200310281st Response Attachments.pdf

ATTACHMENT TO
RESPO NSE TO
REQUEST NO. 24
.......................................
Coal Price Forecast
The IRP coal price forecast is a
composite of Idaho Power spot coal
forecasts for its three existing thermal
plants. The plant forecasts are created using
current coal and rail transportation market
information and then escalated based on the
2001 WEF A long-range forecasts. The
resulting $/MMBTU cost estimate
represents the delivered cost of coal
including rail cost, coal cost, and use taxes.
Transmission Resources
Upgrades
Adequate transmission capacity is
critical to the success of a strategy that
utilizes purchases from the wholesale
market to supplement and optimize the IPC-
owned and purchased generation resources.
Transmission alternatives do not generate
additional energy or capacity, but the
transmission system does provide access to
energy markets.
Traditionally, it has been a generally
accepted proposition among electric utilities
in the West that it is less expensive and
faster to construct new transmission
facilities than to construct new generation.
However, in recent times, the regulatoryanalyses and other right-of-way
requirements associated with new
transmission facilities construction have
resulted in much longer lead times and
substantially higher costs for new
transmission facilities when compared to
prior time periods. Typically, the permitting
and construction lead times are five to eight
years, depending on transmission distance
and the voltage level.
The costs and impacts of potential
transmission upgrade alternatives are
investigated as part of the IRP. The portion
of the Company s transmission system that
would provide the most immediate benefit
would be the upgrade of the transmission
lines between the Pacific Northwest regionand the Boise area. Transmission
construction alternatives for the Pacific
Northwest lines would be significantly long
(between 170 and 400 miles). Analyses of a
range of transmission alternatives, including
substation additions, show construction
costs of approximately $400 000
$700 000 per mile and incremental
transmission costs between $45 and $90/kW
per year for additional Pacific Northwest
transmission connections.
The projected Pacific
transmission upgrade costs are
approximately 500 percent higher than
Idaho Power s embedded transmission costs.
Assuming a 50 percent annual load factor
(typical for interconnections) and further
assuming that all project capacity is
subscribed construction of new
transmission lines results in 10 to 20
mills/kWh added to Pacific Northwest
purchased energy prices. If some of the
transmission capacity is unsubscribed, thenthe estimated transmission upgrade
estimates are further increased.
Transmission upgrades across the
Borah West path located west of American
Falls, Idaho, are estimated to cost about
$15/kW per year. Upgrades to the Borah
West Path would be necessary for network
resource developments east of Borah.
New Transmissi9n Projects
Southwest Intertie Project (SWIP)
Idaho Power has obtained the
necessary right-of-way permits to construct
the Southwest Intertie Project, a 500-
transmission line to connect the Company
Midpoint Substation with Southwest
transmission lines at a location near Las
Vegas, Nevada. Uncertainties associated
Chapter Future Resource Options
TT A CHMENT TO
RESPO NSE
REQUEST NO. 42
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,
STATE OF IDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALITY
1410 North Hilton. Boise, Idaho 83706-1255. [phone] Dirk Kempthome, Governor
C, Stephen Allred, Director
September 9, 2002
CERTIFIED MAIL No. 7000 1670 0013 9128 6720
Mr. Robert Looper
Mountain View Power , LLC
1015 W, Hays Street
Boise, ID 83702
RE:AIRS Facility No, 039-00025, Mountain View Power, LLC, Mountain Home
Final Permit to Construct
Dear Mr. Looper:
The Department of Environmental Quality (Department) is issuing Permit to Construct (PTC) No, 039-00025 for
Mountain View Power, LLC Mountain Home facility in accordance with IDAPA 58,01,01,200 through 223 Rules for
the Control of Air Pollution in Idaho, This PTC is effective immediately and is based on your permit application
received on March 5 2001,
This permit does not release Mountain View Power from compliance with all other applicable federal, state, or local
laws, regulations, permits, o~ ordinanceso
Please pay particular attention to the reporting requirements contained in Paragraph 5 of the General Provisions
section of the permit. This information is needed to properly track the progress of the permit. . Please refer to the
appropriate permit number when submitting reports required in the Reporting Requirements section of the permit.
Michael McGown of the Boise Regional Office will contact you regarding a meeting with the Department to discuss
the permit terms and requirementso In addition to your facility's plant manager, the Department recommends the
following representatives attend the meeting: your responsible official; environmental . contact, and any operations
staff responsible for day-to-day compliance with the permit conditionso
You, as well as any other entity, may have the right to appeal this final agency action pursuant to IDAPA 58.01.23,
Rules of Administrative Procedure before the Board of Environmental Quality, A petition may be filed with the
Hearings Coordinator, Department of Environmental Quality, 1410 N. Hilton, Boise, ID 83706-1255, within 35 days
of the date of this decisiono However, the Department encourages you to contact us to discuss any concerns you
may have with the enclosed permit prior to filing a petition for a contested caseo
If YOl,l have any questions, please contact Daniel Salgado at [phone] or dsalgado~deq.state.id.us.
/;,
/7;*"((1
Kat~:e
Administrator
Air Quality Divfsio
KKlMJSlbh Pi-~ct No, P-OOO901
G:\AIR QUALlTY\STATIONARYSOURCE\SS LTD\PTC\MOUNTAIN VIEW POWER, LLC\FINAL PREP\P-OOO901 LETTER DOC
Enclosurescc: Michael McGown, Boise Regional Office Sherry Davis, Technical Services Laurie Kral , EPA Region 10
p " "
Air Pollution PERMIT NO.: 039 - 00025
AQCR:CLASS:
SIC:4911 ZONE:
PERMIT TO CONSTRUCT
State of Idaho
Department of Environmental Quality UTM COORDINATE (km):603.0, 4 781.
1. PERMITTEE
Mountain View Power LLC
2, PROJECT
Gas Turbine Electric Power Generation Facility
TITLE
Principal
TITLE
Principal
STATE
TELEPHONE
[phone]
TELEPHONE
[phone]
COUNTY
Elmore
ZIP
83702
3, MAILING ADDRESS
1015 W, Hays Street
4, FACILITY CONTACT
Robert 0, Looper
5, RESPONSIBLE OFFICIAL
Robert Do Looper
6, EXACT PLANT LOCATION
% mile northwest of intersection of Interstate 84 and Highway 20
CITY
Boise
7, GENERAL NATURE OF BUSINESS & KINDS OF PRODUCTS
. Electric power generation
8, GENERAL CONDITIONS
This permit is issued according to IDAPA 580 01001.200, Rules for the Control of Air Pollution in Idaho, and
pertains only to emissions of air contaminants regulated by the state of Idaho and to the sources specifically
allowed to be constructed by this permit.
This permit (a) does not affect the title of the premises upon which the equipment is to be located; (b) does
not release the permittee from any liability for any loss due to damage to person or property caused by,
resulting from, or arising out of the design, installation, maintenance , or operation of the proposed equipment;
(c) does not release the permittee from compliance with other applicable federal , state, tribal, or local laws
regulations, or ordinances; (d) in no manner implies or suggests that the Department of Environmental
Quality or its officers, agents, or employees, assumes any liability, directly or indirectly, for any loss due to
damage to person or property caused by, resulting from, or arising out of design, installation maintenance,or operation of the proposed equipment.
This permit is not transferable to another person, place, or piece or set of equipment. This permit will expire
If construction has not begun within two years of its issue date or if construction is suspended for one year.
This permit has been granted on the basis of design information presented with its application. Changes of
design or equipment may require Department approval pursuant to the Rules for the Control of Air Pollution
in Idaho, IDAPA 58.01.01.20 ,et seqo
DATE ISSUED:Se tember 9, 2002
KK\MJS\bh TATIONARY SOURCE\SS L TD\PTC\MOUNTAIN VIEW POWER, LLC\FINAL PREP\P-QOO901 PERMIT,DOC
AQCR
CEMS
CFR
Department
dscf
EPA
IDAPA
Ib/hr
MMBtu
NOx
NSPS
PM1o
PTC
SIC
scf
S02
TAP
T/yr
!-1m
UTM
VOC
ACRONYMS, UNITS, AND CHEMICAL NOMENCLATURE
Air Quality Control Region
Continuous Emissions Monitoring System
Code of Federal Regulations
carbon monoxide
Department of Environmental Quality
dry standard cubic feet
S, Environmental Protection Agency
grain (11b = 7 000 grains)
a numbering designation for all administrative rules in Idaho promulgated i!'1
accordance with the Idaho Administrative Procedures Act
kilometer
pound per hour
million British thermal units
nitrogen oxides
New Source Performance Standards
oxygen
particulate matter
particulate matter with an aerodynamic diameter less than or equal to a nominal 10
micrometers
permit to construct
Standard Industrial Classification code
standard cubic feet
sulfur dioxide
toxic air pollutants
tons per year
micrometers
Universal Transverse Mercator
volatile organic compound
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Permittee:Mountain View Power, LLC Date Issued:September g, 2002
Location:Mountain Home, Idaho
PERMIT TO CONSTRUCT SCOPE
Purpose
The purpose of this PTC is to establish emissions limits, operating conditions, and monitoring and
recordkeeping requirements for Mountain View Power's (the permittee) Mountain Home Energy Project.
The Mountain Home facility is defined as a new stationary source,
Regulated Sources
Table 1,1 below lists all sources of emissions that are regulated. in this PTCo
Table 101 REGULATED EMISSIONS SOURCES
Permit Source Description Emissions Control(s)Condition
Two General Electric LM6000 SPRINT/LM6000 PC'
NOx emissions controlled by water injection,
combustion turbines CO, TAP , and VOC emissions controll~d with
oxidation catalyst
One 50 OOO-galion aboveground storage tank None
Page 3 of 13
II ~:~mitlee:Location:
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Mountain View Power, LLC Date Issued:September 9 2002
Mountain Home, Idaho
COMBUSTION TURBINES
Process Description
Two General Electric LM6000 SPRINT/LM6000 PC simple-cycle combustion turbines (CT) will be installed
at the facility for the purposes of power generation for retail sale, Each CT drives a single generator.
Control Description
The NOx emissions will be controlled with water injection, Emissions of CO and VOCswill be controlled
with an oxidation catalyst. For the purposes of this PTC, the control efficiency of the oxidation catalyst is
assumed to be approximately 70% for CO and approximately 50% for VOCs,
Emissions Limits
and CO Emissions
Emissions of NOx and CO from any gas twrbine stack shall not exceed the following amounts, by volume on
a dry basis (ppmvd) and at 15% O2, When fired with natural gas, NOx emissions shall not exceed a daily
average of 25 ppmvd , and CO emissions shall not exceed a daily average of 10 ppmvd, When fired with
No, 2 distillate (diesel) fuel , NOx emissions shall not exceed a daily average of 42 ppmvd, and CO emissions
shall not exceed a daily average of 6 ppmvdo
In addition , NOx and CO emissions shall not exceed any corresponding emissions rate limit listed in
Table 2.1.
(IDAP A 58.01.01.211.01)
2.4 Other Criteria Pollutant Emissions
Emissions of PM1o, NOx, and CO from any gas turbine stack shall not exceed any corresponding emissions
rate limit listed in Table 2.
(IDAPA 58.01.01.211.01)
Table 2.1. EMISSIONS LIMITS - CRITERIA POLLUTANTS
2490 249,
Page 4 of 13
I pe
ittee:
Location:
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Mountain View Power, LLC Date Issued:September 9, 2002
Mountain Home, Idaho
Opacity Limit
Emissions from any of the CT stacks shall not exceed 20% opacity for a period or periods aggregating more
than three minutes in any 60-minute period, Opacity shall be determined by the procedures contained in
IDAPA 58.01.010625,
(IDAPA 58.01.01.625)
Operating Requirements
Fuel Use
The permittee shall combust natural gas or No; 2 distillate fuel oil exclusively in the two combustion turbines
at the facility ,
(IDAPA 58.01.01.211.01)
Fuel Sulfur Content
Based on the applicant's request, natural gas burned in any turbine shall not contain sulfur in excess of
one grain per 1 00 standard cubic feet (1 gr/100 set),
(IDAPA 58.01.010211.01)
No, 2 distillate oil burned in any turbine shall not contain sulfur in excess of 00 5% by weight.
(IDAPA 58.01.01.728.02)
Fuel Usaoe - No, 2 Distillate Fuel Oil
The aggregate hours that Noo 2 distillate fuel oil is combusted in the CTs shall not exceed 1 600 hours per
any consecutive 12-month periodo
(IDAPA 58.01.01.211.01) -
Reasonable Control of Fuoitive Emissions
All reasonable precautions shall be taken to prevent PM from becoming airbome. In determining what
reasonable , considerations will be given to factors such as the proximity of dust-emitting operations to
human habitations and/or activities and atmospheric conditions that might affect the moverT:Ient of PMo
Some of the reasonable precautions include, but are not limited to, the following:
Use, where practical, of water or chemicals for control of dust in the demolition of existing buildings or
structures, construction operations , the grading of roads, or the clearing of lands.
Application , where practical, of asphalt, oil, water or suitable chemicals to, or covering of dirt roads,
mat~rial stockpiles, and other surfaces which can create dust.
Installation and use, where practical, of hoods , fans and fabric filters or equivalent systems to enclose
and vent the handling of dusty materials. Adequate containment methods should be employed during
sandblasting or other operations.
Page 5 of 13
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Permittee:Mountain View Power, LLC Date Issued:September 9 2002
Location:Mountain Home, Idaho
Covering, where practical, of open-bodied trucks transporting materials likely to give rise to airborne
dustso
Paving of roadways and their maintenance in a clean condition , where practical.
Prompt removal of earth or other stored material from streets, where practical.
(IDAPA 58.01.01.651)
Monitoring Requirements
llil. Monitorinq
The permittee shall fully comply with all monitoring requirements established by 40 CFR 72,9(b)0 In
particular, the permittee shall install, certify, operate , and maintain , in accordance with all the requirements
of 40 CFR 75, a NOx GEMS (consisting of a NOx pollutant concentration monitor and an O2 or carbon
dioxide diluent gas monitor) with an automated data acquisition and handling system for measuring and
recording the NOx concentration (in ppm) and NOx emissions rate (in Ib/MMBtu) to the atmosphere from
each gas turbine stack,
The permittee shall fully comply with all requirements set forth in 40 CFR 75, Subpart F and 40 CFR 60
Appendix F 0 All records shall be made available for inspection to Department representatives upon request.
" .
(40 CFR 72.
CO Monitorinq
The permittee shall install, certify, operate, and maintain a GEMS consisting of a CO pollutant concentration
monitor and an O2 diluent gas monitor. The CEMS shall be equipped with an automated data acquisition
and handling system for measuring and recording the CO concentration (in ppm) and CO emissions rate (in
Ib/MMBtu) discharged to the atmosphere from each gas turbine stack. The permittee shall fully comply with
all requirements set forth in 40 CFR 60, Appendix F.
(IDAPA 58.01.01.211.01)
PM Performance Test
For each gas turbine, within 60 days after achieving the maximum production rate at which the source will
operate , but not later than 180 days after initial start-up, the permittee shall conduct performance tests when
firing fuel oil. The performance test shall measure PM1o emissions from one gas turbine emissions stack to
demonstrate compliance with the corresponding emissions limits in Permit Condition 2.40 Applicable test
procedures include, but are not limited to, EPA Methods 201a and 202.
The performance test, and any subsequent performance tests conducted to demonstrate compliance, shall
be performed in accordance with IDAPA 58001.01.157 and General Provision 6 of this permit. Visible
emissions shall be observed and recorded during each performance test run !-Ising the methods specified in
IDAPA 58.01.01.625. During the performance test, the amount of fuel used shall be recorded.
(IDAPA 58.01.01.211.01)
Page 6 of 13
I pe
m~:
Location:
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Mountain View Power, LLC Date Issued:September 9, 2002
Mountain Home, Idaho
Turbine NO~ - New Source Performance Standard
For each gas turbine, within 60 days after achieving the maximum production rate at which the source will
operate, but not later than 180 days after initial start-up, the permittee shall conduct a performance test to
measure NOx emissions from the gas turbine emissions stack in accordance with 40 CFR 600332 and the
test methods and procedures in 40 CFR 60,335 and 40 CFR 6008, The initial performance test, and any
subsequent performance tests conducted to demonstrate compliance, shall be performed in accordance
with IDAPA 58.01,010 157 and General Provision 6 of this permit. Visible emissions shall be observed and
recorded during each performance test run using the methods specified in IDAPA 58,01,010625. During the
performance test, the amount of fuel used shall be recordedo
(40 CFR 60.332)
Monitorino
When in use, the permittee shall monitor and record the information listed below for each turbine at the
facilityo All data shall be kept onsite for a minimum of two years and shall be made available to Departmentrepresentatives upon request.
The aggregate amount of hours that fuel oil is bumed in the CTsperany consecutive 12-month period
The NOx emissions per consecutive 12-month period
The CO emissions per consecutive 12-month period
(IDAP A 58.01.01.211.01)
Fuel Sulfur and Nitrooen Content
The owner or operator of any stationary gas turbine subject to the provisions of 40 GFR Part 60, Subpart GG
shall monitor sulfur content and nitrogen content of the fuel being fired in the turbines. All data shall be kept
onsite for a minimum of five years and shall be made available to Department representatives upon request.
The frequency of determination of these values shall be as follows:
If the turbine is supplied its fuel from a bulk storage tank, the sulfur and nitrogen content shall be
determined upon each occasion fuel is transferred to the storage tank from any other source.(40 CFR 60.334(b)(1))
If the turbine is supplied its fuel without intermediate bulk storage, the sulfur and nitrogen content shallbe determined daily. (40 CFR 60.334(b)(2))
In accordance with a custom schedule developed by the permittee and approved by the EPA.(40 CFR 60.334(b)(2))
The permittee may, upon EPA approval and notification to the Department, use GEMS emissions data to
ensure compliance with 40 CFR 60.332.
(IDAPA 58.01.01.211.01)
Page 7 of 13
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Permittee:Mountain View Power, LLC Date Issued:September 9, 2002
Location:Mountain Home, Idaho
Fuqitive Dust
The permittee shall monitor and maintain records of the frequency and the method(s) used (Le., water
chemical dust suppressants, etc,) to reasonably control fugitive emissions.
The permittee shall maintain records of all fugitive dust complaints received, The permittee shall take
appropriate corrective action as expeditiously as practicable after a valid complaint is receivedo The
records shall, at a minimum, include the date each complaint was received and a description of the
following: the complaint, the permittee s assessment of the validity of the complaint, any corrective
action taken , and the date the corrective action was taken, (IDAP A 58.01.01.211.01)
Reporting Requirements
NO. and CO GEMS Certification/Recertification Tests
The permittee shall submit to the Department a test protocol'for each certification and recertification of the
NOx and CO GEMS required in Permit Conditions 2,10 and 2,, respectively, for reviewo Each test protocol
shall be submitted to the DePi3rtment for approval at least ~O days prior to the respe~tive test date,
(IDAPA 58.01.01.211.01)
Required NO. ContinuousEmissionsMonitorinqSvstenil~formatibn
The permittee shall fully comply with the' requirements seUortl;1 ,in 40 CFR 75, Subpart G. 'In acGordance
with 40 CFR 75.60(b)(2), copies of all certification or recertification notifications , certification or recertification
applications , and monitoring plans shall be submitted to the Department. The copies shall be submitted to
the Department no later than the respective date specified in 40 CFR 75, SubpartGfor submission to the
EPA Administratoro
In addition , the permittee shall submit to the Department a written report (including all raw field data, etc.) for
each certification or recertification test required by Permit Condition 20 10. Each report shall be submitted to
the Department within 30 days of the date on which the respective test was completedo
(40 CFR75, Subpart G)
Performance Test Protocols
The permittee is strongly suggested to submit a test protocol for each performance test required in this
permit to the Department for review at least 30 days prior to the test date.(IDAPA 58.01.01.211.01)
Performance Test Reports
The permittee shall submit a written report of performance test results for the tests required in this permit to
the Department within 30 days of performing each respective test.(IDAPA 58.01.01.211.01)
Page 8 of 13
bitlOO:Location:
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Mountain View Power, LLC Date Issued:September 9, 2002
Mountain Home, Idaho
Excess NOy Emissions
The permittee shall submit to the Department copies of all excess emissions and monitoring 'systems
performance reports and/or summary reports for the NOx and CO GEMS, The reporting requirements and
report format shall be the same as those specified in 40 CFR 60, 7(b) through (d) and IDAPA 58.01,01,130
through 1360 For NOx and CO emissions from the gas turbine stack, periods of excess emissions are any
and all hourly NOx and CO concentrations as measured by the NOx and CO CEMSs, respectively, which
exceed the allowable concentrations given in Permit Condition 20 , corrected to 15% oxygeno
(40 CFR 60.7(b) through (d), IDAPA 58.01.01.130 through 136)
Excess SO? Emissions
The permittee shall submit to the Department a report of all excess emissions of S02 in accordance with
40 CFR 6007(b) through (d) and IDAPA 58001.01,130 through 136, For this report, excess S02 emissions
are defined in 40 CFR 60,334(1;:)(2) as any daily period during which the sulfur content of the fuel being fired
in the gas turbine exceeds 0,8%,
(40 CFR 60.7(b) through (d), IDAPA 58.01.01'.130 through 136)
Other Exceedances
The permittee shall submit to the Department a report of any and all exceedances of any emissions rate
visible emissions , or operating requirement listed in Permit Condition 2 in accordance with IDAPA
5800t,01,130through136,
(IDAPA 58.01.01.130 through 136)
Reports and Certifications
All periodic reports and certifications required by this permit shall be submitted to the Department within
30 days of the end of each specified reporting period unless specified otherwise in this permit. Excess
emissions reports and notifications shall be submitted in accordance with IDAPA 58.01.010130 through 136.
Reports, certifications, and notifications shall be submitted to the following:
Air Quality Permit Compliance
Department of Environmental Quality
Boise Regional Office
1445 N Orchard St.
Boise, 10 83706-2239
Tel.: [phone]
Fax: [phone]
In accordance with 40 CFR 60.4, all requests, reports, applications, submittals, and other communications to
the EPA Administrator pursuant to 40 CFR 60 (NSPS) shall be submitted in duplicate to the Region 10
Office of the EPA to the attention of the Director of the Office of Air Quality at the address below. Copies of
all information required to be submitted to EPA for applicable NSPS requirements, shall also be submitted to
the Department.
EPA Region 10
Air Operating Permits, OAQ-107
1200 Sixth Ave.
Seattle, WA 98101
Page 9 of 13
. Emittee:Location:
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Mountain View Power, LLC Date Issued:
Mountain Home, Idaho
Permit Application Reauirements
September 9 , 2002
25,1 The permittee shall submit to the Department a complete application for an original Tier I operating permit
within 12 mont!1s of operational start-upo
(IDAPA 58.01.01.313.01.
2502 The permittee shall comply with the Acid Rain Permit requirements in accordance with 40 CFR 72,9(a)and
40 CFR Part 72 , Subpart
Certification of Documents
(40 CFR 72)
All documents , including, but not limited to, records, monitoring data , supporting information. testing reports
or compliance certifications submitted to the Department shall contain a certification by a responsible official. .
The certification shall state that, based on information and ~eliefformed after reasonable inquiry, the
statements and information in the document are true, accurate , and complete.
, , .
Page 10 of 13
(IDAP A 58.01.01.12;3)
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Permittee:Mountain View Power, LLC Date Issued:September 9 , 2002
Location:Mountain Home, Idaho
ABOVEGROUND STORAGE TANK
The permittee shall keep readily accessible records showing the dimension of the 50 000-galion
aboveground storage tank and an analysis showing the capacity of the storage vessel.
(40 CFR 60.11 Ob(c), 40 CFR 60.116b(b))
The permittee shall keep copies of the required records in Permit Condition 3.1 for the life of the fuel storagetank.
. .
(40 CFR 60.110b(c), 40 CFR 60.116b(a))
." . , ., ,.- -
Page 11 of 13
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Permittee:Mountain View Power, LLC Date Issued:September 9,2002
Location:Mountain Home, Idaho
EMISSIONS INVENTORY
Summaries of the maximum emission estimates are given in Table 40
Mountain View Power, LLC
Emissions Limits - Hourly (Ib/hr) and Annual (T/yr)
PM1o SO2 NOx VOC
Source Description Ib/hr T/vr Ib/hr T/yr Ib/hr T/yr Ib/hr T!yr Ib/hr T/yr Ib/hr T/vr
Gas turbine stack (1)11,11,18,76,11,
Aggregate emissions 22,96.4 22,96.4 37.4 37,153.4 249,130 60.4 22.4 249,
Table 4.1 EMISSION ESTIMATES
Page 12 of 13
, ,
AIR QUALITY PERMIT TO CONSTRUCT NUMBER: 039-00025
Permittee:Mountain View Power, LLC Date Issued:September 9, 2002
Location:Mountain Home , Idaho
PERMIT TO CONSTRUCT GENERAL PROVISIONS
All emissions authorized herein shall be consistent with the terms and conditions of this permit and the
Rules for the Control of Air Pollution in Idaho, The emissions of any pollutant in excess of the limitations
specified herein, or noncompliance with any other condition or limitation contained in this permit, shall
constitute a violation of this permit and the Rules for the Control of Air Pollution in Idaho, and the
Environmental Protection and Health Act, Idaho Code 939-101 , et seqo
The permittee shall at all times (except as provided in the Rules for the Control of Air Pollution in Idaho)
maintain in good working order and operate as efficiently as practicable, all treatment or control facilities or
systems installed or used to achieve compliance with the terms and conditions of this permit and other
applicable Idaho laws for the control of air pollution,
The permittee shall allow the Director, and/or the authorized representative(s), upon tl:1e presentation of
- credentials:
To enter, at reasonable times , upon the premises where an emissions source is located , or in which any
records are required to be kept under the terms and conditions of this permit.
At reasonable times, to have access to and copy any records required to be kept under the terms"and
conditions of this permit, to inspect any monitoring method~ required in this permit
, '
;;Ind require stack
emissions testing in conformance with IDAPA 58,O1,Q10 7 whEm deemed app~opriate by the Director.
3.2
Nothing in this permit 'is intended to relieve or exe'ri\pt th~' permittee from compliance with any applicable
federal, state, or local law or regulation , except as specifically provided herein.
The permittee shall n~tify the Departme , in writin~, of the r~quired information for the followin~' e~ents .
within five working days after occurrence:
Initiation of Construction - Date
Completion/Cessation of Construction - Date
Actual Production Startup - Date
InitialDate of Achieving Maximum Production Rate - Production Rate and Date
If emissions testing is specified, the permittee must schedule such testing within 60 days after achieving the
maximum production rate, but not later than 180 days after initial startup. Such testing must strictly adhere
to the procedures outlined in IDAPA 58,01.01.157 and shall not be conducted on weekends or state holidays
without prior written approval from the Department. Testing procedures and specific time limitations may
modified by the Department by prior negotiation if conditions warrant adjustment. The Department shall be
notified at least 15 days prior to the scheduled compliance test. Any records or data generated as a result of
such compliance test shall be made available to the Department upon request.
The maximum allowable operating rate shall be limited to 120% of the average operating rate attained
during any performance test period for which a test protocol has been granted prior approval by the
Department, unless (1) the test demonstrates noncompliance; (2) a more restrictive operating limit is
specified elsewhere in this permit; or (3) at such an operating rate, emissions would exceed any
emissions limit(s) set forth in this permit.
The provisions of this permit are severable, and if any provision of this permit to any circumstance is held
invalid, the application of such provision to other circumstances, and the remainder of this permit, shall not
be affected thereby,
Page 13 of 13
Air Quality Permitting
Technical Memorandum
Permit to Construct No. 039-00025
MOUNTAIN VIEW POWER, LLC
ELMORE COUNTY
Prepared By:
Michael Stambulis, P .
Permit Writer
Project No. P-000901
Date Prepared:
August 9, 2002
Permit Status:
FINAL PERMIT
PURPOSE
Technical Analysis Mountain View Power, LLC
June 10, 2002
Page 3
The purpose of this memorandum is to satisfy the requirements of IDAPA 58.01,01.200 Rules for the Control
of Air Pollution in Idaho, and to document the factual basis for issuing this PTC.
PROJECT DESCRIPTION
Mountain View Power, LLC (MVP) proposes to construct and operate the Mountain Home Energy Project,
simple-cycle electric generating facility in Elmore County. The Project is located approximately one-half mile
northwest of the intersection of Interstate 84 and Highway 200 When completed , the facility will have a
nominal generating capacity of about 80 megawatts (MW)o The Project will include the installation of up to
two gas CTs, one generator, and related ancillary facilitieso The CTs will be fired with either natural gas or
No, 2 distillate oil (diesel fuel)o
The facility will include the installation of up to two GE LM6000 SPRINT aero-derivative CTso The CTs drive
a single generator situated between the CTs, The CTs will be fired primarily with natural gas with No.
distillate oil as a backup fuel.
SUMMARY OF EVENTS
March 5, 2001
March 15 2001
April 20, 2001
May 21,2001
June 4, 2001
July 2 , 2001
July 13, 2001
through
A\I,gu.st 13, 2001
July 23, 2001
November 2, 2001
November 20, 2001
June 5 , 2002
July 11, 2002
Original PTC application was received by DEQ.
A public meeting was held in Mountain' Home , Idaho by PDA to discu~s the
proposed facilityo
- -
Power Development AssQciates submitted a P.TC applicatio'n that replac~d the
original application., This appl!cation'W~s f~rthe installation of two GE LM~OOO CTs.
. DEQ issued an incompleteness le~er'for the PTC applicationo
Additional information was submitted to DEQ by PDA.
DEQ declared the PTC application complete.
An opportunity for public comment period was held for the proposed project.
A public comment period was not requestedo
,"'-
DEQ issued a consent order for the installation of the GE CTs.
DEQ received additional infonnation from PDA requesting the evaluation of an
alternative set of CTso Representatives of DEQ met with representatives of PDA
and Greystone Environmental Consultants, Inc. to discuss the proposed
. '
modifications to the facility.
DEQ issued a revised consent order for the installation of either the GE CTs or analternative.
DEQ received a letter from Greystone Environmental Consultants, Inc.,on behalf of
PDA, indicating the selection of the GE LM6000 configuration for the facility.
DEQ issued a draft version of the PTCfor facility review.
