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your own question
Why are future power prices falling as of May
& June 2001?
A combination of events:
aluminum and other major users have reduced
consumption or curtailed operations, freeing up
major blocks of power;
some big power plant repairs are done giving
more power to the grid;
President Bush refused to interfere with the
power market so that capital investment brought
some additional generation on-line; and
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.
How serious is the power crisis in the Western
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.
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.
What if I cannot afford a natural gas power
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.
What about emission control?
We have all the necessary experience, equipment,
and knowledge to keep your natural gas power
plant clean and environmentally friendly.
What are my options?
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.
Will there always be enough natural gas?
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.
Can we sell excess electricity back to the
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!
What about co-generation?
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.
What about the plant whose operation is
marginal, what are the options?
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.
What is "Distributed Generation."
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.
What is an example of "Distributed
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.
What would be the lead time of distributed 336
mW as described in the above example?
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.
What is the strategy to get mid-sized turbines
on line in 10 months as opposed to 24 months
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.
Is there not a big risk in "Under-utilized
Equipment"? Should I travel to see
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!