cherry point cogeneration project overview presented to nwppc cogeneration round table june 24, 2003
TRANSCRIPT
Cherry Point Cogeneration Project
OverviewPresented to NWPPC
Cogeneration Round Table
June 24, 2003
TransCanada Corporation
•Competitively positioned in natural gas transmission & power generation services
•$20 billion in Assets ($C at Dec 31, 2001)
•A- Credit Rating (S&P)
•TRP trades on the TSE and NYSE
•Headquartered in Calgary, Alberta, Canada
A leading North American energy company
TransCanada Corporation
In North America, TransCanada ships the largest volumes the longest distance in the coldest weather
Relative Sizes of Major North American Pipeline Companies
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
TransCanada El Paso Williams Duke Energy Kinder Morgan Enron PG&E MidAmerican
Capacity - Miles (Bcf/d-Miles)
TransCanada Williams Kinder Morgan PG&E El Paso Duke Energy Enron MidAmerican
TransCanada’s Power Portfolio
• 19 Plants, 3 PPAs• 4,150 MW operational• 1,770 MW in
development* Long Term PPA’s
Bear Creek 80MW
MacKay River 165MW
Williams Lake 66MW
Sundance A&B* 913MW
Redwater 40MW
Carseland 80MW
Cancarb 27MW
Nipigon 40MW
Calstock 35MW
Kapuskasing 40MW
Tunis 43MW
Sheerness* 100MW
North Bay 40MW
Curtis Palmer 60MW
Castleton 64MW
Ocean State 560MW
Bruce Power LP 1500MW
ManChief 300MW
Cherry Point 720MW
Becancour 550MW
Portlands 500MW
- Active Plant
- In Development- Market Area
TransCanada’s Business Drivers
Advantaged Assets relative to CC• Similar Economy of Scale• Similar Dispatch Flexibility• Lower Variable Costs
Responsive to Market• Right Timing• Right Size• Right Location
Stable, Low Risk Growth• Long Term contracts with credit-worthy
counter parties• No surprises
Cherry Point Project Overview
SeattleCherry Point
Vancouver
BP Cherry Point Refinery
ProposedCogenerationPlant
720 MW Combined Cycle Cogeneration Plant
• 3 F-Class gas turbines • 1 Steam Turbine• Fully Dispatchable (Back-up Boilers)
Host Site: BP Cherry Point Refinery
• 225,000 bbl/d state-of-art refinery; Solomon top quartile performer
• BP North America: AA credit
Project Structure• Long term steam and power to BP
Refinery• 450 MW of power to 3-P contracts• Balance of output to TC trading
operations
Cherry Point Project Overview (cont.)
• Exclusivity: Q4, 2002
• EPC Contractor Selected: Q4, 2002
• Site Release: Q4, 2003• Third party power purchase
agreements (PPA’s)• EFSEC Permit• Firm Transmission Agreements
• Commercial In-Service: Q2, 2006
Project Schedule:
WashingtonState
BritishColumbia
SumasHub
Cherry Point
Seattle
Vancouver
Paul -Troutdale
To Calif Mkt > Oregon
Cherry Point Detail
Cherry PointGas, Transmission
100 Miles
< 230kV
Alcoa IntalcoSubstation
< 500kV
< From Sumas
5 Miles
Legend
500kV Transmission
Northwest Pipeline
GSX (Proposed)
BP, Cascade Pipelines(See detail)
Centra Pipeline
Westcoast Pipeline
BP Pipeline
Cascade Pipeline
GSX Pipeline Route
BPA Custer Substation
ProposedCogen Site
Monroe
John Day
200MW
Monroe -Echo Lake
NW hub
400MW
ToMid-C >
Pt White-horn
Cherry PointRefinery
Cherry Point Advantages
Existing Infrastructure
Cherry Point Advantages
Minimize Environmental Impact
• Reduce air emissions from Cherry Point complex
• Reduce water withdrawal from Nooksack River
• No new pipelines or transmission lines required
• Build on existing industrial site
Cherry Point Project Renderinglooking SE from Grandview Road
Cherry Point Advantages
Competitive Price
• Heat rate advantage ~ 0.7 MMBtu/MWh better than CC Savings of $2.80/MWh1
• Ferndale pipeline tolls ~ 50% lower than Northwest Pipe Savings of $1.40/MWh
• Project can be dispatched off-line to take advantage of low hydro prices
• Building in “down market”; equipment and EPC costs at lowest point in years.
1 Based on $4.00 /MMBtu gas price
PURPA - Qualifying Facility Status
Cherry Point
Cogeneration Project
Fuel Input
5440 MMBtu/hr
Useful Thermal Output
700 MMBtu/hr
Useful Power Output
720 MWh
or
2450 MMBtu/hr
Useful Thermal Energy
Purpa Efficiency
Cherry Point
13%
51%
Purpa Threshol
d
>5%
= >45%
Meets Threshol
d
Cherry Point is an Advantaged Generation Asset
Cherry PointLayout, looking NE
• Heat rate advantages vs. stand-alone CC
• Dispatchable plant• Economy of scale• Gas supply infrastructure
advantages• Strong, committed
project proponents• Cogen emissions offset
by refinery reductions• Water cooled/water reuse
plan
“The economy of scale and flexibility of a large combined cycle plant with a cogeneration heat rate”
The Home Stretch - Ensuring Success!
Remaining basic success factors reside with BPA:
• Transmission
• Market Clarity
• BPA’s role as resource provider post-2006
• Price of BPA hydro power post- 2006
Innovative solutions also reside with BPA:
• Return of Canadian Entitlement
• Integration and dispatch of Cherry Point for BPA preference customers
Cherry Point Cogeneration Project
Overview
For more information contact:Craig Martin
Manager, Power Marketing & Development
tel: 403.920.2086
email: [email protected]