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Home My WebLink AboutAEA Grant E3 Consulting SOQs_Oct08E3 Consulting®, LLC Statement of Qualifications 2008 www.e3co.com 2008 www.e3co.com E3 Consulting®, LLC Statement of Qualifications E3 Consulting®, LLC Statement of Qualifications 2 | Page INTRODUCTION E3 Consulting®, LLC (E3) is a leading technical and strategic business advisor to the energy industry, with offices in Denver, Houston, West Virginia, and metropolitan New York City. E3 provides technical due diligence reviews of energy, industrial, and public infrastructure projects for capital providers, project developers and owners. The firm has extensive industry experience in management, finance, business practices, engineering, operations, and environmental compliance. As a result, we have a comprehensive understanding of the work required by lenders and investors involved in new project financing, acquisition financing, refinancing or project restructuring, and the fatal flaw evaluation of projects. Our experience encompasses the entire project life cycle, including the development, pre‐financing, financing, construction, performance testing, operation and maintenance phases. E3 has served as independent engineer or principal advisor on more than 500 projects seeking financing in the form of leases, equity placement, debt, and bond offerings. Many of the projects have been widely syndicated, and a number of projects where E3 has served as independent engineer have received investment grade ratings from Standard & Poor’s, Moody’s and Fitch, as shown in Exhibit One. More than 80 percent of E3’s business is from repeat customers, and most of our new business is based on referrals from existing clients. Exhibit One: E3’s Rated Projects RATED PROJECT SPONSOR LENDER Astoria Energy Astoria Power Calyon/Lehman BCI Jennings Bioethanol Project BC International Calyon/Lehman Central AL Power Project Tenaska CS First Boston Calypso Project EIF Calyon Fluvanna Power Project Tenaska Calyon Rialto Biosolids Conversion Facility EnerTech Deutsche Bank Windsor Cogeneration Project Cogentrix Calyon/Goldman Sachs Wolf Hollow Sequent Power West LB E3 Consulting®, LLC Statement of Qualifications 3 | Page Representative E3 Clients: • ArcLight Capital Partners • Babcock & Brown • BNP Paribas • Calyon • Chadbourne & Parke • CoBank • Credit Suisse • Energy Investors Funds Group (EIF) • Goldman Sachs • Macquarie • State of Alaska • Tenaska Additionally, over 25 of the top lead arrangers, as reported in Project Finance Magazine, have retained E3 to support the successful project, lease, and bond financing of their projects. Lead arrangers on these projects have included BNP Paribas, Energy Investors Fund, Bank of America, Bank of Tokyo, Calyon, and DZ Bank, among others. In addition, over 30 integrated energy companies have used our services to support their successful development, construction, or acquisition of energy projects. E3 has also worked for a variety of private and public bond debt issuers, including Babcock & Brown, Tenaska, Trans‐Elect, Cogentrix, Asia Power, and Maritime & Northeast Pipeline. Our bond experience includes power generation projects, oil and gas pipeline projects, electric transmission systems, and industrial process facilities. Several of the project financings on which we have served as the Independent Engineer have been selected as Bond Deal of the Year by Project Finance Magazine. The Lea Power Partners Project was 2007 North American Bond Deal of the Year, the Kiowa Power Project was the 2004 North American Bond Deal of the Year, and the Tenaska Alabama 885 MW power plant was the North American Single Asset Bond Deal of the Year 2003. E3 Consulting®, LLC Statement of Qualifications 4 | Page E3 served as the independent advisor on Four of the 2007 North American Deals of the Year; selected by Project Finance (February 2008). North American Project Bond Deal of the Year 2007 Lea Power North American Infrastructure Deal of the Year 2007 Trans Bay Cable North American Portfolio Power Deal of the Year 2007 EIF Calypso North American Oil & Gas Deal of the Year 2007 Nortex Gas Storage Other award‐winning projects that we were selected to serve as the Independent Engineer include: 2008 Power Plant of the Year, POWER Magazine — E3 provided lenders Independent Engineering and Construction Monitoring services for the financing of the Weston 4, a 500 MW power plant in Virginia. 2007 Technology Innovation Awards, Wall Street Journal — EnerTech Environmental’s SlurryCarb™ process was named runner‐ up in the Environmental category. One of Six Top Gas Plants Worldwide in 2007, POWER Magazine — E3 provided lenders Independent Engineering services for the financing of the Fluvanna Generating Station, 885 MW power plant in Virginia. North American Power Infrastructure Deal of the Year 2003, Project Finance Magazine—E3 provided lenders Independent Engineering services for financing of the Trans‐Elect Path 15 California 85‐mile, 500 kV high voltage transmission line. North American Single Asset Deal of the Year 2002, Project Finance Magazine—E3 provided lenders Independent Engineering services for the financing of the Fluvanna Generating Station, 885 MW power plant in Virginia. Project of the Year 2001, Power Engineering Magazine—E3 provided lenders Independent Engineering service for financing of the Frontier Generating Station, 830 MW power plant in Texas. E3 provides its clients the specialized knowledge that can only be derived through combining our experience with a proven evaluation process. E3 Consulting®, LLC