Technical Analysis MountainView Power, LLC
June 10, 2002
Page 5
Toxics emission factors for industrial turbineso These estimated emission rates were reviewed and
found consistent with DEQ methods, Emissions above the screening emission levels are subject to
air dispersion modeling analyses to demonstrate compliance with the TAP standards given by IDAPA
58001001.210. Information regarding the modeling analyses is provided in Section 3 of thi"s
memorandumo
Table 2, TOXIC AIR POLLUTANT EMISSIONS - NATURAL GAS
Total Hourly Toxic
DEQ Screening
Pollutants Emissions (Ib/hr)a Emission Level
(Ib/hr)
Arcolein 7E-7E-
Acetaldehyde OE-0E-
Benzene 9E-0E-
Benzo(a)pyrene 6E-0E-
Butadiene 2E-2.4E-
Formaldehyde 7E+OO 1 E-
Total PAHs OE-OE-
lb/hr = pounds per hour
pAHs = polyaromatic hydrocart;Jons
Table 3, TOXIC AIR POLLUTANT EMISSIONS - FUEL OIL
Total Hourly Toxic DEQ Screening
Pollutants Emission levelEmissions (lb/hr)a (Ib/hr)
Arsenic 6E-5E-
Benzene 3.4E-0E-
Benzo(a)pyrene 7E-0E-
Beryllium 8E-8E-
Cadmium 0E-7E-
Chromium (Hex)9.4E-6E-
Fol'!T\ald~hyde ...
--
5E-1 E-
HCI 0E-0E-
Manganese 2E-7E-
Nickel 1 E-7E~O5
Total PAHs 6~ 1 E-0E-O6 .
Zinc 1E-7E-
~'_._._..
a Iblhr = pounds per hourb PAHs = polyaromatic hydrocarbons
Based on the modeling analyses, it has been determined that the estimated TAP emissions would not
cause a violation of the acceptable ambient concentrations for non-carcinogens or for carcinogens
(AACsand AACCs, respectively) listed in IDAPA 58.01.01.585 and 586.
Technical Analysis Mountain View Power. LLC
June 10.2002
Page 7
IDAPA 58,01001.203 Permit Requirements for New and Modified Stationary Sources
Mountain View Power demonstrated to the satisfaction of DEO that the facility would comply with
applicable local , state , and federal emission standards , and the facility would not cause or
significantly contribute to a violation of any ambient air quality standardo
IDAPA 58.01.01.205 Permit Requirements for New Major Facilities in Attainment or
Unclassifiable Areas
In accordance with IDAPA 58.01.205.01.04., since the proposed facility is not a designated facility,
and it does not have the potential to emit more than 250 T/yr of any regulated air pollutant, the
requirements of Sections 2050010 , 205001.b.ii , and 205,01,c are not applicable to this project. In
accordance with IDAPA 58001 001 0205,01 o b.i , NMOS, the allowable emission increases from the new
major facility would not cause or significantly contribute to violations of any ambient air quality
standard, See comments regarding IDAPA 58001,010577 below.
IDAPA 58001,01,210 Demonstration of Preconstruction Compliance with Toxic
Standards
Mountain View Power demonstrated preconstruction compliance with the toxic standards by showing
that the estimated controlled ambient concentrations of TAPs are less than the applicable screening
emission levels and/or the acceptable ambient concentration levels listed in IDAPA 58.010010585 and
586, In particular, compliance has been demonstrated for the requirements of IDAPA
58.01.01.210.05,, & 08, For additional information , see Sections 2 and 3 and-Appendix D.
IDAPA 58001001.212 ObliQation to Comply
Mountain View Power is responsible to comply with all applicable local, state, and federal statutes
rules, and regulations.
IDAPA 58001.01.301 Requirement to Obtain a Tier I Operatina Permit
No owner or operator may operate any Tier I source without an effective Tier I operating permit.
However, an exception is allowed. No Tier I operating permit is required if the owner or operator is in
compliance with Sections 311 through 315 of the Rules and the Department has nottakenfinal actio
on the Tier I application. A key requirementfor demonstrating compliance with Sections 311 through
315is given by IDAPA 58.01.010313.01(b). This rule requires thattheowner or operator oUhe Tier I
source shall submit to the Department a complete application for an original Tier I operating permit
within 12 months after becoming a Tier I source or commencing operation. Therefore, a condition to
require submittal of a complete Tier I operating permit application was included in the reportingrequirements section of the PTC. '
IDAPA 58.01.01,577 Ambient Air Quality Standards for Specific:Air Pollutants
Mountain View Powerdemoristrated pre-construction compliance with the NAAQSby showing that
the emission sources at the proposed facility would not cause or significantly contribute to a violation
of any ambient air quality standard as given by IDAPA 58.01.01.575. For detaUs, see Section 3 and
Appendix Do
Technical Analysis Mountain View Power, LLC
June 10, 2002
Page 9
600334(a): The owner or operator of any stationary gas turbine using water injection to control NOx
emissions shall install and operate a continuous monitoring system to monitor and record the fuel
consumption and the ratio of water to fuel being fired in the turbine. The system shall be accurate to
within :1:5%. This requirement is applicablA end h8~ been included in the monitoring and
recordkeeping section of the PTC.
60,334(b): The monitoring requirements for sulfur and nitrogen content in fuels given by 60.334(b)(1)
& (2) are applicable to the project and have been included in the monitoring and recordkeeping
section of the PTCo The sulfur and nitrogen content of the fuel being fired must be determined upon
each delivery to a bulk storage tank , or daily if no intermediate bulk storage is utilized.
60.334(c)(1) and (c)(2): The reporting requirements for excess emissions of nitrogen oxides given by
60.334(c)(1) are applicable and have been included in the reporting section of the PTC. Any one-
hour period which the average water-to-fuel ratio falls below the accepted value, any period which the
fuel-bound nitrogen content exceeds determined accepted values, and any daily period which the
sulfu~ content of fuel being fired exceeds 0,8% must be reported. An eXC3S~ o~ ~ulfulcontent is no~ '
likely to occur since the PTC contains sulfur content limits which are considerably less than 008% the
turbine fuel natural gas, However, this NSPS requirement was still included in the PTC because it is
applicable" and as such, will need to be included in the forthcoming Title V operating permit.
600335: The test methods and procedures for nitrogen oxides and sulfur oxides, specified in 60,335
are applicable and have been included in the monitoring section of the PTC.
40 CFR Part 60. Subpart Kb Standards of Performance for Volatile OrQanic liquid StoraQe
Vessels (IncludinQ Petroleum liquid Sforaoe Vessels) for
Which Construction. Reconstruction. or Modification
Commenced After July 23. 1984
The facility is equipped with one 50 000-galion AST containing diesel fuel. The following portions of
600110b apply to this AST.
600 110b(c): Storage vessels with a capacity greater than about 40,000 gallons storing a liquid
with a maximum true vapor pressure of less 3.5 kilopascals (kPa) are exempt from the general
provisions of 40 CFR 60.and from most of the portions of Subpart Kb. The 50,000..galion AST
contains diesel fuel which has a true vapor pressure less than 3.5 kPa. Therefore; the ASTs at the
facility qualify for the exemptions, The remaining applicable sections are discussed below.
60.116b(b): The facility will keep readily accessible records 'showing the dimensions of the ASTs and
an analysis showing the capacity of the ASTs. These records will be kept at the facility for the lite of
the ASTs as provided in 60.116b(a).
IDAPA 58.01.01,625 Visible Emissions
No CT at the facility shall discharge any pollutant to the atmosphere from any of the turbine stacks for
a period or periods aggregating more than three minutes in any 60-minute period which is greater
than 20% opacity as determined by the EPATest Method
IDAPA 58.01.01.650 Rules for Control of FuQitive Dust
The facility is required to take all reasonable precautions to prevent the generation of fugitive dust.
Technical Analysis Mountain 'view Power, LLC
June 10,2002
Page 11
7.2 OperatinQ Requirements
The permittee evaluated turbine emissions when combusting natural gas or No.2 distillate 'oil;
therefore, the permittee is required to combust natural gas or Noo 2 distillate oil exclusively in theturbineso
For the turbines , emission estimates provided in the permit application and the emission limits
established in the permit have been based upon a maximum sulfur 1 grain/100 standard cubic feet for
natural gas, Since these sulfur contents have been used as the basis for emission estimates and
subsequent dispersion modeling analyses, they have also been established as limits within the
permit.
The PTC limits the aggregate amount of hours that No, 2 distillate oil is combusted in the turbines to
600 hours per consecutive 12-month period to limit the ambient impacts from nickel emissions to
below regulatory limits,
Monitorinq and Recordkeepinq Requirements
The permittee is required to install a GEMS to measure NOx emissions in accordance with the acid
rain provisions in 40 CFR Part 720 The permittee is also required to conduct a performance test for
NOx emissions in accordance with the NSPS in 40 CFR 60.3320
\ ,
The permittee is required to install a GEMS to measure CO emissions, The permittee requested a
limit on CO emissions per consecutive 12-month period in order to avoid PSD revieW. The CEMS to
measure CO emissions is required to ensure CO emissions per consecutive 12-month period remain
b~low the permitted limit.
The permittee is required to conduct a performance test to ensure compliance with the permitted
PM1o emissions limits.
Public Comment
From July 13 through August 13, an opportunity for public comment period was held for the proposed
.#.
,- . project. . DEQ did not receive a request for a public comment period for this PTC.
Technical Analysis Mountain View Power, LLC
June 10, 2002
Page 13
RECOMMENDATION
Based on review of application materials and all applicable state and federal rules and regulations, staff
recommends Mountain View Power, LLC be issued PTC Noo 039-00025 for the proposed Mountain Home
Energy Project No public comment period has been requested, and the project does not involve PSD
requirements.
MJS/bh G:\AIR QUALlTY\STATIONARY SOURCE\SS L TO\PTC\MOUNTAIN VIEW POWER, LLC\FINAL PREP\P-OOO901 TECH MEMO,DOC
cc:Joan Lechtenberg, Air Quality Division
Mike Gown, Boise Regional Office
Sherry Davis, Technical Services Division
r,::i';
. , ...;~
GE AERO ENERGY PRODUCTS/GE LM6000.$PRINT w/o VlGVs Estimated Average Engine Pertormance NOT FOR GUARANTEE HAT GAS
GENERATOR: 290ERT, 60 Hz 13,8 kV. 0,9 PF EFF: 14839 CAP: 14765 TT 5127/0111:12:55 AM GE125M 7s9,scp 1,0-5
100 deg 100 deg 50 deg 50 deg Odeg Odeg ChiKer Chiller Sprint Sprint
CASE # 100 102 100 102 100 102 100 104 100 105
AMBIENT
DB,100.100.50,50.100.60.SO.100,
WB,61.4 61.43.43.61.51.43.61.4
10.10.60.60.100.100.10.60.60,10,
AlT 3280 3280 3280 3280 3280 3280 3280 3280 3280 3280
ENGINE INLET
TEMP 100,100,50.50.50,50.50.100.
10.10.60.60.100.100.53.86,60.10.
CONDITIONING NONE NONE NONE NONE NONE NONE CHILL CHill NONE NONE
TONS or kBTU 930 187
, GEN TERM 23234 11639 40574 20300 43812 21918 40370 40570 42364 29695
BtuIKW-hr, LHV 10103 13631 8527 10590 8318 10289 8541 8524 8702 9639
FUEL
MMBtulhr, LHV 234.158.346 215 364.225.344.345.368.286.
Iblhr 12,355 351 210 314 180 11,870 146 18,201 403 15,064
NOZZLE WATER
Iblhr 11490 5B84 18418 8207 17851 7847 18458 17927 19669 14714
100 100 100 100 100 100 100 100 100 100
NOZZLE STEAM
Iblhr
INLET LOSS, inH20
VOLUTE LOSS, inH20
EXHAUST LOSS,inH20 10,10.00 10.10.10.10.00 10.10.10.10.
HP COMP, rpm 10172 9713 10411 9688 10016 9351 10406 10431 10431 10360
LP COMP, rpm 3600 3600 3600 3600 3600 3000 3600 3500 N/A NIt,
COMP DISCH, psia 291 227 391 289 425 313 390 391 397,323.
COMP DISCH 1001 899 1001 873 901 786 1001 1001 996 1002
T48,1926 1753 2000 1773 1904 1675 1999 2003 2040 2003
EXHAUST PARAMETERS 835 774 810 727 721 637 810 813 849 876
Ib/sec 196.161.4 257.203.287.!226.257.256.260.214,
Iblhr 708120 581040 927720 732600 1036440 816840 925560 924480 936360 771480
Cp Btullb-R 2720 2668 2733 2661 2680 2812 2732 2738 2762 2767
EMISSIONS (NOT FOR USE IN ENVIRONMENTAl PERMITS, REF lID 15% 02)
NO.,ppmvd
NO.Iblhr
ppmvd
CO,IbIhr
HC,ppmvd
HC;:,Ib/hr
EXH WGHT % WET (NOT FOR USE IN ENVIRONMENTAl PERMITS)
2390 12507 2309 2473 2407 12556 2315 2286 2278 2324
72.7999 73,4634 72.3434 73.2690 72.9095 73.7485 72.3781 72.2107 72.1786 72.4321
16.1407 17.4321 15,2367 16,9925 15.8074 17.4653 15.2530 15.1735 14,7806 15,2541
CO2 4206 8493 9612 9180 6760 6846 9571 9775 2480 9689
H2O 3962 42016 6.2227 5894 3580 8400 1751 4050 5612 1081
S02 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000
0012 0009 0024 0017 0055 0038 0025 0020 0028 0018
0001 0001 0001 0001 0005 0003 0002 0001 0002 0001
NOx 0023 0019 0026 002 0024 0019 0026 0026 0027 0026
EXH MOLE % DRY (NOT FOR USE IN ENVIRONMENTAl PERMITS)
9588 9541 9622 9557 9603 9542 9621 9623 9640 9622
80.3378 79.9142 80.6422 80,0596 80,4706 79.9258 80,6387 80.6557 80.8031 80,6428
15.5943 16,8018 14,8899 16,2556 15,2744 16,5715 14,8779 14,8379 14.4889 14,8887
CO2 1053 5270 5203 7252 32852 5419 5156 5390 7399 5215
H2O 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000
S02 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000
0012 0009 0024 0017 0055 0;0038 0025 0020 0,0028 0018
0001 0001 0001 0001 0005 0003 0002 0001 0002 0001
NO.0023 0018 0026 002 0024'0018 0026 0026 0027 0026
EXH MOLE % WET (NOT FOR USE IN ENVIRONMEmAl PERMITS)
8775 8908 8685 8889 8794 . 0,8962 8891.8660 0;8851 . 0,8702
73.5290 74.6113 72.7905 74,2915 73.6938 75.0678..72;8453 72.5812 72,5196 72.9305
142726 15,5001 13.4221 15.0844 ,13,9881 15.5643 13.4401 13.3525 13,0018 13.4467
CO2 8421 3593 1776 5288 0066 3874 1758 1847
. ,
3585 1847
H2O 4753 6357 7364 2048 4215 0782 6646 10:0111 10,2514 5836
S02 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000
0012 0009 0024 0017 0056 0038 0025 0020 0028 0018
0002 0002 0003 0002 0009 0006 0003 0002 0003 0002
NOx 0021 0017 0023 0018 0022 0017 0023 0023 0024 0023
~A-LM6000'
"-,
, ,
APPENDIX B
Emissions Calculations - Criteria Pollutants
MOUNTAIN VIEWPOW~R, LLC
Elmore C~u~ty
. , ...' .,...... ~.. . -. '.,~.
APPENDIX B Icontinued)
TABLE 3, CRITERIA POLLUTANT EMISSIONS - TWO TURBINES
Max. Hourly Max, Hourly
Emissions -Emissions -Annual
Natural Gas Fuel Oil Emissions
Pollutant IIb/hrl IIblhrl /tons oer year!
NOx 92,153,f---245L
22.13.4 245,
VOC 13,60.4
PM-20,20,88,
S02 37.4 37,
Notes:Annual emissions of NOx and CO based on applicants requested annual emissions totals.
Average annual emissions estimates forVOCs, PM-, and 502 based on emissions at 50 degrees F,
, ,, ,
cr.'7
'-'.-.. -
Appendix B - LM6000
APPENDIX C .
TAP ANALYSIS" NATURAL GAS COMBUSTION
Annual Facility Hours of Operation = 8,760
24 Hour Annual
(ug/m"3) (ug/m
Max MoC:eled :2 iblhr Impact 3.099 0,054
Max Modeled 1 Iblhr Impact 1,549 0,027
Note: 1 Ib/hr impact represents facility emissions from both generators.
Max Fueling Rate (MMcflhr) 0,779
Calculation: (389,619 scflhr)*(1/1 ,000,000)*2 = 0,779 MMscf/hr
Where: 389.619 sct/hr is the maximum fuel usage tor one turbine
Table 1, Non-carcinoQenic Toxic Air Pollutants
Max, Facility 24 Hour Max,
Annual
CATEF Control Emissions Screening EL Modeled Emissions
Toxic Air Pollutant Efficiency (two AAC (ug/m"3)(two
(lbfMMcf)(percent)generators.(Iblhr)Impact generators "
Iblhr\(ugfm"3)ton"'rl,
Acrolein 93E-50%7EoO2 7EoO2 2E-O2 1.25E+01 2EoO1
Ethvlbenzene 70E-O2 50%2.2E-9E+01 3.441E-O2 175E+04 7E-O2
Fluorene 58E-O4 50%1 .8E-04 33E-O1 SE-Q.4 E+02 8E-:J4
Hexane 82E-50%5E-O1 2E+01 3E-O1 E+03 5E-O1
Naohthalene 88E-50%1E-O3 33E+00 8E-O3 5E+03 3E-O2
Proovlene Oxide 87E-50%3E-2E+00 5E-O2 4E+03 OE-O1
Toluene 68E-50%5E-O2 5E+01 014E-O1 875E+04 9E-O1
Xylene lIotal)26E-50%2.4E-O2 9E+01 779E-O2 2. 175E+04 1E-O1
e 2,arcinooenic Toxic Air Pollutants
Maxo Facility Annual Maxo Annual
CATEF Control Emissions Screening EL Modeled Emissions
Toxic Air Pollutant Efficiency (two AAC (ug/m"3)(two Notes
(lbfMMcf)(percent)generators"(Iblhr)Impact generators -
Iblhrl (ugfm"3)tnn"'.\
Acetaldehvde 11 E-O1 50%0EoO1 OEoO3 3E-O3 5E-O1 7E-O1
Benzene 90E-O2
----
~O~
~__
~9!~0EoO4 OE-O3 I- l:~:!:!.1 .2.'~~1 PAir--Benzo a 8"nthrace.1ET'
- - - -- - "
1.34E-04
----------
50%2E-O5 3E-04
Benzo a lovrene 16E-O5 50%6EoOS OEoO6 6E-O7 OE-04 6E-04 PAH
Benzo b fluoranthene 72E-O5 50%6E-O5 1E-04 PAH
Benzo e IOVrene 33E-O7 50%9E-O7 3E-06 PAH
Benzo k fluoranthene 72E-O5 50%6E-O5 1E-04 PAH
. Chrvsene 50E-04 50%8E-05 6E-04 PAH
Dibenzla,h)anthracene 34E-04 50%2E-O5 3E-04 PAH
IndenoI1.3-cd)ovrene 34E-04 50%2E-O5 3E-04 PAH
Total PAH
------,..--
~O!"!!..~.0EoO6
- -~~.
4E-O2 .2.0
~~~------
1 :3-B"uiaciierie
- - - - - - -- - -
1.33E-04 50%5.2EoOS
- -
- 2.4E;i's'1.4E-06 - - 3.6E:O3 3E-04
FormaldetM:Ie 87E+00 50%7E+OO 1EoO4 2E-O2 7E-O2 2E+O1
T bl
Appendix C - LM6000 Page 1
APPENDIX D
Modeling Review Technical Memorandum
MOUNTAIN VIEW POWER, LLC
Elmore County,
. ." , ,, , '" .
Page 2
were used in the analysis , along with all regulatory defaults, the building downwash, and a limit of 1,600
hours of operation using fuel oil. Ten different operating scenarios were modeled for natural gas and fuel
oil combustion, The maximum impact of the ten scenarios, including background concentrations, was
compared to the NAAQSo
Tables 1 through 6 contain summaries of the modeling results
Table 10 Modelino results with natural gas combustion, Maximum impact
Pollutant Average MHEP Impact Background Total NAAQS CompliantY or N?
Period (~g/m Concentration Concentrationo (~g/m
(IJQ/m (IJQ/m
N02 Annual 100
Annual 18,
S02 24-hour 120 122 365
hour 374 381 300
hour 320 130 163 10,000
, --,--
1 -hour 92.4 11,450 542 40,000
PM,o Annual 32,34.2
24-hour 410 1270 150 ' . Y
1 , nitrogen dioxide2, sulfur dioxide3, carbon monoxide4, particulate matter with a nominal diameter less than 10 micrometers
Table 20 Modelino results with fuel oil combustiono Maximum impact.
Pollutant Ave,MHEP Impact Background Total NAAQS Compliant Y or N?
Period (~g/m Conco
(IJQ/m (lJg/m ClJo/m
N02 Annual . 40 100
Annual 18.19.
S02 24-hour 250 120 146 365
hour 374 470 300
hour 19.130 150 10,000
1 -hour 56,11,450 11 ,507 40,000
;PM1o Annual'32:34.
24-hour 41,1270 150 - Y
,~\";,.--..
1. nitrogen dioxide
20 sulfur dioxide
3, carbon monoxide4, particulate matter with a nominal diameter less than 10 micrometers
Page 4
Table 5. Modeled maximum impact from non-carcinoQenic TAPs (fuel oil)o
TAP . . CATEF Control Max 1-DEQ EL DEQ ACC 24 hour Annual
factor Efficiency Emissions (Ib/hr)(~g/m Maximum Emissions
(lb/MMcf)(percent)(Ib/hr)(except Modeled (ton/yr)
, for lead)impact
(~Q/m
Chromium (total)60E-2E-3E-5E+01 5E-6E-
CoDDer 1.48E-5E-3E-0E+01 3E-8E-
Fluorene 06E-50%7E-33E-1 E+02 1 E-OE-
HCl 61 E-9E-0E-8E+02 7E-9E-
Lead 18E-1 E-6.4E-3E-
tons/year
ManQanese 1.43E-2E-7E-OE+01 3E-5E-
Mercury 14E-9E-OE-5E+00 6E-3E-
Naphthalene 34E-50%5E-3E+00 5E+03 2.4E-2E-
Selenium 13E-2E-3E-OE+01 ' 8,O:::,2E-
Zinc 1.42E-1 E-' 6,7E-OE+02 3E+00 5E-
, , ., ,
. I ..'
..... .. ....,. -.~ ---..-.-"'.-"'
, Page 6
3. CONCLUSION
Table 1 through Table 6 present the results of the modeling analysis for all regulated pollutants and TAPso
The results demonstrated that the increase in PM1O, CO, N02 ,8nd 802 emissions did not calise violations
to the standards. The air dispersion modeling demonstrates compliance with all applicable standards,
The resulting ambient concentrations due to emissions of TAPs are below the ACCor AACC, Therefore
MHEP in Mountain Home , Idaho has demonstrated compliance with all applicable requirementso
Electronic copies of the modeling analysis are saved on CD disk,
G:\Technical Services\Modeling\Dong\permit\PTC\MHEP\memo for MHEP1,doc
~.
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Idaho Department of Environmental Quality
Office of Technical Services
CALCULATION SHEET
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City of Mountain Home www,ci,mountain-home,id.us
160 South 3rd East PO Box 10 Mountain Home, Id 83647 [phone] Fax [phone]
April 24, 2003
Ronald L. Wtlliams
Mountain View Power, Inc,
1015 West Hays Street
Boise, ID 83702
Enclosed is your copy oftbe recorded Conditional Use Pennit and your receipt for tbefina1
payment for the process,
Good luck in your ventureso
---------
~w'
----- -- __
__m-- .. - - -
- -- -.. - - --,- --- - ---- -- --- -.. ,--- -.--
Gary "Tuller
- ,
Development Services ~
: ,
'n
CITY OF MOUNTAIN HOME
CO~~naONAL USE PERNDT
A Conditional Use Permit is hereby granted by the City of Mountain Home, Idaho, for the following
described rea1 property located within the City Limits of Mountain Home, Elmore County, Idaho
more particularly described as foUows, to wit:
ADDRESS:1015 West Hays Street, Boise, ill 83702
I n5t r ument # 345358Elmore County, Idaho09:52am Apr .24.2003For: CI TY OF MOUNT AI N HOMENo. of Pages: 3 Fee: $00GAIL L. BEST , Recorder
De out y: DLE
NAME:Mountain View Power, Inc,
1015 West Hays Street
Boise, ill 83702
LEGAL DESCRIPTION:
A parcel ofland lying in a portion of the NW ~ of the SW ~ofSection 19, T.3S., R ?E., B.
Mountain Home, Elmore County, Idaho, said parcel being more particularly desClibed as follows:
Commencing at the Brass Cap marking the ~ comer common to Section 19 and 20, 1.3S., R ?E.
, Mountain Home, Elmore County, Idaho; thence S08~55'44"W. 2,618.44 feet to an iron pin
marking the Center.~ comer of said Section 19; thence N.89O55'44"E. 565.78 feet; thence
oooO4' 16"E. 35.00 feet to an iron pin marking the Northwest comer ofLat 5, Block 1
Mountain View Industrial Park Subdivision Noo I, records of the Elmore County Recorder
Mountain Home, Idaho, said point being the Point of Beginning;
Thence S.OooO4' 16"Eo 522096 feet to a point of beginning of curve;
Thence along a curve to the left 98.65 feet, said curve having a delta of66OZ9'50", a radius of
85.00 feet, tangents of55.73 feet and along chord of93.21 feet, which bears
31O41'24"W. to a point of tangent;
Thence S.Ot OJ3'31 "E. 188.47 feet to the Southwest comer ofLat 5, Block 2, said
Mountain View Industrial Park. Subdivision No.
Thence S0 88O26'29"W. 500.27 feet to a Meridianal Center Line of said Section 19;
Thence N. 01032'25"W. 803.87 feet along said Meridiana! Center Line;
Thence N.89O55'44"Eo 564.88 feet to the Point of Beginning, said parcel c,oDtaining 88 acres.
Subject To:
Any Right-of-Ways and/or Easements of record or in use.
The City of Mountain Home issues this Conditional Use Permit as requested in~ Conditional Use
Application, a copy of which is attached hereto and by this reference made a part hereof: and on the
basis of the following finding
The above-described property is situated within zoning district:
Mountain Home City Code 9-4-4 requires an Energy Production Facility to obtain a
Conditional Use Permit.
The permitted use will be compatl"ble with the existing City of Mountain H9me Comprehensive Plan
and the zoning district and/or enhance or serve the community it: and only if, the following
regulations are continuously met by the owner, his heirs and assigns, in the use of the ab?ve-described
property:
1, All requirements of the City of Mountain Home Fire, Public Works, Engineering, and
Building/Zoning Departments regarding this type of use shall be satisfied 'prior to
occupancy,
2. Failure to abide by any condition of this Conditional Use Permit shall be grounds for
revocation by the Mountain Home City CounciL
3, An Occupancy Permit will not be issued by the Building Department until all of these
condition(s) have been complied with. In the event a condition(s) cannot be met by the
desired date of occupancy, the Zoning Administrator will determine whether the
condition( s) is bondable or should be completed, and if determined to be bondable, a bond
will be required in the amount of 11 0 % of the value of the condition(s), which are
incomplete.
4. Maintenance: The project permitted by this Conditional Use shall be maintained by the
owner, his heirs and assigns, in perpetuity, as shown on the drawings (of record at City
HalL Mountain Home), Covenants, Conditions, and Regulations as presented and hereby
recorded at the office of the Elmore County Recorder as a part. of this Conditional UsePermit.
. The Energy Production Facility will be limited to a maximum of 180MW of production.
Any aggrieved person( s) may appeal the decision of the Council, as provided for by judicial review
under provisions of Idaho State Code and as per City Code 9-18-6 (B 4), within twenty~ight (28)
days after notice of Council action has been given to the applicant and after all remedies have been
exhausted under this Title,
This permit will not take effect until after the appeal period has lapsed and this document has been
duly recorded at the Elmore County Recorder s Office.
IF THIS CONDmONAL USE PERMIT IS NOT ACTED UPON BY DECEMBER 31, 2004, IT
WILL BECOME NULL AND VOID WITHOUT FURTIIER NOTIFICATION FROM TIllS
DEPARTMENTo (NOTE: Ifsubdivision platting is requir~ no Building Permit will be issued until
the final plat is recordedo
Issued this .l- 'I ti
ay of
y-
Betty M Clerk
City of Mountain Home
The applicant for Conditional Use Pennit has r ad and is in agreement with the conditions placed
herein on the above described property.
~2 ~o3
Date
ACKNOWLEDGMENT
State of Idaho
County of Elmore
On this
~ \ r +
day of
;). (;
0"5 before me, the undersigned, a Notary Public in and for
said state, personally appearedJ . b f.,., 0 0 t.,...known to me to be the person/s whose name
is subscribed to the foregoing instrument, and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and
year in this certificate first above written.
w'1I1 L 1J pUv.-
Notary Public for Idaho
,..-,
Residing at t3.1.
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# OF 11)~~ .
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LEASE
LEASE, made this day of 2003, by and between the CITY OF
MOUNTAIN HOME, IDAHO, a municipal corporation of the County of Elmore, State of Idaho
hereinafter designated as "Owner , and MOUNTAIN VIEW POWER, INc., an Idaho
corporation, hereinafter designated as the "Lessee , WITNESSETH:
WHEREAS, the Owner has established an industrial park in the City of Mountain Home
County of Elmore, State ofIdaho, known and platted as Mountain View Industrial Park Noo 1
that is shown on the copy of the plat that is attached hereto as "Exhibit A", and
WHEREAS , Lessee desires to lease from the Owner real property located in Mountain
Home, County of Elmore, State ofJdaho, that is described in Exhibit B that is attached hereto
and which is referred to herein as the "Demised Premises , and,
WHEREAS; the Mayor and Council of the City '0fMountain Home, Idaho, by Resolution
duly enacted on the day of 2003, have determined that the above-described
real property is not needed for any city purpose and will not be needed for any city purpose in the
future, that the terms of this lease are just and equitable, and have authorized the leasing of said
property to Lessee, NOW, THEREFORE;
IN CONSIDERATION OF the mutual covenants and agreements herein contained and in
consideration of the rent to be paid by the Lessee to the Owner as herein provided, Owner does
hereby lease, let and demise unto the Lessee the real property described herein, to have and to
hold the same unto Lessee, during the term and terms hereof, subject to the following terms and
conditions:
1. DESCRIPTION OF LEASED PREMISESo The Owner leases to Lessee the real
property located in the City of Mountain Home, County of Elmore, State of Idaho, that is
described on "Exhibit B" that is attached hereto and by this reference made a part hereof.
