Guidelines for Cost Estimate Template
Date:
December 11, 2015
Version:
1
Public Information
Table of Contents
Overview ...................................................................................................................................................... 1
Protecting / Unprotecting the Spreadsheet ............................................................................................................. 1
Entry and Formula Fields ........................................................................................................................................ 1
Sheet Notes ............................................................................................................................................................ 1
Level of Breakdown ................................................................................................................................................ 1
Assumptions for Line Items ..................................................................................................................................... 1
Quantity, Sizes, Types ............................................................................................................................................ 2
Contract .................................................................................................................................................................. 2
Supply and Install.................................................................................................................................................... 2
Multiple Transmission Lines, Substations or Telecom Facilities ............................................................................. 2
Printing Size ............................................................................................................................................................ 2
Benchmarking Database ......................................................................................................................................... 2
Summary (Tab 1) .................................................................................................................................................... 3
Owner’s Costs (Summary Tab 1) ............................................................................................................................ 3
Salvage and Other Costs (Summary Tab 1) ........................................................................................................... 3
Transmission Lines (Tabs 2 OH and UG) ............................................................................................................... 3
Substations (Tab 3)................................................................................................................................................. 3
Telecommunication (Tab 4) .................................................................................................................................... 3
Distributed Costs (Tab 5) ........................................................................................................................................ 4
Contingency / Risk Register Summary (Tab 6) ....................................................................................................... 4
Escalation (Tab 7) ................................................................................................................................................... 4
AESO Contact Information ...................................................................................................................................... 5
Tab 1 – Summary ........................................................................................................................................ 6
Tab 2 – Transmission Line Costs (OH) and (UG) ..................................................................................... 7
Tab 3 – Substations .................................................................................................................................... 8
Tab 4 – Telecommunications ..................................................................................................................... 9
Tab 5 – Distributed Labour....................................................................................................................... 10
Tab 6 – Contingency / Risk Register ....................................................................................................... 11
Tab 7 – Escalation ..................................................................................................................................... 12
Definitions .................................................................................................................................................. 13
Overview
This document is provided as a guideline for users of the revised Cost Estimate Template effective
January 5, 2015. This guideline provides instruction for cost estimating requirements throughout all
stages of a transmission project.
The new Cost Estimate Template contains 7 tabs; each detailed below.
Tab 1
Estimate Summary
Tab 2
Transmission Lines (OH & UG)
Tab 3
Substations
Tab 4
Telecommunications
Tab 5
Distributed Labour
Tab 6
Contingency / Risk Register
Tab 7
Escalation
Protecting / Unprotecting the Spreadsheet
Various cells have been locked to preserve the integrity of the formulas. The password is 'aeso' - all
lowercase.
Each sheet within the spreadsheet has been individually protected. To unprotect one of the sheets, and if
you are using Excel 2010, go to the Review tab on the ribbon and click Unprotect Sheet and type in the
password. For other versions of Excel, perform a quick Internet search for 'excel worksheet protection'.
Entry and Formula Fields
Light grey cells indicate where the user enters cost estimate information; white cells indicate formula
fields.
Sheet Notes
On every cost estimate tab, italicized notes are provided in the right-most column indicating what
information should be included in each cost category
Level of Breakdown
If estimate details cannot be provided for a cost category, summarize the total costs into the main
category for that item.
For example, in preparing a cost estimate where transmission line foundation types are unknown, in the
main Foundations category, the user would provide a total estimate and note “to be determined” in the
Assumptions column. This applies for all cost categories absent of cost details. Please note this will
require unprotecting the worksheet as per the above-noted instructions.
Assumptions for Line Items
The assumptions column located on the right side of each tab / sheet lists all assumptions made in
determining the line item estimate. Examples include:
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Environmental (e.g. design loading criteria, soil, terrain, winter/summer construction, brushing)
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ROW considerations
Project schedule
Outage constraints
Labour and material market conditions
Standards
Studies
Source of costs listed in the estimate
Market fluctuations (e.g. steel prices, foreign exchange, etc.)
Hearing costs (if applicable)
Quantity, Sizes, Types
On every cost estimate tab, a column is provided for detailing quantities, sizes and types of materials or
services or other key characteristics.
Contract
On every cost estimate tab, a “Contract” column is provided for detailing external contractor costs.
For example, if the total cost estimate for “Line–Detailed Engineering” is $5.0 M and $3.0 M is allocated to
the Market Participant and $2.0 M is allocated to the contractor; you would note $3,000,000 in the
“System” and / or “Customer” column and $2,000,000 in the “Contract” column.
Supply and Install
On every cost estimate tab, additional rows are provided for Supply and Install. These cells allow users to
provide summarized supply and install cost estimates.
For example, if a contractor provided materials and services for installation of “screw piles” foundations
and would not provide a cost breakdown, the “Supply and Install” categories can be used.
