HomeMy WebLinkAbout~Master - Determination of natural gas as primary fuel for Power Plant RESOLUTION NO. 13-494
RESOLUTION DETERMINING NATURAL GAS AS
PRIMARY FUEL OF THE CITY'S POWER PLANT
FOR THE CITY OF AMES,IOWA
WHEREAS, over the past several years, Electric Services staff and contracted consultants
have been carefully studying electric generating and power supply options to meet our community's
future needs; and,
WHEREAS,during this time,the City Council has also been involved in several workshops
and presentations on this key strategic decision; and,
WHEREAS,under consideration are current,pending,and anticipated environmental rules,
as well as increased availability and reduced pricing of natural gas,and another consideration unique
to Ames is our practice of processing garbage and converting it to Refuse Derived Fuel (RDF),
which is then burned with coal to produce electricity; and,
WHEREAS,this unusual combination of coal supplemented by RDF makes the decision on
future electricity production at the Ames Power Plant even more complex; and,
WHEREAS, staff s research has determined the two most viable options are to continue to
burn coal and install emission-reducing technology, or convert the boilers to burn natural gas; and,
WHEREAS,after considering all of the input and information provided to date,the Electric
Services staff recommended to the Electric Utility Operations Review and Advisory Board
(EUORAB) that power plant Unit Nos. 7 and 8 be converted to natural gas; and,
WHEREAS, should the Council concur with the recommendation to convert Units 7 and 8
to natural gas,/RDF operation,staff will begin work on two parallel paths—those being determining
the preferred method for transporting gas,and retrofitting Units 7 and 8 to accommodate the burning
of natural gas; and,
WHEREAS, in addition, Electric Services staff will work closely with the Finance
Department to develop a funding plan for this transition to natural gas and report back to the City
Council on the impact this transition will have on our electric rates.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Ames, Iowa,
that the recommendation to begin the necessary work to convert Power Plant Unit Nos. 7 and 8 to
operate using natural gas as its primary boiler fuel and supplementing it with RDF is hereby
approved,and staff is authorized to reprioritize its Capital Improvements Plan,removing coal-centric
projects and redirecting budgeted engineering dollars towards natural gas conversion.
ADOPTED THIS 12t'day of November, 2013.
CA -L(A /&� tfl. eaosor.�
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Wacha
Voting aye: Davis, Larson, Orazem, Szopinski, Wacha
Voting nay: None Absent: Goodman
Resolution declared adopted and signed by the Mayor this 121h day of November, 2013.