2. TERM OF LEASE. The initial term of this lease shall be for a period of five years,
commencing on the day of , 2003, and ending upon the day of
LEASE - 1
200 , The Lessee shall have the right and option to renew and extend the term of
this lease for nine successive periods of five years each on the same terms and conditions as are
applicable to the initial term. except as otherwise provided hereino To exercise the right to
extend the term of the lease for additional five-year periods, the Lessee shall notify the Owner in
writing sixty days prior to the end of the previous term that it elects to exercise the right of
extension as provided herein, Said notice shall be deemed given when mailed to the City Clerk
of Mountain Home, Idaho, certified or registered mail with postage prepaid or bydeliv:eting in
person said written notice to the City Clerk of Mountain Home, Idaho.
3. RENT, The Lessee shall pay to the Owner, without demand, at the office of the City
Clerk in Mountain Home, Idaho, or such other place as the Owner may from time to time
designate in writing, annual rent during each year of the tenn of this lease in the amount of
0'0,per year, payable in advance on or before the day of
ofthis lease, subject to the adjustments provided for in paragraph 4 hereof.
of each year
40 ADJUSTMENT IN RENT, If the lease is extended and renewed for an additional
five-year period or periods as herein provided, the rent shall be increased or decreased according
to the United States Consumer Price Index for All Urban Consumers as published by the Bureau
of Labor Statistics of the United States Department of Labor 0 The rent for the five-year period
beginning the day of , 200 , shall be increased or decreased by the
percentage of increase or decrease in said Consumer Price Index during the preceding five-year
period, and the rent for each subsequent five-year period shall be increased or decreased in a like
manner.
5. USE AND OCCUP A DON OF DEMISED PREMISESo Lessee is authorized to use
the Demised Premises for a power generation plant and any other lawful use, subject to prior
approval of the Owner. The Lessee has examined and knows the condition of said property and
premises and has leased the same as they now stand and no representations as to the condition or
state of repair thereof have been made by the Owner prior to or atthe time of the execution of
LEASE ~ 2
this lease, The Lessee shall keep up and maintain said premises and any improvements
constructed thereon in good condition and repair, and the Lessee shal1 keep said premises
appurtenances and improvements in a clean and presentable condition during the term of this
lease, The Lessee specifically agrees that it will not use said premises or property for any
unlawful purpose,
6, CONSTRUCTION OF IMPROVEMENTS, As further consideration for this lease
the Lessee shall, within of the commencement of this lease, begin the
construction of a power generation plant, as shown on the site plan and floor plan that are
attached to this lease as "Exhibit C" and by this reference made a part hereof. Constf':lction of
said improvements shall be completed by Lessee within of the date construction
is commenced,
70 TITLE TO IMPROVEMENTSo Title to and ownership of all buildings and other
improvements on the above-described real property, and all machinery, equipment, fumi shings ,
fixtures and personal property located and/or installed on the above-described real property by
the Lessee, shall remain in the Lessee. The Lessee shall have the right, at any time, to remove
buildings, machinery, equipment, furnishings, fixtures and personal property located and/or
instal1ed on the above-described real property, if Lessee is not in default hereunder. Upon any
such removal , Lessee shal1, at its expense, repair any damage caused by such removal and restore
said property to its original conditiono
80 LANDSCAPING OF PREMISES. !tis understood by the parties that the Owner
requires that the building site, parking lot and adjacent property be landscaped according to City
requirements. Lessee shal1landscape the premises in accordance with the Owner s requirements
and the approved site plano
9, RESTRICTION AGAINST LIENS. Lessee shall pay and settle all expenses and
liabilities arising out of or.in any way connected with any and all construction, repairs, alterations
or maintenance of any and all improvements on the Demised Premises, and it shall keep the
LEASE - 3
premises and the improvements thereon free and clear from all liens of mechanics or
materialmen, and all liens of a similar character, arising out of or growing out of the construction
repair. alteration or maintenance of such improvements,
10, RIGHT OF LESSEE TO PURCHASE, If the Owner is legally able to sell the
Demised Premises, other than through a public auction as now required, and the Owner decides
to sell said property during the term of this lease or any extension or renewal thereof, the Lessee
shall have the first option to purchase said property at its then fair market value for cash.
110 REQUIREMENTS OF LAW 0 Lessee shall promptly comply with all statutes
ordinances, rules, orders, regulations, and requirements of the Federal, State and Municipal
governments and of any and all of their departments and bureaus which are applicable to the ~se
by Lessee ofthe Demised Premises during the term of this lease or any extension or renewal
thereof.
120 TAXES 0 Lessee shall pay and discharge when due all State and localtax~s
assessments, levies and other charges, general and special, of whatever name, nature or kind, that
are or may be , during the term of this lease, or any extension or renewal thereof, levied, assessed.
or imposed on the Demised Premises and the improvements placed thereon by Lessee,
13. UTILITIES. Lessee shall pay all charges for water, sewer, electricity, gas, telephone
and other utility services furnished to the Demised Premiseso
140 MAINTENANCE OF PREMISES. The Lessee shall, at its own expense, keep and
maintain the Demised Premises in a good state ofrepairand in a clean and presentable condition
at all times and properly abate any nuisance which may arise or exist on the premises.
150 FREE ACCESS OF CITY. The Owner or any of its agents or employees shall have
the right of free access to the premises at all reasonable times for the purpose of inspecting the
premises to detennine whether or not the Lessee is complying with the provisions of this lease,
160 ASSIGNMENT OR SUBLEASE. Lessee agrees that it will not assign this lease, nor
sublet any portion of the Demised Premises without first obtaining the consent in writing of the
LEASE - 4
Owner, which consent will not be unreasonably withheldo Consentto one assignment shall not
be deemed a waiver of this provision and all later assignments shall likewise be made on~y on
prior written consent of the Owner.
170 NONLJABILITY OF OWNER. The Owner shall not be liable for any damages
occurring to persons or property on the Demised Premises while the Lessee is in occupancy
thereof under terms of this lease, nor for any damages occurring to persons or property by the
failure of the Lessee to keep said premises in repair or for any damages arising from acts of
negligence of any of the employees or agents of the Lessee and the Lessee shall indemnify and
hold the Owner hannless from all such liability.
180 LIABILITY INSURANCEo Lessee shall, during the tenn of this lease and without
expense to Owner, maintain or cause to be maintained in full force and effect, public liability
insurance in one or more insurance companies selected by Lessee which are qualified to do
business in the State of Idaho, with limits of coverage in the aggregate of $1 ,000 000, for
personal injury of not less than $500 000 per person, and $50 000 coverage for damage to
property 0 Lessee shall cause such policy or policies to name or contain an endorsement naming
Owner as an additional insured thereunder. It is agreed that Lessee shall be entitled to provide
the insurance coverage required under this paragraph in whole or in part pursuant to a "blanket"
policy or policies. The Lessee shall provide the Owner with a certificate as evidence that the
insurance policy or policies required herein are in full force and effect at all times.
19, MORTGAGE OF LEASEHOLD ESTATE. Lessee shall have the continuing right
during the term ofthis lease, from time to time, without obtaining Owner s consent or approval
to mortgage, pledge or otherwise encumber this lease, including Lessee s leasehold estate in the
Demised Premises and all right, title and interest of Lessee under this lease. Any such mortgage
pledge or encumbrance is hereinafter referred to as "Leasehold Mortgage , and the holder of such
leasehold mortgage is hereinafter referred to as a "Leasehold Mortgagee , The leasehold
mortgagee or its assigns may enforce such leasehold mortgage and acquire titleto the leasehold
LEASE - 5
estate created under such leasehold mortgage and acquire title to the leasehold estate created
under this lease in any lawful way, Pending foreclosure of a leasehold mortgage, the leasehold
mortgagee may take possession of and rent the Demised Premises,
If Lessee encumbers its leasehold estate created under this lease by a leasehold mortgage
and if the leasehold mortgagee shall notify Owner of the creation thereof, then Owner shall, at
the same time it shall give notice of a breach ofthis lease to Lessee, also give notice thereof to
the leasehold mortgageeo No such notice shal1 be deemed to have been given to Less~e' unless
and until a copy thereof shall have been so given to such leasehold mortgagee. The leasehold
mortgagee shall have the right, but not the obligation, to cure any default ofLessee~der this
lease within the time and in the manner allowed Lessee to cure defaults as setout in this lease,
All payments so made and an things so done and performed by said leasehold mortgagee
as permitted by this se\tion, shall be as effective to prevent a forfeiture ofthe right of Lessee
under this lease as the same would have been if done and performed by Lessee instead of said
leasehold mortgageeo Any such leasehold mortgage so executed by Lessee may be so
conditioned as to provide, as between said leasehold mortgagee and Lessee, that said leasehold
mortgagee , on making good and curing any such default or defaults on the part of Lessee, shan
be thereby subrogated to any and an rights of Lessee under this leaseo No leasehold mortgagee
shall be considered or become liable to Owner as an assignee of this lease, or otherwise, until
such time as said leasehold mortgagee shall by forec1osure or other appropriate proceedings in
the nature thereof, or as a result of any other action or remedy provided for by such leasehold
mortgage, acquire the rights, interest and estate of Lessee under this lease. Upon so acquiring the
rights of the Lessee under this lease, the leasehold mortgagee shall be entitled to all of the rights
and privileges of the Lessee under this lease, and shan be subject to all of the .obligations of
Lessee under this lease,
All notices by Owner to a leasehold mortgagee pursuant to this section or pursuant to any
other provision ofthis lease shall be given by registered or certified mail , return receipt
LEASE - 6
requested, addressed to such leasehold mortgagee at the address last specified to Owner in
writing by such leasehold mortgagee, any such notice shall be deemed to have been given and
served when so mailed,
20, TERMINATION OF LEASE ON CONDEMNATIONo If the whole or substantially
all of the Demised Premises shall be taken by any public authority, under the power of eminent
domain, then this lease shall be terminated as of the date of possession by such authority, and the
rent shall be paid up to the date of such possession. For purposes of this paragraph
substantially all" of the Demised Premises shall be deemed to have been taken ifthe remaining
property cannot be practically used by Lessee or its subtenants, assignees or licensees, for its
stated purposeso In the event of a taking of a whole or substantially all of the Demised Premi~es
Lessee or its subtenants, assignees or licensees as the case may be, sha11 be entitled to all awards
in connection with the taking of the building and impro'Yemen~s erected on the premises by
Lessee or its subtenants, assignees or licensees
, ,
any statutoI)' awards available to lessees
generally and any awards for the unexpired lease term. Owner sha11 be entitled to any award or
awards made in connection with the taking of the value of its fee ownership and any awards
available to lessors or owners generally,
If there is a partial condemnation of the Demised Premises such that Lessee or its
subtenants can continue to use the premises for its intended purpose, Lessee shall be entitled to
an equitable adjustment ofthe rent due hereunder. Absent agreement as to the amount of any
such adjustment, the parties shall refer the matter to a third party arbitrator (under rules
established by the American Arbitration Association for commercial disputes), and the decision
of said arbitrator shall be bindingo In the event of a partial condemnation, Owner shall be entitled
to all condemnation awards unless improvements by the Lessee or its subtenants or assignees to
the premises are located within the condemned area. In such event, Lessee or its subtenants shall
be entitled to receive the value of the improvements taken by such condemnation and Owner
shall receive the balance of the award.
LEASE - 7
210 VALIDITY OF LEASE, If the leasing of the Demised Premises or any portion
thereof, or any part of this lease is held to be invalid by a court oflaw, Lessee shaH make
claim against the Owner for damages of any kind, Should there be a legal challenge to the
validity of this lease , Owner shaH diligently and conscientiously defend the same. If this lease or
any portion thereof is declared invalid by a court of competent jurisdiction, the Owner shaH
cooperate with the Lessee in attempting to mitigate any damages suffered by the Lessee.
220 COMPLIANCE WITH ENVIRONMENTAL LAWS AND INDEMNITY ,OF CITY,
The Lessee shall comply with all health, safety, sanitation and environmental laws, rules and
regulations of appropriate governmental agencies affecting the use and occupancy of
premises for the uses herein specifiedo The Lessee assumes all environmental liabilities caused
by Lessee during the term of this lease arising under the Comprehensive Environmental
Response, Compensation and Liability Act, as amended from time to time, the Resource
Conservation and Recovery Act, as amended from time to time, and the Toxic Substances
Control Act, as amended from time to time, together with any and all similar state and federal
laws and agrees to indemnify and hold the Owner harmless therefor.
23, REMEDIES FOR DEF A UL T. If default be made in the payment of the rent hereby
reserved or any part thereof, or in the performance of any of the other terms and conditions
hereof, then the Owner shall first give the Lessee sixty days' notice in writing specifying wherein
. the Lessee has failed to comply with this lease and which said notice may be delivered'to the
Lessee personaHy or sent to it by registered or certified mail , addressed to it as hereinafter
providedo If sent by mail, said notice shall be deemed served upon the Lessee upon the date it is
deposited in the Untied States mails with postage prepaid, certified or registered and addressed as
above mentionedo If the Lessee fails to correct such default within said sixty-day period, then the
Owner may without further notice declare this lease terminated and may reenter and retake
possession of the Demised Premises, with or without process of law, and may remove the Lessee
from said premises, and the Lessee agrees that in case of such default it will immediately deliver
LEASE - 8
up peaceable possession of the Demised Premises to the Owner upon demand, or the Owner ll1ay
exercise any other remedy it may have either at law or in equity. The Lessee agrees that in case
of its default i1'1 complying with the terms hereof, and at the time of surrendering possession of
said premises, it will pay to the Owner any damages sustained by the Owner as a result of its
failure to comply with the terms hereof.
24, ATTORNEY'S FEES, In the event it becomes necessary for either party to place this
lease in the hands of an attorney for enforcement of their rights hereunder after default of the
other party or to institute legal proceedings for enforcement of their rights hereunder, then the
defaulting party agrees in such case to pay a reasonable attorney s fees incurred by the non-
defaulting party, in addition to other damages allowed by"law.
25. NOTICES, Any notice or other communicatiori, under the terms onhis lease by one
party to the other shall be sufficiently given if personallx'"delivered or if deposited by registered
or certified mail , postage prepaid, return receipt, request~d, ~nd addressed as follows:
(a) To Lessee:
Mountain View Power, Inco
1015 West Hays
Boise, Idaho 83702
(b) To Owner:
City Clerk
Post Office Box 10
Mountain Home, Idaho 83647
260 SURRENDER OF PREMISES AND HOLDING OVER. Lessee shall , on or before
the last day of the term of this lease, or any extension or renewal thereof, peacefully and quietly
leave, surrender and yield up unto Owner the Demised Premises. The failure of the Lessee to
surrender the Demised Premises as provided herein and the subsequent holding over by Lessee
with or without the consent of the Owner, shall result in the creation of a tenancy from month to
month at a monthly rental of one-twelfth of the annual rent then being paid, payable monthly in
LEASE - 9
advance during the month-to-month tenancy, This provision does not give the Lessee any'right
to hold over at the expiration of any term, Any other terms and conditions of this lease .shall
remain in full force and effect during any month-to-month tenancy hereunder.
270 NOW AIVERS, Time is of the essence ofthis lease and the payment of the rent
hereby reserved and of every term, covenant and condition herein contained. Any extensions or
indulgences granted by the Owner in the performance of any term hereof shall not be construed
as a waiver of the Owner s right to insist upon prompt and strict performance thereaftero .
waivers or modifications of this lease shall be binding unless made in writing and subscribed by
the parties heretoo
28. COVENANT. The Owner l1ereby covenants that the Lessee performing the terms
and conditions hereof shall peacefully and quietly have, hold and enjoy the said leased premises
and property during the term hereof.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year in
this agreement first above written.
CITY OF MOUNTAIN HOME, IDAHO,
a municipal corporation
D, Jett, Mayor
ATTEST:
Betty Manning, City Clerk
OWNER
MOUNTAIN VIEW POWER, INC.
an Idaho corporation
, President
LESSEE.
LEASE - 10
STATE OF IDAHO,
COUNTY OF ELMORE
) ss,
On this day of ,2003 , before me, the undersigned, a Notary Public in
and for said State, personally appeared Dave Jett and Betty MaIming, known to me to be the
Mayor and City Clerk, respectively, of the City of Mountain Home, Idaho, a municipal corpo-
ration that executed the foregoing instrument or the persons who executed the instrument on
behalf of said municipal corporation , and acknowledged to me that said municipal corporation
executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
day and year in this certificate first above written,
Notary Public for Idaho
Residing at 'Mountain Home, ID
My commission expires:
STATE OF IDAHO
, ,
COUNTY OF
. )
sSo
On this day of ,2003 , before me, the undersigned, a Notary Public"rin
and for said State, personally appeared , known to me to be the
President of Mountain View Power, lnco, an Idaho corporation, that executed the foregoing
instrument or the person who executed the instrument on behalf of said corporation, and ac-
knowledged to me that said corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal , the
day and year in this certificate first above written.
Notary Public for Idaho
Residing at:
My commission expires:
LEASE -
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Economic Development OfficeCity of Mountain Home150S3E
Mountain Home, ID 83647
Mountain View Power
A TTN: Robert Looper
1015 Hays Street
Boise, ill 83702
August 22, 2003 RE: City Water
Dear Mro Looper
The City of Mountain Home has granted Mountain View Power a Conditional Use
Permit to construct a gas fired power plant in the City Limits. The City agreed to provide
up to 250 gallons of water per minute to the facilityo
As with any customer within the City of Mountain Home, the water is provided "
available" 0 Public safety, emergencies and other scenarios could preclude the City from
making the water available at a particular time. In other words, there are no guarantees
but City water is certainly a very reliable source of water,
CWTently, the City has permits for up to nine ,million gallons of water per dayo The peak,
average consumption varies a great deal, Summer months see consumption at 6 million
gallons per day and the winter is only about 205 million gallons per day.
I hope this information is helpful to you. Contact me if I can assist with anything,
Sin ely
/(.~
Ron Swearingen,
Director
Cc:Mayor Jett
Phone: [phone] Fax: (208) 58?:-2175 Email: eeiscfDmindspring.com
CITY OF MOU~_TA8N HOME
,--,-----,---
160 SOUTH 3~ EAST PO BOX 10 MOUNTAIN HOME. ID 83647 (208) 587-21 ::i'AJt [phone]
Mountain View Power
ATTN: Bob Looper and Ron Williams
1015 Hays Street
Boise, ill 83702
April 15, 2003
Dear Bob and Ron,
I am happy to let you know that the City Council unanimously approved the amendment
to your Conditional Use Permit at our meeting last night. The discussion was brief and
the motion to increase your capacity to 180MW was approved, as you requested. In
addition, we extended the term of your permit through December 2004, providing you
with the time frame required to be responsive to the current RFP
The City of Mountain Home has been working with you for over three years in an
attempt to get a power generation facility constructed ,here. Although unproductive to
date, our community stands in support of your projecto Our action last night is but
another testament. of our desire to seeMVP succeedo
As we discussed during our meeting in March, the Citywill pursue Tax Increment
Financing on the qualifying portions of your in&astructure. We will begin the process as
soon as your RFP bid has been approved. This financing tool carries its share of
stipulations and red tapeo Justthe same, I will support efforts to establishthe,required
Urban Renewal District and the other related activitieso Of course, I cannot speak for the
. members of the City Council. or County Commissi oners but I will work to get the job
done expeditiously, .
We, support your project because it will provide long-term benefits to the property tax
base of our City, provide lease revenue from the industrial park land and will help insure
a long term source of.power in the regioIL
. . - - -; - .- ! ! - - -
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Good luck :on your,cutTent submittalo ~eep ,us; informed, as to ~~e pr(!)gress. 'I reinain '
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www. ci .mountain-home. ide us
CITY OF MOUNT AIH HOME
"'--"'-----
160 SOUTH 3RD EAST PO' BOX 10 MOu'"NTAIN HOME. ID 83647 (208) S87-210 zAJC . [phone]
Mountain View Power, Inc,
Bob Looper and Ron Williams
1015 West Hays Street
Mountain Home, ill 83647
August 29 2002
Dear Bob and Ron,
Thank you for staying in touch with me and our Economic Development Office as to
your progress on the proposed power plant here in Mountain Home. The City is still very
supportive of your plans and we look forward to an excellent, long term relationshipo
As we discussed, the City of Mountain Home is committed to providing you with 250
gallons of water per minute for your facility 0 Your plant discharge into our sewer system
is no problem, Furthermore, we will work with Mountain View Power to provide
additional water and sewer service in the future, if needed,
My office and the City s Economic Development Office are available to lend assistance
whenever needed, We look forward to hearing from you soono As always, feel free to
pass this information along,
Very truly yours
Dave Jett
Mayor
DJ/rs
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OCI 11 201211 9: 57 AM FR 5T OF I D D I S1 3 OFF I C34 8917 TO 91312137219298
APPLICATION AND PERMIT TO USE RIGH1-0~-v\JA '(
UTILITIES
132
(Wi)
(TO-,"0 ,'-96 w
27-' 52S00.2
\'d
(3)
. OJECT NO.
Mi... Mulll~ Eherq"y rro~Route Hi gh,.7;:1 Y 20
See atached m~p 020' frm intpn:;proHon I ij4
Station To Station Distance from Nearest Town OR Jet,
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Yl \'0
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SBQ NO.
MPTO MPCl
- &
PERMIT No.-0;)-) rS~
REG NO
#0 0Z-
Inspection Fee Required
0 Performance Bond Required $
Type Access Control
Board Minute Entry Date
Underground Pipeli
(O"erhead.(Gndergroun
Distance From:Centerline Ft.Right.of-Way:Ft-
Angle of Cl"ossing
~ - -- . - .
entt.il e C\', kv)
Pressure
. ~ize of Pipe: 12 "
Depth 48" to m:own M.thod DfI""t.n.tion
~ -
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(J acklJ3 0 relCut)
A PLA."ir OF PROPOSED WORK MTD APPLICABl..
'::-
:i.AFFIC CONTROL ?LA.NS MUST BL ATTACHED
Vertical Clearance-
In.
200 PSI
Spe~U11 Prgvision,;;See Attached Description and Map
We have not hired a turnkey contractor ' and, therefore have not prepared our
:raffic control plan. However, we understand the traffic control plan must
be submitted and approved prior to construction.
, ,. ,
Y\ 0 ~ e..YL
. -
I ceI"t11Y that I am the Authorized Utility Company represen tative ~d :req~st permisSl , to c:.on$tru.ct the above facilities within
the State Highways Right of Way in accO1dancewith the general provisions printedon the re~ene side of this form. the Specia1
Provisions and the Plans made a part of this permit. This permit shall be void; unless work is completed before 1;1 ;+00 ~
Company and Address
Power Development Associates
1015 West Hays
Robert Looper (?n~.~~1 1R98
PHONE
. ts, pennission i$ hereby granted tc
Boise, ID 83702CITY STATE ZIP
S' 48 -HOURS 'NOTICE-REQUirED
. -t) PRIOR TO COMMENCEMENT OF WORK.
NOTIFY REGION MAINT. FOREMANL CLAUDIUS BARNES ., [phone]
. I
is ACCo'IP """'01)
BY """101FT (1)11,
"'"
1/ -$-Dati"R ,-
'I1 BEFORE ANY WORK CAN COMMENCra
DIG LINE MUST BE CALLED
1-800-342-1585
IN ACCORDANCE WITH IDAHO CODE 55-2207
- --. --
Description of the Proposed Utilities
The pipeline and transmission line are proposed to utilize the IDOT ROW on the west
side of Highway 200 The following describes the details of the gas and transmission line:
Gas Line:
.:.
The pipeline will start from a point on Highway 20 outside the Mt. Home
Industrial Park which is located approximately 3 020' from the intersection of
Interstate 84 and Highway 200 The pipeline will be built within the westel11
shoulder of the Highway 20 ROWJor a distance of944' from the City of
Mountain Home industrial park boundary to an interconnection point with anexisting pipeline,
.:.
12" natural gas pipeline interconnecting with the existing Northwest Pipeline for
a distance of944'
.:.
Request to build approximately 5' off the shoulder , so there is no disturbance topavement
.:.
Pressure is 1 200 PSI
.:.
Depth of 48" to crown
.:.
Method of installation-cut
Transmission Line:
.:.
The transmission line will start from a point on Highway 20 outside the Mt.
Home Industrial Park which is located approximately 3 020' from the
intersection of Interstate 84 and Highway 20. The transni~ssion line wi~ilt
within the western shoulder of the Highway 20 ROW fora distance
from the City of Mountain Home industrial park boundary to an interconnection
point with an existing transmission.
.:.
138kV transmission line
.:.
Single wood pole construction
.:.
Verticalc1earancefrom the ground of23' .
.:.
Poles will be spaced approximately 300'apart
.:.
The transmission linewill cross at the same angle and within the same ROW as
the existing transmission line to interconnect into an existing substation
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-- P..B.d.POSED TRANSMISSION AND "
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AI- TERNATE GAS PIPELINE 1 (WIT~N ROAD ROW)
...p -:\;, !. -...! ., ~.
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PROPOSED PowEifpLANT'siTf"'--
IAPPROXIMAlELY 8 ACRES)
-,=,="",
Cl)NORTH
750
Scale (ft)
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POWER DEVELOPMENT ASSOCIATES, LL
MT. HOME POWER PLANT PROJECT
1500
FIGURE
FACIUTY MAP
~1E: 111-1501
SCAlE: M
AoaoCAD
-... ....
DRAWN BY: AI2
Traffic Control - During the construction operation, warning
signs conforming with the current Manual on Uniform Traffic
Control Devices shall be in place at all times. The Idaho
Transportation Department reserves the right to require
addi tional signing if deemed necessary for the protection of the
travelling public.
All construction signs barricades, barrels, cones or other
devices used during hours of darkness shall meet the reflective
requirements of Class B reflective sheeting.
Traffic in each direction of travel shall be restricted to not
less than one lane. If this cannot be accomplished, a minimum of
two certified flaggers shall be on duty to control traffic forthe safety of the travelling public and work crews. Fl aggers
shall be properly trained and equipped with flagging paddle and
safety vest so they are readily visible. If flaggers are
required to work during hours of darkness, they shall wear
reflective safety clothing and the flagging station shall beilluminated with portable area lighting.
MISCELLANEOUS
Prior to beginning construction, sufficient labor, material and
equipment shall be at the job site to expediently complete the
proj ect. The District Traffic Engineer (208-334-8340) shall be
notified at least 48 hours in advance of starting work wi thin the
Highway Right-of-Way.
Plantmix patching shall be completed wi thin 24 hours after
completing, base course compaction.
Trenches."shall,not be left open overnight unless proper traffic
control and safety devices are in place.
All testing and construction inspection shall be performed by a
certified, commercial inspection laboratory at the expense of thecontractor. Copies of laboratory and compaction test results
shall be submitted to the District Traffic Engineer uponcompletion of the proj ect.
The Permittee shall be responsible for any damages to the roadway
and its appurtenances. The Permittee shall also be responsible
for any defect in the roadway repair at the trench location for a
period of two years. Maximum allowable settlement shall be 1/4
inch as measured with a 10 foot straight edge.
SP - Pipe Jacking Page 3 Rev. 08/05/94
SPECIAL PROVISION - PIPE JACKING
DESCRIPTION: This i tem shall consist of furnishing and
installing steel casing, at locations within the highwayright-of-way, by any combination of the following methods:
jacking or driving; rotary or auger drilling.
MATERIALS
Materials shall meet the following requirements:
Steel Casing................... .ASTM A-252
Fine Aggregate for Concrete.... .ITD 703.
Portland Cement.. . . . . . . . . . . . . . . . ITD 701.
Water for Concrete..............ITD 711.
Air Entraining ~xture. . . . . . . . ITD ~709. 02
Water Reducing ~xture.
. . . . . . '
. ITD 709.
Aluminum Powder, Class B... ..~ ..Fed,~ Spec. TT-D-320
Grout -Grout material ,shall be a 'combination of cement, water
and appropriate additives; or sand, cement, water and appropriate,additives. The grout mix design shall be submitted to the
engineer for approval prior to use.
CONS TRUCTI ON REQUIREMENTS
Installation ~' Steel casing shall be installed in a manner which
precludes interference with highway safety or damage to the
roadway by subsequent subsidence. Prior to installation, the
contractor shall submit an outline of his construction procedures
to the engineer for approval.' These procedures shall include the
following:
1. Plan view and elevation showing dimensions of the
operating pit; shoring, bracing, struts, whalers, or sheet
piles used to support the excavation; size and type of outer
casing.
2. The proposed method of installing the steel casing; the
jack or driving system; a detail of the separator-cushion at
the end of the steel casing against which the jacking ordriving force will be applied; the support for the jack or
Page 1 Rev. 08/05/94
SPECIAL PROVISION - TRENCHING
DESCRIPTION:This item shall consist of excavating a utility
trench within the roadway prism; installing pipe, conduit, cable
or other utility conveyance; backfilling and compacting the
excavated area; then restoring the pavement surface and other
disturbed areas to their original condition , in close conformity
to the attached illustration.
MATERIALS
The following materials shall be obtained from contractorfurnished sources or as otherwise approved. Materials shall meet
the requirements of all applicable sections of the Idaho
Transportation Department Standard Specifications for HighwayConstruction, latest edition. In addition, materials shall meet
the following requirements:
Aggregate Backfill - Aggregate for backfill shall consist 'of sand
and gravel or sand and rock mixtures. Material selected shall
have a sand equivalent greater than 30 (subsection 205.06) .
Lean Concrete Backfill - Lean concrete backfill shall be used in
lieu of aggregate backfill when crossing the travelway and
working in the roadway prism. The mix shall be made up of thefollowing proportions of materials:
Coarse aggregate
Sand
Portland cement
Water
( 3/8" minus
maximum of
600
800
lbs.lbs.lbs.gallons
Water content is maximum and may be reduced downward. Care
shall be taken to assure that excess water is not present in the
mixing drum prior to charging the mixer with materials. Thorough
mixing will be required prior to discharge.
