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HomeMy WebLinkAboutResolution - 959 - Consultation Contract -Metcalf And Eddy - Resource Recovery Plant Study - 11/12/1981!' RESOLUTION 959 - 11/12/81 :cl BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK-. THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Consultation Contract for Resource Recovery Plant Study between the City of Lubbock, Texas, and Metcalf & Eddy, Inc., attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail.+ Passed by the City Council this 12th day of ,1981. C 1 ILL MMICStER7, MAYOR ATTEST: Evelyn Ga ga, City S c PROVED AS TO CONTENT: arroll McDonald, Director lectric Utilities PPROVED AS TO FORM: ., W. Reagan, AAsiptant City Attorney RESOLUTION 959 - 11/12/81 CONSULTATION CONTRACT FOR RESOURCE RECOVERY PLANT STUDY BETWEEN THE CITY OF LUBBOCK, TEXAS AND METCALF & EDDY, INC. This contract, entered into by and between the City of Lubbock, Texas, hereinafter called City, and Metcalf & Eddy, Inc., hereinafter called Metcalf & Eddy, witness: Whereas, the City is desirous of obtaining additional studies of a Resource Recovery Plant whereby waste material would be burned as fuel to produce elec- tricity by its municipally owned utility known as Lubbock Power & Light, and Whereas, Metcalf & Eddy represent that they have sufficient experienced personnel and equipment to perform the study set forth in this contract, and the City desires Metcalf & Eddy to perform the study herein described in re- spect to such Resource Recovery Plant. Now, therefore, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: I. Scope of Services The study will refine and analyze estimates of the costs and probable returns of a Resource Recovery Plant which would burn waste material as fuel to produce electricity. The type of Resource Recovery Plant to be studied consists of 3 spreader-stroker waterwall boiler units, each rated to burn 400 tons per day of refuse derived fuel (RDF) from approximately 465 tons per day of unpro- cessed solid waste. The boiler units are to operate on a 24 hour per day, 7 days per week, 365 days per year schedule. Such boilers are to be equipped ✓ with electrostatic precipitators to meet the Texas Air Pollution Control codes. There will also be multiple front end shredding trains with ferrous removal to coordinate with the boiler units. The boiler units are to provide steam at 600 pounds per square inch gauge (psig) and 750° F. to either of the two existing 1.1.5 megawatt turbine generator units in the Lubbock Power & Light Plant No. 2 or in new dedicated turbine generator units. Metcalf & Eddy will specifically execute and prepare the following studies, projections, and tasks: a. Detailed estimates of the construction costs of the Resource Recovery Plant:.as described above. b. Detailed estimates of the costs and effects of supplying the steam produced to the existing 11.5 megawatt turbine generator units in the Lubbock Power & Light Plant No. 2 including the effects of derating these turbines from the current 825° F. C. Detailed estimates of the costs of construction of new turbine gen- erator units which would be matched to the output of the boilers to gen- erate electricity from the steam produced in the Resource.'Recovery Plant described above. d. For each of the combinations of paragraphs a & b and paragraphs a & c, operation cost will be estimated including labor, fringe benefits, normal and expected maintenance costs, and the cost of disposal of ash and noncombustible materials. e. For each of the combinations of paragraphs a & b and paragraphs a & c, estimates will be made of all indirect costs and such costs as engineering, program management, financing costs, interest during construction, reserve, and start up costs. f. Using the information developed in paragraphs a through e, spread sheets will be prepared showing the yearly costs to operate, expected returns, and the derived tipping fees for solid waste disposal for the 5 years of 1985 through 1989 for each of the 2 alternatives outlined in paragraphs a & b and paragraphs a & c. For each alternative, comparisons will be made based on electric energy sale prices derived from the continued operation of Lubbock Power & Light Plant No. 2 on gas at the projected natural gas prices and the sales prices from projected power pool figures. g. The data from the spread sheets will be plotted on charts showing the derived tipping fees versus years. h. A schedule for the design and construction of the Resource Recovery Plant will be prepared. i. A table will be prepared showing a suggested distribution of charges. This table will distribute the cost of the plant operation between revenue streams from the sale of the electricity and tipping fees. j. A short report will be prepared summarizing the technology and tables will be included to shou the costs and returns to City from the Resource Recovery Plant. k. The report describd in paragraph j will contain a detailed description J of the method and the '�stification for the use of such method used in ar- riving at the projected natural gas prices used in performing the services and studies outlined inIthis contract. 1. Twenty copies of the studies, tables, charts, and documents prepared under this contract,.will be sent to the City. II. Information and Data to be Used. The following information and data is to be used by Metcalf & Eddy in per- forming their services and studies under this contract: 1. The total solid waste (residential, commercial and industrial) gen- eration rates for the current year and the 5 -year study period are as follows: Total Solid Wastes Year TPD (1) Annual, tons 1981 813 297,000 1985 867 316,000 1986 882 322,000 1987 897 327,000 1988 912 333,000 1989 927 338,000 2. The higher heating value for the Paragraph 1 solid wastes is 4,500 Btu (British thermal units) per pound. 3. Natural gas prices are projected as follows (Wellhead average pricing): Year $/1,000 cu ft 1981 2.65 (City data) 1985 5.00 1986 8.00 1987 9.50 1988 10.75 1989 11.80 4. A site near the existing LP&L power plant is available if the exist- ing turbine -generator units are to be used. 5. When analyzing the new dedicated turbine -generator alternative, we will assume a condensing, regenerative feedwater heating type unit generally similar to the existing units. 6. Our analysis assumes that the City will direct the total solid wastes listed above to the proposed Resource Recovery Plant. III. Information and Data provided by City. The City, by and through its municip al•owned utility Lubbock Power & Light, will provide the information which is requested in writing by Metcalf & Eddy on the efficiency of the existing turbines at Lubbock Power & Light Plant No. 2 and on the prevailing labor rates and fringe benefits for the City. IV. Compensation. Metcalf & Eddy will provide the scope of services herein provided for a firm fixed fee of Five thousand and no/100 Dollars ($5,000.00). The fee or I compensation will be paid by the City upon the completion by Metcalf & Eddy of all services herein to be performed by it. V. Independent Contractor Relationship. Nothing herein shall be construed as creating a relationship of employer and employee between the parties. The City shall not be subject to any obli- gations or liabilities of Metcalf & Eddy incurred in the performance of this contract unless otherwise herein authorized. Metcalf &.Eddy expressly agrees to indemnify and hold harmless the City from any and all liabilities and obli- gations incurred due to the negligence of Metcalf & Eddy of its employees. VI. Termination. Either party hereto may terminate this contract if the other party is responsible for a breach thereof and fails to correct such breach for a period of 10 days after receipt of written notice to correct same. VII. Notice. Any notices or written requests required under this contract shall be sufficient if sent by certified mail, return receipt requested, to the City at the following address, Carroll McDonald, Director of Electric Utilities, P.O. Box 2000, Lubbock, Texas 79457, and to Metcalf & Eddy at the following address, Metcalf & Eddy, Inc., 50 Staniford Street, Boston, Massachusetts 02114. VIII. City Representative. The City designates as its representative under this contract Carroll McDonald, Director of Electric Utilities. The City's representative will conduct all communications, notices and written requests on behalf of the City with Metcalf & Eddy. IX. Liability and Cancellation Rights. Metcalf &'Eddy warrants its work will be performed according to the terms of this agreement and in the best of its professional.capacity under the con- ttrol of one or more principals experienced in the services outlined herein. Metcalf & Eddy warrants that it will apply best efforts to obtain the results herein contracted for by the City. X. Law Governing the Contract. The parties hereto agree that the status of this agreement and the law governing its interpretation is the State of Texas and the laws of that State. XI. Time of performance. The services of Metcalf & Eddy are to commence on or about the date this contract is entered into and shall be undertaken and completed in such sequence as to assure the expeditious completion and rendition of such services as re- quired by this contract. Metcalf & Eddy are to complete all services required by this contract within 8 weeks from the date of execution of this contract. Time is of the essence. Signed and entered this 12th day of November , 1981. METCALF & EDDn, INC. Senior V resident ATTEk: Assistant Secretary ATTEST: E elyn G fga, Cit S ary-Treasurer APPROVED AS TO CONTENT: d Carroll McDonald, birector Electric Utilities APPROVED AS TO FORM: David W. Reagan, Ass ty Attorney CITY OF LUB r � B L Mc ISTE , MAYOR No Text TABLE OF CONTENTS i METCALF & EDDY Page LETTER OF TRANSMITTAL LIST OF TABLES LIST OF FIGURES v LIST OF ABBREVIATIONS vi EXECUTIVE SU14MARY vii REPORT CHAPTER 1 - INTRODUCTION 1-1 Background 1-1 Purpose 1-2 Scope 1-2 Introduction to Solid Wastes and RDF 1-3 Organization 1-4 CHAPTER 2 - CONCLUSIONS AND RECODMENDATIONS 2-1 Conclusions 2-1 Recommendations 2-1 CHAPTER 3 - ALTERNATIVE RESOURCE RECOVERY PLANTS 3-1 Introduction 3-1 Background Information 3-2 Alternative No. 1 - 11395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator) 3-13 Alternative No. 2 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) 3-28 Economic Analysis 3-36 Impact of Projected Power Pool Figures 3-45 Distribution of Charges 3-47 Environmental Impacts 3-48 Land Requirements 3-50 i METCALF & EDDY TABLE OF CONTENTS (Continued) APPENDIXES APPENDIX A - ESTIMATED PERFORMANCE OF EXISTING TWO TURBINE GENERATORS APPENDIX B - PROJECTION OF NATURAL GAS PRICES ii Page A-1 B-1 i LIST OF TABLES Table Page 3-1 Estimated Annual Labor Costs for the Proposed Resource Recovery Facility (Cost in November 1981 $) 3-10 3-2 Estimated Capital Costs for Alternative No. 1 - 19395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator) (x $1,000) (Cost in November 1981 $) 3-23 3-3 Estimated Total Bond Issue Build -Up Details for Alternative No. 1 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator) (x $1,000) 3-24 3-4 Estimated Annual Income Statement for Alternative No. 1 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator) (x $1,000) (Cost in November 1981 $) 3-26 3-5 Estimated Capital Costs for Alternative No. 2 - 1095 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) (x $1,000) (Cost in November 1981 $) 3-32 3-6 Estimated Total Bond Issue Build -Up Details for Alternative No. 2 