Power Plant Decommissioning

A PRODUCT AND DIVISION OF STUART B. MILLNER & ASSOCIATES

©

Between the years of 2013-15, there are 153 power plants scheduled to be shut down in North America (according to the EPA). A number of factors contribute to this number, but most notably are the market trends influenced by environmental regulations and concerns.

The nature of the business will always be to adapt to demand, whether made by the market or the law. Therefore, new plants will continue to emerge while old ones will need to be closed and shut down.

The shutting down part is not as easy as it may seem. It involves environmental laws, permits, licenses, an understanding of the market, a system for selling off assets, and much more. This is when Power Plant Decommissioning is used to handle the entire project.

Introduction

What this course answers

WHEN

WHAT

HOW

WHY

WHO

exactly is PPD?

would a company use PPD?

does it work? (This section discusses the SERVICES used for a PPD project.)

performs PPD?

is Power Plant Commissioning (PPD) needed?

WHEN

is Power Plant Commissioning (PPD) needed?

A company determines that it needs to close a power plant (though it’s often more than one).

1.

After the plant is closed, it must perform a shut-down involving environmental procedures, which includes applying for certain licenses and permits.

2.

That company must find a way to market and sell off the assets of its plant, and possibly the real estate.

3.

Instead of performing all of these tasks on its own, it hires an asset management company capable of running the entire project.

4.

WHAT

exactly is PPD?

Power Plant Decommissioning (PPD) is the solution for conducting a power plant closing. It uses a well thought out system to manage and/or perform all of the services needed to finish a shut-down project.

WHY would a company use PPD?

• To maximize recovery of all the plant’s assets• To complete the project on time, within budget, and zero defects• It’s a TURN-KEY solution

HOW does it work?

PPD Services/Steps• Certified Appraisal• Environmental/Remediation• Auction/Liquidation• Scope of Work• Plant Set-Up• Electrical Recovery

• Metals Recovery• Risk Management• Transparent Accounting• Real Estate Management• Safety Protocol• Demolition

Scope of Work (SOW)

The SOW service involves a consultation period during which the client and the asset management team determine what combination of the following services will work best for the project at hand.

IMPORTANT: Throughout EVERY project, PPD offers these essential services:

PPD offers Risk Management services including comprehensive and liability insurance, licenses, workmen’s compensation programs, and tax collection.

Risk Management Safety Protocol

The project manager ensures that all activities conducted by anyone on site are compliant with the stringent guidelines set forth in the Safety and Health Manual, as well as all federal, state, and local regulations

AND

Certified Appraisal

Assets are identified

Assets are given a value

Assets are placed into categories

for sale

AUCTION LIQUIDATIONPut into

accounting software

How it works:

Transparent Accounting

The auction accounting system used for a PPD makes the transition into an ongoing asset management program easy. The data collected is stored in a software program that is readily available for viewing.

THE ASSETS ARE1) Valuated2) Divided into sales categories3) Put into the accounting system

After

…the MARKETING Team creates and delivers brochures, flyers, email blasts, press releases, etc. to the hands, eyes, or email boxes of potential customers.

Then

Two important steps before the auction can begin…

• Provides an Environmental Assessment, Remediation, and an Abatement Firm to prepare any plant for the clean sale of the assets.

• Removes any oil, lead, asbestos, etc. from the property.

Environmental/Remediation Plant Set-Up

• Transforms each facility from its present condition into a proper sales environment

• Led by the project manager

AND

Let the selling begin…!

Auction/LiquidationWhat AUCTION methods are used?

LIVE ONSITE

• In-person live event

• Traditional style auction

• Compete with online customers

LIVE ONLINE

• Auction customers make bids online in real time

• Compete with in-person (onsite) customers

TIMED EVENT

• Each lot (asset) is posted online with final bidding time

• Bids may be placed anytime before the final bidding time

• Lot goes to highest bidder

What items are best sold with the LIQUIDATION method?

• High-value assets• Specialized assets with limited market

More assets to recover…

Recoverable Electrical Recoverable Metals

• Wiring, switch gear, bus, and conduit• All transformers• Motors and motor control systems

All loose metals and steel are included in the sale

THE ONLY ITEMS TO BE CONSIDERED FOR DISCARD ARE PAPER, WOOD, RUBBER, AND TRASH. ALL OTHER TYPES SHOULD BE

CONSIDERED ASSETS AVAILABLE FOR RECOVERY.

For Sale

Real Estate

The asset management team works closely with clients who are interested in selling the real estate property by helping them determine which method will have the most potential value—whether it’s a sale or long term lease.

Demolition

If demolition is needed, the asset management company teams up with an expert affiliate to execute the task.

WHO performs PPD?

What makes special?

Stuart B. Millner & Associates (SBMA) offers its clients a TURN-KEY solution to their power plant closing projects. While many companies could be hired to run and perform the various services needed to shut down a power plant, SBMA not only offers those services, its team of professionals manage the entire project: From a full plant to an empty one.

The Turn-Key Solution

Just to be clear…

Power Plant Decommissioning ©

is both a DIVISION and SERVICE offered by SBMA that executes the following for its clients’ power plant closings:

MAXIMIZES RECOVERYOF ASSETS

1

MANAGES ALL SERVICESNEEDED TO CLOSE THE

PLANT(S)

2

COMPLETES PROJECT ON TIME, WITHIN

BUDGET, ZERO DEFECTS

3

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To learn more about Power Plant Decommissioning, visit sbmac.com

“ We couldn’t have been happier with the outcome and results of the services SBMA provided…

Alex BumgardnerPower Production DirectorAustin Utilities

”