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HomeMy WebLinkAbout _ 4.5(c)--Redding Power Plant Generating Unit 5 Lube Oil VFDs Replacement CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize and approve the following actions related to the Long-Term Parts, Services, and Inspections Agreement, (C-5661), with Siemens Energy Inc., for repairs at the City of Redding Power Plant: (1) Approve Change Order No. 50 to upgrade the Lube Oil System Variable Frequency Drives for Generating Unit 5, in an amount not-to-exceed $435,000; (2) Authorize the City Manager, or designee, to execute all documents and change orders necessary to complete the project; and (3) Find that the project is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). Fiscal Impact The total cost to replace/upgrade the lube oil system variable frequency drives (VFDs) (Project) addressed in Change Order No. 50, including contingency, is outlined below: Description Estimated Cost Variable Frequency Drives Equipment and Engineering $241,700 Installation Services $82,064 Estimated Shipping Costs $25,000 Estimated Taxes $17,523 Estimated Contingency $68,713 TOTAL $435,000 The requested contingency is intended to address the following: (1) tariffs on European imports up to 25 percent; and (2) a 10 percent allowance for “Installation Services”. MEETING DATE: September 16, 2025 ITEM NO. 4.5(c) FROM: ***APPROVED BY*** nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(c)--Redding Power Plant Variable Frequency Drive Cooling System Installation Nick Zettel, Director of Redding Electric Utility Report to Redding City Council September 9, 2025 Re: 4.5(c)--Redding Power Plant Generating Unit 5 Lube Oil VFDs Replacement Page 2 When this maintenance project was first proposed in the biennial budget process, it was budgeted at $350,000 in Redding Electric Utility’s (REU) Major Maintenance Fund for Fiscal Year 2025– 26. Since that time, rising costs and global market volatility h ave led to higher-than-anticipated industrial project expenses. Sufficient funding remains available in the Major Maintenance Fund to cover the project, including contingency as well as any additional work that may be required, due to contingency savings of approximately $800,000 earlier this year on Unit 5’s Major Overhaul (“Level C”). Alternative Action The City Council (Council) may choose not to approve the project to replace the lube oil VFDs and provide alternative direction to staff. Background/Analysis The City of Redding (City) has two Siemens SGT-800 gas turbines, Units 5 & 6, in service at the Redding Power Plant. In keeping with the need to maintain the desired performance of this equipment, periodic major overhauls and maintenance operations are required. In 2011, the Council approved the Long-Term Parts, Services and Inspections Contract (LTP) with Siemens Energy, C-5661. This contract provides the City with a number of maintenance services, maintenance tooling, and parts to complete the major overhauls and scheduled maintenance activities recommended by Siemens. This project is part of REU’s 10-year Major Maintenance Plan for the Redding Power Plant as required under the terms of the existing LTP agreement; a similar project will be proposed in 2027 for Unit 6. Generating Unit 5 provides approximately 45 megawatts (MW) of power and uses waste heat recovery to produce an additional 15 MW of steam power with Generating Unit 4. Together, the units generate 60 MW, representing roughly 30 percent of the Redding Power Plant’s 185-MW total capacity. As such, Generating Unit 5 is a critical resource within REU’s power portfolio. The lube oil system VFDs are essential to the reliable operation of Generating Unit 5 and control the operation of the three lube oil pumps and two demister fans. The existing VFDs are obsolete and at risk of failure. Proactively replacing them before failure occurs will help ensure continued reliability of the generating unit and reduce the likelihood of an unplanned outage. This preemptive replacement strategy also supports stable energy prices for REU customers by avoiding costly emergency repairs, reducing market exposure during forced outages, and maintaining steady generation availability. Upgrading the lube oil system VFDs will therefore strengthen operational stability, preserve reliability, and mitigate the risk of a complete unit shutdown. Environmental 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 Priority/City Manager Goals This is a routine operational item. Attachments Siemens Energy Inc. Proposal for Replacement of Unit 5 Lube Oil VFDs Previous Staff Report - 09-06-2011, item 9.5(c) Copyright 2020 Siemens Energy Page 1 of 22 SFXXXXXXXXXX All rights reserved. August 28, 2025 Siemens Energy is a registered trademark licensed by Siemens AG. We energize society Lube Oil System VFD Upgrade per Product Bulletin SuP46/2015/SGT-800 Redding Power Plant SF 242257833, Rev. 3 August 28, 2025 Firm Proposal Siemens Energy is a trademark licensed by Siemens AG. Siemens-Energy.com Copyright 2025 Siemens Energy, Inc. Page 2 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. Rev.: Rev. Date: Rev. By: Section: Description: 0 6SEP2024 ats all Initial Issue. 