FIRST AMENDMENT TO
ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT
THIS FIRST AMENDMENT ("Amendment") dated October 8, 1999 is made and entered
into by and between Tenaska Georgia I, L.P., a Delaware limited partnership
(hereinafter "Owner"), and Xxxxxx Construction Corporation, a Delaware
corporation (hereinafter "Contractor").
WHEREAS, Owner and Contractor entered into an Engineering, Procurement And
Construction Agreement, dated September 15, 1999, for the engineering,
procurement and construction of a dispatchable electric generating facility to
be located in Heard County in the State of Georgia (the "EPC Agreement"); and
WHEREAS, Owner and Contractor desire to amend the EPC Agreement.
NOW, THEREFORE, in consideration of the mutual promises and agreements
hereinafter set forth, the parties, intending to be legally bound, agree as
follows:
1. Capitalized terms used but not defined in this Amendment shall have the
meaning assigned to them in the EPC Agreement.
2. The definition for "Interconnection Points" is amended in its entirety to
read as follows:
"INTERCONNECTION POINTS" means the points at which the Plant interconnects
with (a) the electric transmission system , (b) the pipeline for the
receipt of natural gas, (c) the water main for the receipt of water, and
(d) the wastewater line for the outflow of wastewater, each of which is
identified in Attachment I of Exhibit "B," provided that if Owner exercises
Option 5 in Exhibit J, "500kV Switchyard" the point at which the Plant
interconnects with the electric transmission system shall be the points at
which the 500kV transmission system terminates at the switchyard deadend
structures.
3. Exhibit J, entitled "SCOPE CHANGE, UNITS, RATES AND OPTION PRICING" is
hereby amended by deleting the prior exhibit in its entirety and replacing
such exhibit with Exhibit J attached to this Amendment.
4. Section 8.1(b) of the EPC Agreement is amended by adding the following
language at the end of such Section:
"In the event that Owner exercises one or more options set forth in Exhibit
J which increase the Guaranteed Lump Sum Price by $1,000,000 or more, in
the aggregate, Contractor shall, within thirty (30) days after the exercise
of such option(s), furnish to Owner an amendment or rider to the payment
and performance bonds previously furnished by Contractor, increasing the
face amount of such bonds by the amount of increase in the Guaranteed Lump
Sum Price which occurs as a result of the exercise of such option(s),
provided that Contractor shall not be required to again increase the face
amount of such bonds as the result of the further exercise of any options
by Owner unless the Guaranteed Lump Sum Price is again increased by
$1,000,000 or more."
5. Section 13.1(b) of the EPC Agreement is amended in its entirety to read as
follows:
"(b) The amount of liquidated damages payable by Contractor pursuant to
Section 13.1(a) shall be limited as follows:
(i) The total liquidated damages accrued by Contractor pursuant to
Section 13.1(a), prior to any reduction under this Section
13.1(b), shall be multiplied by a fraction, the numerator of
which is the aggregate number of days of delay in which the
Unit(s) do not achieve Commercial Operation by the Scheduled
Date(s) of Commercial Operation and for which the performance of
General Electric Company under the Turbine Contract is the
primary cause of such delay and the denominator of which is the
aggregate number of days of delay in which the Unit(s) do not
achieve Commercial Operation by the Scheduled Date(s) of
Commercial Operation ( the "Turbine Portion of Commercial
Operation LDs"). The difference, if any, between total liquidated
damages accrued by Contractor pursuant to Section 13.1(a) and the
Turbine Portion of Commercial Operation LDs shall be the
"Non-Turbine Portion of Commercial Operation LDs." Contractor
shall provide reasonable evidence to Owner to support the number
of days of delay in which the Unit(s) do not achieve Commercial
Operation by the Scheduled Date(s) of Commercial Operation and
for which the performance of General Electric Company under the
Turbine Contract is the primary cause of such delay.
(ii) If the Turbine Portion of Commercial Operation LDs is less than
or equal to the aggregate liquidated damages which accrue under
Section 17.1 of the Turbine Contract, as limited by the GE Cap,
Contractor shall be responsible for the full amount of liquidated
damages determined pursuant to Section 13.1(a).
(iii) If the Turbine Portion of Commercial Operation LDs is greater
than the aggregate liquidated damages which accrue under Section
17.1 of the Turbine Contract, the liquidated damages determined
pursuant to Section 13.1(a) shall be reduced to an amount which
is equal the aggregate liquidated damages which accrue under
Section 17.1 of the Turbine Contract and such amount shall be
added to the Non-Turbine Portion of Commercial Operation LDs to
determine the total amount of liquidated damages to be paid by
Contractor pursuant to Section 13.1."
