Wisbuild.wisconsin.gov



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REQUEST FOR

Owners Representative Engineering Services

West Campus Cogeneration Facility Addition &

Chiller Installations

Project Number 10K1H

December 2010

TABLE OF CONTENTS

Project Background, Purpose And Description Page 3

Project Summary Description Page 8

Project Scope Page 8

Owners Representative Scope of Services Page 8

Owners Representative Project Budget Page 10

Project Budget Page 10

Project Schedule Page 10

Environmental Impact Page 10

Appendix

A – Site Plan Page 11

PROJECT BACKGROUND, PURPOSE AND DESCRIPTION

Background and Purpose:

Three multi-fueled heating and cooling plants serve the University of Wisconsin Madison campus producing steam, chilled water, electricity and compressed air:

• Charter Street Heating and Cooling Plant (CSHP)

• Walnut Street Heating and Cooling Plant (WSHP)

• West Campus Cogeneration Facility (WCCF)

The CSHP Rebuild Project currently in the construction phase will replace the coal fired boilers with new natural gas boilers, install a new biomass boiler and install a new steam turbine electrical generator. The project scope also includes upgrade of the rail delivery system, and installation of biomass fuel handling and biomass fuel storage. Plant boiler capacity will be increased from 800,000 LBS/HR to 1,100,000 LBS/HR. Coal Boilers #1-4 (500,000 LBS/HR) will be retired and gas/oil Boiler #5 (300,000 LBS/HR) will be retained. Two new gas/oil Boilers #6 & # 7 (225,000 LBS/HR each) and one new Biomass Boiler #8 (350,000 LBS/HR) will be installed. Biomass fuel handling and storage equipment will be installed. Balance of plant and ancillary equipment that is necessary to run the plant, condensate collection systems, digital controls, and electrical system upgrades and additions are also included in the project. Plant electrical generation capacity will be increased from 9.8 MW to 29.8 MW by the installation of a new 20MW steam turbine generator, and a new 13.8 kV switching station which will be constructed to distribute power to campus substations. The existing 9.8 MW steam turbine generator will be retained. Compressed air is produced by two 3,200 CFM steam turbine driven air compressors, one 1250 CFM steam turbine driven air compressor, and one 910 CFM electric motor driven air compressor. The CSHP Rebuild Project was a result of the Amended Consent Decree entered in the United States District Court for the Western District of Wisconsin. Coal at the CSHP will be phased out as a fuel source by the year 2012. As an interim measure until the CSHP Rebuild is complete, natural gas will be the sole fuel source.

The CSHP Rebuild Project will address UW-Madison firm steam capacity requirements for campus heating loads through 2022. The CSHP Rebuild Project will not provide any additional chilled water system capacity and the forecasted campus cooling loads will exceed campus chiller capacity in 2013. The existing CSHP chilled water system includes two 4,000 ton and two 8,500 ton steam condensing turbine driven centrifugal chillers and one 1000 ton low pressure steam absorption chiller. The CSHP chillers use HCFC refrigerants with lower ozone depletion and global warming potential than CFC refrigerants.

The WSHP uses natural gas as the primary boiler fuel with fuel oil as a backup source. The plant has the capacity to produce 600,000 #/hr steam, 18,000 tons chilled water and 1000 scfm of compressed air. Plant equipment is comprised of two 150,000 lb/hr and one 300,000 lb/hr gas/oil fired boilers with operating pressure of 175 psig, one 5,500 ton steam turbine driven centrifugal chiller, one 5,500 ton electric motor driven centrifugal chiller, one 3,500 ton steam turbine driven centrifugal chiller, one new 5,500 ton electric centrifugal chiller, and two cooling tower water systems rated at 23,000 gpm and 27,000 gpm.

The 2010 WSHP Chiller Improvements Project implemented system enhancements to improve overall operating economics, reduce energy use, increase chilled water capacity and provide environment benefits at WSHP. Elements of the project included elimination of environmental damaging CFC refrigerants and conversion of CFC-500 chillers to HFC-134a, the addition of 2,000 net tons of additional capacity with new 5500 ton efficient dual compressor electric chiller replacing one of two of the older 1973 less efficient 3500 ton steam turbine driven chillers, the provision of cold weather cooling tower operation capability for new electric chiller to prevent freezing with winter cycling or on-off on-peak electric chiller demand energy controls, the installation of variable volume pumping for new chiller to optimize existing chilled and condenser water pumping systems for energy efficiency, capacity maximization and use of off-peak electric rates with future demand controls, and replacement of the 1990 cooling tower with new field erected cooling tower.

