IECM 12.0 beta User Manual > Modules Included with the IECM > Common Input and Result Screens > Costs >

Capital Cost Results

Capital costs results for most technologies are reported in a two-table screen. Capital costs are typically expressed in either constant or current dollars for a specified year, as shown in the Status Bar .

The table on the left contains the capital cost process areas, which vary depending on the technology. The last line of the left table is always:

•Process Facilities Capital: The process facilities capital is the total constructed cost of all on-site processing and generating units listed above, including all direct and indirect construction costs. All sales taxes and freight costs are included where applicable implicitly. This result is highlighted in yellow.

The table on the right contains the plant costs:

•Process Facilities Capital: (see definition above)

•General Facilities Capital: The general facilities include construction costs of roads, office buildings, shops, laboratories, etc. Sales taxes and freight costs are included implicitly.

•Engineering & Home Office Fees: The engineering & home office fees are a percent of total direct capital cost. This is an overhead fee paid to the architect/engineering company.

•Process Contingency Cost: Capital cost contingency factor applied to a new technology in an effort to quantify the uncertainty in the technical performance and cost of the commercial-scale equipment.

•Project Contingency Cost: Capital cost contingency factor covering the cost of additional equipment or other costs that would result from a more detailed design of a definitive project at the actual site.

•Interest Charges (AFUDC): Allowance for funds used during construction, also referred to as interest during construction, is the time value of the money used during construction and is based on an interest rate equal to the before-tax weighted cost of capital. This interest is compounded on an annual basis (end of year) during the construction period for all funds spent during the year or previous years.

•Royalty Fees: Royalty charges may apply to some portions of generating units incorporating new proprietary technologies.

•Preproduction (Startup) Cost: These costs consider the operator training, equipment checkout, major changes in unit equipment, extra maintenance, and inefficient use of fuel or other materials during start up.

•Inventory (Working) Capital: The raw material supply based on 100% capacity during a 60-day period. These materials are considered storage. The inventory capital includes fuels, consumables, by products, and spare parts.

•Financing Cost: This is the cost of securing financing (e.g., fees and closing costs).

•Other Owner's Costs: This is an additional lumped cost, including preliminary feasibility studies, economic development, construction and/or improvement of roads and/or railroad spurs outside of site boundary, legal fees, permitting costs, owner's engineering, and owner's contingency. This cost is site and owner specific.

•Total Capital Requirement (TCR): Money that is placed (capitalized) on the books of the utility on the service date. TCR includes all the items above. This result is highlighted in yellow.

•Effective TCR: The TCR that is used in determining the total power plant cost. The effective TCR is determined by the % TCR Amortized, which is specified on the capital cost input screen . This result is highlighted in yellow.