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Home My WebLink About _ 4.5(a)--Budget Reso & Change Order for Unit 6 Gearset Replacement � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: April l,2025 FROM: Nick Zettel, Director of ITEIVI NO. 4.5(a) Redding Electric I7tility ***APPROVED BY*** � ��. ; � _ � v �� „ �� 1c ct c, yrectc� �ii' e in� tri�ttt32ity �i�'),?t�2� �> �p�tt�,C�i ��t t�° �,�'2:?;'2{}?. nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(a)--Approve Budget Resolution and Change Order to G5661 for Unit 6 Gearset Re lacement Recommendation Approve the following actions related to the Lang-Term Parts, Services and Inspections Contract (G5661) between Siemens Energy Inc. and the City of Redding for repairs at the City of Redding Power Plant: (1) Approve Change Order 4'7 to Contract 5661 to replace Generating Unit 6's gearset in the amount of$3,143,607; (2) Authorize the City Manager, or designee, to sign any documentation or change orders within the approved budget; (3) Adopt Resolution approving and adopting the 73rd Amendment to City Budget Resolution No. 2023-060 appropriating $3,143,610 for the Generating Unit 6 gearset replacement; and (4) Find that the Change Order 47 is categorically exempt from review under the California Environmental Quality Act pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). Fiscal Impact The total cost for Change Order No. 47, including contingency, is outlined below: Descri tion Estimated Cost Re lacement Gearset $1,441,983 Installation Services $1,124,024 Tax $104,600 Contin enc $4'73,000 TOTAL �3,143,607 Report to Redding City Council March 25, ZOZ5 Re: 4.5(a)--Budget Reso& Change Order for Unit 6 Gearset Replacement Page 2 This project involves replacing a component with a known failure mechanism that could render Generating Unit 6 inoperable for at least 10 months. In the event of a failure, the estimated replacement power cost for Unit 6 for ten months would be approximately $17 million. Given the long lead time required for fabricating the gearset unit, it is recommended that the change order is finalized before the end of the fiscal year. Redding Electric Utility (REU) plans to fund this unplanned project using bond proceeds. Alte�native Action The City Council may choose not to approve the project to replace the Unit 6 gearset and provide alternative direction to staff. Background/Analysis Generating Unit 6 has a power output of approximately 45 megawatts (MW) and uses waste heat recovery to produce an additional 15 MW of steam power for Generating Unit 4. The combined power generation of 60 MW accounts for approximately 30 percent of the 185 MW total capacity of the Redding Power Plant. Unit 6 is a critical resource for REU's power portfolio. During the regular inspection of the Generating Unit 5 gearset in Apri12024, the inspection team discovered the low-speed gear had shifted approximately 14 millimeters off of center, compromising the unit's operability. The manufacturer of the gearset is Flender-Graffenstaden, but the parts are supplied through Siemens Energy. The defect is a fleet-wide issue and required immediate replacement, which occurred from April through June 2024. Since Generating Unit 6 has the same gearset as Unit 5, REU intends to proactively replace the gearset to avoid the possibility of collateral damage if the equipment were to fail. In addition, replacing the gearset proactively avoids the cost of replacement power since parts for the repair have 10 months of lead time to procure. The new gearset that wi11 be installed in Generating Unit 6 is of a different design and does not have the defect. Due to ongoing political uncertainty in the U.S., Siemens Energy cannot accurately estimate future tariffs. As a result, the requested contingency amount includes a potentia125 percent tariff on imports from Europe to the United States. Envi�^onmental Review This repair is categorically exempt from review under the California Environmental Quality Act pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). Council PrioNity/City NlanageN Goals This is a routine operational item. Attachments ^Resolution Proposal from Siemens Energy for Gearset Replacement Resolution No. 2025 - A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE '73xD AMENDMENT TO CITI' BUDGET RESOLUTION NO. 2023-060 APPROPRIATING $3,143,610 FOR UNIT 6 TURBINE GEARSET REPLACEMENT FOR FISCAL YEAR 2024-2025. BE�T RESOL VED BY THE CITY COUNCIL OF TH� CITY OF REDDING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 211 8093 REI7—Capital/PP Major Maint �3,143,610 THAT account titles and numbers requiring adjustments by this Resolution are as follows: USE SOURCE OF FUNDS OF FUNDS Decrease(Increase)Fund Balance 211-8093-2910000-00000 Fund Balance $ 3,143,610 Increase Expenditures 2ll-8093-7800058-00000 REU-Power Plant $ 3,143,610 Total $ 3,143,610 $ 3,143,610 THAT the purpose is to appropriate $3,143,610 for unit 6 turbine gearset replacement for fiscal year 2024-2025. I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the day of , 2025 and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK MUNNS, Mayor ATTEST: FORM APPROVAL: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney � ' � � � � � � �� I �� ,� '�, � # �i�� , , � 1ii�}S�S��t{t p4�C�u�y4k�iMn q;e !�.,r}�7 #I 4�t:f m � t tti§4 Y{�it }#{� 4� (� ��f t tt��} � a�` � ��t�P�i �f�{i f ; �� a,� <�c�,��e #E i��r��,, �� ,� ,��, � � � � � i ��a� ' � 6� MW Gearset lJ rade �� Redding Power Planfi SF242334431 , Rev.01 February 26, 2025 Firrn Prapasal Siemens Energy is a trademark licensedj by 5iernens AG. Siemens-Energy.com �m arv. ..� � ,s� � �. �.„„ ..� �.�_ 0 021192025 AEP all Initiallssue. 1 0212612025 AEP 3.1 & Revised Field Service Pricing Exhibit A � � � � Ko I b D�gitaily signed by Kolb Edward DN.cn-Kolb Edward,c=DE, D g t Iry gned by Zaltsberg Matthew o Sieinens, � �S e rg �S m�.��sberg Matthew c DE, Edward ema�l=edwardkolb@siemens- e energy.com Matthew m I matthew.zaltsberg@semens- Date:2025.02.27 04.42:50-07'00' �� 9Y Date.2025.022617.39:00 05'00' TECHNICAL Confidential - This Proposal, including all of its attachments, exhibits, appendices, etc. ("Proposal") is provided "as-is"for your evaluation of Siemens Energy, Inc. as the provider of work discussed therein and contains information that is Confidential to and solely owned by Siemens Energy, Inc. Your acceptance, viewing or storage of this Proposal is an acknowledgment of a confidential relationship between you and Siemens Energy, Inc. We require that this Proposal be returned or destroyed when no longer required for the purpose identified herein. This Proposal and any information obtained from this Proposal may not be reproduced, transmitted, disclosed or otherwise used, in whole or in part, without the prior written authorization of Siemens Energy, Inc. Copyright 2024 Siemens Energy, Inc. Page 2 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. T I f t ts 1. 