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) (x $1,000) 3-33 3-7 Estimated Annual Income Statement for Alternative No. 2 - 1095 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) (x $19000) (Cost in November 1981 $) 3-34 3-8 Economic Analysis for Alternative No. 1 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator) 3-40 iii METCALF & EDDY LIST OF TABLES (Continued) Table Page 3-9 Economic Analysis for Alternative No. 2 - 1,395 tpd Solid Waste Processing Plant and -' Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) 3-42 3-10 Impact of Projected Power Pool Figures on Economic Analysis of Alternatives No. l and 2 3-46 3-11 Suggested Distribution of Charges for Alternative No. 1 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine -- Generator) (x $1,000) 3-49 APPE14DIX TABLES B-1 Projected Prices of Crude Oil B-2 r. iv LIST OF FIGURES t ; Figure Page 3-1 Diagram and Material Balance for a Spreader- Stoker Boiler Plant with Front End Fuel Preparation System 3-15 ` 3-2 Power Generation Cycle for Alternative No. 1 with New Turbine Generator 3-19 3-3 Estimated Turbine Generator Performance, Alternative No. 1 - New Unit 3-29 3-4 Estimated Turbine Generator Performance, Alternative No. 2 - Existing Units at Reduced Throttle Steam Temperature 3-37 3-5 Comparison of Results of 5-yr. Economic Analysis for Alternatives No. 1 and 2 and Disposal in a Sanitary Landfill 3-43 APPENDIX FIGURES A-1 Estimated Turbine Generator Performance, Alternative No. 2 - Existing Units at Present Steam Conditions A-3 C �j v .:' METCALF & COOY LIST OF ABBREVIATIONS bbl barrel Btu British thermal units Btuh British thermal units per hour Btu/lb British thermal units per pound cf cubic foot cy cubic yard deg F degree Fahrenheit hp horsepower hr hour(s) kw kilowatt(s) kwh kilowatt-hour lb pounds lb/hr pounds per hour LP&L Lubbock Power & Light M&E Metcalf & Eddy Mlb thousand pounds Mlb/yr thousand pounds per year MMBtuh million British thermal units per hour psig pounds per square inch gage RDF refuse -derived fuel tph tons per hour tpd tons per day tpw tons per week tpy tons per year yr year M thousand MM million vi 0 EXECUTIVE SUMMARY Metcalf & Eddy has completed a desk -top analysis of the two proposed options for a resource recovery facility in the City of Lubbock. Metcalf & Eddy has utilized the data available from previous reports together with the latest projections for natural gas prices, and has generated new cost estimates for equipment and construction. Metcalf & Eddy has produced comparisons of the owning and operating costs for the resource recovery facility generating electricity utilizing Lubbock's solid waste as fuel. The two options are for a new 30 megawatt turbine generator or for the use of existing turbine generators in Lubbock Power and Light Plant No. 2. A comparison of income streams has been developed, and one proposed distribution has been presented. It is the conclusion of Metcalf & Eddy's staff that the proposed resource recovery facility is technically viable and economically attractive. Even using the most conservative estimates of alternative energy costs, the facility will generate significant income for the City of Lubbock over the initial 5 -year operating period. In future years the economic benefits to the City will continue to grow. vii METCALF 8 EDDY REPORT r CHAPTER 1 INTRODUCTION Background The City of Lubbock, Texas (City) has been considering resource recovery for several years for the following principal reasons: 1. Recognition that increasing stringency of enforcement of the 1976 Resource Conservation and Recovery Act, and other Federal legislation, will substantially increase the cost and complexity of disposal by landfill methods. These trends suggest that it will become more economical to recover energy and materials than to bury solid wastes in landfills. 2. A realization that disposal of solid wastes by burial is not consistent with national objectives for conser- vation of scarce energy resources and for recycling or conversion of those materials that can be recovered from solid wastes. 3. An appreciation that the City -owned utility, known as Lubbock Power & Light (LP&L), should consider solid wastes as a locally generated and dependable fuel alternative to the presently used natural gas and oil because of the rapidly rising costs and uncertain availability of these fuels. 1-1 METCALF, 6 EDDY 1 1 1 In recognition of these and other concerns, the City has already executed several studies of a solid waste resource -. recovery project, so that considerable data are available. ' On November 12, 1981, the City engaged Metcalf & Eddy, Inc. (M&E) of Boston, Massachusetts to perform additional studies of a Resource Recovery Plant whereby solid wastes would be burned as fuel to produce electricity for LP&L. , Purpose The purpose of this study and brief report is to submit a desk -top analysis to assist the City in making a decision relative to proceeding with a Resource Recovery Plant. This analysis will use data largely available to M&E now and will refine the first order estimates of costs and probable returns from the three boilers, spreader -stoker, electricity generating option selected by the City as the most appropriate of three options previously presented by M&E to members of the City Administration. Scope The Contract between the City and M&E outlines the scope of the study. The scope of work is summarized as follows: 1. Make estimates of capital costs, indirect costs, preliminary total bond issue, operation costs, derived tipping fees, and spread sheet economic analyses for the 5 years of 1985 through 1989 for Alternative No. 1 — Solid Waste Processing Plant and Spreader -'Stoker. Boiler Plant with Electricity Generation (New Turbine Generator). Make comparisons based on electric energy 1-2 r sale prices derived from the continued operation of LP&L Plant No. 2 on gas at the projected natural gas u,. prices and the sales prices from projected power pool prices. Plot the data from the spread sheet on a chart showing the derived tipping fees versus years. Prepare a table showing a suggested distribution of the cost of !! plant operation between revenue streams from the sale E. of electricity and tipping fees. 2. Make similar estimates for Alternative No. 2 - Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators). The two turbine generators are installed in the LP&L Plant No. 2. 3. Prepare a schedule for the design and construction of the Resource Recovery Plant. 4. Prepare twenty copies of the study report and send them to the City. Introduction to Solid Wastes and RDF This study report includes several references to solid wastes and RDF (refuse -derived fuel). These terms are commonly r being used in current publications, technical articles, and reports. As used in this study report, solid wastes include all MM waste materials generated from residential, commercial and industrial sources and delivered to landfills for disposal. Solid wastes refer specifically to the variety of waste materials that 1-3 METCALF & EDDY I II I I are expected to be delivered to a resource recovery facility for disposal. Specifically excluded are agricultural wastes, demoli- tion and construction wastes, stumps, street sweepings and sludge cake. RDF refers to a solid fuel prepared as the end product of a solid waste processing system. The solid waste processing systems vary widely from simple systems, involving single shredding and magnetic separation only, to sophisticated systems with such' additional features as: air classifiers to refine the shredded fuel by improving the separation of glass, metals, and other non - combustibles; recovery of the separated materials for recycling or -- conversion; rotary dryers; screens; and double shredding. The term "refuse" is often used interchangeably with the term "solid wastes". To avoid confusion, the term "refuse" is not used in this report except for "refuse -derived fuel" abbreviated RDF, as explained and defined previously. Organization The following study report develops conclusions and recommendations about the feasibility of the proposed Resource Recovery Plant. It includes consideration of the subjects summarized under Scope and arrives .at a "go" recommendation to the City. 1-4 CHAPTER 2 CONCLUSIONS AND RECOMMENDATIONS The principal conclusions and recommendations resulting from this study are summarized below: Conclusions 1. The proposed resource recovery facility is the preferred solution for disposal of the City's solid wastes in comparison with a sanitary landfill. 2. The proposed resource recovery facility would generate electricity to be used by Lubbock Power & Light. 3. Revenue bonds appear to provide the most favorable means for financing the resource recovery facility. 4. Disposal of the City's solid wastes in a resource recovery facility is environmentally more acceptable than by a sanitary landfill. 5. A site for the resource recovery facility is available adjacent to Lubbock Power & Light. Recommendations 1. Alternative No. 1, a 1,395 tpd solid waste processing plant and spreader -stoker boiler plant producing electricity with a new 30,000 kw turbine generator, is recommended as the first choice by the City. Initially, Alternative No. 1 results in a higher net tipping fee than Alternative No. 2, which utilizes the existing two turbine generators in Lubbock Power & Light Plant No. 2. Within approximately 6 years 2-1 METCALF & EDDY i i II I i however, Alternative No. 1 would become more cost-effective. Also, due to the age of the two existing turbine generators, problems may be encountered in the bonding procedure if Alternative No. 2 were chosen. For these reasons, it is recommended that the City of Lubbock proceed with Resource Recovery Alternative No. 1. 2. The resource recovery facility should be operated by the City of Lubbock. '- 3.� The City should expedite the procedure leading to the construction of the facility. The implementation of the program should follow as closely as possible a proposed accelerated schedule for development and construction which will be submitted shortly as a part - of our proposal for ongoing services to the City. 2-2 1` t CHAPTER 3 ALTERNATIVE RESOURCE RECOVERY PLANTS Introduction Two alternative Resource Recovery Plants were stipulated by the City for technical and economical analysis and are identi- fied as follows: Alternative No. 1 - Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator) Alternative No. 2 - Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) The City's selections were based on evaluations of the sev- eral alternative resource recovery systems in studies previously executed by the City. The basis of each plant's size selection is explained under the description of the specific alternative. The results are used to size the various process equipment in order to estimate the capital costs and the annual income statement which presents the annual expenses, revenues, net disposal costs and net tipping fees for the base year 1981. Spread sheets are presented showing the economic analysis for the base year 1981 and for the five years of 1985 through 1989• 3-1 METCALF & EDDY Background Information Operating Schedule. For the purpose of this study, steam generating equipment and turbine generator (or turbine generators) are assumed to operate 24 hours per day, 7 days per week. The solid waste processing plant is assumed to operate normally for two 8 -hour shifts per day, 6 days per week to match the 6 days per week delivery of solid wastes to the plant. A storage capacity for RDF from the solid waste