5.1. SR 06-18-2007
Item # 5.1.
MEMORANDUM
TO:
Mayor and City Council
FROM:
Lori Johnson, City Administrator
DATE:
June 18, 2007
SUBJECT:
Update from GRE on Peaking Plant
David Ranallo, GRE Project Communications Coordinator, and Vince Herda, Project
Manager/Engineer, will be at Monday's meeting to briefly update the council on the status
of the proposed Elk River Peaking Plant and then briefly talk about the public meeting
schedule and communications activities surrounding the project. Attached are three
handouts from GRE. These are examples of communication fact sheets that GRE will have
at public meetings. Information about the project is also available on GRE's web site.
Great River Energy's service area stretches
across Minnesota, including many areas that consistently
have been leaders in job growth and energy usage. This
growth is expected to continue as will the need for
additional electrical generating capacity.
To meet this need, Great River
Energy plans to construct
the Elk River
Peaking
Station, an
approximately
175 megawatt
(MW) power
generation facility in
the city of Elk River,
Sherburne County.
The plant will be built
on a site already
owned by Great River
Energy. This site
currently includes
Great River
Energy's corporate
headquarters and Elk
River Station, a waste-to-energy facility which uses
refuse-derived fuel to generate up to 40 MW of electricity.
Upon approvals from state and federal authorities,
construction will begin in spring 2008. The plant will
begin providing peaking power in spring 2009 to Great
River Energy's 28 member cooperatives, including
Connexus Energy, which distributes electricity to
Sherburne County and the City of Elk River.
The plant will consist of a simple cycle combustion
turbine. The primary fuel for the facility will be natural
gas, chosen for its low air emissions and ready
availability from a nearby natural gas pipeline.
17845 East Highway 10
P.O. Box 800
Elk River, MN 55330-0800
Phone: 763-241-2200
www.GreatRiverEnergy.com
Meeting future energy needs
During winter months, when the demand for natural gas
is high from home heating and other high priority uses,
the plant will operate on ultra low sulfur fuel oil.
The Elk River Peaking Plant will normally be operated
during times of peak electrical demand, which generally
occur during periods of very high or very low
temperatures. In addition, Great River Energy
occasionally may be called upon to operate the facility to
support voltage on the area's transmission grid or for
other grid support functions. Great River Energy
anticipates that the peaking plant will operate between
500 and 1,100 hours per year. Most operation will occur
during summer periods of significant air conditioner use.
Elk River Peaking Plant, which will generate
about 175 megawatts of electricity, will
resemble the generating unit pictured above.
GREAT RIVER ENERGy@B
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5/24/07
Great River Energy plans to hire two to three full-time
employees to perform maintenance tasks and monitor
operations at the site. This staff will be supplemented with
operators from other Great River Energy facilities during
periods of extended hot or cold weather.
TRANSMISSION FACILITIES
In conjunction with the construction of the Elk River
Peaking Plant, area transmission lines will be rebuilt
and/or upgraded. The project will include improvements to
approximately 6 miles of existing 69-kV transmission line
in the area. The voltage of these lines will remain the
same, and the improvements will require no new corridors.
Improvements may include changing the poles and
upgrading the wire size to improve the overall operation
and reliability of the Elk River area transmission system.
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The photo above shows a
typical existing
transmission line. The
photo to the right depicts
a typical upgraded
transmission line for the
project.
ABOUT THE LOCATION
The Elk River site was selected for several reasons. An
existing Great River Energy generating facility is
already located at the site, making for efficient
operations. The Elk River Peaking Plant will be
constructed on land Great River Energy currently owns;
no additional land purchase is needed.
The site is in close proximity to an existing natural gas
pipeline so that only a relatively short section of new
pipeline will be needed. By expanding the existing
substation on the site, regional and local area
transmission systems will benefit without construction of
new transmission lines.
PROPOSED PROJECT TIMELlNE
File permit May - June 2007
applications
Obtain plant permits
Begin construction
Transmission
upgrades complete
Plant start-up
March - April 2008
April 2008
March 2009
May 2009
ABOUT GREAT RIVER ENERGY
B
Great River Energy is a not-for-
profit wholesale electric GREAT RIVER
cooperative, serving 28 distribution ENE R G V'
cooperatives in Minnesota and
covering 60 percent of the state,
geographically. It is the second largest power supplier
in Minnesota.
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Over the past 1 0 years, Great River Energy's peak
electrical demand has grown an average of 5 percent
per year. By comparison, national electric usage grew
at just over 2 percent per year, according to the
Energy Information Administration.
For more information about this project and Great
River Energy, visit www.GreatRiverEnergy.com or call
763-241-2200.
Elk River Peaking Station will be located on a site Great
River Energy already owns with close proximity to a
natural gas pipeline.
Elk River Peaking Station
Decibel Levels of Common Noise Sources
Many different properties affect the noise level of a specific source type. For example, three
lawn mowers may have three different noise levels because of differences in each specific piece of
equipment. Noise level also depends on the distance from the noise source and the attenuation of
the surrounding environment.