1 T CTI .........................................................................................................4 2. X C TI S Y..............................................................................................5 �.1 PROJECT OBJECTIVE--------------------------------------------------------------------------------------------5 �.� SOLUTION ---------------------------------------------------------------------------------------------------------5 �,� SCO PE O F S U PPLY OVE RVI EW-------------------------------------------------------------------------------5 �.� E N G I N E E RI N G AN D DOCU M E NTATI ON------------------------------------------------------------------6 �,�i F I E LD S E RVI CE SCO PE------------------------------------------------------------------------------------------6 3.0 COMMERCIAL............................................................................................................7 ;3.� PRICI NG SU M MARY---------------------------------------------------------------------------------------------7 �.� PRICI NG BASIS AN D ASSU M PTIONS-----------------------------------------------------------------------7 �.� TERMS & CON DITIONS ----------------------------------------------------------------------------------------8 �,� VALI DITY-----------------------------------------------------------------------------------------------------------8 �,�S S H I PM E NT AN D I N COTERM S--------------------------------------------------------------------------------9 3.�+ I N VOI CI N G AN D PAYM ENT TE RM S------------------------------------------------------------------------9 �.� CHAN G E O RD E R-------------------------------------------------------------------------------------------------9 :3.� CANCELLATION------------------------------------------------------------------------------------------------ 10 3,� CO M M E RCIAL CO M M E NTS & CLARI F I CATI O N S----------------------------------------------------- 10 EXHIBIT A - FIE�D SERVICE OVERHAUL DETAILED SCfJPE QF WORK.............................12 APPENDlX 1 - DIVISION UF RESPONSIBILITIES...............................................................15 APPENDIX 2 - FIE�D SERVICE CUMMENTS & CLARIFICATIONS......................................19 Copyright 2024 Siemens Energy, Inc. Page 3 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. . i T Ti Siemens Energy, Inc. (hereinafter, "Seller") appreciates the opportunity ta present this proposal, Quotation No.: SF242334431, Revision 01, including all of the attachments, exhibits, appendices, etc. ("Proposal") to Redding Power Plant (hereinafter, "Buyer") for the services described therein. A review of this Firm Proposai will demonstrate the overall value-added benefit Seller brings as it relates to your Unit 6 63mw Gearset Upgrade project. More than 100 years of experience with steam turbines, gas turbines, generators, compressors and pumps is a key component of the Selier portfolio of services designed to support your operating plant. We are confident of our ability to deliver the highest quality service. Thank you for considering Selier to perform this service. Please feel free to contact me if you have any questions regarding this Proposal. Best Regards, r S I � r I Client anager: uyer`s Cantact etails Contact: Eric Halpenny Todd Harwick Tel: (530) 245-7188 Tel:+1 (310) 245-4695 Email: ehai enn @cit c�fr�dd6� .c�r rob�rt.h�rwick�si�rner�s-er�er .cc�rr� Equipment etails Serial Number: B005755 Praaect evelopment anager: Buyer Tag Number: Unit 6 Harpal Singh Equipment Model: SGT-800A+ Tel:+1 (713) 346-1688 har alsir� h@si�r��r�s-�r��r .c�rn LTP Project anager: Arturo DeLeon Tel: +1 (407) 462-8428 art.d�l�or�@sier��r�s-er��rq�r.ce�rn Copyright 2024 Siemens Energy, Inc. Page 4 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. . TI �.� J CT J CTIV Some gearboxes in SGT-800 installations have experienced an axial displacement of the bull wheel on the drive shaft, in the main gearbox situated between the turbine and the generator. This has typically happened after long operation time and resulted in a forced outage to allow for a repiacement of the gear set or compiete gearbox. This concerns Flender high-speed gearboxes installed prior to 2018 of gear seriai numbers up to and including 13087. Over the last several years, the earlier generations of highspeed gearboxes have undergone improvements that enable exchange to an improved gear set or gearbox. �.� L TI Enclosed in this proposal is an upgrade of the existing gearbox from 55MW to 63 MW. The upgrade will reduce the risk for wheel slippage. �.� C P F S PPLY VE VIE 5�1��r v�ra��Srsa�rir��a �#�t�, �e��n��r��cal��ic�� y�e� ��i��'�r��ar ��Tm��3� ��r��. v� � � �� ,�.,, � ,� ��, r,�k�, .... .. .� � �z' n �*N � � � � 4 ��5i,i k� � ¢�;� � � k:: u,�f � M4ny � '��`� �,, t n„fut��, t�t��{�rf�t��E��#�'��t��"�� i�� CS��b'��"�4C Enclosed in this proposal is: • 1 pcs Bullgear 63 MW • 1 pcs Pignon Wheel 63 MW • 1 pcs Adaptor for A version • 4 pcs Bearings • 1 pcs Pt 100 temperature measurement modification kit • 4 pcs Set of hydraulicjacking hoses kit • 2 pcs Oil seal kit • 4 pcs L111 to L223 PT 100 Copyright 2024 Siemens Energy, Inc. Page 5 of Z5 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. �.