Exhibit EMT-37 in Trans Alaska Pipeline System's et al proceeding under OR89-2 et al: Prepared Direct Testimony of John J Jenkins.

Jnofflclal FERC-Generated PDF of 20040907-0489 Received by FERC OSEC 11/21/2002 in D o c k e t # : O R 8 9 - 2 - 0 1 7 Exlubit EMT - 37 Page 1 of 64 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Trans Alaska Pipeline System, eta/. Docket Nos. 0R89-2-000, et aL THE STATE OF ALASKA BEFORE THE REGULATORY COMMISSION OF ALASKA Trans Alaska Pipeline System ) Quality Bank Proceedings ) Dockets P-89-2, e t al._: ) Consolidated PREPARED DIRECT TESTIMONY OF JOHN H. JENKINS g ~ tlOOl~0a! U Jnofflclal FERC-Generated PDF of 20040907-0489 Received by FERC OSEC 11/21/2002 in Docket#: OR89-2-017 Exhibit E M T - 37 I Page 2 of 64 f I. BACKGROUND OF THE WITNESS ......................................... 4 H. SUMMARY OF TESTIMONY ......................................... 7 m. HEAVY DISTILLATE PROCESSING COSTS ........................ 11 A. C a p i t a l Cost o f the V i r g i n Distillate H y d r o t r e a t e r . . . . . . . . . . . . . . . . . . . . . . 13 qw Location A d j u s t m e n t ..................................... 14 alO B. O t h e r Capital Costs ........................................... 16 1. OHsite o r O S B L Costs ........................................ 16 ql 2. O w n e r ' s Costs ......................................................... 19 s~ 3. I n t e r e s t D u r i n g Construction. .................................... ..21 C. Capital Recovery Factor. .................................................. .-22 D. Operating Costs ............................................................... 23 F_ Total Cost S u m m a r y ................................................................. 23 IV. RESID PROCESSING COSTS ................................................... 24 A. Detailed Line Item Estimate O f Capital Costs ..................................... .26 I. Overview ............................................................................ .2.6 2. Capltal Costs of the Major Process Units .............................. .27 a. Delayed Coker ........................................... .28 b. Coker G a s (9/IHydrotreater. ......................... -.35 c. Coker Naphtha Hydrotreater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 d. C o k e r Distillate H y d r o t r e a t e r . ............................... .39 e. Sulfur Plant ...................................... 41 3. Other Capital Costs ........................................ 46 a. Off'site C o s ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Jnofflclal FERC-Generated PDF of 20040907-0489 Received by FERC OSEC 11/21/2002 in D o c k e t # : O R 8 9 - 2 - 0 1 7 Exhibit E M ' f - 3 7 i Page 3 of 6 4 Ix Owner's Costs .......................................... -52 c. Interest During Construction. . . . . . . . . . . . . . . . . . . . . . . . . -53 4. Summary of Detailed Estimate of Capital Costs . . . . . . . . . . . . . . . . . . -54 Bo Cost Savings Attributable to Potential Econo