Lamar, Colo.,
power plant plans switch to coal
Oct 11, 2005 - The Pueblo Chieftain, Colo.
Author(s): Anthony A. Mestas
Oct. 11--LAMAR -- The power plant in Lamar, searching for ways to
hold down customer costs, continues to move ahead with its planned
switch to coal as part of an overall $66 million plant expansion.
Currently fueled by gas and diesel, the Lamar plant, owned by the
Arkansas River Power Authority, feeds electricity to Lamar, Holly,
Springfield, La Junta, Las Animas, Trinidad and Raton, N.M.
The expansion planning remains in the final planning stages with the
next update expected in December, according to Jim Henderson, general
manager of Arkansas River Power Authority.
"It is extremely important for the economic well-being of our member
cities, not only for the immediate future, but for decades to come."
Henderson said of the project.
"It is very important that we are able to acquire affordable and
stable electricity for our members. The proposed plant can accomplish
this."
The project coincides with gas costs in the region doubling in five
years, Henderson said.
The expanded plant -- to about 38.6 megawatts from the current 25
megawatts -- will use primarily coal rather than the current gas and
diesel.
That proposal surfaced after the February 2003 spike in natural gas
prices nationwide.
Later in 2003, the Power Authority and Lamar Utilities Board realized
that the price increase was permanent and that prices could also
continue to climb higher, Henderson said.
"That's what promoted us to look into first converting the plant to a
coal-fired plant and later to repowering the plant with coal as opposed
to natural gas," Henderson said.
"Coal has become a very affordable resource because we probably have
a 250-year supply of coal in this country. There is a greater demand for
natural gas than there is a supply, so to ration the natural gas, prices
have gone up," Henderson said.
The current plant at 100 North Second Street was built in 1972.
The proposed Lamar repowering project is a required part of Power
Authority's long-term plan in order to stabilize wholesale electric
costs to Power Authority's municipal members.
Henderson said that the purpose of the project is to supply the
electricity needs of Power Authority's municipal members including the
towns of Lamar, Holly, Springfield, La Junta, Las Animas, Trinidad and
Raton, N.M.
"This is not a merchant plant for selling power to the highest
bidder. Any lower rates achieved by the construction of this project
will be passed on the Power Authority's members, and hence will be
enjoyed by the residents of the Power Authority member communities,"
Henderson said.
The power generated by the plant will connect to the Tri-State's
transmission system to deliver the power to the other Power Authority
members.
Although the project is a significant undertaking for a small entity
such as Power Authority, it is a small project for the energy industry,
where plants typically are more than 15 times the size of the Lamar
project.
The downside for coal-fired plants is that they are a major source of
carbon dioxide emissions
Henderson said that the proposed new-look plant, which is the largest
project that Power Authority has undertaken, will be equipped with a
high degree of emission control to ensure that the facility does not
violate air quality standards or adversely impact air quality related
values.
Henderson said that a new coal-fired fluidized bed boiler will be
installed at the facility. The boiler will be equipped with a fabric
filter for particulate control. Sulfur dioxide emissions will be
controlled by limestone injection. Nitrogen oxides and carbon monoxide
emissions will be limited by combustion control.
Henderson said that steam from the boiler will be utilized in both
the existing steam turbine and a new condensing steam turbine to produce
approximately 44 gross megawatts of electricity.
Coal for the new boiler will be delivered by a train to the Lamar
rail yard located directly south of the new Lamar Power Plant property.
Upon arrival at the Lamar rail yard, the unit train will be placed on
rail sidings. Rail cars will be moved to and from the sidings to the
unloading facility along a railroad spur using a switching locomotive
owned by Power Authority.
The Power Authority will own and construct the plant, but Lamar Light
and Power will operate it.
Henderson said that the project may cost a little more than $66
million because steel, concrete and diesel fuel prices have gone up
following the Gulf Coast hurricanes.
"It may go a little bit north of that number -- we are to get a more
definitive estimate the week of Dec. 5, but right now the amount of
money set aside for the construction of this plant is $66 million,"
Henderson said.
Henderson said that the proposed expansion and conversion will be
paid for through tax exempt bonds. "We already have the permission from
the cities to issue up to $66 million in tax exempt bonds," Henderson
said.
In 1979 the Power Authority became a political subdivision of the
state which allows the organization to issue tax exempt bonds.
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