05-03-2013 BPU RPT 03 - Laserfiche WebLink

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W A T E R E N RIVERSIDE PUBLIC UTILITIES - Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: May 3, 2013 ITEM NO: 3 SUBJECT: BALANCE OF PLANT CONTROLS SYSTEM UPGRADE AT THE CLEARWATER COGENERATION POWER PLANT ISSUE: The item for Board of Public Utilities consideration is approval of the control system proposal from ABB Inc. in the amount of $166:790 to upgrade the Balance of Plant (BOP) Control System at the Clearwater Cogeneration Power Plant. RECOMMENDATION: That the Board of Public Utilities approve the issuance of a Purchase Order to ABB Inc., of Wickliffe, Ohio, in the amount of $166,790 for the Balance of Plant Control System upgrade at Clearwater Cogeneration Power Plant. BACKGROUND: In September 2010, Riverside Public Utilities (RPU) finalized the purchase of the Clearwater Cogeneration Power Plant located in Corona. As an element of the City's due diligence prior to closing the transaction, an assessment was conducted on the BOP Control System. The existing BOP Control System, a proprietary product of ABB Inc., is integral to the operation of major plant sub-systems and has been in place since the plant was commissioned in 2005. Critical functions within the plant, such as communications with the California Independent System Operator (CAISO) and the South Coast Air Quality Management District (SCAQMD) required emissions monitoring equipment and controls for all aspects of the Steam Turbine Generator are in continual operation and contingent on a stable and fully supported BOP Control System. The results of the BOP Control System assessment confirmed that the control system was operating properly, but identified numerous components located throughout the plant that were quickly reaching technological obsolescence and were no longer supported by the Original Equipment Manufacturer. Knowing that RPU could safely dispatch and operate the plant, staff decided to obtain more operating experience prior to assessing the most feasible and cost effective option for the Control System change- out. Recent equipment repairs have heightened RPU's need to replace the BOP Control System. In the last year, the frequency of repairs has increased and failed parts are becoming more difficult to locate and install. Staff investigated several BOP Control System alternatives. Informal budgetary bids, ranging from $750,000 to $1,000,000, were obtained to totally replace the existing BOP equipment and related software. As an alternative, since the existing system was operationally efficient, staff contacted ABB Inc. to identify upgrade options that best fit the operational profiles of the Clearwater facility. After significant scope refinement and price negotiations, an acceptable upgrade solution with ABB Inc. was identified as the most feasible and cost effective option.