processing plant is provided to synchronize the operating schedules of the two systems. Equipment Availability. Equipment availability is defined as the percent of the time in an operating year during which the equipment can be operated at the rated capacity. The front end solid waste processing plant consists of two lines, each capable of processing one-half of the daily load of solid wastes for the boiler plant in normal operation during two 8 -hour shifts. The actual operating time of the processing lines for each 8 -hour shift is estimated to be between 5 to 5 1/2 hours with the balance of each shift allotted to startup and shutdown time. The actual percent availability of the solid waste -- processing plant is 100 percent at least through 1989, based on operating one line at its maximum rating for three 8 -hour shifts, 6 days per week, under emergency conditions if the other line is not available. For the steam generating units, the quantities of RDF r-, burned are based on a boiler unit availability of 85 percent for the spreader -stoker boilers at rated capacity. Alternatives No. 1 3-2 and 2 consist of three boiler units. With 85 percent boiler unit availability, each boiler unit is expected to be down for 15 percent of the year or 55 days per year due to scheduled maintenance and repairs and forced outages. Of the 55 days per year per boiler unit downtime, approximately 31 days are allowed for scheduled maintenance and repairs and 24 days for forced outages. The 31- day period for scheduled maintenance and repairs assumes one 21- day period for major repairs and inspection followed in approximately 6 months by a 10 -day period for minor repairs and inspection. With three boiler units, there are 165 days per year when only two boiler nits 0 y p y y u are operating and 2 0 days per year when the three boiler units are operating. It is assumed that only one boiler unit is down at any time for scheduled maintenance and repairs and forced outages. The turbine generator (or turbine generators) is assumed to have a unit availability of 96 percent with each unit to be down for 4 percent of the year or 14 days per year due to scheduled maintenance and repairs and forced outages. Solid wastes generated during the turbine generator down- time or in excess of the plant capacity must be landfilled. Availability should be recognized as a major factor because it impacts both project steam and electricity production and solid waste disposal, and therefore, the overall plant economics. The net economic effect is a reduction in theoretical steam and electricity production and solid waste incineration. Availability is assigned as a result of experience and knowledge of what is 3-3 METCALF 6 EDDY necessary to properly maintain a particular type of facility in peak operating condition. Steam Condition at Boiler Superheater Outlets. The boiler superheater outlet pressure and temperature are specified at 650 psig and 755 deg F. Based on operating experience and corrosion theories agreed upon by various authorities, ME is adhering to a 750-755 deg F steam temperature limit for solid waste fired -- boilers to minimize any potential boiler corrosion problems. The boiler outlet steam pressure and temperature and the steam pressure and temperature at the steam pipeline's terminal end (steam and boiler feed pipelines for Alternative No. 2 only) are specified in the Technical Description of each alternative plant. The steam and boiler feed pipelines for Alternative -No. 2 are underground type. Heating Value of Solid Wastes. The higher heating values of unprocessed solid wastes, RDF and other fuels are used through- out this study report. An explanation of higher heating value versus lower heating value follows. Water vapor is one of the products of combustion for all fuels, such as solid wastes, which contain hydrogen. The heating value of a fuel depends on whether this water vapor is allowed to remain in the vapor state or is condensed to liquid. In the bomb calorimeter used to obtain the heating value of a fuel by test, the products of combustion are cooled to the initial temperature and all of the water vapor formed during combustion is condensed to a liquid. This gives the higher heating value of the fuel with 3-4 the heat of vaporization included in the report value. For the lower heating value, it is assumed that all products of combustion remain in the gaseous state. Plant Description. Each alternative plant is intended to be a complete facility and includes at least the following buildings, areas, roads and equipment: Enclosed processing building or buildings kept under negative pressure to prevent dust and odors from escap- ing outside. The air sweeping the process areas is used for combustion air for deodorization purposes. Tipping floor is enclosed. The combined capacity of the tipping floor and RDF storage facility provides storage for at least three days' average solid waste deliveries. Administration building with office space, locker room and shower area, maintenance facility, truck storage and garage area. Scale house (may be separate or integrated with Process or Administration buildings). Truck scales for weighing solid wastes delivered and residues leaving. Scales will also weigh ferrous metals leaving. Parking areas for plant personnel, visitors and trucks. . Suitably landscaped site. . Plant roads with sufficient capacity to permit packer trucks to queue during rush hours without disturbing 3-5 METCALF 0 EDDY traffic on access highways. Roads for use of residue trucks without disturbing incoming trucks. Mobile loaders. Solid waste processing system including flail mills, magnetic separators, shredders, sizing disc screens, fine disc screens and conveyors, and dust control system. RDF storage and reclaim system with conveyors and dust control system.. Boilers and equipment as outlined in subsequent brief descriptions for each alternative plant. Forced and induced draft fans and overfire air fans, as required. Boiler feedwater treatment and supply systems. Wastewater treatment system. Two residue conveyors and ash house. Process control systems. Steel stack enclosing three individual steel stacks with height as governed by air quality requirements. Auxiliary gas firing systems. Electric systems. Turbine generator, surface condenser, cooling tower and associated eqipment for Alternative No. 1. Steam and boiler feed pipelines for Alternative No. 2 for connect- ing proposed boiler plant to existing two 11.5 mw turbine generators in the LP&L Plant No. 2. 3-6 Other equipment, such as air compressors, tools, etc. Cost Estimates. Capital cost estimates for the two alter- native systems are based on quotations on major eqipment obtained from equipment manufacturers. Site preparation work is based on earthwork and foundation work with no special requirements and should be supplemented by a geotechnical investigation during the preliminary design phase of the project. Assumptions. With regard to capital cost, annual expense, revenue, disposal cost, and tipping fee estimates, the following assumptions are made consistently throughout the study: 1. All of the above estimates for 1981 are based on November 1981 dollars. One hundred percent of the total plant cost is financed by tax exempt industrial development revenue bonds. The finance costs to be raised in the total bond issue are taken as 40 percent of the total plant cost and include interest during construction; front end costs including the underwriter's fee at 2.5 percent of bond issue and miscellaneous finance costs; an amortization reserve fund of one year's amortization; an 0&M reserve fund, and earnings on unexpended net bond proceeds. 2. Equipment cost estimates include the costs of equipment, delivery, and erection. Where a ` subcontractor is used, the cost of the equipment to the ( subcontractor is added to the subcontractor's labor cost and the sum is increased by 15 percent to cover 3-7 METCALF & EDDY the subcontractor's overhead and profit. An additional 10 percent to allow for startup and working capital is -- added to the total cost of the equipment erected, piping, electrical and instrumentation, connecting , pipelines (if required), and building and site development cost to compute the installed plant cost. 3. Piping is taken at 18 percent of total erected equip- ment cost. Electrical and instrumentation are taken at 12 percent of total erected equipment cost. 4. Site development and buildings are taken at 20 percent of the installed plant cost for Alternative No. 1 and at 20 percent of the cost obtained by deducting the steam and boiler feed pipelines' cost from the installed plant cost. 5. Design engineering, construction services and construc- tion management estimated costs are for this specific project. These costs are added to the installed plant cost to arrive at the total erected cost. 6. Contingency costs are taken at 10 percent of the total. erected cost. 7. Amortization for the revenue bonds is based on 11 percent interest over a 20 -year period, corresponding to a capital recovery factor of 0.12558. Amortization is computed by multiplying the total bond issue by the capital recovery factor. 3-8 a g- Note: Items 8 through 11 represent annual costs for operation and maintenance of the -facility. 8. The personnel requirements of the proposed facility require the capability of burning solid wastes and RDF on a continuous 24-hour basis, while front-end processing requires operating personnel for two 8 -hour shifts per day, 6 days per week. Table 3-1 lists the personnel and salary rates and annual labor costs for the two alternatives. The staffing and costs are assumed to be the same for the two alternatives to allocate charges consistently even though operators for the existing two turbine generators will continue to be station n ed i Plant No. 2. The salary rates. were r• provided by the City. Fringe benefits at 40 percent of annual total wages are added to compute annual total r labor costs. The fringe benefit's percentage covers r� the cost of statutory and customary benefits; such as: allowances for sick leave; vacation and holiday pay; w t; taxes and insurance premiums based upon payroll; and ..r medical and retirement benefits. Labor includes „ administration, operation and maintenance. 9. Landfill costs are estimated at $4.10 per ton based on escalating the $3.75 per ton as calculated from the Battelle report, dated September 30, 1980, at 8 percent per year to November 1981. The Battelle report gave a landfill cost of $0.9375 per cubic yard which METCALF & EDDY I ti i i N r-1 00 N 00 n O 0%0 N J v1 CO coo CO -C N 00 U9 0% 10NN �0m nCO%C%O LA en CO YY 1l f, f�f� J N '-I 1'�1.NO v1 �0 •i 14 14 W NOJ 1f101 O��OJ P'11�J M O�0 �O ODM 00 N NMNMO w w w CG L O M N CO %0 J 0% � 4 1� M ), ON 1, J CO 00 O, .4 h ON O W% %0 M wl N 0% -4 w 0 3 O�NN �M%C .T 0000 Oen ON O JO%0s"0� r% e= MN.4�00 LM J O C H N N x H T y a y 14 µ F 7 J,wO ONJNOft ?IN NJJJI: '414-1.,IJ I ; U W r W ° 0) nInN �D MMN MN w f�0%MM tui O� LMJ.-1 0 .+NJ v10%MJ 0%J v N%0%00% Ol rl nnN V1 �4 U A. M000 'O JJ 00JCO W 010%0) P. NMNM 00 u 04 C Ol MNO O�nn0 h0 v1 E NJJf� tM E C;lr IOM N y W d 3 ANN �4 -4 r4 N 14 C4 N 4N NC4 4 N M04 4 r-1 � U + w + w O. m co Ol v 01 N w OT p p N 3 tpJ .+ E s E $ w en ° M1 ..i ,-1C4 rl N �.1 as �O NO r1 rl (n O co D 0) L p rn 14 NU'1O JJJOJO V 1-1 V1 CO aD r L ri V1N1,J 0 W 7 Y .- O O + W 00 OJ rG11 co s•1 .1 .1 'I 1 FOrl ax H O. a0 O 00 F F ^ JO F v W ca lu C U o Cpl w aG 3 A .] t9 O O C rl 00 C d 00 u r1 u T +I +i a e m w cc q 4) avi C u F W H u 0°09: O O w M Aj w ar w O .