� 1 1 C T TI The following documentation is included: • Component manualsldatasheets Documentation will be delivered in one (1) copy of each (electronic only). All documents will be in English versions. Document formats, layouts and contents will be according to supplier standard. Within 2 weeks after request, the client shall provide the supplier with complete and updated drawings and application software back-ups for the unit as requested by the supplier to fulfill the contract. The supplier shall not be held responsible for any project delays, errors, or additional costs arising from inaccuracies in the client's documentation. Any incurred additional costs or impacts to the time schedule will be handled as additions to the contract. �,� FIEL SE VIC SC PE Seller will provide the labor and materials to perform the following: • Turnkey Services • Scaffolding • Mobile Crane • Heavy Lift • FGGS (gearbox Rep) Please see Exhibit A for additional Field Service details and Appendix 1 for Division of Responsibility. EXCLUSIONS The main exclusion from the Supplier includes, but is not limited to: • Parts and software changes not mentioned in section Scope of Supply. • Machine tools, hand tools and welding equipment. • Sound measurements. • The warranty will not be applied to systems and components that are outside of this scope of supply mentioned in section Scope of Supply. • All local requirements for certification. • Counter flanges, gaskets and bolts at terminal points. • Check cables and check/calibration of field instrumentation. • Any new findings based on site Works has been excluded from the Suppliers project schedule. • Civil works • Performance measurement and guarantee Copyright 2024 Siemens Energy, Inc. Page 6 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. . i �.� PRICING SUMMARY Section ' ' + 2025 Ref. ftem No. Base Scope of Work ' Firm Cea� Time' Pricir�g 2'3 1. E ui ment Modification 2 4 q p $1,441,983 42 Weeks ARO Section T&M ' Ref. Item No. Pield Seruice Scc�pe Estimated Cead Time' Pricing 5 Days Job Planning 1-8-5 Shift Arrangement 2•5 2• $1,124,024 Field Service Crew: 15 Days Gearbox Gear Change 1-12-7 Shift Arrangement TOTAL $2,566,007 �.� P ICI S�S SS PTI S a) Prices do not include any State, Local, or Federal Taxes; costs of fees, permits, licenses or bonds; or freight and insurance as applicable. b) Due to the prevailing political climate, the price set forth in this letter does not account for any potential tariffs that may be imposed as a result of importing any of the goods to the United States, whether currently foreseeable or not. In the event that such obligations arise, to the extent such tariffs alter the price, it shall be adjusted accordingly at the sole expense of the Buyer. c) This proposal is based on Seller standard manufacturing specifications and inspection plan. Any requests for deviation from these standards will have to be requoted. Copyright 2024 Siemens Energy, Inc. Page 7 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. d) Each scope item quoted per the above pricing is subject to prior sale and is based upon acceptance of a signed purchase order in the applicable factory, service center or field service branch location with necessary information and authorization to proceed and release for manufacture, repair or mobilization. e) The price breakouts supplied are for evaluation only and are not to be considered as standalone efforts by Seller unless specified. As such, should Buyer choose to perform only various portions to the total price, the scope preferred will have to be requoted. f) Aside from the above, the Client has not reported any other 3rd party field modifications to the equipment and has similarly not reported any existing aero- performance, mechanical, reliability,and/or metallurgical issues with the existing equipment. This statement was considered in developing the scope of supply, price and delivery quoted herein; if this statement is not accurate, the Client should provide additional details on any existing issues or modifications that should be considered in Siemens Energy'evaluation. Failure to disclose 3rd party unit modifications may result in scope, price and delivery adders if brought forth after order placement. In addition, 3rd party unit modifications not reported to Siemens Energy may void any warranty claim. �.� T C ITI S Seller hereby offers to perform the services detailed in this Proposal, governed by the Long Term Parts, Services and Inspections Contract between City of Redding and Siemens Energy Inc. Dated Sept 6t", 2011, in effect at the time the work is performed. �.� VA�1 1 This proposal is valid for sixty (60) days from the date of this letter unless otherwise extended, modified,or withdrawn in writing by Seller. The return of a purchase order or any other reasonable manner of acceptance communicated to Seller during such validity period will be sufficient to form an agreement on the terms and conditions of this proposal. Copyright 2024 Siemens Energy, Inc. Page 8 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. �.� S 1 T 1 C T S 1) For the Gearset Upqrade, described herein: a. Hardware will be ready to ship 42 Weeks after receipt and acceptance of a purchase, order, or other acceptable instrument of sale. b. Shipping time is not included in the above estimate. Shipping time would depend on Air or Ocean freight which will be agreed with the Buyer prior to shipping. c. Incoterms: delivery,title, and risk of loss or damage shall be DAP, Buyer Site— Redding, CA, in accordance with INCOTERMS 2020 i. Freight costs are not included and shall be invoiced at actual cost, plus ten percent (10%). Shipping is estimated to be $43,000. �.� 1 V ICI Y T T S Hardware and Engineering Payment Schedule: 1) 40%with order placement 2) 30% with Preliminary drawings released 3) 30% upon notification of readiness to ship* *Items will be shipped to client site or agreed upon storage location within 10-14 days of notification of readiness to ship Field Services Payment Schedule: 1) Invoices for time and material or extra work billing may be issued approximately weekly 2) Final invoices will be issued based on 100% completion of the work scope in accordance with the rate sheets in effect at the time of work execution 3) Payments are due and payable net within thirty (30) days from the date of each invoice. �w� C E E If Seller is fortunate enough to receive an order, the order will be processed via change order to the existing LTP contract, agreed and signed by both parties. Copyright 2024 Siemens Energy, Inc. Page 9 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. �� C C L TI Cancellation Charges: The Buyer may terminate or cancel, for convenience, further performance of all or any portion of the Purchase Order at any time by written notice to Seiler. The scope of supply and all hardware that has not been shipped prior to cancellation shall remain the property of Siemens Energy, Inc. The Buyer shall be charged a cancellation fee in accordance with the following graph: ��w � ��M � � � � � � �� .. � � � � � �� •� � � � ��r ca� �s� c��s �:rv��v�� 3�� C E CIAL C TS CL IFIC TI S 3.9,1 uyer utage Satisfaction Survey Seller is dedicated to providing our customers with exceptional world class service. Within five to fifteen days after completion of your outage, you may be asked by ComSim to participate in an outage satisfaction survey. As a valued customer, your participation in this process is greatly appreciated. Your feedback allows us to continually improve the quality of the service that Seller provides. Please include the name and phone number of your company's representative that should receive this survey on your purchase order or provide to your Seller Client Manager. 