HomeMy WebLinkAbout2010-10-05; Municipal Water District; 724; MAERKLE PRESSURE CONTROL HYDROELECTRIC FACILITYCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BIL
AB# ?24
MTG. 10/05/10
DEPT. UTIL
ACCEPT TECHNICAL MEMORANDUM FOR THE
MAERKLE RESERVOIR PRESSURE CONTROL
HYDROELECTRIC FACILITY PROJECT NO 5025
DEPT. DIRECTOR
CITY ATTORNEY (Q^^*
CITY MANAGER I iL_--
RECOMMENDED ACTION:
Adopt Resolution No. 1404 accepting Technical Memorandum for the Maerkle Reservoir
Pressure Control Hydroelectric Facility, Project No. 5025.
ITEM EXPLANATION:
A pressure control hydroelectric facility (PCHF) generates electrical power by capturing some of the
energy in high-pressure water using a pump connected to an induction motor. The high-pressure
water is fed through the pump in the opposite direction to that of a pump to spin the induction motor.
The induction motor then becomes a generator and produces electrical power.
Near the easterly city limits of Carlsbad approximately one mile north of Faraday Avenue an existing
pressure reducing station reduces high-pressure water through a series of valves and discharges the
water to the 10 million gallon (MG) Maerkle Tank and 200 MG Maerkle Dam (see Exhibit 1 for
location). In February 2009 a Feasibility Study was completed by Energistics, Inc. indicating that a
PCHF constructed in parallel to the existing pressure reducing station could potentially generate
electrical power with a payback period of nine years. Based on this information, on April 14, 2009 the
Board adopted Resolution No. 1350 authorizing further investigation of constructing a PCHF at this
location.
On September 22, 2009, the Board adopted Resolution No. 1376, appropriating $2,000,000 and
approving a professional engineering services agreement with Carollo Engineers for preliminary
design, preparing plans and specifications, construction support, and startup services of a PCHF
adjacent to Maerkle Tank. Carollo Engineers completed the first task, a Technical Memorandum,
dated April 2010, presenting detailed information on the alternatives available for the PCHF. The
Technical Memorandum indicated that based on the flow rate range occurring throughout the year,
and pressure available, a reverse turbine pump or an emerging technology using a reverse rotary
lobe pump would be the best application for the PCHF because of lower construction cost, small
footprint, and ease of operation.
Reverse Turbine Pump - An analysis of sixteen reverse turbine pump alternatives shows Alternative
No. 4a has the shortest payback period based on the parameters shown in Table 1.
Table 1 - Recommendation for Reverse Turbine Pump, Alternative No. 4a for PCHF
Description
Flow rate
Pressure
Maximum Power Produced
Annual Electricity Production
Project Cost
Annual Revenue
20-year Net Present Value
Net Present Value Payback Period
Parameter
6.75 cubic feet per second (cfs)
134 pounds per square inch (psi)
135 kilowatts (kW)
832,812 kW-hrs based on 6,158 hours of operation annually
$1,205,000 (includes $1,120,000 project + $85,000 miscl.)
$80,442 for first year of operation @ $0.0966/kW-hr
$1,588,720 using SDG&E Schedule RES-BCT Tariff
8.1 years using SDG&E Schedule RES-BCT Tariff
DEPARTMENT CONTACT: William Plummer, (760) 602-2768, biH.plummer@carlsbadca.gov
FOR CITY CLERKS USE ONLY
BOARD ACTION: APPROVED fi&. CONTINUED TO DATE SPECIFIC D
DENIED °D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D
Page 2
Reverse Rotary Lobe Pump - An emerging technology from a Norwegian company called Zeropex
uses a rotary lobe pump connected to an induction motor to generate power. This type of pump was
listed as Alternative No. 17 and 17a in the economic analysis. A rotary lobe pump combined with
variable frequency drive, and a software program reduces pressure over the entire flow range,
essentially acting as a pressure reducing or sustaining valve to maintain a set pressure upstream or
downstream of the pump. For the proposed PCHF an additional 15 psi of water pressure could
potentially be captured compared to the reverse turbine pump. The estimated project cost was higher,
at $1,510,000, but the 20-year net present value increased to $2,623,566 resulting in the shortest
payback period of 7.3 years using the RES-BCT tariff (Alternative No. 17a).
In 2009, Zeropex installed their first unit in Norway. Their first installation in the United States is now
taking place in Grand Rapids, Michigan with startup planned to occur in the fall of 2010. The San
Diego County Water Authority is also investigating this equipment to replace existing hydroelectric
generators. In addition, the staff at the California Public Utilities Commission (CPUC) is investigating
this technology, and in October 2010, proposes to submit for CPUC approval, grant funding for six
units at four different private water companies in California.
