Capstone Event Presentation 

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Looking at a graph of levelized cost helps us visualize the data from our SROI a little easier.

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Holland,MI—The recommendations for future power generation released today by the Holland Board of Public Works would lead to dramatic reductions in greenhouse gases and particulate emissions, while at the same time making big gains in energy and cost efficiency.

The recommendations will be reviewed with the Community Stakeholders Panel at a public meeting on October 29 and formally submitted to the BPW’s Board of Directors and the Holland City Council in November.

“We are very pleased that this broad community effort has arrived at a set of recommendations that are fully in step with the Holland Community Energy Plan and that can move our community forward in every significant measure,” said Dave Koster, general manager of HBPW. “The participation and input from people across our community have led to some very strong options for powering our future.”

The recommendations mark the conclusion of an exhaustive year-long analysis that engaged the participation of the HBPW staff, leading engineering and energy consulting firms and stakeholders from across the community that included representatives from business, government, education, environmental groups and the community at large.

The potential gains from the HBPW’s recommendations are significant. According the U.S. Environmental Protection Agency, power generated by natural gas produces half as much carbon dioxide, less than a third as much nitrogen oxides, and one percent as much sulfur oxides as comparable coal-fired generation.  In addition, the recommendations would keep the levelized cost of electricity relatively the same and would add extensively to the HBPW’s capabilities to provide expanded snow melt and other energy-saving services such as district heating.

“The work on the part of the community that led to these recommendations has been cited as a leading example of thorough, open and inclusive decision making,” Koster said.

Following are the recommendations released today, and key factors for each:

1. Base Load Generation: Pursue combined-cycle natural gas technology in a configuration that may include two gas-powered turbines providing 114MW of electric power..

Key Factors

• Economy of scale
• Operational efficiency
• Additional waste heat availability for district heating and snowmelt
• Opportunity for collaboration with other municipals
• Supports ability to power the system and our community internally.

2. Location For New Resource: Preferred site not James De Young.

Key Factors

• Constructability of site
• Lake access is no longer needed for cooling
• Alternatives are closer to both the proposed gas pipeline route and district heating networks
• Need to preserve access to roads and high-voltage distribution.

3.1 Renewable Energy: Enter into 10-year Power Purchase Agreement with E.ON Wildcat for 15 MW of wind generation produced near Elwood, Indiana.

Key Factors

• Complements current portfolio of landfill gas and biomass resources
• Excellent pricing without operational or development risk
• Pay as power is received preserves capital for other investments.

3.2 Renewable Energy: Complete 20 year agreement with Beebe Wind LLC for approximately 17 MW of wind generation produced near Ithaca, Michigan.

Key Factors

• Pricing competitive with E.ON Wildcat I project
• Dependent upon the extension of Production Tax Credits in their current form
• Working to build a group of Michigan municipal entities to fully subscribe the development.

4. Existing Units at James De Young Facility: No further capital investments in control technology to meet upcoming regulations.

Key Factors

• Unit 5 (28MW) will need to stop burning coal in next 3-4 years
• Unit 3 (11 MW) and Unit 4 (22 MW) are affected by proposed rule that is being reconsidered
• Monitor regulations and technology improvements
• Preserve capacity by utilizing natural gas capability.

Other Recommendations

Also included with the base recommendations were a set of proposed next steps to be taken when the Board and Council approve a base load plan. These included:

• Engage services of an owner’s engineer to assist with management of the project.
• Initiate the site selection process for locating a new unit.
• Hire HT Engineering for gas pipeline design services.
• Procure fuel management services and begin development of hedge plan for natural gas.

If accepted and enacted, the recommendations released today will deliver to the community affordable, reliable future energy, a more diverse energy portfolio, cleaner fuel, dramatically lowered emissions, greater integration of renewable energy resources and much higher energy efficiency for theHollandcommunity.

The Holland Board of Public Works is a community-owned enterprise providing utility services to nearly 28,000 business and residential customers in theHollandarea. We are committed to improving the economic and environmental quality of the community in partnership with our customers, providing reliable services at the lowest rates achievable through innovation, efficiency, and professional operations. We provide electric generation and distribution, water and wastewater treatment to the City ofHollandand selected areas.

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The event will serve as the “Capstone” Event for the Sustainable Return on Investment (SROI), and we will review and discuss materials and data for new generation options.

Register on Facebook, and let us know if you plan to attend!

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We hired HDR, a global independent consulting firm, to help us conduct an exhaustive sustainable return on investment study (SROI). It looked at affordability and reliability, but also at the social, economic, environmental and health impacts of a variety of options.

We looked at a lot of options—everything from state-of-the-art solid fuel generation to purchasing primarily from the grid.

Today, we’re pleased to share the results of that study with you.

In the PDF below, you’ll find last night’s presentation with synopses of each scenario HDR evaluated. Scenarios A to D are options specific to the Community Energy Plan. Scenarios E & F are options that involve no new local generation–just purchasing power from the grid. Scenario G is a more ambitious look at the Scenario A approach with a larger combined cycle unit.

Starting today, August 9, we are opening up a period for public commenting to hear your voice as we continue the decision making process. You can submit your comments here on the website.

 SROI Results with Synopses

Update — October 15, 2012

The above results tables includes synopses from HDR’s presentation. Please download the document below to view HDR’s SROI Analysis Final Report.

 HDR SROI Analysis Final Report

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The Questions & Answers Session video from last Monday night is now available here and on the Holland BPW’s Vimeo page.

Edit: The transcription is now available for download: Transcription-HBPWQ&A.pdf

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 Download the Questions & Answers Session Presentation

Black & Veatch Study

Last night’s Q&A session referenced a Black & Veatch study on power supply alternatives that the Holland BPW released in the Spring of 2010. Please find a copy of that study here.

 Download the Black & Veatch Study

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