The WCCF began operation in 2005 and is co-owned with the Madison Gas & Electric Company (MGE). WCCF uses natural gas as the primary fuel with oil as a backup fuel source for combustion turbines and the heat recovery steam generator duct burners. The facility is sized to produce 150 MW of electricity for Madison Gas and Electric, and 400,000 pounds of steam per hour and 20,000 tons of chilled water for the UW-Madison campus. The chilled water is produced by four 5,000 ton electric motor driven centrifugal chillers. The WCCF chillers use HFC refrigerants with much lower ozone depletion and global warming potential than CFC refrigerants. Fueled by natural gas and using state-of-the-art pollution control technology, WCCF is one of the cleanest, most efficient plants in the state. Combine cycle cogeneration is substantially more efficient than a conventional steam electric generation power plant. When operated in cogeneration mode, WCCF is nearly 70% efficient in energy use compared to conventional steam electric generation plant efficiencies of 30-35%.

The total cooling production from chillers in the Charter Street Plant, the Walnut Street Plant and the West Campus Cogeneration Facility is approximately 66,000 tons. Before the 2010 WSHP Chiller Improvements Project, the campus chilled water load was projected to exceed installed chiller capacity in July 2011. With the 2,000 additional tons installed under the Chiller Improvements Project, the campus chilled water production equipment will not be able to keep up with campus cooling demand beginning in 2013. This project will provide an approximate 43,500 GSF addition to WCCF and install two 5,000 ton chillers. The 10,000 tons of additional capacity will provide the campus adequate capacity to meet future campus chilled water loads through 2022. The WCCF facility expansion will be designed to provide future capability to add additional chillers for future loads and to replace aged chillers after 30 plus years. Design capacity, refrigerants, age and operating conditions of existing chillers at the three central plants are summarized in the table below:

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The campus projected chilled water cooling loads with planned construction projects and 2010 average daily chilled water profiles are shown in the charts on the following page. As shown of the following page, the 2010 WSHP Chiller Improvements Project implemented system enhancements provided some additional critical chiller capacity ahead of the WCCF Addition and Chiller Installation project earliest added chiller installation in 2013

The existing chiller prime movers are a combination of steam and electric drives. Production economics, reliability, environmental compliance and fuel efficiency are the primary goals of plant operations. Typically, equipment is activated only when loads require additional steam or chilled water capacity while maintaining sufficient on-line operating reserves for reliability. Depending on daily fuel, electric energy and electric demand prices, the WCCF and CSHP steam turbine generator cogeneration steam resources can be a more cost-effective resource for chillers compared to electric motor drives. Since 2008, natural gas is the incremental and marginal fuel for steam. Natural gas will continue to be the incremental and marginal fuel for steam at UW-Madison even after the 2013 proposed 350,000 lb/hr bio-fuel boiler becomes operational.

Since the addition of WCCF, the chilled water production costs have been relatively stable through optimizing economic dispatch of electric and steam chillers utilizing cogeneration steam from CSHP steam turbine generator exhaust or WCCF non-firm heat recovery steam generators. In 2007 and earlier, prior to limited coal use as part of the Consent Decree, approximately 60% of chilled water was produced from CSHP coal-fueled cogenerated steam. In 2008, summer natural gas prices peaked at $14.00/MMBtu causing the switch to minimize steam chillers with over 60% chilled water being produced by electric chillers reducing average summer steam loads by approximately 100,000 lb/hr since the energy cost for operating electric chillers was 50% less expensive than cost of operating steam condensing turbine chillers with natural gas based steam. The summer of 2009 was much cooler and natural gas prices dropped to under $3.00/MMBtu, as a result 40% chilled water was produced by electric driven chillers and 60% by steam driven chillers utilizing CSHP steam turbine cogeneration exhaust steam. In 2010, utility electric rates were restructured that reduced the value of cogeneration electricity with higher natural gas prices substantially increased the cost of steam driven chillers compared to the WCCF electric chillers.

