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In Our Newsletter |
EngagementsPegasus-Global® continues their national and international engagements with current infrastructure, power generation and petrochemical projects. Below are several recent engagements that demonstrate their ongoing presence in the consulting and project management fields. EnergyKansas City Power & Light, Iatan Units 1 & 2 Power Plant, Missouri, USA Kansas City Power & Light, Iatan Unit 1 Power Plant, Missouri, USA Iatan Unit 1Pegasus-Global® was retained by Kansas City Power & Light (KCP&L) to assist in its rate case regarding Iatan Unit 1 Power Plant environmental upgrades and common facilities before the Missouri Public Service Commission and separately before the Kansas Corporation Commission (KCC). Iatan Unit 1 environmental upgrades include emission reducing upgrades that use available technologies to reduce carbon and other emissions on a coal fired generating plant originally completed in the early 1980's. Dr. Kris Nielsen testified in the Missouri PSC and KCC regarding the proper prudence standards, KCP&L's management decision making under that standard, and the applicable in-service criteria. KCP&L reached a settlement with all parties to Missouri rate case that allows costs of the capital project to go into rate base. This rate case is the first docket to consider the prudence of electric power generating facility capital costs in Missouri since the Calloway Nuclear Plant went into service nearly 20 years ago.
Iatan Unit 2Pegasus-Global® was retained by Kansas City Power & Light (KCP&L) to assist KCP&L in its rate case regarding the prudency of the construction of the Iatan Unit 2 super critical pulverized coal-fired power plant before the Kansas Corporation Commission (KCC). Dr. Kris Nielsen provided both written direct filed testimony and oral testimony in the KCC regarding the prudency of the KCP&L decision-making process and decisions regarding the construction of Iatan Unit 2.
Levy Nuclear Units 1 & 2, Florida, USAPegasus-Global® was retained by Progress Energy Florida (PEF) to perform an independent review to determine whether PEF made a reasonable and prudent decision to continue with the Levy Nuclear Plant project (LNP), and to evaluate the existing terms and conditions of the Engineering/Procurement/Construction (EPC) agreement in place. Progress Energy had decided to continue with plant construction and focus primarily on obtaining the Combined Operations License (COL) for the LNP from the Nuclear Regulatory Commission as well as to obtain other necessary permits and licenses, deferring most other LNP work until the COL was obtained. Pegasus-Global® determined that PEF reasonably and prudently implemented its management decision. Pegasus-Global® also found that PEF employed existing terms and conditions of the EPC agreement that were included to address situations just like the schedule shift PEF faced on the Levy Plant. These particular terms and conditions were reasonable and prudent under the circumstances and they were reasonably and prudently employed by the PEF to preserve the contractual benefits under the EPC agreement while implementing PEF's decision to amend the agreement. Dr. Galloway filed written direct testimony which was stipulated to by all parties. Bellefonte Nuclear Power Plant, Jackson County, Alabama, USATennessee Valley Authority (TVA) Executive Management embarked on an extensive review and evaluation as to how best address TVA's electric generation needs. Based on this work, TVA management was proposing to the TVA Board of Directors (BoD) to complete the construction of Bellefonte Nuclear Plant Unit 1 (BLN1). As part of good prudent utility practice, TVA Executive Management sought to engage a team of senior experienced experts to conduct an independent review and assessment of the TVA decision-making process which arrived at the proposed recommendation to complete BLN1. Consequently, Pegasus-Global® was engaged by TVA to perform an independent review and assessment of the BLN1 information package to be presented to the TVA BoD. In conducting its independent review and assessment, Pegasus-Global® employed a team of four senior experienced professionals who have worked together continuously in the power industry since the 1970's through to the current day. Pegasus-Global® began its assessment of the BoD information package for TVA in January 2010, initially examining each iteration of the information in that package to identify gaps, inconsistencies or conflicts in the information or data which, in Pegasus-Global®'s opinion was necessary to enable the TVA BoD to reach a fully informed decision regarding the restart and completion of the BLN1 project. During that period Pegasus-Global® reviewed hundreds of documents, TVA analyses and reports, and interviewed TVA management and consultants who participated in the preparation of the BoD package material. With every iteration of the information package released by TVA, fewer gaps, inconsistencies or conflicts in the information and data were identified by Pegasus-Global®; and with the latest iteration of the