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2010 Annual Report

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2010 Annual Report 2010 ANNUAL REPORT C I T Y O F H O L Y O K E G A S & E L E C T R I C D E P A R T M E N T Commissioners: Francis J. Hoey, III Robert H. Griffin Raymond H. Feyre Manager: gas | electric | steam | telecom James M. Lavelle To the Honorable Mayor, Members of the City Council, and our Valued Customers: Submitted herewith is the One Hundred and Eighth Annual Report of the City of Holyoke Gas & Electric Department for the year ending December 31, 2010. Holyoke Gas & Electric produced favorable operating results in 2010, in spite of a continued weak economy and increasing regulatory mandates. This year, 68% of the Department's electric supply came from clean renewable sources, and was delivered at rates that were significantly lower than those from utilities in neighboring communities. This powerful combination of low-cost renewable power played a critical role in the attraction of a high performance computing center project to the City. This $168 million project is being developed by a consortium of higher education institutions and private industries, and will harness the City's low cost green energy to run powerful super computing systems. The Department continues to upgrade its fleet of hydroelectric generators and is exploring other clean energy solutions to produce additional low cost energy. In September 2010, HG&E experienced a significant reduction in sales, resulting from the loss of several large steam customers, and steam distribution operations were shut down. HG&E assisted remaining steam customers with the conversion to on-site gas-fired solutions to replace the district steam. In 2010, the electric division continued to modernize the Department's distribution system for increased reliability of electric services to the City of Holyoke, which included the upgrade of six sections of primary cable. Additionally, many new services were installed for new homes and businesses. We thank the City officials and Department employees for their continued faithful service to HG&E, and we will continue to work diligently to provide our customers with reliable utility services at competitive rates, backed by an unprecedented dedication to customer service. Respectfully, Francis J. Hoey III, Commission Chairman Robert H. Griffin, Commission Treasurer Raymond H. Feyre, Commission Secretary James M. Lavelle, Manager City of Holyoke Gas & Electric Department Tel: 413.536.9300 • Fax: 413.536.9315 H O L Y O K E G A S & E L E C T R I C D E P A R T M E N T 1 gNew Services as Other Preventative Maintenance - In 2010, the Department installed 88 services lines to Corrosion Mitigation new customers - 48 in Holyoke and 40 in The Gas Division continued its aggressive program to Southampton. The Department also replaced a record mitigate corrosion on its coated steel piping systems. 103 existing services in Holyoke by burying new In 2010, professional inspections were made of all plastic pipe or inserting it through older existing steel 64 of the cathodically protected systems, and the 26 lines. The Department abandoned 51 service lines in coated steel services longer than 100 feet. At year's Holyoke that were no longer needed. end 78% of the systems exceeded the federal requirements for corrosion control, with the rest New and Replacement Mains requiring some remedial action in 2010. Additionally, In Holyoke, gas main construction continues for 47 isolated steel gas services (less than 100 feet in replacing cast iron. In the Elmwood neighborhood the length) were inspected and maintained, and Department continued its reconstruction efforts and appropriate repairs are scheduled for 2010, along replaced a total of 2,300 feet of small diameter, with more inspections. wrought iron pipes with new plastic ones on Claremont, Woods, Florence, Edwin, and Sydney Gas Supply and Flow Control Avenues. Numerous smaller projects were completed The Gas Division continues to operate its Liquefied in the replacement of nearly 4,100 feet of cast iron Natural Gas storage and vaporizing system, providing and wrought iron pipe. The new plastic mains are the extra gas needed during the coldest winter days generally four or six inches in diameter. and as an emergency supply for the entire city if needed. The Gas Division continued to expand in Southampton by extending the gas main on Pomeroy Meadow Rd The Department also provided peaking service to Bay and installing a new gas main on Meadow Ln State Gas as part of a LNG supply and vapor preparing to potentially connect 18 customers. displacement contract. This arrangement has enabled the Department to better utilize its LNG The Holyoke/Southampton natural gas distribution assets, and has provided benefits for both system now consists of over 173 miles of mains companies. It is expected to be continued in 2011- 7,500 service lines and 12,000 gas meters. 