No compaction, vibration or finishing is required. The lean
concrete shal'be struck off at or below the elevation of theplantmixsurfacing with a square - nose shovel or similar handtool. The backfill mix shall be allowed to set for a minimtim of
2 hours before the permanent plantmix surfacing is placed to
complete the trench repair. Temporary placement of asphalt cold
mix
..
surfacing may be necessary to accommodate traffic within the
first 2 hours of backfill placement prior to completing thepermanent repair.
Aggregate Base - Aggregate for base (subsection 703.04) shall
conform to one of the following gradations:
SP - Trenching Page 1 Rev. 09/24/97
Hveem Stability...
. . . . . . . . . . . . . .
30 minimumAsphalt Film Thickness.
. . . . . . . . .
6 microns minimum
Voids in the Mineral Aggregate. .13 percent minimum
Air Voids in Compacted Mix. . . . . .3 - 5 percent
Immersion Compression.......
. . . .
85 percent minimum.
Asphalt - AC graded asphalt cement (Section 702) shall be used
for plant mix pavement unless otherwise approved. The grade of
asphalt and asphalt content shall be approved by the District
Materials Engineer after the contractor furnished source isselected.
Antistrip - Antistrip concentrate additive (subsection 702.04)
shall be used in plant mix pavement as approved. The antistrip
content shall be approved by the District Materials Engineer
after the contractor furnished source is selected.
Tack Coat - SS-l dilute emulsified asphalt (Section 40l) shall be
used for tack coat unless otherwise approved and shall be ' applied
at a rate of 0.05 gaL/s.
y.
(residual) to all cold joints.
CONSTRUCTION REQUIREMENTS
Excavation (Section 205) - Material shall be removed ,from the
utility trench as shown in the attached illustration. Excess
material and material not suitable for use as backfill shall be
removed from the job site and disposed of in an approved disposal
area provided by the contractor or utility company. Excavated
material meeting the quality requirements for backfill may be
used for that purpose.
Aggregate Backfill - Aggregate backfill (Section 205) shall be
uniformly distributed in layers not to exceed 8 inches loose
thickness and compacted prior to placing successive layers.
,,-
Aggregate backfill shall be compacted to the following standards:
For material with a maximum dry density of l20 pounds per cubic
foot or less, 95 percent of standard density; foi material with a
maximum dry .density greater than 120 pounds per .cUbic foot,100
percent of standard density. Backfill placed more than l2 inches
below subgrade shall be compacted to 95 percent of standarddensity.
Lean Concrete Backfill - Lean concrete backfill shall be placed
in the trench so as to avoid"segregation of the mixture.
Vibrating the mixture during placement, application of curing
compound and special curing methods are not required.
At the contractors option, the trench may be temporarily
filled with lean concrete.backfill to the level of the adjacent
SP - Trenching " Page 3 Rev. 09/24./97
area Maintenance Foreman shall be notified at least 48 hours in
advance of starting work within the Highway Right-of-Way.
Plant mix patching shall be completed within 24 hours after
completing base course compaction.
Trenches shall not be left open overnight unless proper traffic
control and safety devices are in place.
All testing and construction inspection shall be performed by a
certified, commercial inspection laboratory at the expense of thecontractor. Copies of laboratory and compaction test results
shall be submitted to the District Three Traffic Engineer upon
completion of the project.
The Permittee shall be responsible for any damages to ' the roadway
and its appurtenances. The Permittee shall also be responsible
for any defect in the roadway repair at the trench location for a
period of two years. Maximum allowable settlement shall be 1/4
inch as measured with a 10 foot straight edge.
DOCUMENT=TRAFFIC-C: \DTE\SPECPROV\rRENCH ~NEW
,--
SP - Trenching Page 5 Rev. 09/24/97
SUBJECT: Markers for Utility lines
Because of problems in the past from Telephone Companies
billing the State for telephone cable breaks caused by
maintenance operations, all future permits for all utilities shall
have a special provision item requiring markers at each Right of
Way line for all crossings, and at 500' to 1000' intervals for
utilities buried along the shoulder. Closer spacing should be
used in urban areas.
A plastic ribbon is required also in addition to the markers.
should be installed at least one foot above the utility being
marked. The plastic ribbon is not required on crossings where
, the utility line is jacked under the roadway.
SPECIAL PROVISIONS-TRAFFIC CONTROL
The permittee (if ather than the cantractar daing the wark) shall pravide the
cantractar a capy af this permit, camplete with special pravisians and trafficcantral requirements.
The cantractar shall keep a capy af this permit, camplete with special
pravisians and traffic cantrol requirements, at the wark site at all times when
wark is in progress.
Any wark invalving lane clasures ar lane restrictians is nat pennitted
between 6:30 AM and 8:30 AM , nar between 4:00 PM and 6:00 PM an
cammuter routes.
All utility crossings afthe state highway shall be bared whenever passible.
Special approval is ~equired for trenching.
. .
The minimum allowable traffic cantrol signing is attached. However, this is '
intended anly as a guide and daes nat relieve the permittee, utilitycampany,
ar cantractor bfthe responsibility af supplying and implementing the use of
, proper traffic cantral plans and devices for specific field canditians. Traffic
cantral plans and devices shall camply with the requirements af the Manual
,,'
an Unifarm Traffic Cantral Devices, latest editian. Traffic cantral plans
shall be prepared by a Licensed Engineer recagnized by the State af IdahO'.
All traffic contral devices, i.e. (drums, canes, tubular markers, barricades
etc.) Shall be required to' have class "B" reflective sheeting ar battery
aperated flashing warning lights.
Minimum required specificatians are to' meet ar exceed Sectian VI afthe
Manual afUnifarm Traffic Cantral Devices, latest editian.
Appraval to' wark within the State Highway Right af Way daes nat relieve
the permit holder fram abtaining cansent fram ar natifying private praperty
awners ar City and Caunty agencies in the area affected by their wark.
All flagging persannel shall have a current State af IdahO' flagging
certificatian.
, ----
W21-4B (SPECIAL)
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"1-,
FORM 2800-
'August 1985)
Issuing Office
Lower Snake River District Office
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
RIGHT-OF-WAY GRANT
SERIAL NUMBER 101-33890
A right-of-way is hereby granted pursuant to Title V of the Federal Land Policy and
Management Act of October 21, 1976 (90 Stat. 2776; 43 U.C. 1761).
Nature of Interest:
By this instrument, the holder:
Power Development Assoc., LLC
1015 West Hays
Boise 10 83702
receives a right to construct, operate, maintain, arid terminate a 138,kV transmission
line and a 12" natural gas pipeline , on public la~ds described as .follows:
' .
Boise Meridian, Idaho
T. 3 S., R. 7 E., section 19: EY2SEY4NEY4,
section 20: SY2NWY4NWY4, NY2SWY4NWY4,
(as shown on the attached Exhibit A)
The right-of-way or permit area granted herein is 10 and 20 feet wide, 244
and 990 feet long, respectively, and contains acres, more or less.
This instrument shall terminate on , or years from its effective date
unless, prior thereto, it is relinquished, abandoned, terminated, or modified pursuant to
the terms and conditions of this instrument or of any applicable Federal law or
regulation.
At the discretion of the authorized officer this instrument may be renewed. If renewed
the right-of-way or permit shall be subject to the regulations existing at the time of
renewal and any other terms and conditions that the authorized officer deems
necessary to protect the public interest.
Notwithstanding the expiration of this instrument or any renewal thereof, early
relinquishment, abandonment, or termination, the provisions of this instrument, to the
extent applicable, shall continue in effect and shall be binding on the holder, its
successors, or assigns, until they have fully satisfied the obligations and/or liabilities
accruing herein before or on account of the expiration , or prior termination , of the grant.
'l.Rental:
For and in consideration of the rights granted, the holder agrees to pay the Bureau of
land Managementtair market value rental as determined by the authorized officer
unless specifically exempted from such payment by regulation. Provided, however, that
the rental may be adjusted by the authorized officer, whenever necessary, to reflect
changes in the fair market rental value as determined by the application of sound
business management principles, and so far as practicable and feasible, in accordance
with comparable commercial practices.
Terms and Conditions:
'd.
This grant or permit is issued subject to the holder's compliance with all applicable
regulations contained in Title 43 Code of Federal Regulations part 2800.
Upon grant termination by the authorized officer, all improvements shall be removed
from the public lands within 182 days, or otherwise disposed of as provided in
paragraph (4 )(d) or as directed by the authorized officer.
Each grant issued for a term of 20 years or more shall , at a minimum, be reviewed by
the authorized officer at the end of the 20th year and at regular intervals thereafter not
to exceed 10 years. Provided, however, that a right-of-way or permit granted herein
may be reviewed at any time deemed necessary by the authorized officer.
The stipulations, plans, maps, or designs set forth in ~t(s) A andj3. dated
June 10.2003 attached hereto, are incorporated into and made a part ofthis grant
instrument as fully and effectively as if they were set forth herein in their entirety.
Failure of the holder to comply with applicable law or any provision ofthisright-of-way
grant or permit shall constitute grounds for suspension or termination thereof.
The holder shall perform all operations in a good and workmanlike manner so as to
ensure protection of the environment and the health and safety of the public.
IN WITNESS WHEREOF, The undersigned agrees to the terms and conditions of this right-of-waygrant. ,
/i,Four Rive rs Field ManaQer
(Ti
;6-
(Date)(Effective Date of Grant)
LEGEND 101-33890
Right-of-Way Map
Subject 138 kv transmission line
t-t t-f 1---1 Subject 1 2" gas pipeline
Public Lands
'i,c;-Power plant location (Pvt Lands)
. Main county roads
--d!Y'""Water areas
Map Not To Scale
, n IN ')nm
SPECIAL STIPULATIONS
Power Development Associated, Inc.
Natural Gas Power Project Right-of- Way
Right-of-Way IDI-33890
EXHIBIT B
IDI-33890
Page I of 4
JUN I 0 2003
1. The Holder s use herein is subject to all valid existing rights and shall notexcuse the
Holder from obtaining any ad~itional approvals lawfully required by other Federal, state and
local agencies.
2. There is reserved to the Secretary of Interior, or his lawful delegate, the right or grant
additional easements or use for compatible uses on, over, under or adjacent to the land involved
in this right-of-way. A non-exclusive use is being authorized with this grant.
3. The Holder shall conduct all construction, operation and use activities in a manner that
will avoid or minimize degradation of air, land and water quality, Toxic or hazardous materials
shall not be released polluting either air, land or water resources in violation of any
' ,
environmental laws, rules or regulations. All construction work and subsequent use shall be
consistent with applicable Federal, state and local laws and regulations relating to safety, water
quality, and public health. "
4. The Holder shall rehabilitate all disturbed areas as a result of his disturbance on this
project by first smoothing to the original contour then seeding a seed mixture required by the
authorized officer. The seed mixture required for all rehabilitation work on this project shall be
harrowed after seeding which will consist of crested wheatgrass (5 lbs/ac.) and Siberian
wheatgrass (3 Ibs/ac.). This rehabilitation and seeding should be completed from October I to
no later than November 30th in the year activities occur. All rehabilitation shall be completed to
the satisfaction of the authorized officer and successive plantings may be required if it is
determined the rehabilitation was not successful. If the seeding is unsuccessful, additional
plantings will be required until, in the judgement of the authorized officer, the planting has been
established.
5. The Holder shall not use heavy equipment for construction or maintenance purposes
during times of excessive precipitation, nor during spring thaw. Heavy equipment will be used
only when soil is firm enough to support the equipment without leaving ruts of a depth of not to
exceed 4 inches.
6. All construction, maintenance, or use activities shall be confined to the minimum area
necessary and shall not exceed the right-of-way area granted herein. The exterior boundaries of
the right-of-way shall be clearly flagged prior to any surface disturbing activity when
construction occurs.
EXHIBIT .
IDI-33890
Page 2 of 4
JUN 1.20037. Holder shall protect all survey monuments, witness corners, and reference monument$
within this right-of-way, against disturbance during constructio~ operation, maintenance, and
rehabilitation. If any monuments, corners or accessories are destroyed, obliterated or damaged
during construction, operation or maintenance the Holder shall secure the services of a
Registered Land Surveyor to restore the disturbed monuments comers or accessories at the same
location, using surveying procedures found in the manual of Surveying Instructionsfor the
Survey of the Public Lands of the United States, latest edition. The Holder shall record such
survey in the appropriate county and shall send a copy to the Bureau of Land Management,
authorized officer.
8. The Holder shall provide the authorized officer a copy of utility (power line and gas
pipeline) construction survey maps as they cross public land, prior to work start~up. This survey
map shall indicate the centerline of each facility and tied to the public land survey grid showing
each 40 acre parcel of public land crossed and the boundary between public and private lands.
The map shall show the Township and Range, Section together with a north arrow placed on
each page submitted.
9. The total width of this right-of-way shall be 30' total measured beginning no .closer than
10' off the shoulder of the road. This equates to 20' for the pipeline and 10' for the powerline.
construction map as delineated in Item 8 above shall be submitted to the authorized officer for
approval prior to construction.
10. The Holder shall adhere to the State ofIdaho Dig-line Laws which require an applicant or
his contractor to call [phone] a minimum of 48 hours prior to any digging work being
done.
11. The Holder shall meet and maintain all requirements of Chevron Pipe Line Company
together with Federal Department of Transportation regulations for utility constructed around.
petroleum pipeline rights-of-way.
12. The Holder shall contact Chevron Pipe Line Company and present to them construction
plans so Chevron Pipe Line Company can aid in the planning and construction process prior to
the Holder entering the public land to perform any ground turning work. This notification must
be to JoeN. Watts, Boise Area Team Leader. He may be reached at [phone]. Also, a
Chevron Pipe Line Company representative must be on-the-job while work is being done on or
near Chevron Pipe Line Company s right-of-way.
13. The Holder shall contact Northwest Pipeline (a Williams Company) for an encroachment
permit where the project will interface their pipeline system. Someone from Northwest Pipeline
must be on-site while work is being done within their right-of-way.
14. All buried lines crossing Chevron Pipe Line Company sright-of-way must cross at an
angle of 450 or more. Equipment must cross pipelines only at approved crossing locations where
the cover has been checked and determined adequate to meet bearing load requirements.
EXHIBIT B
IDI-33890
Page 3 of 4
JUN I 0 200315. Above ground power lines may not be above or closer than 30' horizontally to any es~ape
vent, Le., relief valve, or station blow down vent. A minimum 30' vertical distance shall be
maintained across the entire pipeline right-of-way.
16.
way.
No poles or appurtenances shall be located within ChevronPipe Line Company s right-of-
17. The Holder agrees to defend, indemnify, and hold harmless the United States against any
liability arising from any activity within the right-of-way, including but not limited to the release
of hazardous substances or hazardous waste. This agreement applies without regard to whether
an action or release is caused by the Holder, its agent(s), or unrelated third parties
18. All waste caused by the Holder, his agents, or assigns shall be promptly removed ,and
disposed of in an authorized disposal area. The term "waste" as used herein means all discarded
matter including, but not limited to, human ,waste, trash, garbage, refuse, petroleum products
ashes, rocks, vegetation, vehicles and equipment. Failure to comply with this requirement may be
cause for trespass action to ensue to rectify and corrects such indiscretions.
19. The Holder shall do everything reasonably within its power and shall require its
employees, agents, assignees, and contractors to do everything reasonable within their power
both independently and upon request of the authorized officer to prevent and suppress fires on or
near the lands to be occupied or on other nearby public lands that is adjacent to lands currently
owned by the Holder.
20. The use of explosives is strictly prohibited, unless all safeguards and permits have been
acquired for such use by the authorized officer. If the use of explosives are necessary and
authorized, their use shall be such that will prevent damage to adjacent landscape features and
property and will prevent the scattering of rocks and other debris outside the road prism. All
such work shall be done by licensed professionals, approved by the authorized officer, that have
experience in such work and that complies with permit requirements. The Holder may obtaIn
such approvals by contacting the Four Rivers Field Manager at [phone].
21. If it is deemed necessary by State of Idaho and Elmore County highway officials that road
guards and flag men are necessary to protect the traveling public while construction is ongoing,
the Holder, his agents, or contractors shall adhere to and abide by the requirements set out by
these officials for such purposes.
22. Any cultural and/or paleontological resource (fossil(s) or historic or prehistoric site or
object) discovered by the Holder, or any person working on his behalf, on public or Federal land
shall be immediately reported to the authorized officer. Holder shall suspend all operations in
the immediate area of such discovery until written authorization to proceed is issued by the
authorized officer. An evaluation of the discovery will be made by the authorized officer to
determine appropriate values. The Holder will be responsible for the cost of evaluation and any
decision as to proper mitigation measures will be made by the authorized officer after consulting
with the Holder.
EXHIBIT B
IDI-33890
Page 4 of 4
JUN I 0 200323. The Holder shall comply with the applicable Federal and state laws and regulations
concerning the use of pesticides (i., insecticides, herbicides, fungicides, rodenticides, and other
similar substances) in all activities/ operations under this grant. The permittee shall obtain from
the authorized officer approval of a written plan prior to the use of such substances. The plan
must provide the type and quantity of materialto be use; the pest, insect, fungus, etc., to be
controlled; the method of application; the location of or storage and disposal of containers; and
other information that the authorized officer may require. The plan should be submitted no later
than December 1 of any calendar year that covers the proposed activities for the next fiscal year.
Ifneed for emergency use of pesticides is identified, the use must be approved by the authorized
officer. The use of substances on or near the permit shall be in accordance with the approved
plan. A pesticides shall not be used if the Secretary of the Interior has prohibited its use.
pesticide shall be used only in accordance with its registered uses and within other limitations
the Secretary has imposed limitations. Pesticides shall not be stored on public lands authorized
for use under this grant.
24. The Holder is responsible for the control of noxious weeds that results or would result
from the construction or maintenance of their right-of-way. 'Before construction or maintenance
equipment moving onto the right-of-way area, the equipment-shall pe cleaned off using power or
high-pressure cleaning to remove all mud, dirt and plant parts. During the term of the grant,
whenever known noxious weeds are observed along the right-of~way, the Holder shall spray such
weeds with an herbicide approved by the county weed authorities. The spraying shall be done
during recommended periods, using the prescribed type and quantities of spray recommended by
the chemical manufacturer. The Holder shall follow the prescribed application methods required
by state and local authorities.
25. This grant shall be subject to cancellation upon failure by the Holder to observe any
conditions or terms required by this grant. The cancellation shall become effective as provided
by 43 CFR ~2803.4 and the Holder shall quietly and peaceably deliver to the United States
possession of the premises upon completion of such do process.
26. The Holder shall have all construction work completed within 1 year of grant issuance, at
which time, the Holder shall file proof-of-construction unless this proof can be filed within 90 days
of road's completion, whichever is sooner. Failure to construct as specified shall be grounds for
termination.
27 The Holder shall notify the authorized officer of any change in name or address or any
change in ownership of privately held property within the right-of-way within 30 days of such
event. The purpose of such notification shall be to file with the authorized officer an application
for assignment ofthis grant and/or to keep him informed of the official contact with the Holder of
interest.
**BUREAU OF LAND MANAGEMENT**
LOWER SNAKE RIVER DISTRICT
RENTAL CALCULATION SHEET
Calculation date: 06/20/2003
Linear RIGHT OF WAY GRANT Rent for
SERIAL # IDI-33890
POWER DEVELOPMENT ASSOC., LLC
1015 WEST HAYS
BOISE ID 83702
Grant purpose is for an ELECTRIC LINE
Rental rate for this use is $19.69 per acre per year
RENTAL CALCULA TI ONS
eng
2244.00 ft
990.00 ft
Width 43560
10.00 ft 43560
20.00 ft 43560
TOTAL ACRES
cres
0 .5~,
Annual rent = rate/acre total acres
Annual Rent
$$$19.
ate$$19.Acre
5 year rent is required because ,annual rent is
less than $100.00 (43 CFR 2803.1-2 (a) )
Rent from 7/10/2003 to 12/31/2003
$$$19.10 6/12 months
(Partial year rent = Annual rent X No. of
Rent from 1/ 1/2004 to 12/31/2007
$$$19.10 4 years
TOTAL RENT DUE THROUGH 12/31/2007
Less Previous Payment (s)
**PAYMENT DUE**
$$$ 9.
months / 12)
SSS76.
$$$85.
$$$85.
For calculations the numbers are rounded to 2
decimal places. Information concerning these
calculations is available by contacting the
person listed below.
Person responsible for these calculations is
LORIS SCHMIT
j,
EPA
rEP 1
entity the source by
ant name, State, and
~IS code.
rEP 2 'ter requested' .formation for the!signated
presentative. .
rEP 3 rterre!)uested .formation for thelemate designatedpresentative, ifIplicable.
, ,
I'EP 4 . )mplete Step 5, read
. e certifications, and.
gn and date. For a
tsignated. representa-,e of a coml:)ustioh or .
'OCesssouree under 40
FR part 74, the refer-
. Ices in the certifications
. "
affected unit" oriffectedunits" also .)ply to tl1e combustion. ~rocess source under
. CFR part 74 and the,ferencesto "affected)uree" also apply-to. .
esoutce at WfliCh the)mbustion or process. )urce is located.
' .;,.-- '
United States
. -
Environmental Protection AgencyAcid Rain Program . OMB No. 2060-0258
Certificate of Representation Page 1
For more information, see instructions and refer to 40 CFR 72,
This submission is: New Revised (revised-submissions must be completed in full; see instructions)
This submission includes combustion or proCess sources under 40 CFR part
55733
Plant Name Mountain Home Energy Project ~tate PRIS Code
ame Rbbert Looper
ddress Power Deve opmen
1015 West Hays
Bois~, . ID 83702'
ASSOc1ates, LLC
331-'1898 axNumber 208-343-1218
rlooper~micron_net
ax Number -
I certify that I was selected as the designated re~sent8tive or altem~e designated reP!!9S6ntatlve as apprK:able, by im
. ,
agreement binding on the owners andopel1itors of the affected source and each afJ~ed unit at the source
that!have given notice ofthel!9reement. selecting me as the 'dEsignated representative' forthe affected source and
each 8ffected Imit at ttIe source Identified In this certilicateOf ~resentatior\, In a
~~
of general circulation In the area
where the source is located or In a State publicat~n designed to give general puIJrlC notice, '
. "
, c;E!I1Ify tti8t I have al nei:essaty authority to carry out my duties and res!)OnsibBities under the Acid Rain Program on behalfof the ownerS and ~rators of tile affeded source and of each affecteit unit at the source end that each sUCh ownerand
operator shaD be fully bound by my actlons,lnactlons, or submissions. '
" '- -
certify that I shaRabldebv a~fiduclaty responslJliIIes iiIposed ~the agreernentbywhlch was sel8cted as designated'
representat~e or altemale' slgnate(l representative: asappliCabiEl.
' ," , '
I certify that the ownerS and QPerators of the a~ source 800 of each affeCted unit at the source shall be bound by any ,
orderl,SSued to me by the Administrator, the permltlingauthority, ora court regarding the source or UI1it.
.' -- .--- -- ,- - -:- - :. ,
w1erethera are mUitiple holders of a leasl or equitable title to, or a ieasehold interest in, an atrectecl unit, or where a~
or industrial customer purchases poWer1rom an ,affected unit under Iife-of-the-unit, firm power contractUal arrangements,
certify that"
, ,, ," ", '
I haVe given a written notice of my selecllon as the designated ~ntBtive or alternate desjgnated rejnsentat;.re as applICable, and of,the ~ which I was selected to each owner and operator ofttie litrected source ana
of eaCh affe~ unit at SOlJrc8,.oo ,
, - " , " , "
AlloWances and the proceeds of tr:&nsactionslnv()lving allowances wil be deemed to be held or distributed In
pl'C!PO.rtIontoeach hoIder's leQa~ equitable leasehokl orcontraclualreservatlon orentitlement or,lfsuchmullklle '
" hoJ(fers have e~Jy proVld8d for a different distiibuUon of aDowances by contract, that allciwancesand the
proc:eec:l!i of~nsactioi1S 1i1V~ng al~a,:,ces win be deemed to be, held or distributed in accordance with the
' ,' ,
contract
' , , ' " ' , " ', , ., ,- ,
The agreemenl by Which 1w8s$SledeciasthealematedesignSted represe~:If=cabIf! i1cIucIeS a prOcedur8forlt1e '
" '
, ~~~of~~::rer;:ere:e~lII1ftsat sourceto ~~nzethe a .rnatedes~~lepesentatIveto ,
- -' ,- -
\ Form 7510-1 irev0 98: rirevious versions obsoielA\
- -
EP5 ovide the name of
:ery owner andlerator of the sourceId identifJ e8chfected unit (orImbustionor process
IlIrce) they own d/or operate. '
-- .;- .
Mountain Home Enetgy proj ect-
Plant Narne (from Step 1)
, Certificate.- Page 2
" Pag~ GJ of IiJ
I am authorized to make this submission on behalf of the owners and operators ofthe affected source or affected unKs forwhich the submission is made. I certif)' under penalty of law that I have personally examined, and am fami6arwith, thestatements and infonnation submitted in this document and aD its attachmentso Base(! on my inqul!y afthose individuals wIhprimary responsibility for obtaining the information, I certify that the statements and information are to the best of knowledge and belief true, accurate, and complete, I am aware that there are significant penalties for submitting false
statements and i ation or omitting required tatements and information, jnduding the possibility affine or imprisonment
ignature(alternate designated representative)
Name Power Development Associates, LLC ~Owner , Operator
10#ID# 03ID# 02 10#ID#10#ID#
10#ID#10#ID#10# ID#10#
Name OWner 0 Op~r8tor
. .
10#10#10#10#10# -10#ID#
10#ID# 10#10#10#10#ID#
Name Owner Operator
10#ID#ID#ID#"10#10#ID#
10#10#
-" -
10#10#10#-JO#10#
Name DOWner"operator.
ID#ID#10#10#10#
' -
10#10#
ID#ID#10#ID#JD#iDIJ-10#
- --- -
~Form 7610.:1 (rev, 4-98: mvlous versions obsolete\
"";,
&EPA.
Acid Rai n' Program
Instructions for
Phase IIPermit Application
, (40 CFR 72.30- 72.31)
Please type or print. The alternate designated representative may sign in lieu of the designated representative. assistance is needed, contact the title V permitting authority,
STEP 1 Use the plant name and ORIS Code listed on the Certificate of Representation for the plant. An ORIS code isa 4 digit number assi9ned by the Energy Information Agency (EIA) at the UoS. Department of Energy to PQwerplants owned by utilitieso If the plant is not owned by a utility 5u\has a 5 diQit facility code (also assigned by EIA), :use the facility code. If no code has been assigned or if there Is uncertamtyrE!garding what the code number. is, contact EJA at(202) 426~1234 (for ORIS codes), or [phone] (for facIlity codes).
" ....-
STEP 2 For column a; identify each affected unit at the affected source by providing the appropriate unit Identifi~tionnumbersJ consistent with the unit identification numbers entered onthe Certificate of Representation, with unitidentificadon numbers listed in NADB (foruni\s that commenced operation prior to 1993), and with unitidentification numbers used in;reporting to DOE and/or EIA. For new units without Identification numbersowners and operators mID' assign suct; numbers consistent with EIA and DOE requirements; NADB is theNatiom:il Allowance Data Base for the Acid Rain Program. and can be downloaded from the Acid Rain Program
Website at "Wwwoepaogov/acidrain/"or ol;Jtained on disket!e bY. calling the ACid Rain liotllrie. This data file is in~Ba~e format for-use on an IBM-compatible PC and reqUIres, 2 megabytes of hard dnve memory.
For column .c; enter .yes" only if a repowering technology petition has been approved for the unit by U.I::PA, ,an initial repowering extension plan was approved by "the title V permitting authority, and activated by. thedesignated representative, and a repowering extension plan renewing the onginal repowering extension pla
has been Included with the current acid rain perinit application for that unit.
. . - .
For columns "d" and "" enter the commence operatiol)d~t~(~) and monitor certitlcaticm deaciline(s) for, newunits In accordance Wit~ ~O. CFR 75.4. .If tl'!e commenceoperation date or ni9nltor certification dat~ qhanges
after the P-hase 11 permit IS Issued, the designated representative must submlta request for anadmlnlstrafivepermit amendment under 40 CFR 72.830 . .
. ,." .. .
Submission Deadlines
For new units, an initial Phase II permit application must be submitted to the title v.permitliJ)g authority at least ~4 monthsbefore the later of January 1, 2000 or the date the unit commences operation. Phase II acid rain renewal applicationsmust be. submitted at least 6 months in advance of the ex~iration ofthe acid rain portion of a title V permit, or such.longertime as provided for under the title V permitting authority s operating permits regulation" .
. . ;;
. Submission lnstructions ,
Submit this formand 1 copy to the ap'propriai~ title V air permitting authority~ It yo~have questions regarding this form
. ,
contact your local, State, or-EPA Regional acid rain contact, or call EPNsAcid Rain Hotline at [phone]. '
Paperwork Burden Estimate
- -
The burden on the public for cOllecting and reporting Information urwer this request Is estimated at 17 hours per response. Sendcomments regarding this collection of Information, indudl!1Qsuggestions for reducing the burden, to: Chief, Information Policy Branch
(2136), U.S, Environmental Protection Agency, 401 M Street, SW, Washington, D.C, 20460; and to: PapelWork Reduction ProJl:icl
(OMB#2060-0258), Office of Information and Regulatory Affairs, Office of Management and Budget, Washington. D.C, 20503. Do not
submit forms .to these addresses; see the submission InsfrucUons
- -- - - . -
. above.
' .- -- -
&EPA
rEf 1
entity the source by
alit name, State, and~IS code.
'STEP 2 :nter the lIOIt ID#or each affected
, .
Inlt, ..and Indi~ate,helher a unit is
. 'eln r~powere~ e repowermran sing renewe
IY ~flt'nngo "yes" OJfio at corumn c. . For
Iew units enter th~equested' information.n cQI\lmns dand e. .
EP 3
' "
, 1eck the. box rihe . i . . ,-onse mco umn c
~- -= .
:r ~~~ ~Jft
~'Y~s"
. .
,PA Forni 7610.:16 (rev~ 4-98)
- . -- - -
United States
Environmental Protection Agency
. Acid Rain Program OMB No. 2060-0258 .
Phase II Permit Application Page 1
For more Information, see instructions and refer to 40 CFR72.30 and 72.
