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Home My WebLink About09147RESOLUTION NO. 9147 A RESOLUTION FINDING COMPLIANCE WITH THE REQUIREMENTS OF SECTION 2 OF ARTICLE III OF THE ELECTRICAL FRANCHISE BY UTILICORP UNITED, INC. FOR THE CONSTRUCTION OF A NEW PACKAGE BOILER AT ITS PLANT LOCATED AT VICTORIA AVENUE, PUEBLO, COLORADO WHEREAS, pursuant to Section 2 of Article III of the Electrical Franchise granted by Ordinance No. 5222, the franchisee UtiliCorp United, Inc., prior to construction of any facility, shall furnish plans for the facility and assess and report on the impact of its proposed construction on the City's environment, and WHEREAS, UtiliCorp United, Inc. has submitted plans and reports with respect to the construction of a new package boiler at UtiliCorp United, Inc.'s plant located at Victoria Avenue, Pueblo, Colorado (the "Project "). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council hereby finds and determines that UtiliCorp United, Inc. has complied with the requirements of Section 2 of Article III of the Electrical Franchise granted by Ordinance No. 5222 and has submitted the required plans and reports for the Project. The City Council does hereby approve the construction of the Project in accordance with such plans and reports without any other changes thereto requested by the City. SECTION 2 This Resolution shall become effective upon final passage. ATTEST: City Jerk INTRODUCED: November 13, 2000 By Al Gurule Councilperson APPR D: P esident of City Council 105 South Victoria P.O. Box 75 Pueblo, CO 81002 -0075 800- 303 -0752 September 29, 2000 Mr. Dave Galli Assistant City Manager City of Pueblo P.O. Box 1427 Pueblo, Colorado 81002 Dear Dave, WESTPLAINS ENERGY ENERGIDNE In accordance with Article 111, Section 2 of UtiliCorp's franchise agreement with the City of Pueblo, Ordinance 5222, UtiliCorp hereby informs the city of it's desire to place the 1941 generator at the Pueblo Plant back in service and requests approval for construction. The Pueblo 1941 unit was last operated during the summer of 1993 after which it was retired. Reinstatement of the 1941 unit will require construction of a new package boiler to be located in the parking lot between the WestPlains Energy Service Center and the power plant. The new package boiler will be fired using natural gas, the cleanest burning fuel currently available. Air emissions from the boiler will be less than half of the level considered significant by the Colorado Department of Public Health and Environment ( CDPHE). This new boiler will be permitted by the CDPHE under the Station's current Air Operating Permit, and UtiliCorp will be required to demonstrate full compliance with all applicable requirements after installation. Cooling water will be provided to the unit using the existing structures. The cooling water discharge will be regulated under the existing National Pollution Discharge Elimination System ( NPDES) permit for the facility. No changes are expected to the Station's current NPDES permit. If you or any other city executives would like to tour the site and review specific issues concerning the project, please contact me at 546-6482 and I'll be happy to show you around. June 1, 2001 is our target date for commercial operation so time is of the essence for us on this project. I appreciate your timely review and prompt response. Sincerely, Mark E. Even Manager — Technical Support UtiliCorp United, Inc. A Division of UtiliCorp United 105 South Victoria P.O. Box 75 Pueblo, CO 81002 -0075 800 - 303 -0752 October 4, 2000 Mr. Dave Galli Assistant City Manager City of Pueblo P.O. Box 1427 Pueblo, Colorado 81002 Dear Dave, WESTPLAINS ENERGY ENERGY11NE Following up on our September 29 discussion concerning the air emissions for the proposed package boiler at UtiliCorp's Pueblo Plant, the following information is provided as a comparison of emissions. The emissions for the new package boiler are based on information provided from one manufacturer incorporating low NOx (nitrogen oxide) burner technology. Emissions shown for each source are the maximum that the boiler could produce, also known as its potential to emit (PTE). These values can only be achieved if the unit operates continuously for an entire year. This is an unrealistic scenario and the Construction Permit application that UtiliCorp will submit to the Colorado Department of Public Health and Environment is expected to limit these further. *Taken from the Colorado Air Quality Control Commission Common Provisions Regulation, Section 1.G, Definitions. "Significant " means in reference to a net emissions increase or a potential of a sozrrce to emit... Note that the definition of significant includes a number of emissions that are not applicable to gas fired boilers, such fluorides, sulfuric acid mist and hydrogen sulfide. This project represents the least cost alternative for UtiliCorp in meeting the needs of our electric customers as provided for in Article III, Section 1 of the franchise agreement with the City of Pueblo, Ordinance 5222. As before, I appreciate your candid feedback and look forward to your prompt response. If you have any questions, please contact me at 546 -6482. Sincerely, Mark E. Even Manager — Technical Support UtiliCorp United, Inc. A Division of UtiliCorp United New Package Boiler Retired 1941 Unit 1949 Unit Significance Level* PTE (tons) (tons) (tons) (tons) NOx 16.8 147.2 354.9 40 Lead 0.0003 0.0003 0.0006 0.6 PM 4.8 4.0 9.6 25 PM 10 <4.8 <4.0 <9.6 15 S02 0.4 0.3 0.8 40 Ozone 3.5 2.9 7.0 40 (VOC) CO 52.8 44.2 106.5 100 *Taken from the Colorado Air Quality Control Commission Common Provisions Regulation, Section 1.G, Definitions. "Significant " means in reference to a net emissions increase or a potential of a sozrrce to emit... Note that the definition of significant includes a number of emissions that are not applicable to gas fired boilers, such fluorides, sulfuric acid mist and hydrogen sulfide. This project represents the least cost alternative for UtiliCorp in meeting the needs of our electric customers as provided for in Article III, Section 1 of the franchise agreement with the City of Pueblo, Ordinance 5222. As before, I appreciate your candid feedback and look forward to your prompt response. If you have any questions, please contact me at 546 -6482. Sincerely, Mark E. Even Manager — Technical Support UtiliCorp United, Inc. A Division of UtiliCorp United Executive Summary Pueblo 1941 Package Boiler Project UtiliCorp United, Inc. Project Scope • The project calls for construction of a new package boiler at UtiliCorp's Pueblo Plant in order to return the retired 1941 unit to service. The 1941 unit was retired in 1993. The original 1941 boiler is not salvageable. The new package boiler will be installed outdoors on the southwest side of the existing building. Project Cost • $2.4 million dollars Fuel Supply • The Pueblo Plant burns natural gas and no. 2 fuel oil. The new package boiler will be fired using natural gas only, from the existing pipeline into the station. Environmental • Air emission increases for criteria pollutants are considered insignificant by the Colorado Department of Public Health and Environment (CDPHE). Nitrogen oxide (NOx) will be less than 20 tons per year. Carbon monoxide (CO) will be less than 50 tons per year. • No impact on water discharge. No change or modification is anticipated to the station's existing National Pollution Discharge Elimination System (NPDES) permit. Local Employment • 3 or 4 additional full time employees will be added to the Pueblo operations and maintenance staff. Fully qualified operations and maintenance personnel earn $20+ per hour plus benefits. Business Strategy This project will return 9 megawatts of power to service in the WestPlains Energy service territory. Continued growth in the state of Colorado over the last few years has driven the cost of purchase power significantly higher. This project represents the lowest cost option for UtiliCorp and WestPlains Energy to meet the future power requirements of customers in Pueblo and southern Colorado.