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District Energy Now
Volume 11 Number 9 April 1996 Welcome New Members!
We hope you will join us in welcoming
the following new members of IDEA! Bob Cash Accounts Manager Drew Indutrial Division of Ashland Chemical 3801 Bent Tree Drive Edmond, OK 73034 (405) 340-4732
(405) 340-4612 fax Kelly Tueller Asset Manager General Services Administration 7th & D Streets, SW Room 7645 Washington, DC 20407 (202) 708-7392
(202) 708-7671 fax Blake B. Morrison Project Manager Florida Power & Light Company PO Box 021900 Miami, FL 33102-9100 (305) 552-3465
(305) 552-4430 fax Kenneth A. Mingo Utilities Manager University of Minnesota Facilities Management 319 - 15th Avenue, SE Room 400 Donhowe Building Minneapolis, MN 55455 (612) 626-7865 (612) 626-8950 fax
referred by Harvey Claussen, Claussen
Engineering Donald ACorky@ Koopmans National Sales Manager Ken Andersen National Marketing/Sales Uponor N.A. PO Box 343 Caledonia, MI 49316 (616) 891-9776
(616) 891-0103 fax Torsten Astrom Vice President, Power Systems Per Stahle Business Manager, Power Systems Wartsila Diesel 201 Defense Highway, Suite 100 Annapolis, MD 21401 (410) 573-2100
(410) 573-2200 fax
Calendar of Events AGFW Conference >96 - District Heating and Cogeneration - Energy for People with Vision@ and the 12th District Heating Trade Fair May 7-10, 1996 Leipzig, Germany
Contact: VWEW Fair Service, 49-69-6304-355
or 49-69-6304-359 fax Chilled Water Plants for Central and District Cooling Systems May 13-17, 1996 University of Wisconsin-Madison
Contact: University of Wisconsin-Madison,
Department of Engineering Professional Development, (800) 462-0876,
(608) 263-3160 fax or e-mail: custserv@epd.engr.wisc.edu 87th Annual IDEA Conference and Tradeshow June 8-12, 1996 The Sheraton Washington Hotel, Washington, D.C.
Contact: IDEA, (202) 429-5111 ASHRAE Conference June 22-26, 1996 San Antonio, TX
Contact: ASHRAE, (404) 636-8400 IDEA European Study Tour August 31-September 7, 1996 Sweden, Denmark
Contact: IDEA, (202) 429-5111 Geothermal Resources Council 1996 Annual Meeting - Geothermal Development in the Pacific Rim September 29-October 2, 1996 Portland Marriott Hotel, Portland, OR Contact: Geothermal Resources Council, PO Box 1350, 2001 Second Street, Suite 5, Davis, CA 95617-1350
(916) 758-2360 11th Annual Cooling Conference October 2-4, 1996 The Midland Hotel, Chicago, IL
Contact: IDEA, (202) 429-5111 Nordic District Heating Symposium October 28-29, 1996 Copenhagen, Denmark
Contact: Danish District Heating Association,
45 75 52 88 11 or 45 75 52 89 62 fax International District Heating Conference October 30-31, 1996 Copenhagen, Denmark
Contact: Danish District Heating Association,
45 75 52 88 11 or 45 75 52 89 62 fax National Congress of the Danish District Heating Association October 31-November 1, 1996 Copenhagen, Denmark
Contact: Danish District Heating Association,
45 75 52 88 11 or 45 75 52 89 62 fax
Washington, DC Meeting Watch
The final plans are wrapping up for
the 87th Annual Conference and Tradeshow in Washington, D.C.,
June 8-12, 1996. Here is the Preliminary Program as it stands.