This submission is: ED New Revised
Piant Name state Mol1ntr!; n Romp F.nprQY proj PC"t I~R~l1; .
Compliance
Plan
. b d -
Urn ID#Repoweririg
Plan New Units New Units .Unit WiB
Hold Allow-
ances inAccordance
with 40 CFR
. 7209(c)(1)Commence
- Operation Date
. Monitor Certification. DeadDne
Yes 9/1/2002
Ves fJj1/2002
Yes 9/1/200:2
Yes 9/; 12002
Yes
Yes
Yes
Yes
Ves
. Yes
-. -
. Ves
. Yes
- ----- -
-0 FOr each unit that is being repowered. the Repowering EXtenSion Plan f
orm's lnC/uded
rEP 4
~ad the standardquirements and!I'tification, entere name of the
!signated repre-!ntAtlve, and signId date
! ,, ,- -- -
:PAForm 7610-16 (fev. 4-98)
Phase II Penni!. Page
. .
Mountain Home- Energy Project
Plant Name (from Step 1)
Standard Requirements
PennitReauirements
(1) The designated representative of each affected source and each affected unit at the source shail:(i) Submit a complete Acid Rain permit application (including a compliance pian) under 40 CFR part 72 in
accordance with the deadlines specified in 40 CFR 72.30; and(II) Submit in a timely manner any supplemental information that the pennitting authority detennines is
necessary In order to review an Acid Rain pennlt application and issue or denY. an Acid Rain p'ennit;(2) The owners and operators of each affected source and each affected unit at the source shall:
(I) Operate the unit In compliance with a complete Acid Rain permit application or a superseding Acid Rainpermit Issued by the permitting authority; and
(II) Have an Acid Rain Permit.
Monltorino Reauirements
(1) The owners andoperators and, to ttie extent applicable, designated representative of each affected
source and each affected unit at the source shall comply with the monltonng requirements as provided In 40CF~rt15. .
. -. .
(2) The emissions measurements recorded and reported in accordance- witH 40 CFR part 75 shall be usedto . determine compliaAce by.the unit with the Acid Rain emissions limitations and emissionS reduction. requirements for sulfur dioxide and nitroQen oxides under the Add Rain Program. -
- .
(3) The requirements of 40 CFR part 75" shal.lnotaffect the responsibility of the oWners and operators tomonitor emissions of other pollutants or other emissions characteristics at the unit under other applicable
. requirements of the Act and other provislons, of the operating permit for the s ourceo
- - . - .
Sulfur Dioxide ReaUirements
(1) The oWners and operators of. each source and each affectedonlt at the source shall:
. .
(i) Hold allowances, as oflhe allowance tranSfer deadline, In the unit's -compliance subaccount (afterdeductions under 40 CFR .73.34(c)) not Il!'ss than the total annual emissions of sl!lfur dioxide for the
reviOUS calendar .year from the _unlto and
. .. -
, iI) Comply with lheappllcable Acid Rain emissions limitations for sulfur dioxide,
. .
(2) ach ton of sulfur dioxide emitted in excess of the Acid Rain emissions limitations for sulfur dioxide shallconstitute a separate violation of the Act,
. " '. , .. '.. . -
(3) An affected unit shaff be $ubject to 'the requirements under paragraph (1) of the sulfur dioxide
. -
requirements as follows:
. - . - ' -- .
(1) Starling January 1, 2000, an affected unit-under 40 CFR 7206(a)(2); or
. "
(II) Starling on the later of January 1, 2000 or the deadline for monitor certification under 40 CFR part 15,an affecteCl unit under 40 CF.R 72,6(a)(3), '
. .. .. .
(4) Allowances ;shall be h!!Id In, deducted from, 'C!r transferred among Allowance Tracking System accountsrn accordance with the Add Rain Program.
. -
(5\ An allowance shall not be ~educted In ord~r to comply with the requirements u!lder paragraph (1) of thesulfur dioxide requirements poor to the calendar year for which the allowance was allocated, .
(6) An allowance allocated by the Administrator unClerthe Acid Rain Program Isa limited authorization toemit.sulfur dioxide In accordance with the Add Rain Program, No provision. of the Add Rain Program, the AcidRain permit application, the Acid Rain pennit, or an exemption under 40 CFR 12,72.8, or 72,14 and noprovision of law shall.be construed to limit the authority of the United States totenninate or limit suchauthorization,
, .. .. ...
(1) An allowance allocated by ltie Administrator under the Acid Rain Program does not constitute a property.FIght.
. .. .- -
Nitroaen ~ides Reau~, The owners and operators of the source and each affected unit at the. source sha comply WIth the applicable Acid Rain emissions limitation for nitrogen oxides.
Exc:ess EmissionsReauirem~nts
, .. .. .. .. ~
(1) The designated representative of an affected unit that has excess emissions In any calendar year shaff
submit a proposed offset plan, as required under 40 CFR part 770 ' .(2) The owners and operators of an affected unit that has excess emissions In any calendar year shall:
(I) Pay wlthout- demand the penalty required, and pay upon demand the Interest on th~t penalty, as. required by 40 CFRpart 77; and
. .. . .. .' .
(II) Comply with the terms of an approved offset plan~ as required by 40 CFR part 11; . .
Recordk~eDlna and Reooiuna Reaulrenientso .
(1) Unless otherwise provided, the owners and operators of the source and each affected unit at the
source shall keep on site at the source each of the following documents for a perl9d of 5 years from the date
the document Is created, . Th15 period may be extended for cause, at any time pnor to tlie end of 5 Years, Inwriting by the Administrator or permitting. .
. ... .. - . .
'Q~~ certificate of representation forthe d~slgnated rep~esentativef~rthe source and each affected unit et the source and all documents that demonstrate the truth of the statements Inthe-certlficate of .representation, in accordance with 40 CFR 72:24; provided that the certificate and documents shall be
retained on site at the source beyond such 5-year period until- such documents are superseded becauseof ttie subm!sslon of ~ n~w certificate of representation qhanglng the. designated representaUv~; .
(IQ All emissIOns monitoring Information, In accordance with 40 CFR part 15, provided that to the extent.that 40 CF~ part 75 provides fora 3-year period for recordkeeplng, the 3-year period shall apply. .
(16) Copies of all reports, cOmpliance certifications, and other submissions and all records made or.
reQuired under the Acid Rain Program; and,
.. - . . . .
. (tv, Copj~ of all docu(J1ents useato complete an Add Rain permit application and any other submissionunder the ACid Rain Program ono demonstrate compliance with the .r!3quirements of the Add RainProgram,
. .
. --
. 'PA Form 761~16(rev. 4-98)
(2) The designated representative of an affected source and each affected unit at the source shallsl,lbmit
. the reports and compliance certifications required under the Acid Rain Program, Including those under 40 CFR
part 72 subpart I and 40 CFR part 75.
Phase II Penni! - Page
Mountain Home Energy Project
Plant Name (from Step 1)
, !
Liabilitv
(1) Any person who knowingly violates any requirement or prohibiUon of the Acid Rain Program, a complete
Acid Rain permit application, ari Acid Rain permit, or an exemption under 40 CFR 72,72., or 72,14, includingany requirement for the payment of any penally owed to the United States, shall be subject to enforcementpursuant to section 113(c) of
the Act. .
. (2) Any person who knowingly makes a false, material statement in any record, submission, orreport under
the Acid Rain Program shall be subject to criminal enforcement pursuant to section 113(c), of the Act and 181oo1.
. .
(3) No permit revision shall excuse any violation of the requirements of the Acid Rain Program that occurs
prior to the date that the revision takes effect.
(4) Each affected- source and each affected unit shall meet the requirements of the Acid Rain Program.(5) Any provision of the Acid ijain Program that applies to an affected source (Including a provision
applicable to the _designated representative of an affected source) shall also app1y to the owners andoperators of such source and of the affected units at the- sourceo
. .
(6) Any provision of the Acid Rain Program that applies to an affected unit (Including a provision applicableto the designated representative of an affected unit) shall also apply to the owners and operators of such
unit Except as provided under 40 CFR 72.44 (Phase II repowerlng eXtension plans) and 40 CFR 76.11 (NO. .averaging plans), and except with regard to the requirements applicable to units with a common stack under
- 40 CFR part 75 (Including 40 CFR 75,16,75.17, and 75.18), the owners and operators and the designatedrepresentative of one affected unit shall-not be liable for any violation by any other affected unit 1)f whichthey are not owners or operators or the desi9riated representative and that Is located- at a source of whichthe)' are nqt o~ners or operC!tors or the designated rEMJresentatlve~. -
- .
(7) Each Vlotation of a provIsion of 40 CFR pa~ 72, 73, 74, 75, 76~ 77; and 78 by an affected source or
affected unit, or by an owner or operator or designated representative of-such source or unit, shall be aseparate violation of the Acto
Effeclmi..Qther Authorities 0 No provision of the Acid Rain Program, an Acid Rain permit application, an Acid~on under 40CFR 72., 12.8, or 72.14 shall be construed as:
(1) Except as expressly p':ovlded In Warv of the Act, exempting or excluding the owners and operators and,
(0 the extent applicable, the designated representative _of an affected source or affected unit from -
compliance with any other provision of the Act, Including the provisions of title I of the Act relating to
applicable National Ambient Air Quality Standards or State Implementation Plans;
- -
(2) Limiting the number of allowances a unit can hold; provided that the number of aliowances h~ld by theunit shall not affect the source s obligation to comply with any other provisions of the Act;
. --
(3) Requiring a C!'1ange dany kind in any Stat~ law regulating electric UtIlity rates a~d charges, affecting any- State law regardlng.lfuch State regulation, or hmltlngsuch State regula~on, including any prudence reviewrequirements under such State law; .
. .
(4) Modify.!ngthe Federal P6wer Act or affecting the authority ofthe Federal Energy Regulatory Commission
under the Federal Powe.r Act; or, -
.. . .. .
(5) Interfering with or Impairing any program for competitive bidding for power supply In a State In which .such program is established. .
. .. .
Certification
I am authorized to make this submission on behalf of the owners and operators of the affeCted source oraffected units for which the submission Is made. I certify under penalty of law that I have personallyexamined, and am famRiar wlth,the statements and information submitted in this document and all ItSattactvl1!'1ntso Based on my Inquiry of those Individuals with primary responsibility, for obtaining theInformation, I certify that the statements and Information are to ttle best of my knowie(lge and belief true,accurate, arid complete. I am aware that there are ~Ignifjcant penalties for subm~ng false statements andInformation or omitting required statements and information, Including the possibility of fine or imprisonment.
- '
TT A CHMENT TO
RESPO NSE TO
REQUEST NO. 56
D&B Comprehensive Report: SIEMENS CORPORA nON
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Copyright 2003 Dun & Bradstreet - Provided under contract for the exclusive use of subscriber 086001485L
Overview
ATTN: Credit Report Printed: OCT 24 2003
~. eoMe-Y\S,
Moo cl'1 t;;BUSINESS SUMMARY
VL~kJ'
d s
&11- I ii
C v-r ~
;1q 3
SIEMENS CORPORATION
(FOREIGN PARENT IS SIEMENS AG, MUNICH
GERMANY.
153 East 53rd St 56th FI
New York, NY 10022
D&B's Credit Limit Recommendation
How much credit should you extend?Learn More f. View Now
Payment Trends Profile
Payment trends and industry benchmarks
Jump to Payment Trends
D&B D-U-N-S Number:06-499-5533
This is a headquarters (subsidiary) location.
Branch( es) or division(s) exist.
Web site:
Credit Score Class:
High risk of severe payment delinquency over next 12
monthswww.usa,siemens.com
KLAUS KLEIN FIELD, PRES-CEO
High
,'"
Telephone: [phone]
Chief
executive:
Year
started:
Employs:
History:
SIC:
Line
business:
PSIUSlvl
Moderate Low
w'
1954
Financial Stress Class:
Moderate risk of severe financial stress over the next 12
months
000 (300 here)High
~W+T-
CLEAR
3612
3844
3661
3641
3357
ModeratE!'Low
--t
12-Month D&B PAYDEX(ID:
When weighted by dollar amount, payments to suppliers
average 18 days beyond terms,
Mfg electrical & diagnostic equip,
electronic communications equip,
electronic components, postal
automation
120 days SiO'N PIompt ARtlclpates
D&B Rating:
EXECUTIVE SUMMARY
100
30dayssJow
https://www.dnbocom/delivery/35/352412/352412.COMHQ.1163.3244453543 ,tngoprinth... 10/2412003
D&B Comprehensive Report: SIEMENS CORPORA nON Page 2 of
The Financial Stress Class of 3 for this company shows that during the previous year, firms with this
classification had a failure rate of 3.73% (373 per 10 000), which is 2.66 times higher than the national average.
The Credit Score class of 5 for this company shows that during the previous year, 58.6% of the firms with this
classification paid one or more bills severely delinquent, which is 3.43 times higher than the national average,
Predictive Scores
Financial Stress Class
Financial Stress Score
Credit Score Class
Other Key Indicators
PAYDEX Scores
Industry Median
Present management control
UCC Filings
Public Filings
History
Special Events
CREDIT CAPACITY SUMMARY
D&B Rating:--
This Business Comments
Failure Rate higher than the national
average.
Highest Risk: 1 001; Lowest Risk: 1 850
Probability of Severely Delinquent Payment
is higher than the national average
1352
18 days beyond terms Pays more slowly than the average for its
industry of 12 days beyond terms
12 days beyond terms
49 years
UCC filing(s) are reported for this business
No record of open Suites), Lien(s), or Judgment(s) in the D&B database
Is clear
Are reported for this business
The blank rating symbol should not be interpreted as indicating that credit should be denied. It simply means that
the information available to D&B does not permit us to classify the company within our rating key and that further
enquiry should be made before reaching a decision. Some reasons for using a "" symbol include: deficit net worth
bankruptcy proceedings, insufficient payment information , or incomplete history information. For more
information, see the D&B Rating Key.
of Employees Total:
SPECIAL EVENTS
000 (300 here)Payment Activity:
(based on 250 experiences)
Average High Credit:
Highest Credit:
Total Highest Credit:
620
$400,000
223,550
10/07/2003
ANNOUNCED OFFICER CHANGE: According to published reports, Siemens Corporation has named Jan D
Dressel, vice president and chief information officer, effective November 1, 2003. Dressel who has worked for
Siemens for more than 20 years served as vice president and chief information officer for Siemens Asia Pacific inSingapore.
Jump to:
Overview Payments
Scores ri3W1!USIVI
Public Filings History & Operations Banking & Finance
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- D&B Comprehensive Report: SIEMENS CORPORATION Page 3 of
FINANCIAL STRESS SUMMARY
The Financial Stress Summary Model predicts the likelihood of a firm ceasing business without paying all creditors
in full, or reorganization or obtaining relief from creditors under state/federal law over the next 12 months. Scores
were calculated using a statistically valid model derived from D&B's extensive data files.
High
~w.iH'
~ "'
Moderate risk of severe financial stress, such as a bankruptcy, over the next 12 months.
Moderate LO\".
Financial Stress Class:
Incidence of Financial Stress
Among Businesses with this
Classification:
National Average
73% (373 per 10,000)
1.40% (140 per 10 000)
Financial Stress National Percentile: 10 (Highest Risk: 1; Lowest Risk: 100)
Financial Stress Score: 1352 (Highest Risk: 1 001; Lowest Risk: 1 850)
The Financial Stress Class of this business is based on the following factors:
. Payment experiences exist for this firm which are greater than 60 days past due.
. 47% of trade experiences indicate slow payment(s) are present.
. No record of open suites), lien(s), or judgement(s) in the D&B files.
Control age or date entered in D&B files indicates lower risk,
Notes:
. The Financial Stress Class indicates that this firm shares some of the same business and financial
characteristics of other companies with this classification. It does not mean the firm will necessarily
experience financial stress.
. The Incidence of Financial Stress shows the percentage of firms in a given Class that discontinued operations
over the past year with loss to creditors. The Incidence of Financial Stress - National Average represents the
national failure rate and is provided for comparative purposes.
. The Financial Stress National Percentile reflects the relative ranking of a company among all scorable
companies in D&B's file,
. The Financial Stress Score offers a more precise measure of the level of risk than the Class and Percentile. It
is especially helpful to customers using a scorecard approach to determining overall business performance.
All Financial Stress Class, Percentile, Score and Incidence statistics are based on 2002.
Norms National %
This Business
Region:
MIDDLE ATLANTIC
Industry :
:MANUFACTURING
Employee Range:
500+
Years in Business:
26+
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, D&B Comprehensive Report: SIEMENS CORPORATION Page 4 of 20
I--~""_~_".m_.m~,w"'--Ffn'~in~dai"'s tresS tfo-rmsC-m p risonm(%r-~....."-~100
.-.. 80
,-
: G.I
i ~
,~
_m"_-
This Business Region Industry Employee Years inRange Business
Region=MIDDLE Al1.ANl1C
Industry = MANUFACTURING
Employee Range=500+Years in Business=21i+
----------_._-,------
This business has a Financial Stress Percentile that shows:
Higher risk than other companies in the same region,
Higher risk than other companies in the same industry.
Higher risk than other companies in the same employee size range.
Higher risk than other companies with a comparable number of years in business.
CREDIT SCORE CLASS SUMMARY
The Credit Score class predicts the likelihood of a firm paying in a severely delinquent manner (90+ Days Past
Terms) over the next twelve months. It was calculated using statistically valid models and the most recent payment
information in D&B's files.
High Moderate Low
Credit Score Class: 5 ~dM"'
.. ..
High risk of severe payment delinquency over next 12 months.
Incidence of Delinquent Payment
Among Companies with this Classification: 58.60%
Credit Score Percentile: (Highest Risk: 1; Lowest Risk: 100)
The Credit Score Class of this business is based on the following factors:
. Payment experiences exist for this firm which are greater than 60 days past due.
. 47% of trade experiences indicate slow payment(s) are present.
Control age or date entered in D&B files indicates lower risk.
. No record of open suites), lien(s), or judgments(s) in the D&B files.
. Payment information indicates negative payment comments.
Business does not own facilities,
Notes:
. The Incidence of Delinquent Payment is the percentage of companies with this classification that were
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D&B Comprehensive Report: SIEMENS CORPORATION Page 5 of
reported 90 days past due or more by creditors. The calculation of this value is based on an inquiry weighted
sample.
. The Percentile ranks this firm relative to other businesses. For example, a firm in the 80th percentile has a
lower risk of paying in a severely delinquent manner than 79% of all scorable companies in D&B's files.
Crediisco reND rmsCDm'parlson(%)---_O
! Norms National %100
!~ ,-
This Business
:.;::
Region:
MIDDLE ATLANTIC
Industry:
MANUFACTURING
Employee Range:
500+
Years in Business:
26+
This Business Region Indusby Employee Years Range Business
Region=MIDDLE AT1.ANTICIndusby = MANUFACTURING
Employee Range=500+Years in Business=26+
""---""""---"---'_W"---"--,_w,-__w"""mw"ww_,"-"","""""m"_'__"-,---"~----,-""",-W
",""""","""",,-,,-,
..1
This business has a Credit Score Percentile that shows:
. Higher risk than other companies in the same region,
. Higher risk than other companies in the same industry,
Higher risk than other companies in the same employee size range.
Higher risk than other companies with a comparable number of years in business.
Jump to:
Overview Scores Public Filings History & Operations Bankinq & Finance
Payments 0P.MUSlVI
PAYMENT TRENDS
Total Payment Experiences in D&B'
File:
250
Total Placed For Collection:
Current PAYDEX is:equal to 18 days
beyond terms
Industry Median is:equal to 12 days
beyond terms
Payment Trend unchanged,currently is:compared to
payments three
months ago
Payments Within Terms:
(not dollar weighted)
64%
Average Highest Credit:620
Largest High Credit:$400 000 Indications of slowness can be the result of dispute over
merchandise, skipped invoices, etc, Accounts are sometimes
placed for collection even though the existence or amount of
the debt is disputed.Highest Now Owing:$200 000
Highest Past Due:$95 000
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D&B Comprehensive Report: SIEMENS CORPORATION Page 6 of
PAYDEX Scores
Shows the D&B PAYDEX scores as calculated on the most recent 3 months and 12 months of payment experiences.
The D&B PAYDEX is a unique, dollar weighted indicator of payment performance based on up to payment
experiences as reported to D&B by trade references. A detailed explanation of how to read and interpret PAYDEX
scores can be found at the end of this report.
3-Month D&B PAYDEX:
When weighted by dollar amount, payments to
suppliers average 15 days beyond terms.
12-Month D&B PAYDEX:
When weighted by dollar amount, payments to
suppliers average 18 days beyond terms.
120 days st-ow
100 100
120 days sio'N 30 days .slow PWl11pt Ant1clpatss301:lays slow Prompt Anticipates
Based on payments collected over last 3 months.Based on payments collected over last 12 months.
PAYDEX Yearly Trend
12 Month PAYDEX Scores Comparison to Industry
----- --------
-- m_
_____-...-------------- ----
_m - ------- _mmmm ...---------------_-__m__
____---------------____
---_mm__m--------_--m_--- -
------ ------...-------------______
11/02: 12/02 11/03:2/0313/0314/0315/03 6/0317/03:8/0319/0310/03\
;This Business 67 67 ' 68 68 67 ' 66 65 65 ' 66 65 66 67
---
Industry Quartiles
IUpper
IMedianlower,-...__.~_m____.___--m______----
75 75 75 71 i 71 71
------- ..._~~._~_~
~__mm_mJ......~~m.m...~___m_m__
j._
~~-_.---_..--..__m..
~~~
Shows the trend in D&B PAYDEX scoring over the past 12 months.
100
PAYDEX
....a
Nov-Dec-Jan-Feb-Mar-Apr-May-Jun-Jul-Aug-Sep-Oct-
Last 12 Months
Based on payments collected over the last 12 months.
- Current PAYDEX for this Business is 67, or equal to 18 days beyond terms
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D&B Comprehensive Report: SIEMENS CORPORATION Page 7 of
- The 12-month high is or equal to 17 days beyond terms
- The 12-month low is or equal to 19 days beyond terms
PAYDEX Comparison to Industry
Shows PAYDEX scores of this Business compared to the Primary Industry from each of the last four quarters, The
Primary Industry is Mfg electrical & diagnostic equip, electronic communications equip, electronic components
postal automation, based on SIC code 3612.
Quarterly PAYDEX Scores Comparison to Industry
This Business This Business
Industry Quartiles Industry Quartiles
Upper Upper
Median Median
Lower Lower
100
PAYDEX
~:---
~;:f
~: -----:,
J:-l
"""'-_~'_,"'mm'm'm_-T~~-"-""- __m_- m- -_'_~'~m_'--'m'-
I~-'~_m- ,m, m m____m___~--'
-, -
m'",- mmmm'm"'_m"m~_____--"-,-,,
I ~
",____m_m_m
Q4 2002 Q1 2003 Q2 2003 Q3 2003
Last 12 Months
Based on payments collected over the last 4 quarters.
Score Comparison Key:r::- This Business .. Industry upper quartile
Industry median
Industry lower quartile
- Current PAYDEX for this Business is or equal to 18 days beyond terms
- The present industry median score is 72 or equal to 12 days beyond terms.
- Industry upper quartile represents the performance of the payers in the 75th percentile
- Industry lower quartile represents the performance of the payers in the 25th percentile
Payment Habits
For all payment experiences within a given amount of credit extended, shows the percent that this Business paidwithin terms. Provides number of experiences used to calculate the percentage, and the total dollar value of the
credit extended,
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D&B Comprehensive Report: SIEMENS CORPORA nON
$ Credit Extended
roo'
Over 100,000
50,000-100,000
I 15,000"49,999
000-14,999
I 1,
000-4,999
Under 1 000
Page 8 of 20
of Payments Within Terms
# Payment
Experiences
$ Total
Dollar Amount
':-cO'
' -
c..o 000,000
$255,000
$540,000
$277 ,500
$91,500
107 $29,450
1~'m~Tw~r--l
100%
. I
50%
Based on payments collected over the last 12 months.
Payment experiences reflect how bills are met in relation to the terms granted. In some instances, payment
beyond terms can be the result of disputes over merchandise, skipped invoices, etc.
PAYMENT SUMMARY
The Payment Summary section reflects payment information in D&B's file as of the date of this report.
There are 250 payment experiences in D&B's file for the most recent 12 months, with 132 experiences reported
during the last three month period.
Below is an overview of the company s dollar-weighted payments, segmented by its suppliers' primary industries:
Days Slow
oe:::31 31-60 61-90 90::-
Top industries:
Nonclassified 164 000 000
Telephone communictns 500 000
Trucking non-local 15,100 10,000
Who I electrical equip 90,550 30,000
Who I electronic parts 458 750 400 000
Radiotelephone commun 400 500
Whol computers/softwr 59,050 000
Whol industrial suppl 400 000
Help supply service 000 10,000
Short-trm busn credit 250 500
Mfg photograph equip 123,500 100,000
Arrange cargo transpt 103 050 100,000
Mfg electric test prd 500 000
Misc equipment rental 750 500
Air courier service 700 000
Whol industrial equip 100 750
Misc general gov 750 750 100
Mfg semiconductors 500 000
Who I service paper 10,200 10,000
Electric services 600 000
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D&B Comprehensive Report: SIEMENS CORPORATION Page 9 of 20
Mfg environment cntrl 206 000 200 000
Passenger car rental 500 10,000
Misc publishing 500 000 100
Ret mail-order house 650 500
Executive office 200 100 100
Ret used merchandise 105,000 000 100
Mfg print circuit brd 20,050 20,000 100
Ret stationery 000 20,000
Whol office equipment 15,250 000
Public finance 500 15,000 100
Mfg misc special mach 500 500
General warehousing 050 000 100
Prepackaged software 750 500
Misc business credit 750 750 100
Whol durable goods 100 100
Mfg switchgear-boards 200,000 200,000
Medical equip rental 55,000 000
Mfg plane engine/part 35,000 35,000 100
Ret computer/software 000 000 100
Whol footwear 000 20,000 100
Mfg process controls 20,000 20,000 100
Detective/guard svcs 15,000 15,000 100
Mfg relays/controls 15,000 000
Mfg refrig/heat equip 10,000 000 100
Mfg comp peripherals 500 500 100
Mfg elect. connectors 500 500
Mfg metal cut mach 000 000 100
Ret-direct selling 000 000 100
Information retrieval 000 000 100
Petroleum terminal 000 000 100
Mfg paint/allied prdt 500 500
Computer system desgn 500 500 100
Whol metal 500 500 100
Data processing svcs 000 000 100
Whol office supplies 750 750 100
Local truck w/storage 500 500 100
Mfg surgical supplies 500 500 100
Mfg fluid power pumps 500 500 100
Who! heating/ac equip 250 250
Misc communictns svcs 250 250
Mfg industrial gases 250 250
Mfg chemicals 100 100
Scheduled air trans 100 100 100
Mfg soap/detergents 100 100 100
Mfg inorganic chemcls 100 100 100
Whol petroleum prdts 100
Newspaper-print/publ 100
Misc business service
Other payment categories:
Cash experiences 500 500
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D&B Comprehensive Report: SIEMENS CORPORATION
Payment record unknown 29,000 20,000
Unfavorable comments 600 500
Placed for collections:
With D&B
Other N/A
Total in D&B's file 250 400 000
The highest Now Owes on file is $200 000 The highest Past Due on file is $95 000
Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed.
Indications of slowness can be result of dispute over merchandise, skipped invoices, etc.
PAYMENT DETAILS
Detailed payment history
Date Reported Paying Record High Credit Now Owes Past Due Selling Terms(mm/yy)
($)($)($)
10/03 Ppt 500 500 3 mas
Ppt 500 3 mas
Ppt 500 5 mas
Ppt 000 6-12 mas
Ppt 250 6-12 mas
Ppt 12 mas
Ppt 6-12 mas
Ppt 1 mo
Ppt-Slow 30 500 750 3 mas
Ppt-Slow 30 000 12 mas
Ppt-Slow 30 12 mas
Ppt-Slow 60 500 500 1 mo
Ppt-Slow 120 000 500 3 mas
09/03 Ppt 30,000 1 mo
Ppt 000 25,000 N30 1 mo
Ppt 20,000 000 1 mo
Ppt 10,000 3 mas
Ppt 000 000 N30 1 mo
Ppt 000 12 mas
Ppt 000 N30 5 mas
Ppt 000 000 1 mo
Ppt 000 750 1 mo
Ppt 000 6-12 mas
Ppt 000 000 N30 1 mo
Ppt 750 N30 6-12 mas
Ppt 750 750 1 mo
Ppt 750 Lease Agreemnt 6-12 mas
Ppt 750 750 N30 1 mo
Ppt 750 3 mas
Ppt 500 N30 1 mo
Ppt 250 6-12 mas
Ppt 250 250 1 mo
Ppt 250 N30 1 mo
Page 10 of
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D&B Comprehensive Report: SIEMENS CORPORA nON
08/03
07/03
04/03
Ppt
Ppt
Ppt
Ppt
Ppt
Ppt
Ppt
Ppt
Ppt-Slow 15
Ppt-Slow 15
Ppt-Slow 30
Ppt-Slow 30
Ppt-Slow 30
Ppt-Slow 60
Ppt-Slow 60
Ppt-Slow 60
Ppt-Slow 90
Ppt-Slow 90
Ppt-Slow 90
Slow 5
Slow 10
Slow 10
Slow 10
Slow 30
Slow 30
Slow 30
Slow 30
Slow 30-60
Slow 30-
Slow 30-
Slow 60
Slow 60
Slow 30-
Slow 60
Slow 90
Slow 60-120
Slow 90-240
(071)
Satisfa ctory.
(072)
Satisfactory.
Ppt
Ppt
Ppt-Slow 30
Ppt-Slow 60
Slow 120
Ppt-Slow 120
Slow 30-
Slow 60-120
250
250
250
20,000
100
200 000
250
250
000
000
000
000
500
500
25,000
100
000
000
250
100
000
10,000
000
250
250
100
500
500
000
000
500
750
500
50,000
30,000
250
250
000
000
100
000
000
000
100
500
750
250
250
500
500
750
500
000
0 i
000
100
500
750
000
100
500
750
100
250
500
000
000
N30
N15
2 10 N30
N30
N15
N30
N30
N30
N30
N10
N30
Page 11 of
1 mo
5 mas
1 mo
1 mo
12 mas
1 mo
1 mo
1 mo
1 mo
1 mo
1 mo
3 mas
1 mo
1 mo
1 mo
6-12 mas
1 mo
1 mo
1 mo
5 mas
6-12 mas
12 mas
1 mo
1 mo
12 mas
3 mas
3 mas
1 mo
12 mas
1 mo
3 mas
1 mo
1 mo
1 mo
12 mas
1 mo
3 mas
1 mo
1 mo
2-3 mas
12 mas
12 mas
2-3 mas
Payment experiences reflect how bills are met in relation to the terms granted. In some instances payment beyondterms can be the result of disputes over merchandise, skipped invoices etc.
