Analysis of power-plant-construction lead times. Volume 1. Analysis and results

Technical Report · Tue Feb 01 04:00:00 EST 1983

OSTI ID:6344916

Bauman, D S; Morris, P A; Rice, T R

Long and increasingly uncertain leadtimes have created serious problems for utilities by raising capital costs and making planning for future load growth difficult. Today the combination of large capital expenditures over a long period and high interest rates causes time-dependent charges to make up a substantial portion of total capital costs. This study was a two-year research project to develop information about construction leadtimes, the underlying causes of long leadtimes and schedule delays, and potential alternatives for controlling delays and reducing leadtimes. This study focuses on leadtimes and costs that are time-related (escalation and interest during construction). Its objective is to provide improved methods for estimating leadtimes and, to the extent feasible, identify specific ways for controlling construction delays and reducing leadtimes. The study utilized both quantitative and qualitative methods to isolate causal factors and to understand how power-plant-construction leadtimes have changed and what the underlying forces driving these changes have been. The results indicate that while fossil plant construction leadtimes have remained stable, and while the leadtimes for recent nuclear plants will likely be lower than their immediate predecessors, if new nuclear capacity is ordered during the 1980's, leadtimes will continue to grow unless these orders are accompanied by a significant change in the regulatory process.

• Research Organization: Applied Decision Analysis, Inc., Menlo Park, CA (USA)
• OSTI ID: 6344916
• Report Number(s): EPRI-EA-2880-Vol.1; ON: DE83901833
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200106* -- Fossil-Fueled Power Plants-- Economics
21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
210800 -- Nuclear Power Plants-- Economics
29 ENERGY PLANNING, POLICY, AND ECONOMY
296001 -- Energy Planning & Policy-- Electric Power Generation-- (-1989)
CAPITALIZED COST
CONSTRUCTION
COST
FINANCING
PLANNING
POWER PLANTS
TIME DEPENDENCE