3.9.2 Export/Import Compliance Buyer acknowledges that Seller is required to comply with applicable exportlimport laws and regulations relating to the sale, export, import, transfer, assignment, disposal and use of the Products and information provided in the performance of the Services, including any exportlimport license requirements. Buyer agrees that such goods or information shall not at any time directly or indirectly be used, exported, imported,sold,transferred,assigned or otherwise disposed of in a manner which will result in non-compliance with any exportlimport laws and regulations. Seller's continuing performance hereunder is conditioned on compliance with such export/import laws and regulations at all times. Copyright 2024 Siemens Energy, Inc. Page 10 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. 3.9.3 an an re-exports to ussia and elarus; Seller hereby prohibits to the Buyer, and the Buyer agrees, not to re-expart andlor forward directly or indirectly, to Russia or Belarus for use in Russia or Belarus any goods (hardware and/or software andlor technology and related documentation, regardless of the mode of provision) sold, supplied, transferred, or exported by Seller to the Buyer under this project. Seller shaii be entitled to terminate this Agreement by written notice in the event of a breach by the Buyer of the obligation pursuant to the article above. Upon termination, the Buyer shall pay to Seller all costs and damages incurred by Seller from such termination. In any case, the Buyer shall pay Seller liquidated damages in the amount of 20 % of the purchase price. Notwithstanding the provision in the article above, the Buyer shall indemnify and hold harmless Seller in full from and against any claim, proceeding, action, fine, loss, cost and damage asserted by public authorities or other third parties against Seller arising out of or relating to a breach by the Buyer of the obligation under this Agreement and the Buyer shall compensate Seller for all losses and expenses incurred resulting thereof. 3.9.4 Storage Facility ption Sellers services business engages in the business of storing equipment in Qualified Seller Storage Facilities ("QDRSFs") on behalf of its clients. To accommodate project delays andlor maintenance scheduling or delivery changes, Seller offers its clients at their sole discretion and convenience, that they may provide instructions in writing at any time for Seller to store the equipment subject to this order in one of its qualified storage facilities after completion of the above quoted work scope. Such storage shall be in accordance with Seller Terms and Conditions for the Storage of Client Equipment. An additional installation and removal fee for the equipment may be quoted if required. Client acknowledges that it holds title to the equipment in storage. Copyright 2024 Siemens Energy, Inc. Page 11 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. i i - i i � 'L ��«�� . ,lc�b Piar�n"sng �P8�1t17�Pld!'yr.�i�r'3C��}r'7t2 2�.}�5-(}3-��7 L}UC�f143� �}1tf$SC�1�i�Ldl@ �StIiY7K7fBC�E''..£7t71(?�E�IOtY�c'1t8 ��1��J-�}�-"1i'�... . . . . . . . . . �....... ....... ....... �2�5 ....... ........ '�-�-�'rafltft....... Prlc[ng quoted at the fcs[lc�u�ing rates: SEI PL17272C72A Final pric�ng wfll be bil3ed in accc�r�Ear�ce wEdh the Terms and Gonditions ar�d Rate sheets in eff�ct�f the time of work execution. Field Service Crew=Gearbcsx Gear�hane�e P€e�iminaey�tarf C}at� 2t3�6-1t3-C}6 Duc�rtlon Shift schedu[e Estimatect Cornpletior��ate ZCl2&-IQ-20 15 [f�ys t-12-7 Shift Prlcing quoted af the foi�a�.^rirrg rates: SEI PL172?2t724 F�nsi pr3cing u i1i be billed in accc�rdance wiEh the Terms anc9 Conditions and R�te Slteets in effect�t the time of work execut�c��r. �ll��t et°. � .�f�, i*� a��s�:F- ��. � �?��cs� `t F �ti��t fi�«i�'. . T��#��a#t l��t� :��53�� #� lB��pca�e� P�ce '. Job P[anning �� . ,�, 't'��ta�� F��d�� c� Standard Time Hour(y 40.C� USC?86fl.00 0.4 �SL�37t7.8tI tJSD 1�,4{7Q.t3t3 Subt�#�ai USD 14,4t��.#3� Pield Service Crew-t3earbox�Sear Ghange i#+�i�� "., � :'�� . � � . TraveS Sfand�rd Time Haur(y i6.Q USD 42t3,44 O.p USL�42Q.Qt� USD 6,72t�,tIQ Standard Time Hourly 88.€7 USD 42Q.t�0 p.p USC>42�3.C3Cs LISD 36,9&C�.O(} C)vertims Hour(y 68,0 �S[�63{7.Q4 p.p US[)�30.4� USD 42.844.40 Copyright 2024 Siemens Energy, Inc. Page 12 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. � � ��'r�� t�a��r��, �� ,�� r�� : �� Premium Tirne Hourly ' 24.4 US�8'Q.C70 O.Q USC�84Q.007 USGt 2Q,1&0.t70 � ��t��. ;��" :. � .. �� i�t��e�`� � : Trave!S#and�rd Time Hour#y„ 16.� �1SC}420.C�4 r�,{� USCY 420.�fl USC��,72fl,�I0 T�ave(C�uerEime Haurly 16,4 USt3 63t�.fl0 �.fl L!S€�63U,00 USL�14.Q�0.(}0 Standard�Ime Hc�ur#y 32.t7 USU 42Q,Of� �.Q USD 42t�.i�t} tJSC?13.444,6t7 C7vet#ime Hourly 46.tt USC7 63t5.�€� (g.Q USCI 634.OQ USC?10,08{?,f}€� �ri� � .'. "t' i� ��€Scb �� €�� P�Y$9 u�$3i'Ide'�€'d T�IC#i8..... ,._. �iOUPa� . .. '��.�3 � ��7�u�{1.f�� _: :, Q.{} �a�`�3��{).�.1�? �� LIS��J.Z�C�}.Q{�� S41RLIc1CC9 T'tl7'i� }I4U!'ly 8$.Cl �:1SC7 36C}.i7Ct 0.� USC3 3k'i4.[3{1 �}SD 31.6$Q.G�6 4v�rtime Hour(y 68:tI USI�5it9.t34 (�,{� �JSCi 54C3.0t� �JSL7 36,72C�.flt7 Prernium Time Hcrurly 24:0 USG 720.C1C7 0.0 USD 72Ci.OD USL7 17,28G7.00� ��F ,y�t � 5 ��'�°�.` ."�,fttts�, �a a. Trave9 St�ndard Tirn� Hourly " 96.0 USC7 2�{7,OU i}.� USG 26C�.Q0 tJSCs 24,96D.4t} St2ndard T]m� Hourly �2�.t� USC7 26Ca,t3Q (}.� t3S�2�O.00� USL7 137.28U.�i0 c��r�,m� r�o�,r�y �c�s.� �sc��o.oc� n.o us€�a��.��s usr��s�,�za.oa Premium Tirne Hc�uriy 1�a.�! usG�5za,�t} o.p usE�SZC�.C�o usG 7�i,8at3,t74 Subtotal USD 634,fa�Q.Qtt A9ar�pow+�r Hcaurs Total USC�649,08Ct,(�t3 ; "€"�;�3��+��#��s!� ��E �t�� t9�o� ' � � �+r��t��3 � ' '!°mt�t� Field Service Cre�;-Gearbox Gear C�ranc�� BranciSafi.vay Scaffolding 1.t1� �cs�t t 2{}°lo O,t}C7 $7.50�.0t3 8�,50a.C3� T.�fttbtle Grane l Heavy Litt�ervices 1.