-1 W O W 1 tl1 0) u Cf0 41 v w u a aw C 0 m 3 u v q w u v W 0 O w q w \ 11 w C w 0 ca D S E aJ Gv! co 4.+ art w O O 61 C w C O 10 v v M Ol (a L0 t0 0 O w C O 0 C O .0 00 C q a+ z O 7 Co B W +/ L rl 0. 0) w L 00 1.. co C A M R M r+ U O T v v p 00 W 00 u OS w F w to a+ M m v +1 1g C a+ CA 00 U W O 03 (A %V w 0) 0) W M E• 4 L E Ol •i 00 Wbe w T C M v C i u w O Ol 4 11 ,. . t0 Ol Cl ar as t +1 w w 41 C E ++ u w w u u O C C r1 W W 00 . d W O A Itl W u C v aJ C C w If ./ +4 W rl M +4 G. u A W C w 01 0 C (A cc W T E r1 rJ aJ O qq = = 01 M CO 0 0) L i-1 , 4 d M rl r-1 C7 q r- 0ul Cd m U2 OA3F PAH C OnW0,0 .O Or A. 0.d In W ori • � , q . _ �pp-GG7�� A O •-INM Jv1 �On0� r-INMJ d �NMJ Ed+ E { v a� 3-10 corresponds to $3.75 per ton at the assumed 4 cubic yards per ton. All bypassed solid wastes are assumed to go directly to the sanitary landfill so that no additional haul cost is required. Residue disposal costs of $2.76 per ton consist of estimated $0.71 per ton haul cost for the 14 -mile, one-way, haul distance to Site No. 3 from the Battelle report plus an adjusted landfill cost of $2.05 per ton. The landfill cost of $4.10 per ton is adjusted by the ratio of average density of compacted solid wastes (approximately 1,000 pounds per cubic yard) in the landfill and residue (approximately 2,000 pounds per cubic yard). 10. Annual cost of utilities is based on the following assumptions: Average overall cost of electricity, $/kwh = 0.040 Water, $/Mgal. = 0.90 Diesel oil, $/gal. = 1.20 Gas, $/MMBtu = 2.65 11. Annual maintenance cost is taken as 2-1/2 percent of the installed plant cost for Alternative No. 1. The maintenance cost for Alternative No. 2 is assumed to be the same as for Alternative No. 1 to allocate charges consistently to include the existing two turbine generators and associated equipment located in Plant No. 2. 3-11 METCALF & EDDY 12. Based on assumed 4.9 percent ferrous metals, by weight, in the solid wastes and 90 percent recovery of these metals, 0.044 tons of ferrous metals could be recovered per ton of solid wastes processed. 13. The alternative plants have areas reserved to receive "white goods" from the bulky solid wastes. The "white goods" are landfilled. 14. The estimated heating value of the solid wastes is 4,500 Btu/lb, as fired, in 1981 and this same value is used for performance estimates for the study period. The corresponding estimate of heating value of the RDF is 4,988 Btu/lb, as fired. The boilers are designed with thermal input capability to maintain rated solid waste capacity continuously with a solid waste heating value of 5,000 Btu/lb, which yields an estimated heating value of the RDF of 5,542 Btu/lb. 15.. Land costs are excluded. 16. The annual operating expenses are exclusive of any taxes. 17. The procurement procedure for the facility is assumed to be the Architect -Engineer Approach i.e., engage an engineer to prepare plans and specifications, call for competitive bids for construction and arrange for LP&L to operate the plant. 18. Annual revenues are calculated in November 1981 dollars and are based on the following assumptions: 3-12 Electricower, $/ kwh = 0.040 P Ferrous metals, $/input ton solid wastes = 0* Alternative No. 1 - 1,395 t d Solid Waste Processing Plant and Spreader - Stoker Boiler Plant with Electricity Generation New Turbine Generator General Description. Alternative No. 1 considers the use t of a spreader -stoker boiler plant with a front end RDF prepara- tion unit as shown in Figure 3-1 Diagram and Material Balance for a Spreader -Stoker Boiler Plant and Front End Fuel Preparation System. The tpd quantities, identified in the material balance, do not apply specifically to the proposed plant; however, the. percentage values of the various materials relative to the input unprocessed solid wastes are used in the calculations for the proposed plant. Each of the two processing trains is described as follows: the solid wastes are transferred from the tipping floor by front end loaders to a conveyor which feeds a flail mill. The flail mill is a grateless low horsepower shredder used to perform OM_ primary sizing functions, open trash and garbage bags and break up [j: agglomerated and compacted materials. A magnetic separator is installed downstream of the flail mill to recover ferrous metals. The ferrous metals could be sold, given to a scrap metal dealer, or landfilled.* The coarsely shredded wastes are then conveyed to a shredder where they are shredded to a maximum size compatible Approximately 0.044-- tons of ferrous metals could be salvaged per input ton of solid wastes, but no income is assumed from the sale of these materials. 3-13 METCALF & EDDY r-. with the boiler manufacturer's requirements (usually an RDF particle size in the range of 4 -inch to 5 -inch dimensions in any direction). The shredded RDF is conveyed to a sizing disc screen with 4 -inch spacing. Oversized material passes over the screen and returns to the shredder for further size reduction. RDF passing through the disc screen continues to the fine disc screen for further processing. Properly sized RDF passes over a fine disc screen to reduce the glass, grit, and dirt content. The disc screen has 3/8 -inch spacings and particles sized less than that -- pass through and are rejected to landfill. The "accepts" pass over the disc screen and are conveyed to an RDF storage facility. The RDF from the two processing trains is stored in a bin with large enough capacity to maintain boiler firing during weekend periods when the solid waste processing plant is not in operation. The bin is equipped with reclaim conveyors which transport the RDF into the boiler surge bins. Each boiler is equipped with a surge bin which is of the live center screw type and which supplies a metered quantity of RDF to the boiler for burning. Heat from combustion is used to generate high pressure superheated steam. Gaseous products of the combustion process Pass through an electrostatic precipitator for removal of entrained particulate matter to comply with air pollution control codes, prior to being discharged into the atmosphere. The inert residue from the processing plant and bottom ash and fly ash from the boiler plant are landfilled. 3-14 F MC9100 LL'K9 8 Y O MC916) Q O crus p� F Q PE VAETCALF 0 COOY 1, Q F i r"! p �xcr� )Eiroc � W F MC9100 LL'K9 8 Y O MC916) Q O crus p� F Q PE VAETCALF 0 COOY MC9100 LL'K9 8 Y O MC916) Q O crus p� F Q PE VAETCALF 0 COOY r The high pressure superheated steam is supplied to a turbine generator which operates in the power generation cycle presented in Figure 3-2. The turbine generator is of the con- densing type and has four uncontrolled extraction points to extract steam to heat feedwater being returned to the boilers. The exhaust steam is condensed in a surface condenser by cooling water and the condensate is pumped through two closed heaters to a deaerator where it is deaerated to remove dissolved oxygen and free carbon dioxide to control corrosion of the boilers. The deaerated feedwater, including demineralized make-up water added to the deaerator, is pumped through a third closed heater and through the economizers into the boilers for steam generation. Hot cooling water is discharged to a cooling tower (not shown) for evaporative cooling and pumped back to the condenser. This power cycle is generally similar to those of your existing �.' turbine generators. Plant Sizing. The plant is designed for a maximum continuous capacity of 1,395 tpd of unprocessed solid wastes at a heating value of 5,000 Btu per pound or a nominal capacity of 1,186 tpd, based on an 85 percent availability factor. The projected initial input to the plant is 867 tpd in 1985, increas- ing to 927 tpd in 1989 and to 1,152 tpd in 2004. The additional capacity is designed into the plant to provide a high degree of redundancy through 1989 (two boilers operating and one boiler in reserve) and adequate capacity through 2004.. The usual 20 -year 3-17 METCALF & EDDY design period is assumed to start with 1985 as the first project year and extend through 2004. The solid waste generation projections (residential, com- mercial and industrial) on a seven days per week basis are taken from the Battelle report and are as follows: Total Residential 'Comm.'/Ind. Year tpd tpd tpd tpy -- 1981 236 577 813 297,000 1985 249 618 867 316,000 1986 253 629 882 322,000 1987 256 641 897 327,000 1988 26o 652 912 333,000 1989 263 664 927 338,000 2004 316(1) 836(1) 1,152(1)420,0000) 1. ME projections. One 30,000 kw turbine generator is proposed. If the turbine generator is sized for the projected solid waste quanti- ties for the design period through 2004 and based on solid wastes �- having a heating value of 5,000 Btu per pound to the processing r plant, the required turbine generator rating is estimated to be 32,000 kw or 39,000 kw, if sized for the maximum continuous capacity of 1,395 tpd. The larger ratings are believed to be too conservative; however, a decision could be made as to the final selection after making a future more detailed review during the design phase. Technical Description. A brief technical description follows: 3-18 Q LU f Q W_ IL LLS 2 Qin W 10 CL v � cc M 7 0 O W 'Q m WOM n g 3t?�ui $ W .i ca LL r c w W z LLS 0=Q W WS S Q W � N LL O E.y N 0 W M Q P M W $ 0 Z c W /- fF�� � / / / V S / V W 6 2 Z $aLLS QJ W •� LcF- m W LU m F- 0 I.a N Q SS a ?ZW Dui 0 / Y z J z O W V W C7 WNQ O L0 us GZ ZS W Y SSV WWW M aJ mo eq cq =LLQ %1 W; M I a A ?�� ��� J -1Q $> w U. 93u LLI> JJ � }.� C F- Z W O = V S V } METCALF & EDDY METCALF 6 EDDY Processing Plant (' 1. Number of front end fuel preparation lines: 2. 2. Number of flail mills: 2. 3. Flail mill throughput: nominal 50 tph each. maximum 60 tph each. 4. Flail mill horsepower: 500 each. 5. Number of magnetic separators: 2. 6. Number of shredders: 2. 7. Shredder throughput: nominal 50 tph each. maximum 60 tph each. 8. Shredder horsepower: 1,000 each. 9. Shredder discharge product size: nominal 4 in. 10. Number of sizing disc screens: 2. 11. Number of fine disc screens: 2. 12. Number of RDF storage bins: 1. 13. Operation: 16 hours per day, 6 days per week. Boiler Plant 1. Number of units: 3. 2. Operation: 24 hours per day, 7 days per week. 3. Availability factor: 85 percent each unit. 4. Maximum continuous unprocessed solid waste capacity: 465 tpd each unit. 5. Nominal unprocessed solid waste plant capacity at 85 k percent availability factor: 432,800 tpy. 6. Boiler outlet pressure and temperature: 650 psig and 755 deg F (as required for the turbine generator throttle steam condition). •- 1' 3-21 METCALF 6 EDDY 7. Maximum continuous rated steam generation: 134,100 lb/hr each boiler at RDF heating value of 5,542 Btu/lb as obtained from unprocessed solid wastes with heating value of 5,000 Btu/lb. 8. Boiler feed mode: RDF approximately 400 tpd at 465 tpd unprocessed solid waste.input, each spreader - stoker unit. 9. Auxiliary fuel: natural gas for startup and infre- quent use with high moisture content RDF. Gas is not ^' required for normal operation. Turbine Generator Plant 1. Number of units: 1. 2. Operation: 24 hours per day, 7 days per week. 3. Availability factor: 96 percent. 4. Turbine generator rating: 30,000 kw, 0.83 pf, 3 phase, 60 Hz, 13,800 v, throttle pressure 600 psig, throttle temperature 750 deg F. exhaust pressure 3 in. Hg abs, _ four point regenerative feedwater heating. 