1 27FEB2025 ats all Pricing update 2 8AUG2025 ats all Pricing update 3 28AUG25 ats 4.6 Adjust payment terms SIEMENS ENERGY, INC. APPROVALS 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 i dentified 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 2025 Siemens Energy, Inc. Page 3 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. Table of Contents 1.0 INTRODUCTION ......................................................................................................... 4 2.0 EXECUTIVE SUMMARY .............................................................................................. 5 PROJECT OBJECTIVE -------------------------------------------------------------------------------------------- 5 SOLUTION --------------------------------------------------------------------------------------------------------- 5 3.0 SCOPE OF SUPPLY OVERVIEW ................................................................................... 6 EQUIPMENT MODIFICATION -------------------------------------------------------------------------------- 6 FIELD SERVICE SCOPE ------------------------------------------------------------------------------------------ 7 Exclusions --------------------------------------------------------------------------------------------------------- 7 Obligations -------------------------------------------------------------------------------------------------------- 7 Environment, Health and Safety--------------------------------------------------------------------------- 8 4.0 COMMERCIAL ............................................................................................................ 9 PRICING SUMMARY --------------------------------------------------------------------------------------------- 9 PRICING BASIS AND ASSUMPTIONS ----------------------------------------------------------------------- 9 TERMS & CONDITIONS -------------------------------------------------------------------------------------- 10 VALIDITY --------------------------------------------------------------------------------------------------------- 10 SHIPMENT AND INCOTERMS ------------------------------------------------------------------------------ 10 INVOICING AND PAYMENT TERMS ---------------------------------------------------------------------- 10 CHANGE ORDER ----------------------------------------------------------------------------------------------- 10 CANCELLATION ------------------------------------------------------------------------------------------------ 11 COMMERCIAL COMMENTS & CLARIFICATIONS ----------------------------------------------------- 11 APPENDIX ........................................................................................................................ 13 APPENDIX A-1 – DIVISION OF RESPONSIBILITIES ........................................................... 14 APPENDIX A-2 – FIELD SERVICE COMMENTS & CLARIFICATIONS .................................. 17 Copyright 2025 Siemens Energy, Inc. Page 4 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. 1.0 INTRODUCTION Siemens Energy, Inc. (hereinafter, “Seller”) appreciates the opportunity to present this Proposal, Quotation No.: SF242257833, Revision 3, including all of the attachments, exhibits, appendices, etc. (“Proposal”) to Redding Power (hereinafter, “Buyer”) for the services described therein. A review of this Proposal will demonstrate the overall value-added benefit SEI brings as it relates to your Unit 5 Lube Oil VFD upgrade project. More than 100 years of experience with steam turbines, gas turbines, generators, compressors and pumps is a key component of the SEI 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 SEI to perform this service. Please feel free to contact me if you have any questions regarding this Proposal. Best Regards, Client Manager: Robert Harwick Tel: +1 (310) 245-4695 robert.harwick@siemens-energy.com Project Development Manager: Harpal Singh Tel: +1 (713) 346-1688 harpalsingh@siemens-energy.com LTP Project Manager: Arturo Deleon, Jr. Tel: +1 (407) 462-8428 art.deleon@siemens-energy.com Proposal Information Purchaser ’s Contact Details Contact: Caleb Faber Tel: +1 (530) 245-7013 Email: cfaber@cityofredding.org Equipment Details Serial Number: B000532 Customer Tag Number: Unit 5 Equipment Model: SGT-800 Copyright 2025 Siemens Energy, Inc. Page 5 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. 2.0 EXECUTIVE SUMMARY PROJECT OBJECTIVE B000532 Redding is equipped with ACS 600 VFD´s for the lube oil system. The ACS 600 series frequency converters are obsolete and need to be replaced in order to keep the production unit serviceable and reliable. SOLUTION This proposal includes procurement of the current model ACS 880 Frequency Converter for the lube oil system, which will replace the currently installed and obsolete ACS 600 Frequency Converter. Copyright 2025 Siemens Energy, Inc. Page 6 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. 