New Lisbon wins Wisconsin PSC approval to upgrade diesel-fired plant

The Public Service Commission of Wisconsin on Jan. 4 approved a Nov. 6, 2015, application from the city of New Lisbon for authority to upgrade its generator exhaust system at its existing electric generating facility, located in the city of New Lisbon, Juneau County, Wisconsin.

The estimated total cost of the project is $340,000.

New Lisbon is an electric public utility engaged in the generation and distribution of electricity in the state of Wisconsin. New Lisbon is a member of the Upper Midwest Municipal Energy Group, formerly the  Western Wisconsin Municipal Power Group. New Lisbon purchases energy from Dairyland Power Cooperative (DPC).

New Lisbon owns and maintains standby electric generating units. These standby electric units are accredited in the Midcontinent Independent System Operator (MISO) pool through DPC, and New Lisbon receives capacity payments from DPC.

The New Lisbon facility is located along the north side of U.S. Highway 80 in New Lisbon. The 8.3-MW facility consists of four reciprocating internal combustion engine (RICE) generators, ranging in size from 1,360 kW up to  2,412 kW of nameplate capacity. These generating units began operation at various times between 1966 and 2005. All of the RICE generating units are fueled using diesel oil.

New Lisbon’s proposed project is to replace the aging exhaust systems in its existing RICE generators with new upgraded residential grade silencers and related equipment. This equipment would include oxidation catalysts, a crankcase vent system, and a continuous emissions monitoring system. The proposed replacement silencers are combination units, containing a total of six oxidation catalyst elements, which would be accessible from the outside for cleaning and replacement. The catalytic units would reduce carbon monoxide emissions by 70%, and control emissions of total hydrocarbons, particulate matter (PM10, PM25), and  odor causing compounds.

The tentative contractor proposal New Lisbon has selected provides for the equipment to be warranted to meet all existing NESHAP requirements, and be expandable to meet future requirements. It also allows for the equipment to be installed and operational by May 1, 2016, thereby being eligible to be counted by MISO for the upcoming planning year that begins June 1, 2016. The only alternative to the proposed project would be for the utility to abandon the RICE generation plant and purchase replacement capacity from DPC, or an alternate provider, per contract obligations.

New Lisbon conducted a feasibility analysis for adding facilities to comply with NESHAP requirements versus purchasing capacity over a 20-year period. Study results indicate an estimated savings over the 20-year period to be from $3.97 million to about $5.02 million on a nominal basis, or from $1.79 million to about $2.63 million on a net present value basis, by installing the proposed facilities as opposed to purchasing the needed capacity.

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.