6. The EPC Agreement as amended by this Amendment shall remain in full force
and effect.
IN WITNESS WHEREOF, each party hereto has caused this Amendment to be executed
in its name and on its behalf by a duly authorized officer in duplicate
originals and effective as of the date first above written.
CONTRACTOR:
2
XXXXXX CONSTRUCTION CORPORATION,
a Delaware corporation
/S/_________________________ By: /S/_____________________________
Witness Title: Vice President
OWNER:
TENASKA GEORGIA I, L.P.,
a Delaware limited partnership
By: TENASKA GEORGIA, INC.
Managing General Partner
/s/_________________________ By: /S/_____________________________
Witness Title: Vice President
3
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EPC - Exhibit J
TENASKA GEORGIA GENERATING PROJECT ----------------------
Page 1 of 3
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1. PROJECT TEAM UNIT RATES
The following rates shall be used for engineering cost adjustments for
scope of work changes:
POSITION CATEGORY HOURLY BILLING RATE
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A. ENGINEERING TEAM
Project Management $109.50
Project Department Engineer $ 98.50
Project Control Manager $ 89.50
Legal/Environment Coordinator $ 95.00
Senior Engineer $ 89.50
Design Engineer $ 81.50
Associate Design Engineer $ 73.00
Project Secretary $ 40.00
Planner/Scheduler $ 70.00
Designer $ 70.00
Drafter $ 51.50
Drafting Supervisor $ 77.00
PC Usage Rate $ 2.80
CADD Usage Rate $ 12.60
B. SITE MANAGEMENT TEAM
Construction Management $109.50
Site Department Manager/Superintendent $106.00
Senior Engineer $ 99.50
Engineer $ 90.50
Associate Engineer $ 81.00
Field Engineer $ 81.00
Secretary/Clerical $ 40.00
The above hourly rates are all inclusive of indirect labor cost, overhead and
profit. Direct expenses such as long distance telephone expenses, computer
charges, prints,
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EPC - Exhibit J
TENASKA GEORGIA GENERATING PROJECT ----------------------
Page 2 of 3
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reproduction, traveling, and living expenses, cost paid by the Contractor to
third parties, and other direct expenses associated with scope of work changes
shall be charged in accordance with the Contractor's standard expense rates.
The above hourly rates are valid through an Authorization to Proceed of April
17, 2000. Hourly rates shall be escalated in accordance with Exhibit P of the
EPC Agreement if Authorization to Proceed occurs after April 17, 2000.
The following rates shall be used for construction cost adjustments for scope of
work changes:
POSITION CATEGORY HOURLY BILLING RATE
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General Xxxxxxx $42.36
Xxxxxxx $39.79
Journeyman $37.22
Helper B $24.39
Helper A $34.53
Laborer - Common $16.62
The above rates are all inclusive of indirect costs, hand tools and consumables,
overhead and profit; however, these rates do not include construction equipment
costs. When using the above unit rates, normal changes will be supervised by
on-site staff at no charge. However, in the event the scope of change requires
additional Contractor staff to be assigned, or current staff to be assigned
longer to the Project, the Owner will be billed at the Site Management Team
rates.
The above rates are valid for an Authorization to Proceed date of April 17,
2000, and for work performed through May 1, 2002. Rates shall be escalated in
accordance with Exhibit P of the EPC Agreement if Authorization to Proceed
occurs after April 17, 2000, or if extra work is performed after May 1, 2002.
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EPC - Exhibit J
TENASKA GEORGIA GENERATING PROJECT ----------------------
Page 3 of 3
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III. OTHER RATES
On-site Subcontractor's Work Subcontractor's Invoice + 10%
Construction Equipment
Contractor Owned 100% of Blue Book for operating
cost. 85% of Blue Book for owner-
ship cost.
Outside Rent Cost + 10%
Engineered Equipment and Invoice + 5%
Material (Non-Subcontract)
General Electric Changes At Invoice
IV. OPTION PRICING
1. DELETE GAS CHROMATOGRAPH -$45,000
2. DEDICATED TRAIN (NOT TO EXCEED) $170,000
In accordance with Article 2(s) of the EPC Agreement.
3. 55 DBA NOISE LEVEL AT 1,200 FEET $600,000
If noise option is not exercised prior to June 1, 2002, escalation
charges of $30,000 shall be added to the above price.