3.0 SCOPE OF SUPPLY OVERVIEW EQUIPMENT MODIFICATION Seller will provide a complete, engineered solution per Buyer’s request for the Lube Oil System VFD Upgrades. Included in this quotation are: • 2 Pcs ACS 880 VFD for the oil mist fan system • 3 Pcs ACS 880 VFD for the lubrication oil pump system • 3 PCS Backup PLC´s for the lube oil system • 3 PCS DC/DC power feed for the power feed to the PLC´s Existing battery backup for lube oil PLC´s will be removed. New PLC´s will be fed via main DC battery system. Project handling Project management Seller manages the project to secure delivery according to plan. Function and safety analyses N/A Factory Acceptance Test, FAT N/A Engineering and documentation The following engineering is included: • Electrical engineering for power supply to new lube oil system PLC´s • Programming of new lube oil system PLC´s The following documentation is included: • Updated Setting List • Updated Control cubicle circuit diagrams, layouts, apparatus lists and connection tables • Updated external cable and connection tables • Dismantling and Installation o Red-marked circuit diagrams, layouts, apparatus lists and connection tables o Red-marked external cable and connection tables • Component manuals/data sheets 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. Copyright 2025 Siemens Energy, Inc. Page 7 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. Within 4 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. Unforeseen faults, delays and costs in the project caused by faults and errors in the client's documentation cannot be held against the supplier. Installation Installation material (cables, wires, marking, etc.) are not included. The customer shall be responsible for checking cables and checking/calibration of field instrumentation and hand over test certificate together with checked and green marked documentation for the installation to the commissioning engineer. FIELD SERVICE SCOPE Seller will provide the labor and materials to perform the following: • One (1) Day for removal of obsolete VFD’s • Two (2) Days for installation of new VFD’s • Two (2) Days for commissioning, which includes battery discharge test and recharge Personnel - Two (2) Commissioning Engineers, five (5) working days each. Please see Appendix A-1 for Division of Responsibility and A-2 for Field Service Comments and clarifications. Exclusions The main exclusions from the Seller include but are not limited to: • Parts and software changes not mentioned in section 3. • Sound measurements. • The warranty will not be applied to systems and components that are outside of this scope of supply. • All local requirements for certification. • Counter flanges, gaskets and bolts at terminal points. • Check cables and check/calibration of field instruments. • Any new findings based on site Works have been excluded from the Suppliers project schedule. Obligations In this section, the obligations of the Buyer are listed. • Buyer must confirm that the upgrade is accepted by local authorities • Buyer shall perform checks and assessments of equipment and systems that are not provided by Seller • Buyer to provide necessary assistance personnel to carry out defined scope of supply. Personnel required from the Customer as listed: o Mechanical Helper o Skilled Electrician according to Seller’s qualifications Copyright 2025 Siemens Energy, Inc. Page 8 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. o Operator o DCS System Engineer Buyer shall provide necessary assistance regarding: • Transport of materials on site • Office and sanitary facilities close to working area (maximum distance should be 50 meters) • Safe disposal of demounted material, scrap and waste. • Access to the customer workshop • Workshop facilities and machine tools when required • Obtaining all licenses, permits, government authorizations and taxes required to permit the suppliers personnel to perform their obligations. Environment, Health and Safety In line with the Seller’s continuous work for a better environment and a safer workplace, the customer is responsible for adhering to our Environment, Health and Safety (EHS)procedures, according to Seller’s standard EHS requirements. Copyright 2025 Siemens Energy, Inc. Page 9 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. 4.0 COMMERCIAL PRICING SUMMARY Section Ref. Item No. Scope of Work 2025 Firm Pricing Lead Time 3.1 1. One Unit - Lube Oil System VFD Upgrades per Product Bulletin SuP46/2015/SGT-800 $ 241,700 30 Weeks ARO 3.2 2. Field Service for Installation and Commissioning, Time and Material Estimate (includes LTP discount) $ 82,064 2 Commissioning Engineers, 5 Days 1-12-7 Shift Arrangement PRICING BASIS AND ASSUMPTIONS a) Due to current uncertainty in the world markets, the price set forth in this proposal does not account for any potential changes in law or tariffs that may be imposed during the validity of this proposal. In the event that new or additional obligations arise that alter the price, it shall be adj usted accordingly at the sole expense of the Buyer. In case new or increased tariffs, taxes or customs duties adversely impact the price of Siemens Energy’s scope of supply/services and/or supply chain, Siemens Energy shall be entitled to adjust the price in line with such increase. b) Prices do not include any State, Local, or Federal Taxes; costs of fees, permits, licenses or bonds; or freight and insurance as applicable. 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. 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 Copyright 2025 Siemens Energy, Inc. Page 10 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. 