N30
N30
N30
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D&B Comprehensive Report: SIEMENS CORPORA nON Page 12 of20
Each experience shown is from a separate supplier. Updated trade experiences replace those previously reported.
Jump to:
Overview Scores Payments History & Operations Banking & Finance
Public Filings
PUBLIC FILINGS
The following data includes both open and closed filings found in D&B's database on the subject company,
Record Type
Bankruptcy Proceedings
Judgments
Liens
Suits
UCC'
# of Records Most Recent Filing Date
07/21/2003
_--_....-------.-.-------.---...---..-..............-.---..-.--........ ...-...-..--------.---.....................----------.-......-...-.----..........-.----
The following Public Filing data is for information purposes only and is not the official record. Certified copies canonly be obtained from the official source.
UCC FILINGS
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Computer equipment and proceeds - Equipment and proceeds
Original
SIEMENS CREDIT CORPORATION , BRIDGEWATER, NJ
SIEMENS CORPORATION
98061756
SECRETARY OF STATE/UCC DIVISION , ALBANY, NY
03/23/1998
04/13/1998
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Computer equipment and proceeds
Original
SIEMENS CREDIT CORPORATION, BRIDGEWATER, NJ
SIEMENS CORPORATION
98061744
SECRETARY OF STATE/UCC DIVISION, ALBANY, NY
03/23/1998
04/13/1998
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Equipment
Original
CROWN CREDIT COMPANY, NEW BREMEN , OH
SIEMENS ,INC" ALPHARETTA, GA
06098003324
FULTON COUN1Y SUPERIOR COURT CLERKS OFFICE, ATLANTA, GA
02/23/1998
03/16/1998
-----
Collateral:
Type:
Sec. party:
Debtor:
Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, loP" AUSTIN, TX
SIEMENS CORPORATION, ISELIN , NJ
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- D&B Comprehensive Report: SIEMENS CORPORA nON
Filing number:
Filed with:
Date filed:
Latest Info Received:
Page 13 of 20
3186270 8
SECRETARY OF STATE/UCC DIVISION, DOVER, DE
07/21/2003
08/14/2003
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, loP., AUSTIN, TX
SIEMENS CORPORATION, ISELIN , NJ
3186268 2
SECRETARY OF STATE/UCC DIVISION, DOVER, DE
07/21/2003
08/14/2003
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, loP" AUSTIN, TX
SIEMENS CORPORATION , ALPHARETTA, GA
3186247 6
SECRETARY OF STATE/UCC DIVISION, DOVER, DE
07/21/2003
08/14/2003
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, loP" AUSTIN, TX
SIEMENS CORPORATION, ISELIN , NJ
3145358 1
SECRETARY OF STATE/UCC DIVISION , DOVER, DE
06/09/2003
07/08/2003
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, loP., AUSTIN, TX
SIEMENS CORPORATION , ISELIN, NJ
3144085 1
SECRETARY OF STATE/UCC DIVISION, DOVER, DE
06/06/2003
06/26/2003
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Leased Equipment and proceeds - Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, loP., AUSTIN , TX
SIEMENS PROCUREMENT AND LOGISTICS SERVICES, LLC, SANTA CLARA, CA
2153486 0
SECRETARY OF STATE/UCC DIVISION , DOVER, DE
OS/24/2002
07/25/2002
Collateral:
Type:
Sec. party:
Debtor:
Filing number:
Filed with:
Date filed:
Latest Info Received:
Leased Equipment and proceeds - Leased Computer equipment and proceeds
Original
DELL FINANCIAL SERVICES, L., AUSTIN, TX
SIEMENS PROCUREMENT AND LOGISTICS SERVICES, LLC, SANTA CLARA, CA
2143958 1
SECRETARY OF STATE/UCC DIVISION, DOVER, DE
05/17/2002
07/16/2002
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D&B Comprehensive Report: SIEMENS CORPORA nON Page 14 of 20
There are additional UCC's in D&B's file on this company available by contacting 1-800-234-3867.
The public record items contained in this report may have been paid, terminated, vacated or released prior to the
date this report was printed.
GOVERNMENT ACTIVITY
Activity summary
Borrower (Dir/Guar):
Administrative debt:
Contractor:
Grantee:
Party excluded from federal program(s):
YES
Possible candidate for socio-economic program considerationLabor surplus area: N/ ASmall Business: N/A8(A) firm: N/ A
The details provided in the Government Activity section are as reported to Dun & Bradstreet by the federal
government and other sources.
Jump to:
Overview Scores Payments Public Filings Banking & Finance
History & Operations
HISTORY
The following information was reported 10/07/2003:
Officer(s):KLAUS KLEIN FIELD, PRES-CEO
KLAUS P STEGEMANN, EXEC V PRES-CFO
DIRECTOR(S):THE OFFICER(S)
BACKGROUND/OWNERSHIP:
Business started 1954 by parent. 65.0% of the capital stock is owned by Siemens AG; 30,9% of the capital stockis owned by OSRAM GmbH and 4,1% is owned by Siemens Nixdorf Informationssysteme AG (SNI-AG). OSRAMGmbH and SNI-AG are wholly-owned subsidiaries of Siemens AG.
This Company is the successor in interests to various entities since 1968.
KLAUS KLEIN FIELD born 1958. 1987-present active here.
KLAUS P STEGEMANN born 1957, 1975-present active here.
CORPORATE FAMILY
For more details on the Corporate Family, use D&B's Global Family Linkage product.
Parent:
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D&B Comprehensive Report: SIEMENS CORPORATION Page 15 of
Select business below to buy a Business Information Report.Siemens Ag Munchen, Germany DUNS # 31-606-7164
Subsidiaries (US):
Select businesses below to buy Comprehensive Report(s).
Acuson Corporation Mountain View, CA
L Cardion, Inc
Ellenco Inc
Mannesmann Corporation
Siemens Airfield Solutions Inc
Siemens Building Technologies Inc
Siemens Business Services Inc
Siemens Capital Company LLC
Siemens Corporate Research, Inc
Siemens Energy & Automation Inc
Siemens Medical Solutions
Siemens Technology To Business, Inc
Siemens Transportation Systems, Inc,
Siemens Westinghouse Power Corporation Orlando, FL
Van Dorn Demag Corporation (del)
Siemens Foundation
Siemens Information & Communication
Networks, Inc.
Siemens Information and Communication
Inc.
Siemens Information and Communication
Mobile LLC
Siemens Medical Solutions USA, Inc
Siemens Power Transmission &
Distribution, Inc
Siemens Power Ventures, Inc.
Siemens Procurement and Logistics
Services LLC
Siemens Real Estate Inc
Shawnee Mission, KS
Brentwood, MD
DUNS # 00-843-1744
DUNS # 60-739-9557
DUNS # 00-324-1106
DUNS # 03-781-6261New York, NY
Columbus, OH DUNS # 04-508-0686
DUNS # 01-094-4650Buffalo Grove, IL
Norwalk, CT DUNS # 10-118-8514
DUNS # 12-978-9371Bridgewater, NJ
Princeton, !'IJ DUNS # 62-068-0298
DUNS # 08-548-1786Alpharetta, GA
Iselin, NJ DUNS # 11-405-1936
Boca Raton, FL DUNS # 60-608-4770
Boca Raton, FL DUNS # 15-254-4326
San Diego, CA DUNS # 02-961-6877
DUNS # 06-738-1806Alpharetta, GA
Malvern, PA DUNS # 10-323-1817
Raleigh, NC DUNS # 06-999-3942
DUNS # 62-420-2628New York, NY
Iselin, NJ DUNS # 10-139-8621
DUNS # 84-394-7552Iselin, NJ
Berkeley, CA DUNS # 84-231-1180
DUNS # 78-152-5795Sacramento, CA
Strongsville, OH
DUNS # 15-397-7632
DUNS # 80-309-5942
Subsidiaries (International):
Select businesses below to buy Business Information Report(s).
Advanced Electronic Corp, ST MICHAEL, BARBADOS DUNS # 86-023-7267
----- - ---- - -- -- -------------------- - ------------------------- -- ---- -------------- - ------ --- - ------------------ --- - --- ------- ----
- __m
- - -- -- - - - - - - - - --------- -- --- ---- - ---- -- ------- --- ---- -----------
Branches (US):
Select companies below to buy Business Information Report(s).
Siemens Corporation Oakley, CA
Siemens Corporation
L' Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Sacramento, CA
Santa Ana, CA
DUNS # 03-422-7541
DUNS # 02-433-0248
DUNS # 03-739-2359
DUNS # 03-823-3636Saratoga, CA
Shelton, CT DUNS # 96-414-3259
DUNS # 62-240-9829Washington, DC
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D&B Comprehensive Report: SIEMENS CORPORA nON
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
Siemens Corporation
(J Siemens Corporation
(J Siemens Corporation
(J Siemens Corporation
(J Siemens Corporation
(J Siemens Corporation
Siemens Corporation
(J Siemens Corporation
Page 16 of
Lake Mary, FL
North Palm Beach, FL
Sanford , FL
DUNS # 05-806-5843
DUNS # 08-854-1214
DUNS # 11-183-5935
DUNS # 86-746-9678Tampa, FL
Acworth, GA DUNS # 09-811-6796
DUNS # 03-422-5271Alpharetta, GA
Alpharetta , GA DUNS # 83-590-5001
DUNS # 03-755-9502Loganville, GA
Woodstock, GA DUNS # 11-182-5340
DUNS # 62-073-9300Chicago, IL
Newburgh, IN DUNS # 79-992-9802
DUNS # 96-957-6792Prospect, KY
Duluth, MN DUNS # 02-236-5238
DUNS # 82-922-4401Brandon, MS
Columbia, MO DUNS # 02-308-6858
DUNS # 01-529-0740Oregon, MO
North Platte, NE DUNS # 94-527-2128
DUNS # 12-912-6525Iselin, NJ
Newark, NJ DUNS # 00-251-5802
This list is limited to the first 25 branches.
For the complete list, use D&B's Global Family Linkage product.
Affiliates (US):(Affiliated companies share the same parent company as this business.)
Select businesses below to buy Comprehensive Report(s).
C Epcos, Inc Iselin, NJ
(J Rexton , Inc
Siemens Financial Services Inc
(J Siemens VDO Automotive Corporation
Minneapolis, MN
Bridgewater, NJ
DUNS # 04-788-3926
DUNS # 09-646-2643
DUNS # 01-347-9931
DUNS # 19-712-5875Auburn Hills, MI
Affiliates (International):(Affiliated companies share the same parent company as this business.
Select companies below to buy Business Information Report(s).
(J ADB SA BRUXELLES, BELGIUM
BERLIN, GERMANY
MAINZ, GERMANY
GRONWALD, GERMANY
REDWITZ, GERMANY
ALSDORF, GERMANY
Dalian Zhongde Control System Co., Ltd. DALIAN, CHINA
Demag Delaval Industrial Turbomachinery MONCHEN GERMANYHolding GmbH
designafairs GmbH MONCHEN, GERMANY
DKS Dienstleistungsges. fUr
Ausbildungszentrum fUr Technik
Informationsverarbeitung und Wirtschaft
gemeinnOtzige GmbH
(J Berliner Vermogensverwaltung GmbH
(J BFE Studio und Medien Systeme GmbH
BOMA Verwaltungsges. mbH & CO.
(J Ceramics Verwaltungsges. mbH
CYCOS AG
DUNS # 37-008-6753
PADERBORN , GERMANY DUNS # 32-517-2393
DUNS # 32-214-6903
DUNS # 31-844-8453
DUNS # 32-444-1914
DUNS # 33-124-3738
DUNS # 31-658-0638
DUNS # 52-882-5565
DUNS # 33-215-1914
DUNS # 32-997-8381
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D&B Comprehensive Report: SIEMENS CORPORATION
Kommunikationanlagen des Stadt- und
Regionalverkehrs mbH
Duewag AG
EB Electric Beteiligungsges mbH
ePS Network electronic Production
Services GmbH
EVB Elektro-Verwaltungsgesellschaft fuer MONCHEN, GERMANYBeteiligungen mbH
Fertigungscenter fuer elektrische Anlagen WORZBURG, GERMANYLangen GmbH
Fertigungscenter fOr elektrische Anlagen DITZINGEN , GERMANYDitzingen GmbH
Fertigungscenter fOr Elektrische Anlagen BREMEN, GERMANYBremen GmbH
Fertigungscenter fOr Elektrische Anlagen HANNOVER, GERMANYm Hannover GmbH
Fertigungscenter fOr elektrische Anlagen
Langen GmbH
Fertigungscenter fOr Elektrische Anlagen ST INGBERT, GERMANYSt. Ingbert GmbHFIPAR SA BRUXELLES , BELGIUM
Frankendata Softwareengineering GmbH & ERLANGEN GERMANYCo. KG
Frankendata Sofwareengineering ERLANGEN , GERMANYVerwaltungsges. mbH
FUJITSU SIEMENS COMPUTERS, S.
Page 17 of 20
KOLN, GERMANY
KREFELD, GERMANY
DUNS # 33-347-9822
DUNS # 31-500-1040
DUNS # 32-248-6473GRONWALD, GERMANY
Leinfelden-Echterdingen , GERMANY DUNS # 34-408-9516
DUNS # 31-316-5297
DUNS # 33-263-1175
DUNS # 49-814-7917
DUNS # 49-814-0813
DUNS # 49-812-6010
MORFELDEN-WALLDORF, GERMANY DUNS # 32-983-2161
DUNS # 49-827-4356
DUNS # 37-218-1941
DUNS # 32-942-9018
ALCOBENDAS, SPAIN
DUNS # 32-943-4372
DUNS # 46-390-7738
This list is limited to the first 25 affiliates.
For the complete list, use D&B's Global Family Linkage product.
BUSINESS REGISTRATION
CORPORATE AND BUSINESS REGISTRATIONS REPORTED BY THE SECRETARY OF STATE OR OTHER OFFICIAL
SOURCE AS OF OCT 10 2003:
The following data is not an official record of the Department of State or the State of New York and Dun &Bradstreet is not an employee or agent thereof.
Registered Name:
Business type:
Corporation type:
Date incorporated:
State of incorporation:
Filing date:
Registration ID:
Duration:
Status:
Status attained:
Where filed:
Registered agent:
SIEMENS CORPORATION
CORPORATION
PROFIT
SEP 27 1988
NEW YORK
SEP 27 1988
1294338
PERPETUAL
NON-SURVIVOR OF
MERGER
APR 30 1991
SECRETARY OF STATE/CORPORATION DIVISION, ALBANY, NY
C T CORPORATION SYSTEM, 1633 BROADWAY, NEW YORK, NY, 100190000
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D&B Comprehensive Report: SIEMENS CORPORA nON
OPERA nONS
10/07/2003
Description:
Employees:
Facilities:
Location:
Branches:
Global Activity:
Import/ Export
Activity:
a-Digit SIC:
Page 18 of 20
Foreign parent is Siemens AG, Munich, Germany. DUNS #31-606-7164, which started in 1847
and operates as a manufacturer of medical equipment, power generation systems, automotive
systems and parts, telecommunications data processing and equipment and various types of
electronic equipment and other activities. Reference is made to that report for background
information on the parent and its management. The parent company has 100+ other
subsidiaries. Parent also makes periodic contributions to the capital of subject and guarantees
issuance of commercial paper.
Siemens Corporation is a U.S. holding and finance company of Siemens AG, and through its
subsidiaries, is engaged as follows: the research and develop, manufacture, market and
service equipment for the generation, distribution, regulation and control of electrical and solar
energy; medical equipment for diagnostic imagery and therapy; electronic equipment for
telecommunication applications; factory automation systems; rail transport systems;
automotive electronics; lighting and precision materials; air traffic control lighting equipment;
postal automation, sorting and recognition systems and electronic components.
In addition, Siemens' subsidiaries import from their ultimate parent, Siemens AG , or its
affiliates, medical, power engineering, communication and electronic components which are
sold or leased in the United States,
Generally, net 30 day terms. Has 5,000+ accounts. Sells to industrial and commercial
concerns. Territory: United States.
Nonseasonal.
70,000 which includes officer(s). 300 employed here.
Leases premises on 43-45 floor of multi story steel building,
Central business section on main street.
This business has multiple branches throughout the United States. Detailed branch information
is available in D&B's linkage or family tree products.
The following section is a global summary and is intended to assist D&Bs non-U.S. customers
when evaluating D&B reports on U.S. companies.
No major countries of export reported.
Based on information in our file, D&B has assigned this company an extended 8 digit SIC.
D&Bs use of 8 digit SICs enables us to be more specific to a company s operations than if we
use the standard 4 digit code.
3612 0104 Mfg distribution transformers, electric
3844 9908 Mfg radiographic x-ray apparatus and tubes
3661 0100 Mfg telephones and telegraph apparatus
3641 0000 Mfg electric lamps
GLOBAL NEWSWORTHY EVENTS.
3357 0000 Mfg nonferrous wiredrawing and insulating
(1003)
ANNOUNCED
OFFICER
CHANGE:
According to published reports, Siemens Corporation has named Jan D Dressel , vice president
and chief information officer, effective November 1, 2003. Dressel who has worked for
Siemens for more than 20 years served as vice president and chief information officer for
Siemens Asia Pacific in Singapore.
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D&B Comprehensive Report: SIEMENS CORPORATION Page 19 of20
Subsidiaries:This business has multiple subsidiaries, detailed information is available in D&B's linkage or
family tree products.
SIC & NAICS
SIC:
Based on information in our file, D&B has
assigned this company an extended 8-digit SIC.
D&B's use of 8-digit SICs enables us to be more
specific to a company s operations than if we
use the standard 4-digit code.
NAICS:
335311
The 4-digit SIC numbers link to the description
on the Occupational Safety & Health
Administration (OSHA) Web site. Links open in a
new browser window.
335311
334517
334210
335110
Power, Distribution, and Specialty
Transformer Manufacturing
Power, Distribution, and Specialty
Transformer Manufacturing
Irradiation Apparatus Manufacturing
Telephone Apparatus Manufacturing
Electric Lamp Bulb and Part
Manufacturing
Other Fabricated Wire Product
Manufacturing332618
36120104
36120112
36410000
33570000
Distribution transformers, electric
Voltage regulators, transmission
and distribution
Radiographic X-ray apparatus and
tubes
Telephones and telephone
apparatus
Electric lamps
Nonferrous wiredrawing and
insulating
38449908
36610100
Jump to:
Overview Scores Payments Public Filings History & Operations
Banking & Finance
BANKING
Mellon Bank, Pittsburgh, PA; Chase Manhattan Bank, 1 Chase Manhattan Plaza , NY; Wachovia
Bank, Winston Salem, NC
KEY BUSINESS RATIOS
D&B has been unable to obtain sufficient financial information from this company to calculate business ratios. Our
check of additional outside sources also found no information available on its financial performance.
To help you in this instance, ratios for other firms in the same industry are provided below to support your analysisof this business.
Based on this number of establishments:
Industry Norms based on 51 establishments
This Business Industry Median Industry Quartile
Profitability
Return on Sales
Return on Net Worth
Short-Term Solvency
Current Ratio
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D&B Comprehensive Report: SIEMENS CORPORATION Page 20 of 20
Quick Ratio
Efficiency
Assets Sales
Sales / Net Working Capital
:Utilization
1.3
44.
70.Total Liabs / Net Worth
UN = Unavailable
FINANCE
06/26/2003
An inside source confirmed general information on the company. Management was unavailable at the time of the
interview. According to the company s website, in fiscal 2002 the consolidated sales of all Siemens companies in
the United States were 20 billion Euros. New orders totaled approximately 21 billion Euros (the euro is quoted at
1.1286 per US dollar as of Sep 15,2003.) Full financial information is prepared on a consolidated basis andprovided through the parent company s Business Information Report,
CUSTOMER SERVICE
If you have questions about this report, please call our Customer Resource Center at 1.800,234.3867 from
anywhere within the U,S. If you are outside the U.S. contact your local D&B office.
*** Additional Decision Support Available ***
Additional D&B products, monitoring services and specialized investigations are available to help you evaluate this
company or its industry. Call Dun & Bradstreet's Customer Resource Center at 1.800,234.3867 from anywhere
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Copyright 2003 Dun & Bradstreet - Provided under contract for the exclusive use of subscriber 086001485L
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FitchRatings Corporate Finance
Diversified
Man ufactu ring/Germany
Credit Analysis
Siemens AG
Ratings
Security Current Previous DateClassRatingRatingChanged
Siemens AG
Foreign Currency
Senior Unsecured Dee 2002
Short-term Dee 2002
Rating Watch...................,......,....................,......,......None
Rating Outlook..-...........,...................................,......Slable
Analysts
Janet Fisher
[phone]
janet. fisher(1j)fitchratings,com
Stuart Reid
[phone]
stuart.reid(1j)fitchratings,com
Profile
Siemens AG (Siemens) is a leading global
engineering company, manufacturing a wide
range of industrial and consumer products,
The group comprises six core businesses, and
II divisions: Information & Communications
(I & C) 31% of group sales in FY02, loss:
EUR494m (35%/EBITA loss: EUR1.4bn in
FYOI); Automation & Control (A & C)
26%/EUR765m (25%/EUR1.2bn); Power
I 6%/EUR 1.7bn (15%/EUR730m);Transportation 15%/loss EUR312m
(II%/Ioss: EUR75m); Medical 9%/ EURlbn
(8.3%/EUR808m); Lighting 5%/ EUR365m
(5%/EUR462m), Siemens also has a
Financing and Real Estate division, whichprovides corporate finance and risk
management products to external and internal
customers.
Key Credit Strengths
Leading global market positions
Product and geographical
diversification
Technological expertise
Low leverage
Key Credit Concerns
Ambitious EBIT margin targets
notably in I & C
Cyclicality of the industries in which
it operates
Ongoing restructuring and related
risks
Negative free cash flow
December 2002
Rating Rationale
The ratings reflect the group s leading market positions in several
sectors, supported by product and geographical diversification which
helps alleviate the adverse impact of industry cyclicality, such as the
current weakness in I & C, Since 1998, when management introduced
the " 1 0 Point Programme " the company has undergone a series of
restructuring initiatives both at group and individual business levels
the most recent of which is "Operation 2003," Its key objectives are an
improvement in profits through cost efficiencies, a focus on the
product portfolio and the disposal of non-core/unprofitable operations
culminating in the deconsolidation of Infineon Technologies
(Infmeon). As a result, the group has stepped-up its focus on asset
management, notably capex and working capital, a key driver of the
group s EVA policy, Fitch Ratings notes that the group faces
significant challenges in meeting these objectives, maintaining
momentum, particularly in a market downturn, and reaching optimal
efficiency across its diverse range of operations, In view of the
cyclical nature of the sectors in which it operates, Siemens has looked
increasingly to the service and renovation & maintenance markets, in
particular in the power division, which should further mitigate the
adverse impact of a cyclical downturn, The group s continuing
business strength in virtually all areas of operation and healthy
leverage and coverage ratios support the Stable Outlook.
Recent Developments
In view of the economic slowdown, particularly the weak operating
conditions in the I & C sector, management has introduced further cost
efficiency programmes targeting savings of EUR3,5bn by FYE03 and
EURlbn by FYE04 in the I & C and Automotive & Drives businesses
respectively, In July 2002 Siemens sold a portfolio of seven
businesses to a private equity house, KKR, for EUR1.7bn, retaining a
19% stake, During 2002 the group deconsolidated Infineon
maintaining a 39,7% ownership interest as at FYE02,
Liquidity and Debt Structure
Net debt at FYE02 was EUR751m (EUR4,Obn at FYE01), the
reduction achieved largely utilising disposal proceeds and trimming
capex, In 2002 the majority, 90% (EUR11.1bn), of total debt was
long-tenD, the balance mainly short-tenD debt, with cash and
equivalents standing at EURl1.6bn (EUR8.6bn), In June 2001
Siemens issued EUR4bn of bonds, using the proceeds to repay short-
tenD liabilities and refinance outstanding debt. As at FYE02
outstanding CP and MTN liabilities totalled EUR94m (EUR214m) and
EUR1.6bn (EUR1.8bn) respectively. Siemens maintains global credit
facilities of EUR4.4bn, which were unused as at FYE02 and FYEOI.
The parent held negligible debt amounting to EURO,3m (EURO,2m).
www,fitchratings.com
Fitch Ratings Corporate Finance
Chart 1: Siemens Organisational Structure
Information &
Communications
Networks (ICN)
Power
Generation (PG)
Information &
Communication
Mobile (ICM)
Power
Transmission
and
Distribution
(PTD)
Siemens Building
Technologies
(SBT)
Background and Strategy
On October 1 , 1847, Werner von Siemens and
Johann Georg Halske founded the company that later
developed into today s Siemens AG, formed in 1966,
In 1866 Siemens made a 'break through' discovery-
the dynamoelectric principle, proving that the
potential applications for electricity were endless.
This led to various innovations, including the group
building the first electric railway and installing
streetlights in Berlin in 1879, Its focus on electrical
engineering alone led it to expand into the light and
heavy electrical engineering sectors, In the 1920s
the group began designing and producing household
appliances, and after World War II, entered the
components, data processing systems, automotive
systems and semiconductor markets, After the war
years, when Siemens, like many other companies
had been preoccupied with meeting military quotas
the group re-focused, returning to its roots in the
1960s,
In 1966 the three principal companies Siemens &
Halske, Siemens-Schukertwerke AG and Siemens-
Reiniger-Werke AG merged to form Siemens AG
(Siemens), In 1969, the group s main businesses
were structured to form six, largely independent
operating groups, since when several further
reorganisations have been effected,
In July 1998 management announced a '10 Point
Programme including the restructuring and
reorganisation of the group, culminating with the
deconsolidation ofInfineon in December 2001.
Transportation
Systems (TS)
Siemens Financial
Services GmbH
(SFS)
Siemens VDO
Automotive (SV)Siemens Real
Estate (SRE)
Management also updated the group existing
top+' programme , first introduced in 1993, the key
element of which was establishing Economic Value
Added! (EVA) as the main performance
measurement tool for all businesses, More recently,
management has introduced "Operation 2003"
designed to achieve the following (see individual
business operations for details):
Restoring profitability at I & C:
programme
Atecs integration
top+' US business initiative
Reduction of central costs
Asset management.
The "PACT"
In December 2002 management re-itrerated it would
be 'sticking' to the targets originally set in Operation
2003, with a few exceptions, Management has
divided operations into four categories as follows:
I EVA: defined as net operating profit after taxes minus the cost of
capital, which represents the minimum return on net operating
assets. According to this concept, a business creates value only
when it recovers at least its cost of capital and delivers EVA
improvements in line with capital market requirements,
Siemens: December 2002
Fitch Ratings Corporate Finance
EBIT Margin (%)Division FY02 FY01 Target (FY03)
Reached! exceeded 2003 targetsPG 16.Medical 13,TS 5,SFS* 23,
Close to targetsA & D 8,4 11.Osram 8.4 10,
Likely to get quite close to targetsPTD 2.6 2.4 5-SBT 3,5 2,4 7-SV 0,8 -0 5-Unable to reach targets in 2003, Hence, management
has extended deadline by one year i,: to 2004,ICN -2 -ICM 0,9 -SBS 1,7 -4,SD 1,5 -IS & S -4.4 2.
11,
18,
"Retum on equity before taxes quoted
10-
11-
18-
11-
10-
Today the group comprises six core business areas, a
number of which consist of several divisions (see
chart I: Siemens organisational chart), Siemens has
a comprehensive global presence, with operations in
over 190 countries, and product portfolio, the
breakdown of which are highlighted below (chart 2
and 3).
Chart 2: Geographical Breakdown of
Group Sales (FYEO2)
Germany
22%
The
Americas
(excl. US)
Asia-Pacific
(excl. China)
Africa!
Middle EasY
CIS
Chart 3: Group Divisional Sales (FYEO2)
Financing &
Real Estate
Osram
The group operates with a de-centralised structure to
enable each division to cater for its specific client
base and to react to market conditions quickly, In
addition, the group is also aware of the need to
maximise cross-selling opportunities and pooling
expertise and knowledge for the long-tenD success
of the business.
The six core group businesses operate on a
decentralised basis with the parent acting as a non-
trading holding company. As at FYEOI , the parent
held minimal debt totalling EURO,3bn (EURO,2bn
at FYE01), equating to 2.4% of total group debt
(2.3%). Marketable securities and liquid assets
totalled EURIO,6bn as at FYE02 (EUR12,9bn (as
stated in the FYEOI accounts)/ EUR5,9bn (as stated
in the FYE02 accounts)), (Figures prepared
according to Gennan Commercial Code (HBG)),
Key Events Table - see Appendix 1.
