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HomeMy WebLinkAboutMERP Project Fact Sheet4r MINNESOTA METRO EMISSIONS REDUCTION PROJECT FACT SHEET As part of our commitment to the environment and producin cleaner ener we will be reducin air emissions at three coal-powered g eneratin g plants in the Twin Cities metro area. Our Metro Emissions Reduction Pro (MERP) will install state-of-the-al-t pollution control e at the Allen S. Kin plant in Oak Park Hei and convert the Hi Brid plant in St. Paul and the Riverside plant in Minneapolis from coal to natural g as. These improvements will si reduce air emissions from these facilities while increasin the amount of electricit the can produce. MERP reflects our commitment to provide reliable ener to customers while reducin the environmental impact of g eneratin g that power. The packa of improvements, valued at nearl $1 billion, will be completed over the next six y ears. The Minnesota Public Utilities Commission ( MPUC ) has approved the pro j ect and our proposal to collect, in rates, the cost of the pro MERP le MERP stems from an emissions reduction bill passed durin the 2001 Minnesota le session as a result of work b le leaders, state a the Izaak Walton Lea Xcel Ener and others. The le encoura utilities to make voluntar emissions reductions and provides a mechanism for electric utilities to recover the costs of q ualif y in g voluntar emissions reduction projects throu an increase on customer bills. Our ener experts thorou evaluated emissions reduction alternatives at our Twin Cities plants to identif pro that provide si environmental benefits at a reasonable cost to our customers The pro that resulted from that evaluation are described below. Kin Plant Rehabilitation This pro will add state-of-the-art pollution control e and rehabilitate existin electric g eneration e to return Kin plant to its ori desi capacit The new air q ualit y control s includes selective catal reduction for nitro oxide (NOx) control, flue g as scrubbers for control of sulfur dioxide (S02) emissions, and fabric filters for control of particulate matter. The rehabilitation also includes steam turbine replacement, steam g enerator repairs and modifications, circulatin water s modifi- cations, coal handlin up auxiliar electric s up and other e rehabilitation to extend the life of the plant, mak- in the emission control up cost-effective. The existin stack will be reused. Location: Oak Park Hei Minn. Proposed fuel source: Coal Pro emissions reductions: 91% S02; 89% NOx 20% particulates approximatel 20% mercur Capacit improvement: 60-me increase Pro cost: $382 million ( 2001 dollar value Pro selection and timin Permittin and e desi activities be in 2003, with on-site construction activities be in 2004. Pro in-service date is Ma 2007. Kin plant has been a vital base load resource for its entire 3D plus y ear histor Because its reliable operation is important to the stabilit of the re transmission s it has the hi priorit of the three pro 0 4 IM-1111941re This pro involves replacin the existin Hi Brid facilit with a natural g as fired combined-c unit that includes two combustion turbines, correspondin heat recover steam g enerators, and a new steam turbine to be installed in a new buildin located at the southwest corner of the existin site. The new facilit will use the existin circulatin water suppl and return from the river. The existin plant structures, built in 1924, will be demolished alon with the 565-foot-hi stack. Location: Downtown St. Paul Proposed fuel source: Natural gas Projected emissions reductions: 99% S02; 97% NOx 100% particulates 100% mercur Capacit improvement: 270-280-me increase Project cost: $395 million (2001 dollar value) Project selection and timin Permittin and e desi will be in 2004, with construction activities be in 2005.The pro in-service date is Ma 2008. Because this proposal calls for an entirel new facilit the existin Hi Brid plant will continue to operate until the new units are in service. Location: Proposed fuel source: Pro emissions reductions: Capacit improvement: Pro cost: Pro selection and timin This pro will replace the existin coal-fired Units 7 and 8 with a natural g as combined-c arran with two combustion turbines and correspondin heat recover steam g enerators. Steam produced in the heat recover boilers will be used to drive the existin Unit 7 steam turbine. Al =ter the new turbines and steam g enerators are constructed, Unit 7 will be taken out of service to install new steam lines from the heat recover boilers. Unit 8 will continue to operate in its current fashion until the new units are full operational, after which it will be retired and demolished. Northeast Minneapolis Natural g as 100% S02; 99% NOx 100% particulates 100% mercur 80-me increase $212 million ( 2001 dollar value Permittin and e desi will be in 2005. Site preparation and construction activities be in 2006, with a pro in-service date of Ma 2009. Althou Riverside was built in 1911, the plant has been up over the y ears and is in the best condition of the three candidate g eneratin g facilities, so it's the most cost-effective to make this the third pro in the series. Rate impact The impacts on customer rates will be phased in over time startin in 2006. For a t residential customer, the total impact b 2010 would be an extra $3.50 per month, not includin the costs that would otherwise be incurred for additional capacit additions re to meet our customers need for electricit The cost increases from this proposal are pro to be well under the overall rate of inflation over this time period. Hi Brid Combined C Riverside Repowering