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 Seller may void any warranty claim. TERMS & CONDITIONS Seller hereby offers to perform the services detailed in this Proposal, governed by the LONG TERM PARTS, SERVICES AND INSPECTIONS CONTRACT C-5661 is entered into as of September 6, 2011 (the "Effective Date"), by and between the CITY OF REDDING, a municipal ("Buyer"), and SIEMENS ENERGY, INC., a Delaware corporation ("Seller")., in effect at the time the work is performed. VALIDITY This proposal is valid for sixty (60) days from the date of this letter unless otherwise extended, modified, or withdrawn in writing by Seller. SHIPMENT AND INCOTERMS For the Lube Oil System VFD upgrades, described herein: a. Hardware will be ready to ship in approximately 26 weeks after receipt and acceptance of a purchase order. b. Incoterms: delivery, title, and risk of loss or damage shall be DAP Redding Power Plant in accordance with INCOTERMS 2020. c. Freight costs are not included in the price quoted; they are additional and prepaid and shall be invoiced at cost plus ten percent (10%). INVOICING AND PAYMENT TERMS Hardware and Engineering Payment Schedule: 1) 40% with order placement 2) 40% upon notification of readiness to ship 3) 20% upon delivery of drawings/documentation Field Service Installation and Commissioning: - 100% upon completion of the work scope Invoices are due and payable within thirty (30) days from the date of invoice. CHANGE ORDER If the Buyer decides to move forward with this upgrade, a change order to the LONG-TERM PARTS, SERVICES AND INSPECTIONS CONTRACT C-5661 will be issued as per the change order process defined in the contract to capture the changes. , to "Notwithstanding any statement to the contrary in this change order, the parties Copyright 2025 Siemens Energy, Inc. Page 11 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. agree that the only terms and conditions that shall be applicable to this purchase order are contained in LONG TERM PARTS, SERVICES AND INSPECTIONS CONTRACT C-5661, in effect at the time the work is performed. No other conditions printed on the face or back of this purchase order shall apply.” CANCELLATION 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 Seller. 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: COMMERCIAL COMMENTS & CLARIFICATIONS 4.9.1 Customer Outage Satisfaction Survey SEI 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 SEI 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 SEI Client Manager. 4.9.2 Export/Import Compliance Purchaser acknowledges that SEI is required to comply with applicable export/import laws and regulations relating to the sale, export, import, transfer, Copyright 2025 Siemens Energy, Inc. Page 12 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. assignment, disposal and use of the Products and information provided in the performance of the Services, including any export/import license requirements. Purchaser 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 export/import laws and regulations. SEI’s continuing performance hereunder is conditioned on compliance with such export/import laws and regulations at all times. 4.9.3 Ban on re-exports to Russia and Belarus: SEI hereby prohibits to the Purchaser, and the Purchaser agrees, not to re-export and/or forward directly or indirectly, to Russia or Belarus for use in Russia or Belarus any goods (hardware and/or software and/or technology and related documentation, regardless of the mode of provision) sold, supplied, transferred, or exported by SEI to the Purchaser under this project. SEI shall be entitled to terminate this Agreement by written notice in the event of a breach by the Purchaser of the obligation pursuant to the article above. Upon termination, the Purchaser shall pay to SEI all costs and damages incurred by SEI from such termination. In any case, the Purchaser shall pay SEI liquidated damages in the amount of 20 % of the purchase price. Notwithstanding the provision in the article above, the Purchaser shall indemnify and hold harmless SEI in full from and against any claim, proceeding, action, fine, loss, cost and damage asserted by public authorities or other third parties against SEI arising out of or relating to a breach by the Purchaser of the obligation under this Agreement and the Purchaser shall compensate SEI for all losses and expenses incurred resulting thereof. 4.9.4 Storage Facility Option SEI’s services business engages in the business of storing equipment in Qualified SEI Storage Facilities (“QDRSFs”) on behalf of its clients. To accommodate project delays and/or maintenance scheduling or delivery changes, SEI offers its clients at their sole discretion and convenience, that they may provide instructions in writing at any time for SEI 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 SEI 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 2025 Siemens Energy, Inc. Page 13 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. APPENDIX A-1 DIVISION OF RESPONSIBILITIES A-2 FIELD SERVICE COMMENTS & CLARIFICATIONS Copyright 2025 Siemens Energy, Inc. Page 14 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. APPENDIX A-1 – DIVISION OF RESPONSIBILITIES The following listing specifies key resources necessary to the performance of the proposed scope of work and