Project Schedule - The project schedule requires completing several major tasks as follows. The
first task is to select and pre-order the power generation equipment based on using a reverse turbine
pump or reverse rotary lobe pump. Plans and specifications are then prepared, based on the selected
equipment. After plans and specifications are completed (6 months), the hydroelectric facility will need
to obtain a license from the Federal Energy Regulatory Commission (FERC). The shortest process for
a FERC license is to obtain a "Conduit Exemption", which requires the PCHF to meet three conditions
including connecting to a conduit (pipeline) that was originally constructed for a non-hydropower use,
ownership of the land by CMWD for the proposed powerhouse, and installing the power generation
facility before the final point of discharge. Assuming the use of a "Conduit Exemption", the FERC
process will take 8 to 10 months. Finally, project bidding and award will need to take place (3 months)
followed by construction (6 to 8 months). The SDG&E RES-BCT tariff can be pursued after the bid is
awarded for construction.
Recommendation - The Technical Memorandum recommends proceeding with the final design of
the project. The final design first involves staff, in consultation with Carollo Engineers, selecting the
type of hydroelectric generator equipment (i.e. reverse turbine pump or reverse rotary lobe pump) that
best meets the project goals and requirements. When the hydroelectric generator is selected, plans
and specifications for construction of the PCHF will be prepared, followed by obtaining a FERC
license. Finally, staff will be returning to the Board for their consideration to approve advertising the
PCHF project to receive bids for construction.
The Technical Memorandum - Pressure Control Hydroelectric Facility at Maerkle Reservoir by Carollo
Engineers dated April 2010 is available for review at the City Clerk's office.
ENVIRONMENTAL IMPACT:
The consideration and approval of a project alternative is statutorily exempt from the requirements of
the California Environmental Quality Act (CEQA) in accordance with State CEQA guidelines Section
15262 - Feasibility and Planning Studies. The PCHF project will be subject to CEQA upon final
design and all applicable CEQA documents will be processed and filed prior to adoption of the
project's plan and advertisement for construction.
FISCAL IMPACT:
SDG&E Tariff - As shown in Table 1 above, SDG&E's RES-BCT (Local Government Renewable
Energy Self-Generation Bill Credit Transfer) tariff results in the shortest payback period estimated at
8.1 years for the Reverse Turbine Pump and 7.3 years for the Reverse Rotary Lobe Pump. This tariff
allows renewable energy producers to generate electricity at one meter location and use the credit at
another owned meter location, commonly referred to as wheeling. Therefore, CMWD would be
Page 3
allowed to use the excess electricity generated at the PCHF as a credit on their electricity bill at
another location. In addition, any Renewable Energy Credits generated would be owned by CMWD.
The RES-BCT Tariff was recently approved by the CPUC on July 6, 2010 in accordance with CPUC
Resolution E-4283. To receive the tariff, the CMWD must submit "Generation Bill Credit Transfer
Allocation Request Form" (form 142-0546) with up to a maximum of 50 credit meter accounts, at least
60 days prior to the regularly scheduled meter reading date. The RES-BCT tariff is available on first-
come first-served basis, until the combined rated generating capacity within SDG&E's service territory
reaches SDG&E's share of 8.1% of the statewide 250 mega-watts limitation.
WaterSMART Grant - In March 2010, the Federal Department of the Interior, Bureau of Reclamation
(BUREC) announced they were requesting applications for their FY 2010 WaterSMART (Sustain and
Manage America's Resources for Tomorrow) grant totaling $12.8 million. The grant amount to any
agency was capped and grant awards were based on a competitive selection process. An application
for a $300,000 grant for the PCHF project was authorized by the Board on April 27, 2010 by
Resolution No. 1396. The BUREC received 197 grant applications. In a letter dated July 28, 2010
from the BUREC, the CMWD was notified that the PCHF project was not selected to receive a grant.
Future fiscal year appropriations to the WaterSMART grant program are planned, and staff will
monitor this program for future grant opportunities.
Economic Analysis - Each alternative was evaluated by a net present value (NPV) analysis, which is
the current worth (net gain or loss in today's dollars) of a series of future revenues and expenditures
(i.e. construction cost, operation and maintenance expenses, and revenues). The NPV analysis for the
PCHF used a discount rate of 4.5 percent and a 20-year life cycle. Of the seventeen alternatives
investigated, two alternatives are currently being considered:
Alternative No. 4a - This alternative uses the reverse turbine pump technology with a design
flow rate of 6.7 cfs. The estimated NPV is $1,588,000 resulting in a payback period of 8.1 years using
the SDG&E Schedule RES-BCT tariff.
Alternative No. 17a - This alternative considers an emerging technology from Zeropex, which
uses a reverse rotary lobe pump. The estimated NPV is $2,624,000 resulting in a payback period of
7.3 years using the SDG&E Schedule RES-BCT tariff.