Partnering:
Growth Opportunities for District
Energy
PRELIMINARY PROGRAM Saturday, June 8 10:00 am-3:00 pm Decorator Set-up 10:00 am-6:00 pm Registration 11:00 am-5:30 pm Optional Tour - AAnnapolis - A Day by the Bay@ (additional fee required) 12:00 pm-3:00 pm Executive Committee Meeting 3:00 pm-5:00 pm Board of Directors Meeting
3:00 pm-5:00 pm Exhibit Move-In Sunday, June 9 5:30 am-12:00 pm Golf 8:00 am-5:30 pm Registration 8:00 am-11:00 am Exhibit Move-In 11:30 am-12:30 pm Ribbon-Cutting Pre-Luncheon Reception in Exhibit Hall with soft drinks and iced tea 12:30 pm-4:00 pm Spouse/Guest Tour - AMore Than Just a City Tour of Washington 12:30 pm-2:15 pm Lunch - Keynote Address by Robert A. Peck, Commissioner for Public Buildings, U.S. General Services Administration (invited) 2:15 pm-2:45 pm Dessert Break in Exhibit Hall 2:45 am-5:00 pm Technical Tours Scheduled of the General Services Administration Central Heating and Refrigeration Plant, and the National Institutes of Health steam and chilled water plant
6:00 pm-10:00 pm A Capital Evening
Monday, June 10 7:00 am-8:00 am Continental Breakfast 7:00 am-5:00 pm Registration 8:00 am-10:15 pm Session 1A - Partnering Session 1B - Cooling Session 1C - International 8:30 am-2:00 pm Spouse/Guest Tour - AWashington During WWII and the Holocaust Memorial Museum@ 10:15 am-10:45 am Break in Exhibit Hall 10:45 am-11:30 am Exhibit Photographs 10:45 am-12:15 pm Session 2A - Partnering Session 2B - Cooling Session 2C - Energy, Environmental Policy and Regulation 12:30 pm-2:00 pm Lunch - Box Lunch in Exhibit Hall 2:00 pm-3:30 pm Session 3A - Deregulation Panel 3:30 pm-4:30 pm Forum Meetings - PM Forum, Marketing, College/University, Administration & Finance, Distribution, International 5:00 pm-7:00 pm Olympic Theme Reception in Exhibit Hall
Sponsored by York International
Tuesday, June 11 7:00 am-8:00 am Continental Breakfast 7:00 am -5:00 pm Registration 7:30 am-12:30 pm Spouse/Guest Tour - ATour of the White House and the National Cathedral@ 8:00 am-10:15 pm Session 4A - Heating Session 4B - District Heating and Cooling Session 4C - Cogeneration 10:15 am-10:45 am Break in Exhibit Hall 10:45 am-12:15 pm Session 5A - Heating Session 5B - Cooling Session 5C - System Management & Operations 12:30 pm-2:00 pm Lunch - IDEA Business Meeting 2:00 pm-2:30 pm Dessert Break in Exhibit Hall 2:30 pm-4:00 pm Technical Session 6A - Heating Technical Session 6B - Marketing/Customer Service Technical Session 6C - International 3:00 pm-6:00 pm Exhibitor Move-Out 4:00 pm-5:00 pm Forum Meetings - Cooling, Fuels, Measurements & Controls, Research & Development, Safety, Environment & Operations 6:00 pm-10:00 pm President's Banquet $ Reception $ Dinner $ Awards Ceremony $ Dancing
Sponsored by Comfort Link and RMF,
Inc.????? Wednesday, June 12 7:00 am-7:30 am Continental Breakfast 7:30 am-8:30 am AWhat Works and What Doesn=t Work When it Comes to Meeting With Elected Officials,@ Michael E. Dunn 8:30 am Buses depart for Capitol Hill 9:00 am-1:00 pm Congressional Visits
1:30 pm-4:30 pm Board of Directors
Meeting
Sponsorships:
The following sponsorships are available for the 87th Annual
Conference and Tradeshow, June 8-12, 1996 at the Sheraton Washington
Hotel in Washington, DC: Theme Party, Sunday, June 9 $5,000 Opening Luncheon and General Session, Sunday, June 9 $3,500 Lunch, Monday or Tuesday, June 10 or 11 $3,000 Breakfast, Monday ,Tuesday or Wednesday, June 10,11 or 12 $2,500 Refreshment Breaks $2,500 Wine for President's Dinner $2,500 Badges $1,500 Conference Proceedings $1,250 Conference Program $1,000
Notepads $1,000
For more information about sponsorships
please contact Kevin Brown, Trigen-Philadelphia Energy Corporation
at (215) 875-6900 or Tanya Vetter, IDEA at (202) 429-5111.
