San Francisco Electric Reliability Project Given Preliminary OK by CEC

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Researched by Industrial Info Resources (Sugar Land, Texas). The San Francisco Electric Reliability Project moved a step closer to reality as a California Energy Commission (CEC) committee recommended construction of the 145-megawatt plant to improve the reliability of the San Francisco Electric system. Once the $140 million plant is completed, San Francisco Public Utilities Commission (San Francisco, California) proposes to run the facility for not more than 12,000 hours per year. This is one of the steps taken to ensure electric reliability for a power network that serves roughly 740,000. The commission will meet October 3, 2006, to consider final approval for the project.

As proposed, the new plant will be built on a four-acre parcel owned by the City and County of San Francisco located south of 25th Street and approximately 900 feet east of Illinois Street. The plant was initially to be located on the site of Mirant Corporation’s (NYSE:MIR)(Atlanta, Georgia) Potrero Power Station. The new site is roughly ¼ mile to the south of the original project site.

Three simple cycle natural gas fired General Electric LM6000 SPRINT combustion turbine generators will be the generation equipment of choice for the new plant. The generating units to be used for the project were made available due to a settlement between Williams Energy Marketing & Trading Company and a host of other parties including numerous state entities and the City stemming from the California Energy Crisis of 1999-2001. Other key components of the plant will include inlet air chilling & filtration systems, a two-cell cooling tower and exhaust stacks. Environmental controls to limit NOx emissions will include a water injection system, selective catalytic reduction (SCR) units, low NOx combustors and oxidation catalyst.

The San Francisco Public Utilities Commission has selected PB Power (San Francisco), a subsidiary of Parsons Brinkerhoff (New York, New York), as owner’s engineer for the project. PB Power is also providing preliminary design for the new power plant. In August, the project was rebid for an engineering, procurement and construction firm to complete engineering, purchase the remaining equipment and build the plant. Bids close September 29, 2006, with plans to finalize the EPC contract by the end of the year.

Assuming that the project gains official approval from the CEC, construction is expected to begin by the summer of 2007. Completion of the plant and commercial operation is anticipated to occur about a year later in time for summer peak demand periods during 2008. In addition to the Illinois Street project, the Public Utilities Commission is moving forward to construct a simple cycle plant at the San Francisco International Airport. This plant will utilize a single GE LM6000 SPRINT to supply emergency power for the airport and peaking capacity. The airport project is on the same schedule as the Illinois Street project.

These are examples of just two projects aimed to meet energy demands for the region. In May, Pacific Gas & Electric (AMEX:PCGPRA) (San Francisco, California) closed the Hunters Point Generating Station which had supplied the area for 77-years. This was made possible in part due to completion of a new 230kV transmission line to deliver 400MW to San Francisco from the peninsula to the south. The City of Pittsburg and Trans Bay Cable LLC are proposing a 59-mile high voltage transmission line that would run under the bay from Pittsburg to San Francisco. In addition to these the City and County of San Francisco is evaluating other forms of generating electricity including tidal energy.

For more information on future business trends and project spending in the Power Industry, check out Industrial Info’s 2006 Power Industry Forecast.

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