Evaluation of electric utility generating units for life extension

The term life extension is now a buzz word for electric utilities. There are good reasons for this that are closely related to the current conditions in the power industry. These factors include the high cost of constructing new generating facilities, the difficulties in licensing new power generating sites, and the extended schedules of new large power generation projects. Life extension of existing power generating units has two characteristics that match current needs: it is applied to generally smaller, older units that might otherwise be placed into standby status, and the capital investment to upgrade units to full usable status is generally far less than new installations. According to the authors, smaller projects make sense, particularly when the costs of financing large, long-schedule projects are no longer permitted to be introduced into the rate base before the plant goes into service. The authors discuss how the planning process must consider all these factors to provide the most economical power for a utility's customers.