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Steam, chilled water and electric load forecasts are used to develop budgets and dispatch resources to serve loads based on optimizing available resources, reliability requirements, energy efficiency and cost effectiveness. Refer to the 2009 and 2010 budget chiller prime mover screening analyses where steam turbine chiller were based load in 2009, and in 2010 WCCF electric chiller base loaded with restructured MGE SP3 electric rates that reduced the value of cogeneration electricity and higher natural gas prices substantially increased the cost of steam driven chillers compared to the WCCF electric chillers:

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The total energy and fuel costs for chilled water for fiscal year 2010 was $7.6 million dollars, and is forecasted to increase by 10 to 20% per year over next several years as a result of increased load and energy escalation rates as proposed by MGE. To minimize chilled water, the WCCF Expansion Chiller Systems Purchase and Installation Project requires analysis and renegotiations of the WCCF O&M and WCCF Joint Ownership Agreements, along with addressing opportunities for improving reliability, renewable energy resources, electric utility rates, natural gas rates, purchase power contracts, WCCF steam rates, WCCF chilled water rates, stand-by service and cogeneration expansion; some of which are occurring under separate contract.

PROJECT SUMMARY DESCRIPTION

This project will increase the campus overall chilling capacity from 66,000 tons to 76,000 tons with optimal design to improve overall energy efficiency, improve reliability, maximize cogeneration and minimize life cycle costs for the production of chilled water.

PROJECT SCOPE

The WCCF Addition and Chiller Installations Project will construct an approximate 43,500 Gross Square foot (GSF) addition to north-west corner of the West Campus Cogeneration Facility (WCCF) and install two 5,000 ton chillers along with associated equipment and systems including site constructed cooling tower, pumps, piping, controls, drives, ventilation and electrical. The original WCCF design designated a site for future expansion of the plant, provided a plan to install additional chillers, and included provisions for connections to the existing campus chilled water distribution system. Two 54” chilled water lines are planned to be installed to connect the chiller plant addition to the chilled water mains in the Biotron utility corridor. The installation of first two 5,000 ton chillers will increase the WCCF chilling capacity from 20,000 tons to 30,000 tons. The maximum capacity of the WCCF is 50,000 tons. This project will increase the campus overall chilling capacity from 66,000 tons to 76,000 tons.

Air conditioning for critical temperature and humidity control in UW-Madison buildings is essential to protect costly and sensitive research and instructional equipment; maintain healthy conditions for research animal colonies; and maintain and enhance the human working environment. Use of central chilled water is more economical and energy efficient than individual building systems. The campus cooling load has steadily increased over time as new buildings are constructed and older buildings are renovated. The total cooling production from chillers in the Charter Street Plant, the Walnut Street Plant and the West Campus Cogeneration Facility is approximately 66,000 tons. The campus chilled water load was projected to reach this level in July 2013. At that time, the campus chilled water production equipment will not be able to keep up with campus cooling demand.

OWNERS REPRESENTATIVE SCOPE OF SERVICES

The consultant selected shall have experience in providing management support for large campus steam, chilled water and cogeneration utility joint generation plants involving fuel procurement, capital investment and Operation & Maintenance (O&M) through rate recovery and proper allocation of costs, emissions and beneficial output between various co-owners. The Consultant should have specific expertise and experience in the design and dispatch coordination of central utility plant equipment installation including chilled water generation and cogeneration systems. In addition, consultant shall have experience with negotiating and analyzing utility service purchase arrangements, including negotiation of novel utility service arrangements and shall be familiar with applicable Wisconsin utility/regulatory and commercial law. Work includes review compliance of WCCF O&M/Joint Ownership Agreements, site surveys, acquiring field data, optimizing existing systems, identifying concept design alternatives for analysis and services to assure accurate development of design, construction and commissioning documents.

The Owners Representative shall provide the following services:

• Assist in project pre-design, develop concepts of steam versus electric prime movers, quality control, budget review and project planning updates and timeline status, decision support, expediting support, and work closely with the design A/E. The Owners Representative will not direct or control any part of the design engineer’s work products nor take responsibility for the same. In addition to design review, the Owners Representative will facilitate analyses of O&M alternatives and negotiations necessary for implementation of WCCF chiller plant operations.

