Berkshire Hathaway Energy
Alert #5, November 14, 2016
Table of Contents
A Linkedin Discussion for BHE
Participate in the Linkedin Discussion Groups
Other BHE companies are active in power
Recent additions to Intelligence System with specific information
on BHBE
McIlvaine has created a program to help BHE
personnel and suppliers connect and utilize an
extensive online service to accelerate and
improve decision making. This discussion group
is limited to BHE and McIlvaine people to
discuss ways to improve the program and to
answer specific questions of BHE people relative
to the program. This group is just one of many
available in the program.
How
should BHE personnel take advantage of this
program?
Should BHE be reactive or
proactive? What role should BHE people have in
shaping the program?
Robert McIlvaine There
are three levels of collaboration for BHE:
a. reactive-non supportive
b. reactive-supportive
c. proactive-supportive
This system is free of charge
to any BHE employee. The many hundreds of hours
of analyzing, posting, and otherwise improving
the value are paid for by subscribers. The
present level is reactive-non supportive. A
reactive-supportive level could involve as
little effort as just indicating that there is
value in the program. A pro-active involvement
could include downloading of the program data
into BHE databases and pursuit of knowledge in
new areas as advised by BHE. Let us know your
thoughts and questions on the level of
collaboration.
Should total cost of ownership include
sustainability or QELD?
A major goal of the program is
to gather and organize all the available data
for the purpose of total cost of ownership
evaluations. Should these evaluations include
sustainability? McIlvaine contends that a life
quality measurement called QELD is much better
and coincidentally supports the BHE position on
many coal, wind, solar, hydro and other issues.
Robert McIlvaine QELD
stands for quality enhanced life days and is a
unique way to measure the net benefit of any
project. The homeowner near a transmission line
suffers a small quality of life reduction but he
and thousands of others enjoy lower power costs
than with some alternative routing. The QELD
rating quantifies the net benefit to all who are
impacted one way or another by the initiative. A
complete description of this evaluation system
is found on the McIlvaine Home page by first
clicking on Free News and Analysis and then
Sustainability Universal Rating System. This
system takes into account life quality to a much
greater degree than some other sustainability
systems. The net result is a much more favorable
rating for a company such as BH.
How will the Coal-fired Market opportunity change under a Trump
Administration?
Trump has promised to bring back coal. He owes his election in part
to the pro coal voters in Ohio, Pennsylvania,
West Virginia, and Kentucky. Trump has vowed to
withdraw support for the Paris Accord on
greenhouse gas reduction. It is unlikely that
there will be any sudden decisions to build new
coal-fired power plants but a number of the
operators of older plants will consider life
extension programs. This will increase the U.S.
market for upgrades and life extension. It may
also have an impact on decisions in India,
Vietnam and even China.
There could be negative effects as well if you are a pollution
system supplier. For example, BHE
is planning on a big NOx control
program at Hunter and Huntington
based on an unfavorable decision by U.S.
EPA to reject the Utah regional haze
plan. Will this decision be reversed? It is
certainly too early to tell.
It is time to step back and make an evaluation of pollution control
based on life quality. Fine particulate is a
killer. Regional haze impacts life
quality. However, CO2 and greenhouse
gases are not pollutants. The present
administration suffered at the polls because
they were seen as not representing the wishes of
citizens whose incomes have not increased. The
benefits of greenhouse gas reduction are not
ones which resonate with the Trump voters and
here is why. McIlvaine has a common metric
to measure all harm and good. It is simple. It
assumes that decisions will be made by voters in
a democracy. Therefore the harm or good is the
judgment by each voter. One of the problems with
greenhouse gas reduction is that the benefits
are in the distant future and mostly will impact
people on the equator. For wealthy citizens with
trusts set up for grandchildren the state of the
world 50 years from now is relevant. For the
Trump voter looking for more income next year
this is not a good option.
You can argue that we owe our grandchildren and the people living
on pacific islands the right to the same life
quality or better than what we have. But in a
democracy the voter makes the decision. We only
spend a fraction of 1 percent of our wealth on
foreign aid. We spend much more on our dogs and
cats. But if voters want to spend their money on
dogs and cats rather than Syrian refugees this
is their right.
It would be very detrimental to the average voter if we did away
with most of our environmental regulations or
with the good work done by EPA. On the
other hand we need a good system to reflect what
the voter should want if properly
informed. McIlvaine has created such as system
and it is explained at
Sustainability Universal Rating System.
This system is based on life quality impacts but also takes into
account tribal values and the present value of
future benefits. If this system had been used
for governmental decisions in the last few
years, it is possible that there would not have
been any surprises in this election.
