Foxborough Cogeneration Facility
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Foxborough Cogeneration Facility Innovative District Energy System as Economic Engine for Redevelopment AGENDA Introductions Purpose for Municipal Utility District History of Victorville Municipal Utility Services The Foxborough Redevelopment District The Foxborough Customers The Foxborough Cogeneration Facility Q&A / Closing INTRODUCTIONS Sandra Haines Project Manager Victorville Municipal Utility Services E.B. Jensen, P.E. Program Manager Carter & Burgess, Inc. Where is Victorville? Where is Victorville? Purpose for VMUS Support City’s Desire for Growth Attract New Businesses Create Jobs Increase Tax Base History of VMUS The Victorville City Council Approved the formation of the Victorville Municipal Utility Services (VMUS) in January 2001. VMUS serves businesses in two redevelopment districts in the City. Foxborough District Southern California Logistics Airport (SCLA) HISTORY (cont.) Goal to promote business growth by offering lower cost energy Currently, City owns and operates three small power generation facilities; two cogeneration (one electricity and chilled water, one electricity and steam) and one simple cycle generation. Foxborough District Foxborough District Originally a 77 Acre redevelopment area Recently increased to 122 Acres (May 2006) SCLA SCLA 5,000 Acre Redevelopment area Foreign Trade Zone U.S. Customs Port of Entry LAMBRA Enterprise Zone Proximity to I-15 Freeway, planned High Desert Corridor, and BNSF Rail Lines VMUS Preferred Discounts Electricity at 10% below IOU Steam at 10% below equivalent Natural Gas Chilled Water at 10% below electric IOU Natural Gas at “Aggregation Group” rates Why Discounts City was selected as No. 2 in several development inquiries because Utility Rates from IOU’s were too high VMUS’ 10% Discounts combined with other incentives from Redevelopment Areas = No. 1 How To Achieve Discounts District Energy Facilities Electricity Steam Chilled Water “Break Even” Business Model City Benefits from holistic approach – Jobs, Tax Revenue (RDA), Support Services Stay On Grid CONS Why Off Grid PROS CPUC Regulations Independence Capital Cost for IOU intertie Capital Cost for Backup Equipment Monthly Costs NO Monthly costs Departing Load Demand Standby Fees VMUS Team Accomplishments CY 2001 - 2002 City serves GE hangar (construction) City develops Energy Service Agreement (ESA) with Aspen & GE City provides Utility-grade power to GE hangar VMUS Team Accomplishments CY 2003 City serves GE hangar (construction) City develops Energy Service Agreement (ESA) with ConAgra City provides Utility-grade power to GE hangar VMUS Team Accomplishments CY 2004 City makes good on 2001 promise to provide energy incentive to M&M/Mars (Aspen Distribution) City develops Energy Service Agreement (ESA) with Nutro City provides constr. power to ConAgra and Nutro VMUS Team Accomplishments CY 2005 Permanent Power to ConAgra Permanent Power and Steam to Nutro City provides permanent Power to CBS Hangar #1 (SCLA) VMUS Team Accomplishments CY 2006 City receives notice that Nutro desires Phase 2 CBS has plans for 5 more hangars Stirling presents 5.78 mil. sq. ft. development plan for SCLA City provides permanent Power to CBS Hangar #2 Aspen Distribution Center 640,000 sq ft Refrigerated Warehouse 100 direct jobs created (est.) Candy/Food Distribution Warehouse Con Agra Distribution Center 250,000 sq ft Frozen Food Warehouse 150 direct jobs created (est.) Distribution Warehouse Nutro Products 660,000 sq ft Manufacturing & Warehouse 200 direct jobs created (est.) Premium Pet Food Manufacturing & Distribution Future Customers May 2006 – RDA announces Memorandum Of Understanding 1,000,000 sq ft Distribution Warehouse Additional Manufacturing & Distribution Customers… Foxborough Cogen Facility Off-Grid District Energy Facility Energy Products Electricity (12.47 kV) Steam (150 psig) Phase 1 Capacity – 17.5 MW (nom.) Phase 2 Capacity – 22.5 MW (nom.) Future – up to 49.9 MW Prime Movers – Phase 1 (2) Solar Gas Turbines – Taurus 60 (2) Rentech HRSGs with Fresh Air Firing (1) Tuthill-Murray Steam Turbine (2) Caterpillar Gas Engine Generators Prime Movers – Phase 2 Additional Equipment (1) Solar Gas Turbines – Taurus 60 (1) Rentech HRSGs with Fresh Air Firing Challenges Learning Curve Timing/Coordination Hiring Practices of City Educating Customers New to CHP/District Energy Evaluating Loads (electric, steam, chilled water) Questions & Answers “C&B’s efforts in helping the City develop a cogeneration district for Foxborough has become one of the most important tools for the City in attracting industrial development opportunities” Keith Metzler Director, Economic Development History - VMUS George AFB (SCLA) and Foxborough Redevelopment Zones Established 2001 - City Council Creates Municipal Utility 2001-03 – City Contracts Various consultants 2001 – VMUS begins Natural Gas Aggregation Group 2002 – Industrial Customer Prospects Develop 2002 - City Selects C&B as Utility Engineer 2003 – City begins first Plant –Aspen Cogen 2003 – City builds first “small” recip Islanded Plant 2004 – City develops Foxborough Cogen Facility with 2 tenants – Nutro & ConAgra High Energy Costs = #2 for Victorville SCE Eliminated Incentive Programs SouthWest Gas is highest priced in State
