Lansing Board of Water & LightREO Town Headquarters & Cogeneration Plant

REO Town Cogeneration:

Concept to Commercial Operation

Agenda

BWL Background REO Town Firsts Steam Production Study & Recommendations Selecting the Design, Build, Startup and

Commission team What we built Starting Up & Commissioning your own Plant!? Questions

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BWL Background

The BWL is the largest municipal utility in Michigan and is owned by the citizens of Lansing.

Largest groundwater sourced drinking water system in Michigan (54,900 Customers)

Number of electric customers 82,823 Residential 12,708 Commercial 272 Industrial

Also serve the Lansing downtown district with steam heating and chilled water

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BWL Background (cont’d)

Major steam customers in downtown Lansing include: GM Grand River Assembly plant State of Michigan buildings Cooley Law School Lansing Comm. College Accident Fund National HQ

Peak seasonal load of 300,000 lbs/hr of steam Over 12 miles of steam distribution piping

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REO Town Firsts

First new utility power plant built in Michigan in 25 years

First power plant built by the BWL in 40 years BWL’s first natural gas-fired electric generating

plant BWL’s first cogeneration plant Among the cleanest and most efficient plants

operating in Michigan and the US

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Steam Production Study

2010 Steam Production Study identified the following:Four stoker, coal fired boilers ranging in age from

43 to 55 years have exceeded their design life

$32 Million in capital expenditures to replace:External skin on 3 of 4 boilersSoot blowers Economizer and superheater tubesUpgrade boiler controls

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Steam Production Study (cont’d)

$35-$107 Million in environmental upgrades to comply with forth coming regulations

No guarantee the environmental upgrades to the Moores Park boilers will meet pending EPA regulations, resulting in a loss of $67 - $139 million investment (boiler and emissions control upgrades)

Need for additional electric generating capacity by 2017 due to aging electric units

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Steam Production Study Recommendations

Build a new CHP (Combined Heat & Power or Cogeneration) plantBeneifts include:

Diversify fuel mix (mostly PRB coal)Avoid burning 351,000 tons of coal a year Reduce Mercury & SO2 emissions 99%Improved efficiencyLowers NOx emissions by 85% and CO2 by

50%

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Steam Production Study Recommendations (cont’d)

Help exceed the EPA goal of reducing greenhouse gases by 17% by 2020

Major work on the Moores Park boilers could trigger New Source Review

Replace 100 MW of aging coal fired electric generation

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Selecting the Design, Build, Startup and Commission team

BWL Project Director and Project Manager Hire an Owner’s Engineer Architectural & Engineering firm to design the

plant Construction firm to build the plant.  Also had the

responsibility to hire a Startup and Commissioning Team

BWL Operations staff to participate in startup and early operation of the equipment

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What we built

Plant specifications (2) GE LM6000 PF/DLE units capable of 50 MW each (2) Once Through Steam Generators (OTSG) 175

klbs/hr each (1) Gas Fired Package Boiler 175 klbs/hr (1) 14.4 MW topping Steam Turbine Generator (2) 100% Reciprocating Gas Compressors (3) 50% Boiler Feed and Condensate Pumps (2) 100% Circulating Water Pumps (2) 100% Aux Cooling Pumps (2) 100% Plant Air Compressors (3) 50% Reverse Osmosis Trains

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14.4 MW Steam Turbine (Elliott/Hyundai)

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175 klbs/hr package boiler (Victory Energy)

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Boiler Feed Pumps (Goulds) & OTSG 2 (IST)

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Condensate, Aux Cooling & Circulating Water Pumps

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Reverse Osmosis Trains (US Water)

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Duct Burners on OTSG 1

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GE LM6000 PF/DLE Gas Turbine Package(Unit 1)

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Mezzanine Level Deaerators and Cooling Tower Piping

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Starting Up & Commissioning your own Plant!?

Construction firm lost Startup and Commissioning Manager 2.5 months before Commercial Operation date

Project team elected to have the Plant Engineer assume the role of Startup and Commissioning Manager

Due to project schedule challenges, BWL supplemented the startup and commissioning team with Operators, Instrument Controls Specialists, Controls Engineer, Project Engineer, Maintenance Supervisors, Plant Manager and a Trainer.

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Starting Up & Commissioning your own Plant!? (cont’d)

Major equipment suppliers (ie. GE gas turbines, Boilers, Reverse Osmosis trains, etc.) commissioned their equipment with field technicians supported by the BWL team

We made it!  $182 million plant built on time and on budget with a commercial operation date of July 1, 2013.

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Thank you

Questions?

Rob Hodge

Plant Manager

rah1@lbwl.com

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