Statement of Qualifications 5 | Page THE E3 TEAM E3 has brought together a remarkable team of energy and environmental professionals with the hands‐on experience necessary to manage a wide variety of assignments and numerous concurrent domestic and international projects. Our professionals have educations and professional backgrounds in electric power, mining, oil and gas, environmental, construction management, and finance, allowing them to provide objective oversight, critical analysis, and solutions for providers of capital and businesses building, optimizing, selling, acquiring or restructuring energy assets. By working on a wide assortment of leading‐edge projects, E3’s consultants remain current on key industry issues and new technologies. We can assemble project‐specific teams that have the appropriate skills and qualifications to bring assignments to an efficient and successful closure, delivering the results our clients expect. Our professionals form a highly‐experienced, diverse team to help our clients achieve lower costs, higher quality, tighter schedules, longer equipment lives, and lower risk profiles while improving a project’s performance. In addition to our full‐time professional staff, we also have a broad network of specialty sub‐consultants whom we can call upon for technology or industry‐specific expertise. E3 employees and network of professionals have the following competencies: Engineering & Technology Financial Analysis Energy Market Analysis Construction Operations and Maintenance Environmental Regulatory Asset Valuation and Appraisal With an average of more than 25 years experience, our consultants have an unparalleled understanding of the energy industry, having provided independent engineering services for project financings totaling over $40 billion. We recognize that our clients achieve success and preserve their reputations by relying on our experience, knowledge, and insight E3 Consulting®, LLC Statement of Qualifications The following table provides a high‐level summary of our team member’s areas of expertise. E3 STAFF MEMBERS Due Diligence Creditor Advisory Project Development Assistance Environment & Regulatory Compliance Valuations & Appraisals MARK CLEMENTS 3 3 JACK COONS 3 3 EARL FRANKLIN 3 3 3 JAMES GALAMBAS 3 3 3 3 MICK GAVRILOVIC 3 3 3 3 GINGER GRUBBS 3 3 3 3 CLIFF HERBST 3 3 3 3 ANDY HIXSON 3 3 3 DON HURD 3 3 3 3 FRANK KIRBY 3 3 3 3 VLADISLAV KUCERAVY 3 3 3 GALYN LAND 3 3 3 3 JOE MENDEZ 3 3 3 PAUL PLATH 3 3 3 3 MARK SHAW 3 3 3 3 JIM SHORT 3 3 3 3 3 CAROL TUDOR 3 3 VINCE TUMMARELLO 3 3 3 E3 Consulting®, LLC Statement of Qualifications 7 | Page Services E3 provides services for a variety of projects, ranging from complex, capital‐intensive energy or industrial projects to smaller projects seeking to utilize cutting‐edge technologies. We offer the following services, each of which is described in more detail below: Due Diligence Creditor Advisory Project Development Assistance Environmental and Regulatory Compliance Valuations and Appraisals Due Diligence: Due diligence entails the independent analysis of the engineering, commercial, regulatory, and environmental aspects of a project. E3 believes that whether the client is a lender or sponsor, it is crucial to thoroughly understand the relationships between a project’s many components to effectively minimize the inevitable risks arising from technical and financial assumptions related to the construction and operation of the facility. E3 has developed strong, continuing relationships with trustees, rating agencies, and major institutional investors. The E3 team has performed due diligence reviews for commercial bank loans and bond financings for many energy projects. We have participated in many presentations to the rating agencies (Standard and Poor’s, Duff & Phelps, Moody’s and Fitch) as well as “road show” presentations to potential investors. Due diligence can be performed at any stage of a project, including pre‐finance, acquisition, refinance, and divestiture. Creditor Advisory: E3 has continually expanded its expertise in the areas of finance, management and business practices to provide strategic advice in connection with distressed situations. We provide advisory services for projects that are impacted by bankruptcy, financial reorganization, and other complex business scenarios. When these events occur in the energy sector, the complexity added by the facility, deal structure, and market circumstances require specialized talent. In providing advisory services in connection with turnaround and renewal situations, E3 takes a proactive approach, where the emphasis is on maximizing “going concern” value for its clients. To achieve this objective, we build on our technical strengths to facilitate cost‐effective and timely decision‐making, thereby seeking to avoid the expense and lost opportunity associated with delayed action. The creditor advisory services that E3 offers include: Asset Management Energy Trading Analysis Plant Operations Environmental Review Market Assessment Financial Modeling E3 Consulting®, LLC Statement of Qualifications 8 | Page Cash Management Project Development Assistance: Once a site has been located, financing has been put‐in‐place, and environmental and regulatory approvals have been secured, E3 begins the crucial project development phase. E3 supports clients though this phase, which includes initial contract development and negotiation, technical advice as you plan, design, and launch the project, environmental permitting support, and overall monitoring of the construction process. We have worked