Multiple Transmission Lines, Substations or Telecom Facilities
For projects requiring more than 3 transmission lines, more than 3 substations or more than 2 telecom
facilities; the cost estimate spreadsheet will have to be modified to include these additional sections and
formulas will need to be revised.
Users can ask their AESO Project Manager to provide a project-specific, revised Cost Estimate Template.
Printing Size
The Cost Estimate Template is formatted to print on 11” x 17” paper and will not easily translate to a
smaller size.
Benchmarking Database
The AESO has developed a suite of transmission cost benchmarking database used to assist in cost
estimating. More information regarding Cost Benchmarking is available on the AESO website. All cost
estimates received by the AESO are input into the database. The project name and numbers are not
published.
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Summary (Tab 1)
Summary-Tab 1 is the primary tab compiling costs directly recorded on this sheet, along with costs linked
from remaining tabs.
The header section includes identifying fields such as Project Name and Number, Prepared By, Estimate
Basis, Low and High estimate ranges, Date of Estimate and Base Year. Note that the AACE Class cell is
not expected to be filled in at this time.
For details on header section content, users should consult with their AESO Project Manager or review
the AESO Direction Letter.
The costs for Transmission Line, Substation, Telecommunication, and Distributed, including Contingency
and Escalation, are pulled from secondary tabs.
Owner’s Costs (Summary Tab 1)
Owner’s costs include costs relating to pre-proposal to provide service (PPS), PPS, Facility Applications,
and Land. There is a line for “Other” costs, which users can also use for land costs that should not be
publically disclosed. These costs, along with any assumptions, should be input directly onto the Summary
Tab-1 sheet.
Salvage and Other Costs (Summary Tab 1)
These costs are to be entered directly into the Summary Tab 1 sheet.
See Estimate Summary – Tab 1 screenshot.
Transmission Lines (Tabs 2 OH and UG)
Transmission Line cost estimating is divided into two separate tabs; “Overhead” and “Underground”, and
is consolidated on the Summary Tab-1. The Cost Estimate Template allows up to three individual
transmission lines. Users requiring four or more transmission lines can add the additional lines
themselves or ask their AESO Project Manager to provide a project-specific revised Cost Estimate
Template. All formulas should be revised accordingly.
See Transmission Line – Tab 2 screenshots.
Substations (Tab 3)
Users provide substation cost estimates for materials, labour and supply and install, which are
summarized on Summary-Tab 1.
The Cost Estimate Template allows up to three substations. Users requiring four or more substation
estimates can add the additional substations themselves or can ask their AESO Project Manager to
provide a project-specific revised Cost Estimate Template. All formulas should be revised accordingly.
See Substation – Tab 3 screenshot.
Telecommunication (Tab 4)
Users provide communication site costs for materials, labour and supply and install, which are
summarized on Summary-Tab 1.
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Users complete one section for each site. “Telecom-Tab 4” allows for two sites. Users requiring three or
more sites can add the Telecom sites themselves or can ask their AESO Project Manager to provide a
project-specific revised Cost Estimate template. All formulas should be revised accordingly.
See Telecom – Tab 4 screenshot.
Distributed Costs (Tab 5)
Users are to include resource type under each cost category; along with the estimated number of Full
Time Equivalents (FTEs) and estimated man-days.
Contingency / Risk Register Summary (Tab 6)
Users need to complete the risk register and calculate contingency for each project.
Risk Identification: Identifies project risks complete with description including potential impact to the
project.
Impact: Provides a drop-down menu including “Low”, “Medium” or “High” classifications.
Probability: Provides a drop-down menu, with a range of choices between 10-90%, indicating probability
assessment the risk will materialize.
Cost: The cost impact field is an open cell allowing the user to note the estimated cost associated with
the potential risk occurring.
Contingency: The Contingency field is formula cell calculating the probability of the risk occurring,
multiplied by the cost impact.
For example, if the cost impact is $1.0M and the probability of its occurrence is 50%; then the
contingency is $500K.
Action: The action field provides a drop-down menu, with the following risk-mitigation strategy choices:
Accept, Mitigation, Eliminate, or Transfer.
Response: If the Market Participant intends to mitigate, eliminate or transfer the risk, they should provide
notes in the Response column advising how they plan to do so. If they choose to accept the risk, notes
should be provided supporting this decision.
Known / Unknown Risk: The first column of the Risk Register Summary separates risks into two
categories, “known” and “unknown”. Typically, users should populate the “known” risks section and use
the accuracy range for “unknown” risks. If the Market Participant feels it necessary to identify additional
contingency for “unknown” risks in addition to the accuracy range, the user may utilize the “unknown”
risks line on the Contingency / Risk Register, along with reasoning.
Escalation (Tab 7)
The escalation tab calculates cost estimates anticipated at the in-service date of the project.