4. REDUCE BUILDERS ALL RISK DEDUCTIBLE -$125,000
If Owner obtains All Risk Builder's Risk insurance policy with a
deductible amount for Testing (to apply only to losses arising out of
hot testing) of $250,000, rather than $500,000. (Refer to Art 15.5 of
the EPC Agreement.)
5. 500kV SWITCHYARD $6,655,585
Contractor to provide 500kV switchyard in accordance with the attached
"Specification for 500kV Switchyard" dated 10/6/99. Price includes the
payment and performance bond premium.
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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1.0 SCOPE OF WORK
1.1 INTRODUCTION
The Contractor shall be responsible for the design, engineering,
equipment and materials procurement, construction, commissioning,
start-up, and testing of the work. The scope of work shall include
all tasks necessary to provide the Georgia Integrated Transmission
System (ITS) and the Interconnecting Utility (IU) a complete and
functional switchyard in conformance with the performance
parameters indicated in this Specification and acceptable to the
IU. The electrical one line and site plan drawings included in
Attachment I & II shall be used as a guide. The Contractor may
modify them, as his design requires, subject to approval of the
Owner and the IU. The engineering, procurement and construction
services to be performed by the Contractor shall meet the
requirements of IU. Where references are made in this document to
the Interconnecting Utility (IU), such references shall include
the Utility with which the Owner has contracted for
interconnection, and the Georgia Integrated Transmission System
(ITS) and it's members.
1.2 ENGINEERING AND DESIGN
1.2.1 GENERAL REQUIREMENTS
The Contractor shall be responsible for providing all
engineering and design services required for the
construction of the switchyard. Detail engineering shall
include the preparation of equipment and material
specifications, construction drawings based on
calculations, studies and vendor information, and final
as-built drawings.
The Contractor shall review and comply with all applicable
local, state and federal codes, regulations and standards.
Coordination with the appropriate regulatory officials, and
the IU shall be the Contractor's responsibility.
The engineering and design shall assure that all equipment
and systems fit and work together as integrated systems and
that the design and installation are compatible with
systems provided by others such that their function,
operation, safety and performance are not impaired.
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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All Contractor specifications and design and construction
drawings shall be stamped and signed by a professional
engineer registered in the State of Georgia.
1.2.2 CIVIL WORK
The Contractor shall be responsible for the full
development of the civil engineering and design for the
switchyard. The Contractor shall be responsible for all
underground utilities within the switchyard, final grading
and all other civil work.
The Contractor shall prepare specifications for final soils
exploration and site survey as required for the engineering
and design of the foundations for buildings, structures,
and equipment.
1.2.3 STRUCTURAL WORK
The Contractor shall be responsible for the full
development of the structural engineering and design
including preparation of calculations, drawings and
specifications for all equipment and building foundations,
sub-structures, slabs, switchyard buildings, and steel
structures.
1.2.4 ARCHITECTURAL WORK
The Contractor shall be responsible for the full
development of the architectural design. The architectural
design and specifications shall include switchyard control
building, including roofing systems, wall systems, interior
and exterior finishes, finish and hardware schedules,
window and doors, and architectural materials.
1.2.5 MECHANICAL WORK
The Contractor shall be responsible for the full
development of the mechanical engineering and design within
the switchyard.
1.2.6 ELECTRICAL WORK
The Contractor shall be responsible for the full
development of the electrical engineering and design. The
electrical design, as a minimum, shall include the
following:
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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o Preparation of detailed one-line diagrams of
switchyard showing all relaying and its functions.
o Development of arrangement drawings locating the
electrical apparatus including structural steel and
buswork design, as well as the deadend structures,
bus supports, equipment & switch stands.
o Preparation of relay drawings, wiring diagrams, AC
and DC schematics and metering diagrams.
o Preparation of detailed three-line diagram showing
the phasing and current and potential transformer
connections.
o Preparation of conduit and cable schedules for
control and instrumentation cables.
o Preparation of installation drawings for the
electrical equipment and associated interconnecting
cables.
o Preparation of specifications required for the
installation of equipment and materials.
o Preparation of drawings for lighting.
o Preparation of electrical equipment, motor and
electrical load lists.
o Preparation of grounding drawings showing grounding
method and connections to equipment and structures.
o Preparation of specifications for the lightning
protection system.
o Design of switchyard communication system.
o Design of the DC systems associated with the
switchyard.
o Coordination of tie-in points with the IU.
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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1.2.7 DELIVERY PLACE
The project site is located approximately 2 miles north of
Georgia Highway 34 between Franklin and Newnan, Georgia.
The contractor will be responsible for receiving and safely
transporting the equipment to the plant site.