• Study, and in-depth analysis, of the chilled water expansion opportunities with UW-Madison’s optimization strategy with increased WCCF chilled water production capacity and interface with campus utility systems.

• Analysis of the impact that would result from installing additional steam and/or electric chiller equipment in UW-Madison’s utility system. In particular, the business relationship between UW-Madison and Madison Gas & Electric (MGE) as the provider of campus electricity, natural gas, steam and chilled water assumed to change as significant additional base loaded cogeneration and chillers (steam or electric) are installed in the near future (3 to 5 years). Analyze the MGE and UW-Madison relationship, define, and quantify current and future financial risks and rewards.

• Facilitate negotiations and consulting services for West Campus Cogeneration (WCCF) project optimization.

o Consistent with WCCF Joint Ownership Agreement Section 7.15, facilitate meetings with MGE to discuss design, engineering, construction and implementation of the requested changes, together with the operation thereof following their installation, and cooperate with WCCF co-owners to obtain all requisite approvals from Governmental Authorities.

o If UW-Madison selects MGE for continued O&M of WCCF new and existing chilled water assets, develop amended Schedules S-1 and CW-1 of the WCCF O&M Agreement, as necessary, to reflect the effect of the Facility expansion made in accordance with the Joint Ownership Agreement, and Operator shall be authorized to substituted new versions of such schedules, as necessary, that reflect the effect of such Facility expansion.

o If UW-Madison exercises the option to reopen Operation of Chilled Water Assets and right to assume operation of the Chilled Water Assets within the WCCF, the Parties shall adjust the cost allocations in the applicable Exhibits to this WCCF O&M Agreement to reflect the effect of such change in operation.

o Review and verify existing lake water makeup agreements and lake water withdrawal environment permits sufficient to include WCCF expansion with build-out for additional six chillers and can be transferred if UW operates the chilled water facility.

• Provide steam and chilled water system coordination with existing UW-Madison energy sources for cost effective and environmental optimum operation.

• Develop proposals for improved WCCF Agreements, emission allocations, cost sharing mechanisms and implementation of alternative fuel, steam and electric rates to reduce costs with improved reliability. The cooperative design and development of alternative electric rates, WCCF joint ownership, purchase power contract options, optimize WCCF cogeneration, interface CSHP steam turbine cogeneration and economic WCCF dispatch schedules for the operation of steam and chilled water systems.

• Consultant shall work with design A/E to provide optimization of systems for efficient operation of chillers, cooling towers, variable primary and secondary flow systems over wide range of operating conditions.

Consultants should indicate specific projects from past experience (including size, cost, and completion date) and when known, include proposed consulting partners and specialty consultants.

PROJECT BUDGET:

Preliminary project budget is below:

WCCF Building Construction $15,220,400

Chiller Systems Purchase & Installation $38,470,600

A/E Fee, Commissioning Fee and Owner’s Rep Fee $3,897,000

Project Contingency (14%) $7,517,000

DSF Management (4 %) $2,448,000

Total Project Budget Estimate $67,553,000

PROJECT SCHEDULE

Preliminary project schedule is below:

Program Approval December 2010

Owners Representative Selection February 2011

A/E Selection March 2011

Design Report June 2011

Bid Date March 2012

Substantial Completion – WCCF Addition December 2013

Substantial Completion – Chillers Installation March 2014

ENVIRONMENTAL IMPACT

It is anticipated based on a finding of non-significant impact (FONSI) of the Type I EIS prepared for the original WCCF construction that this project will not result in any significant environmental impact. Accordingly, the campus will complete a Type II Evaluation of Environmental Significance and a legal notice on the FONSI. The campus will establish a public comment period to fulfill the intent of the Wisconsin Environmental Policy Act (WEPA). The consultant must provide project information to campus staff, but otherwise will have no responsibilities in meeting WEPA requirements.

Review and verify existing lake water makeup agreements and lake water withdrawal environmental permits sufficient to include WCCF expansion with build-out for additional six chillers and can be transferred if UW operates the chilled water facility.

AGENCY CONTACT

Dan Dudley, ddudley@fpm.wisc.edu, 608.263.2359

Appendix A

SITE PLAN

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