Trump moving forward to dismantle Greenhouse Gas
Regulations
Trump has already vowed to “cancel” last year’s Paris climate
agreement, which commits more than 190 countries
to reduce their emissions of planet-warming
carbon dioxide pollution, and to dismantle the
Clean Power Plan. He has named Myron Ebell of
the business-backed Competitive Enterprise
Institute to head his EPA
transition team. Mr. Ebell has asserted that
whatever warming caused by greenhouse gas
pollution is modest and could be beneficial.
The Clean Power Plan is the ambitious centerpiece of President
Obama’s climate change legacy and the key to his
commitment under the Paris Accord. At its heart
is a set of Environmental Protection
Agency regulations intended to curb
planet-warming pollution from coal-fired power
plants. If enacted, the rules could transform
the American electricity sector, close hundreds
of coal-fired power plants and usher in the
construction of vast new wind and solar farms.
The plan is projected to cut United States power
plant emissions 32 percent from 2005 levels by
2030.
But the program is currently under litigation by 28 states and more
than 100 companies, and it is expected to go
before the Supreme Court as early
as next year.
Participate in the LinkedIn Discussion Groups
As a BHE subscriber you are eligible to
participate in the following LinkedIn
discussions. You can add application and
technical information or any other information
which will help power plants select the lowest
total cost of ownership products. The
discussions are a bridge between the webinars
and the intelligence system which includes the
database. So you can also send us case histories
and white papers. The postings will be monitored
to eliminate commercial messages which are not
constructive. The service is free of charge to
any power plant in the world. So keep in mind
that viewers might be from Asia or Africa. To
join one of the discussion groups just click on
the LinkedIn group and ask to join.
Power plant high performance pumps
Coal combustion residues and wastewater
emissions
Mercury removal from exhaust gas
Coal-fired power plant instrumentation and
controls
Other BHE companies are active in power
In the previous issue we covered Johns Manville
and Graver power related activities.
Lubrizol is also active with performance
coatings, lubrication oil additives and piping
systems.
Lubrication makes a difference
The varied types of power generation equipment
found around the world place many varying
demands upon industrial gear oils. From
hydro-power generation, through conventional
steam and gas turbines through to modern wind
turbine generators, industrial gear oils need to
have excellent, robust and reliable performance.
When it comes to turbines – gas, steam or combined cycle – and
circulating oil systems, lubricants play the key
role in high-performance operation. These
systems must provide a great deal of power in
often harsh environments. As a result, they
require quality fluid packages that will provide
the anti-wear, anti-corrosion and extreme
pressure protection that will ensure optimum
performance. Lubrizol is a world leader in
quality additives
and packages for turbine and circulating oil
systems. Products are designed to provide peak system performance, with
benefits that include:
·
Excellent demulsibility
·
Superior foam protection
·
Excellent rust protection
·
Low copper activity
·
Good oxidation stability
·
Superior wet and dry filterability
·
Outstanding hydrolytic stability
·
Excellent modified rotary bomb performance
·
Very good EP/anti-wear performance
·
Good seal compatibility
Lubrizol® 5810
is a mainline turbine oil additive system
designed for steam and medium duty gas turbines
with several benefits:
·
May be used to formulate R&O turbine oils using Group I, II or III
base stocks that meet the enhanced
oxidation and
filterability requirements of modern turbine oil
specifications.
·
Can be boosted with Lubrizol® 5101A to provide mild
anti-wear properties for oils used in
lubricating geared turbines
Corzan® HP industrial
piping system is claimed to increase operational
efficiency, minimize downtime and improve
bottom-line performance.
More than nearly any
other process industry, the power generation
industry represents a number of unique
challenges for industrial piping systems. Given
the highly regulated nature of the industry,
there are few choices of acceptable piping
materials. There are even fewer piping systems
that can hold up long-term to the high pressures
and corrosive chemicals commonly used. Corzan HP
industrial piping systems provide an attractive
solution for many areas within the plant,
including underground cooling water loops,
cooling tower risers and headers, demineralizer
systems for creating boiler feed water,
condensate return water applications, flue gas
desulfurization systems, environmental systems
(for coal-fired steam plants) and wastewater
treatment facilities. Made of high-performance
chlorinated polyvinyl chloride (CPVC), they are
inert to most acids, bases and salts, as well as
aliphatic hydrocarbons. That means they can
easily handle even the most aggressive chemicals
commonly used in power generation plants, such
as hypochlorite, caustic soda, sulfuric acid and
sodium sulfate. In addition, they offer superior
impact resistance and abrasion resistance and
can withstand high temperatures. Their stable
material costs, combined with a fast and easy
installation process that minimizes downtime,
make them a highly cost-effective alternative to
such non-metallic piping materials as FRP, HDPE
and polypropylene, as well as higher-priced
metals such as stainless steel and titanium.
