1 / 9

Power Purchase Agreements

Power Purchase Agreements. The City of Santa Maria’s Experience October 23, 2012. City of Santa Maria Statistics. Northern Santa Barbara County. Disadvantaged community of 100,000. Largely agricultural.

lapis
Download Presentation

Power Purchase Agreements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Power Purchase Agreements The City of Santa Maria’s Experience October 23, 2012

  2. City of Santa Maria Statistics • Northern Santa Barbara County. • Disadvantaged community of 100,000. • Largely agricultural. • Secondary trickling filter treatment with anaerobic digesters, percolation ponds, sludge drying beds. • Design 13.5 MGD Currently 8.5 MGD. • Creative solutions to maintain affordability.

  3. History • 2004 - US Energy signed agreement with City for use of digester gas. • 2006 – Installation and start-up of four Ingersoll Rand microturbines completed. • 2007-2008 – System unreliable. Microturbines did not start up to handle varying demand. • 2008 – Microturbines replaced with 300 kW engine. US Energy cost ~$170,000

  4. History (continued) • 2008-2010 – Engine success variable. • 2011 – CHP Clean Energy takes over system. • 2012 – CHP rehabilitates engine and makes other improvements. Estimated cost ~$250,000. Starts back up July 2012.

  5. 2012 Improvements • Rebuilt engine. • Upsized exhaust manifold. • Replaced chiller. • Replaced control system. • Upsized hot water delivery system. • New air-fuel ratio sensors. • New blower, cooler pumps and intercooler.

  6. Elements of PPA Agreement • We provide them gas. • We buy their power at 8.7 cents per kWh. • They pay Departing Load Nonbypassable charges. • They need to run cogen in “efficient and effective manner.” • Term of contract is 10 years, with buyout provisions.

  7. How’s it working out? • Engine still experiences regular outages during partial peak and peak times. • Departing load charges “unanticipated” by CHP. Currently working on waiver. • Very low APCD emissions limits means high potential for lean fuel misfires.

  8. Is it paying off? • Since July 2012, Cogen facility has cost more than if on PG&E alone. • 100% PG&E: $24,100 • 100% Cogen: $16,100 • Currently: • PG&E: $8,300 demand, $7,900 use. • Cogen: $8,000 • Total: $24,200

  9. What would we do differently? • Performance standards! • Uptime criteria. • Demand charge responsibility. • Third party expert review of the design. • Cost evaluation prior to agreement. • Realistic expectations.

More Related