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Pasadena Water and Power GLENARM POWER PLANT REPOWERING PROJECT WORKSHOP Pasadena City Council February 4, 2013 Item 13.

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Presentation on theme: "Pasadena Water and Power GLENARM POWER PLANT REPOWERING PROJECT WORKSHOP Pasadena City Council February 4, 2013 Item 13."— Presentation transcript:

1 Pasadena Water and Power GLENARM POWER PLANT REPOWERING PROJECT WORKSHOP Pasadena City Council February 4, 2013 Item 13

2 Pasadena Water and Power Glenarm Repowering Project Build a new combined cycle electric generation unit (68 MW net, 71 MW gross) Decommission existing B3 electric generation unit (65 MW net, 71 MW gross) Close State Street cul-de-sac off of Fair Oaks Avenue Construct control room, instrument shop and offices Modify existing Pump Building as Maintenance shop 2

3 Pasadena Water and Power Aerial View of Power Plant 3 New Plant Pump Bldg. State St. B3 Gold Line Glenarm Bldg.

4 Pasadena Water and Power Why Repower ? The City Council approved 2009 Energy IRP on 3/16/2009 Replace existing B3 unit with equivalent size combined cycle unit by City’s Electrical System Must Stay Reliable Need dependable local generation to back up single energy import location B3 can’t be depended on for too long …47 years old, spare parts problems Other alternatives (i.e. another import connection) not feasible Reduced operations cost New efficient unit is necessary to reduce dependence on coal Flexible generation with quick start enables wind and solar power integration Approximately same cost over 20 years to maintain B3 vs. new unit

5 Pasadena Water and Power Project Phases and Timeline 5 Description Consultants Selection of technology, configuration, Power Engineers preliminary engineering, specifications, etc. CEQA/EIR PCR Hearing by Planning Commission … 3/13/13 City Council consideration … 4/8/13 Air permits for General Electric and Rolls Royce Worley Parsons Application submitted …6/12; permit expected 5/13 Environmental & geotechnical site assessment Hydrolouge, Inc. Others for chemical risk management, noise study, asbestos/lead assessment, etc.

6 Pasadena Water and Power Project Phases and Timeline 6 Bid Specifications for major equipment i.e. gas Issued 6/2012 turbine, once through steam generator, steam Contract by 7/2013 turbine and generator (Power Island) $ 45million approx. Bid specification for final design, rest of the Contract by 2/2014 equipment and construction (Balance of Plant)$ 51million approx. Design and construction of control room, etc.Contract by 2/2014 Request for proposal for Project Manager and Contract by 9/2013 Construction Manager These contracts would need the City Council approval

7 Pasadena Water and Power – Repowering Project 7 Visual Simulations Looking West From Broadway Plant (Existing)

8 Pasadena Water and Power – Repowering Project 8 Visual Simulations (Cont.) Looking West From Broadway Plant…General Electric LM6000 Option

9 Pasadena Water and Power – Repowering Project 9 Visual Simulations (Cont.) Looking West From Broadway Plant (Rolls Royce Trent Option)

10 Pasadena Water and Power CEQA / EIR- Major Focus Areas Significantly high greenhouse gas emissions  CEQA compares emissions from new unit operating entire year at full capacity with B3’s actual recent operation i.e. 4% of full capacity  On MWh basis new unit emits ≈30% less Exemption for height of structures…125 ft. stack Cultural Resources – Historical resources (Glenarm Building) Land Use and Planning – Consistency with South Fair Oaks Specific Plan Noise – Noise Element of General Plan & Noise Ordinance Project Labor Agreement…. Discussion with CURE underway, emphasis on local hiring and apprenticeship 10 Substantial comments received on draft EIR

11 Pasadena Water and Power Project Management and Oversight 11 PWP – AGM OFFICE POWER SUPPLY REPOWERING PM TBD POWER PLANT ENGINEERING OWNER’S ENGR. POWER CONST. MGR. TBD BOP/construction CONTRACTOR TBD Power Island CONTRACTOR TBD POWER PLANT SUPERINTENDENT OTHER PWP DEPT. OTHER AGENCIES PWP – GM Note : Project Manager and Construction Manager may be from the same firm and/or hired under the same contract. Staff to determine best value arrangement for the project following review of proposals for PM/CM services.

12 Pasadena Water and Power Potential Financing Alternatives Funding SourcesPower FundBond Proceeds 100% Revenue Bonds$0$115 million 15% Equity Financing$17 million$98 million Financing Impacts*100% Financing85% Financing Annual Debt Service$8 million$7 million Impact per kilowatt hour (kWh)$0.0071$ Monthly bill impact (500 kWh)$3.55$ Sources of Equity Financing: $15 million to $20 million from Power Fund (working capital) *All impacts estimated, actual debt service and kWh impact may vary

13 Pasadena Water and Power Next Steps and Issues 13 Next Steps EIR approval Air Permit (contingent upon EIR approval) Financing (Reimbursement resolution for City Council approval on 2/25/2013) Contracts for major equipment, construction and Project/Construction Managers Construction and Commissioning Training for Power Plant staff Major Issues Air permit conditions and fee increase EIR Project Labor Agreement Future plan for Broadway site and Glenarm building Future plan for Gas Turbines 1 and 2 Some elements of project and milestones continue to change due to regulatory and market information

14 Pasadena Water and Power Back Up Slides BACK UP SLIDES TO FOLLOW

15 Pasadena Water and Power Another View of Power Plant 15

16 Pasadena Water and Power Primary Project Responsibilities Repowering Project Manager  Overall project responsibility  Reports to PWP AGM  Responsible for high-level decision making and integration and execution of project controls  Full time role, Attends PWP and City management meetings, provides status updates as needed 16 Repowering Construction Manager  On-site management of construction contract  Reports to Project Manager and Owner’s Engineer  Responsible for: site meetings, document control, inspections, const. schedule, billings, change management  Coordinates between equipment supplier and BOP contractor

17 Pasadena Water and Power Contracting Strategy Contract directly for Power Island (15 Major Equipment) ≈ $45M BOP Contract for detail design & installation of Power Island ≈ $51M Contract design & construction of control room/offices ≈ $ 12M 17

18 Pasadena Water and Power Project Cash Flow Project Total : $115.4M FY 2013: $1.2M FY 2014: $44.7M FY 2015: $46.2M FY 2016: $23.3M 18

19 Pasadena Water and Power Project Key Dates/Milestones Environmental Impact Report…4/8/13 Issued NOP /6/11 Issued Draft EIR /5/12 Public Meeting Held on Draft EIR----12/12/12 PC Hearing for Draft Final EIR---3/13/13 Council Certification of EIR---4/8/13 Air Permit (SCAQMD/EPA)…5/13/13 Submitted applications for GE and RR---6/6/12 Power Island Contract (gas turbine, steam and electric generators)… 7/23/13 Balance of Plant Construction Contract…2/28/14 Glenarm Building Contract…2/28/14 Demo/Construction Start3/3/14 Commercial Operation…8/10/15 19

20 Pasadena Water and Power Estimated Impact of 100% Bond Financing $100 million of tax exempt revenue bonds Estimated pricing date June 1, year, level debt service, estimated 4.0% true interest cost Annual debt service approximately $7 million 20 Impact of additional debt service may be reduced by offsetting revenues from ancillary services, wholesale energy transactions and reduced operating expenses due to increased efficiencies

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