with capital providers, owners, developers, and contractors to develop and implement an array of projects. The services provided during the project development phase include: Contract Development Technical Support Construction Management Environmental and Regulatory Compliance: E3 provides environmental and regulatory services to help clients comply with current laws and regulations and to maintain a cleaner project. E3’s professionals review projects to determine whether there are any potentially sensitive environmental issues that could have an impact on the project. Our environmental team monitors ever‐changing laws, as well as the activities of regulatory bodies, to ensure clients are aware of possible compliance issues before moving forward. Permitting and Licensing Compliance and Management Systems Climate Change Advisory Services Regulatory Advisory Services Valuations and Appraisals: E3’s provides a team of recognized experts who are certified appraisers with extensive experience conducting appraisals of public utility properties for eminent domain, rate‐making, purchase and sale considerations, ad valorem tax assessments, accounting and financial purposes. Our appraisers understand how the industry functions, and our appraisers work with other technical experts on the E3 team to provide clear, concise, and well‐documented expert testimony to support its client’s case. E3 professionals can provide expert witness testimony on appraisal matters as well. In addition to providing appraisal services, E3’s people are qualified to prepare independent engineer’s certificates relative to valuation matters by numerous utility companies, trustees, and banks. INDU U STRY SEGMENTS Elec Oil & Min Prod Elec Ren ctric Po & Gas ing & duct P ctric Po ewabl ower G Miner ipeline ower T e & Al Genera rals es & St Trans m ternat E Statem ation torage mission tive En E 3 Consulting ent of Qualific 9 | Page e n nergy g®, LLC cations e E3 Consulting®, LLC Statement of Qualifications ELECTRIC POWER GENERATION PROJECTS Members of the E3 team have provided services to the electric power industry since the 1970s, serving as engineers, line managers, and consultants. Our team members have participated in projects ranging in size from less than one Megawatt (MW) to greater than 2,000‐MW, encompassing technologies such as combustion gas turbines, diesel engines, pulverized coal and stoker‐ fired boilers, fluidized‐bed boilers, gasification, waste‐to‐energy boilers, geothermal facilities, solar‐power systems, and wind turbines. Fuel choices for these projects have included natural gas, landfill gas, heavy and light fuel oil, high‐ and low‐quality coal, municipal waste, geothermal brine, the sun, and the wind. From project concept and development through financing, construction, performance testing, operations, and asset management, members of the E3 team have played a significant role in the profound changes in the power industry around the world over the last three decades. Our experience spans more than 70,000 MWs of installed generating capacity and includes a broad range of generating technologies as follows: COMBUSTION TURBINES: Exhibit Two shows the range of machines that E3 has installed in both simple and combine cycle plants. Exhibit Two: E3’s Combustion Turbine Experience Vendor Technology Vendor Technology ABB 11N Mitsubishi 501F Alstom GT 26B GT 24 Pratt & Whitney FT4C Allison 501 Rolls Royce Trent General Electric Frame 5 Frame 6B 7F 7FA 7EA LM5000 LM6000 LMS100 Siemens V94.2 V84.2 Westinghouse 501D 251AA 501F 251 B10 501G SOLID FUEL STEAM GENERATORS: Technologies include pulverized coal, super critical pulverized coal, stoker, and fluidized bed. Vendors include: Alstom, Pyropower, Foster Wheeler, Combustion Engineering, Babcock and Wilcox, Tampella, Keeler Dorr Oliver, and Kvaerner. GASIFICATION AND IGCC: Technologies include Sasol, Conoco Phillips, Shell and GE. E3 Consulting®, LLC Statement of Qualifications 11 | Page ELECTRIC POWER TRANSMISSION PROJECTS E3 has extensive transmission experience encompassing the entire project life cycle of new and existing transmission systems including the planning, pre‐financing, financing, construction, performance testing, operations and maintenance phases. E3 personnel have 35 years experience in generation and transmission planning for utilities, control area design, system operations experience, and consulting for international clients and cogeneration assignments. Our service offerings associated with transmission projects include due diligence, acquisition and divestiture assistance, project turnaround, asset valuations and appraisals, operations management consulting, environmental permitting and site assessments, development assistance, dispute resolution support and transmission policy and pricing. E3 has completed over 25 transmission consulting assignments that have included more than 1,500 miles of new transmission projects ranging from less than one mile to more than 350 miles. E3’s experience includes elevated, buried, submerged lines, voltage ratings below and above 500kV, and AC/DC transmission and conversion. In addition E3 has completed assignments which involved the analysis of a client’s entire transmission network. Consulting assignments have included all aspects associated with the planning, design, construction, operation, reliability and economics of a transmission system. With regards to environmental permitting for transmission lines, E3 has also assisted our clients on more than 1,100 miles of transmission line corridor permitting. RENEWABLE AND ALTERNATIVE