POWER GENERATION STATION (PGS)Project Update / March 23, 2015

Loren SmithGeneration and Transmission Division Manager

History of the SEU

Stillwater is the 2nd largest municipally owned electric utility in Oklahoma and the

largest municipal electric generator in the State.

Stillwater has owned its Electric Utility since 1901

and began generation of it’s own electricity in 1903.

Boomer Lake StationBoomer Lake Station was the built in the

1950’s and was renovated in the 1990’s as part of a 20 year life extension project.

Feasibility Analysis

1. Rebuild Boomer Lake Station

2. Build a new State of the Art Generation Facility

3. Get out of the generation business

Was it economically feasible to build generation in the City of Stillwater?

In January of 2013 the study came back that it would be beneficial and economically viable for SEU to own new

generation

GRDA ContractAugust 5, 2013 Stillwater Trustees approved the wholesale

purchase power contract. Following signing of contract Stillwater Trustees authorized staff to:

• Enter into a formal professional services agreement with Burns & McDonnell

• Complete the land exchange with the Commissioners of the Land Office

• Work with JP Morgan on the bond underwriting for the project

PGS Project OverviewFinal approval received on June 2, 2014

3- 25,000 horse power natural gas fired reciprocating engine/generators

56 MW Output Control Room/Admin.

Maintenance Facilities

New electrical Transmission and

Distribution substation.

Procurement Status• The total project cost is estimated at just under $70 million • The total project will have 34 procurement packages/bids– Included: equipment, materials, construction, and services

necessary to construct the facility • To date 17 of the 34 bids have been released– Trustees have approved bid recommendations on 9 of them– Others are still out for bid or are in the evaluation process

• To date we have, or are in the process of finalizing, equipment and services contracts that total approximately $38.5 million

• We are estimating that for the equipment/services currently under contract that we are approximately $4.4 million under budget

Variables out of our control

ConstructionConstruction scheduled to begin July 2015

Tentative Commercial Operation date June 30, 2016

ODEQ air permit

Weather

ONG pipeline

• Site Prep Design • Underground Utilities Design• Final Grading and Drainage Plan• Site Finishes Design• Power Generation Building

Foundation Design• Admin Building Foundation Design • Major Equipment Foundation Design• Miscellaneous Foundation Design• Exhaust Duct Drawings• Plant Steel Erection Drawings• Preliminary P&IDs• Equipment Layouts• Motor List• Fire Protection Design• Under-slab Utilities

Engineering Status• Engine Hall Piping Design• Maintenance Area Piping Design• Plant Electrical One-Lines• Underground Duct Bank Design• Underground Grounding Grid• Electrical Equipment Layouts• LV and MV Switchgear Schematics• Wartsila Communications Design• Control Room Layout• I/O Design• Substation Foundation Plan View• Substation Steel Drawings• Steel Calculations• Substation Above Ground• Substation Switchgear Building Layout

Water Line Project

Natural Gas Line Project

ODEQ – Title V Air Permit

Fiber optic communication to

the New Power Generation Station

69,000 Volt transmission

system improvements

Southwest Power Pool (SPP)

registration

GRDA communication

connection to the new PGS

City of Stillwater Use By Right permit

application

Off-Site Projects & Permitting

All projects are expected to be completed by

the commercial operation date

of June 30, 2016.

At this time the PGS project, and

the parallel projects are on schedule and under budget.

Project Completion

Questions