Duke Energy Florida said the Hines Chillers Uprate Project, which will add new hot weather generating capacity at its gas-fired Hines power plant, is being completed in two phases, with Phase 1 to enter commercial operation in October of this year.
Duke Energy Florida (DEF) on May 20 petitioned the Florida Public Service Commission for a limited proceeding for approval to include in base rates the revenue requirement for the Hines Chillers Uprate Project.
The first phase, consisting of work on Hines Units 1-3 and the common equipment, will be completed and placed into commercial service in October 2016. The second phase, the work for Hines Unit 4, will be completed in January 2017. DEF said it planned the two phases to align with already-scheduled maintenance outages for the Hines units.
The construction cost estimate for both phases of the Hines Chillers Uprate Project is approximately $151 million, which is less than the $160 million estimate DEF provided during the need determination proceeding at the commission. DEF estimates the retail revenue requirements for phase 1 of the Hines Chillers Uprate Project to be $16,676,114 and those for the second phase to be $2,915,328.
With this May 20 petition, DEF requestd that the commission approve the revenue requirements for the whole project, but it is only requesting approval for the rate increase associated with the phase 1 revenue requirements.
By separate petition, DEF will request the commission to approve revenue requirements associated with the company’s purchase of the Osprey gas-fired power plant from Calpine (NYSE: CPN) and the rate increase for both phase 2 of the Hines Chiller Uprate Project and the Osprey unit. That rate increase will be requested for February 2017.
The Hines Chillers project won’t actually increase the overall generating capacity of the plant, but will allow the plant to operate at full capacity during the summer heat. The project is to install air chillers at the compressor inlet of each of the combustion turbines (CTs). The equipment involved is:
- Installation of Water Chilling System: Duke Energy Florida is installing a water chilling, storage and supply system comprised of: mechanical water chillers, a 13 million gallon thermal storage tank, pumps, heat exchangers and one or more cooling towers with a total evaporative capacity of approximately 1 million gallons per day.
- Installation of Combustion Turbine Inlet Air Chilling Systems: The utility is installing water-cooled compressor inlet air chillers on all eight CTs. When actuated, chilled water will be circulated through heat exchangers (air cooling coils mounted on each CT air compressor inlet filter) in order to chill the compressor inlet air to approximately 50° F.