American Gas - May 2014 - (Page 22)

state watch Footprint Power's new plant in Salem, Mass., will feature a quick-start combined-cycle gas turbine. Pipeline Solutions. Proven Results. didn't have any regulations promulgated under it," Peter Furniss, CEO of Footprint Power, told American Gas. "CLF was concerned that any fossil fuel-based development was being done in the absence of real guidance." Footprint Power will operate the existing Salem Harbor coal- and oil-fired plant until its scheduled shutdown this month. It will then replace the facility with a 630 MW quick-start combined-cycle gas turbine that is scheduled to come online in June 2016. The new unit will be permitted to operate normally till 2026, at which time it must begin ratcheting down emissions. The plant can achieve those reductions through carbon capture or by purchasing credits through the Northeast's Regional Greenhouse Gas Initiative cap-and-trade program. With a shutdown date of Jan. 1, 2050, the plant will have an imposed lifetime of less than 34 years. The average age of gas-fired generators retired between 2000 and 2010 was 48 years, according to the U.S. Energy Information Administration. What does that mean for Footprint Power's return on investment? "Discounted cash flows that are more than 30 years out have a relatively small impact on a net-present-value basis on your overall return on investment," Furniss explained. "But we look at this more broadly. We see greater penetration of renewables into the system, with our facility serving more as a balancing plant, firming renewables. We wouldn't be surprised if we get to 2050 and find we're running maybe 15 percent or 20 percent capacity. At that point it might make sense to extend the permit." -Eric Schoeniger nebraska Follow the Gas New distribution line will bring jobs and economic opportunity NORFOLK, NE -South Dakota-based Black Hills Energy will build a new 50-mile distribution line to support the location of a Tejas Tubular pipe manufacturing plant slated to bring 200 new jobs to northeastern Nebraska. The distribution line, the second serving the city of Norfolk, will increase the natural gas supply to the area by more than 50 percent when it is completed in fall 2015. While the additional capacity was a prerequisite to Houston-based Tejas Tubular's locating there, Jeff Sylvester, vice president of operations for Black Hills, told American Gas the new line will allow the area to attract additional manu- * Engineering * Survey/GIS * Pipeline Integrity * Field Services * Project Management ContaCt uS at... 616-392-5938 | HollandEngineering.com A Natural Gas Distribution Management Company Project Development * Asset Acquisitions Engineering and Constructions * Project Finance Account Administration * Compliance Operations and Maintenance * Gas Supply Management Marketing * Customer Service * Billing and Collections 4100 Holiday Street NW Suite 201, Canton Ohio 44718 P: 1.330.498.9130 * F: 1.330.498.9137 1.888.863.0032 Offices: Holland, MI * Southfield, MI * Ft. Collins, CO 22 AmericAn GAs may 2014 AmericanGas_"Proven_Results"_ad_final.indd 1 4/2/14 4:51 PM www.utilitypipelineltd.com http://www.utilitypipelineltd.com http://www.HollandEngineering.com http://www.HollandEngineering.com http://www.utilitypipelineltd.com

Table of Contents for the Digital Edition of American Gas - May 2014

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American Gas - May 2014