Getting Prepared to Meet with Legislators
If you are attending the 87th IDEA Annual
Conference and Tradeshow, you should plan to take part in Legislative
Day, Wednesday, June 12, 1996.
Since this year=s
IDEA conference is being held in Washington, DC, for the first
time ever, we hope that all members will take advantage of being
in the nation=s
capital and participate in Legislative Day. A Legislative
Day will be organized to allow attendees to meet with their
Senators and Representatives. Appointments will be set up for
Wednesday morning between 9:00 a.m. - 1:00 p.m. depending on the
legislators=
schedules.
To register attendees must fill out
the special registration form, which is in the registration packet,
and return it to IDEA by May 13. Once the form is submitted to
IDEA, staff will organize the appointments and let you know when
and with whom you will meet.
If you are interested in participating,
there are a few things that you should do to prepare for these
meetings:
1) Get together information about your
organization to use to explain your impact in your district: How
many square feet does your system serve? Do you heat and/or cool?
How many customers (buildings and people) does your system serve?
How many employees in your company? How much does your company
pay in taxes (Local, State and Federal)? Does your company do
any grass roots lobbying? Brochures about your company.
2) Make contact with your Representative=s
local office to introduce yourself and your company.
3) Think about what message you want
to convey in the approximately 20 minutes or less that you will
have with the legislator. Remember, all House and Senate buildings,
including the Capitol, are heated and cooled by district energy
and most of the employees on the Hill do not realize it.
IDEA will provide each participant in
Legislative Day with a packet of information. The packet
will include: a brief overview of the association and its mission,
a magazine that highlights the district energy systems in Washington,
D.C., including the Capitol Power Plant, a list of the utility
and college/university members, and a white paper.
The general message that the association
hopes to convey is that district energy is efficient, especially
with cogeneration, and is therefore beneficial to the environment.
4) Plan on following up after your meeting
with a thank you letter restating the points from your meeting
and answering any other legislator=s
questions that may have arised during the meeting.
We hope that everyone attending the
annual conference will take advantage of this rare opportunity
to meet with legislators while you are in the nation=s
capital. Don=t
forget to mail or fax your Legislative Day Registration
Form by May 13.
ASHRAE Solicits District Energy
Papers ASHRAE Technical Committees 6.2 on District Heating and Cooling and 9.5 on Cogeneration Systems are inviting papers on DHC and Cogeneration Systems Maintenance, Repairs, Renovation, Replacement and Longevity. These papers would be presented at a seminar in Philadelphia in January 1997 and subsequent symposia in Boston in June 1997 and in San Francisco in January 1998.
Abstracts are due June 1, 1996. They
should include the topic and scope of the paper, and emphasize
the practical aspects and resulting benefits. Deadline for the
papers for the symposia is November 15, 1996, for technical review.
Send abstracts to: Eino O. Kainlauri,
3604 Ross Road, Ames, IA 50014-3964 or fax to (515) 294-1440.
SUN DAY to be Celebrated on April
21
SUN DAY 1996 will be the fifth annual
national celebration of renewable energy (i.e., solar, wind, geothermal,
biofules, hydroelectric) as well as energy conservation and energy-efficient
lighting, heating and cooling, building, industrial, energy generating,
agricultural, and transportation technologies.
SUN DAY 1996 will be celebrated on Sunday,
April 21. Its four primary objectives are:
1) Educate the general public, the media
and decision makers about the status, and potential benefits of
energy-efficient and renewable energy technologies.
2) Showcase the programs and technologies
being sponsored by members.
3) Encourage new public and private
initiatives to expand the use of energy-efficient and renewable
energy technologies.
4) Demonstrate the breadth of public
support for sustainable energy technologies and challenge policies
that would undermine their development.
