2. Initial capital investment costs are the costs associated with initial procurement and emplacement of the plant and equipment. 3. Replacement capital investment costs are the costs associated with capital asset replacements over the operating life of the SPS (i. e., subsystem spare parts, overhauls, maintenance equipment, etc.). 4. Operations and maintenance costs are the costs of expendables H. e., argon fuel for the MPD thrustersj, minor maintenance, crew rotation, (etc. 5. Other costs include the costs of taxes and insurance. Although not completely shown in Figure 14-1, each of the five major cost divisions is then subdivided into the elements (such as systems, subsystems, components, etc.) at which level the cost analysis is performed. 14. 3 GROUND RULES AND ASSUMPTIONS The SPS program cost estimate and economic analysis were based on the following ground rules and assumptions: • The cost estimate is in constant mid-1976 prices. • The estimate includes the cost of a 30 percent satellite weight contingency. • The estimate includes an across-the-board 15 percent cost contingency. • A plant load factor of 85 percent is assumed. • A space transportation to LEO load factor of 80 percent is assumed. • A typical MSFC photovoltaic 10 GW satellite configuration (116 x 106 kg) is assumed. • Energy Research and Development Administration (ERDA)/ Electric Power Research Institute (EPRI) economic methodology3 is utilized where applicable. 3. Refer to The Cost of Energy from Utility-Owned Solar Electric Systems. ERDA/Jet Propulsion Laboratory 1012-76/3, dated June 1976.
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