{3� Cost+2Q%� Q:C}€� 25Cf.0{7CI.ilO 25t}.t�tSt3.C70 Ff3CS En� 1.�fl Cost t 20°�a 4:Cfti 12�,tI�O,ttt3 125;t1C70.{70 For�Iift 1,{�C3 Cosf+20°lo O.Ot3 $,75Q.CStY 8,754.C7�} 1t7`2i3,fl40 verkica6 s9ing 3?8{34589t 3.4fl �ionth#y 1.C1C� 49_4Q 748.2Ci Copyright 2024 Siemens Energy, Inc. Page 13 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. 50T Hydraullc jacks(fcsr gen alignrnent) 4.04 �vtc�nthly i.C�i7 572.99 2.291.96 �4997 ,IaGk,�J TC}tt,Pan C3ESe,EnBi�?aC RSP�9- 4.L1C3 PV1Di5ttil}+ t.G}tJ S5.S4 3=�3.36 5t3 4 29652 CcSns�mabl�s{rags,chemicals,etc.} 1.t�C1 Gost+2t3�in 1,�C� 6,25(#.{30 6,25Q.t7CI �4C3�5�11�3�3177{� 1.{7� �CaS�-1�'��°la 1.bt� ��u,(}i�{.J.�}I� �.r"s,�}�Q.(,J� �'.'.��'��1Q{��OtSC.X��t��Q�v�J� �<{}{} �Qli��'t�}f �.�}� �,4��}.�FJ �s,$��.�C'J G�'S-'�#.��3�rJ3��'�`a��±1r"�iR�@�f�if�tfl� 1.��I �+�4il�Pl�� "�.�k(7 ��f'}..�t� 77{}.�Q E}'BI7C5ItS 1 7HC}9$5QJ fiaRS-291 G8 Frecision kii 1 7£3Q83169 1.{3C� t�lor�thiy 1.�€7 713.'tJ 713,40 t�GT Ge�rb�sx t Get�erator Hydrau{ic 1.Q#� M�nfhRy 1.QQ 2,791.29 2,799.25 Wr2nch Kit i 7$#783�57 Human Petfc�rmance kit 1 78427�78 �.�(} (�onthiy 1,c�t1 1,3�1.25 1,391.�5 Hum�n P�rformance Supplemental�it 1.4i5 Monfhly '[.4t7 5.5�O.t�C! 5,5Q6.t}t� 1 78027862 Hoist Rlgging Rack Kit i 7�C}4�884 S.0C7 tv�onthly S,Kt�t 1,875.t�0 3.875.�0 Subto#�1 524,7Q5.11 ��C�� kd£�� P'#� �� T 1 A[rfare,'tr�nspor4ation Lum�Se�m 1�:CFt} 9,�25.�0 18,25t�.�t7 Ltaity Allo��uanee Per Shift 19�,�t� 395.UQ �6,684.C7fl 8ubto#a] 75,93tt,Ot} �'Ubt[ftc^�1 USD�,��$,J��.1� t3�scourat -U��24,��1.4� Estimatec�Tc�tal USL}1,124;C}23.f� Gurrency U.�.Ctc�l�ar Copyright 2024 Siemens Energy, Inc. Page 14 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. I 1 — I I I 1 1 1 1 The following listing specifies key resources necessary to the performance of the proposed scope of work and assigns responsibility for their supply either to Seller or Buyer. (Sourced from Redding Long Term Parts, Services and Inspections Contract Dated September 6, 2011). �i�t�: � � �� a�a��m��r�t, � -� ��e�r��l�; �` = ��r�� Il�r� ��y�� < ( �� $a €�;s.�� "� bw gq � P r �i r .� � %�� `�� k r�� u r��v� �� z' �'...�'��^ ��}`��t�i„�v'3�� F�� 5�. � ,�. , . . . s .e . � �� v�r� �r�� prc�v�� c��d�� (f�ar�i�rr��r�� , ' F��ai��nr�� v�i��il�� r+� uir�d �s�t� � �� . ��i��€v E��"�r��r�� s��i�� c�� c�r��C�►a�p�� r�� r��v��i�, ��!� � � �i�#�r ��rri��, ��rt�� u�., ��r�� ' I� i��t�l��a�� r�� r��v� �i��ti�� r��ir��r�n�� r�� r�,v�� r��r��i�r�� r��t�a � � c��t� �, ��i��r�r�r�� c��dir� �� ir�rr��r�t� �� t� � � F��i��r f�rk�� r� �ir�r��. � � ��vi�� n� �u�ri �t r��°�r�n�� a� �rrc��r�c�� r�r��t��r��. : ��v��t�ir� �c�t+��c�r� r��c�i��n�� r�c� p��r�� r�s��r��i�r�� r�r� s� ��r�t��l fi�� r��tic�� rr��ar`��> ��vi��nr�� I��r� r�qca��°�r�� r�� r��v�d� � � �� rt��d�tic�r��. �� '�c�� I��st� �� r��r�r� fi� ��r� d��r��, #�r�� d ��r r��ri�I� d� �t�� r�t�r�t�r��e �� r�� t�t�€�rr��r�� ' � � �h�t r�� d�� ar c��r�t��r��l ��ab��. �'rt�� i��r��, �� i��rt��t�r� � �� . Copyright 2024 Siemens Energy, Inc. Page 15 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. �� r � � �, ,"� 't $ � "rc�Y�g� a €�� .�` �'�" e�� ': '� 9 �t�8 e `�¢e�xi �� ' "3�$a��"� a � � f$ ��t `��},��. � ` '�' � �,��' ��.�+ I l� '�ti�a�x�;�;�,. ,;��:^� €�e�s.�j��E„�.��,.�Ey;nr��t1 d , str... 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Page 16 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. �� f��t�� . �� l�1 "��i�� £�1��1� ��*��. � ��i� ��r��r�€�cn�r�� t�ff. � � � ��r�i��r�� r��, ��r� �r� �f�� s�� ti��. �t �.�q �M ��i�� p��+��a t��r�� r��1�� t�� i�� . �, � ,,,,,,,�.,,,,,,,,:w,�u_ �� t� �� f�� r� r ��i��a��r�� r��r�� +�� c�r� ��t��ri��.� � 1�� r��a�t��t��r��r��r��r�r��°�r�� r°�� bi�� r��r�� rk � ��. � � ��a��d�� rr�� '�r� ��i� ��r � �� : �i��. � .� ��r�€�� t��l� � ` �� #��i a � ��r�pr�� r�� , �� r�� r� �� r� ��. �� r u: y , qa �� °_ � , # �u `�t �c�s., � '�* :�.�,�� '�"� `"�"'�+B��#� ° t�'�a""9c`�`,a'�{�k�4 s af �i ,�.� ��t?, �;�,"�2� a ��?� � ` :.9��" v�.'� v �+�i`�,� ,z�'rta�a". �x.� �Z?m %z"7a"�u9=�'�{�S�*"�s�d�a�`�,,<rr''s°2,�..`�t�1�'�,. �',e:. ,�"s�'.,.a`��.3!w� >�m'�z��$E��;f^*'.',�_�"1 �r#��li��'y`�"`�u,.u�x rtf��'o��.t��s��.be ,ar,ti�,;;. �a + . . a�.�.y .... �µ. ... ......�. .... . �s, .,. .....�. -�� , r.: .. . °)� ��7Fi�5".F ��'"��d&�Pa� ��9C� i�'b#��l�a S ��G"u�6JE�tib� �d'S�.E�t ��'"��`� ��..., . .. . .. . .. .. .. ... ��"�t� �r��rt�� .� � �Edi� ��ia�� p � � �.,.��. ��w �� +��r� ��€�r��c�� . � �� t��r��t ��f�� d�� r��1 �� r�rr�� rr� �� r��c�� . � w.w � .�.�.�.��, �� car�� , �� t, �� r�� r�t° r��f��° �� r� , �i�� t� ��q��t i��g � �� t��r��, �i�� t�� t� ��. �p�r� �� o�� r��t�r��r�� , � ,� ir��t�� r�� x ��t �r�c� r� ��r��rtt�� I�� k��. �C � ��b�� I�t��s� r�� i� ��. � ��rr� �°�� r��r�� i� ��i�� _ r� � � �t��a ��t�� , �t�� ! �� i� �� e� ��r�tY � Copyright 2024 Siemens Energy, Inc. Page 17 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. T`� �� t��r��°� �� f��` � .�.� � �,� �� r� �T`�� r��i�� r� � �`�rr�� i � �� . ��°� � ��r�� "��r�� . � �� s �t�� _ � t�� r��c�� i��r�i��i�� a��l�� ,� ., ��i�� rt�� r��r�� r�t�� 1��i�� ta � ��r� �� i �� i ��r�t . � � �� r�� . ��r�� 1��t�s��t� ��r�� r��t��r�� ,: ��a�� r�� il�� b�� '�� °� ��c� �. ,,,,,,,,�. � � �� wM�....: ...�n,�,��, ..��,µ..�, a��t r�� i�r�� , ��r��, ��a�� .�, ��a�� irr��y�c� �"� ��h ��t�� i��r�� r�� r��ti�� i�r�� t��r�y��r�f��`�� e�� r' t��t��y �� r�� c��c��r��r�� c��t� �� r � �� 1��t ��ft��° � �d�� a�l��t i�t�� r�. �� : * �`1�� . . .�� 1! �� tf�� e��t��r�� c�� r�� Copyright 2024 Siemens Energy, Inc. Page 18 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. I - FI I 1 1 1 This offer is subject to the comments and clarifications specified below. The intent of these comments is to better define the scope of work and responsibilities of all parties in performing the required work. 1. Removal of bolts, studs, pins, keys and other parts by burning,freezing,drilling, machining or by other abnormal means if required shall be provided on a T&M basis as Extra Work under our current published rate sheet. The Buyer shall furnish new hardware when destructive removal is necessary at no charge to Seller. Seller will discuss this abnormal procedure with the Buyer unless the problem occurs off hours, and a schedule delay would result. 2. Monitoring for and removal andlor disposai of all hazardous material such as asbestos bearing materials, lead carbonate, etc. are not included in Seller proposal. 