For more information, contact SUN DAY
at (301) 270-2258. Trigen Energy Closes Financing on 150 MW Grays Ferry Cogeneration Project
Trigen Energy Corporation, an IDEA member,
announced on March 11, 1996 that the company and its partners
have closed the construction and term financing for the 150 MW,
$167 million cogeneration project to be constructed at Trigen's
Schuylkill Station in Philadelphia.
Steam will be sold under a 25 year agreement
to TrigenPhiladelphia Energy Corporation, owner of the district
energy system in Philadelphia. Electricity will be sold under
a 20 year contract to PECO Energy Company. The base load project
will be capable of producing 150 MW of electricity and over 1.2
million pounds per hour of steam. The Grays Ferry Cogeneration
Facility will be dualfueled, using natural gas with #2 oil
as back up. Construction has begun with service expected to commence
in the fourth quarter of 1997. Trigen will operate the facility
and will be managing general partner when the facility becomes
operational.
Thomas R. Casten, Trigen's president
and CEO stated, "This project is a major step toward our
mission of producing heating and cooling with one half the fuel
and one half or less the pollution of conventional generation.
The overall efficiency of generation will be 2.5 times the present
efficiency of the average electrical generation reported by the
U.S. Department of Energy... We believe this will be one of the
world's most efficient energy production facilities."
The Grays Ferry Cogeneration Project
is an equal partnership of subsidiaries of Trigen Energy Corporation,
PECO Energy Company, and O'Brien Environmental Energy, Inc. Chase
Manhattan Bank, N.A. served as the lead lender and arranger of
the project financing. Westinghouse will provide a 501D5A
Gas Turbine Generator for the project and act as the general contractor
for the construction phase. Gas will be supplied by Aquila Corporation
in Omaha, Neb., a whollyowned subsidiary of Utilicorp.
Interstate transportation will be provided by Texas Eastern Transmission
Company.
IPALCO's MidAmerica Energy Resources
Acquires Power Management Firm MidAmerica Energy Resources, Inc. (MAER), an IPALCO Enterprises company and an IDEA member, announced on March 25, 1996, that it acquired American Energy Service Corp., a firm designed to assist consumers in power purchases, sales and transaction restructuring. American Energy has offices in Cincinnati, Ohio, and Kansas City, Kansas, and will actively participate with MAER on a national basis.
"We are pleased to team our expertise in fuel procurement, energy management and brokering, utility negotiations, project development and regulatory affairs with the many services provided by the growing MidAmerica Energy
Resources family," said Gregory E. Elam,
American Energy's President. American Energy complements another MAER program, Vital Resource Management (VRM), which was launched last August. VRM offers customers energy solutions from a wide variety of products and services, including conservation and performance contracting, energy audits, high voltage power maintenance and onsite facility operation and maintenance. VRM has national marketing activities underway in 12 states.
MAER operates the second largest district cooling system in North America, which is located in downtown Indianapolis, and through other subsidiaries has operated the district heating and cooling system in downtown Cleveland, Ohio, since 1993.
MAER is a nonregulated subsidiary of
IPALCO, a multistate energy company providing a variety
of energy products and services.
People in the News
Cleveland Energy Resources, an IDEA member,
announced on March 27, 1996 the promotion of Faithe Arden to executive
director of administration and Rodney Eubank to executive director
of operations. Arden has been with CER since 1990 and Eubank
began working with CER in 1992. Cleveland Energy Resources owns
and operates the district steam and chilled water utility serving
downtown Cleveland.
District Energy St. Paul, an IDEA member, announced
on March 13, 1996 the appointment of Joyce C. Anderson as vice
president. Anderson has been with the company since 1989. District
Energy also appointed Matthew J. Schuerger to executive vice president.
District Energy has operated a hot water district heating system
in downtown St. Paul since 1983. District Cooling St. Paul
began operating a chilled water district cooling system in
April 1993.
Northwind Boston has announced Robert P. Thornton
as the General Manager and Chief Operating Officer of the new
system in Boston, Massachusetts. Thornton has been in the district
energy industry for nine years and worked previously with Cleveland
Energy Resources and Energy Networks, Inc.
Facilities Design & Management
Features Article on DE
AWith
District Energy, Buildings Stay in the Loop,@
was published in the March 1996 issue of Facilities Design
& Management. The article compared district energy=s
come back in popularity to how music and fashions enjoy revival
years later.
