Presentation on theme: "GLENARM POWER PLANT REPOWERING PROJECT WORKSHOP"— Presentation transcript:
1 GLENARM POWER PLANT REPOWERING PROJECT WORKSHOP Pasadena City CouncilFebruary 4, 2013Item 13
2 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 AvenueConstruct control room, instrument shop and officesModify existing Pump Building as Maintenance shop
3 Aerial View of Power Plant B3Gold LineNew PlantGlenarm Bldg.Pump Bldg.StateSt.
4 City’s Electrical System Must Stay Reliable Why Repower ?City’s Electrical System Must Stay ReliableNeed dependable local generation to back up single energy import locationB3 can’t be depended on for too long …47 years old, spare parts problemsOther alternatives (i.e. another import connection) not feasibleReduced operations costNew efficient unit is necessary to reduce dependence on coalFlexible generation with quick start enables wind and solar power integrationApproximately same cost over 20 years to maintain B3 vs. new unitThe City Council approved 2009 Energy IRP on 3/16/2009Replace existing B3 unit with equivalent size combined cycle unit by 2015
5 Project Phases and Timeline Description ConsultantsSelection of technology, configuration, Power Engineers preliminary engineering, specifications, etc.CEQA/EIR PCR Hearing by Planning Commission … 3/13/ City Council consideration … 4/8/13Air permits for General Electric and Rolls Royce Worley Parsons Application submitted …6/12; permit expected 5/13Environmental & geotechnical site assessment Hydrolouge, Inc.Others for chemical risk management, noise study, asbestos/lead assessment, etc.
6 Project Phases and Timeline 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 2/2014Request for proposal for Project Manager and Contract by 9/2013 Construction ManagerThese contracts would need the City Council approval6
7 Visual SimulationsLooking West From Broadway Plant (Existing)
8 Visual Simulations (Cont.) Looking West From Broadway Plant…General Electric LM6000 Option
9 Visual Simulations (Cont.) Looking West From Broadway Plant (Rolls Royce Trent Option)
10 CEQA / EIR- Major Focus Areas Significantly high greenhouse gas emissionsCEQA compares emissions from new unit operating entire year at full capacity with B3’s actual recent operation i.e. 4% of full capacityOn MWh basis new unit emits ≈30% lessExemption for height of structures…125 ft. stackCultural Resources – Historical resources (Glenarm Building)Land Use and Planning – Consistency with South Fair Oaks Specific PlanNoise – Noise Element of General Plan & Noise OrdinanceProject Labor Agreement…. Discussion with CURE underway, emphasis on local hiring and apprenticeshipSubstantial comments received on draft EIR
11 Project Management and Oversight PWP – GMPWP – AGM OFFICE POWER SUPPLYPOWER PLANT SUPERINTENDENTREPOWERING PMTBDPOWER PLANT ENGINEERINGOWNER’S ENGR.POWEROTHER PWP DEPT.OTHER AGENCIESCONST. MGR.TBDBOP/construction CONTRACTORTBDPower Island CONTRACTORTBDNote : 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.11
12 Potential Financing Alternatives Funding SourcesPower FundBond Proceeds100% Revenue Bonds$0$115 million15% Equity Financing$17 million$98 millionFinancing Impacts*100% Financing85% FinancingAnnual Debt Service$8 million$7 millionImpact per kilowatt hour (kWh)$0.0071$0.0063Monthly bill impact (500 kWh)$3.55$3.15Sources 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 Next Steps and Issues Next Steps Major Issues 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 ManagersConstruction and CommissioningTraining for Power Plant staffMajor IssuesAir permit conditions and fee increaseEIRProject Labor AgreementFuture plan for Broadway site and Glenarm buildingFuture plan for Gas Turbines 1 and 2Some elements of project and milestones continue to change due to regulatory and market information
16 Primary Project Responsibilities Repowering Project ManagerOverall project responsibilityReports to PWP AGMResponsible for high-level decision making and integration and execution of project controlsFull time role, Attends PWP and City management meetings, provides status updates as neededRepowering Construction ManagerOn-site management of construction contractReports to Project Manager and Owner’s EngineerResponsible for: site meetings, document control, inspections, const. schedule, billings, change managementCoordinates between equipment supplier and BOP contractor
17 Contracting StrategyContract directly for Power Island (15 Major Equipment) ≈ $45MBOP Contract for detail design & installation of Power Island ≈ $51MContract design & construction of control room/offices ≈ $12M17
19 Project Key Dates/Milestones Environmental Impact Report… 4/8/13Issued NOP /6/11Issued Draft EIR /5/12Public Meeting Held on Draft EIR /12/12PC Hearing for Draft Final EIR--- 3/13/13Council Certification of EIR--- 4/8/13Air Permit (SCAQMD/EPA)… 5/13/13Submitted applications for GE and RR---6/6/12Power Island Contract (gas turbine, steam and electric generators)… 7/23/13Balance of Plant Construction Contract… 2/28/14Glenarm Building Contract… 2/28/14Demo/Construction Start 3/3/14Commercial Operation… 8/10/15
20 Estimated Impact of 100% Bond Financing $100 million of tax exempt revenue bondsEstimated pricing date June 1, 201330 year, level debt service, estimated 4.0% true interest costAnnual debt service approximately $7 millionImpact 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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