Business Overview
Information and Communications (I & C)
New Total Op, margin
(EURm)orders sales EBIT
(%)
ICN
FY02 697 647 691
FY01 639 882 861*
FYOO 648 323 686"
11,412 EBIT: 692
FY99 881 909 366
FY98 11,234 929 572
ICM
FY02 11,538 045
FY01 866 299 307*
FYOO 420 910 718*
990 EBIT: 758
FY99 5,415 138 334
FY98 937 881 251
SBS
FY02 256 773 101
FY01 303 034 259"
FYOO 857 882 70*
765 EBIT: 129
FY99 095 973
FY98 365 104 129
EBITA figures quoted
** unaudited figures
The division s primary function is to maintain a
leading market position, alongside names such as
Ericsson, Nokia and Motorola, in the mobile
communications industry, I & C's presence in all
three fundamental technologies, Le, next-generation
Internet, wireless communications and advanced
electronics, allows it to provide a full range of
mobile solutions and related services from voicedata and video communications equipment to
bespoke applications for end-users,
Siemens: December 2002
FitchRatings Corporate Finance
In view of the ongoing difficult market conditions
and in line with the group s '10 Point Programme,'
the division continued to improve working capital
management, reduce EBITA assets across all
business units and cut headcount. During FY02 the
division incurred asset write-downs and restructuring
costs, the bulk comprising severance payments
totalling almost EURl.lbn (c,EUR1.7bn in FY01),
of which c,EUR955m (c,EURl.lbn) was incurred by
ICN, The hefty charges recorded in FY01 were in
part offset by the increase in goodwill from
acquisitions made during the year, most notably the
purchase of Efficient Networks Inc, (goodwill:
EUR1.5bn, to be amortised over five years), The
division comprises three businesses as follows:
Information and Communications Networks
(ICN), the world's leading supplier of Internet
Protocol (IP) communications, number two in
infrastructure technology for Digital Subscriber
Lines (DSL) and, via its US subsidiary
Unisphere networks, is the world's number three
in IP routers,
In July 2001 management implemented its
profitability and cash turnaround programme:
PACT" which focuses on the following three
elements:
1. IP convergence for enterprise and carrIer
networks
ii. Broadband access for carriers and corporate
end usersiii, R & spend concentrated on optical
switching,
In 2001 management set a target of cost savings
of c,EUR2bn by the end of 2002, followed by a
further potential c,EUR1.5bn in 2003, The key
driver to the programme has been cutting 20 500
jobs, up from the original 10 000 targeted in
2001. As at end-September 2002, the division
employed 39 000 staff (against 51 000 a yearearlier), In FYOI the division incurred
severance charges totalling EUR387m, the
payout of which was largely completed in FY02,
In addition in FY02 severance charges
associated with the PACT programme totalling
EUR352m have been incurred, the bulk of
which will be paid in FY03, with further related
costs expected during the period, In line with
the PACT programme and weak demand in the
carrier sector, management continues to address
production capacity and the sale/closure of
plants,
Performance during FY02 was poor, with sales
falling 25% to EUR9 647m, Despite improving
its loss making position, ICN once again
reported a negative EBIT of EUR691m (loss:
EUR861m in FY01), due mainly to severance
charges and asset write-downs totalling
EUR577m (EUR1 603m in FY01),
Furthermore, the business reported a EUR378m
impairment charge at the Access Solutions
division related to Efficient Networks, althoughthis was offset by gains of EUR634m
(EUR120m) comprising proceeds from the sale
of the loss making Unisphere Networks toJuniper Networks Inc. (Juniper) for
EUR376m/EUR208 in cash! Juniper stock, other
asset disposals and a non-recurring item ofEUR60m, The business partnership with
Juniper should strengthen the division
competitive position and product portfolio,
Margin erosion, pricing pressures and weak
market conditions experienced in FYO 1
continued to have a negative impact on earnings
and sales, which fell 25% in FY02, The
Enterprise Networks division reported a profit
following the loss in FYO01 , accompanied by a
stable development in volumes. The outlook for
the sector remains poor, with market conditions
weakening significantly over the period2, as
reflected by the 31 % decline in orders at the
year end, and performance impacted by ongoing
restructuring charges,
Siemens, along with many other telecom
equipment manufacturers continues to
accelerate the scale of restructuring plans in an
attempt to adapt to the severity of demand
conditions, During FY02 the business was
adversely affected by the steep reduction in
capex by telecommunication carriers, most
notably in the carrier switch segment (EWSD),
the strength of which had until recently been
supporting the weakness in Siemens' other fixed
line activities. The weak market conditions
forecast, the 31 % fall in orders during FY02 and
ongoing restructuring charges will continue to
depress profitability for the foreseeable future,
Given the weak outlook and negative 7.
EBIT margin in FY02, management has
extended the deadline to reach the EBIT target
range,
Information and Communications Mobile
(ICM) is a leading infrastructure provider, with
a comprehensive product portfolio providing a
2 Please refer to Fitch's report 'The European Telecom Equipment
Manufacturing Sector - Cutting Through the Haze' published in
August 2002.
Siemens: December 2002
F i tchRa tings Corporate Finance
full range of wireless communications, The
business also has a 50% stake in Fujitsu
Siemens Computers, Operations comprise two
divisions - Solutions & Networks and Devices
(mobile telephones cordless products and
wireless modules) - enabling the business to
react quickly in a rapidly changing environment.
The division reversed the loss of EUR307m in
FYOl , generating a profit of EUR96m in FY02
with results in FYOI adversely affected by the
EUR441m asset write-down, the turnaround
reflecting the benefits of the cost-cutting and
realignment programmes introduced in 2HOl.
The improvement in profitability was largely
driven by the Mobile phone business, which
after reporting a EUR540m loss in FYOl
effected inventory write-downs totalling
EUR213m, generating a profit of EURS2m in
FY02, In addition, the business increased the
number of units sold from 2S,7m in FYOI to
33.3m in FY02.
In contrast to the improvement in the mobile
phone operation, the Networks buiness barely
broke-even, with operating income of EUR5m
FY02 (EUR435m in FYOl), the steep decline in
profits reflecting slower demand in the carrier
business and a highly competive pricing
environment. In view of this weak perfonnance
management has accelerated and expanded its
Top on Air" programme in an effort to mitigate
the effects of the slowdown and reduce costs
and headcount by 4 000, As a result of staff
cuts, the business incurred a EURI05m
severance charge in FY02, roughly half of
which was paid during the year, with the
remainder expected to be paid in FY03. The
programmes implemented should enable the
division to improve its low EBIT margin of
9% in FY02 to meet the 2004 target range.
The 2% and 3% contractions in sales and orders
to EUR2,6bn and EURll.5bn respectively
during the year reflected the challenging market
conditions, Little improvement is expected
going forward in view of the reduced order
book. Of note is the significant drop in volumes
in the Networks business, where demand for
UMTS equipment has not been sufficient tooffset the slowdown in that for GMS
infrastructure equipment. A positive book-to-billmetric (orders versus sales) in 2002
nonetheless comparatively resilient, although
demand conditions for both mobile and fixed
line infrastructure remain depressed and
visibility extremely weak, Management
continues to focus on improving working capital
management, in particular inventory levels and
receivables, to try and strengthen cash flow
generation. Despite efforts to control working
capital movements, the job cuts and planned
extension of customer financing agreements will
serve to depress future cash flow generation.
The sector remains challenging in view of
potential industry consolidation and the differing
strategies adopted by the mobile and
infrastructure operations, The adverse impact of
the difficulties related to this sector may be
offset to an extent by the potential revenues
generated in the medium to long tenn by the IS
UMTS contracts won in the key European
markets, The business will continue to increase
geographical diversification and establish
partnerships to secure fast 3G mobile phone
penetration. Near tenn uncertainty remains for
this segment, however, with growing concerns
over infrastructure roll-out delays carrier
resistance to network milestone targets and
write-downs of 3G licences. In the mobile
network market the business will continue to
focus on the GSM and UMTS markets,
Siemens Business Services (SBS), acting as a
single-source IT solutions and services provider
is focused on five core areas including supply
chain management and electronic commerce,
Going forward, management views the mobile
business as a key growth area and intends
increasing geographical diversification and its
presence in Europe and North America, with
Gennany accounting for less than 50% of sales
in FY02, both organically and through
partnerships (e.g, SBS partnered up with
Microsoft in 2001 to develop and market mobile
phone business solutions).
After reporting a loss ofEUR259m in FYOI the
division generated a profit of EURlOlm in
FY02, its perfonnance in 2001 being adversely
impacted by the EUR242m severance and asset
write-down charge, of which EUR 196m relatedto the redundancy of 2 200 employees;
EUR140m was paid out in FY02, Losses were
further depressed in 2001 as a result of
provisions totalling EUR192m for two long-
tenn business process outsourcing contracts.
Once again, management has extended the
deadline for the group to meet the EBIT margin
targets to 2004; the division is hoping to report
margins in the 5-6% range in,
Whilst sales fell by 4% to EUR5.Sbn in FY02
new orders were stable, and market conditions
are expected to remain difficult in the near-tenn,
Siemens: December 2002
FitchRatings Corporate Finance
In line with actions taken in the ICM division
management has continued to focus on working
capital management and tightened its control
over capital expenditure to improve cash flow
generation,
Automation and Control (A & C)
New Total Opo margin
(EURm)orders sales EBIT
(%)
A&D
FY02 728 635 723
FY01 065 947 981'11,
FYOO 163 943 865'10,
946 EBIT: 872 11.
FY99 168 066 740
FY98 921 873 693 10.
1&5
FY02 120 4,480 198
FY01 881 563 97*
FYOO 401 226 111'
392 EBIT: 167
FY99 143 119 143
FY98 791 164 145
FY02 810 995
FY01 281 520 59*
FYOO 193 786 196*10,
795 EBIT: 175
FY99 440 284
FY98 347 287
5BT
FY02 601 619 195
FY01 549 518 132*2.4*
FYOO 066 932 297*
947 EBIT: 277
FY99 4,407 261 163
FY98
EBITA figures quoted
unaudited figures
This division is the world's largest supplier of
products, systems, solutions and services in the
industrial and building technology sectors, designed
to enable end-users to improve production facilities,
The four main automation end-users are the
manufacturing, processing, building and logistics
sectors, hence the division comprises four businesses
as follows:
Automation and Drives (A & D) is looking
further develop its leading market position, and
is continually enhancing its portfolio through the
design and launch of new products, R & D costs
accounted for 5.9% of sales in FY02 (5,6% in
FYO 1), with the majority of spend in the process
automation and complex system control
software markets, The business is gradually
increasing its product and geographic
diversification entering new regions and
developing new products/applications through
acquisitions and partnerships,
Despite the 26% decline in EBIT to EUR723m
in FY02 and margin squeeze (from II % in
FYOI to 8.4% in FY02), the division remains
one of the key contributors to group earnings,
Of note is the continued strength of the margins
achieved by the Industrial Automation Systems
operations, A & D's largest business unit. The
narrower margin reflected the challenging
market conditions (c,6% market contraction in
FY02), the group s exposure to Germany and
slowing demand in the automotive industry, one
of the main end-users. Severance charges
totalling EUR26m and a EURlOm loss on the
sale of an investment also impacted profitability.
The 3% and 4% fall in sales and orders
respectively during the year once again reflected
the difficult market conditions, particularly in
the US (c,7% fall in FY02) and Europe
(c.4.8%), In Europe, where the effects of the
economic slowdown were felt after the US, the
business suffered less than its peers such as
ABB and Schneider Electric, which have greater
exposure to Europe and hence were more
severely impacted by the downturn in the
region,
Management, despite the weaker margins, is
confident of the division s ability to achieve the
target EBIT margins, Internal cost cutting
measures headcount reductions to date
management have cut staff numbers from
000 at FYEOO to 10 400 at FYE02
restructuring in the US and improved
productivity ratios will be the main drivers of
margin improvement. Future profitability
should benefit ITom the continued focus on the
top+' programme , which concentrates on asset
management cost control and quality,
Geographic diversification notably the
increased presence in China, should help
mitigate the highly cyclical nature of the
business and hence dependence on
macroeconomic factors will be key to future
performance, However, the strength of the Euro
and weaker outlook for the automotive sector
may serve to depress future perfonnance.
Industrial Solutions and Services (I & S) is
one of the world's leading suppliers of electrical
equipment and drives, as well as automation and
IT solutions for a wide range of end-users from
the metals and mining industry to the traffic
control and guidance sectors, Over the past few
years the business has increased its customer
focus, providing a fully integrated end-to-end
service, which has resulted in the growth in
technology and e-business at I&S, Management
intends further diversifying the business
Siemens: December 2002
Fitch Ratings Corporate Finance
presence in key regional areas such as Asia
Europe and North America.
The loss of EURI98m reported by the division
in FY02, after generating a profit of EUR97m in
FYOI , was largely due to the tough market
conditions. The division also incurred a
EURI52m charge relating to severance and
restructuring costs in FY02, Management
reduced the number of employees by 1 600 in
FY02, resulting in a EURI18m charge, of which
EUR35m was paid out during the year. A
further 2 600 workers are to be relocated, with
effect from January 2003, and additional
unprofitable operations were closed, The
employee relocation has involved extensive
negotiations with unions and employee
counsels, but will enable the group to cut costsby 15%, The agreement also included an
additional landmark tariff clause relating to
services not factory workers providing
management with greater flexibility, Charges
related to these actions will continue to depress
profits for the foreseeable future,
Performance was adversely impacted by reduced
investment in the industrial sectors, resulting in
a sharp drop in volumes in both divisions
(Metals Mining and Paper
Technologies/Infrastructure and Marine
Solutions), The steep, 18%, contraction in the
order book was partly due to the more
discriminating process used in selecting new
contracts,
In view of market conditions, restructuring
efforts have been accelerated including
portfolio adjustments, cost cutting and capacity
rationalisation. Management is confident the
division will meet the ambitious EBIT margin
targets set within the given time period.
Following the restructuring, the division is
expected to generate c.EUR4bn of sales and
costs savings of c,EUR500m, with an employee
base of c,000,
Siemens Dematic (SD) was established in 2001
following the merger of Siemens Production and
Logistics Systems (PL) and Mannesmann
Dematic AG (Dematic), PL specialised in
logistics IT while Dematic was a mechanical
systems market leader, SD is now a leading
market player in a highly cyclical sector withlow barriers to entry, having gained a
competitive advantage over its peers through its
ability to provide end-to-end solutions for
logistics automation,
During 2002 management successfully
integrated the Dematic business acquired from
Atecs in 2001 , the impact of a full year of
contributions from this activity reflected in the
19% and 23% growth in sales and orders
respectively, with orders boosted by the winning
of a major, one-off contract from the US Postal
Service, Excluding Dematic, year-on-year sales
and orders fell due to the poor performance of
the Electronic Assembly division which was
loss making as a result of the ongoing weakness
in the telecommunications sector. However, the
significant reduction in contract loss provisions
and other charges in FY02, which totalled
EUR95m in FYOI , and improved project
management in the Materials Handling division
enabled SD to generate a profit in FY02. Whilst
margins remained weak at 1,, the division is
confident it will be able to reach the margin
target range.
Due to weaker market conditions in 200
management implemented the "ST AR
Excellence Programme,Immediate measures
included capacity adjustments and consolidation
ofthe production base, with management hoping
to achieve cost savings of c,EURlbn by 2004,
The business will be refocused, with the
Material Handling Automation operations
comprising the majority of sales (c.75%) by
2006, The Electronic Assembly Automation
Systems and Postal Automation divisions will
comprise the balance with the former
undergoing capacity adjustments and the
relocation of businesses,
Siemens Building Technologies (SBT) is a
world leader in the provision of fire protection
and air conditioning systems and services,
Management is looking to expand existing
activities into new regions and improve the
product portfolio, using e-business as the main
sales channel. Recently the business has
established an Integrated Building Solutions
Division the aim to combine facility
management (FM) and general contracting for
the construction industry, However, due to the
weak profits generated by the FM operations
the deicison has been taken to dispose of the
business in 2003,
Profitability improved in 2002 following margin
erosion, exceptional costs incurred by the US
Fire and Safety operations and rationalisation
3 STAR: Segments, key Technologies, Advanced processes and
life cycle Return.
Siemens: December 2002
FitchRatings Corporate Finance
costs, which served to depress results in 200
Management has targeted profit growth via the
standardisation of production facilities and
acceleration of the implementation of the
restructuring programme, These should help the
business achieve the set EDIT margin objective
aided by the sale of unprofitable operations,
Increases in sales and orders of 12% and 10%
respectively in FY02 reflected the impact of the
acquisitions made during the year in Europe, the
US and Brazil.
Power
New Total Op, margin
(EURm)orders sales EBIT
(%)
FY02 586 446 582 16,
FY01 219 563 634*
FYOO 9,409 757 66-
270 EBIT: 232
FY99 016 931 133
FY98 973 325
PTD
FY02 429 199 109
FY01 887 053 96*
FYOO 566 151 45*1.4-
313 146
FY99 930 251 127
FY98 646 3,475
EBITA figures quoted
unaudited figures
This business provides a wide range of energy
solutions, PG offers environmentally compatible
power generation systems and services, and services
for power plant projects, PTD provides systems for
electricity plants to supply consumers, The
businesses intend increasing their presence in Asia
and Europe, markets that are being de-regulated;
PG's business is largely concentrated in the US,
Going foIWard the profile of the sales mix will
change as US orders decrease from 54% in FY02 to
an estimated 35% in FY03, this fall being mitigated
by the increase in activity in Europe and Asia. The
division comprises two operations as follows:
Power Generation s (PG) main focus is the
fossil fuel power plant market, which accounts
for c.75% of divisional sales, Following the
acquisition of Westinghouse Power in 1998, the
division has established itself as the second
largest global player behind ABB. The business
has expanded its presence in the industrial
turbines and power plants markets the
acquisition of the Demag Delaval Group (part of
Mannesmann Demag Krauss-Maffei AG, one of
five Atecs Mannesmann companies) in 2000
strengthening this strategy, The division has
expanded its hydroelectric and nuclear power
operations through fonning joint ventures,
Management aims to further expand and
develop the business by increasing the
proportion oflong-tenn contracts, forming more
partnerships and continuing to pursue its
acquisition programme, It also intends
increasing the percentage of contributions from
the services and IT solutions segments, which
should help mitigate the slowdown in demand in
the traditional industrial sector as follows:
services and IT solutions from 16% and 2% in
FY02 to 18% and 15% respectively in FY05,
The dramatic rise in profits and margins to
EUR1.6bn (EUR634m in FYOI) and 16,
(7.4%) respectively in FY02 was largely due to
booming power plant construction in the US and
stable pricing conditions, operations benefiting
from orders received in 2001. Despite the
significant increase in profits, the group
recorded charges related to the planned plant
consolidation and capacity reduction
programme. Profits were also boosted
cancellation fees, updated estimates regarding
project completion performance and one-off
disposal gains. As a result of the projected
slowing of demand following the boom
management has plans to optimise production
facilities and reduce capacities in line with
needs, establishing initiatives to drive cost
optimisation of EURlbn by FYE05, of which
EUR900m has been achieved to date,
The 10% rise in sales also reflects the
conversion of orders received in prior years to
revenues, Despite the impressive results
activity slowed during the year, as reflected by
the 13% drop in orders to EURIO.6bn
(EURI2,2bn), due largely to the slowdown in
the US gas turbine market, a key driver of the
recent boom, Despite the anticipated changes in
market conditions, most notably size of the
global fossil fuel market, which is expected to
stabilise at c,67 gigawatts (GW) in 2006 from a
peak of 135GW in 2001, management
confident that the division will achieve the target
10-13% EDIT margin range by FY03,
Power Transmission and Distribution (PTD)
is the number two global player with a 10%
market share (number I: ABB, 16%), and is in a
good position to maximise new opportunities in
an industry currently being de-regulated, The
business has strengthened its focus on the
bundling of services and customer service, and
aims to increase its presence in selected regions
Siemens: December 2002
FitchRatings Corporate Finance
(e,
g,
Asia) to maintain profitability by
consolidating its manufacturing facilities and to
reduce costs,
The division reported a marginal improvement
in profits and margins to EURI09m (EUR96m
in FYOI) and 2,6% (2.4%) in FY02. Results
were supported by the good perfonnance
reported by the medium voltage, high voltage
and automation operations, The negligible rise
in profits was largely due to the EUR54m loss
reported on the sale of the metering business to
KKR, and a EUR34m severance charge relatingto portfolio restructuring and the ongoing
disposal of loss making operations, Sales and
order growth was primarily attached to a large
order booked at the start of the year, the impact
of the weak market conditions being reflected by
the slowdown in sales and order book growth
towards the year end.
Despite the poor market conditions
management is confident of achieving the EBIT
margin objective set. The division
geographical diversity, with c,86% and c.43% of
sales generated outside Germany and Europe
respectively, should help mitigate the adverse
impact of the downturn in the US, Managementhas introduced a more selective order
assessment process and measures to reduce costs
and strengthen the product portfolio to help
improve margins, The division continues to
invest in R & D, develop new products and
focus on asset management.
Transportation
New Total Op, margin
(EURm)orders sales EBIT
(%)
FY02 247 367 247
FY01 647 021 186'
FYOO 722 710 75'
996
FY99 130 970
FY98 527 523 373
FY02 515 623
FY01 702 702 261
FYOO 839 833 89'
839 2.4
FY99 267 267 159
FY98 784 784 147
EBITA figures quoted "unaudited figures
This division s main focus is the development of
new technologies and solutions to meet demands for
greater mobility and to satisfy environmental issues,
The business comprises two key operations:
Transportation Systems (TS) is one of the
world's leading suppliers to the rail industry as
well as developing individual and turnkey
products and solutions for a wide range of end
users, In 1999, when the business was loss-making, management implemented a
restructuring programme to strengthen the
product portfolio, which includes modular
vehicles for light rail and mainline systems and
technology for driverless subways. Another key
objective is to improve profitability,
The unit aims to increase its geographical
diversification, in particular in the rapidly
expanding Asia-Pacific region and the
Americas, This strategy was reflected by the
division s greater presence in the Chinese mass
transit market in 2002, The division continues
to enhance its product portfolio and control costs
via the standardisation of production and
introduction of further cost reduction
programmes, In 2002 the division completed
the integration of Matra Transport International
acquired in 2000, which will operate as Siemens
Transportation Systems France going forward,
Management established its own subsidiary in
Prague in the Czech Republic during the year to
manage the operations acquired in 2001 from
rail vehicle manufacturer CKD Dopravni
Systemy, In 2001 , in line with the restructuring
progranune, the business completed the mergerof subsidiaries Siemens-Duewag-
Schienenfahrzeuge GmbH and Siemens-Krauss
Maffei - Lokomoti ven -GmbH.
The healthy 9% rise in sales during the year was
due to the conversion of the order book into
revenues, including a significant EURI.6bn railcar and maintenance contract in the UK,
Growth in profits and margins was ahead of this
fruits of the restructuring and rationalisation
programme implemented after the net operating
loss reported in FY99, The order backlog
totalled EURI I.2bn at FYE02 (EURllbn at
FYEOl), with new orders totalling EUR5.2bn
(EUR5,6bn), key among which are a EUR404m
contract for a Dutch high-speed rail link and a
14-year, EUR305m full service contract for the
maintenance of high-speed trains in Spain, In
view of the healthy order backlog, which will
help support future performance, and expertise
management is confident the division will meet
the 5-7% EBIT margin target range in FY03,
However, the agency notes that the business
remains exposed to project risk, e.
specification changes, delays and cancellations,
Siemens VDO Automotive (SV) is one of the
leading global suppliers of automotive
electronics and is either the number one or two
Siemens: December 2002
Fitch Ratings Corporate Finance
player in all key product areas. In 2001 the
business merged with VDO to fonn Siemens
VDO Automotive AG, strengthening and further
diversifying the product portfolio. The full
integration of these operations was completed in
2002,
In line with the ongoing review of the portfolio
and aim of improving profitability, management
is targeting EURlbn of cost cuts by FYE04,
The business also intends reducing R & D spend
as a percentage of sales while continuing to
develop new, innovative products, In view of
these actions, the business has increased its
focus on the fuel injection, driver infonnation
sectors, and car body, safety and chassis
electronics, Despite the difficult market
conditions, particularly in the automative sector
the business has managed to improve sales and
strengthen its market position in all key
automotive markets, most notably in Europe
NAFTA countries and Asia-Pacific regions,
The profit reported in FY02, following the loss
in FY01 , was largely due to the benefits of the
top+" programme implemented the previous
year. Results were also boosted by the sale of
the Hydraulik-Ring business and a full year of
contributions from the Atecs, acquired in April
2001. The impact of this purchase is also
reflected in the significant, 49%, growth in both
sales and orders during the year, In FYO 1
results were adversely affected by asset write-
downs totalling EUR90m; in FY02 the division
reported charges for the write-downs of certain
intangible assets,
Going forward, management is looking for the
division to maintain a leading market position in
all the sectors in which it operates, whilst
streamlining the portfolio and restructuring
capacity, R&D will be focused on developing
products requiring a short lead-time from
conception to profit-making status, In view of
the changes and strong position in niche areas
management believes the business will be able
to meet its FY03 EBIT target range,
Medical
New Total Op, margin
(EURm)orders sales EBIT
(%)
FY02 8,425 623 018 13.
FY01 8,444 219*808*11,
FYOO 253 924 463'9.4*
061 441
FY99 165 080 337
FY98 997 706 142
EBITA figures quoted
unaudited figures
The Medical division offers a broad spectrum of
products, solutions and services for integrated health
care, Products range from technologies for accurate
diagnoses and therapies, to services that increase
efficiency in the medical world, The division holds
leading market positions (number one or two) in all
product areas, its key competitors including GE and
Philips,
This division focuses on the provision of integrated
healthcare systems and is continually developing and
launching new products, with roughly two thirds of
the entire product range less than three years old. In
2001 its product portfolio was enhanced following
the acquisition of Shared Medical Services and
Acuson. In November 2002 management signed a
joint venture agreement subject to anti-trust
approval, with Drager Medical (Drager), a leader in
the acute care market, which will further strengthen
the business, To date, over 90% of the division
business is concluded outside Gennany, the US
accounting for a significant proportion,
In 2002 the business reported a strong perfonnance
benefiting from a full year of contributions from
Acuson, with profits growing 26% to EUR1.018bn
driven by the Imaging Systems operations, which is
expected to remain the case in the future, Results
over the past year or so have also been supported by
restructuring and efficiency improvements. Going
forward, market conditions may toughen, primarily
due to the saturated US market, with the business
potentially coming under pressure to provide more
vendor financing to remain competitive, Despite
some uncertainty surrounding market conditions
management is confident the division can continue to
improve upon and exceed the target FY03 margin
range objective.
Lighting: Osram GmbH
New Total Op, margin
(EURm)orders sales EBIT
(%)
FY02 363 363 365
FY01 522 522 462*10,
FYOO 327 326 388*
FY99 660 660 348
FY98 279 279 322
EBITA figures quoted
unaudited figures
The division is a world leader in the lighting market
operating on a global basis, with over 90% of sales
generated outside Germany in FY02, The business
focuses on general lighting solutions, automotive and
display lighting and specialised photo-optic lamps.
Management has focused on specialised products
which, despite higher upfront costs, generate greater
Siemens: December 2002
FitchRatings Corporate Finance
profits. The strategy to develop higher added value
products was reinforced in 2001 when the division
acquired Infineon s stake in a joint venture: Osram
Opto Semiconductors. This acquisition has enabled
the division to enter the rapidly growing light-
emitting diode (LED) market, LEDs being used
increasingly by the automotive and mobile
communications industries where miniaturisation
and longevity are key,
The division has established good market positions
in all regional markets, which it continues to
strengthen, In the future, management intends
increasing its presence in the lower cost emerging
markets, which also offer greater dynamic growth
rates, The business hopes to conduct an increasing
proportion of business electronically, the US
subsidiary acting as a model for this development
with roughly one third of business carried out in this
manner.
In 2002, as difficult trading conditions continued
particularly in the US, the division suffered from
margin erosion especially in the opto-
semiconductors business, with the increased focus
, and sales of, higher value products in the
Automotive Lighting business insufficient to offset
this fall. Despite the weak outlook, management is
confident of achieving the FY03 target margin range,
Financing and Real Estate
New Total PBT margin
(EURm)orders sales PBT
(%)
SFS
FY02 582 582 216 37,
FY01 481 481 158 32,
FYOO 354 354 22,
FY99 277 277 27,
FY98 131 140
SRE
FY02 612 612 229 14.
FY01 542 542 213 13.
FYOO 1,410 420 201 14,
FY99 518 158 108
FY98 084
unaudited figures
This division operates on a global basis, providing
corporate finance and risk management products
including sales & investment financing and treasury
financial services, the main end-users beingpublic international industrial and service
companies, However, the division also provides
services to private customers and internally to the six
divisions, The increased use of electronic business is
the key growth driver of the strategy to expand and
maintain a balanced product portfolio, improve
profitability and risk management.
The increase in PBT reported by Siemens Financial
Services (SFS) in FY02 was mainly due to healthy
investment income in the Equity division, PBT in
FYOI was boosted by the sale of equity stakes in
Siemens Project Ventures in India which
contributed EUR45m, Sales generated by the
business largely comprise operating lease revenues
and do not reflect the majority of the group
activities in capital leases and other financial
interests, Sales growth reflected improved net
interest income and lower provisions reported by the
Equipment and Sales financing business.
The modest rise in sales reported by Siemens Real
Estate (SRE) was largely due to higher real estate
management and lease administration activity
revenues, which served to offset the reduction in
gains from the disposal of real estate compared to
FYOI. Over 75% of sales are derived from rentals
with the balance being from facilities services,
Financial Analysis
Accounting Policies
On 1st October 2001 the group adopted US GAAP;
prior to which it reported according to German
GAAP, As a result, comparability of the group
results for financial year ending 30th September 2001
with historical figures is limited. Key characteristics
of German GAAP include:
Cash flow: as is the case for the majority of non-
UK European GAAP formats, cash flow is
calculated on a derivative basis, i,e, works back
from net income, adds back depreciation and
corrects for changes in long-term reserves
provisions and special tax reserve items,
Revaluation of fixed assets: generally this is not
allowed other than to calculate fair value on
acquisitions diminished by standard
depreciation. Hence, the fixed asset base is
valued conservatively,
Goodwill: amortised over its lifetime or offset
against reserves without impacting the P&L.
Stocks: can be valued on a moving average b!!-sis
at the lower of cost and net realisable value,
Provisions: deducted from the debtor book to
reflect specific levels of bad and doubtful debt
as well as a general provision,
Of note are the following recent changes in
accounting policies under US GAAP:
SFASI41 , Goodwill and intangible assets: as of30 June 2001 the purchase method of
accounting is to be used for all business
Siemens: December 2002
FitchRatings Corporate Finance
combinations initiated or completed after that
date,
SFAS142: requires goodwill and intangible
assets with indefinite lives to be tested for
impairment (at least on an annual basis) and are
no longer amortised, SFAS142 also requires
that intangible assets with definite useful lives
are amortised over their respective useful lives
to their estimated residual values, In line with
this policy Siemens was required to reassess the
lives of intangible assets and determined that
none of its assets have indefinite useful lives.
Siemens has adopted these two standards since the
1st October 2001. As at 30 September 2001
unamortised goodwill totalled c,EUR7bn and
unamortised intangible assets EUR2.8bn, all subject
to the above two accounting policies. Charges
related to these policies amounted to EUR562m and
EUR253m in FY01 and FYOO respectively,
The group uses a component model (i,e. resultsfrom operating businesses are reported
separately from Infineon, Financing & Real
Estate and the effects of eliminations/
reclassifications, etc,), Previously, eliminationsof intra-company transactions and certain
corporate reclassifications were included in
operations, while corporate treasury activities
were included in Financing & Real Estate.