The article explains how district energy can
be more cost effective for building owners and the environmental
benefits that go along with district energy. IDEA Historian,
Morris Pierce, University of Rochester, is quoted in the article
along with IDEA Executive Director, John L. Fiegel. Fiegel summarized
why facility managers should use district energy by stating, AOutsourcing
the energy management function allows building managers to do
what they=re
supposed to do, which is rent out space.@
If you are interested in buying reprints of
the article, mail or fax a written request to IDEA with the quantity
that you would be interested in purchasing. If there is enough
interest, you will be notified and a group reprint order will
be done.
Trigen Energy and Gentor Corp. Form Strategic
Alliance
On March 25, Trigen Energy Corporation, an
IDEA member, and Gentor Corporation of Monterrey, Mexico, announced
an agreement for a joint venture to complete the installation
and utilization of 36 MW of new cogeneration capacity and develop
additional cogeneration opportunities in Mexico. The Trigen-Gentor
joint venture will provide electricity and steam to manufacturing
sites throughout Mexico that produce denim, cardboard, penicillin,
chemicals, and processed food.
The cogeneration sites employ mobile cogeneration
units (MCU) manufactured and distributed by Gentor subsidiary,
AGC Project Development, Inc., Tulsa, Oklahoma. Gentor Corporation
is one of the largest groups of industrial companies in Mexico.
Of the twelve machines sited in Mexico, eight are already in
operation and the remainder will be operating by the third quarter
of 1996.
Article in HPAC Explains Hidden
Costs of Chillers
ASelecting
Chillers in the 90s: Accounting for Hidden Costs,@
looks at the hidden costs that need to be accounted for before
purchasing a new chiller. The article compares electric, 2-stage
direct-fired absorption and engine-driven screw comp. chillers
by typical auxiliary energy use, auxiliary energy costs, annual
maintenance costs, annual water costs and installation costs.
The article was published in the March 1996
issue of HPAC Heating/Piping/Air Conditioning.
Palmark, Inc., a unit of SCANA Corporation's
subsidiary, has signed a contract with Brooklyn Navy Yard Cogeneration
Partners, L.P. to operate and maintain a 286 MW combinedcycle
cogeneration power project located at the Brooklyn Navy Yard in
Brooklyn, New York. The BNYCP partnership is made up of affiliates
of Edison Mission Energy of New York, Inc., and York Research
Corp.
The facility will sell electricity and steam
to Consolidated Edison of New York, Inc., an IDEA member, Brooklyn
Navy Yard Development Corporation and the Red Hook Water Pollution
Control Plant.
Legislative Update
[separate section for these 7 articles]
Since early January, IDEA has been testing
a system for monitoring state and federal legislative and regulatory
developments. Experience to date suggests that such a system
could help IDEA members stay informed about developments which
could have a substantial impact on their organization.
During the test, every 12 weeks Smith
Bucklin & Associates searches a variety of computer databases
using key words to identify legislation, regulations or media
stories potentially relevant to district energy. Mark Spurr,
IDEA Legislative Director, then reviews this information and prepares
a summary of relevant items for distribution via FAX to the Board
of Directors and the Principal Managers Forum Steering Committee.
This monitoring system has uncovered many types of information which can help IDEA members keep currrent on legislative, regulatory and business developments in the rapidly changing energy industry, such as: *Federal and state proposals and FERC developments relating to utility deregulation *Impacts of restructuring on municipal utilities and other types of energy providers *Infrastructure financing and outsourcing for college/university energy systems *Proposals for changes in state energy taxes *Proposals for deregulation of district energy rates *Proposals for emissions trading and other innovative air quality regulatory programs *Developments affecting privatization of federal energy facilities
In April the PM Forum will make recommendations to the Board regarding continuance of this program and how to disseminate the information to IDEA members.
The U.S. Environmental Protection Agency (EPA)
is expected to finalize a model Open Market Trading Rule (OMTR)
in May. The model rule could then be used by states without further
review by EPA, or the states could develop their own rule.