Project Cost - Table 2 below presents a preliminary project cost estimate using the construction cost
obtained from the Technical Memorandum prepared by Carollo Engineers. Once the design of the
project is complete and final cost estimates are developed, the project costs may be adjusted
accordingly. Funding for the project is appropriated in the Fiscal Year 2010/2011 Capital Improvement
Program in the amount of $2,000,000 from the Water Replacement Fund. Sufficient funds are
available for the completion of the project design and construction. The preliminary estimated annual
operating and maintenance budget for the facility is not established at this time, but a factor of 0.01
$/kW-hr was used in the economic analysis to account for the expense. Because of the technical
nature of the power generating equipment and its control system, the actual operation and
maintenance work will need to be performed by a private company engaged in this type of work and
will be budgeted based on an "Ongoing Service Agreement". The estimated annual operation and
maintenance expense will be determined during the final design phase. Revenue for the first year of
operation is estimated at $80,442/year based on an annual operation of 6,158 hours.
Page 4
TABLE 2
PROJECT COST BUDGET FOR
PRESSURE CONTROL HYDROELECTRIC FACILITY, PROJECT NO. 5025
DESCRIPTION
PRELIMINARY AND FINAL DESIGN. ENVIRONMENTAL. & PERMITS
Preliminary Design, Environmental Documentation (Carollo Engineers)
Final Design, Plans and Specifications (Carollo Engineers)
Construction Support and Miscellaneous Services (Carollo Engineers)
Subtotal
CONSTRUCTION
Estimated Capital Cost from Technical Memorandum
Construction Management & Inspection, Miscellaneous Items, staff support
Subtotal
TOTAL PROJECT COST
CURRENT APPROPRIATION
ADDITIONAL APPROPRIATION REQUIRED
ESTIMATED
COSTS
$161,000
171,000
93,000
$425,000
$680,000
100,000
$780,000
$1,205,000
$2,000,000
$-0-
The current financial status of the PCHF project is shown in Table 3 below.
TABLE 3 - CURRENT EXPENDITURES FOR
PRESSURE CONTROL HYDROELECTRIC FACILITY, PROJECT NO. 5025
TASK DESCRIPTION
Staff
Consultant
Construction
TOTAL
CURRENT YEAR
APPROPRIATION
$100,000
425,000
1,475,000
$2,000,000
CURRENT
FISCAL YEAR EXPENDITURES/
ENCUMBRANCES
$16,003
76,635
0
$92,638
REMAINING
BALANCES
$83,997
348,365
1,475,000
$1,907,362
EXHIBITS:
1.
2.
3.
4.
5.
Location Map
Site Plan
Building Layout
Types of Hydroelectric Generators for PCHF
Resolution No.1404 to Accept the Technical Memorandum dated April 2010 for
the Pressure Control Hydroelectric Facility, Project No. 5025.
LOCATION MAP
PROPOSED
SITE
NOT TO SCALE
PROJECT NAME
PRESSURE REDUCING HYDROELECTRIC FACILITY
ATMAERKLE RESERVOIR
PROJECT
NUMBER
5025
EXHIBIT
1
DRAWN BY: SCOTT EVANS, CARLSBAD ENGINEERING DEPT. 8/18/10 C: \UTlUTIES OEPARTUENT\DESIGN DIVISION\PLUUUER\5025.DWG
EXISTING PRESSURE
REDUCING STATION
EXISTING 10MG
MAERKLE TANK
PROPOSED HYDROELECTRIC
BUILDING
PCHF S f£ PLAN EXH B 2
12" EMERGENCY
OVERFLOW
12"0
HYDRAULICALLY ACTUATED
TURBINE INLET BFV
Figure No. 9
TURBINE BUILDING LAYOUT
PRESSURE CONTROL HYDROELECTRIC
FACILITY AT MAERKLE RESERVOIR
CARLSBAD MUNICIPAL WATER DISTRICT
-V'
Wanton With Water ~
REVERSE TURBINE PUMP GENERATOR
REVERSE ROTARY LOBE PUMP GENERATOR
TYPES OF HYDROELECTRIC GENERATORS FOR PCHF - FIGURE 4
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RESOLUTION NO. 1404
2
A RESOLUTION OF THE BOARD OF DIRECTORS OF
3 CARLSBAD MUNICIPAL WATER DISTRICT, CALIFORNIA, TO
ACCEPT TECHNICAL MEMORANDUM, DATED APRIL 2010
4 FOR THE PRESSURE CONTROL HYDROELECTRIC FACILITY
AT MAERKLE RESERVOIR, PROJECT NO. 5025
5"
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WHEREAS, a Technical Memorandum was prepared by Corollo Engineers for the
Pressure Control Hydroelectric Facility (PCHF) at Maerkle Reservoir dated April 2010; and
WHEREAS, the Technical Memorandum recommends proceeding with final design
based on selecting the hydroelectric generator that best meets the goals and requirements of the
project using either a reverse turbine pump, or a reverse rotary lobe pump, with a total estimated
project cost of approximately $1,205,000; and
11
WHEREAS, on September 22, 2009, by Resolution No. 1376, the Board approved an
12 appropriation in the amount of $2,000,000 for the Pressure Control Hydroelectric Facility at
13 Maerkle Reservoir, Project No. 5025, and
14 WHEREAS, funding for the project is included in the Fiscal Year 2010/2011 capital
improvement program, and sufficient funds are available for the completion of the project design
and construction; and
WHEREAS, staff will prepare plans and specifications for the PCHF based on a final
selection of the hydroelectric equipment, obtain a license from the Federal Energy Regulatory
Commission, and return to the Board for their consideration to authorize advertising to receive bids
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for construction of the PCHF
NOW, THEREFORE, BE IT RESOLVED by the Board of the Carlsbad Municipal Water
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District, California, as follows:
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1. That the above recitations are true and correct.