3. Removal and reinstaliation of the fire protection system, inciuding fire protection instrumentation, electrical equipment and instrumentation, conduit and piping are not included in this proposal. All electrical disconnects (motors, generator bus, etc.) are to be performed by Seller. 4. The Buyer will provide all spare parts. Lack of spare parts when needed may delay the completion of work. Any such delay will be billed to the Buyer on a T&M basis per the current rate sheet. Large spare parts and materials, which cannot be transported easily by hand, are to be provided by the Buyer directly on the equipment deck or under the station crane prior to the outage start date. 5. All special OEM tools and devices for the equipment are to be provided by the Buyer. Seller will provide normal hand tools typically used for millwright work.Verification of the special tooling is recommended prior to the outage and can be quoted after Seller is awarded the contract for the packaged overhaul. Any missing tooling that requires manufacturing onsite to facilitate assembly or disassembly will be considered extra work. 6. The Buyer is responsible for the proper operation and availability of the overhead crane. A crane inspection is required, and a load test performed prior to the outage (no more than 12 months prior). The crane shall be made available to Seller and its subcontractors on a priority basis; however, Seller will share the use of the crane in order not to adversely impact the outage completion. Any and all crane delays/problems will result in a delay charge to Buyer. 7. In the event thatthe Buyer provides scaffolding, Seller QualityAssurance guidelines require that the Buyer ensures that the scaffolding is inspected by qualified personnel prior to each shift.The Buyer is to ensure that qualified inspection personnel are available each day that the scaffolding is in use. 8. The Buyer is responsible for directing Seller regarding where to place heavy loads on the equipment deck (i.e. lay down location, rotors, etc.) in order to comply with the design floor-loading plan. 9. In order to assure effective communication and timely response to project needs, it is expected that the Buyer will provide a Plant Contact with EWA signatory authority on a 24- hour basis for the work duration for assistance during the outage to avoid delays of the project.The Buyer and Seller would each provide persons for interfacing,with the authority to represent their companies during the time Seller is performing work. Copyright 2024 Siemens Energy, Inc. Page 19 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. 10.The craft manpower loading, and work schedule may change depending on the work scope, inspection findings and at Seller discretion. Any schedule float on Selier tasks will be the exclusive property of Seller. 11. Rotating and stationary component repairs beyond what is explicitly included in this proposal are not included in the price. Seller can offer repair as an option and, dependent on requirements, can either complete the repair on site or ship parts to one of Seller's authorized workshops. 12.Should disassembly and/or inspection findings reveal that machining is necessary, the Buyer will be notified,and a quote revision will be made in accordance with the Extra Work and Contingency Planning 13.Seller will communicate inspection findings and any recommended repair scopes to the Buyer at the conclusion of the inspection process. 14. Buyer will remove and replace the lubrication oil and the control fluid, if required, and inspect and clean the tanks. The Buyer will provide the necessary jumpers and/or fittings to complete lube oil and control fluid flush. Normal flush time is 12 hours and Seller recommends this duration even in cases when new oil is supplied. 15. It is anticipated that there will be no delays caused by the Buyer for safety related issues, special permitting requirements, work area admittance, plant admittance, or safety meetings and pre-outage orientation during the entire outage exceeding a total of 2 hours per person. Such delays impact the schedule and will be biiled on a T&M basis per the current rate sheet. Seller shall not be held responsible for delays resulting from the actions of the Buyer or other personnel not subcontracted by Seller. 16.Checking the coupling alignment is included in the price. (The Seller standard methods are rim and face dial indicator, reverse dial indicator, and straight edgelfeeler gauge.) Major realignment (moving the case), if required, will be considered Extra Work and will affect the outage duration and cost. The determination will be made when the coupling reference readings are recorded following the unit cool down. 17. Final oil circulation/flushing is recommended prior to placing the equipments in service i� not included in the scope of work. This service may be provided on a Time and Materials basis. 18.The above scope of work does not include mechanical start-up support. Any required time for start-up support will be billed on a Time and Material basis. 19.Seller and the Buyer will coordinate a milestone schedule for interface points (i.e. oil tank draining, electrical hook-up and disconnects, IIE personnel needs etc.) after the receipt of the order. One pre-outage meeting at site is recommended to review this proposal,tooling and parts. 20.Tenting Requirements — If NDE is included in scope/lf not Delete a. Adequate tenting is required for the inspection (see tenting requirements below). Tenting is not included in this proposal. b. The Buyer will provide the tenting requirements, which shall meet Siemens Energy Process Spec for white light intensity when performing a black light examination in a dark area maximum of 2 ft./candles. Tent size must cover the component being inspected to allow the inspector sufficient room to perform the NDE examination. 21. Electrical Requirements Copyright 2024 Siemens Energy, Inc. Page 20 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. a. 110V, 30 amp service b. 480V, single phase, 60 amp service c. 480 volt, single phase, 100 amp service 22. Pneumatic Air Requirements a. 110-150 psi shop air for pneumatic tooling 23.Containment and disposal of inspection chemicais are the Buyer's responsibility. 24. Installation of the equipment shall be conducted in accordance with the installation manual. In the event of a conflict between the proposal scope and the installation manual, the installation manual shall take precedence. 