HomeMy WebLinkAbout20211505 Ver 1_Appendix C - Dutchman 230kV Transmission Line Relocation - Initial Estimate Letter_20211013APPENDIX C
DUKE ENERGY COST ESTIMATE (ALTERNATIVE 4 SOUTH EXPANSION)
(' DUKE
ENERGY
Mar. 10, 2019
Jason Conner
Hedrick Industries
P.O. Box 425
Swannanoa, NC 28778
Subject: Cost Estimate for Transmission Line Relocation Request
Dear Mr. Conner:
526 S Church St
Charlotte, NC 28202
Mailing Address:
Mail Code EC090
Charlotte, NC 28201-1006
980-373-1219
It is our understanding that you would like to pursue relocating a section of the Dutchman 230kV
transmission line (Line Index # 2R66/2R3079) between existing structures 23.0E and 28.0E on
your Lake Norman Quarry property in Lincoln County.
The high-level cost of this relocation is currently estimated at $5,037,777. Please note this is a
high-level estimate and is not the final cost of the project. This estimate is based on a theoretical
design and scope of work, outlined below:
Hedrick Industries is requesting that structures 23.0E — 28.0E (2Q, two 2M, two 2F
towers, 2G) be relocated on the Dutchman 230kV line. 23.0E and 28.0E will be changed
out in place while remaining structures will be relocated completely. Install (5) 2N towers
and (3) 2R towers. Structure 28.0E is in the flood zone so it will require concrete piers,
and due to the proximity to both the gas line and the flood zone, all other towers will
require concrete piers as well. Install (4) SP6/120' pullout poles with guys to support
white circuit/OPGW.
Conductor work to include:
Removals: —24,900' , —4150', —4150'
Installations: —41,460', —6910' , —6910'
NOTE: This proposed relocation is all on Hedrick Industries property, but will require
administrative real estate work to acquire/release Right -of -Way (ROW) prior to
construction.
This estimate also assumes the following:
The requestor will grant Duke Energy an easement prior to the physical relocation
taking place. The existing ROW in question will be released after the structures have
been removed.
o New ROW to be acquired will be free of encroachments per Asset Protection
Rules & Restrictions.
o It is assumed the ROW will be acquired in a timely manner and will not cause
a delay in the project schedule.
• All work associated to relocate this line will take place on the requestor's property. If
access from another property owner is required, the requestor will secure this for
Duke Energy, or provide alternate access.
• Natural Resource Assessment required after engineering has been completed. Both
Sediment & Erosion Control permit and floodplain permit are required. No
construction work can begin until these environmental permits are approved.
• CPCN permit required when relocating a 230kV transmission line. This permit
process typically takes 6+ months and can begin as soon as the line design is
complete. No construction, material pre -order, access/erosion control, or ROW
acquisition can take place until this permit has been approved.
• Significant access/erosion control costs associated with this work (>$500,000). Tree
clearing/trimming also required.
• Assuming single circuit outage availability on this line during certain months of the
year, therefore (4) temporary pull-out poles will be required to remove structures
23.0E and 28.OE.
The project estimate is subject to change should the scope of work or any project assumptions
change.
The estimate is broken down as follows:
Project Estimate
$4,510,096
CIAC Tax Gross Up (11.7%)
$527,681
Total Estimated Project Cost
$5,037,777
Payment#1: Initial Deposit, Project Development $1,007,555
Payment #2: Construction & Material Pre -Payment $4,030,222
Payment/Reimbursement #3: Final Billing/Cost TBD
True -Up
Transmission line relocation projects can often take 18-24 months to complete from the time the
project is initiated to completion. To initiate this project you must review this estimate letter and
provide written approval to proceed. Once written approval is received, you will be sent an initial
invoice in the amount of $1,007,555 (Payment #1) to cover project costs through design and
engineering. Please note that engineering will not begin prior to receipt of this payment. If at any
point you wish to cancel this relocation request, the incurred project costs will be totaled and
compared to the current project credits, at which time you may be subject to a refund or invoice
for the difference.
A detailed project estimate will be provided after design and presented to you. If you wish to
proceed with the project, you will be responsible for paying the total estimated project costs,
less the previous payment (Payment #1). This payment (Payment #2) is required prior to
material procurement and the scheduled construction start. At the conclusion of the project, the
actual cost is compared to the sum of prior payments. If the actual project cost exceeds the
estimate you will be responsible for the difference. If the actual project cost is less than the
estimate you will be refunded the difference.
This relocation is with the understanding that you will honor our right of way restrictions, a copy
of which is available upon request. Please be advised, the total ownership of the transmission
assets will remain the property of Duke Energy.
This correspondence is valid for 90 days from the date this letter was sent.
If you have additional questions about this relocation request you can reach me by phone at
980-373-1219 or by email at Iisa.plumley@duke-energy.com. We value you as a customer and
appreciate the opportunity to serve your electric needs.
Sincerely,
Lisa Plumley
Project Manager, Transmission — Carolinas West
Cc: Leah Holleman, Kevin Johnson, Brandon Martin, Craig Garrett, Adam Arrowood