October 21 2010October 21, 2010

NCCI ConferenceDesign and

Operational Aspects of the Virginia Cityof the Virginia City

Hybrid Energy Center

David LeafManager Projects

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July 2010 Aerial PhotoJuly 2010 Aerial Photo

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VCHEC Presentation OutlineVCHEC Presentation Outline• Safetyy• Project Background • Economic Impacts• Economic Impacts• Project Schedule• Environmental Aspects• Design and Operationg p• Construction Status

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VCHEC SafetyVCHEC Safety

• Project has worked over 6 millionProject has worked over 6 million manhours without a lost time accident

• Project to Date OSHA recordable rate of• Project to Date - OSHA recordable rate of 1.23 injuries per 200,000 hours workedY t D t OSHA d bl t f• Year to Date – OSHA recordable rate of 0.78 injuries per 200,000 hours worked

• CHSWMF has worked over one year without a recordable.

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Virginia City Hybrid Energy Center-Part of Dominions Generation Expansion StrategyVirginia City Hybrid Energy Center-Part of Dominions Generation Expansion Strategy

“We’ve achieved a mercury permit that, to our knowledge, is the most

p gyp gy

stringent mercury permit for a coal-fired power plant in the nation.”- Cale Jaffe, Southern Environmental Law Center (Tricities News, September 3, 2009)

2130 k it th• 2130 workers on site – more than30% from Southwest Virginia

• Air permit upheld by Richmond• Air permit upheld by Richmond Circuit Court

• Project more than 71 percentProject more than 71 percentcomplete. Construction is 60% complete

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SB 651 (2004)HB 3068/SB 1416 (2007)HB 3068/SB 1416 (2007)

•Virginia’s legislative incentive for development of major•Virginia s legislative incentive for development of major coal-fired power stations in southwest Virginia responded to a growing need for energy.

•To ensure electric energy reliability and promote economic development, an investor-owned utility may petition the SCC for approval.pp

• Power station located in the coalfield region of Virginia that burns Virginia coal is in the public interest.

• Allows recovery of construction and associated infrastructure costs – enhanced rate of return.

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• Recovery through rates reduces investor risk.

VCHEC Economic Benefits

• 1800 new jobs during construction

• Adds upwards of $6 million in tax revenue each year

• Permanent employment of at least 75 plant operators - Annual payroll of over $4 million

• Creating an additional 350 local mining jobs

• Independent study by Virginia Tech found that the project would have an i i t f th $439 illi lleconomic impact of more than $439 million annually.

• Most significant economic benefits will be after the plant begins operation.

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• More than doubles the economic output of Wise County.

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Southwest Virginia Power StationCFB Clean Coal TechnologyCFB – Clean Coal Technology

Limestone injection, FGD, SNCR, Carbon Injection and fabric filters capture:- Sulfur dioxide- Nitrogen oxides

P ti l t tt- Particulate matter- Mercury

Coal

SteamTurbineGenerator

Chimney

SelectiveNon-Catalytic

Nitrogen Oxide

CirculatingFluidized

BedFurnace

HeatExchanger

Fabric FilterParticulate Control

Limestone

Nitrogen Oxide Reduction System

(SNCR)

Air Pre-Heater Fan

(CFB)

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Air AshRemoval

Dry Flue GasDesulfurization

SystemAshRemoval

VCHEC Environmental Control Equipment

Air Emissions Control Equipment:Air Emissions Control Equipment:•CFB Boiler reduces SOX, and NOX•Selective Noncatalytic NOX Reduction System (SNCR)•Dry Scrubber for SOX reduction•Activated Carbon Injection for Mercury Control•Baghouse for Particulate Matter Control•Misc. Baghouses on material handling systems•Dust suppression system on coal pileDust suppression system on coal pile•Water wash systems for vehicles•Barrier Fencing screening

Water discharge Control Equipment:•Air cooled condensers significantly reduce water usage•Extensive water recycle within plant water system•Wastewater Clarifier to treat water for recycle or discharge

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Wastewater Clarifier to treat water for recycle or discharge•Sedimentation Ponds for stormwater runoff•Coal and limestone pile runoff pond pH treatment system

VCHEC Emissions Compared to Oth F ilitiOther Facilities

SO2 NOx PM Hg

Permit Ratio'd to VCHEC Ratio'd to VCHEC Ratio'd to VCHEC Ratio'd to VCHECPermit Ratio d to VCHEC Ratio d to VCHEC Ratio d to VCHEC Ratio d to VCHEC

Combustion Technology MW Date MW Basis (tpy) MW Basis (tpy) MW Basis (tpy) MW Basis (tpy)