Earnings
(EURm)FYO2 FYO1 FYOO FY99
Sales 016 000 396 067
Operating profit 754 825.4,415,311,
Operating profit
margin (%)
EBITDA 880,4,439,8,472,032.
EBITDA margin (%)10.12,
The drop in sales in FY02 (see chart 4) reflects the
challenging market conditions faced by the group
during the year, in particular in the I & C and A & D
businesses, Sales were supported by the good
performances reported, most notably, by the PG, TS
and Medical divisions, Results were also boosted by
the full year of contributions received from
acquisitions made in 2001 , notably Atecs, SMS
Acuson and Efficient Networks, The 3% contraction
in new orders during the year to EUR83.5bn
(EUR86.1bn in FY01) was largely due to the weak
demand experienced by the PG and TS operations
which reported inflated order books in the prior year
as a result of large one-off contracts, a characteristic
of the industry.
Chart 4: Group Turnover and Operating
Profit Margin FY99 - FYO2
_Tumover -Operating Profit Margin ('!o)
100.
90 ~
::;;
90 ~
10 ~
80,
g; 60.
!!!.
15 40.
20.
FY02 FY01 FYOO FY99
Chart 5: Group Operating Profit and
EBITDA FY99 - FYO2
_Operating Profit -EBITDA
- 4
g; 3t1J
~ 2
11. 1
"Ii! 0
0 -
6 ~
5 !&
4 ~
3 ~t1J
FY02 FY01 FYOO FY99
Profitability and margins improved in FY02 despite
the weak market conditions and charges mentioned
above, Siemens benefiting from the restructuring and
rationalisation programmes introduced throughout
the group, The operating loss recorded in 2001 was
largely due to restructuring charges, asset write-
downs (including redundancy costs and inventory
write-downs) and contract loss accruals. Asset-write
downs and other charges totalled c.EUR1.5bn in
FY02 (c.EUR1.9bn in FY01), the majority of which
were in the I & division (c.EURl.lbn
(EUR1.7bnD. In FY01, the loss making situation
was further inflated by 'other operating expenses
related to the rise in amortisation and impairment of
goodwill costs totalling EUR1.5bn (EUR448m in
FYOO (as per restated US GAAP accountsD, in the
mainly linked to the impairments related to the
acquisition of Efficient Networks Inc and Milltronics
Ltd during the year. Following the introduction of
SF AS 142, Siemens ceased amortising goodwill at
the beginning of 2002, the 'amortisation and
impairment' recorded totalling EUR378m relating to
the Access Solutions division ofICN,
Exceptional items of EUR467m in FY02
(EUR4.460bn in FY01) followed the acquisitions
Siemens: December 2002
FitchRatings Corporate Finance
and disposals made during the period, Of note in
2002 was the sale of Unisphere Networks by ICN
which generated a gain of EUR42 1m,
In 2001 , charges relating to the impainnent of
goodwill associated with the acquisitions during the
year served to offset gains on the transfer of Infineon
(see section titled: Infineon) stock and disposal of
operations, The majority of the charges, which
totalled EUR927m in FY01 , were incurred by the
ICN and A & D divisions,
Cash Flow and Coverages
(EURm)
Net cash generated by
operations
5Net finance (charges)
received
Taxation
Dividends paid
Net operating cash flow
Capex
Acquisitions
Disposals & fixed asset
sales
Cash flow pre-financing 2,651 -623 3,371 .367
Coverages
Net fixed charge cover (x) Surplus Surplus Surplus Surplus
EBITDAI net interest (x) Surplus 277.4 Surplus Surplus
Net interest cover (x) Surplus Surplus Surplus Surplus
Net debt: EBITDA (x) 0,1 0,9 0,1 0,
FY02 FY01 FYOO FY99
130 6 267 5,1383 517,
321 185 975
389 -098991 -710
071 3,644894 -048
787 -3,404
097 5,682
910 -982,704 -599499 2,707
189-731,
690 -1 ,024,
11,492 1 956,
The improvement in net cash generated by
operations was largely due to the improvement in
working capital management, notably control of
receivables (down EUR1.763bn in FY02, and
EUR1.797bn in FY01), The group also managed to
reduced the accounts payable balance by EUR899m
in FY02 following an increase of EUR467m in
FYO1. The greater control of, and focus on, working
capital management led to a positive movement of
EUR3,254bn in FYOI in contrast to the negative
EUR468m movement in FYO1. The growth in net
finance charges reported by the group reflected the
improved year end debt position despite the
reduction in interest income due on advances ITom
customers and advance financing on customer
contracts,
Ongoing pressure due to the economic slowdown
resulted in greater control of capex and a year end
reduction totalling c,EURlbn, if the effects of
Infineon are excluded from the balance in FYO1.
Going forward, management expects capex to be
slightly ahead of depreciation. The pre-financing
cash inflow reflects the impact of the EUR6, 1 bn
funds raised ITom disposals in FY02 (EUR4.5bn in
FYO 1), which included Rexroth, Unisphere and
Hydraulik-Ring, The bulk of cash used for
acquisitions went on the completion of the purchase
of Atecs, resulting in a EUR3.657bn payment during
the year following a EURI bn deposit paid to Robert
Bosch GmbH in 2001.
The notable reduction in tax charged to both the
P&L and cash flow statement was in part due to the
Gennan tax refonn in October 2000 and the
consequent recalculation of the group s deferred tax
balances, As a result, Siemens benefited from a one-
off EUR222m tax reduction in FYOO, The reduction
in its tax charge in FY02 and FYOI reflected the tax-
ITee sales ofInfineon shares,
Capital Structure
771
(EURm)FY02 FY01 FYOO FY99
ST debt 791 960 912 112,
MT/LTdebt 10.555 650 222 989
Gross debt 346 12,610 134 101
Cash &11,595 593 872 397
Equivalents
Net debt (cash)751,017,262,7040
Shareholders 521 832 640 821
funds
Net gearing (%)14.4 30,
Equity: the reduction in total shareholders' funds is
largely due to the decrease in minority interests
during the year ITom EUR4,02bn at FYEOI to
EUR541m at FYE02. Excluding this, shareholders
funds remained roughly stable, the increase in
retained earnings being mitigated by growth in
accumulated other losses.' The group has
authorisation ITorn the shareholders to repurchase up
to 10% of outstanding shares up to 16th July 2003,
Management has stated that it currently has no plans
to exercise this option.
Debt: the fall in gross debt during FY02
corresponded with the decrease in capex during the
year, with acquisition spend remaining roughly in
line with the previous year. However, the healthy
cash balance provides the group with a cushion and a
good level of flexibility to meet short and medium
tenn financial obligations.
Siemens maintains a number of funding resources
and back-up facilities as follows:
Funding Resources:
Commercial Paper (CP) Programmes: totalled
USD3,Obn as at FYE02 (USD1.5bn as at
FYE01) and EUR3,Obn (EUR1.6bn) in the USD
and EUR markets, respectively, with a maturity
Siemens: December 2002
FitchRatings Corporate Finance
of less than 90 days, As at FYE02 the amount
outstanding under all CP programmes was
EUR94m (EUR2 I 4m),
EMTN Programme: during 2002 the group
raised the limits of its EMTN programme to
EUR5bn (EUR3.5bh), At the end of the
fmancial year c.EUR1.6bn (EUR1.8bn) was
outstanding under the EMTN programmes.
Back-up Facilities:
Syndicated loan: as at FYE02 the group had a
USD3,Obn syndicated loan, which matures in
May 2007
Revolving Credit Facility (RCF): aggregate
EURlbn facility, which matures in February
2004, provided by two domestic banks.
RCF: EUR400m facility expiring in July 2006
provided by a domestic bank.
As at FYE02 all these credit facilities remained
unused,
Following the issuance ofthe EUR4.0bn bond in two
equal tranches June 200 I, with maturities of five and
10 years, the group s debt maturity profile is
predominantly long-term (c,90% as at FYE02), In
view of this and the relatively low level of debt
maturing in the next 12 months, re-financing risk is
minimal.
Of note, is the fact that the CP and EMTN
programmes, bonds and the back-up facilities do not
have any specific financial covenants (e.g, interest
cover, leverage) that could trigger early repayment or
additional collateral support, This is true in all
instances except non-payment of interest or
principal.
The improvement in the group s net debt position as
at FYE02 was largely due to the reduction in capex
and increased cash balance, boosted by the proceeds
from the sale of Infineon shares, The numbers also
reflect management's commitment to maintaining a
strong financial profile.
Off Balance Sheet Liabilities: the group had total
future non-cancellable, operating lease payment
obligations totalling EUR2.496bn as at FYE02
(EUR2,6bn as at FYEOI), of which EUR400m falls
due in the next 12 months (EUR460m) , Fitch
remains confident that the group will be able to meet
these repayments in view of the extremely strong
NFCC ratio.
IntineonAs of the 5th December 2001 Siemens
deconsolidated Infineon, significantly reducing the
group s exposure to the highly cyclical and volatile
semi-conductor sector. This move was the result of
a series of actions to reduce the group s stake in the
business from 71% as at the floatation in March
2000 as follows:
April 2001: transfer of c,93,8m Infineon shares
into the domestic pension trust, resulting in a
pre-tax gain ofEUR3.459bn (EUR2.519bn after
tax).
July 200 I: completion of another share offering
of 60m shares, realising a pre-tax gain of
EUR484m, taking Siemens' interest in Infineon
to c,50.4% at FYEOI from c,71% at FYEOO,
IQ02: sale of23,Im Infineon shares resulting in
net proceeds of EUR556m, reducing Siemens
ownership to 47,1 %,
December 200 I: transfer of 200m Infineon
shares (28,9% of its share capital) to an
irrevocable, non-voting trust under a trust
agreement. As at end-2001 the group had a
combined voting interest in Infineon of 34,1 %
of which 13.2% was held by the group
domestic pension trust. Other shareholders
other than Siemens and its domestic pension
trust own 39,7% of the share capital and hence
have a controlling vote,
January 2002: Sale of 40m shares resulting in
net proceeds ofEUR966m,
September 2002: Siemens' ownership andvoting interest was 39,7% and 33,
respectively,
As at FYE02 Siemens' net income included the
group s share of the loss reported by Infineon during
the year ofEUR453m (EUR263m as at FYEOI),
Customer Financing
Siemens, primarily due to its presence in the
telecommunications equipment sector provides
customer financing in line with market demand and
industry practices. The group also provides direct
vendor financing and guarantees for customers' bankloans, As at FYE02, it had approved and
contractually committed EUR2,5bn (EUR2,5bn as at
FYEOI) of financing, the bulk of which related to
ICM and ICN project financing, Of this, EUR1.6bn
(EUR1.7bn) was used either in providing supplier
credits (c,EURl.Ibn (EURl.Obn)) or in the form of
extended guarantees for bank loans. As at FYE02
roughly EUR936m (EUR800m) had been approved
but not yet utilised for customer financing, At the
end of 2002 the group was not in negotiation for any
further customer financing requirements requiring
Siemens: December 2002
Fitch RatiIlgs Corporate Finance
the approval of the Executive Committee (i,e, more
than EUR25m for investment grade customers, more
than EURl2,5m for non-investment grade
customers),
Securitisation of Trade Receivables
Siemens does not consider asset securitisation
together with limited direct sales of receivables t
banks, as a principal funding source, In view ofthis
management has limited outstanding account
receivables under both alternatives to roughly
EURlbn,
In June 2001, the group began selling short-term
trade receivables through a revolving securitisation
programme. As at FYE02 it had sold EUR4.553bn
(EUR1.848bn as at FYEOl) in short-tenD trade
receivables under this facility, In comparison, total
receivables held in the portfolio amounted to
EUR15.479bn (EUR17,954bn) of which
EUR1.712bn (EUR1.988bn) were more than 60 days
delinquent and EUR189m (EUR412m) reported as
net credit losses, Siemens provides letters of credit
to cover up to an additional 17% of losses on trade
receivables, Whilst Fitch notes management's
comments regarding this funding method, the agency
will monitor the programme in view of the
substantial amounts involved,
In addition, the group provides a transaction-specific
letter of credit to SieFunds to cover the business
liquidity risk, management stating it is confident that
the probability of these funds being drawn is
minimal. The liquidity lines provided amounted to
EUR222m as at FYE02 (EUR849m as at FYEOl),
As at FYE02 SieFunds held accounts receivable of
EUR249m (EUR815m),
Pensions
The majority of the group s pension benefits are
organised through a defined pension plan, which
covers all the domestic and the bulk of foreign
employees. As at FYE02 the plan was underfunded
by EUR5.0bn (EUR3.994bn total liability as at
FYEOl), the increase in the shortfall largely due to
the negative return on assets ofEUR1.2bn, driven by
weak equity markets, To narrow the funding gap,
the group made a voluntary cash contribution of
EUR1.8bn in FY02, Further contributions of
EUR800m, comprising EUR400m in cash and the
balance in real estate, were made in October 2002,
Major Debt Issues
EUR2,5bn, 1 % convertible bond due August 2005
EUR2bn, 5% bond due July 2006
USDlbn, 6% bond due February 2008
EUR99lm, 5,5% bond due March 2007
EUR2bn, 5,75% bond due July 2011
Rating Rationale
The ratings reflect Siemens' strong market positionsand product and geographical diversification.
Management's focus on maintaining profitability and
a solid financial profile, as well as on reacting to
market conditions, was recently reinforced by the
implementation of "Operation 2003 " an extension of
the "10 Point Plan" introduced in 1998. Howeverthe group faces a significant challenge i~maintaining the momentum behind these
programmes in view of the weak markets and
diverse range of group businesses, The need to
remain competitive may bring additional pressure, in
particular in the Transportation and Medical
divisions, to provide vendor financing, hence
increasing the group exposure to the
creditworthiness of certain customers, Fitch derives
comfort from the group s low leverage, greater focus
on working capital management and capex levels,
Fitch considers that a rating upgrade is unlikely in
the near tenD in view of the current market
conditions and risks associated with the restructuring
programmes, In particular, the agency will monitor
the group s performance in relation to the objectives
set, notably the EBIT margin range targets for each
of the divisions under "Operation 2003", However
Fitch notes that comfort might be provided from
potential cash inflows from disposals, hence
alleviating the pressure on the group s financial
profile, A rating downgrade may occur if the group
were either to experience significant problems in
implementing the restructuring programmes or
achieving margins within the timescales set or if it
were to lose market position, The weakening of the
group s financial profile, alongside other qualitative
factors, including leverage ratios deteriorating to
1.5x, could trigger a downgrade,
Siemens: December 2002
Fitch Ratings Corporate Finance
Appendix 1
Aug
July
Key Events 1999-2002Date Event
2002
Sept
May
Siemens ownership interest in Infineon was 39,7% and voting interest was 33,3%, including the
voting interest of Infineon shares in the Siemens German Pension trust.
Siemens reduced its voting rights in Infineon to below 25%,
Disposal of seven businesses to the private equity house Kohlberg Kravis Roberts & Co, loP,
(K,R.), The divested activities will be owned by a new holding company: Demag Holding s,r.1
(Luxemburg), in which KKR will have a 81% and Siemens a 19% stake,
Disposal of Unisphere Networks Inc. to Juniper Networks, inc. a Siemens company. In addition to
the cash amount EUR208m of Juniper stock was received,
Vodafone AG exercised its option to Siemens 50% minus two shares in Atecs.
Amount
EUR1,69bn
USD375m
(cash)
EUR3,7bn
(cash)
EUR2,2bn
EUR974m
Net proceeds
EUR839m
EUR565m
July
Apr
EUR484m
(pre-tax gain)Completion of the takeover of Atecs-Mannesmann AG, the automotive and automation technology EUR3,1 bncompany,
Acquisition of Efficient Networks, the global DSL leader, by ICN.
Mar
Sept
Siemens: December 2002
EUR1,6bn
(excl. debt)
EUR3,459
(pre-tax gain)
EUR780m
USD2.1bn
CHF5,8bn
(USD3.5bn)
EUR6,1bn
USD1.4bn
EUR740m
DEM2bn
(EUR1bn)
EUR767mEPCOS AG share offer. The offering consisted of 42,6m shares at EUR31 per share plus an over-
allotment option of 6.4m shares and a capital increase of 3,3m shares.
Established Unisphere Solutions, Inc., to develop converged voice/data and Internet networking
solutions, The business will be part of ICN.
Acquisition of the industry segment of Switzerland's Electrowat! AG, establishing Siemens as aworld leader in the building technologies market.Aug Acquisition of Westinghouse Power Generation from CBS,
NB: Siemens has the option to acquire the remaining stake either at the option of Mannesmann or Siemens from the date of closing through to
30.09,02 or 31.12,03 respectively. Purchase price for both options is between Eur3,7 -8bn. Siemens plans to exercise the option.
.. The group also carried out a 36.5m share stock transaction
Jan Siemens exercised its option to sell its remaining stake in Rexroth AG to Robert Bosch GmbH.
Then business has been accounted for as an asset held for sale, no gain/loss was recorded on
disposal.
Sale of 40 million Infineon 'shares, via the group s Dutch subsidiary Siemens Nederland N.v" at
EUR24.35 per share,
Jan
2001
Sept
Aug
Aug
Siemens' shareholding in Infineon was roughly 50.4%.
Disposal of the automotive supplier Sachs to ZF Friedrichshafen AG,
Osram GmbH acquired all Infineon shares in their joint venture, Osram Opto Semiconductors GmbH
& Co, OHG,
Additional offering of 60m Infineon shares,
SFR2,5bn
(EUR1,72bn)
April
Apr Transfer of c,93,8m Infineon shares into the domestic pension trust.
Jan Completion of the merger of the nuclear power businesses of Siemens and Framatome
2000
Nov
July
Mar
Acquisition of Acuson, a leading ultrasound provider, by the Medical division,
Acquisition of Shared Medical Systems Corporation by the Medical division
Disposal of Cablecom by Swisscom AG, Veba Telecom GmbH and Siemens Schweiz AG to NTL,
Mar
Feb
Listing of Infineon on the NYSE, Siemens retained a 71% stake in the company,
Disposal of the entire fibre-optic cable and optical fibre business, including data cables and
premises, to Corning Incorporated, New York.
1999
Dec Disposal of Siemens Nixdorf Retail and Banking Systems GmbH, to a consortium comprising KKR
and GS Capital Partners III, L,P" the private equity arm of Goldman Sachs & Co.
Disposal of the entire Electromechanical Components Group (EC) to Tyco International.Nav
Oct
Fitch Ratings Corporate Finance
SIEMENS AG (c.
(EURm)
30/09/2002 30/09/2001 30/09/2000 30/09/1999
Intangible Assets 843,771.367,3,430,Land & Buildings 954.816.053.828,Other Fixed Assets 788.987,897.570.Equity In Associates 120,354.10,614.10,465.Loans to Associates
Other Investments 972.0 960.182.769.Other Non-Current Assets 317.354.2,473,776,
NON-CURRENT ASSETS 33,877.39,105.35,586.30,840,
Inventory 13,605.16,827.20,785,132.
Trade Receivables 882.16,115,176.186.Other Debtors 711.0 306-949.578.Due From Group Companies 202.593.
Prepayments & Accrued Income
Other Current Assets
Cash, Deposits & Liquid Invsts 595.593.872.0 397.
CURRENT ASSETS 46,995.54,434.57,782.40,294.
TOTAL ASSETS 80,872.539.368.71,134.
Borrowings & Lease Liabilities 103,637,912,112,Customer Prepayments/Deposits 987.741.113.10,998,Trade Creditors 649.10,376.9,463.868-Fiscal Authorities 319.192.847.1,494.Due to Group Companies 372.997.853.444.Other Creditors 009.271.560.917.Accruals & Deferred Income 206.731,
CURRENT LlABILITES 645.945.33,748,26,834.
Borrowings & Lease Liabilities 243.973.222.989.Other Creditors 476.365.13,739.11,825.Provisions 8,446,7,424.019.665.NON-CURRENT LlABILITES 19,165.17,762.33,980.27,479.
NET ASSETS 062.832.640.821,
CAPITAL AND RESERVES
Minority Interests 541,020-2,412,949.Other Near Equity
TOTAL NEAR EQUITY 541.020.2,412.949.Preference Share Capital
Issued Ordinary Shares 671.665.505.1,487.Share Premium Account 053.901.622.5,481.Revaluaijon Reserve
Other Reserves
Profit & Loss/Revenue Reserves 797.246.101.903.
TOTAL EQUITY/MINORITY INTERESTS 24,062.832.640.16,821.
Debt Schedule
Debt Priority
Lease Liabiliijes
Secured 12.79.106.113.Unsecured 334_531,028.988.Convertible
Subordinated
Debt Source
Bank 613.1,406,1,425,050.Non-bank 10,733.11,204.709.051.Total Debt 346-610.134.101.
Debt Maturity
Less than 1 Year 791.960.912.112.1 To 2 Years
2 To 5 Years 152,328.940.003.More than 5 Years 091.142.282.986.Total Debt 346.12,610,134.101.
Cash & Deposits 595,593.872.0 397,Net Debt / (Cash)751.017.262.704.
Siemens: December 2002
itchRa tings Corporate Finance
SIEMENS AG (c.
(EURm)
30/09/2002 30/09/2001 30/09/2000 30/09/1999
Income Statement
Turnover 84,016,87,000.78,396.67,067.Operating Costs 60,810,895.54,972.0 -48,007.GROSS PROFIT 206.23,105.23,424.19,060.
Selling, General & Admin Costs 274.23,422.354.17,272,TRADING PROFIT 932.317.070.787.
Other Operating Income/(Expense)178.508.345.-476.OPERATING PROFIT 754.825.415.311.
Share of Profits from Associates
Profit on Sale of Tangible FA
Other Investment Income
Other Income
Exceptional Items (Non-Operating)1,403,4,460.342,175.
PROFIT PRE-INTEREST 157.635.757.487.
Interest Receivable 061.964.070.640.Interest Expensed 743.953.940.760.Other Financing Income/(Expense)598.560.
PRE-TAX PROFIT 475.646.289.806.
Taxation 849.781.908,982.
PROFIT AFTER TAX 626.865.381.824.Minority Interests 29,191.Extraordinary Items 520.Preference Dividends
Ordinary Dividends Payable
RETAINED EARNINGS 597.056.901.824.
Cash Flow
EBITDA 880.4,439.8,472.0 032.Working Capital 254.-468.531.829,Other Operating (cash-orientated) Adjustments 004,296.803.685.
NET CASH GENERATED BY OPERATIONS 130.267.138.517.
Net Finance Charges Paid 321.185-975,771,Taxation Paid 389.098,910.982.Dividends Paid (net of Receipts)991.710.704.599.
NET OPERATING CASH FLOW 071.644.499.707.Capital Expenditure 894.048.189.731,PRE-ACO./DISPOSAL CASH FLOW 177.3,404.690.024.Proceeds from Fixed Assets Sales 218.207.352.Business Acquisitions 787.898.169.063.
Business Disposals 097_1,475.140.956.Cash in/(out) flow from Invmts 272.0 262.764.Others 782.
CASH IN/lOUT) FLOW PRE-FINANCING 651.623.371.367.Shares Issued 81,233.000.Other Non-Debt Funding 52.321.Debt Decrease/(Increase) from FX 118,95.61.46.Other Non-Cash Movements 416.186.062.271.
NET DEBT DECREASE/(INCREASE)266.481.442.270.
Opening Net Debt 017.536,704,4,434.Net Debt Increase/(Decrease)266.2,481.3,442,270.Closing Net Debt 751.017.262.704.
Siemens: December 2002
Fitch RatiIlgs Corporate Finance
SIEMENS AG (c.
(EURm)
30/09/2002 30/09/2001 30/09/2000 30/09/1999
RATIO ANALYSIS
Earnings/Profitability
Pre-Tax Profit/Sales (%)
Effective Tax Rate (%)
Pre-Tax Profit/Average Equity (%)
Profit after tax/Average Assets (%)
Coverages
Net Fixed Charges Cover (x)
EBITDAINet Interest (x)
Net Interest Cover (x)
Ordinary Dividend Cover (x)
Cash Flow
Net Debt/EBITDA (x)
Net Debt/Net Cash from Operations (x)
Net Cash from Operations/Net Cash Interest Exp. (x)
Capital Expenditure/Depreciation (x)
Net Cash from Operations/Capital Expenditure (%)
Working Capital Cycle (Industrials)
Average Inventory Held (days)
Average Trade Debtors (days)
Gross Cash Cycle (days)
Average Trade Creditors (days)
Net Cash Cycle (days)
Financial Structure
Secured and Lease DebtITotal Debt (%)
Current DebtITotal Debt (%)
Net DebtlTangible Equity (%)
Additionallnfonnation
Contingent Liabilities
Cash in Restricted Access Account & JVs
Depreciation
Amortisation
Interest Capitalised
Hire/Lease/Rent Costs
Operating Exceptionals in Operating Costs
Staff cost/sales (%)
24.4 29.36.35.
13.24.
114.
18,277.4 15.25.
114.-4,
0.4
16.29.
91.107.4 125.
65.76,82.
156.183.208.
57,56-54.
99.4 126.154.
17.20.31.43.
22.35.
155.598.840.373.
126.775.057,721.
1,489.
27.
32.31,33.33.
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informatioo contained herein is based on infonnalion oblained frnm issuers, olhcr obligors, underwrilcrs, and other sources Fitch believes to be reliablc. Filch docs not audil or vcrify thctruth or accuracy of any such infonnalion. As a result, the infnnnalinn in this repon is provided "as is" wilhout any represcntation or wamnty of any kind. A Fitch rating is an opinion as
10 the creditwnnhincss of a security. Thc rating dnes nnt address the risk of loss duc to risks other than credit risk, unless such risk is specifically mentinned. Filch is not engaged in thenffernrsale of any security. A repon prnviding a FilCh rating is neither a prospectus nor a substi,",e fnrthe infonnalion assembled, vcrified, and presented to invcstors by the issuer and ilS
ageolS in connection with the sale of the securities. Ra'ings may be changed, suspended, or withdrawn at any time for any reason at the solc discretion of Fitch. Fitcb docs not provide
invesunent adviec of any son. Ratings arc nnt a recommendation '0 buy, sell, or hold any sccurity. Ratings do nnt comment on the adequacy of market price, the suilability of any securityfor a panicular investor, or the tax-cxcmpt nature or taxability of paymenlS made in respect 10 any security- Filch receives fccs from issuers, insurers, guaranlors, othcr obligors, andundcrwri'ers for rating sccurities. Such fees gencrally vary from US$I OOO to US$750OOO (or Ihc applicable cuITency equivalent) per issuc_ln ccnain cases, Fi'ch will rate all or a numberof issues issued by a panicular issucr, or insured or guaranlecd by a panieular insurer or guarantor, for a single annual fee. Such fces are expecled to vary from US$JO OOO toUS$ I ,500 000 (or thc applicable cuITcncy equivalent). The assignmcnt, publication, or dissemination ora rating by Fitch shall not constitutc a consent by Fitch to usc its name as an expen
in conncctinn with any registration statement filed under 'he Unitcd States securities laws, thc Financial Services Acl of 1986 of Great Britain, or the securities iaws of any panicularjurisdiction. Due to the relative emciency of eleelronic publishing and distribution, Fitch research may bc available 10 electronic subscribcrs up to three days earlier than 10 priot
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Fitch Assigns 'A+'/'F1' Ratings To Siemens RatinQs
13 Dec 20026:38 AM (EST)
Fitch Ratings-London-December 13, 2002: Fitch Ratings, the international agency, has today assigned a Senior L
rating of A+' and a Short-term rating of F1' to Siemens AG (Siemens), a leading global engineering and technolo~
manufacturing a wide range of industrial and consumer products, The Outlook is Stable.
The ratings reflect the group s leading market positions in several sectors, supported by product and geographical
which is helping to alleviate the adverse impact of the downturn, particularly in the Information & Communications
and industry cyclicality.
The company has undergone several restructuring initiatives since the introduction of the "10 Point Programme" ir
most recent of which is "Operation 2003," In December 2002 management re-iterated its commitment to the objec
in this programme, in particular the EBIT margin targets, while acknowledging the ongoing difficult market conditio
challenge entailed in generating maximum efficiency from the diverse range of operations, The main focus of thes
is to improve profitability and strengthen and streamline the product portfolio, The strategy culminated with the de(
Infineon Technologies (Infineon) in December 2001 following a series of actions to reduce the group s stake in the
July 2002 this strategy was reinforced by the disposal of a portfolio of seven businesses to private equity house K,
& Roberts, for EUR1,7 billion with the group retaining a 19% stake.
Management's willingness and ability to react to the changing market environment is reflected by the introduction,
efficiency programmes targeting savings of EUR3,5bn by FYE03 and EUR1 bn by FYE04 in the I&C and Automoti'
businesses respectively, The group has also implemented an initiative to increase the its focus on asset managen
particular capital expenditure and working capital. These are key drivers of Siemens' Economic Value Added (EVJ
was first introduced in 1993. The group s continuing market leadership in virtually all sectors and strong leverage (
ratios support the Stable Outlook.
Net debt at FYE02 was EUR751 m compared to EUR4.0bn at FYE01. The reduction was largely due to disposal p
tighter capex and working capital controls, As a result, creditor ratios have remained consistent with the rating cat!
leverage ratios maintained at a low level of 1x at FYE02 (O,9x at FYE01), In June 2001 the group issued bonds
EUR4bn, the proceeds from which were used to repay short-term liabilities and refinance outstanding debt in the (
following year.
The agency considers that a rating upgrade is unlikely in the near future, in view of current market conditions, risk:with the restructuring programmes currently in place and ambitious EBIT margin targets, most notably in the I&C
agency gains some comfort from management's ability to reduce capex, improve working capital movements and
address changes in the market. A downgrade may be considered in the event that the group were to experience s
problems in carrying out the restructuring programmes or in achieving target margins within the time scales set. TI
monitor the group s progress in relation to this , and will consider it alongside other factors such as a weaker finaneincluding leverage ratios deteriorating to c,, and qualitative factors such as the loss of market positions,
This rating was initiated by Fitch as a service to users of its ratings, A full rating report is available at the Fitch ratir
ContactJanet Fisher, London Tel:[phone], Stuart Reid, London, Tel:[phone]
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