TVA BoD information package Pegasus-Global® was satisfied that the package contained that information necessary for the BoD to reach a fully informed decision and that the information and data provided were consistent and aligned. Georgia Power, Vogtle Nuclear Power Plant 1, 2, 3, 4, Waynesboro, GA, USA Vogtle Nuclear Generating Station, Waynesboro, Georgia, USA. The Georgia Public Service Commission (PSC) approved Vogtle Units 3 and 4 on March 17, 2009. By a 4-1 vote, the Georgia PSC approved not only the construction of the two Westinghouse AP 1000 reactors planned for the site near Waynesboro, Ga., but also the recovery of some of the project's costs through electricity rates starting in 2011, before the reactors enter service. Southern Company requested the Georgia PSC's certification for its subsidiary Georgia Power Company. Another subsidiary, Southern Nuclear Operating Company, would build and operate the reactors. The Georgia PSC set Georgia Power's "certified cost" at $6.446 billion. Because Georgia Power owns 45.7 percent of the plant, this would translate to a cost estimate for the entire plant of $14.1 billion. The process set up in 2007 by the Georgia PSC required Southern to go through an extensive consideration of alternative power sources, sites, and overall approaches to planning (such as demand side management). In the end, the Georgia PSC agreed with Southern that new nuclear power at Vogtle is the preferred option. Dr. Kris Nielsen testified on the prudence of the management decisions and processes used by Georgia Power in the Georgia PSC hearings in support of the Georgia Power filing for Vogtle 3 and 4's certification, including the selection of Toshiba/Shaw and the Engineering Procurement and Construction contract. The same team of senior Pegasus-Global® personnel who performed a prudence review and testified regarding Vogtle 3 & 4 had previously performed an evaluation of prudence of Vogtle 1 & 2 at the time these two units were constructed. Dr. Kris Nielsen also testified in the Georgia PSC rate case hearings regarding Pegasus-Global®'s evaluation on the prudence of management decisions and processes used by Georgia Power in constructing Vogtle 1 & 2. Duke Energy Indiana, Integrated Gasification Combined Cycle, Indiana, USAPegasus-Global® planned and conducted an independent audit of Duke Energy Indiana’s (DEI) management of the planning and execution of the $2.88 billion Edwardsport IGCC Project. First, the prudence audit examined DEI’s project management processes, metrics and procedures to ascertain if those project management processes and procedures conformed to accepted industry standards. Secondly, Pegaus-Global examined the actions and decisions of DEI to ascertain if those actions and decisions were prudent (as defined by Indiana state regulations and case precedence). The results of the Edwardsport IGCC Project prudence audit were presented by Pegasus-Global® in both pre-filed and oral testimony before the Indiana Utility Regulatory Commission in November 2011. Report/testimonies:
USA Power Plant Conversion (Coal to Bio-Mass)Pegasus-Global® was engaged by the Owners of an existing coal fired power facility to review and analyze the Owner's plans, process and procedures for conversion of that facility from coal to bio-mass fuel. The review included an examination of the technology change out plans, the corporate and project management plans, the engineering and construction plans, the proposed bid and contract documents. Pegasus-Global® conducted an evaluation which was then shared with the Owners, specifically highlighting concerns with the plans, procedures and documents which posed the greatest risk to the Owners of the facility. This evaluation is currently being used by the Owners to re-assess the project from a number of perspectives and remains a confidential, on-going engagement for Pegasus-Global® at this time. Nations Petroleum – Steam Flood ProjectPegasus-Global® provided strategy advisory services to Nations Petroleum's Executive Management regarding the EPC contractor and the services rendered with respect to one of its steam flood projects. The project involved secondary and enhanced recovery efforts by the introduction of heat to the producing zones in the form of steam flood and/or direct fire flue gas injection. Producing wells were infused with casing vapor recovery used to collect gas from the large number of wells. Sacramento Municipal Utility District Cosumnes Power Plant, California, USA SMUD Cosumnes Power Plant, California, USA Pegasus-Global® was engaged by a Municipal Utility District in California to audit the progress of work on a large combined cycle power project under construction in mid-2004. Under the risk management engagement Pegasus-Global® audited the actual progress of the Project against the status of the Project as reported by the Contractor. During the audit it became apparent the actual progress was far short of the reported progress, and in addition, that the Contractor was not executing the Project to the terms and conditions of the contract established between the Contractor and the District leading the District to terminate the Contractor. Pegasus-Global® has been involved with the District since 1995 on a variety of engagements. InfrastructureAlaska Way Viaduct Replacement Project – Seattle, WA, USAWashington State Department of Transportation Project - (WSDOT) - Independent Review Panel. The 2011 Legislature directed the WSDOT to form an Expert Review Panel (ERP) to conduct an independent financial and technical review of the $3.1 billion Alaska Way Viaduct Replacement Program’s key assumptions, financial plan, and risk management plan as the tunnel project moves into final design and construction. The independent review includes the following:
