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Q16: Why are future power prices falling as of May & June 2001?


A16: A combination of events:

a) aluminum and other major users have reduced consumption or curtailed operations, freeing up major blocks of power;

b) some big power plant repairs are done giving more power to the grid;

c) President Bush refused to interfere with the power market so that capital investment brought some additional generation on-line; and

d) some industrial users shut down permanently such as G-P's pulp mill in Bellingham freeing up 30 MW-hrs of consumption for example.  Also in June 2001 Masonite in Ukiah, California shut down permanently a large plant.


Q15: How serious is the power crisis in the Western Unites States?


A15: Very serious in February, March & April 2001, expecting power prices to get even higher and harder to come by.  California, expected to be short in the summer of 2001, already experienced 2 day of blackouts, March 19 & 20.  Depending on the user's contract for firm power and the prospects of getting firm power, investing in a natural gas power plant may be good insurance, reasonable and smart.


Hydro reserves in the Pacific Northwest are below 50% of normal as of June 2001 creating a tentative summer as far as power supplies are available.

Q14: What if I cannot afford a natural gas power plant?


A14: We offer many financing options to meet your budget.  We can show you a detailed chart that shows you exactly how much money you can save every day.  In some cases you save over $35,000 per day!  It's not a question of whether you can afford to do it, but if you can afford not to do it.

Q13: What about emission control?


A13: We have all the necessary experience, equipment, and knowledge to keep your natural gas power plant clean and environmentally friendly.

Q12: What are my options?


A12: We have the equipment right now to give you many fine choices.  Our concept manager will help you find exactly what you need.  We have many options involving heat recovery, steam generation, and emission controls.

Q11: Will there always be enough natural gas?


A10: That is impossible to say.  As for the next decade, the Western United States has much potential in this area.  Alaska is beginning to consider a new natural gas pipeline to meet increased demands.

Q9: Can we sell excess electricity back to the utility companies?


A9: Usually there is a cooperative relationship between the great utilities and the industrial user.  If your plant is short on firm power, then self-generation is a must.  If excess capacity is the result, your utility would most definitely want the power, and at very attractive rates! 

Q8: What about co-generation?


A8: If your plant can use hot air, hot water, or steam, an on-site power generation system is ideal weather owned by the industrial user, or the utility.  The use of excess heat makes the use of natural gas very attractive.  Electrical power and steam at the same time may even idle older power boilers whose efficiency is poor, saving even more money.

Q7: What about the plant whose operation is marginal, what are the options?


A7:  The worst thing that can happen to a marginal operation is for the cost of power to sharply rise and not be assured on long-term attractive rates.  We suggest a "partnering" with your utility to have the utility consider the advantages of "DISTRIBUTED GENERATION" near your plant.

Q6: What is "Distributed Generation."


A6: The past is that we build large power plants like hydro units on the Columbia River.  Then we build large coal plants.  Then we build large natural gas peaking plants.  These remote plants require substantial investment in TRANSMISSION infrastructure.  On the other hand, if we distribute 50 mW or 100 mW plants near large industrial loads, then we defer the investment in transmission equipment.  At a generation cost below $50.00 per megawatt for incremental fuel, these distributed plants can be considered long term operations, not just peaking.

Q5: What is an example of "Distributed Generation?"


A5: A typical paper mill uses between 20 and 40 mW per hour, depending on how many paper machines, grades, and type of pulping.  If a utility were to install two 36 mW Frame 6 gas turbines, heat recovery, and a 30 mW steam turbine at each location, there would be 100mW at each of the three locations, 300 mW total.  Perhaps one site would be a 3-Frame 6 install for 336 mW total.  Part of the steam generated would be sold as heat rather than electricity, but still on the same utility bill.  The user would curtail natural gas use in power boilers, have NOx credits available for the site, and gladly make space for the 2 or 3 Frame 6 generators.  If the utility kept a spare engine in a central location, equipment availability would be high.

Q4: What would be the lead time of distributed 336 mW as described in the above example?


A4: Approximations are permitting 6-9 months, engines and generators 6-7 months, heat recovery 5-6 months, switchgear 4-6 months, emission control equipment 5-6 months, design and site prep construction 8 months, install in 9 months, running in 10 months. 

Q3: What is the strategy to get mid-sized turbines on line in 10 months as opposed to 24 months standard?


A2:  PrimEquip's strategy is to "relocate" power plant equipment.  That means re-use not only equipment, but also engineering, controls, switchgear, and all related infrastructure.  Enormous time, engineering, and equipment cost savings.

Q1: Is there not a big risk in "Under-utilized Equipment"?  Should I travel to see the equipment?


A1: At PrimEquip, the inspections of "prime grade"  equipment are part of the service provided.  Frequently new or near-new equipment is available, or with low hours.  We travel to remote sites for you, check out the details, get maintenance history, oil analysis results, inspect installation integrity, note any missing parts, make de-install plans, collect emission data, and understand the general costs associated with the relocation effort.  If the "good" equipment is selected, the results will be as good or better than new equipment as the equipment is proven to operate at a certain performance level. Emissions and sound issues are solved by others.  Building needs are understood.  Fewer problems to solve.  With guarantees on performance by PrimEquip, the old way of users seeing everything in a remote location before a decision is no longer needed or recommended. The real focus should be on how soon can we get on line?  How well can the installation be done here?  You can stay home to prepare the site and leave the hard relocation work to us!