25. Installation of the equipment is predicated upon the existing foundation being suitable for continued service without any modifications. Any deficiencies that would prevent direct installation of the new equipment shall be the sole responsibility of the Buyer to repair, correct, or modify. Any delays to the overall project schedule shall be handled in accordance with Contract Extension 26. In the event that process piping is misaligned to the equipment causing excessive stress on the flanges, corrective actions will be the responsibility of the client. 27.All parts replaced will be disposed of at the Service Center. 28. Notwithstanding anything to the contrary, a signed letter of acknowledgement that the client has purged and cleaned the equipment must accompany all equipment orders shipped to Seller 29. . A Service Center Representative may provide the letter of acknowledgement template. 30.Quoted repairs that are not released by the client within 45 days of will be moved from the shop work area for safety reasons.The equipment will be stored at another location within our facility until the work is released for repair. 31.All inspection findings are made in reference to OEM and Industry specifications, tolerances, and standards. 32.Shift Arrangement/Duration Any change in the shift arrangements specified above may result in price changes for additional overtime and inefficiencies that result from either acceleration or deceleration of the work or as a result of extra work. Seller holidays are not included and the premium portion would be extra. 33. Extra Work Any additional work including but not limited to, repairs, additional fitting of components, and re-alignment of internal or external components performed by Seller which is beyond the scope of work defined in this offer will be billed on a time and materials basis in accordance with Field Service Rates in effect at the time the work is performed and/or as a firm price offer if performed in one of our repair facilities. 34. Mobilization Mobilization is also contingent upon assembling the necessary equipment from our tool facilities located in the USA. Seller has already assembled kits which contain as much of the required equipment as can be generally applicable. Additionally, our estimated costs for mobilization are based upon being able to use a dedicated truck shipment of tools from our facilities to your site. Should less than the Copyright 2024 Siemens Energy, Inc. Page 21 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. requested time of 90 Days between receipt of an order and site mobilization require the use of expedited shipping arrangements andlor overtime in preparing the equipment, the additional cost will be charged as extra work. 35.Contingency Planning Should inspections findings and subsequent Engineering recommendations show that additional repairs are required; Seller will make every attempt to provide any needed repairs depending upon the immediate availability of resources. Immediate contact should be made with your District Office representative to identify resources andior to develop a contingency plan. 36. Replacement Parts Buyer warrants that any and all third party parts which may be the subject of any performance under this agreement shall be (a) fuily compatible with the corresponding part, component, equipment or material of the Original Equipment Manufacturer (OEM) in terms of form,fit, and function; (b) timely provided to Seller hereunder;and (c) capable of installation in the same manner and within the same time as the corresponding OEM part, component, equipment, or material. Buyer assumes the entire liability and risk arising out of or resulting from third party parts. The warranties and remedies set forth in this offer does not apply to third party parts or performance relating to third party parts, and Seller disclaims any and all warranties and remedies, whether statutory, express or implied (including all warranties of merchantability and fitness for a particular purpose, and all warranties arising from course of dealing or usage of trade), or otherwise, for or with respect to third party parts or services on third party parts, or any OEM components repaired or replaced by a third party. 37.Obstacles of Interference Any obstacles of interference that may be encountered by Seller prior to or during the outage which may hinder or prevent Seller from performing the work outlined in this offer will be removed by the Buyer, if required, or Seller will complete the necessary removal and invoice as extra work. 38.Site Safety and Security Safety and security training and screening are based on Seller standard policies. This proposal does not include additional time and/or expenses that may be required to meet site/project specific safety and security requirements unless specified otherwise in this proposal. Special requirements including, but not limited to, sitelproject specific background checks, drug testing, safety training or certifications, or badging will be considered Extra Work. 39. Delays Delays in performing the work, out of Seller control, will be considered and billed as extra work. The price and schedule offered assumes that Buyer will supply or arrange for the required support resources as defined in the Division of Responsibilities, in a timely manner. 40.Weather Delays Copyright 2024 Siemens Energy, Inc. Page 22 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. The prices and schedule durations make no allowance for extension in outage duration and/or delays in work progress as a result of inclement weather. Any outage extension and/or delays in work progress due to inclement weather will be documented and billed additionally in accordance with the extra work and outage extension provisions of this proposal. Buyer is responsible for providing weather protection. 41.Crane(s), Lifting Devices and Rigging Buyer is responsible for ensuring that all Buyer supplied cranes, lifting devices and rigging are available in good Working condition and are inspected and certified per all applicable local, state and federal safety requirements. Buyer is responsible for making sure that all documentation and certifications are available for review by Seiler prior to the outage. 