12-12-2022 BPU RPT 08 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: DECEMBER 12, 2022 SUBJECT: INCREASE IN THE ANNUAL EXPENDITURE LIMIT BY $80,000 TO A TOTAL OF $165,000 WITH NALCO COMPANY, LLC OF NAPERVILLE, ILLINOIS FOR CHEMICALS USED AT THE RIVERSIDE ENERGY RESOURCE CENTER AND CLEARWATER POWER PLANTS ISSUE: Consider approving an increase in the annual expenditure limit by $80,000 to a total of $165,000 with Nalco Company, LLC of Naperville, Illinois, for chemicals used at the Riverside Energy Resource Center and Clearwater Power Plants. RECOMMENDATION: That the Board of Public Utilities approve an increase in the annual expenditure limit by $80,000, for a revised total of $165,000, with Nalco Company, LLC of Naperville, Illinois, for chemicals used at the Riverside Energy Resource Center and Clearwater Power Plants. BACKGROUND: The City of Riverside owns and operates the Riverside Energy Resource Center (RERC) and Clearwater (Clearwater) Power Plants. This past summer, these facilities experienced a significant increase in operations and performed a critical role during an unprecedented heatwave. Customarily, the two power generation locations reach the highest operating levels during the summer peak and this operations were up to three times higher compared to previous years. During the normal process of generating electricity, both RERC and Clearwater utilize specialized chemicals to prevent bacterial growth and corrosion damage to the expensive power plant components. The amount of the chemicals used varies with each plantoperating requirements, but it is important to note that the amount varies commensurate with the operating times of the plants. With the increase in operations this past summer, chemical usage also increased. As a result of the operations this summer, both facilities have already exceeded the amount of the specialized chemicals that had been forecast for the entire year. The chemicals are essential to plant operations and having a reliable supply of chemicals each year is vital to to provide reliable electricity to its customers. Therefore, it is essential to ensure they are available for the remainder of the year.