5. Number of cooling towers: 1 (wet -dry type). Estimated Capital Costs, Total Bond Issue and Annual Income Statement. The estimated capital costs and total bond issue for this alternative are shown in Table 3-2. Table 3-3 gives the estimated total bond issue build-up details. It is understood that the City's investment banker will develop a comprehensive financing program, including total bond issue, •3-22 t -2 T COSTS FOR ALTERNATIVE TABLE 3 ESTIMATED CAPITAL NO. 1 1,395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (NEW TURBINE GENERATOR) (X $1,000) (COST IN NOVEMBER 1981 $) Cost Item Weigh scale system $ 61 Mobile loaders and turbine crane 826 Dust control system 621 RDF processing system 2,583 �., RDF storage and reclaim system .2,121 Waterwall boilers (surge bins through stack) 12,170 ( Boiler auxiliary equipment 1,331 Residue removal system 1,748 Turbine generator and condenser 5,817 Cooling tower and circulating pumps 740 Total erected equipment 28,018 Piping 5,043 Electrical and instrumentation 3,362 Site preparation and buildings 9,106 Installed plant cost 45,529 . Design engineering 3,500 Construction services 2,000 Construction management 2,500 Total erected cost 53,529 Contingency 5,353 Total plant cost 58,882 �•+ Total bond issue $822435 3-�3 METCALF d EDDY TABLE 3-3. ESTIMATED TOTAL BOND ISSUE BUILD-UP DETAILS FOR ALTERNATIVE NO. 1- 1,395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (NEW TURBINE GENERATOR) (X $1,000) Line No. Item Cost 1 Total plant cost as erected $583882 2 Construction financing 22,670 3 Front end costs 2,804 4 Depreciable assets 84,356 5 Amortization reserve 10,352 6 0&M reserve 300 7 Earnings on unexpended NBP 12,573 8 Total bond issue $82,435 Explanation of line items: 1 Taken from Table 3-2. 2 Funds required to finance the total bond issue during the construction period = 11 percent per year of the total bond issue. 3 Front end costs include such items as bond rating fees, commissions to underwriter, accountant fees, and printing and engraving costs. Frond end costs were taken as 3.4 percent of the total bond issue. 4 The sum,of lines no. 1 through 3. 5 Amortization reserve equals the capital recovery factor (.12558) times the total bond issue. 6 Operating and maintenance reserve assumed to be $1 per annual ton of solid waste available for the plant. 7 Earnings on unexpended net bond proceeds are based on 30 _ equal monthly payments for the construction of the plant during the construction period., Remaining funds are in- vested at a rate of return equal to the coupon rate of the bond. Payments are made at the beginning of the month and earnings are deposited at the end of the month. 8 The total bond issue is given by the sum of lines No. 4 through 6 minus line No. 7. 3-24 when the project is implemented. Estimated annual income state- ment is shown in Table 3-4. Footnote 1 in Table 3-4 refers to a separate calculation procedure for electric power for sale. This procedure is as follows: Step 1. Calculate heat absorbed by boilers, MMBtuh = 285,618 x 2,000 x 4,500 x 0.953 x 0.73 8,424 x 10 = 212.3 where: solid wastes processed, tpy = 285,618 Conversion tons to lb = multiply by 2,000 Heating value solid wastes, Btu/lb = 4,500 Fractional thermal efficiency of front end(l) _ 0.953 Fractional efficiency of boilers = 0.73 Annual operating time of turbine generator hr/yr(2) = 83424 Conversion Btuh to MMBtuh = divide by 106 3-25 METCALF & EDDY TABLE 3-4. ESTIMATED ANNUAL INCOME STATEMENT FOR ALTERNATIVE NO. 1 - 19395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (NEW TURBINE GENERATOR) (x $1,000) (COST IN NOVEMBER 1981 $) (,) Annual total solid wastes - 297,000 tpy, Item Cost Expenses Labor (2) $ 2,015 Maintenan a and repairs 1,138 Utilities 3) 339 Residue disposal(4) (5) 265 Landfill ofpassed solid wastes 47 Amortization��1 10,352 Total expenses $14,156 Revenues. Electric power sale�8�) 5,387 Ferrous metal sales (9) 0 Interest on amortization reserve 1,242 Total revenues 6,629 Net disposal costs $ 7,527 Net tipping fee, $/ton(10) 25.34 1. Of this total, 285,618 tpy are processed to supply 134,683 Mkwh electric power for sale. See separate calculation procedure for electric power for sale. 2. 2 1/2 percent of installed plant cost: 0.025 x $45,529,000 = $1,138,000. 3. Exclusive of in -plant power usage which is deducted from turbine generator gross output to calculate turbine generator net output for sale. 4. 46055 tpy of residue x $2.76/ton plus 28,505 tpy of incom- bustible fines x $4.81/ton = $265,000. 5. 11,382 tpy (landfilled during 2 -week shutdown of turbine generator) x $4.10/ton = $47s000- 6. 0.12558 x total bond issue: 0.12558 x $82,435,000 = $10052,000. 7. 134,683 Mkwh x 1,000 x $0.040/kwh = $5,387s000- 8. Assume no income from the sale of ferrous metals. 9. 12 percent interest on amortization reserve fund: 0.12 x $103352,000 = $1,242,000. 10. $7,527,000 net disposal costs divided by 297,000 tpy annual total solid wastes = $25.34/ton. 3-26 1. From Figure 3-1, the fractional ratio of RDF to input solid wastes = tons 512.6 day = 0.86 tons 598.5 day Solid wastes with heating value of 4,500 Btu/lb are esti- mated to yield RDF with heating value of 4,988 Btu/lb with this fuel preparation system. Therefore, fractional thermal eff. = Btu 0.86 lb RDF x 4,988 = Btu 1.0 lb solid wastes x 4,500 lb = 0.953 2. Number of hours in a 50 -week year to account for the 2 -week period of plant shutdown due to the maintenance of the turbine generator. Step 2. Obtain turbine generator average gross output from Figure 3-3 using the heat absorbed by boilers from Step 1 to enter the "Heat Absorbed by Boilers vs kw" curve. Read kw = 18,700. Step 3. Calculate turbine generator average net output, kw = Step 2 minus in -plant power usage = 18,700 - 2,712 = 15,988 This is average net output over the 1 -year period with seasonal excursions of approximately minus 26 percent to plus 30 percent in maintaining this average. 3-27 METCALF 6 EDDY Step 4. Calculate actual exported power, Mkwh/yr = Step x 8,424 10 _ 15,988 x 8 424 10 = 134,683 Alternative No. 2 - 1,395 tpd Solid Waste Processing Plant and Spreader-Stoker Boiler Plant with Electricity Generation (Existin Turn Tii"M rP apraratnrG General Description. Alternative No. 2 considers the use of a spreader -stoker boiler plant with a front end RDF preparation unit the same as Alternative No. 1 except furnishing steam to existing two turbine generators in LP&L Plant No. 2 rather than to a dedicated new 30,000 kw turbine generator in the proposed plant. Each of the existing two turbine generators is assumed to operate in a power generation cycle similar to that in Figure 3-2. Steam from the proposed plant is transported to -the existing two 11,500 kw turbine generators in Plant No. 2 by an underground pipeline assumed to be approximately 1,000 -feet long and fabricated of 16 -inch, Schedule 80 steel pipe. Boiler feedwater from the existing two feedwater systems is transported to the proposed plant by an underground pipeline fabricated of 8 -inch steel pipe. Some piping changes will be needed in the existing systems. The proposed plant will include its own feedwater system for startup and emergency service in the.event of a failure of the existing system in Plant No. 2. 3-28 ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■!■■■■■■■■■■■■■■ ■■■ �•••■■■■■■■■■■■■■■■■■■■■e■■■■■■■■■■■■■ ■■■ • .� :•• ■■ie■■■■■■■■■■■■nee■■■■■■■■■■■■■■■ OEM ■e■ .��• .�• ■■■■■■■nee■■■!■■■■else■%■■■■■■■■■■ ■■■ ■■■■■■■■■■■e■■■■e■■■�%mei■■■!■■■■■■ ■■■■■■■■■■■e■■■■■■■■■■/%■�i■■■■■■■■■■■ ■!■■■■■■■!!■■■■■■■■■■■■■■■■■■■■!■nee■■■■■■■/%e►.■■!!■■■■■■■■■ ■■■■■■e!■nee■■■■■■eeee■■■■!■■■■■!nee■■■■■■/�e�ilee!■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■ecce■!■■■!■■■■■■■■■■■■/�■►t■!■■■■■■■■■■■e■ ■■■■■■■■■■■■■■■■■■■!■■■e■■■■e■■ecce■ ■r,�■►t■■!■■■eee■■■■■■■■ ■■■■■■■■■■e■■■■eee■■■■■!■■■■■■■eee■ .�e►.■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■!■■■■■!■■■■■■■■■ ./epi■■■!■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■eee■e■■e■ moi!■■■■■eee■eee■■■■■■■!■■■ ■■■■■■■■■■■■■■■■■■■!■■■■■■■■ i■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■!■■■■■■■■■■■■■■■ i■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■moon .e■■■■e■■■■■■■■■■■■■■nee■■■!■ nee■■■■■■■■■■■■■■■■■■m■! • I!■■■■■■■■■■nee■!■eeeee■■■■■!■ ■■■■■■■■■■■■■■■■eee■■■ t■■!■■eee■■■■■eeeeee■■■■■■■■■■■■ ■■■■■■■■■■■■■■■nee■■ I■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■!■ Ie■■■■■■■■■■■■ ■■■■■■■■■■■■ ■e■■■eeenee■■e■■e■e■ /■eeenee■■ ■eeenee■■■■■ ■■■■■■■■■■■■■■■■■■■■■� •:dmm■■ cow■■■■■■■■■■■■ ■■■■■■eee■e■■■■■■ei■■►.■!■ __��■■■cele■■■■■■eee!■eee■e■■■■e■ ■■■■■■■■■nee■■■■■%ee�•�..i■eee■eee■■me■■■e■■■■■■■■■■■i■■■■■■■ ■■■■■■■■■�!����%■■pie■■■■■■■■■■■■■■■■■■■■■■nee■■■e■■■■■■■■■■■ ■■■■■_�:■■e■■/%■■�/ee!■■!e■e■■■■!■■■■e■■nee■■■■lnee■■■■■e■■■■ nee■■■■■■■■■�Ine�i■eee■nee■eee■eee■■■■■■■■■■■■■■■■■eeee■■■■e■ ■■■■■■■■■■■��■■►t■■■■■■e!■■■■■■■■■■■■■■■■■ecce■■■■■■■nee■■■■■ ■■■■■■■■■■I%■■pie■■■■■■■■■■■!■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ nee■■■■/�ee�i■■■e■ecce■nee■■■■■■■■■■■■■■■■■■■■■■■■eee■■■■■!e■ ■!■■■■I,I■■�t■■■■■■■■■■■nee■■■■■■■■■■■■■■■■eeenee■■nee■■■■■■■e ■■■■A■■�i■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■nee■■■■■!■■■■■■■■!■ ■■■\vim'Imo■■e■■■e■■■■■■eee■eee!■■m■■■■■■■■■■e■■■■■■e■■e■■■■■■ ■■■■■■■■■!■■■e■ecce■■■■lnee■■■■■■■■■■■■■■■■eeee■■eeenee■■■e■ ■■■■■■■■■■■■■■■eeen■■■■■■■■■■■■■■■■■■■■■■nee■■ecce■■■■■■■■■■ ■■■■■■■■■!eeeeee■■■■■■e■■■e■■■■■■■nee■■■■■■■■■■■■■■■■■■■■■■■ nee■eee■■■■■■■nem■■■■■■■■■■■■■■■■■m■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■n■■nee■eee■■n■■■e■■■■■■■e■■e■■■■■■■■■■■eee■■■■■ee■■n■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■n■■■e■■e■■e■■■■■■■■■■■nn■■■eeeee■n■■■■nee■■■■■ ■e■■ee■e■eee■■■■■■■■■eee■■ee■e■■■■me■■mom■m■ee■nee■■■■e■eee■ Plant Sizing. The plant is designed for the same capacity as Alternative No. 1. Technical Description. A brief technical descrip- tion follows: Processing Plant and Boiler Plant Same as Alternative No. 1. Existing Turbine Generators to be Served in Plant No. 2 1. Number of units: 2 (LP&L Units No. 4 and 5). 2. Operation (proposed): 24 hours per day, 7 days per week. � 3. Availability factor: 96 percent (assumed). 4. Turbine generator rating (present): 11,500 kw, throttle pressure 600 psig, throttle temperature 825 deg F, exhaust pressure 1 1/2 -in. Hg abs, four point regenerative feedwater heating. 5. Turbine generator rating (estimated rerate with steam from proposed plant): 10,850 kw, throttle tempera- ture 735 deg F, otherwise same as present. Estimated Capital Costs, Total Bond Issue and Annual Income Statement. The estimated capital costs and total bond issue for this alternative are shown in Table 3-5. Table 3-6 gives the estimated total bond issue build-up details. Estimated annual income statement is shown in Table 3-7. 3-31 METCALF & EDDY I TABLE 3-5• ESTIMATED CAPITAL COSTS FOR ALTERNATIVE NO. 2 1,395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (EXISTING TWO TURBINE GENERATORS) (X $1,000) (COST IN NOVEMBER 1981 $) Item Cost Weigh scale system $ 61 Mobile loaders 160 Dust control system 621 RDF processing system 2,583 RDF storage and reclaim system 2,121 Waterwall boilers (surge bins through stack) 12,170 Boiler auxiliary equipment 830 Residue removal system 1,748 — Total erected equipment 20,294 Piping 3,653 Electrical and instrumentation 2,435 Site preparation and buildings 6,596 Steam and boiler feed pipelines 1,181 Installed plant cost 34,159 Design engineering 2,800 -- Construction services 1,700 Construction management 2,100 Total erected cost 40,759 Contingency 4.,076 Total plant cost 44,835 — Total bond issue $62,769 3-32 I TABLE 3-6. ESTIMATED TOTAL BOND ISSUE BUILD-UP DETAILS FOR ALTERNATIVE NO. 2- 1,395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (EXI STIIU TWO TURBINE GENERATORS) (X $1,000) Line No. Item Cost 1 Total plant cost as erected $44,835 2 Construction Financing 17,250 3 Front end costs 2,100 4 Depreciable assets 64,185 5 Amortization reserve 7,860 6 0&M reserve 300 7 Earnings on unexpended NBP 9,576 8 Total bond issue $62,769 Explanation of line items: 1 Taken from Table 3-5. 