SCPPA is Ready for Construction of 310 MW Magnolia Power Project

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Southern California Public Power Authority (SCPPA) (Pasadena, California) has selected Kvaerner Engineering & Construction (San Ramon, California), a subsidiary of Aker Kvaerner ASA (OTC: KVNRY.PK) (Lysaker, Norway) as engineering and construction contractor for a 310 megawatt (MW) addition at member City of Burbank's Magnolia Site. Cleveland Wrecking (Covina, California), an affiliate of URS Corporation (NYSE: URS) (San Francisco, California) will demolish retired units Magnolia 1 and 2.

Demolition and asbestos abatement was started by Cleveland Wrecking on April 1, 2003 and according to Fred Fletcher Assistant General Manager/Power for City of Burbank they should be completed by the end of May. Kvaerner is scheduled to start construction on June 10, 2003 and be complete by May 25, 2005.

The new natural gas-fired combined-cycle unit is to consist of General Electric turbine/generators (combustion and steam) and an Alstom HRSG (heat recovery steam generator). The new plant will use gray water (reclaimed water) and will have zero liquid discharge. To meet air quality regulations the unit will utilize Dry Low NOx combustors, Selective Catalytic Reduction (SCR), CO Catalyst and water injection on Duct-Burners for HRSG. Mr. Fletcher also indicated that they were in the process of renovating the Olive 1 and 2 boilers on the same site.

The SCPPA is a joint powers authority consisting of ten municipal utilities and one irrigation district. SCPPA members deliver electricity to approximately two million customers over an area of 7,000 square miles, with a total population of 4.8 million. The Members include the municipal utilities of the cities of Anaheim, Azusa, Banning, Burbank, Colton, Glendale, Los Angeles, Pasadena, Riverside, and Vernon, and the Imperial Irrigation District, and Cerritos. SCPPA was formed in 1980 to finance the acquisition of generation and transmission resources for its members. Currently, SCPPA has three-generation projects and three transmission projects, bringing power from Arizona, New Mexico, Utah, and Nevada.

The Magnolia Project has six members participating in this project: Anaheim 38%, Burbank 31%, Glendale 17%, Pasadena 6% plus Colton and Cerritos with 4% each. The TIV (Total Investment Value) for the project is $234 million, of which $112 million goes to Kvaerner. Operating costs are to be $8-10 million range, plus the cost of natural gas.

Mr. Fletcher said that in order to meet future energy demands they are analyzing renewable resources, wind, and green waste (Biomass). He stated that with the waste groups having to haul green waste out of state that it could be used in gasification process and fuel combustion turbine/generators.