U.Va.'s Heating Plant: How We Heat and Cool the University

Plans for U.Va.'s Heating Plant

Gas Service Availability
The City has indicated in writing that they do not currently have adequate capacity in their existing pipeline to fully support the heat plant and would need to shut off gas service to a 100% gas-fired plant whenever the average daily high/low is below 27°F.

Boiler #1
This coal-fired boiler will be removed. The new boiler will be designed to use gas or coal and will be completely outfitted with pollution-removal equipment.

Boiler #2
This coal/gas-fired boiler will remain. It currently has particulate control, limited NOX control, and no SO2 control. It will be retrofitted with scrubbers to control SO2 and will receive enhanced NOX controls.

Boiler #3
This coal-fired boiler will remain. It will be converted to operate on gas with #2 fuel oil as a backup fuel. The new burners will be low NOX burners.

Boiler #4
This gas/#6 fuel oil fired boiler will remain. It will continue to be able to operate on gas. It will be converted to operate with #2 fuel oil rather than #6 fuel oil. The new burners will be low NOX burners.

Boiler #5
Same as Boiler #2: This coal/gas-fired boiler will remain. It currently has particulate control, limited NOX control, and no SO2 control. It will be retrofitted with scrubbers to control SO2 and will receive enhanced NOX controls.

Summary: When completed, all five boilers at the U.Va. heat plant will be able to fire gas and will be retrofitted with new or enhanced pollution removal equipment.

Schedule
· Between now and the end of March 2003, U.Va. engineering and environmental consultants will be working to ensure that the proposed scope of work can and will work.
· March 2003: U.Va. intends to submit an air permit application to the Department of Environmental Quality.
The following are targets:
· July 2003 - July 2005: 18 to 24 months for design, assuming DEQ approves the air permit application.
· July 2005 - July 2008: 30- to 36-month construction period.

Cost Issues
1. The current estimated cost of the heat plant project is $50 million. How does this get funded?

2. The City of Charlottesville currently provides gas to U.Va. "at cost." The City's "at cost" price includes the gas purchase price plus costs incurred by the City to install new pipe, replace pipe, operate and maintain the gas system, administer the system, service debt, and assess and collect customer invoices.