Governor Gregoire, the Washington House and Senate transportation committee chairs and the Transportation Secretary selected three members for the panel. Each member’s expertise is noted in parentheses, below:
In February 2012, the panel submitted their report and recommendations to the Legislature’s transportation committees, the Governor’s Program Oversight Committee and the Transportation Commission. Additionally, the ERP was tasked to provide ongoing reviews and updates of the Program’s status and an additional report was submitted to the Legislature’s transportation committees, the Governor’s Program Oversight Committee and the Transportation Commission in February 2013. Columbia River Crossing BridgePegasus-Global®'s Dr. Galloway, was appointed by the Governors of Washington and Oregon to serve on the seven-person Independent Review Panel (IRP) regarding the $3.5 billion Columbia River Crossing Bridge (CRC) proposed to replace the aging Interstate 5 bridge crossing the Columbia River between Washington and Oregon. Recognizing the need to maintain momentum by the CRC, the Governors charged the IRP to do the following:
Their efforts consisted of extensive public briefings, community comment sessions and independent research conducted by members on specific topic areas. The IRP held public meetings where relevant project presentations were made by the Washington State Department of Transportation (WSDOT), the Oregon Department of Transportation (ODOT), TriMet, C-Tran, project sponsors, key stakeholders and the public. Community comment sessions were held on three separate occasions. The IRP also attempted to communicate with other interested parties, undertook their own original research into project issues and otherwise sought to gain a complete understand of the CRC project. The IRP looked at the following areas: context sensitive solutions, NEPA process, bridge design, light rail transit, schedule, cost estimate, risk management, finance, and performance measures. The IRP prepared a written report to the Governors which is being used as a roadmap in moving the project forward. City of Winnipeg, Manitoba, Canada City of Winnipeg, Manitoba, Canada The City of Winnipeg, through their City Auditor, engaged Pegasus-Global® to perform an audit of the entire Capital Construction Program by which the City selects, plans, and executes capital construction projects. The Program Audit was executed in two phases, the first of which examined the City Corporate and Department Level policies, procedures and processes under which the individual capital construction projects were to be planned and executed. The second phase examined specific capital construction projects executed within each of the Departments responsible for various construction projects and included a Water Treatment Project, a Sewer Cast-In-Place lining project, an annual street repair program, a major rail-to-vehicle bypass project, a City Department building, a major four lane surface road project and the expansion and renovation of the City library. Pegasus-Global®'s first objective was to determine if the City Corporate and Department Level policies, procedures and processes were uniform, transparent, identified a single point of accountability and reflected the best practices in the industry. Pegasus-Global®'s second objective was to determine if the individual projects examined practiced the City Corporate and Department Level policies, procedures and processes identified in the first phase of the program management audit during the execution of each of those projects. In instances where Pegasus-Global® identified that there was no applicable guidance from the City Corporate or Department Levels or where the project had adopted procedures and practices which did not align with the City and Department Level guidance, Pegasus-Global® examined the procedures and practices followed by the particular project to determine if those procedures and practices were uniform, transparent, identified a single point of accountability and reflected the best practices in the industry. In a final phase Pegasus-Global® was asked to provide the City of Winnipeg with recommendations to improve its planning, management and execution of capital construction projects. A formal, detailed Program Management Audit Report of findings was prepared for the City Auditor for presentation to the Chief Administrative Officer, Chief Financial Officer and the City Council Capital Project Committee.