2012. Leak Surveys The Department helps ensure the safety and reliability Commercial of the gas distribution system through an extensive 36.6% series of compulsory and voluntary comprehensive leak surveys. Each year the Department conducts Industrial public building, mobile and walking flame ionization 11.2% patrols, special monthly winter patrols, and vegetation observation surveys. The full-length walking survey Municipal over each individual gas service covered more than 2.9% 3,750 lines in 2010, or about one-half of the service Department Sales pipes in the system. The combined surveys accounted Residential 7.1% for the detection of 70 mostly minor underground 39.8% leaks. All leaks were investigated and prioritized. A Sales for Resale total of 65 underground leaks were repaired in 2009, 2.4% and the remainder were monitored throughout the year or scheduled for repair. 2010 Gas Division Revenues (by Customer Class) 2 H O L Y O K E G A S & E L E C T R I C — 2 0 1 0 A N N U A L R E P O R T gas & steam Gas Works Production - Steam Facilities The Department operated its two tar removal In 2010, the electric station had a maximum steam systems during the year. The tailrace system, production load, during electrical generation, of which intercepts dense, non-aqueous phase liquid 2600,000 lbs/hr. The maximum steam production (DNAPL) coal tar before it can migrate beneath load for steam sales was non generation hourly load the river, collected 1,147 gallons of tar; bring the was 105,000 lbs/hr. year-to-date total to 6,619 gallons. The tar is collected and then sent offsite for disposal. The In 2010, The electric station produced second system is on the site itself, and pumps 158,592,000 lbs of steam. DNAPL in a similar fashion to the tailrace area recovery system. The onsite DNAPL only collected 32 gallons of tar in 2010 bringing the Operations - Steam Facilities total to 187 gallons. The tar is less mobile then As previously planned, the Steam Distribution anticipated, even with steam injection, and may operations were shut down in 2010 due to not need to be recovered. decreased sales. The distribution system ceased As part of Phase IV Redemption Plan for Old Gas operations in early September but the boilers Works, which was found to be contaminated with remained in standby for Sonoco Paper products as coal tar, a cap was installed over a raceway they commissioned their new boilers through the end adjacent to the Old Gas Works. Eliminating of the month. The department assisted the potentially significant risk to human and remaining steam customers to convert their steam ecological receptors, installation included a sand heating and processes needs to locally installed cap and a protective layer of rip rap, along with natural gas fired systems. The number of employees structures that will allow for future testing of cap at the station was reduced between an early integrity. The cap was completed in 2010, with retirement incentive, transfers and a single layoff. the exception of planting restoration, which will HG&E retains the ability to produce steam for electric be completed in 2011. generation at Cabot Street Station. Employees that have been transferred remain available to man the A bulkhead wall was installed adjacent to the Old boilers and turbines if the need for electric generation Gas Works along the tailrace bank to stop arises. migration of coal tar into the tailrace. During operations at Old Gas Works, coal tar was released into the environment causing an underground plume of tar that migrated towards the tailrace. At the bank of the tailrace, sheen has appeared on the surface water. The wall was installed to prevent the occurrence of the sheen and enhance subsurface tar recovery in the area. The wall consists of sheet piling that was installed from a depth of 2 feet below grade to bedrock preventing the sheen from appearing. The length of the wall is approximately 170 feet. In addition to the installation of the wall, contaminated soil between the bulkhead wall and the bank of the tailrace was excavated and removed offsite. All work, including the cap, was completed in 2010, with the exception of planting restoration, which will be completed in 2011. H O L Y O K E G A S & E L E C T R I C — 2 0 1 0 A N N U A L R E P O R T 3 Boatlock Station: As part of the Canal electOptimizationr Plani, the hydroc division is working 2010 Fish Passage Counts towards a reduction in generators in conjunction The fishlift at HG&E’s Robert E. Barrett Fishway helps with increased capacity. A 2010 effort towards this migrating fish over the Holyoke Hydroelectric Dam.
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