Title
Kelly Repowering Project Approval (B)
Explanation
On November 30, 1998 staff gave the Commission a presentation on a proposal to upgrade Kelly #8 from its current configuration as a conventional gas/oil fired boiler and steam turbine generating unit to a modern high efficiency low emissions gas fired combined cycle generating plant by repowering Kelly #8 with a combustion turbine and a heat recovery steam generator. At that meeting the Commission authorized GEAC to conduct a series of community meetings to discuss the energy related aspects of the proposed project and make a report to the Commission. Contingent on GEAC's report to the commission being supportive of the project, staff is requesting project approval at this time.
With approval of item three (3) recommended, staff will be able to execute a contract with an engineering firm to complete project design and engineering work. The selection of the engineering firm was accomplished by using the list of qualified firms from the Deerhaven Combustion Turbine #3 (DHCT3) Project and inviting those firm to submitt Qualifications and Technical Prposals. Four responded and were ranked for this project. A listing of the ranked firms is attached.
Approval of item four (4) recommended above will allow staff to negotiate with General Electric (GE) and execute a contract for the purchase of the 7EA combustion turbine. This turbine has been chosen because it provides the best thermodynamic fit for the repowering and we have three years of operation and maintenance with a similar machine (DHCT3). The combustion turbine has the longest lead time of any item required for this project. Production capacity is very limited to build these machines and the demand for combustion turbines is growing rapidly. This makes it imperative that staff be able to finalize this order with GE to assure our place in GE's production line.
Staff anticipates bringing other contracts for major components and construction...
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