1960's PC Unit 585 56,174 29,023 133,880 498

1970's PC Unit 585 56,174 18,256 1,339 95

1980's CFB Unit 585 13,452 10,762 451 74

1990's CFB Unit 585 6,726 5,381 361 49

JEA1 595 14-Jul-99 3,694 2,216 271 466

Seward2 520 23-Apr-01 16,635 4,487 318 NA

Sandow (Unit 5)3 600 25-Sep-03 3,990 2,658 398 181

AES Puerto Rico4 454 10-Aug-04 352 1,597 245 NA

Cleco5 600 23-Feb-06 3,841 1,792 335 NA

Spurlock (Units 3 and 4)6 540 31-Jul-06 4,059 1,840 254 96

Cliffside (Unit 6)7 800 29-Jan-08 6,709 4,792 846 176Cliffside (Unit 6) 800 29 Jan 08 6,709 4,792 846 176

VCHEC 585 30-Jun-08 604 1,920 329 5

NOTE 1 - JEA Northside has two coal/pet coke CFB's. Facility operates on 80% pet coke / 20% coal.NOTE 2 - Reliant Seward has two waste coal CFB's.NOTE 3 - Luminant Sandow 5 consists of two lignite-fired CFB's.NOTE 4 - AES Puerto Rico facility has two CFBs that operate on South American low sulfur bituminous coal Items in green

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NOTE 4 - AES Puerto Rico facility has two CFBs that operate on South American, low sulfur bituminous coal.NOTE 5 - Cleco has two CFBs that operate on pet coke and/or coal.NOTE 6 - Spurlock 3 and 4 are two CFBs that operate on coal and up to 10% TDF.NOTE 7 - Cliffside 6 is a PC boiler.

identify permit limits lower than VCHEC

VCHEC Water Usage Comparisong p

The Power Station will utilizeAir Cooled Condenser technology

- Reduces overall waterconsumptionconsumption

- Eliminates evaporation ofwater into the atmospherewater into the atmosphere

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SPX Air Cooled Condensor60 60 fan system (5x12)fan system (5x12)12 12 two speed fans / 48 single speed fanstwo speed fans / 48 single speed fans

Designed Designed to operate at 4.5 in Hg @ 87 Fto operate at 4.5 in Hg @ 87 FOption Option selected for tube cleaning systemselected for tube cleaning system

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Waste Water Reuse SystemWaste Water Reuse System

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CHSWMF Basic Facts• Site Design - GAI Consultants, Inc., Homestead, PA• Location – approximately 1 mile west of power block in

valley - Curley Hollow• Facility - 330 acresy• Lined area - 158 acres• Storage capacity - 35 million cubic yards• Facility will be permitted as an industrial solid waste landfill• Facility will be permitted as an industrial solid waste landfill

to receive fossil fuel combustion byproducts (FFPs)• Max. ash production: 268 tons per hour

45 000 tons per week45,000 tons per week 2 million tons per year

• Haul 5 days/week, 20 hours/day @ 10,000 tons/day

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• Site life at Average ash disposal rate is approx. 20 -30 years (actual site life will differ depending on coal used, plant outages and beneficial reuse of fly ash)

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Major Component General Arrangement

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Plant Design Parameters

Operating Conditions InputFuel (Coal Only) 393 t/hr

Operating Conditions

OutputFuel (Coal Only) 393 t/hr

7677 BTU/lbFuel (Wood @ 20% Heat Input)

125 t/hr

ConditionsGross MW (100%VWO)

668

Heat Rate 9973Heat Input)Limestone 58682 lb/hr

29 t/hrHydrated Lime (93% 7974 lb/hr

Heat Rate (guarantee)

9973 BTU/kwh

Ash (Performance Fuel)

193 t/hrHydrated Lime (93% CaOH2)

7974 lb/hr

Brine Solution (NaCl) 666 lb/hrA ti t d C b 564 lb/h

Fuel)Ash (Worst Case Fuel)

268 t/hr

Waste Water* 0 gpmActivated Carbon 564 lb/hrAmmonia (19%) 345 gal/hrWater (St. Paul) 494 gpm

Waste Water 0 gpm

*For waste water to be this value, leachate *For waste water to be this value, leachate water flows must match the recycled water water flows must match the recycled water value shownvalue shown

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Water (Recycled from CCB Storage)

383 gpm

Auxiliary Load 81 MW

All values are based on Performance Fuel All values are based on Performance Fuel unless otherwise noted.unless otherwise noted.All values are based on full plant load (2 All values are based on full plant load (2 boilers).boilers).

Plant Storage Capacitiesg pPiles Bins/Tanks/Silo

Coal 10 day 12 hrsCoal 10 day 12 hrsLimestone 10 day 24 hrsWood 10 day 45 minHydrated Lime (93% CaOH2) 5 daysAmmonia (19%) 10 day 1430 lb/hrStart-Up Fuel Oil 550,000 galp , gMake Up Water 1,000,000 galReclaim Water Tank 1,000,000 galDemin Tank 500 000 galDemin Tank 500,000 galFly Ash Silos* 72 hrsBed Ash Silo* 72 hrs

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Activated Carbon 14 day 100 ton*Fly and Bed Ash Silos volumes designed for Performance Fuel *Fly and Bed Ash Silos volumes designed for Performance Fuel ash ratesash rates