42. Priority Use of Crane The above price is based on Seller having priority use of the crane during all work. Delays in work due to the crane not being available, would be considered extra work. 43.Contract Extension This offer is based on performing all the required work in continuous succession. Any extensions to the contract in performing the work out of the control of Seller shall be considered Extra Work and billed according to the rate schedule valid at the time work is performed. This also applies to Stand-by charges and additional expenses incurred. Additional equipment or tool rental shall be billed as necessary (if applicable}. 44. Hazardous Material and Waste Seller has adopted a waste minimization program and will only bring to the site the quantity of these materials necessary to perform the intended work scope. Material Safety Data Sheets for all applicable materials brought on site shall be submitted to Buyer for review and acceptance. Any hazardous material or waste generated, as a result of the work performed by Seller, or any unused portions thereof, will be disposed of by and to the account of Buyer. Seller will not be responsible for the removal or disposal of any asbestos material, which may be encountered during the project. The price offered assumes that Buyer has removed all asbestos bearing material prior to the start of the Seller work scope. 45.Asbestos Containing Materials In no event shall Seller be obligated to install, disturb, handle, remove or dispose of any asbestos containing material (ACM) andlor any presumed ACM that may be encountered during the project. The price offered assumes that all ACM has been removed by Buyer prior to the start of Seller Work scope. There may be additional costs associated with Working in or around an asbestos environment. These include, but are not limited to, asbestos education and protective clothing. Seller will inform Buyer of these costs as they arise. This effort, if required, will be Extra Work. 46.Thermal Insulation Removal, replacement and clean-up of thermal insulation will be performed by Buyer. Should Buyer require that this Work be performed by Seller as part of the outage Work scope, Seller will subcontract this Work to a qualified subcontractor. Sellerl personnel are to be protected from any environmental hazards associated with the removal, replacement Copyright 2024 Siemens Energy, Inc. Page 23 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. and clean-up of thermal insulation. Disposal of all thermal insulation material generated as a result of this Work wili be performed by Buyer. 47. Lead Coatings Testing for lead content in paint and other coatings must be performed by Buyer prior to the start of the outage. However, if requested by Buyer, Seller can perform the testing for lead content prior to disassembly as Extra Work. In either case if lead is detected, in any concentration, using any recognized analytical method (including but not limited to XRF, Field XRF, Chemical Spot Test, etc.), Buyer is responsible for the lawful and timely removal and disposal of the lead-containing materials. Buyer is also responsible for any Delays to Seller as a result of the lead coatings. 48. Lead Carbonate In the event that lead carbonate contamination is encountered in the generator or exciter, the defined Scope of Work will immediately stop until the lead carbonate has been addressed. Buyer is responsible for testing the suspected contamination, air monitoring and for notifying Seller personnel on site of the test results. If required, Seller will remove the lead carbonate from the generator and perform air monitoring as Extra Work. Delays incurred by Selier while waiting for the contamination to be tested or the lead carbonate issue to be resolved will be billed as Extra Work. Buyer is responsible for the disposal and transportation of any lead and contaminated materials including supplies used for the decontamination. 49.Confined Space This inspection on Buyer's Unit may require Seller's personnel to enter and Work in a confined space and would be affected by OSHA 29 CFR 190.146, "Permit Required Confined Space Law". This law requires the monitoring of air in confined spaces as well as a written permit system, the training of attendants and entrants, constant communication and a rescue team. Seller requests the following support from Buyer in order to comply with this Law. 1. Perform air sampling of the confined space and clear the vessel for entry. 2. Provide a dedicated "qualified attendant" to stand by the opening, maintain contact with the entrants and to activate the rescue team, if necessary. 3. Provide access to a rescue team. The members of the rescue team must all be Red CrossiCPR certified, SCBA certified, etc. and must have successfully performed a rescue at that location with a mannequin or employee. Seller can provide items 1 and 2 at an additional cost, if requested by Buyer. However, due to the unique requirements of the rescue team, Buyer is to provide the requirement of item 50.Welding ASME Code rules shall be fully complied with where this procedure is used on ASME B & PV Code, ASME B31.1, or Nationa) Board Inspection Code ANSIINB-23 fabrication. For non-Code applications Siemens Energy Engineering may waive specific WPS variable rules. Turbines and electrical generators and their associated equipment are not covered under the scope of the ASME B& PV Code Sections or under ASME B31.1 and therefore the welding operations are not specifically governed by any ASME construction code requirements. Wherever practical the intent of these Codes is met in the engineering Copyright 2024 Siemens Energy, Inc. Page 24 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG. design and fabrication, however, the final acceptance of the design and fabrication shall be determined by Siemens Energy Engineering. When the fabrication is not covered under the scope of the ASME Code,welding procedure and welder performance may be qualified in accordance with ASME B & PV Code Section IX or, where applicable, in accordance with EN ISO 15609-1 : latest revision (contents of a WPS for arc welding}, EN ISO 15614-1 : latest revision (weld procedure qualification for arc and gas welding of steels and arc welding of nickel alloys) and EN 287 Part 1-latest revision (welder qualification for steels). Final interpretation of this specification or of Code questions associated with this specification shall be made by Siemens Energy Engineering. Copyright 2024 Siemens Energy, Inc. Page 25 of 25 SF242334431 All rights reserved. Siemens Energy, Inc.Confidential February 26,2025 Siemens Energy is a trademark licensed by Siemens AG.