The OMTR would allow the generation of marketable
emission credits through actions which reduce emissions of groundlevel
ozone precursors (nitrogen oxides and volatile organic compounds).
IDEA Legislative Director Mark Spurr has been working with the
EPA, state regulators and other stakeholders to incorporate rule
language which recognizes the net emission reductions achieved
through district energy.
A number of states have developed their own
rules or are preparing to do so. New Jersey recently proposed
a draft rule for comment. IDEA submitted comments, as did IDEA
members Don Leibowitz (Trigen Energy Corp.), Paul Ostrander (Trenton
State College) and Dennis Ciemniecki (Elizabeth Town Water).
Other states planning to prepare rules include Pennsylvania, Colorado,
Florida, Virginia and Texas.
The New Jersey Treasury Department wants to
overhaul New Jersey's tax system to foster competition between
energy companies and boost energy taxes, an important revenue
source for state and local governments. The proposal is the result
of a task force last year to study the state's energy taxes and
the effects of deregulation.
The plan calls for replacing the gross receipts
and franchise tax with a combination of income and sales taxes.
Gross receipts taxes, collected from electric, gas, telephone,
water and sewer utilities, are the secondlargest revenue
source for municipal governments in New Jersey. Utlities do not
pay gross receipts taxes on wholesale transactions and are exempt
from the state's 9 percent corporate income tax.
Under the proposal, utilities and independent
companies would be taxed equally. Both entities would pay the
corporate income tax and collect the 6 percent state sales tax
from their customers. The state also would tax the fees private
companies pay to use utilities' transmission and distribution
lines. It would phase out that levy after five years.
Both the Senate and House have conducted initial
hearings on electric utility deregulation. Comprehensive deregulation
legislation has been proposed by Sen. Bennett Johnson (DLA)
and Rep. Ed Markey (DMA). Rep. Dan Schaefer (RCO),
chair of the House Subcommittee on Energy and Power, plans to
introduce his own legislation. However, both Schaefer and Sen.
Frank Murkowski (RAK), chair of the Senate Energy and Natural
Resources Committee, have indicated that they intend to take a
deliberative approach, with the purpose of the initial hearings
being to educate committee members and staff.
Federal environmental and energy regulators
are at loggerheads over who should be responsible for curbing
increases in power plant pollution that might stem from new competition
in bulk power markets. The Environmental Protection Agency (EPA)
said the Federal Energy Regulatory Commission (FERC) should make
power producers prevent or offset any harm to air quality that
might result from FERC's proposed new transmission rules.
EPA lambasted the FERC's draft study on the
environmental impact of its proposal to make utilities open their
transmission lines to all competing power producers. EPA's concerns
matched those raised by the governors of Northeastern states.
They fear that use of midwestern coal plants will increase as
a result of competition and will spread air pollution eastward,
defeating Northeastern states' efforts to meet federal clean air
standards.
The University of British Columbia (UBC) wants
to start acting more like a municipality and charge tenants and
other groups on campus the equivalent of property taxes. In addition,
UBC is investigating building a $50million replacement for
its deteriorating steam power plant. The new plant could mean
millions of dollars in energy savings and possible sales of excess
power to B.C. Hydro.
The new fees are part of a longterm plan
to generate more money to maintain and replace the university's
infrastructure. The fees, which the university calls "service
levies," will be phased in gradually starting in 199697
and will not be fully implemented until after the year 2016.
Independent Energy Corporation (IEC) and Duquesne
University announced the establishment of a total energy service
partnership. Under the partnership, IEC will manage all of Duquesne's
energy needs, including electricity, natural gas, steam and chilled
water. The partnership includes the development and management
of a 3.5 MW cogeneration system and a 2,400 ton chilled water
plant. The natural gasfueled cogeneration system is designed
to provide up to 80% of Duquesne's electrical needs and at the
same time use the thermal energy produced by the system for most
of the heating and cooling needs of the campus. Duquesne said
the arrangement will bring $6.9 million in contributions to the
university over four years. The university now spends $2.1 million
a year on natural gas and electricity. |