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Client: Foley & Lardner
Market Segment: Industrial
Services Provided: Claims Analysis & Dispute Resolution
Location: Clinton County, Illinois
Project Value: $40,000,000
Clinton Power Station (CPS), located near the central Illinois town of Clinton, is a single-unit nuclear generating facility capable of producing 950 net megawatts. The CPS reactor is a boiling water reactor design by General Electric. Clinton Power Station has been producing electricity for customers since 1987.
The Clinton Power Station was built on one of the world's largest power plant sites, encompassing 14,300 acres, including the 5,000-acre Clinton Lake. The lake provides cooling water for the plant and offers the public a popular recreational area. About 10,000 acres of the CPS site have been leased to the Illinois Department of Natural Resources and have been developed as the Clinton Lake State Recreation Area. In December 1999, Clinton Power Station was sold by Illinois Power to AmerGen, a joint venture of PECO (now Exelon) and British Energy, of Edinburgh, Scotland.
While Illinois Power Company operated the nuclear power electrical generation plant, a potential degraded voltage problem at the plant required modification of its design to maintain its operating license from the Nuclear Regulatory Commission. Illinois Power Company solicited proposals to resolve its degraded voltage problem on a turnkey basis within nine months.
The successful contractor estimated that the complete design and renovation work would cost approximately $15 million, and take nine months to complete. Work proceeded on a time and materials basis. After one year and nine months, actual costs exceeded $40 million. Further, only a temporary solution had been implemented.
Foley & Lardner retained Trauner Consulting Services, Inc., on behalf of Illinois Power Company, to assist in the resolution of disputes that arose concerning the work. Trauner reviewed project records, project schedules, project costs, and deposition transcripts to determine the validity of the contractor's claim and, if applicable, the amount of liability. Trauner identified and quantified the costs associated with instances of mismanagement, over billing, inefficiency, and unnecessary work. Trauner's findings led to a favorable settlement for Illinois Power.
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