Primoris wins balance of plant deal for Pasadena repower project

Primoris Services Corp. (NASDAQ Global Select: PRIM) announced June 12 a new award for a California repowering project valued at over $55m.

The new contract was secured by the Industrial division of ARB Inc., a Primoris subsidiary and part of the West Construction Services segment. Work will commence on the project in the third quarter of 2014 and is scheduled to be completed in the second quarter of 2016.

The award is for the Glenarm Repowering Project, which was unanimously approved recently by the Pasadena City Council. The contract consists of design, procurement and construction of a new, more efficient, cleaner generator at the existing power plant. Demolition of the 50-year-old GT-5 steam generator is included in the scope of work.

Said a June 2 city of Pasadena document about this project: “On March 16, 2009, the City Council adopted the energy Integrated Resource Plan (‘IRP’), a 20-year plan for Pasadena Water & Power (‘PWP’) to deliver reliable and environmentally responsible electricity at competitive rates. One of the key recommendations of the energy IRP was the installation of a new combined cycle unit to replace the existing steam Unit B-3 with equivalent capacity of 71 MWs. The energy IRP was updated on March 5, 2012 and it retained the recommendation to replace Unit B-3. The installation of the new combined cycle unit (which is referred to as GT-5) is known as the Glenarm Repowering Project (‘Repowering Project’). GT-5 is expected to be commercially operational by May/June of 2016. The Repowering Project is on schedule and within budget so far.”

The document noted that General Electric will provide fourteen major pieces of equipment, known as the Power Island Equipment (PIE). GE will provide a new gas turbine generator, steam turbine generator, once-through steam generator, condenser, wet-type cooling tower, water storage tanks, electric-powered fuel gas compressors, air compressors, inlet air chilling system, emissions monitoring and control equipment, generator step-up transformer and major pumps. GE has placed orders for the PIE, and the design and manufacturing are currently underway. Delivery of the equipment will start in January 2015 and will continue through June 2015.

The June 2 document recommends ARB Inc. as the winning bidder for the balance of plant (BOP) contract. Combined cycle with once-through steam generator technology for GT-5 makes it the best-available, least-emitting technology in its class to replace B-3 with the equivalent gross capacity of 71 MW, the report said.

Founded in 1946, Primoris, through various subsidiaries, has grown to become one of the largest construction service enterprises in the United States.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.