2 Funds required to finance the total bond issue during the construction period = 11 percent per year of the total bond issue. 3 Front end costs include such items as bond rating fees, commissions to underwriter, accountant fees, and printing and engraving costs. Frond end costs were taken as 3.4 percent of the total bond issue. 4 The sum of lines no. 1 through 3. 5 Amortization reserve equals the capital recovery factor (.12558) times the total bond issue. 6 Operating and maintenance reserve assumed to be $1 per annual ton of solid waste available for the plant. 7 Earnings on unexpended net bond proceeds are based on 30 equal monthly payments for the construction of the plant during the construction period. Remaining funds are in- vested at a rate of return equal to the coupon rate of the bond. Payments are made at the beginning of the month and earnings are deposited at the end of the month. 8 The total bond issue is given by the sum of lines No. 4 through 6 minus line No. 7. 3-33 METCALF & EDDY TABLE 3-7. ESTIMATED ANNUAL INCOME STATEMENT FOR ALTERNATIVE NO. 2 - 13395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (EXISTING TWO TURBINE GENERATORS) (x $1,000) (COST IN NOVEMBER 1981 DOLLARS) Annual total solid wastes - 297,000 tpyr}T Item Cost Expenses Labor (2) (2) $ 23015 Maintenan a and repairs 1,138 Utilities 3) 1X 122 Residue disposal(4) (5) 265 Landfill oft��assed solid wastes 47 -- Amortization 7,883 Total expenses 12,470 Revenues Electric power sale�8�) 5,597 Ferrous metal sales0 (9) Interest on amortization reserve 946 Total revenues 6,543 Net disposal costs $ 5,927 Net tipping fee, $/ton(10) 19.96 1. Of this total, 285,618 tpy are processed to supply 139031 Mkwh electric power for sale. See separate calculation procedure for electric power for sale. 2. Assumed the same as for Alternative No. 1 to allocate charges consistently. 3. Inclusive of in -plant power usage (new resource recovery plant). 4. 46,355 tpy of residue x $2.76/ton plus 28s505 tpy of incom- bustible fines x $4.81/ton = $265,000. 5. 11,382 tpy (landfilled during one 2 -week shutdown for each turbine generator $4.10/ton = $47,000. 6. 0.12558 x total bond issue: 0.12558 x $62,769,000 = $7,883,000. 7. 139,931 Mkwh x 1,000 x $0.040/kwh = $5,597,000. 8. Assume no income from the sale of ferrous metals. 9. 12 percent interest on amortization reserve fund: 0.12 x $72883,000 = $946,000. _ 10. $5,927,000 net disposal costs divided by 297000 tpy annual total solid wastes = $19.96/ton. 3-34 Footnote 1 in Table 3-7 refers to a separate calculation . procedure for electric power for sale. This procedure is as • follows: Step 1. Calculate heat absorbed by boilers for each turbine generator,. MMBtuh 285,618 x 2,000 x 4,500 x 0.953 x 0.73 x 0.994 8,242 x 10 x 2 = 105.5 f' E where: The values for the first 5 terms of the numerator and the first 2 terms of the denomi- nator are the same as defined for Alternative No. 1. l Fractional efficiency of the steam pipeline = ' 0.994 Number of existing turbine generators served = 2 _Step -2. Obtain each turbine generator average gross output from Figure 3-4 using the heat absorbed by boilers for each tur- bine generator from Step 1 to enter the "Heat Absorbed by Boilers ' vs kw" curve. The derivation of Figure 3-4 is given in Appendix A. Read kw = 8,500 Step 3. Obtain total turbine generator average gross output, kw = Step 2 x 2 = 8,500 x 2 = 17,000 3-35 METCALF & EDDY Step 4. Calculate total turbine generator average net output, kw = Step 3 minus in -plant power usage(l) = 179000 - 389 16, 611 -' Step 5. Calculate actual exported power, Mkwh/yr = Step 4 x 8,424 10 163,611x8424 10 139931 1. Estimated power.usage for feedwater pumps, condensate pumps and condenser circulating water pumps serving the two existing turbine generators in the existing plant. Economic Analysis The economic analysis projects the annual net disposal costs (or revenues) and the derived net tipping fee (or revenue) of the proposed resource recovery plant for the 5 years of 1985 through 1989. The annual net disposal costs are the sum of the annual operating and maintenance expenses and the amortization as offset in whole or in part by the annual resource recovery and other revenues which are projected to result. The net tipping fee (or revenue) is derived from the annual net disposal costs. The amortization is projected over a 20 -year financing period of 1985 through 2004 as explained previously. The overall objective of the economic analysis is to investigate the 5 -year performance of the resource recovery 3-36 ■■ciiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iii 0:0 KW■■eei■■■■■■■■■■■■■■■■ii■■■■■■■■■ ■■■•-■■■■f■et■t■!■fffe■ff■f■■■■ftf■■■ ■■■ . - POINT REGENERATIVE■■■■■■■■■■■■■■■■■■■■■i■c■■■■■■■■ ■■■■■tfct■■ce■ff■■ff■eafff■fff■f■!■ ■■■■■■■f■■!■■■f■f■■■■■■■■■!■■f■■ff■ mmm.UNITS NO.NO. ■■■ate■■■e■■e■■■t■■■■■■■■f■■■■■■ ■e■I I I I I I Il I I I SIM MEN NONE ■■t■■■■■■e■■■■e■e■■■■■■■■■■w■■■■t■■■ ■■■■■■■■■■c■■■■■■■■■■■■flea■■■■■■■■■■■■■■■fel■■■■■■■■■�■■■■■ ■■o■■■■■■■■■■■■■■■■■■■■■■■■■■■f■■■■■■■■■fe■■eeffff■■rf■ffff■ ■iii■■■t■■■l■■■■t■■■■■■■t■■t■■i■■e■i■■■/t■■■■■■■■II■�%■■t■■■ ■■■■■■■■■■■■■fife■■e■■■■■■■■of■e■es■c■eefe■■■■■%i■►.■■■■■■■■■ ■■f■f■■■e■■■■■■■■■■■■■■■■■ate■■■■l■■■■■■t■■■t■%t■►.■acct■■■■■ ■■■■■!■■■■■■■f■fe■e■■■■■■■■■■■■■e■eiee■ rter.M■■e■■fe■■■■■■ ■■■■■■■■■■■■■■ate■■■■■■■■■■■■■■■■■t■■ I■■■■■e■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ /■■■■■■■!■■■■■c■■■ ■■■■■■■■■t■■■■■■■■■■■■■■■■■■■■■■■■■ I■■■■■■■i■■■■■■■■■■ ■■■/■t■■■■■ilei■■■■■■■■tee■■■■■■ .■■■■■■■■■■■■■■■■■■t■■ ■■■■■■■■■■■ilei■■■■■■■■■■■■■■■■ •• • .■■■eee■■■■■■■■■■■■t■■■ e■■eei■■■■■l■■■■■■■i■■■■■■■■■ .�■■ef■ee■■■e■■■■■■■■■■■■ ■■■■■■■■■■■■■■i■■lee■■■■■■ff■ .r■■■■■■■■■■e■■■e■■■eee■■■ ■■cleefiee■l■■■■■■■■■■■■■■■ . i■■■■■■■■■■■■tc■fc■ff■fffe■ ■■■■■■■■■ff!■f!■■e■■eee■■ if■i■e■■i■■■■■■■ff■ff■■ ■■■ttf■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■r.■■�i■■■■■■■t■ _:tea■■■■■■ ■■■■eee■■■■■■■■■■■■■■■■eI./aril■■■■ _ _�:.■■/■■�\■■■■■ ■■■■■■■■■■■■■t■■■■■■■!/./■/.�■ _����■��■ill!■■■■■■■■■■■■■■ ■■i■■e■■■■■■■■c■■■■■■I.If/.lf■_..ter■■■■■■■■t■■■t■t■■■t■e■■■■!■■ ■■■■■■■i■■■■■irlf■■t%■/Ie■■■/■■■■■■■■■■■ice!■■■ffft■■■■ef■■t■ i■■■■■■■■/■■■■iiri■■%t■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■tee■■ ■■■■■■■■■■��■■■I�■■■■■!!■■■■■■■■■■■■■■■■■■■■■■■■■■f■■■■■■■fee ■eee■eei■■■■eC�■■■■■■i■■■■ell■■■■■■■■■■■■■■■■■■■■t■■■■■■■■t■ ■■■■■■■■■■eee■■■■■■■■■■■■■ell■■■■■■■■■■■■■■■■■■■■lei■■■■■■■t ■■■t■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■dei■■ice■t■ ■■■lll■■■■■■■■et■■■■■■■■■■■■■■■■■■■■■■■■■■■eee■■■■■■tf■t■■■■ ■■■■■lei■■■■■■■■■■■■■■■■■lei■■■■■■■■■■■■■■■■■■■■teelee■■■■■■ ■■■■■■■■e■■■■■■■■■■■■■■■■■c■■■■■■■■■■■■■■■■■■■■■■■■■eee/■■t■ ■■■■■■■t■■f■■■■■■■■■■■■■■■■■■■f■■■■■■■■■■■■■■■■e■■■i■■■lel■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■eee■■■■■■■■■■■■■■■■■ ■■■■■■■■■c■■■■■■■■■■■■eee■■e■■■■■■■■■■t■■■■■■■■■■■■■■■■■■■■■ plant for a predefined set of assumptions. This set of assump- tions refers primarily to the rates by which each of.the param- eters contributing to the facility's expenses or revenues is escalated over the term being analyzed. Table 3-8 presents the results of the economic analysis for Alternative No. 1 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator), based on electric energy sale prices derived from the continued operation of LP&L Plant No. 2 on gas at the projected natural gas prices. The methodology for projecting natural gas prices is explained in Appendix B. r The economic analysis results are presented for the t reference year 1981 and for 1 -year intervals for the 5 years of 1985 through 1989 with 1985 as the first project year. All 1981 values are taken from Table 3-4. The projected landfill costs for solid wastes are based on the pessimistic scenario (high cost end of the range) in the Battelle Report for 1985 through 1987, and projected by ME for 1988 and 1989. The resource recovery plant's expenses and revenues are based on a project implementation schedule which assumes the completion of plant construction and subsequent startup by October 1, 1984 and the initiation of normal plant operation approximately January 1985. A more refined project schedule for design and construction is currently under implementation and will be submitted shortly as a part of our proposal for ongoing services to the City. 3-39 METCALF & EDDY s H pNcoenO Ohe•1%0en e+,OrlN1Nh �O h �D en ^ ONhO�O hOO m rl a�e+1O &PNP, �O Rf a0 aD a 'O tom•• N n O a� N V1 N a%'h O �0 h rl O h :,p 'I N N1 N O P1 N 0 mInNJN rl v1 Ohrl m m�O O0% rl .i N r♦ LA MN rl rl 1.4P T -1N rl rl� N Nen O+ P1 on^I v v O N co d O O .d O+ d O v1 of 11 O 1O t�co �D m ppm�O 0% em ONha+co hO J V1r C4p �0me►iONm rlO h0 coco.0 dO� ON O h en N co^ D d0e+f1,cc "q `O e+1 O N en .r 0% %0 rl M m m O m V, .r .4 .� m en 00 .II °� rl M 4-4 P1 N N N ri rl V, rl rl •'i rl eh .... OONm.40 S%odm uyS h1 .1400 'O It u1 J 0 d In r% .4 00 0 m r1 0 0 Oa. a%a%a%a%rq r1 rl d a, m Nm h0%Ne+, 10 .� `C N 01 1T mOn, O hd Nen.4 rl en MonONhOOh r4 N rl WN � to rl ...1 00 N -41 h N O P1-4 �0 CD SNm 94 AM en O.i O%h OOJ Ina�0 op en .im dh hmO rlmml N V1 en 10 hhe+1 rl �I tly m ni0 O �O n, n O M v► O+Q In v+ a� m Wf e+ .-1 er^III .O rf a D Na�Nm0 N O .d .•i en and ONhh OHO rl N rid Nrl rl re h rl l'•1 rl C; 0, 9-4 N ONm01 en O�Odrl en com J rl a,h h 10 �0 N en a O 10 en h h Ocori Cl!N N pp O m rl rl h a�O�rlm NODS en .1 1 d T m e•, h h 10 J P1 N N01 �p p %ndmri 14cool,, 10 e+, N o1 01 rl O rl rl d h M O N h In O en ri N .44 N 14.-I rl h rl O ri N d LA rl "i 11 rl m i C'1 en rl C T a+ b O00NNIn 0Nmn,0 Inco 01NhN �ON i p.timmen O �O e�1 d eh 1000rim co JN h rl h h 0% 1D O %V rl A m�O d In O rl en N m J� NNJ e•, O N �O M H n M1 rl N.%o N d m N en d O N N rl O d LA h to b m + O+ co rl •.l J i N N rl rl e+1 rl .i V ^ 4J M m W 7 T a u u o a O w � e0 O 'O A 1 W ra D J n^ rl ri ^ n rl .•i W v D J v v comm I I v v to 0 H �9 4-- y O.i 7 4 O �+ m to M C p 1 O� rl M O O w W m C o W� ca C Y O ��pp m m m w w m +1 Id e0 i O V 0 0 0 m in �m0 00 00 0 O mm w 7^ y .0i a+ lw u i w W O Y 7 w M a ca O w a0+ L N m O J O > 11 '�+ m p W 0 C1 'O it .i to w m b rl ri M d W 0, O W m V4 v .i.OWi N O w m O> O O 3 O aJ W m 'p co m b > a to O o m mow orl u nib Ou4 OOm d 41 O . m e -1 rl .i a+m vO cc MM Om O .i w ew 60 O W m w 7 rl .l to 4.0 O ua d u 41 mM 14 V 0 m a m u 0 L W rl m m m r♦ ,a m e 417 w 4 0 C0 4 O Or., O N m 440 ro 3 O Gw wm OWBOI aeD au3O46 ljl� 14 O y aw .i 00 41 CL O .i W L 0 M r 64 �m a4 m Wei .i 00 w mrm M O e+ .i.i 0 , V4 .4 4 Z .i M w .i m w m m 0 0 w w m V w w w 7 a W N .iR44 e1 0 aMw l W�,ay W O 1 Om MM41O Hm7 M Z Z Wm FconOAOAF Z A a w W www C a O .i a 1 14 > M a a C TL t pq W W w w M M P, P" 1{�� w W W AA>. 