Vectren seeks to enhance electric generation efficiency;
project allows Vectren to burn less coal, lower bills and emissions
• On Sept. 13, Vectren filed a request with the Indiana Utility Regulatory Commission (IURC) to install dense pack technology on two coal-fired electric generation units at its A.B. Brown power plant in Posey County, Ind. Dense pack technology is an energy efficiency upgrade to the turbine, which allows Vectren to burn less coal while generating the same amount of energy.
• The project will cost around $32 million. The cost to the customer, however, will be offset through a reduction in coal burned; i.e. lower fuel costs.
o Note: Customers pay for fuel costs, which is the coal burned to produce electricity. This charge is passed on to customers on a dollar-for-dollar basis.
• The project will be phased in and over time will result in burning 5 to 8% less coal than today.
• Over its useful life, which is expected to be four decades, the project will pay for itself and actually produce a bill reduction (or credit) for customers. The total bill reduction for a residential customer over the life cycle of the project is expected to be at least $30 and as much as $130, depending upon coal costs and the realized efficiency rating of the dense packs.
o Note: The positive bill impacts above do not take into consideration other savings that should result from this efficiency project, including savings associated with reduced environmental compliance costs and reduced turbine maintenance costs; i.e. more efficiency translates into fewer emissions since less coal is needed and less wear and tear on the plant.
• The dense pack technology will enhance Vectren’s ability to meet current and future Environmental Protection Agency rules given burning less coal equates to less emissions. Furthermore, the project will help conserve natural resources.
• This technology has already been successfully implemented on Warrick Unit 4, which is a 300-megawatt unit located in Warrick County and jointly owned with Alcoa.
• The request is subject to approval by the IURC.
“dense pack” would describe the management team !
Dense Pack = Shoot Pack The management at Vectren is not dense, they have mastered legal extortion. It is the elected and appointed government officials that are stupid.
Amen BG
So if I get the maximum reduction of $130.00 over the forty year “useful lifespan” of the equipment it will give me a whopping $3.25 annual savings. But wait a minute: didn’t Vectren say they wanted to raise my bill by $1.00 per month? My quick math tells me that $12.00 annual increase and $3.25 annual savings is leaving me $8.75 in the hole every year.
I’m thinking, and my head hurts.
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The white paper on Dense Pack Technology – http://plainsjustice.org/files/ElkRun/DNR_App_20080603/Elk%20Run%20References/Combustion%20Modification-An%20Economic%20Alternative%20for%20Boiler%20NOx%20Controls.pdf
My question is more about the maintenance savings. This white paper in a nutshell indicates that this upgrade will improve the life of the turbine and reduce downtime. Vectren could potentially save millions a year in maintenance costs. Do you know how much a turbine rebuild costs?
I think people are looking at the wrong pot of gold in the big picture here. Do you think the customers of Vectren will ever see those dollars?
Technogeek,
You are right! Nothing is as simple or as straight-foward as Vectren is presenting it. Reduced maintenance costs? The ratepayers will never see a reduction due to that. Reduced environmental compliance costs? Any compliance costs will be pasted right on to us.
Another huge elephant in the room that is being ignored is that we just had a substantial increase a few months ago. What was that for? Who can explain that one? I seem to remember that Vectren asked for X amount and received 1/2 of X. Is Vectren now finding some other ways to gain the other 1/2 of X ?
Lastly, I don’t know if this group of IURC members is the same bunch who okayed the last increased or not. That might be nice to know.
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