assigns responsibility for their supply either to SEI or Purchaser. ACTIVITY SEI Redding Power A OUTAGE STAFFING A-1 Field engineers, technicians, and specialists X A-2 Craft labor personnel X A-3 Crane operator and signalmen X A-4 Electrician for disconnections and connections X A-5 I&C Technicians X A-6 Confined Space Attendants X A-7 Fire Watch X A-8 FME Barrier Attendants X B DOCUMENTATION B-1 Scheduling and planning X X B-2 Final report X B-3 Inclusive list of all site-specific access requirements including background investigations, drug testing, safety training, security requirements and badging X B-4 Site authorization to use digital photo/video equipment to document work activities for engineering disposition X B-5 Recommended Spare Parts List X C FACILITIES C-1 Potable drinking water and ice X C-2 Access to High-speed internet connection and telephone service (24 - hr availability and hookups/connectivity within 3 days of mobilization) X C-3 Washroom facilities X C-4 Toilet facilities X C-5 Service water, drain, compressed air X C-6 Electrical power (120/240/480) single phase and three- phase, wiring materials, plugs/connections and cables to work area X Copyright 2025 Siemens Energy, Inc. Page 15 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. ACTIVITY SEI Redding Power C-7 Laydown area (convenient cleaning, storage and work areas that isolate SEI work area from routine plant activity) X C-8 Office & break space or trailers X C-9 Plant Machine shop facilities and operators if required X D TOOLING, EQUIPMENT AND MATERIALS D-1 Tooling and test equipment for defined scope of work X D-2 Expendable materials X D-3 Rotor stands or support skids X D-4 Cribbing, timber, skids, pallets, etc. for parts laydown X D-5 Floor protection X D-6 Equipment originally furnished with unit. This equipment must be pre-inspected and certified prior to the outage start. This equipment is to be available on the turbine deck in good working condition. (Examples are lifting/spreader beams and heavy rigging, skid pan, specialty tooling, etc.) X D-7 Overhead crane(s) pre-inspected, certified, and maintained X D-8 Mobile crane with operator X D-9 Area lighting X D-10 Portable light towers X D-11 Fire protection equipment, including CO2 fire extinguishers X D-12 Bolt Heaters/Stretching Tools & Support X D-13 Oxygen & Acetylene X D-14 Casing Joint Compounds & Sealants X D-15 Renewal Parts including asbestos free precut and manufactured gaskets. X Copyright 2025 Siemens Energy, Inc. Page 16 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. E SUPPORT SERVICES SEI Redding Power E-1 Interference removal (Obstacles outside of SEI control that may hinder or prevent SEI from performing the work) X E-2 Locate materials, tooling, and test equipment near turbine-generator work area (Offload upon arrival and load upon completion of job) X E-3 Material handling and transportation onsite (Forklift, Truck, trailer, crane, lifting/spreader beams etc.) X E-4 Weather protection (program and extent of effort to be defined in scope of work and/or commercial conditions documents) X E-5 Scaffolding materials and services X E-6 Blast cleaning materials and services (dust-blast, cryoblast, etc.) X E-7 FME security fencing/barriers material X E-8 FME security fencing installation and removal X E-9 FME accountability technician X E-10 Paint removal and painting services as required per the defined scope of work X E-11 Insulation materials and services including removal and installation of non-asbestos blankets X E-12 Asbestos and lead-containing materials (testing and removal). Includes responsibility for ACM/PACM, including thermal insulation, lead based paints, and lead carbonate if required. Excludes removal of gaskets or generator material if specifically identified in the SEI scope of work. X E-13 Disposal services including containers and disposal for all hazardous waste, non-hazardous waste, regulated materials, and trash X E-14 Confined space rescue team X E-15 Confined space air monitoring, equipment and attendants X E-16 First aid capabilities and access to ambulance service X E-18 Turbine/Generator - Ability to jog or bump rotor X X E-19 Welding machine and welder X E-20 Check and calibration of instrumentation and gauges X E-21 Refueling of equipment at site X E-22 Portable generators if plant electrical power will be interrupted X E-23 Equipment isolation X Copyright 2025 Siemens Energy, Inc. Page 17 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. APPENDIX A-2 – FIELD SERVICE COMMENTS & CLARIFICATIONS 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 Purchaser shall furnish new hard ware when destructive removal is necessary at no charge to SEI. SEI will discuss this abnormal procedure with the Purchaser unless the problem occurs off hours, and a schedule delay would result. 2. Monitoring for and removal and/or disposal of all hazardous material such as asbestos bearing materials, lead carbonate, etc. are not included in SEI proposal. 3. Removal and reinstallation of the fire protection system, including 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 Purchaser. 