1- yy A A A A A4+ N SSSLLLL ������ A ��� u 'r' T. .mom 7.mi 6 7 4p 444 > Y Y Y Y Y K 3 rR 3St�1r7CI V> i6 .1m SSG T X: 3c <If V> ep 051.4f). T47 tp 9> N � '� u u u m w ra w m ! r4 C4 P1.efen%a hmq%OrlN m J11'1%0h40m O rlN n1 in 10 rl rl rl ri ri re rl rl rl rl N N N N N N N �,,,�N enJ 3-40 �ti Figure 3-5 depicts a graphical presentation of the pro- jected variation of the net tipping fee for Alternative No. 1 in comparison with the pessimistic and optimistic (low cost end of the range) scenarios of the projected costs of the present solid waste disposal system involving disposal by sanitary landfill. The projected costs for 1985 through 1987 are taken from the Battelle report and are estimated by ME for 1988 and 1989. The results indicate that, with the resource recovery plant, the net disposal costs and net tipping fee for Alternative No. 1 are expected to decline continuously from 1985, the year of initiation of normal plant operation. The net disposal costs and net tipping fee are projected to turn into credits to the City midway through 1987. The total net disposal costs with the resource recovery plant are estimated at $4,492,000 for 1985 through 1989, compared to $17,412,000 for the optimistic landfill scenario and $26,067,000 for the pessimistic landfill scenario. Therefore, total net disposal cost savings for the period are projected in the range of $12,920,000 to $21,575,000. These savings are exclusive of the additional savings which will probably be obtained because of the reduction in haul costs to the proposed resource recovery plant compared to the new landfill sites under consideration. Table 3-9 presents the results of the economic analysis for Alternative No. 2 - 19395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators). 3-41 METCALF 6 EDDY 1 11 1 1 F 4-1 N1 N M i-4 �'+ -► ONO - MO ONnOCD pp n00 Mn O1 tM v1JnMQ MOCOMNn�4D MCD4l1 -4 1-4 .-1 p .-I� 00 .4 ON O C OO CT N0000 JMCiIO IMNNCD n.4 CDC -I OOJ O W VYNd N M N .-4 ..1 Ln OnO% 1-4 .4 .4 as eq 0 O 1.4 4D 000 MNM.4 .4 N N .4 -O Nvv M M .4 ppNOD.T O O hM Go IMMT O%a 14J N en O M CD O4 M C) OC n 0 V1 4D CNd Jr 0 m N p JOO.-10 dO NO NCO�O n CD O co •'d n114 '-4 1-I .4 NOJ, 4M O. � NMN MO NCn.4 OE CD O\ as000o M'•1 MC -4 1OO O+ O O�� M N ..i rl 1M M M .4 .4 .4 %D 14 .•4 4N N ..4 J -- vON00140 0 r4 OD 1-4 0 n Mn4MnnCDOD 0..104 ao O+0 OJ+nJ O OJCM n.4 oo OO 0a%.4 M%O.4OO J4DCIA .4O .-1.r O+O� O nOl C-4 co na%N Cp 4p O .� CMOJ� J of �O Cf14-4J ndNM.4 O4 CM O4 0;n8n C;-: a 0 O N .4 .4 M .-4 M M .• 4 .-4 .4 4n .•4 .4 1 4 .4 .4 O N Go N 4M O 4T .4 CT M U9 0o J .-1 O O .-1 CT O MJMO O %0 M 4M 0 LOCM Cr1 O+ n NNMMC) J M M 0 0 nC1O 0.40o nd a% 4O d a% .-4 CD 00 OC .4 00 0 � MOM O, O+ O, N O�NMO 04 O .-4 -4 N 0040 .4 1-4 0OJD1D .-1 N N.4N 0040 N M .-4 .•4 .4 Ln .4 M M .4 v y w a 1 N 0o C, CM O .4 0% N N OoO 14 1410% .i �n.4 O /T p 00 CD Mnn 0004.4NN NOO O$O+J NntnnO JO4d00 CM V1NJ r,U, .•i CpO a 40 w u'1 .4 MOO O.4 +M d�Od IDMNMO% .-1 O .4 C 4 d M M nMOo .4 .4 - 11 C; In .4 N .4 N. -4N O � ..4 4� .4 r4 N M.4 .M 1-4 0 0o N N tM Q 4T .4 .•4 0 v1 00 N Y'1 M� 0 n 'D M n O.40o 00M4DOOC Oo •-1MJU5 riMN4O n001� O'. 10 dI dN�O O MJM r-1 nM 4Dm0%D Ort .4Nd 00d LM 4MCr, a r: Lr N d n CD O+ O N N .4 .-1 n N CM %D CM CT CT 0o N N .4 .4 1-4 1 3-42 O a a a a 0D v o 14 4f1 j O ON a O w N Y M M a G O A to T O 14 i v a u u y w w ai i a u u C � o a u •: w p � M 0. a 7 T 4a+ -F 4 F 3 6 J o w 'O O o a +4 w tl A r1 41 O 100 $ s W 61 m N C 6 11 +'4 40 o a J H 0 {+ w 7 Q 4Na G u • a C a a e M Y a y u w 4 w w a O C u h ca > p aaoa`1im0 o u E +4 o a W da u a u w 0 0 4) O 1 41 w u )v 4.+w td a aw'C7A 00 O O C 4•+ > m 41 a O C rn m u 3 w F > 4> u vE ij swi -H M a C4 4j dl E a W > 1+w O N .0i 4 w u CL C E afi ►a+ u C M O u W 0 4 W W C 01 L O M a CC o w •1>•1 u F > w a 7 �4 a u 4 CC9q0 w SGv M 7 1-C4 w d F to 4 N M It M •.J -4 1-4 .-1 .4 1 1 v v v co 0o I 1 1 0 v v 1 1 1 14 Y p u 7 •• a w m °� o 1J+tl d v aJ o S m u a 10 m 4tl a 1-4 G 4.J CO w b C a m C to C M w 0 .0.1 O u Z w b •.C4 w 'C N 0V Y a .4 vowom 044 +4 4.1 w u41 .'-4 m O F aoid 61 'O a ttl O w w Ry •j w a O v y w a 1 CO O m a C 0. a�• L C C a O O 0. .4 l0 'O 0. a w w ro a a N > a w -4 a a w u r1 'O a O a M a w a to w w OD 4n a OC a a 40 w .4 .•1 M w w y u C aJ O 0.w W tl1 a 4 9) W O V C a N •4 OI CSI 0 $4 to m w t0 m low 0 b O 0.p 4 C .-4 ..1a.4 4 a o a a+ a a V ++ 40 4 3 C C 00 w w a4.4wa b q� P.. C 40 >Cn a etl a O w m 1 ari O a N u a a w W 0 a 4-1 M a 'C a s d .0 O .4.0 C6 0.0 ql c .4 A w 0. O w a C 0.w yg N - - C4 0 O aN O w O C W � a 1-1 ca to Iwo Y u 0 41 74 O. 0 O 4a.+ C 144 .4 �ayp0 {~mp 6 FA N$� a a 4 a aO+ Cd 41 W 4J O -4 00 4 0 cc .4 a a p .4 0) 0. N �.-1 a C 00 V 4.+ CL to4) M a N N FA a 6 ul m 11 > O M M 0 0. y .-W 0 0 w -4 *4 00 00 a o 4.4 00.-1 O W .�.4 tl> 4.1 7 w -A 7 r w= a +4 M B to .4 V b O b .-4 a +4 v4 w 4 W w W t0 t0 •O u 40 l0 W w w -0 w w C w v4 w 7 a 7 C a w L M b w 4,1 .-4 O C r1 .4 b w It F a JJ O w u w a -4-0 L, m + wa 4)w O O O Owl d O g t0aOI > D u epi ONi > ewi b ea40 W a eOif oy O .a-1 Ow! C 41 O 4) 1 w Hwtn WOGH «idd d41'+SL w 4 oaa6H CG W W►•4 FxZ ~ T 0 C C w w w w w w w w w w w w C + O O T>.>+TT Tp+ TTT TT O i N aQ+ w v 0. i 1 .•4N MJ NCD nao CT OC•4NM -4 LM 4D 1100 O40 .-4NM -it Ln CD r4 .4 .4 .4 .4 .-4 .-4 .-4 .4 -1 N N N N N N N 3-42 O a a a a 0D v o 14 4f1 j O ON a O w N Y M M a G O A to T O 14 i v a u u y w w ai i a u u C � o a u •: w p � M 0. a 7 T 4a+ -F 4 F 3 6 J o w 'O O o a +4 w tl A r1 41 O 100 $ s W 61 m N C 6 11 +'4 40 o a J H 0 {+ w 7 Q 4Na G u • a C a a e M Y a y u w 4 w w a O C u h ca > p aaoa`1im0 o u E +4 o a W da u a u w 0 0 4) O 1 41 w u )v 4.+w td a aw'C7A 00 O O C 4•+ > m 41 a O C rn m u 3 w F > 4> u vE ij swi -H M a C4 4j dl E a W > 1+w O N .0i 4 w u CL C E afi ►a+ u C M O u W 0 4 W W C 01 L O M a CC o w •1>•1 u F > w a 7 �4 a u 4 CC9q0 w SGv M 7 1-C4 w d F to 4 N M It M •.J 5n �O L6 O O O NOl/$ 33d EJNlddil l3N .•( METCALF d EDDY co 0 Q O LIJ ac a z N � u. Z CL. °.' Z N cr a v ti o � Q Ir C zQ cc LUuj ''� Q Z W ~LU c9 Z cr z Xuj Lu W NLU D Q~ V�CD Q� JQG� a CL N Z Z a a �O L6 O O O NOl/$ 33d EJNlddil l3N .•( METCALF d EDDY r r The explanation is the same as for Table 3-8 except that all 1981 values are taken from Table 3-7 which applies to Alternative No. 2. As for Alternative No. 1, the projected variation of the net tipping fee for Alternative No. 2 in comparison with the pessimistic and optimistic landfill scenarios is plotted in Figure 3-5. The results indicate that, with the resource recovery plant, the net disposal costs and net tipping fee for Alternative No. 2 are expected to decline continuously from 1985. The net disposal costs and tipping fee are projected to turn into credit to the City early in 1987. The total net disposal costs with the resource recovery plant are estimated at $560,000 for 1985 through 1989, compared to $17,412,000 for the optimistic r landfill scenario and $26,067,000 for the pessimistic landfill scenario. Therefore, total net disposal cost savings for the period are projected in the range of $16,852,000 to $25,507,000. Impact of Projected Power Pool Figures Tables 3-8 and 3-9, discussed previously, present the economic analyses for Alternatives No. 1 and 2 respectively based on electric energy sale prices derived from the continued operation of LP&L Plant No. 2 on gas at the projected natural gas prices. Table 3-10 shows the impact of electric energy sale prices from projected power pool figures by listing the results from Tables 3-8 and 3— compared to th 9 ared p e results with 3-45 METCALF & EDDY 3-46 TABLE 3-10. IMPACT OF PROJECTED POWER POOL FIGURES ON ECONOMIC ANALYSIS OF ALTERNATIVES NO. 1 AND 2 LP&L Plant No. 2 Power Pool Net Net Net Net Power disposal tipping Power disposal tipping sale costs fee sale costs fee price, (revenues), (revenue), price, (revenues), (revenue), Year $/kwh $M/yr $/ton $/kwh $M/yr $/ton Alternative No. 1 - New Turbine Generator 1985 0.075 4,935 15.62 0.062 6,820 21.58 1986 0.090 2,973 9.23 0.089 3,121 9.69 1987 0.105 949 2.90 0.099 1,854 5.67 1988 0.120 (1,118) (3.36) 0.108 728 2.19 1989 0.135 (3,247) (9.61) 0.111 516 1.53 Alternative No. 2 - Existing Two Turbine Generators 1985 0.075 3,618 11.45 0.062 5,317 16.83 1986 0.090 1,909 5.93 0.089 2,042 6.34 1987 0.105 150 0.46 0.099 965 2.95 .., 1988 0.120 (1,639) (4.92) 0.108 20 0.06 1989 0.135 (3,478) (10.29) 0.111 (99) (0.29) 1. Based on continued operation of LP&L Plant No. 2 on gas at the projected _ natural gas prices. 2. Based on sale of power from proposed resource recovery plant to the power pool. 3-46 r the projected power pool figures. The projected power pool figures are based on an analysis of data received from the Public Utility Commission of Texas and the Texas Industrial Commission together with projections of fuel costs for gas, oil, coal, water and nuclear. The datareceived from r m the Public Utility commission included data on the generating capacity in Texas, both existing and proposed, distributed by fuel types, and information on the status of the Public Utilities Regulatory ,. Policies Act notes and reserve capacity. The Texas Industrial Commission provided some projections of the growth in popula- tion in Texas between now and 1995. The results indicate that the electric energy sale prices from the power pool figures do not significantly harm the proposed resource recovery plant's economics. Distribution of Charges !" The standard method of determining the economic viability i of a resource recovery project relies on estimating expenses and revenues and then deriving a tipping fee. M&E has used this method and the results are shown in Tables 3-8 and 3-9 for Alternatives No. 1 and 2 respectively. In some instances where the City will be both operator and customer for the produced energy, a different distribution of revenue streams and charges may be preferable. By distributing the charges to operate the plant between the tipping fee and the charge for pp g g produced electric energy, it is 3-47 METCALF 6 EDDY possible to hold both costs below that which would be forecast if the solid waste stream were handled by landfilling and the equivalent amount of electricity were generated using natural gas as a fuel. Table 3-11 shows one such possible method for the distrib- tion of charges as applying to Alternative No. 1 - 1095 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (New Turbine Generator). In this case, the tipping fees for the disposal of the solid waste stream can be held essentially constant and below projected landfill costs, r-, while the charge for the electricity generated in the plant is also held well below electric energy costs derived from the �. continued operation of LP&L Plant No. 2 on gas at the projected natural gas prices. Within the study period, and with the exception of the first year, both costs are well below those projected for the alternative methods. Environmental Impacts The project would comply with State of Texas and Federal limitations regulating the emission of gaseous, liquid and solid materials; odor, and noise, and therefore its impact on the environment is expected to be minimal. The overall environmental quality is expected to improve as the resource recovery facility would replace a large portion of the sanitary landfill. The -- environmental emissions of a sanitary landfill are fugitive in nature and, therefore, are both difficult and costly to control. 