These piping systems are supplied by Lubrizol, a
Berkshire Hathaway Company.
Recent
additions to intelligence System with specific
information on BHBE
Here are the
summaries and links to the full articles which
have recently been added to Coal-Fired Power
Plant Decisions (formerly Power Plant Air
Quality Decisions).
Naughton September 2016 Air Permit Application
to modify H2S04 emission limit
Recent testing has demonstrated that the 0.004
lb/MMBtu emission rate is not achievable with
the BACT equipment that has been installed. This
permit application is to re-evaluate the
potential impacts of the SO3 injection system
and permit an H2SO4 rate that will be achievable
given the specific ambient conditions and coal
characteristics that exist at the Naughton Power
Plant. After evaluating the information
submitted by PacifiCorp and reviewing the RBLC
for similarly controlled units, the Division
considers installation of alkali wet scrubbers
on Units 1 and 2, meeting an emissions limit of
0.0055 lb/MMBtu, and meeting a SO3 injection
limit of 4 ppmv, annual average of four (4)
quarterly tests, to represent BACT for Units 1
and 2. Project emissions were estimated based on
potential to emit. The new limit is in effect
for PM based on MACT requirements of 0.03
lb/MMBtu for filterable PM for EGUs, which went
into effect April 16, 2015. The potential to
emit for Unit 1 is based on the limit of 0.03
lb/MMBtu PM (filterable) + 0.007 lb/MMBtu PM
(condensable) and the design firing rate of the
unit. The potential to emit for Unit 2 is based
on the limit of 0.03 lb/MMBtu PM (filterable) +
0.011 lb/MMBtu PM (condensable) and the design
firing rate of the unit. Condensable is based on
maximum historical condensable rate plus
projected incremental increase from Hg control
technology. For Unit 1, the maximum historical
condensable PM emission rate was 0.0070 lb/MMBtu
and the incremental condensable PM increase from
the mercury control technology (calcium bromide
injection – CaBr2) was projected at 0.00037
lb/MMBtu. This provides a total projected
condensable PM emission rate of 0.00737 lb/MMBtu
which was rounded to 0.007 lb/MMBtu in the
September 22, 2015 application to permit the
Unit 1 and Unit 2 H2SO4 emission limits at
0.0055 lb/MMBtu. For Unit 2, the maximum
historical condensable PM emission rate was
0.0111 lb/MMbtu and the incremental condensable
PM increase from the calcium bromide mercury
control technology was also projected at 0.00037
lb/MMBtu. This provides a projected total
condensable PM emission rate of 0.01147 lb/MMBtu
which was rounded to 0.011 lb/MMBtu in the
September 22, 2015 permit application. Note that
the projected incremental CPM increase of
0.00037 lb/MMBtu from the CaBr2 mercury control
technology was included in the December 11, 2013
application to permit the Naughton plant’s
mercury control technology systems.
Calcium bromide success at Coalstrip
Coalstrip is partially owned by BHE PacifiCorp.
Calcium bromide was successfully tested at the
plant in 2007 with the following results. It
achieved about 90% reduction in mercury
emissions and an emission rate of about 1lb/Tbtu
Tags:
BHE Environmental, Inc., Mercury, Calcium
Bromide
Older test data on CaBr2 performance
The older field testing program by NETL included
references to BHE Dave Johnston and Coal Creek
where ACI was compared to CaBr2 Using CaBr2
injection to achieve 85% total Hg removal at the
“representative” PRB-fired unit equipped with an
SCR, results in 20-year levelized costs of 0.13
mills/kWh and $2,800/lb Hg removed. This
analysis shows that Hg control via CaBr2 coal
treatment is not a capital-intensive process and
high levels of FGD Hg capture can be achieved at
relatively low injection rates, particularly at
units equipped with an SCR for Nox
control.
Revision Date:
11/7/2016
Tags:
BHE Environmental, Inc., Calcium Bromide,
Mercury
SCR and calcium bromide to be used at Jim
Bridger 3 and 4
Chad Teply of BHE testified in 2012 as to the
reasons SCR and CaBr2 injection were the best
choice for Jim Bridger 3 & 4. The substantial
capital investment was based on a retirement
date of these units in 2037. The unit 3 system
was to be installed in 2015 and unit 4 in 2016.