4. The Purchaser 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 Purchaser 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 Purchaser 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 Purchaser. SEI 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 SEI 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 Purchaser 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 SEI and its subcontractors on a priority basis; however, SEI 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 Purchaser. 7. In the event that the Purchaser provides scaffolding, SEI Quality Assurance guidelines require that the Purchaser ensures that the scaffolding is inspected by qualified personnel prior to each shift. The Purchaser is to ensure that qualified inspection personnel are available each day that the scaffolding is in use. 8. The Purchaser is responsible for directing SEI 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 Purchaser 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 Purchaser and SEI would each provide persons for interfacing, with the authority to represent their companies during the time SEI is performing work. Copyright 2025 Siemens Energy, Inc. Page 18 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 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 SEI discretion. Any schedule float on SEI tasks will be the exclusive property of SEI. 11. Rotating and stationary component repairs beyond what is explicitly included in this proposal are not included in the price. SEI can offer repair as an option and, dependent on requirements, can either complete the repair on site or ship parts to one of SEI’s authorized workshops. 12. Should disassembly and/or inspection findings reveal that machining is necessary, the Purchaser will be notified, and a quote revision will be made in accordance with the Extra Work and Contingency Planning 13. SEI will communicate inspection findings and any recommended repair scopes to the Purchaser at the conclusion of the inspection process. 14. Purchaser will remove and replace the lubrication oil and the control fluid, if required, and inspect and clean the tanks. The Purchaser will provide the necessary jumpers and/or fittings to complete lube oil and control fluid flush. Normal flush time is 12 hours and SEI recommends this duration even in cases when new oil is supplied. 15. It is anticipated that there will be no delays caused by the Purchaser 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 billed on a T&M basis per the current rate sheet. SEI shall not be held responsible for delays resulting from the actions of the Purchaser or other personnel not subcontracted by SEI. 16. Checking the coupling alignment is included in the price. (The SEI standard methods are rim and face dial indicator, reverse dial indicator, and straight edge/feeler 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 equipment in service is 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. SEI and the Purchaser will coordinate a milestone schedule for interface points (i.e. oil tank draining, electrical hook-up and disconnects, I/E 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. Electrical Requirements a. 110V, 30 amp service b. 480V, single phase, 60 amp service c. 480 volt, single phase, 100 amp service 21. Pneumatic Air Requirements d. a.110-150 psi shop air for pneumatic tooling 22. Containment and disposal of inspection chemicals are the Purchaser’s responsibility. Copyright 2025 Siemens Energy, Inc. Page 19 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. 23. 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. 24. 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 Purchaser to repair, correct, or modify. Any delays to the overall project schedule shall be handled in accordance with Contract Extension 25. 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. 26. All parts replaced will be disposed of at the Service Center. 27. 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 SEI. A Service Center Representative may provide the letter of acknowledgement template. 28. 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. 29. All inspection findings are made in reference to OEM and Industry specifications, tolerances, and standards. 30. 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. SEI holidays are not included and the premium portion would be extra. 31. 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 SEI 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 faciliti es. 32. Mobilization Mobilization is also contingent upon assembling the necessary equipment from our tool facilities located in the USA. SEI 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 requested time of 90 Days between receipt of an order and site mobilization require the use of expedited shipping arrangements and/or overtime in preparing the equipment, the additional cost will be charged as extra work. 33. Contingency Planning Should inspections findings and subsequent Engineering recommendations show that additional repairs are required; SEI will make every attempt to provide any needed repairs Copyright 2025 Siemens Energy, Inc. Page 20 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. depending upon the immediate availability of resources. Immediate contact should be made with your District Office representative to identify resources and/or to develop a contingency plan. 34. Replacement Parts Purchaser warrants that any and all third party parts which may be the subject of any performance under this agreement shall be (a) fully 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 SEI hereunder; and (c) capable of installation in the same manner and within the same time as the corresponding OEM part, component, equipment, or material. Purchaser 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 SEI 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. 