Transcript city council presentation

Pasadena Water and Power
GLENARM POWER PLANT
REPOWERING PROJECT WORKSHOP
Pasadena City Council
February 4, 2013
Item 13
Glenarm Repowering Project
Pasadena Water and Power
• 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
Pasadena Water and Power
B3
Gold Line
Glenarm Bldg.
New
Plant
State
St.
3
Pump
Bldg.
Why Repower ?
Pasadena Water and Power
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
The City Council approved 2009 Energy IRP on 3/16/2009
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Replace existing B3 unit with equivalent size combined cycle unit by 2015
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Project Phases and Timeline
Pasadena Water and Power
Description
Consultants
• Selection of technology, configuration,
preliminary engineering, specifications, etc.
Power Engineers
• 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
• Others for chemical risk management, noise
study, asbestos/lead assessment, etc.
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Hydrolouge, Inc.
Project Phases and Timeline
Pasadena Water and Power
• Bid Specifications for major equipment i.e. gas
turbine, once through steam generator, steam
turbine and generator (Power Island)
Issued 6/2012
Contract by 7/2013
$ 45million approx.
• Bid specification for final design, rest of the
equipment and construction (Balance of Plant)
Contract by 2/2014
$ 51million approx.
• Design and construction of control room, etc.
Contract by 2/2014
• Request for proposal for Project Manager and
Construction Manager
Contract by 9/2013
These contracts would need the City Council approval
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Visual Simulations
Pasadena Water and Power – Repowering Project
Looking West From Broadway Plant (Existing)
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Visual Simulations (Cont.)
Pasadena Water and Power – Repowering Project
Looking West From Broadway Plant…General Electric LM6000 Option
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Visual Simulations (Cont.)
Pasadena Water and Power – Repowering Project
Looking West From Broadway Plant (Rolls Royce Trent Option)
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CEQA / EIR- Major Focus Areas
Pasadena Water and Power
• 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
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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
Substantial comments received on draft EIR
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Project Management and Oversight
Pasadena Water and Power
PWP – GM
PWP – AGM OFFICE
POWER SUPPLY
POWER PLANT
SUPERINTENDENT
REPOWERING PM
TBD
OWNER’S ENGR.
POWER
POWER PLANT
ENGINEERING
OTHER PWP DEPT.
OTHER AGENCIES
CONST. MGR.
TBD
BOP/construction
CONTRACTOR
TBD
Power Island
CONTRACTOR
TBD
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.
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Potential Financing Alternatives
Pasadena Water and Power
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
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
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Next Steps and Issues
Pasadena Water and Power
Next Steps
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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
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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
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Back Up Slides
Pasadena Water and Power
BACK UP SLIDES TO FOLLOW
Another View of Power Plant
Pasadena Water and Power
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Primary Project Responsibilities
Pasadena Water and Power
• Repowering Project
Manager
• Repowering Construction
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
> 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
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Contracting Strategy
Pasadena Water and Power
• 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
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≈ $12M
Project Cash Flow
Pasadena Water and Power
Project Total : $115.4M
FY 2013: $1.2M
FY 2014: $44.7M
FY 2015: $46.2M
FY 2016: $23.3M
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Project Key Dates/Milestones
Pasadena Water and Power
Environmental Impact Report…
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Issued NOP-------Issued Draft EIR-------Public Meeting Held on Draft EIR---PC Hearing for Draft Final EIR--Council Certification of EIR---
10/6/11
11/5/12
12/12/12
3/13/13
4/8/13
Air Permit (SCAQMD/EPA)…
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4/8/13
5/13/13
Submitted applications for GE and RR---6/6/12
Power Island Contract (gas turbine, steam and electric generators)…
Balance of Plant Construction Contract…
Glenarm Building Contract…
Demo/Construction Start
Commercial Operation…
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7/23/13
2/28/14
2/28/14
3/3/14
8/10/15
Estimated Impact of 100% Bond Financing
Pasadena Water and Power
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$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
$100 Million Tax-Exempt Financing
Aggregate Debt Service
$25
($Millions)
$20
$15
$10
$5
$0
Existing Debt Service
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Series 2013
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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