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HomeMy WebLinkAbout2.a. Great River Energy Power PlantCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR DISCUSSION COMMITTEE OF THE WHOLE: AUGUST 13, 2003 AGENDA: GREAT RIVER ENERGY POWER PLANT UPDATE AGENDA SECTION: DISCUSSION PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR AGEN P " 2 ATTACHMENTS: MODIFIED PROPOSAL OUTLINE APPROVED BY: — 2��— Great River Energy has informed the City that it intends to modify the proposal to construct a natural gas - burning power plant in Rosemount. Rick Lancaster of Great River Energy has requested an opportunity to meet with the City Council to share the reasoning behind the project modification and its implications. RECOMMENDED ACTION: No action requested. COUNCIL ACTION: +w r• Modified Proposal Original proposal — 600 MW combined -cycle power plant — 2007 commercial operation — operate up to 60% of the time — file for permits 7/03 — $400 million capital cost Modified proposal — 150 MW simple -cycle power plant operational in 2007 — 150 MW simple -cycle power plant operational in 2009 — operate up to 10% of the time — file for permits in 6/04 Confidential — $90 million for first 150 MW project (includes BOP /interconnects to support next 150 MW project) — purchase 175 MW from Minnesota Power GREAT RIVER ENERGY' .� I Modified Plans *11*10" Confidential Minnesota Power made 175 MW unsolicited offer to GRE — competitively priced — base Ioad /intermediate energy supply — from existing plants (coal- fired) GREAT RIVER ENERGY' Decreases exposure to natural gas market by switching from combined -cycle to simple -cycle Easier to finance $91 million (initially) than $400 million 2 Confidential ons -CC to SC 1 /5th the emissions at power plant substantially reduced water consumption 1 no cooling towers smaller plant footprint GRE RIVER ENERGY° 3 AT�dwme fi�vgi ^G�.xi.� yi,.t= Confidential Will seek new personal property tax exemption from Legislature in `04 Begin filing permits in June of `04 if GREAT_RIVER EN ER GY' 4 T•�;�tx