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2. That the Board accepts the Technical Memorandum dated April 2010, prepared
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by Carollo Engineers, for the Pressure Control Hydroelectric Facility at Maerkle
25 Reservoir, which is available for review at the City Clerk's office.
26 3. Proceed to final design and return to Board for approval of plans and
27 specifications and further processing.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 5th day
of October 2010, by the following vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
ATTEST:
Pressure Control
Hydroelectric Facility
at Maerkle Reservoir
Technical Memorandum
October 5, 2010
Background
•February 2009 –Feasibility Study by Energistics
–Location: SDCWA TAP No. 3 to Maerkle Reservoir
–Type of Generator: Reverse Turbine Pump
–Potential Power: 350 kW
–Payback Period: 9 years
•April 2009 -Presentation to Board
•September 2009 –Carollo Engineers Agreement
•April 2010 -Technical Memorandum
Primary Objectives
of Technical Memorandum
•Estimate PCHF feasibility from engineering &
financial standpoint
•Use report for preliminary design
Types of Turbine Generators
Pelton Francis Kaplan Propeller
Technical Memorandum
Recommendation
•Reverse Turbine Pump hydroelectric –Alt. 16
•Optimum flow: 6.75 cfs
•Operational Flow Range: 6 cfs to 7 cfs
–Existing PR Station required for all other flow rates
•Design Pressure: 134 psi
•Power Produced: 135 kW
•Annual Revenue, 1st Year: $80,442 @ 9¢/kW-hr
•20 Year Net Present Value: $1.6 million
•Payback Period: 8.1 years using “RES-BCT“ Tariff
Project Location
Project Site Looking Northwest
Pressure
Reducing Station
10 MG Tank
Hydroelectric Building Layout
Reverse Turbine Pump Generator
Generator
Inflow Pipe
Reverse
Turbine
Pump
Outlet Pipe
Turbine Pump Showing Reverse Flow
Flow In
Reverse Turbine Pump Animation
Technical Memorandum
PCHF Option
Reverse Rotary Lobe Pump by Zeropex
Flow Range: 1 cfs to 10.6 cfs
Benefit: Acts like a pressure reducing valve
Design Pressure: 150psi
Power Produced: 163 kW
Annual Revenue, 1st Year : $131,000 @ 9¢/kW-hr
20 Year Net Present value: $2.6 million
Payback Period: 7.3 years using “RES-BCT“ Tariff
Rotary Lobe Pump Generator
PUMP
GENERATOR
Rotary Lobe Pump Animation
SDG&E Tariff
Recommended Tariff: RES-BCT
(approved July 2010 by CPUC)
“Generation Credit” allowed up to 50 meters
Carlsbad keeps Renewable Energy Credits
(producers of “green” power can sell REC’s
estimated at 2¢/kW-Hr)
Application: First Come -First Served
Project Cost Estimate
Description Estimated
Cost
Technical Memorandum & CEQA $161,000
Plans &Specifications $171,000
Construction Cost $680,000
Construction Management & Inspec.$100,000
Construction Support & Startup $ 93,000
Total Project Cost $1,205,000
Current Appropriation $2,000,000
Project Schedule
Pre-Select Hydroelectric Generator –3 months
Plans, Specifications & CEQA –6 months
FERC License –8 to 10 months
Bidding/Award –3 months
Construction & SDG&E –6 to 8 months
Begin Operation –January 2013
Recommendations
•Accept PCHF Technical Memorandum
•Proceed to Final Design
Questions?
Flow through Rotary Lobe Pump