ENERGY PROJECTS E3 has experience with a wide variety of renewable energy projects and technologies. Within E3 and the personal backgrounds of our diverse employees, we have worked on renewable energy projects including wind power, geothermal power, solar (thermal and photovoltaic), hydroelectric, landfill gas, waste to energy, biomass power, biomass to fuels (both hydrolysis & fermentation and gasification & catalytic), biodiesel and anaerobic digestion projects. E3 has completed more than 60 consulting assignments on renewable energy and alternative fuels projects. Assignments have included technology assessments, environmental assessments and permitting, project planning, feasibility assessments, technical and economic due diligence, construction monitoring and operations and maintenance reviews. E3 has been involved with wind power production facilities with up to 450 units, ethanol production facilities up to 100 million gallons per year, biodiesel facilities up to 180 million gallons per year, geothermal power production facilities up to 220MW, biomass, biogas and waste‐to‐ energy projects in excess of 50MW. In addition to our full‐time professional staff, E3 is pleased to have a relationship with Dr. John P. Thornton, who is an expert on deployment, economic development, and public outreach related to renewable energy, particularly solar photovoltaic technology. E3 Consulting®, LLC Statement of Qualifications 12 | Page OIL & GAS PROJECTS E3 has experience with a wide variety of oil and gas projects and technologies and our professionals are industry leaders in providing comprehensive technical advice to the industry. Our owners’ engineering and due diligence services are highly valued for the development, financing, construction, performance testing, and acquisition or divestiture of oil and gas reserves, gas distribution and gas gathering projects, and refineries and petrochemical projects. E3 has completed more than 25 assignments for oil and gas clients. Assignments have ranged from project concept to project completion and from the reservoir to the burner tip and beyond. E3’s team has evaluated over 500 wells with more than 30,000 barrels of oil per day. Assignments have included analysis of reserve economics, expert witness testimony, appraisals and valuations, assessments of compliance and permitting issues, evaluation of a project’s operation and management systems, and operational strategic planning. Because of our many years of collective experience, our team understands that the technical performance, economics, and risks of oil and gas projects cannot be forced to fit within the conventional rules applied to the development and financing of power or other large‐scale projects. In addition, we have been engaged in various types of oil, gas, and petroleum product pipeline projects, as well as reservoir, salt cavern, and above‐ground storage facilities. Our team is experienced in the regulatory and environmental permitting and environmental site assessment associated with pipeline and gas storage facilities. E3 assignments have included the assessment of the reasonableness of the technical inputs to a project’s financial model. We are adept at creating an independent financial model for gas storage projects of all types. Our gas storage experience consists of detailed due diligence services for gas storage lenders, developers and acquirers of gas storage facilities. Our technology experience includes domal salt, bedded salt, depleted reservoir and aquifer gas storage throughout North America, as well as depleted reservoir gas storage in Australia. E3’s gas storage experience includes over 400 BCF of working gas capacity and approximately 20 projects. Our work has involved detailed assessment of the project’s reservoir or salt formation, in order to determine the capacity, injectivity and deliverability of the storage zone. In addition, assignments have included reviews of the relative level of risk associated with a project’s performance, detailed design review of a project’s surface and subsurface facilities, including compression, gas treatment, water handling, pipelines, well completions, well spacing, interconnection and measurement facilities. In addition, we provide independent assessments of a project’s capital cost and schedule. E3 Consulting®, LLC Statement of Qualifications 13 | Page MINING AND MINERALS PROJECTS E3 has experience with a wide variety of mining projects and technologies. Our project experience includes the evaluation of mine assets, operations agreements, mining techniques, mining machinery and mineral processing equipment, sales agreements, market analyses, mineral resource analysis, and environmental permitting and compliance. E3 has significant experience in supporting the financing of mines and evaluating mining operations in general. Our staff is familiar with the due diligence process involved with reviewing, describing, and quantifying risks associated with mining operations, mineral resources, and mineral sales. Our staff has expertise in mechanical, process and mining engineering as well as environmental permitting and compliance, project management, economic studies, and financial modeling. In addition to our full‐time professional staff, we have a broad network of specialty sub‐consultants that we can call upon for technology or industry‐specific expertise. OFFICE LOCATIONS HEADQUARTERED AT 3333 S. Bannock Street, Suite 500, Englewood, CO 80110 PHONE 303‐762‐7060 TOLL‐FREE 1‐877‐788‐6676 FAX 303‐788‐9725 BRANCH OFFICES IN Texas Montana New York Metro‐Area West Virginia