The Anclote plant oil-to-gas conversion at Unit 1 was completed on July 13, and Unit 2 should be fully converted to natural gas by mid-December 2013, said an official of Duke Energy Florida in Aug. 1 testimony filed at the Florida Public Service Commission.
Mark Hellstern, employed by this Duke Energy (NYSE: DUK) subsidiary as the Project Director for the Anclote Gas Conversion Project, updated the commission on the project within an annual environmental cost review docket.
Hellstern, a former nuclear official at the Tennessee Valley Authority, transitioned into the role as Project Manager for the Anclote Gas Conversion Project in late June, replacing George Hixon.
Duke currently expects to incur approximately $64.7m of costs for the Anclote project in 2013. Such costs include contractor mobilization, some permitting activities and boiler controls engineering. That is $16.8m more for 2013 than originally projected. This variance is primarily attributable to scope changes in the boiler and electrical commodities for Unit 1 and balance of plant (BOP) due to unexpected “as found” conditions which required engineering and field modifications to complete the additional scope of work for Unit 1 and BOP. Additionally, as engineering matured for the Fan Modification Scope, procurement costs and estimated installation costs increased.
The Florida commission in August 2012 approved the conversion of Anclote to 100% natural gas. Anclote Units 1-2 had a maximum summer rating of 500 MW and 510 MW, respectively. The natural gas firing capability for each unit was limited to 40% of the total heat input. Because the balance of the heat input is from heavy fuel oil, the units would be subject to Mercury and Air Toxics Standards (MATS) limits for oil-fired electric generating units. However, DEF determined that the most cost-effective compliance option is to convert the units to fire 100% natural gas and thereby remove the units from MATS regulation.