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Table 1.5-1. Estimated Overhead, Construction, Legal Expenses, and Contingencies
The current estimated overhead, construction, legal expenses, and contingencies are approximately $890,690,000 as presented in Table 1.51.5-1 below.
Project EPC Costs Cost
Allowances $513,000,000
Markups $377,690,000
Total $890,690,000
Note: Estimated allowances include unlisted items (10%), civil contingency (20%), and electrical & mechanical contingency (10%). Estimated markups include Contractor home office and profit (12.5%), contractor insurance (3%), and sales tax (6%).
1.6 Investment Tax Credit
The Inflation Reduction Act of 2022, which went into effect on August 16, 2022, establishes an Investment Tax Credit (ITC) for stand-alone energy storage, including pumped storage. The base credit is 6 percent, to which a 5x multiplier is applied for meeting prevailing wage and apprenticeship requirements, which brings the ITC to 30 percent. There are also 10 percent bonus adders for location in what the Act defines as an Energy Community and for meeting a certain threshold for the value of domestic content used in construction of the facility. The Project is expected to qualify for the 6 percent base, the 5x multiplier (bringing the base to 30 percent), the 10 percent bonus for Energy Community, and the 10 percent bonus for domestic content, bringing the total ITC to 50 percent.
2.0 Cost of Existing Structures and Facilities
The Project will use the existing Seminoe Reservoir as the Project’s lower reservoir. The lower reservoir is not located within the Project Boundary. Seminoe Reservoir is managed by Reclamation as part of the Kendrick Project on the North Platte River. The Kendrick Project was authorized by Congress in 1933 and $12 million was appropriated for its construction (Klajic 2000). Reclamation operates Seminoe Dam and Reservoir for irrigation and electric power generation. Current Reclamation operations will not be affected by the Project’s pumped storage operations.
3.0 Federal Takeover
The Applicant is filing for an original license; therefore, the information required in this section is not applicable.
