District Heating and Cooling in the United States Prospects and Issues (1985) / Chapter Skim
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Appendix A: Case Studies
Appendix A: Case Studies
Pages 95-124
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From page 95... ...
Paul Minnesota: A new hot water district heating system was developed by a not-for-profit company incorporated by the city, the state energy agency, and the association representing the building owners and managers. The new system replaces an older, investor-owned utility steam system.
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From page 96... ...
o Jamestown, New York: An existing municipally owned electric utility was retrofitted for cogeneration with a closed-loop, two-pipe, hot water district heating system. O Baltimore, Maryland: A pr ivately owned and operated municipal solid waste incinerator uses recaptured heat for cogeneration of electricity and thermal energy in a district heating and cooling system.
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From page 98... ...
system economically, and to replace outmoded equipment. The conversion cost studies indicated that buildings that supplied hot water to the perimeter heating system, air side systems, or both would be converted the most economically to a med.
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From page 99... ...
SOURCE: District Heating Development Corporation. as evidenced by the range of costs found in the survey, indicate that individual building surveys and cost estimates are necessary to establish the conversion costs for specific buildings or customers.
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From page 100... ...
Financing The preliminary economic feasibility study was completed in November 1980. This study indicated that a hot water system using proven design principles could be built at reasonable cost and financed at the then-current interest rate for tax-exempt revenue bonds of 10 percent given a customer load of 165 MW, or about 60 percent of the potential market in the initial service area.
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From page 101... ...
Conversion / $252 ~ Economics / X $165 \ FIGURE A-2 St. Paul District Heating Development Corporation development funding, 1979-1982, in thousands of dollars (totalling $3.05 million)
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From page 102... ...
Paul Foundation created an Energy Reinvestment Fund in the spring of 1982, funded by S2.6 million in grants and long-term loans from a variety of foundation and corporate donors. Under this program, nonprofit organizations signing hot water contracts could receive funding to ensure that their cash positions were at least as favorable after conversion as if they had not converted.
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From page 103... ...
that the project could significantly contribute to local economic development and, at the same time, could demonstrate nationally the usefulness of district heating and cooling as a catalyst for economic development. In August 1982, when it became clear that lower prices for competitive fuels and reduced hot water demand would require significant improvements in financing, the city developed a flexible repayment plan to make the financing work.
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From page 104... ...
The term of repayment, originally 10 years, was lengthened to 20 years to enhance the competitiveness of hot water rates. The third and final element of the project financing is the $5.5 million "equity loan" provided by St.
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From page 105... ...
~$6.18 Heat Sources $6.64 City Equ ity Loan , $5 5 /City / ,,' of,''' \ Equipment $0.74 >N UDAG Loan $9.8 / HUD FIGURE A-3 St. Paul District Heating Development Corporation system financing, in millions of dollars (totaling $45.8 million)
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From page 106... ...
The system design encompassed three major components: the piping distribution system, internal building heating systems, and a steam-to-hot water conversion plant. The system uses the municipal utility's coal-fired cogeneration power plant as its heat source.
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From page 107... ...
The municipal utility, which operates an existing steam district heating system in the central business district, installed a new hot water service for a new industrial park. The new system now has one customer, a hydroponic greenhouse.
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From page 108... ...
The distribution system consists of three independent pipe loops. Each will deliver hot water at a different temperature to meet the thermal requirements of the customers served.
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From page 109... ...
~ ~: FIGURE A-4 Trenton district energy project (courtesy Cogeneration Development- Company)
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From page 110... ...
Thermal Source The Jamestown Board of Public Utilities will use its Steele Street Station to provide hot water for the system. The power station burns coal to operate two turbine generators.
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From page 111... ...
1985 1805 1890 2000 o cx C&e ~ DH AS BILLED o DH of/ PIN. ~ T" FIGURE A-5 Trenton District Energy Company: impact on government outlays and receipts (in thousands of dollars)
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From page 112... ...
To select the best method for converting this unit to a cogenerating district heating plant, the following criteria were considered: maximum thermal efficiency at lowest capital and operating costs, reliable supply of electricity and heat, operating flexibility to vary electrical and thermal output independently, thermodynamic and mechanical constraints, and space availability and structural design limitations. Steam will be extracted from the blanked-off eleventh stage of the turbine for use in a new condenser for district heating loads up to 7 MW(th)
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From page 113... ...
113 TABLE A-3 Jamestown Power Plant Retrofit Costs Item Costs (1984 Dollars) Heat exchangers Pumps Piping and valves Removal or relocation of · .
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From page 114... ...
The conversion of the terminal heating units to use hot water constitutes a significant part of the conversion work. The total cost of converting the l9 buildings to hot water is estimated at $954,000, including direct costs for all material, equipment, labor, contractor's overhead and profit, engineering fees, and a contingency fund.
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From page 115... ...
For a variety of reasons, including highly seasonal steam sales, reliance on expensive natural gas and fuel oil, and lack of provision for condensate return, BG&E began looking for ways to leave
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From page 116... ...
Both projects included the southwest facility as a thermal source. The Cherry Hill system involved the sale of medium-temperature hot water (250° to 280°F; 120° to 140°C)
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From page 117... ...
At the same time, Baltimore Refuse Energy System Company (RESCO) and the Solid Waste Authority were looking for markets for excess thermal energy produced by the southwest facility, and Baltimore was interested in promoting district heating to encourage development and improve the quality of services to institutional facilities in the city.
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From page 118... ...
Economic analysis has shown that an oil-fired, central hot water heating system can save money compared with individual gas boilers in each building or continuing the existing steam system. In addition, HABC could realize additional savings by contracting with Baltimore RESCO to guarantee the provision of energy to Cherry Hill.
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From page 119... ...
HABC will also benefit from reduced operation and maintenance costs for the new hot water system. Current HUD rules, however, do not allow housing authorities to benefit from switching from high-cost fuel to lower-cost fuel; in this case, from oil to refuse.
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From page 120... ...
As a result they investigated the feasibility of purchasing the steam system and operating it themselves. Based on system evaluations, the building owners' group decided that it could operate the system as a cooperative, using natural gas, more effectively than the existing utility.
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From page 121... ...
FAIRBANKS, ALASKA Fairbanks, Alaska, added a new hot water district heating system in 1982 to its existing and well-maintained steam system, which was built in 1905. The initial 12,000-foot (3,660 m)
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From page 122... ...
They can supply both the hotel's steam and the system's hot water needs while driving the one back-pressure turbine chiller. History The Century City district heating and cooling system is one of seven operating in Southern California.
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From page 123... ...
123 c o me a_ I auvA31noo Ol-~A1~( )
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From page 124... ...
chilled water, system include the Bonaventure Hotel, Bunker Hill Square apartment complex, the 52-story Security Pacific Bank Tower, and the Union Bank Square Development. Like Century City, the Bunker Hill project was carried out with a redevelopment effort that totally cleared the land.
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