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Mismanagement of Engineering and Construction for Power Plant

Accumyn assisted a state regulatory agency representing ratepayers in a proceeding to address the rising cost of construction for an electricity generating facility. The matter involved management of engineering and construction for a 630 megawatt Integrated Gasification Combined Cycle (IGCC) power plant, the first of its kind of its size. The owner had received approval to construct the facility in 2007 based on an estimated project cost of $1.98 billion. The estimated cost soon increased to $2.53 billion for which a second approval was granted in 2009. By early 2011, the estimated cost had increased again to $2.88 billion.

Accumyn’s experts provided testimony on gross mismanagement based on a review of records illustrating the utilities performance in its execution of the project. Aided by a team of engineers, economists and accountants, Accumyn conducted a review of the project’s progress and cost reports, correspondence, and hearing testimony. To enhance research efficiency, Accumyn’s e-discovery specialist converted almost 8,000 separate documents to searchable format.   Project management and financial specialists addressed mismanagement of the project’s FEED Study; the delivery method; the contracting approach; the project controls program; the reasonableness and prudency of management’s engineering and construction of the project’s grey water disposal process; and budget manipulation. Testimony addressed financial reporting, transparency and management’s adherence to industry standards and practices for project and construction management.