I've been thinking through how to approach power plant site development on a scale-able model and have outlined some thoughts below.  Please review - - - we can have a group discussion next week to plan the sequence of activities and resource requirments.

Concept

Develop large and small scale propane or gas fired power plant sites along ETS pipeline corridors and EOTT terminals.  

Rationale

Position ETS to capture growth in pipeline transportation services.

Position ETS or EOTT to capture natural gas liquids consumption for power generation.  

Establish ETS as a major merchant of sites suitable for the development of natural gas and propane fired power plants.

Position ETS to capture the role of power plant operator.

Position ETS to capture attractive equity returns on merchant power plant sites.

Approach

Identify legal and regulatory barriers to entry in states where ETS operates pipelines and EOTT operates terminals.  
Key success factors include-
- Open market state regulatory policies
- Competitive and open access to transmission and distribution networks
- Availability of air quality permits
- Ability to obtain building permits
- Ability to obtain operating permits and licenses

Identify commercial barriers to entry.
 Key success factors include-
- Demand for new generating capacity additions (growth in power demand, capacity replacements)
- Presences of competitors
	- New entrants
	- Recalcitrant incumbents

Develop quantitative  models to determine intrinsic merchant value of prospective sites that can be dynamically updated.
- Options on spark spreads
- Ancilliary services

Determine the cost associated with site development activities
- Site control
- Gas transportation costs from regional hubs
- Power transmission costs to regional hubs
- Network reinforcement costs
- Cost/benefit of plant cooling media
	- Once-through water cooled
	- Hybrid cooling
	- Air cooling
- Connection costs to critical interfaces
	- Pipeline/fuel terminals
	- Grid
	- Water
	- Sewage
	- Transportation (for construction crews, materials)
- Cost associated with local planning gain
- Cost of technical concept development
- Cost of environmental analysis
- Cost to determine socio-economic benefits
- Cost to obtain air quality permits
- Cost to obtain building permits
- Cost to obtain operating licenses and permits
- Cost to obtain ETS-provided operating agreements

Determine ways + means of monetising site values
- Sales to the trade
- Sales to private equity funds
- Hold as a B-O-O option for ETS