3-48 TABLE 3-11. SUGGESTED DISTRIBUTION OF CHARGES FOR ALTERNATIVE NO. 1- 1,395 TPD SOLID WASTE PROCESSING PLANT AND SPREADER -STOKER BOILER PLANT WITH ELECTRICITY GENERATION (NEW TURBINE GENERATOR) (x $1,000) Item 1989 1985 1986 1987 1988 Total expenses 17,177 17,652 18,160 18,706 19,286 Interest on amortization reserve 1,366 1,366 1,366 1,366 1,366 Net disposal 15,811 costs 16,286 16,794 17,340 17,920 Power sale price 0.080 0.090 0.091 0.092 0.093 Electric power sales 11,601 13,312 13,733 14,251 14,682 Net tipping fee 13.50 10.00 10.00 10.00 10.00. Tipping fee revenue 4,266 3,220 3,270 3,330 3,380 (' Total revenues 15,867 16,532 17,003 17,581 18,062 Profit (Loss) 56 246 209 241 142 r+ I 3-49 METCALF & EDDY In contrast, the environmental emissions of a resource recovery facility originate from point sources. Although, they are more concentrated in comparison with the emission of a sanitary landfill, they are also easier to control with available pollution control equipment to any desirable extent. Land Requirements It is estimated that approximately 15 acres would be required for the proposed resource recovery project. This acreage would include all roads, access and egress, parking areas, buildings, and buffer zones. Respectfully submitted, METCALF & D Y. INC. A John Podger Senior Vice President 3-50 APPENDIXES r APPENDIX A ESTIMATED PERFORMANCE OF EXISTING TWO TURBINE GENERATORS r APPENDIX A ESTIMATED PERFORMANCE OF EXISTING TWO TURBINE GENERATORS Alternative No. 2 - 1,395 tpd Solid Waste Processing Plant and Spreader -Stoker Boiler Plant with Electricity Generation (Existing Two Turbine Generators) considers the use of the two 11,500 kw turbine generators, identified as Units No. 4 and 5, in LP&L Plant No. 2. Because it is proposed to operate these turbine generators with the throttle temperature revised from the present 825 deg F to approximately 735 deg F while maintaining the throttle pressure at the present 600 psig, it is necessary to estimate the performance of the turbine generators at the reduced throttle temperature. The methodology in making this estimate follows. Estimated Performance LP&L letter, dated November 23, 1981 to M&E, enclosed test heat rate data, dated October 1981, at three load points for Units No. 4 and 5, based on gas firing. The test data were used to develop Figure A-1 which gives the estimated performance at pre- sent steam conditions. The "Heat Absorbed b Unit 4 y No. Boiler vs Kw" and the "Heat Absorbed by Unit No. 5 Boiler vs Kw" curves were developed by applying an assumed 80 percent boiler efficiency to the test fuel heat input in Btuh at the highest loads in calcu- lating the heat absorbed by the boilers in 8tuh with the assumed boiler efficiencies tapering to 72 to 73 percent at the lightest A-1 METCALF & EDDY loads. These calculated values of heat absorbed by the boilers were plotted against the corresponding test gross generation in kw and extrapolated to 11,500 kw. The "Flow to Throttle Unit No. 4 vs Kw" and the "Flow to Throttle Unit No. 5 vs Kw" curves were developed by dividing the heat absorbed by the boilers in Btuh by the estimated enthalpy rise in Btu per pound across the boilers. These calculated values of throttle flow were plotted against the corresponding test gross generation in kw and extra- polated to 11,500 kw. The "Feedwater Temperature vs Kw" curve was based on performance of a typical four point regenerative feedwater heating cycle similar to the existing cycle. An example of the calculation procedure for Unit No. 4 at the highest gross generation of 10,950 kw in the test follows: Step 1. Calculate heat absorbed by boiler, MMBtuh = 156.5 x 0.80 = 125.2 where: Fuel heat input, MMBtuh = 156.5 (from LP&L data) Fractional efficiency of boiler = 0.80 (assumed for gas firing) Step 2. Calculate flow to throttle, lb/hr = 125.2 x 106 1.,420.8 - 30870 = 112,500 where: Enthalpy of turbine throttle steam at 600 psig and 825 deg F. Btu/lb = 1,42008 A-2 ■■■■■■■■■■■■■■■■■■■■■■■■■ no NONE MEMO ■■M■ - ■■!■ NOON � • NOON - ■■■■■■■■■■■■■■■■■■■■■NOON ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■!■■■■■■■■■■■■Ewe■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■M■■MMMM■■■■■M■M■■MM■W ■■■■■■■■■■■■■■■■■■■■■�%mow% ■■■■■■■■■■��■■■■r.■�%/NOON■ ■■■■■■■�■■■■■■■I./�■%/NOON■■ ■■■■■■■■■■■■■■�%/%/NOON■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■Moa ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■E■■iii■■■iii■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■ ME ME iI,■ ■PALS■■■ ■M■■MEM■ .I./ I7■■■■■ ME rJUMMEME ■■NEMi ■ENME■ MESON MENEM ■■NE■ /IY • IG ■■MM■ ON • I% /7 ■E■■■■■ ■■■/'/ /moi ■■■■■!■■ . .Lr I'i O■■SE■■■■■■ ■■■■■M■■o■■■ EMOMMEMEMEEMM ■ .■ I[I ■O■■EM■■E■■MM■ ■ •. / /� ■■■■M■■M■MM■■M■ %' • /% ■■■■MEM■■MEM■M■ME■ /' /V • ■■■MMMENMM■■M■■■■M■ ■ /% ■■M■■EMNM■■MMM■M■M■■ ■//% • ■■■M■■■M■■■Mim__i-wdMMM ■■M■■ ■%■ ■E■■■MMm0mmulirm"MMEME MEN■■ %%PI ■E■ Ai■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■N■■■■■■NNE■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■M■M■■■M■M■■■■■■M■■■■ ■■■■■■■■■■■■■■■■M■M■M■■■■■■■ ■■■N■■■E■■■■■■E■■■■EM■■■■■■■ ■■■!■■■!■■■■■■N■■■■■■■MON■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■ MEN r Enthalpy of feedwater (saturated liquid at assumed 337 deg F feedwater), Btu/lb = 308.0 Conversion MMBtuh to Btuh = multiply by 106 Unit No. 4's performance was slightly poorer than that of Unit No. 5. To be conservative, Unit No. 4's performance was used as typical of the two units. It is assumed that no changes will be made to Units No. 4 and 5, so that it is only necessary to estimate the performance and capacity based on the reduced throttle steam temperature. An example of the calculation procedures in developing Figure 3-4 Estimated Turbine Generator Performance, Alternative No. 2 - Existing Units at Reduced Throttle Steam Temperature, used previously in Chapter 3, for each turbine generator follows: Step 1. Calculate maximum throttle steam flow at the reduced throttle steam temperature, lb/hr = 118,000 x (1/1.0858)0.5 -- (1/1.1868) = 123,40o where: Maximum throttle steam flow at the present throttle steam temperature, lb/hr = 118,000 (from Figure A-1 at 11,500 kw) Specific volume at the reduced throttle steam temperature, cf/lb = 1.0858. Specific volume at the present throttle steam temperature, cf/lb = 1.1868. A-5 METCALF & EDDY Step 2. Calculate gross heat rate at the reduced throttle steam temperature, Btu/kwh = 11,390 x 6.9953 6.578 12,039 where: Gross heat rate at the present throttle steam temperature, Btu/kwh = 11,390.(from Figure A-1 at 11,500 kw) Theoretical steam rate at the reduced throttle steam temperature, lb/kwh = 6.953. Theoretical steam rate at the present throttle steam temperature, lb/kwh = 6.578. Step 3. Calculate maximum gross generation at the reduced throttle steam temperature, kw = Step 1 (1,370.4 - 311.0) Step 2 123,400 (1,370.4 - 311) 12,039 10,850 where: Enthalpy of turbine throttle steam at 600 psig and 735 deg F. Btu/lb = 1,370.4. Enthalpy of feedwater (saturated liquid at assumed 340 deg F), Btu/lb = 311.0. A-6 Step4. Heat absorbed by the boiler at the reduced throttle steam temperature and 10,850 kw gross generation, j` MMBtuh = Step 2 x Step 3 1— 0�+ ! = 12,039 x 10,850 10 = 130.6 Step 5. The values for Steps 1, 3 and 4 at 10,850 kw are Plotted in Figure 3-4. Step 6. A similar procedure is followed to calculate the 5,425 kw (50 percent load) points assuming that the gross heat rate in Step 2 is increased by 9 percent. The results indicate that each turbine generator will be rerated to 10,850 kw with the performance as shown in Figure 3-4. f A-7 METCALF 6 EDDY APPENDIX B PROJECTION OF NATURAL GAS PRICES APPENDIX B PROJECTION OF NATURAL GAS PRICES The projection of the future price of natural gas is a critical step in the calculation of revenue from the proposed resource recovery plant. Since the City generates electricity using natural gas and since the City's existing facilities do not have provisions to burn a substitute lower cost fuel for electric generation, it is reasonable to set the value for steam or electricity generated by the proposed resource recovery plant at least equal to the equivalent replaced natural gas. All projections of the future value of natural gas under decontrol rely on two basic assumptions: 1. Natural gas will rise in price to be at least equivalent to oil when measured on a dollar per MMBtu basis. 2. Oil will continue to rise in price at a rate at least equivalent to the general inflation rate. Since natural gas has a heating value of approximately 1 MMBtu per Mcubic feet, the first comparison is made by reviewing the projection of crude oil prices. Table B-1 shows the average projected prices of crude through 1990 if one starts with the 1981 price of $32.00 per barrel and assumes an escala- tion rate of 10 percent together with the cost per MMBtu. B-1 METCALF & EDDY These estimates fall within the main stream of projections. Some sources project a faster rise with prices reaching the $60 per barrel level by 1985. We know that the base price of Saudi crude was raised to $34.00 per barrel at the last OPEC meeting and the world average price is now in the $35-$36 range. There have been several projections made based upon different methods for decontrol and various estimates of in- creased production. No matter which projection one uses, one finds a common end point: i.e., the price of natural gas by 1990 will be higher than the 1981 price by a factor of 3 to 5 and will at least reach the equivalent oil price. The cost projections M&E used in the first presentation were based on data from the Resource Analysis and Management B-2 TABLE B-1. PROJECTED PRICES OF CRUDE OIL Year bb 1 MP,ZB t u 1981 $32.00 $5.33 1982 35.20 5.86 1983 38.72 6.45 1984 42.59 7.09. 1985 46.85 7.80 1986 51.54 8.58 1987 56.69 9.44 1988 62.36 10.39 1989 68.59 11.43 1990 $75.45 $12.57 These estimates fall within the main stream of projections. Some sources project a faster rise with prices reaching the $60 per barrel level by 1985. We know that the base price of Saudi crude was raised to $34.00 per barrel at the last OPEC meeting and the world average price is now in the $35-$36 range. There have been several projections made based upon different methods for decontrol and various estimates of in- creased production. No matter which projection one uses, one finds a common end point: i.e., the price of natural gas by 1990 will be higher than the 1981 price by a factor of 3 to 5 and will at least reach the equivalent oil price. The cost projections M&E used in the first presentation were based on data from the Resource Analysis and Management B-2 Group and published in the "Oil and Gas Journal" on July 13, 1981. Since that time, we have obtained projections of costs from American Cyanamid Co. (Corporate Fuel Cost Projections). In addition, four other projections have been obtained. These pro- jections are for industrial use in 1990 and were given in con- stant 1981 dollars. Source 1990 (1981 Dollars) (per MMBtu) National Energy Policy Plan $8.00 Data Resources Inc. 6.62 American Gas Association 6.56 Department of Energy $5.23 These can then be factored to 1990 dollars using the same inflation rates used in projecting the price of oil and they can further be factored by 0.9 to bring the 1981 price in line with the current City costs. The seven projections would then show the following as estimates per Mcubic feet or MMBtu as City fuel costs in 1990. Source 1990 National Energy Policy Plan $16.40 Data Resources Inc. 13.57 American Gas Association 13.45 Department of Energy 10.72 American Cyanamid Co. (Low) 12.09 American Cyanamid Co. (High) 14.95 Resource Analysis (Well head) $12.00 B-3 METCALF & EDDY _ t. The spread among the projections is typical of long range complex economic estimates. None of these, even the National Energy Policy Plan, is out of line when one considers that contracts have been signed in 1981 for uncontrolled gas in the $9-$10 range. In our opinion, the projections of the Resource Analysis Group, which fall in the low middle range, are the best to use for planning of a resource recovery project. r M&E has deliberately discounted all projected natural gas prices after 1985 in order to provide an extremely conservative esti- mate of the revenue from the proposed resource recovery plant. NATURAL GAS PRICE PROJECTIONS $/M14BTU _ Year Resource analysis ME 1985 $ 5.00 $5.00 1986 8.00 6.00 1987 9.50 7.00 1988 10.75 8.00 1989 11.80 9.00 B-4