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Summerside taking next step towards replacing power generators
The City of Summerside is moving ahead with a review of its options to replace its most aged power generators. The city has issued a request for proposals (RFP) for an electrical capacity resource plan, which in practical terms, means it’s looking for recommendations as to the best way to replace its three oldest diesel power generators, which date to the 1950s and 1960s. Summerside Electric buys its electricity from New Brunswick Power and supplements it with energy from its own wind power station.
It also buys electrical capacity, which is essentially backup power in case it’s needed, from New Brunswick Power.
The city also has a number of diesel generators that help contribute to that overall capacity.
City staff say replacing the oldest of them would allow more of that capacity to be available locally, instead of having to be bought in New Brunswick.
The city had previously issued an RFP to replace the old generators and Kore Energy, a spinoff of Nautican, had the bid city staff recommended to council for approval. Kore offered to install a 16-megawatt dual-fuel turbo-generator for $19.6 million.
However, the recommendation caused a public debate as to whether residents really wanted to invest in another fossil-fuel-based system. Some argued Summerside has been a leader in green energy and should take this as an opportunity to continue that legacy. There was also concern about this project, one of the most expensive undertaken by the city in years, being made so late in the current council’s mandate as a municipal election is scheduled for this fall.
Given those concerns council voted earlier this year to postpone its decision and go back to a second RFP, “until an independent third party can do an independent analysis on all viable options to satisfy our electrical capacity needs for Summerside Electric Utility.” Key Murray Law is acting as the city’s agent in this case. It will be doing the evaluations of the proposals and making recommendations to council. The RFP request closes May 28.
Greg Gaudet, director of municipal services for the city, said the successful plan will be multifaceted and there will be opportunities for community input.
“The idea is to compare and contrast the cost of different technologies that can satisfy the electric capacity needs (of the city),” said Gaudet.
The plan must also offer projections as to what impact different technologies will have on electrical rates, with no increase being the preferred option, and must include projection as to the cost of the technology into the future.
“Rather than just worrying about today’s costs, what is the cost going to be in three years’ time … 10 years’ time, to kind of give an idea of what the technology might cost if (council) delayed the decision,” added Gaudet.