The following is an excerpt from exhibit 27, of Apex Clean Energies recently submitted application to the Public Service Commission for a Certificate of Environmental Compatibility and Public Need Pursuant to Article 10 to Construct a Wind Energy Project on Galloo Island, NY
Exhibit 27 Socioeconomic (p.4)
With respect to the Galloo Island Facility, the Applicant reviewed the default project cost values subtotaled by each of the following categories in the JEDI model to determine whether they were on par with the real costs as experienced by the Applicant: Equipment during Construction, Balance of Plant Construction, Labor during Operation & Maintenance, Materials and Services during Operation & Maintenance, Financial Parameters, Tax Parameters, Land Lease Parameters and Payroll Parameters.
Adjustments were made to specific default values and included replacing the default local tax value ($0) with the known estimated annual payment in lieu of taxes (PILOT) value ($816,750); increasing the default value of Land Easements during Construction ($0) to the known $6.3 million cost required for purchasing the Galloo Island parcel containing the turbines ($3 million) and a one-time lease of an underwater parcel for constructing the underwater high-voltage transmission line ($3.3 million); decreasing the default value of Annual Lease during Operating Years ($326,700) to the known value ($0); decreasing the default Total Cost of Equipment during Construction value from $136.8 million to a more reasonable value of $108.9 million (due to a lower cost for turbine components); and increasing the default Balance of Plant Total value from $47.4 million to a more reasonable value of $137.0 million (reflecting the higher cost of island development). The remaining cost values were uncertain at the time of analysis (July 2017), therefore the remaining default values were reviewed and determined to be reasonable estimates based on previous experience in wind energy development by the Applicant.
Full Exhibit