35. Obstacles of Interference Any obstacles of interference that may be encountered by SEI prior to or during the outage which may hinder or prevent SEI from performing the work outlined in this offer will be removed by the Purchaser, if required, or SEI will complete the necessary removal and invoice as extra work. 36. Site Safety and Security Safety and security training and screening are based on SEI 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 li mited to, site/project specific background checks, drug testing, safety training or certifications, or badging will be considered Extra Work. 37. Delays Delays in performing the work, out of SEI control, will be considered and billed as extra work. The price and schedule offered assumes that Purchaser will supply or arrange for the required support resources as defined in the Division of Responsibilities, in a timely manner. 38. Weather Delays 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 bill ed additionally in accordance with the extra work and outage extension provisions of this proposal. Purchaser is responsible for providing weather protection. 39. Crane(s), Lifting Devices and Rigging Purchaser is responsible for ensuring that all Purchaser 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. Purchaser is responsible for making Copyright 2025 Siemens Energy, Inc. Page 21 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. sure that all documentation and certifications are available for review by SEI prior to the outage. 40. Priority Use of Crane The above price is based on SEI having priority use of the crane during all work. Delays in work due to the crane not being available, would be considered extra work. 41. 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 SEI 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). 42. Hazardous Material and Waste SEI 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 Purchaser for review and acceptance. Any hazardous material or waste generated, as a result of the work performed by SEI, or any unused portions thereof, will be disposed of by and to the account of Purchaser . SEI 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 Purchaser has removed all asbestos bearing material prior to the start of the SEI work scope. 43. Asbestos Containing Materials In no event shall SEI be obligated to install, disturb, handle, remove or dispose of any asbestos containing material (ACM) and/or any presumed ACM that may be encountered during the project. The price offered assumes that all ACM has been removed by Purchaser prior to the start of SEI 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. SEI will inform Purchaser of these costs as they arise. This effort, if required, will be Extra Work. 44. Thermal Insulation Removal, replacement and clean-up of thermal insulation will be performed by Purchaser. Should Purchaser require that this Work be performed by SEI as part of the outage Work scope, SEI will subcontract this Work to a qualified subcontractor. SEI personnel are to be protected from any environmental hazards associated with the removal, replacement and clean-up of thermal insulation. Disposal of all thermal insulation material generated as a result of this Work will be performed by Purchaser. 45. Lead Coatings Testing for lead content in paint and other coatings must be performed by Purchaser prior to the start of the outage. However, if requested by Purchaser, SEI 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.), Purchaser is responsible for the lawful and timely Copyright 2025 Siemens Energy, Inc. Page 22 of 22 SF242257833, Rev. 3 All rights reserved. Siemens Energy, Inc. Confidential August 28, 2025 Siemens Energy is a trademark licensed by Siemens AG. removal and disposal of the lead-containing materials. Purchaser is also responsible for any Delays to SEI as a result of the lead coatings. 46. Confined Space This inspection on Purchaser’s Unit may require SEI’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. SEI requests the following support from Purchaser 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 Cross/CPR certified, SCBA certified, etc. and must have successfully performed a rescue at that location with a mannequin or employee. SEI can provide items 1 and 2 at an additional cost, if requested by Purchaser. However, due to the unique requirements of the rescue team, Purchaser is to provide the requirement of item 3. 47. Welding ASME Code rules shall be fully complied with where this procedure is used on ASME B & PV Code, ASME B31.1, or National Board Inspection Code ANSI/NB-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 design and fabrication, however, the final acceptance of the design and fabrication sh all 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.