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2011 Annual Report

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2011 Annual Report 2011 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: James M. Lavelle To the Honorable Mayor, Members of the City Council, and our Valued Customers: Submitted herewith is the One Hundred and Ninth Annual Report of the City of Holyoke Gas & Electric Department for the year ending December 31, 2011. This year, 78% of the Department's electric supply came from clean renewable sources, and was delivered at rates that were significantly lower than those of utilities in neighboring communities. In an effort to keep rates low, the Department is constantly looking for new, clean and innovative utility solutions. HG&E partnered with Constellation Energy to design and construct two ground mounted solar projects located on Mueller Road and Meadow Street for a total project size of 4.526 MW. This project began commercial operation in the end of December 2011. The Department signed a twenty (20) year Power Purchase Agreement to purchase 100% of the power output. The Mueller Road facility is currently the largest operating solar plant in New England. The powerful combination of low-cost and renewable energy played a critical role in the attraction of a high performance computing center to Holyoke. Slated to open in late 2012, the $168 Million state-of-the-art, supercomputing center is being developed by a consortium of higher education institutions and private industry. The Department continues to upgrade its fleet of hydroelectric generators while balancing purposeful environmental stewardship, including protecting natural, cultural, scenic resources, and providing public recreation facilities. In 2011, HG&E partnered with Holyoke Community College (HCC) for the collection of data on the number of fish and species passed at the Robert E. Barrett Fishway. Activities included: biological sampling, trapping and loading of shad; trapping of Shortnose sturgeon and Atlantic salmon; and, observations of lift operations and eel passage. The Telecom Division continued to grow sales in commercial network services. In response to needs of the business community, HG&E developed a business partnership with OTT Communications of Portland, ME to offer advanced phone services over the reliable, scalable, and local Fiber Network. These new services will be launched in 2012. We thank 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 a dedication to customer service that is second to none. 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 gas New Services Leak Surveys In 2011, the Department installed 122 services lines The Department helps ensure the safety and to new customers - 74 in Holyoke and 48 in reliability of the gas distribution system through an Southampton. The Department also replaced a record extensive series of compulsory and voluntary 171 existing services in Holyoke by burying new comprehensive leak surveys. Each year the plastic pipe or inserting it through older existing steel Department conducts vegetation observation surveys, lines. The Department abandoned 58 service lines in special monthly winter patrols, and flame ionization Holyoke that were no longer needed. patrols (public building, mobile and walking). New and Replacement Mains In 2011, the individual gas service full-length The Gas Division continued replacing cast and walking survey covered more than 3,800 lines, or wrought iron mains throughout Holyoke, with new about one-half of the service pipes in the system. small diameter, plastic pipes. The new plastic mains The combined surveys accounted for the detection of are generally four or six inches in diameter. In total, 120 underground leaks that were mostly minor in 3,900’ of piping was replaced on Bay State Rd, nature. All leaks were investigated and prioritized. A Berkshire St, Day Ave, Faille Ave, Grandview Ave, total of 85 underground leaks were repaired in Grover St, Peltiah St, and South Martin St. 2011, and the remainder were monitored throughout the year or scheduled for repair. The Department installed a new 4” plastic, high- pressure gas main on Bigelow St. to service the new High Performance Computing Center, which is under construction and anticipated for completion in 2012. Sales for Resale The Gas Division continued to expand in Southampton Municipal 4.3% by extending the gas main on Wallace Rd, Elm St, and 3.3% Gunn Rd preparing to connect a potential 15 customers. Industrial 15.8% The Holyoke/Southampton natural gas distribution system now consists of over 174 miles of mains, Residential 7,600 service lines, and 10,500 gas meters. Departmental 38.5% 0.2% Commercial 37.9% 2011 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 1 A N N U A L R E P O R T gas Other Preventative Maintenance - Corrosion Mitigation The Gas Division continued its aggressive program to Gas Works mitigate corrosion on its coated steel piping systems. In 2011, professional inspections were made of all 74 The Department operated its two tar removal systems during the year. The cathodically protected systems, and the 26 coated tailrace system, which intercepts dense, steel services longer than 100’. At year's end 82% of non-aqueous phase liquid (DNAPL) coal the systems exceeded the federal requirements for tar before it can migrate beneath the corrosion control, with the rest requiring some river, collected 1,060 gallons of tar; remedial action in 2011. Additionally, 38 isolated bring the year-to-date total to 7,679 steel gas services (less than 100’ in length) were gallons. The tar is collected and then inspected and maintained, and appropriate repairs are sent offsite for disposal. The second scheduled for 2012, along with more inspections. system is on the site itself, and pumps The cathodic protection system on Fenton St. was DNAPL in a similar fashion to the tailrace replaced in full with a new rectifier and anode ground area recovery system. The onsite DNAPL bed. only collected 16 gallons of tar in 2011 bringing the total to 203 gallons. The Gas Supply and Flow Control steam injection that was previously used The Gas Division continues to operate its Liquefied was discontinued due to the poor Natural Gas (LNG) storage and vaporizing system, recovery rate. Tar recovery will be providing both the extra gas needed during the coldest monitored to determine if steam injection can be permanently discontinued. winter days and also serving as an emergency supply for the entire city in the event of a pipeline As required by permits from two interruption. remediation projects, raceway cap and tailrace bulkhead wall, plantings were The Department also provided peaking service to Bay completed in 2011. These plantings will State Gas as part of a LNG supply and vapor be monitored for survivability. displacement contract. This arrangement has enabled the Department to better utilize its LNG assets, and has provided benefits for both companies. H O L Y O K E G A S & E L E C T R I C — 2 0 1 1 A N N U A L R E P O R T 3 Production - Hydroelectric Facilities In 2011, plans to upgrade Hadley Unit 1 were A number of projects were completed which improved or undertaken in consideration of alternatives to econtributel to futuree generation capacityc and reliability oft increasedr energy productionic in conjunction with the the Department's Hydroelectric facilities. These projects evaluation of the Hadley Station intake fish exclusion included: rack project, which is currently in progress. Alternatives for maximizing the operating efficiency of Harris Projects: As part of the Canal Optimization the existing units include installation of new turbine Plan, the hydro division is working to increase capacity runner, generator rewinds, and upgrading the station while reducing the number of generators. In 2011, the switchgear. Gill D Rehabilitation Project included re-location of controls and the generator from Gill A. Additionally, the Overflow #3 Control Building: In preparation for the Division prepared plans to surrender the FERC License addition of 2 future siphon generating units to add for the Gill Mill A Wheel and Crocker A/B and C units. capacity at this site, a water tight building was Decommission of the projects is pending final approval necessary. The pre-cast concrete building was sized from the State Historic Preservation Office. for the controls and other ancillary equipment to accommodate both additional generation and overflow Grant Award for Boatlock Station Unit 2 Runner: On gates. The Department has received two grants for a June 27, 2011, HG&E received a Notice of Award from total of $210,000 reimbursement towards the siphon the Massachusetts Clean Energy Center, in a grant generators. The purpose of the Overflow Siphon Unit amount not to exceed $300,000, towards the project is to make use of excess water that is spilled replacement of a turbine runner for Boatlock Station over Overflow #3 to feed Chemical Station. Unit 2. Plans are to acquire the runner in 2012. Riverside Station Planning Study: A hydraulic Hadley Station Unit 1: A major Dewatering Inspection analysis was undertaken in 2011 to evaluate the re- of Hadley Unit 1 was conducted in the summer of 2011 energizing of Riverside 6 and determine the scope of and included turbine runner and cavitation repairs.
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