Document RGvk90y5jyq05VxQ3L4kQEwz

Minnkota Power Cooperative, Inc Milton R Young Station Unt 1 and 2 A14559 013 Rev 2 May 22, 2024 Table 3-1 -- Example MRY Unit 2 Cost Underestimations Summary Parameter EPA Hypothetical 800 MW EPA Assumed MRY U2 Costs 447 MW Est. Actual MRY U2 Costs 447 MW Current Hg Compliance (4.0 IIDTTBtu) Cost 1 S2.6 M $0.3 M $1.9 M Current Hg Removed 1,295 lb 77 lb 149 lb Current C/E (S per lb Hg Removed) 2,004 3,845 12,754 Hg Control System Annualized Capital Cost BPAC Cost @ 5 lb/MMacf M-Prove Cost Not included S7.5 M Not included Not included $0.6 M $0.2 M $472k 2 $1 3 M 3 $1.6 M 4 Future Hg Compliance (@ 5 lb/MMacf) Cost S7.5 M $0.8 M $3.4 M Future Hg Removed (EPA Assumed @ 1.2 lb/TBtu) Future C/E ($ per lb Hg Removed) 1,447 lb 5 5,083 110 lb 7,040 216 lb 15,678 Incremental C/E (S per lb Hg Removed) 28,176 14,360 22,217 Note 1 -- EPA example only based on sorbent. EPA assumed current compliance cost includes sorbent and chemical fuel additive. Est. actual apst based on 2023 MRY Unit 2 usage rate & pricing for both sorbent and chemical additive. Note 2 -- Cost of $5.0 million dollars from S&L project database was annualized using a capital recovery factor calculated based on annual interest rate of 7% (pre-tax marginal rate of return on private investment, EPA Cost Manual Section 5) and 20 year evaluation period (EPA Cost Manual Section 6) Note 3 -- Cost based on EPA assumed rate but using 2023 MRY BPAC pricing. Note 4 -- Cost based on 2023 MRY Unit 2 u sage rate & pricing instead of assuming same as sorbent costs. Note 5 -- Based on calculated value for EPA example inlet Hg of 1,542 lb s (current Hg coal content)-- 95 lbs (future emitted amount). However, the EPA example identifies 1,468 lb for the increme ntal cost effectiveness calculation. Mercury Testing Results for the MATS Residual Risk and Technology Review Sierra Club FOIA 2025-EPA-04883 14 Si --gr -vt & Lulu/ay ED_018388_00000327-00028 SC_EVERSPLIT0006337