pasadena water and power glenarm power plant repowering project workshop pasadena city council...

Pasadena Water and Power

GLENARM POWER PLANT REPOWERING PROJECT WORKSHOP

Pasadena City Council

February 4, 2013Item 13


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

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Aerial View of Power Plant

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New Plant

Pump Bldg.State

St.

B3

Gold Line

Glenarm Bldg.


Why Repower ?

The City Council approved 2009 Energy IRP on 3/16/2009• Replace existing B3 unit with equivalent size combined cycle unit by 2015

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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


Project Phases and Timeline

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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.


Project Phases and Timeline

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• 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

Pasadena Water and Power – Repowering Project

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Visual Simulations

Looking West From Broadway Plant (Existing)


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Visual Simulations (Cont.)

Looking West From Broadway Plant…General Electric LM6000 Option


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Visual Simulations (Cont.)

Looking West From Broadway Plant (Rolls Royce Trent Option)


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

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Substantial comments received on draft EIR


Project Management and Oversight

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PWP – AGM OFFICE POWER SUPPLY

REPOWERING PMTBD

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.


Potential Financing Alternatives

Funding Sources Power Fund Bond Proceeds

100% Revenue Bonds $0 $115 million

15% Equity Financing $17 million $98 million

Financing Impacts* 100% Financing 85% Financing

Annual Debt Service $8 million $7 million

Impact per kilowatt hour (kWh)

$0.0071 $0.0063

Monthly bill impact (500 kWh)

$3.55 $3.15

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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


Next Steps and Issues

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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


Back Up Slides

BACK UP SLIDES TO FOLLOW


Another View of Power Plant

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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

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• 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


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

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Project Cash Flow

Project Total : $115.4MFY 2013: $1.2M

FY 2014: $44.7M FY 2015: $46.2M FY 2016: $23.3M

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Project Key Dates/Milestones

Environmental Impact Report… 4/8/13•Issued NOP-------- 10/6/11•Issued Draft EIR-------- 11/5/12•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)… 7/23/13Balance of Plant Construction Contract… 2/28/14Glenarm Building Contract… 2/28/14Demo/Construction Start 3/3/14Commercial Operation… 8/10/15

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Estimated Impact of 100% Bond Financing

• $100 million of tax exempt revenue bonds• Estimated pricing date June 1, 2013• 30 year, level debt service, estimated 4.0% true interest cost• Annual debt service approximately $7 million

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• 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

pasadena water and power glenarm power plant repowering project workshop pasadena city council...

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