For example, cost estimates provided in 2014 dollars for an ISD of 2016 escalates the cost estimates by
an index % for 2 years, providing increased cost estimates for the in-service date.
The Escalation tab provides users with the flexibility to assign varying escalation percentages per line
item.
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AESO Contact Information
If you have any questions about these Guidelines or the new Cost Estimate Template, please contact the
AESO by email at customer.connections@aeso.ca. or leave a message on our phone line at (403) 5392793 (checked daily) or contact your AESO Project Manager.
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Tab 1 – Summary
Fill in these sections.
The numbers in this worksheet are provided as an
example only.
 Enter Transmission Line costs on Tab 2 (OH) and/or (UG)
Light-grey shaded areas indicate direct-entry cells.
 Enter Substation Facilities costs on Tab 3
ASSUMPTIONS:
Use this area to record assumptions used to calculate
line item costs. If you do not wish to use this column,
add a note referring to your attached Basis of Estimate
(BOE) document.
 Enter Telecommunications costs on Tab 4
CONFIDENTIAL LAND COSTS:
MARKET PARTICIPANT or AESO may consolidate land
costs into Other category under Owners Costs if
necessary.
SUPPLY & INSTALL:
Refers to materials and equipment that are all-inclusive
installed costs and are not able to be apportioned
between materials and labour. In situations where an
item must be reallocated to Supply & Install from
Materials or Labour, clarification should be noted.
 Enter Management costs on Tab 5 – Distributed Labour
 Enter Contingency on Tab 6 and Escalation on Tab 7
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Tab 2 – Transmission Line Costs (OH) and (UG)
There are two separate Transmission Line tabs, one for Overhead lines (OH) and
the other for Underground lines (UG).
There are sections included for up to three transmission lines, OH & UH – scroll
down to see them. If you have three or more lines either modify the sheet or
contact your AESO Project Manager for a project-specific, revised Cost Estimate
template.
Both sheets Transmission sheets are consolidated under Transmission in Tab 1.
Insert additional rows if additional items are needed.
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Tab 3 – Substations
There are sections included for up to three substations (scroll down to view).
If you have three or more lines, either add them or contact your AESO Project
Manager for a project-specific, revised Cost Estimate.
“Other Major Equipment” lines are placeholders for users to note additional
project major equipment not provided for in the spreadsheet template. Replace
the words “Other Major Equipment” with the type of equipment included.
Insert additional rows if additional items are needed.
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Tab 4 – Telecommunications
There are sections included for up to two telecommunications sites (scroll
down to view). If you have 2 or more Telecom sites, either add them or contact
your AESO Project Manager for a project-specific, revised Cost Estimate
Insert additional rows if additional items are needed.
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Tab 5 – Distributed Labour
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Tab 6 – Contingency / Risk Register
If Known risks are not understood due to the early stages of a project, identify as Unknown Risks.
Unknown Risk will also be used for the Approved Cost Estimate (ACE) since the estimate will not have
accuracy ranges.
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Tab 7 – Escalation
If individual item rates are not available, input the same
percentage rate in each line.
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Definitions
“Contingency” Identified risks, potential mitigation strategies and measures, possible delays and
estimated length of delays.
“Escalation” The increase of costs and prices over time - specifically due to inflation. Escalation should
be calculated and forecast to the planned in-service date.
“E&S” Engineering and Supervision Costs; also known as “Project Overhead”.
“Land – Damage Claims” A payment(s) to landowners/occupants by operators for damage caused by an
operator outside the area it has been granted, or for damage to livestock or personal property caused by
the operator. (Courtesy of Surface Rights Board website, 2014)
“Land Rights - Easements” includes payments for the following:
•
Surface lease / Right of Entry Order / Compensation payment
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Entry fee
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Early access and survey routing consent
“Other Major Equipment” A placeholder for any other major equipment not itemized, e.g. synchronized
condenser.
“Owner’s Costs” Costs incurred by the Market Participant for the following: preparing the NID and PPS
cost estimates; labour related to any engineering required to prepare the cost estimate: labour related to
preparing the PPS Proposal; preparing Facilities Application(s) (includes AUC 007 requirements, i.e. PIP);
regulatory proceeding associated with Facilities Application(s); and Land costs.
“P&C” Protection and Controls.
“Procurement” The contracting process used to secure contractors/subcontractors to provide materials,
labour or turn-key solutions for a project.
“ROW” Right Of Way.
“Supply and Install” Materials and equipment that are all-inclusive installed costs and are not able to be
apportioned between materials and labour costs. In situations where an item had to be reallocated to
Supply and Install from a materials or labour line, clarification should be noted.
“SVS” means Static Var System, which covers a wide range of reactive support, including: SVC,
STATCOM, TSC, TSR, and others.
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