Here's a rough estimate of decibel levels of some common noise sources:
Decibel Levels of Common Noise Sources
50
40-50
40
30
20
Noise Source
Jet Engine (at 75 feet)
Jet Aircraft (at 300 feet)
Rock and Roll Concert
Pneumatic Chipper
Jointer/Planer
Chainsaw
Heavy Truck Traffic
Business Office
Conversational Speech
Proposed Elk River Peaking Station (at
nearest residence)
Library
Typical Substation
Bed room
Secluded Woods
Whisper
Sound Pressure Level (dBA)
140
130
120
110
100
90
80
70
60
50
From: A Guide to Noise Control in Minnesota, Acoustical Properties, Measurement, Analysis,
Regulation, Minnesota Pollution Control Agency, March 1999 and After Noise Pollution, U. s.
Environmental Protection Agency, August 1972.
A 1OOclut_ Enersv' Cooper.tiY< IS!?
17845 East Highway 10
P.O. Box 800
Elk River, MN 55330-0800
Phone: 763-241-2200
www.GreatRiverEnergy.com
GREAT RIVER ENERGY~
6/14/07
Benefits to the community
Improve area transmission reliability
Transmission improvements associated with Elk River Peaking Station will help improve
transmission system reliability. The plant will provide substantially greater voltage stability and
increase electric transmission reliability for Elk River, Sherburne County, and the surrounaing area.
Reliability also will be enhanced by upgrading three area 69-kV transmission lines that have dated
equipment, which currently provides liUle prolection from lightning strikes. The updated lines are
designed to survive more extreme ice and wind conditions, and the design will service surrounding
communities into the future. Elk River Peaking Station is strategically located, so that
interconnection to these lines easily can be easily accomplishea.
Minimize impact to neighbors & the environment
Elk River Peaking Station utilizes natural gas as its primary fuel and ultra low sulfur diesel as
its alternate fuel. These are relatively clean fuels which, in combination with state of the art
combustion technology, have minimal impact to the environment. Peaking facilities have a lower
environmental impacf than other types of generating facilities due to their lower operating hours
(peaking facilities typically operate between 5 and 10 percent of the timet during periods of extreme
heating or cooling needs). The natural gas pipeline which will be construcled to service the Elk River
Peaking Station will be routed through existing developed lots, and thus will provide negligible
environmental impact. Additionally, fhe grojecl will be constructed on land already ownedoy Great
River Energy. This land is the site of GRE's existing refuse-to-energy facility in ElK River.
Improve the region's energy supply
Maintaining the economic health of a region is degendent on having reliable, low-cost
electricity. This project is the best alternative to provide Great River Energy's member coogeratives,
including Connexus Energy, with the peaking resources to meet energy needs of the city of Elk River,
Sherburne County and the surrounding region.
Bring ggod jobs to the community
ihe aay-to-day operation of Elk River Peaking Station will require two to three full-time
employees. During construction of thep1an:t aQProxlmately 100 skilled craft workers will work at the
site, most of them for about one year. The t.Ik River community will benefit by the revenues
generated during construction ana operation of the plant.
Help the city of Elk River grow
As a part of the hos1 agreement with the city of Elk River, GRE will transfer approximately 1.5
acres of lana to allow the most economical expansion of the city's wastewater treatment facility when
the need arises.
Pay taxes
Elk River Peaking Station and th~ associated natural gas line and transmission upgrades for
the ~acility will generate approximately ~310,000 in property taxes. annually, provide9 the project
receives a personal property tax exemption from the State. Great River Energy also Will pay a nost fee
to the city of Elk River and Sherburne County during the projects first five years of operation.
Bring a good neighbor to the community
We're a good neighbor. Great River Energy has partnered and will continue to partner with the
city of Elk River. We hold ourselves to high ethical standards, and we promote trust and social and
environmental responsibility. We also value open and honest communication. We take our role as a
neighbor seriously; just ask them.
17845 East Highway 10
P.O. Box 800
Elk River, MN 55330-0800
Phone: 763-241-2200
www.GreatRiverEnergy.com
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GREAT RIVER ENERGY@
6/14/07
Elk River City Council
June 18
.GREAT RIVER ENERGY.
· GRE Board Approval
· GRE Member Approval
· Purchase Combustion Turbine
· Engineer Contract awarded
· Sign NNG pipeline agreement
· Submit permit applications
· Approvals & Permits Obtained
· Plant Construction Start
· Commercial Operation
February 2007
March 2007
April 2007
April 2007
June 2007
May-June 2007
March 2008
March-April 2008
May 2009
.GREAT RIVER ENERGY@
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· Certificate of Need
:J Public Meeting, July 31
· Site Permit
:J Public Meeting, July 31
c.J Public Hearings
· Draft Environmental Report Meeting
· Contested Case Hearing
· Air Permit (MPCA)
.GREAT RIVER ENERGY'
· Public Meeting Materials
:J Fact Sheet, Benefits to Community, etc.
· Media Relations
· Community Leader Briefings
· Project Website Page
· Neighbor Visits
· Letters to Neighbors
.GREAT RIVER ENERGY"
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· www.areatriverenergv.com
d Projects
· Power Plants
- Elk River Peaking Station
· Fact Sheet, CON, Announcements
· Contact us
.GREAT RIVER ENERGY~
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