The Jim Bridger Units 3 and 4 emissions control
investments proposed in the Request are SCR
systems and associated ancillary equipment for
each unit. Each SCR system would be comprised of
two separate universal reactors, with multiple
catalyst levels; inlet and outlet ductwork; a
shared ammonia reagent system; an economizer
upgrade; structural reinforcement of the boiler
and flue gas path ductwork and equipment; and
extension of the existing plant distributed
control system (“DCS”). An induced draft (“ID”)
fan upgrade and an associated auxiliary power
system variable frequency drive (“VFD”)
insertion is required on Unit 4 only. Jim
Bridger Units 3 and 4 it will be necessary to
add a coal additive, namely calcium bromide
(“CaBr2”), to oxidize mercury and then add a
scrubber additive to prevent readmission of
mercury in the scrubber system. The potential
exists to reduce the coal additive requirements
due to the SCR
Tags:
BHE Environmental, Inc., Fan, Variable Frequency
Drive, Calcium Bromide, Mercury, SCR
Huntington 1 and other Western States CCP plans
Jeff Burks of Energy Strategies presented plans
in October 2015 for Western States to meet CO2
emissions. A graph shows the Huntington 1
emissions with no changes and the goal with
reductions starting in 2022.
Revision Date:
11/7/2016
Tags:
BHE Environmental, Inc., CO2, Regulation
Wastewater permit for coal and combustion
turbine plants in Gillette Wyoming
This 2015 permit authorizes the discharge of
wastewater from six coal fired power plants, two
combustion turbine power plants, and one coal
mine. The Neil Simpson and Wygen generating
power plants and the coal mine are located
approximately six miles east of Gillette,
Wyoming. Most of the wastewater generated by the
facility is recycled, so this facility rarely
discharges. Discharges usually occur in response
to large storm events. Note below that the
facilities are air-cooled, so they do not
discharge cooling water. Therefore, 316(b)
regulations do not apply. In addition, make-up
water is partially treated water from the
Gillette wastewater treatment plant, not waters
of the Wastewater originating from the variety
of sources is routed to a two cell settling
pond. The first pond, called the Bottom Ash
Settling Pond, functions to provide settlement
for sediments and ash by-products. Wastewater
from this pond overflows to the second pond
called the Clear Pond. The Clear Pond has an
outlet structure (Outfall 001) that allows the
discharge of the treated wastewater to Donkey
Creek. However, because a majority of the
wastewater that enters the settling ponds is
recycled, there is seldom a discharge to the
creek.
Revision Date:
11/7/2016
Tags:
BHE Environmental, Inc., Regulation, Wastewater
Rate increase based on various projects at BHE
RMP
This rate increase testimony shows the large
number of people in various groups at RMP and
its consultants who are involved with FERC
discussions. The Commission approved RMP’s
application for a rate increase, with
adjustments, for a revenue requirement of
$20,188,227 from $32,365,515, a return on equity
of 9.5% from 10.00%, and a rate of return of
7.412% from 7.669%On March 3, 2014, RMP
submitted an application requesting authority to
increase its retail electric utility service
rates by approximately $36.1 million per year,
or 5.3 percent. RMP included with its
application the prefiled direct testimony of 17
witnesses: A. Richard Walje, RMP President and
Chief Executive Officer (Ex. 2); Bruce N.
Williams, RMP Vice President and Treasurer (Ex.
3); Samuel C. Hadaway, a principal in FINANCO,
Inc., Financial Analysis Consultants (Ex. 4);
Steven R. McDougal, RMP Director of Revenue
Requirement (Ex. 5); Kelcey A. Brown, RMP
Manager of Load Forecasting (Ex. 6); Gregory N.
Duvall, RMP Director of Net Power Costs (Ex. 7);
Cindy A. Crane, Vice President Inter-West Mining
Company and Fuel Resources for PacifiCorp Energy
(Ex. 8); Rick T. Link, Director of Commercial
and Trading for PacifiCorp Energy (Ex. 9); Chad
A. Teply, Vice President of Resource Development
and Construction for PacifiCorp Energy (Ex. 10);
Dana M. Ralston, RMP Vice President of Thermal
Generation (Ex. 11); Mark R. Tallman, RMP Vice
President of Renewable Resources (Ex. 12);
Natalie L. Hocken, RMP Senior Vice President of
Transmission and System Operations (Ex. 13);
Douglas N. Bennion, RMP Vice President of
Engineering Services and Asset Management (Ex.
