.4 $0.2 $0.3 $0.1 $0.2 $0.1 $0.2 $0.1 $0.4 $0.3 $0.2
7A Bottom ash
Wet $6.4 $11.8 $5.1 $9.6 $4.2 $7.7 $3.4 $6.2 $3.4 $11.8 $7.6 $6.8
placement/disposal
7B Dry $1.3 $2.4 $1.1 $2.0 $0.9 $1.6 $0.7 $1.3 $0.7 $2.4 $1.6 $1.4
Summary:
Wet Subtotal (1A+3A+4A+5+6A+7A) Wet (1982$) $32.5 $63.0 $26.7 $52.3 $22.1 $45.2 $18.3 $35.7 $18.3 $63.0 $40.7 $37.0
Dry Subtotal (1B+2+3B+4B+6B) Dry (1982$) $15.2 $28.9 $12.6 $23.7 $10.2 $19.5 $8.3 $16.1 $8.3 $29.0 $18.7 $16.8
2009 Updated Wet Subtotal* Wet (2009$) $72.8 $141.1 $59.8 $117.1 $49.5 $101.2 $41.0 $79.9 $41.0 $141.1 $91.0 $82.8
2009 Updated Dry Subtotal* Dry (2009$) $34.0 $64.7 $28.2 $53.1 $22.8 $43.7 $18.6 $36.0 $18.6 $64.9 $41.8 $37.6
* Note: 2009 price update multiplier (source: ENR Construction Cost Index ratio 2009:to:1982 = 8564/3825) = 2.239
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