Cross London Rail Link, London, United Kingdom Isle of Dogs Station, Cross London Rail Link, UK Pegasus-Global® was appointed (January 2007) as the Independent Reviewer for the United Kingdom Government, UK Department for Transport (DfT) and Her Majesty's Treasury (HMT), relative to the Cross London Rail Link (Cross Rail). The Project at that time was estimated as being in excess of £12 billion and would take over seven years to complete. It is the most complex public works project ever undertaken in the United Kingdom. The full scope includes detailed engineering, procurement, construction and commissioning of train service across London. Pegasus-Global® was engaged by the United Kingdom government (the Department and Her Majesty's Treasury) to conduct a review of the validity of the estimate; a review of the risk process and risk register developed at that juncture of the Project and to perform a standard of care analysis of various (technical, cost and schedule) planning and management elements of the Project as the Independent Reviewer. The Pegasus-Global® team worked directly for the Department for Transport in conducting this independent review, which was then submitted to the Department for Transport, Her Majesty's Treasury and Parliament. Pegasus-Global®'s analysis confirmed that the project execution team (a joint venture of Cross London Rail Link, London Underground and Bechtel) had acted prudently in the preparation of the specific analyses, used Best Industry Practices and Procedures, and the results were reliable. Upper Rouge Tunnel, Detroit, Michigan, USA Upper Rouge Tunnel, Detroit, Michigan, USA The Upper Rouge Tunnel project included chlorination facilities, a 300-foot deep tunneling access shaft, two 8-foot diameter access shafts, a building housing dechlorination facilities, and several effluent diffuser shafts in the Detroit River. The project was partially funded by the federal and state government funding and as such had to comply with specific requirements and regulations relative to its execution. Dr. Nielsen and Dr. Galloway were retained by the Preliminary Design Engineer (Parsons Brinkerhoff) to participate as a member of a five-person Independent Review Panel (IRP) to review the proposed Project Design, Proposed Deliverables and Risk Management Project Specific Assessments conducted to date on the Upper Rouge Tunnel. The tunnel project consisted of over 23,000 feet of tunnel at both 25 foot and 35 foot diameters in varied soil conditions and varied land use permits and requirements. Issues reviewed included design, regulatory, civil design and construction, public impact and construction of a combined sewer overflow system. During the periodic on-site review team meetings, the IRP made both oral and written recommendations of the work performed to date during the project to both the Preliminary Design Engineer and to the Government Client. Fish Barrier Project, Washington, USA Fish Barrier Project, Washington, USA Pegasus-Global® was engaged by the Case Area Tribes to provide an independent Class IV estimate and an analysis and opinion concerning cost estimates developed by the Washington State Department of Transportation (WSDOT) for the correction of certain road culverts which have been determined to be barriers to fish migration through various water courses within the State of Washington. Specifically, during the construction of various roads, fish bearing water courses were directed through culverts passing under those roads which, for a variety of reasons, have been discovered to represent "barriers" to the migration of those native fish populations. Approximately 1,200 culverts have been identified by the State as barriers to migration of the fish populations to and from their natural inland habitat areas. State of California Program Management Audit of the State’s Court Construction Program, California, USAPegasus-Global® was engaged by the State of California to provide a GAPP Audit? and GAPP Assessment? and GAPP Analysis? of its approximately $5B court house construction program, including benchmarking the policies, processes and procedures used by the Administrative Office of the Court ("AOC") against industry best practices. Pegasus-Global®’s final report was filed with the State of California in August 2012. Pegasus-Global® is assisting the Court Facilities Working Group in its ongoing oversight of the Judicial Branch’s court construction program and the implementation of the assessment recommendations. For a complete list of engagements of for more industry specific engagements, please contact us. |
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