14); Erich D. Wilson, RMP Director of Human
Resources (Ex. 15); Douglas K. Stuver, RMP
Senior Vice President and Chief Financial
Officer (Ex. 16); Joelle R. Steward, RMP
Director of Pricing, Cost of Service and
Regulatory Operations (Ex. 17); and F. Robert
Stewart, RMP Regulatory Consultant, Customer and
Regulatory Liaison in the Customer Service
Department. (Ex. 18).
2014 BHE testimony on the gas turbine, coal and
geothermal projects in Utah
The purpose of Chad Teply testimony was to
support the prudence of capital investments in
the new Lake Side 2 combined cycle combustion
turbine (“CCCT”) natural gas fueled resource,
certain pollution control equipment retrofits on
existing coal fueled resources, and other
significant generation plant projects being
placed in service during the test period in this
docket, July 1, 2014 through July 2015. This
included the Hayden SCR and the Blundell
geothermal resource well integration project and
1 the Naughton Unit 3 natural gas conversion
project. The Blundell geothermal resource well
integration project integrates two 108 new
geothermal resource wells into the Blundell
generation system. One production well and one
injection well, along with associated
appurtenances, have been drilled and will be
placed in service to support continued reliable
electricity production at the site. Lake Side 2
is nominally rated at 548 MW base load 130 and
97 MW of duct firing for a total net capacity of
645 MW at the average 131 ambient temperate of
52 degrees Fahrenheit. Each combustion turbine
exhausts 132 into its own heat recovery steam
generator which then commonly supply a single
133 steam turbine generator. The electrical
energy generated by Lake Side 2 will be
delivered to a new 345 kV point of
interconnection substation (Steel Mill) where it
will tie into the PacifiCorp transmission
system.
PacifiCorp estimates of CCR compliance are
challenged
HEAL questioned the PacifiCorp plans to meet CCR
in September 2016. (See details in McIlvaine's
Coal-Fired Power Plant Decisions.) As of October
19, 2015, PacifiCorp had nine surface
impoundments and four landfills that are subject
to the CCR rule. PacifiCorp is currently in the
process of closing four of the nine
impoundments. *However, EPA recently vacated the
provisions of its 2015 coal ash rule exempting
early closure impoundments. Therefore,
PacifiCorp’s four early closure impoundments
will be subject to additional compliance
obligations, including monitoring and possibly
remediation requirements. In addition, Rocky
Mountain Power has posted CCR Rule and
Compliance Data and Information on its Webpage,
as the EPA’s CCR rule requires. These documents
outline the company’s plans with regard to the
Dave Johnston, Hunter, Huntington, Jim Bridger,
and Naughton power plants. While this
information is helpful, HEAL says is incomplete
for purposes of integrated resource planning.
MidAmerican Energy Company Energy Isolation
Program
Mid American Energy Isolation program sets
procedures for maintaining wind components
including lubrication pumps. Tom Daft of Mid
American presented the program focused on
keeping wind turbines safe and reliable. There
are procedures for the following • Main Tower AC
Tower Breaker • 575 VAC to LVMD; Control Voltage
• 50 kVa Transformer • Converter • Pitch Slip
Ring • Gearbox Lubrication Pump • Gear Box
Cooler Fan • Yaw Drive System • Hydraulic Brake
Unit and 10 other systems.
PacifiCorp Naughton reduces pulverizer
maintenance with new lubrication system
At the Naughton plant of PacifiCorp an advanced
filtration technology for the coal pulverizer
was determined to be readily available for heavy
gear oil that would meet and solve the
maintenance problems. An off-line kidney loop
filtration package using a high-efficiency,
high-dirt-holding capacity, synthetic filter
media was procured and installed. The package
uses two filter housings mounted in series, with
a common-sized element in both housings. The
filter elements initially recommended for the
trial installation were rated at Beta 25=200 in
the first stage and Beta10=200 in the second
stage. Oil flow was delivered by a vane pump
rated at 10 gallons per minute for a 460
centistoke (cSt) (2,500 SUS) gear oil.
Temperature ranges of the system fluid varied
from a low of 65 degrees Fahrenheit (18 degrees
Celsius) when idle, up to 130°F (54°C) during
normal operation. The filtration package is
installed with the suction line coming into the
filter bank directly from the bottom of the
reservoir; the outlet, or filtered discharge
line, is piped directly into the top of the
reservoir. The filter element condition is
monitored by differential pressure gauges
installed on each filter housing with a target
of 25 to 28 psig as an indicator of element
loading; the elements were changed out prior to
allowing the internal bypass valve to begin
opening. Other features of the filtration
package include upstream and downstream sampling
valves to allow gear oil samples to be taken
without having to shut down the system.
