Mountain Peak
Delivering reliable, cost-predictable power when traditional construction models fell short
Problem
The members of the United Power Electric Cooperative had contracts with generation that were expiring in 2025. United Power was looking to modernize its portfolio and provide cost predictability for their members. In developing the project many of the Engineering, Procurement and Construction (EPC) providers declined to bid on the project due to the size of the small size of the project and other more profitable construction projects across the industry.
Solution
The Mountain Peak Power plant was developed by Kindle to address the specific needs of United Power. Mountain Peak Power had signed a long-term contract with its customer, but was unable to engage a traditional Engineering, Procurement and Construction (EPC) provider due to small size of project and scarcity in the industry. Without an EPC solution, there was no way to build the facility.
Kindle challenged its Engineering and Construction teams to put together a plan to:
Manage the construction of the Mountain Peak Power plant via a small number of vendor contracts and utilizing Kindle’s existing EPC Organization
Maintain the original economics of the project
Achieve COD in line with the long-term customer contract
The Kindle team then identified multiple Tier 2 contractors who could provide the services of an EPC provider, but under an EPC Management model overseen by Kindle (General Contractor Model), and negotiated contracts with the General Contractor.
The Engineering and Construction team then:
Developed a schedule to demonstrate how all the vendors and equipment will be available to achieve completion by June 01, 2025
Convinced equity sponsors to commit capital to move forward with financing and construction based on Kindle’s General Contractor plan
Purchased key equipment
Provided written materials, held calls with Lenders to describe Kindle’s General Contractor plans and how risk will be mitigated during construction
Impact
Power Supply
Mountain Peak
Mountain Peak Power commenced construction in August of 2024 utilizing the General Contractor Approach. Successfully constructing Mountain Peak Power under a General Contractor model demonstrated Kindle's ability to continue developing and building projects independently or with an EPC contract.
Provided Kindle a process step in transitioning construction solutions from EPC to EPCM alternative models
Enables Kindle to continue to be a solution provider to entities pursuing new power supply during a time where there are limited alternatives for how to construct new plants
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