CC/RDA/CUA SPE MIN JUN 29 - Laserfiche WebLink

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The Agua Mansa Site • In 2003, Colton acquired the Agua Mansa site and installed a General Electric LM -6000 unit. • The site is 7.5 acres, with only one acre being utilized for the existing plant • Characteristics of the unit: o Output: 45 MW (gross), 43.8 MW (net) o Efficiency: 36 percent (Heat rate: 10,000 Btu/kWh) o Utilization: 7 percent Agua Mansa Expansion • In October 2007, the City Council directed the utility to: o Begin licensing on a 120 MW generating station (includes two combustion turbines and one steam turbine). • Status: Engineering and environmental resources have been retained. Permitting studies are nearing completion. o Seek partners to share the output of the project. • Status: Despite its efforts in briefing, providing materials to, meeting with, and involving potential participants in project management meetings, Colton does not believe that any participants are sufficiently committed to participate in the project in the foreseeable future. Alternatives Following are the alternatives available to Colton: • Abandon the project. ➢ Not recommended: Colton needs to move forward to develop new resources and improve the performance of the unit at the site. Continue licensing for the two -on -one and continue to work for and hope that potential participants will subscribe to the project. ➢ Not recommended: Colton alone cannot afford the costs of licensing a two -on - one project for the year-long licensing process with the California Energy Commission South Coast Air Quality Management District. • Add another combustion turbine on the site. ➢ Not recommended: Although this could position Colton ultimately to develop the site to a two -on -one configuration, the interim result would be to worsen the existing condition. Instead of having one unit that is underutilized with high fixed costs, we would have two. Add equipment necessary to convert the existing combustion turbine to a combined cycle system (one-on-one). ➢ Recommended: This project will meet Colton's needs and offer the same economic benefits as originally planned. Agua Mansa Expansion • It is still valid for Colton to move forward with the development of the existing Agua Mansa site for these reasons: o The existing unit is underutilized. o Legislation threatens to close down San Juan and other coal plants o Colton's electric demand is growing. o Costs for construction will continue to rise • Colton cannot finance the 120 MW two -on -one expansions by itself. 2008 JULY 29 JT SPC CC/RDA/CUA MEETING - 4 -