Springerville 4
- 1. 6lectric Wh;des rssuE2| 2010 A I A Ct r I C sFonreHroNcRrncArENERG'rssuEsg t g Tke Pubf,co A Yatr P-rects Tratts(ortt Re8alofzns fnfa Pafenfio, ) Plorrshr;t[ Puter firc Aix(or tl.e Futwe Prey.ent ftrc Flost S?t ^gerYi
- 2. L LL , - . - - : f - '-5t -1- '*, : y,,rww_synyrvllett p/orrr af fl.€ Tu,c;vln 6lectr;c_ Pa,te.(T6Fl p/ont; * Synyrville, ftriurw, ;s s(a,.,tr;n tk {reyatdt n early 2006, it became apparent that the attempt to extend the life of the 1,500 MW coal fired Mohave Generating Station (MGS) would not be successful (SRP's20"/" porrion of MGS equaled 300MW's)' SRP then had to scrambleto add new coal fired power generatlon to replacethat lost by Mohave's closing.The option selected was to construct Unit 4 at the Tucson Electric Power (TEP) plant site outside Springerville,Arizona. Unit 4 had received all the necessarypermits when both Units 3 and 4 were permitted. Tri-State'sUnit 3 was nearing completion. SRP's Board approved moving forward with the Sprir-rgerville4 project on May L, 2006. The 400MW subcriticalplant would beessentiallyidenticalto Unit 3, with the addition of various modifications intended to improve plant operability and reduce maintenance costs. Unit 4 wor-rldalso have the benefit of "lessons learned" from the constructionand initial operationof Unit 3. Unit 4 would be owned by SRPand operated by TEP. Detail Engineering commenced immediately as studies and preliminary engineeringwere unnecessarydue to the replication of Unit 3. The boiler, steam turbine, generator and air quality control system were awarded to the same suppliers who had provided the Unit 3 equipment. The project schedule was 44 months from start to commercial operation. (A typical coal plant scheduleis 60 months or more.) The prolect had to be completed and placed into commercial operation by the end of 2009. This was dictated by the expiration of the Air Permiton December3L, 2009. Fortunateln SRP had an in-houseteam of experienced project management professionals who had recently constructed 1,L00 MW's of gas fired, combined cycle power generation. Little did they know that Springerville4 was headed into the "perfect storm" in terms of material, equipment and construction labor cost escalationcoupled with a scarcity of qualified suppliers and contractors. The ,'r"/t-.' ;ri {b} 's projectwould ultimatelycost one billion dollars. Becauseof the short schedule,it was determinedthat the substructures(concreteand underground)work would need to be awardedon unit pricesbasedon preliminaryquantities. The award was made at approximately 507" completion of the substructuresengineering.This, in turn, led to extensive revisionsin constnction drawings.Drawing revisionsof 15 to 20 becamecommonplace.In fact,therewere instanceswhere concretepours were actually halted due to the last minute receiptof a reviseddrawing. This was further exacerbatedby the very late receipt of vendor drawings. The vendors were overloadedand had no ability to staff-up with experienced people to handle their 2006 -2007 workloads' Along with other new power plants, SRP would also be competing for resourceswith many "back-end" emissionscontrolsproiects mandated by the EPA. Structural steel erection needed to commence within a yearof the project'snotice to proceed.This was another challengeasChinawaslockingup worldwide steelproduction. SRP immediately went to a trusted steel supplier they had usedon previousproiects.They told the steelsupplierto get started and the paperwork would follow. The steelsupplier turned down much larger proiects just two weeks after SRP contractedwith them becausethey had reachedtheir capacity limit. In fact, they had to use their alliance agreementswith other steelsuppliers to ensuretimely delivery of SRP'ssteel. The steel was fast-tracked through mill rr-rns,fabrication drawings, shop fabrication and jobsite delivery. However, it still became necessaryto issuea cost-plus contract to an industry renowned steel erector who did exceptionally well under very difficult circumstances;performing any necessary modifications to the steel in the field as drawing revisions continuedup to the last minute. Next, a boiler erectorneededto beselected.Unfortunatel5 there were no takers. Everyone was busy on other projects.
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