1.3 CONSTRUCTION, ERECTION AND COMMISSIONING
The construction, erection and commissioning services shall
consist of necessary management, materials, technical advisory
services, supervision, labor and construction aids to install and
make ready for turnover all the equipment and materials being
provided for the switchyard.
2.0 TECHNICAL REQUIREMENTS AND SPECIFICATIONS
2.1 GENERAL
The Contractor shall furnish all engineering, procurement and
construction work, and all equipment, materials, tools and other
requirements necessary to provide a complete switchyard in accordance
with the requirements of the scope of work of this RFP. The technical
requirements and specifications in this section describe the design basis
and minimum level of quality for equipment, systems, materials and work.
The switchyard and associated equipment and facilities shall be designed
and constructed in accordance with the Interconnecting Utility (IU)
standards.
The Contractor is encouraged to define to any deviations from these
specifications which, in the opinion of the Contractor, would improve the
quality, appearance or performance of the facility. The deviations from
these documents require written approval by IU.
It is the Contractor's responsibility that equipment and materials
furnished and the design and construction work be in conformance with all
applicable codes, regulations and standards.
2.2 HIGH VOLTAGE 500kV SWITCHYARD
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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This section covers the engineering, design, materials, installation, and
testing of the 500kV switchyard for the Power Plant. The switchyard shall
be arranged in a ring-bus configuration with all necessary buses,
dead-end structures, breakers, insulators, switches, communication
equipment, protective relaying, indication & revenue metering, yard
lighting (sufficient for operation & maintenance) and other related
equipment necessary for connecting the three (3) 18/500kV three winding
transformers to the IU 500kV transmission system. The switchyard shall
have provisions for the IU local and remote permissive and trip control
and metering indication and for Tenaska's remote metering and breaker
position indication. The electrical one-line diagram, Attachment IV,
shows the conceptual configuration of the switchyard.
The switchyard shall be designed to meet the requirements of the IU and
all applicable local and national codes and standards.
The Contractor will be responsible for providing and installing the 500kV
dead-end structures for terminating the IU 500kV Xxxxxxx and Plant
Wansely transmission lines at the switchyard. The location of the
dead-end structures shall prevent the crossing of the switchyard
equipment with the transmission lines. The IU will be responsible for
making any changes to the existing transmission lines and connecting the
lines to the dead-end structures. The Contractor will be responsible for
making the connection from the transmission lines to the switchyard
equipment and providing coupling capacitor voltage transformers, line
traps and line tuners at each transmission line termination. The
Contractor shall coordinate all work with the IU.
The Contractor will be responsible for providing and installing the
disconnect switches and take-off structures at each of the plant
generator step-up transformers. The 500kV bus will terminate at the 500kV
bushings of the transformers with the surge arrestors tapped off the bus.
Also, the Contractor shall make provisions for transmitting signals from
the switchyard revenue meters and breaker positions to the power plant
control room.
The Contractor will provide fencing and crushed rock for the switchyard
area and area around the step-up transformers, disconnect switches and
take-off structure. The switchyard Contractor will provide finish grading
within the switchyard area prior to the placement of crushed rock
surfacing.
All switchyard structures, dead-end structures, and take-off structures
shall be designed to comply with the IU standards and specifications. All
structures shall be
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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designed for short circuit duty of 63kA, extreme wind loading per ANSI
A58.1 - 1982, and extreme ice loading per NESC Heavy ANSI C2 - 1997
version. The transmission line dead-end structures shall be self
supporting and shall be designed for the following:
- Conductor Configuration on Line Horizontal
- Conductor Size 1113mcm, 45/7 ACSR
- Conductors per Phase Three
- Shield Wire Size 3/8 inch EHS Steel
- Number of Shield Wires Two
- Maximum Line Tension per Phase 42,000 lb. (14,000
lb./conductor)
- Maximum Line Angle at Dead-end 15 degrees
- Minimum Phase Spacing at 30 feet
Dead-end
The power circuit breakers shall be three phase, 60 Hertz for
outdoor use on an effectively grounded system. The breakers shall
be of the dead-tank type with required IPO's. Live-tank breakers
are not acceptable. The breakers shall be designed for the
following:
- Seismic Rating Zone 1
- Nominal Voltage 500kV
- Rated Maximum Voltage 550kV
- Basic Impulse Level (BIL) 1800kV
- External Creep Phase to Ground 318 inches (min)
- Interrupting Capability 63 kA
- Interrupting Time 2 Cycles
- Trip Coils - Independent 2
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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The switchyard bus shall have a BIL rating of 1800kV and shall be
designed to withstand a short circuit of 63 kA. All connections,
buswork, hardware, and fittings shall be of the corona free type.
