Power Generation
Watson Millican & Company has experience with power generation facilities including large fossil-fuel utility plants, utilities dedicated to hydrocarbon processing facilities, cogeneration plants, and for offshore windfarms.
With electricity deregulation and escalating energy prices, there has been and will continue to be a significant amount of construction of conventional and alternative power generation plants around the world.
Our consultants have been involved in power plant project development activities, failure and damage assessments of plants and equipment, and power plant construction disputes.
Construction Disputes
Circulating Fluidized Bed (CFB) Power Plant Disputes
For the Contractor, analyzed engineering impacts, design changes, construction and commissioning delays and defects regarding two CFB Power Plants in Europe. Assessed engineering development, design changes, fuel supply changes, Covid impacts, commissioning delays, and back charges. Prepared multiple expert reports detailing the basis of opinions and provided expert testimony in ICC arbitration.
Combined Cycle Power Plant Completion Dispute
On behalf of the owner/operator, assessed multiple claims raised by a national power utility for a power plant located in Latin America. The claims alleged owner/operator’s incompletion of testing and startup activities, the testing of high voltage equipment, failures of dispatch, the damage of a steam turbine and plant trips. WMC prepared three expert reports, conducted a site visit, and provided arbitration testimony.
Utility Plant Dispute
Acted as technical expert in Engineering, Procurement and Construction (EPC) contract dispute in International Chamber of Commerce (ICC) Arbitration over claims made by owner against contractor related to the design and construction of power and steam utility plant facilities supporting large refinery complex. Claims involved the design of asphalt fired steam boilers, a seawater desalination unit, seawater piping, corrosion, and other plant design issues. Conducted several site investigations, prepared expert reports, and testified before ICC Arbitration panel.
Litigation Support
Combined Cycle Power Plant Performance Testing Dispute
Acting on behalf of the Power Purchaser, analyzed a single claim that the Owner did not follow accepted industry practice for performance testing. The single claim while seemingly straight forward, required detailed analysis of international performance testing codes, multiple expert/reply reports and two joint expert meetings with joint reports (one meeting supervised by the court). This matter was settled by the parties immediately prior to high level court hearing
Coal Power Plant Design and Installation Quality
For the EPC Contractor, analyzed multiple claims by the Owner that the plant boiler design and installation quality was inadequate for the specified coals which allegedly led to numerous boiler tube failures. The power plant, located in South East Asia, was specified to utilize a range of international coals. Our analysis of the timing of the usage of out of specification coals versus the boiler fouling which led to multiple tube failures established that the primary cause was the frequent usage of out of specification coals and was not due to the design and installation quality of the power plant. Prepared one expert report with extensive operational/fuel analysis over a multi-year period after which the claim was settled.
Combined Cycle Power Plant Equipment Failure
Reviewed and advised on the suitability of a contractor’s engineering design for an operating 500 MW coastal power plant. Systems reviewed included the failed seawater cooling steel piping, LPG fuel handling and compression, and compliance with design and environmental standards and practices.
Asset Valuation
Hurricane Damage Assessments
Performed physical inspection and developed estimated cost of loss caused by storm and flood damage from Hurricanes Katrina and Rita to electrical power generating plants and electrical distribution systems across southern Louisiana and Texas with emphasis on the New Orleans area.
Combined Cycle Cogeneration Plant Valuation
Completed an income analysis for a large natural gas combined cycle cogeneration power plant in Texas and assisted licensed appraiser in preparing a market value report in support of property tax litigation. Income analyses covered multiple tax years and considered different operating scenarios as part of highest and best use assessment. Also assisted in cost approach and functional obsolescence determination. Provided deposition testimony in support of work.
Contract Review
Refinery and Integrated Gasification Combined Cycle (IGCC) Inter-Plant Contract Dispute
Assessed the financial magnitude and contract basis for claim of uneconomic pricing of petroleum coke as a fuel to a integrated gasification combined cycle (IGCC) plant. The refinery company who was the supplier of the petroleum coke was attempting to adjust the contract price terms for the coke with the owner of the IGCC.
Project Development
Power Plant Development Engineering
Led the development engineering for a 1,200 MW gas-fired combined cycle power plant near Oklahoma City. Developed complete EPC Scope Book, negotiated EPC contract, managed a ten-mile water pipeline project as well as transmission and two major natural gas interconnections. Supported project financing, special use zoning approval, and air and water permits.
Cogeneration Plant Development and Construction
Responsible for development and construction of 40 MW cogeneration plant in the Gulf Coast area that provides electrical and thermal energy to adjacent NGL processing plant. Conducted economic analysis, negotiated EPC and maintenance contracts, and developed unique power purchase agreement with host NGL plant.
Incident Investigations
Electrical Power Plant Steam Turbine Failure Investigation
Performed root cause failure investigation of 160 Megawatt (MW) power generating steam turbine in Nevada, including site inspection, physical evidence analysis, review of design, construction practices, and steam path cleanliness practices during maintenance. Failure caused by the circulation of debris through the steam path. Provided expert report and testimony.
Combined Cycle Power Plant Gas Quality Dispute
Provided expert opinions on behalf of an owner/operator for an arbitration in Latin America. The claim concerned equipment damage and additional maintenance costs resulting from the provision of contaminated fuel gas by a pipeline transporter/operator to a power plant. WMC visited the site, interviewed plant personnel, and prepared two expert reports. The matter was settled by the parties prior to the arbitration hearing.
Insurance Claims
Hurricane Damage Assessments of Power Plants and Distribution
Performed physical inspection and developed estimated cost of loss caused by storm and flood damage from Hurricanes Katrina and Rita to electrical power generating plants and electrical distribution systems across southern Louisiana and Texas with specific emphasis in the greater New Orleans area.