The bus shall be aluminum.
Primary and secondary relaying shall be provided for any fault in
the 500kV switchyard and associated transmission lines such that
at least two independent relays will operate to initiate action to
isolate the fault. The general relaying requirements are as
follows:
- Primary Pilot: Ultras High Speed Stand-Alone Unblocking
Pilot Scheme
- Primary Non-Pilot: Independent Non-Pilot Phase Step
Distance Scheme
- Secondary Pilot/Non-Pilot: Independent Ground Step Distance
Scheme with Unclocking Channel
- Independent Dual Channel Bi-Directional Transfer Trip
Scheme
- Independent Breaker-Failure Scheme for Each Breaker
- Primary and Secondary High Speed Bus Differential Scheme
The primary and secondary relaying system must be connected to
separate bushing current transformers and to separate trip coils
in the circuit breakers and shall operate from two (2) battery
sources. Primary, secondary and auxiliary relays must be connected
so that the failure of one relay will not disable both trip
circuits to a circuit breaker. All pilot channels and pilot
relaying systems must be compatible with the pilot relays and
channel equipment at the remote end of the 500kV line. An
independent Sequence of Events Recorder (SER) and Remote Terminal
Unit (RTU) are required to meet operational requirements.
Out-of-Step relaying and Digital Fault Recorder may be required to
meet system stability and operational requirements.
The controls and relays shall be powered from a dedicated,
redundant, 125 V dc power system consisting of two battery
chargers and the two (2) station batteries located in the battery
room of the Control Building. Two (2) 480 V power feeds from
redundant dry-type transformers and panels in the power plant
shall be installed to provide power to the switchyard control
building.
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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The Contractor shall provide the electrical panels and
transformers at the switchyard for use at the required voltage
within the switchyard facility.
A complete ground grid shall be designed and installed for the
substation. The ground grid shall be designed for 63 kA short
circuit duty for1/4second. The touch and step potential of the
ground grid shall be less that the allowable shown in IEEE
Standard 80.
The Contractor shall perform the required grounding study.
The following is a preliminary list of equipment and materials for
the 500kV switchyard. The Contractor shall be responsible for
determining the actual quantities required subject to IU approval:
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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EQUIPMENT/MATERIAL LIST FOR 500kV SWITCHYARD
DESCRIPTION QUANTITY
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CIRCUIT BREAKER, 500kV, 1800kV BIL, 3000A. continuous, 3
63kA interrupting, 2 cycle interrupting time, w/4 sets of BCT's relay
accuracy, 2-trip coils
TRANSFORMER, potential 500kV-120V. w/2 secondary windings 9
TRANSFORMER, current, 500kV (for metering) 6
SWITCH, airbreak, motor operated, 500kV, 3000A continuous, 1 lot
100kA mom. (See one line diagram)
RELAYING, transmission line, pilot (primary and secondary) 4 lots
RELAYING, transmission line, non-pilot (primary and secondary) 4 lots
RELAYING, bus differential (primary and secondary) 2 lots
RELAYING, breaker failure 3 lots
TRANSFER TRIP EQUIPMENT (dual channel, bi-directional) 4 lots
DCS EQUIPMENT (To be installed in Generator Control Room) 1 lot
SCADA equipment 1 lot
FAULT RECORDER, DIGITAL 1 lot
SEQUENCE OF EVENTS RECORDER 1 lot
FERRORSONANCE PROTECTION 1 lot
COMMUNICATION EQUIPMENT PER IU SPECIFICATIONS 1 lot
REVENUE METERING complete with bi-directional registers (primary and backup) 2 lots
BUSWORK AND CONNECTORS 1 lot
INSULATORS, 500kV 1 lot
CONDUIT AND CABLE TRENCH 1 lot
POWER & CONTROL CABLE with Cu shielded insulation 1 lot
CONTROL BUILDING AND ACCESSORIES, climate controlled 1 lot
BATTERY AND BATTERY CHARGER, 125 volts 2 lots
STRUCTURAL STEEL 1 lot
GROUNDING 1 lot
HARDWARE 1 lot
REINFORCING STEEL, ANCHOR BOLTS AND CONCRETE 1 lot
FENCE 8' Minimum (7' fabric, 1' xxxx wire) 1 lot
MISCELLANEOUS 1 lot
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TENASKA GEORGIA GENERATION PROJECT Specification for
500 kV Switchyard
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Date: 10/6/99
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