Fuel Specifications

PERFORMANCE COAL - PROXIMATE ANALYSIS

Min Max Performance Wood Fuels

Min Max Coal

Volatile Matter, % 19.3 22.1 19.6

Fixed Carbon, % 25.3 35.7 31.3

Ash, % 34.2 46.6 41.6

Fuel WoodPotential Fuel Range

Type Forest Residuals

Design Basis

Moisture, % 6.2 9.0 7.0

Sulfur, % 0.8 1.8 1.0

Chlorine, ppm in drysolids

350 500 400

Proximate Analysis (%W) As Rec’d Dry As Rec'd As Rec'd

Fixed Carbon 7.9 13.62 7.9 9.4

Fluorine, ppm in asreceived solids

860

Lead, ppm in asreceived solids

61

M i 0 51

Volatile Matter 47.8 82.40 47.5 57.0

Ash 2.3 3.97 2.3 2.8

Moisture 42.0 42.3 30.8

Mercury, ppm in asreceived solids

0.51

Thermal EnergyHHV (Btu/lb)

6,794 8,717 7,677

TOTAL 100 100 100 100

Heat Content BTU/# 5000

Up to 20% wood fuel can be firedUp to 20% wood fuel can be fired

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Up to 20% wood fuel can be fired Up to 20% wood fuel can be fired and maintain MCR.and maintain MCR.

COAL RECEIVING AND STORAGE

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COAL STORAGE AND RECLAIMING

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Material Handling Area #5Coal Unloading & Storageg g

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LIMESTONE STORAGE AND RECLAIM

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WOOD WASTE STORAGE AND RECLAIM

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Material Handling Area #5Wood, Limestone & Coal Infeed,

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VCHEC Biomass RequirementsVCHEC Biomass Requirements

• Facility will be capable of utilizing up to 20% ofFacility will be capable of utilizing up to 20% of its total heat input from wood chips.

• After the first 36 months of operation, the facility p , yshall use at least 5% biomass per year.

• Starting the 5th year of operation, biomass will be g y p ,increased by 1% each year to no less than 10% for all subsequent years.

• Can request relief if market conditions result in significant ratepayer costs.

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Conversion of Bremo Power StationConversion of Bremo Power Station

• As part of the Virginia City air permit, Dominion will convert its Bremo Power Station, an older, coal-fired power station in Central Virginia, to gas once Virginia p g g gCity is operational. State Corporation Commission must approve conversion.

• This would significantly reduce emissions from Bremo.-- Would more than offset the mercury and nitrogen

id i i f VCHECoxide emissions from VCHEC-- Would offset significant portions of other emissions, including carbon dioxide

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g

VCHEC Project PhotosVCHEC Project Photos

3030December 2008 chimney shell complete

VCHEC Project Photos 1/18/2010VCHEC Project Photos 1/18/2010C C oject otos / 8/ 0 0C C oject otos / 8/ 0 0April 2, 2009

January 1, 2010y ,

September 2, 2010

3131March 3, 2010

Steel going upSteel going up

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Air Cooled Condenser StructureAir Cooled Condenser Structure

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Project PhotosProject Photos

Looking SE @ FO & Makeup Water Tanks & Looking SW @ Coal Unloading Pit

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Project PhotosProject Photos

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Looking NW @ Steam DrumLift – Boiler 11 & Looking NE @ STG Bridge Crane Lift

VCHEC Project –Gantry Crane Setting 1/6/2010

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VCHEC Project Curley Hollow Solid Waste Management Facility

VCHEC Project Curley Hollow Solid Waste Management Facilityy g yy g y

3737September 2008

Aerial View September 2010

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First HRA Module Placed 9/1/2010First HRA Module Placed 9/1/2010

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Curley Hollow Liner InstallationCurley Hollow Liner Installation

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Questions?Questions?

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Generator Stator DeliveryGenerator Stator Delivery

•Steam Turbine Generator Stator supplied by Toshiba•Stator Manufactured in Japan, Shipped to Louisiana•Barged from Port Allen to Knoxville via river system.•Stator weight 795 869 # Rig approximately 1 3 Million #

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Stator weight 795,869 #, Rig approximately 1.3 Million #•265 feet long (w/o tractors), 22 feet wide, 19 feet tall. •Width expanded to 31 feet required for select structures.•Toshiba responsible for Delivery

Generator Stator DeliveryGenerator Stator Delivery

•Barnhart Crane and Rigging selected for heavy haul.•Travel route over 176 miles fromTravel route over 176 miles from Knoxville, TN to Virginia City, VA•Required permits from TN and VA•Over 45 bridges required g qevaluation•One bridge required shoring•One bridge required reinforcement•8 structures required temporary jump bridges.•Travel took 14 days, travelling only t i ht

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at night.•Limited to 20,000# per axle in TN

Stator DeliveryStator Delivery

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Stator Deliveryy

Rig at rest during day stop

Installation of temporary jump bridge

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Stator Installation

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VCHEC Plant Design Parameters

Operating Conditions InputFuel (Coal Only) 408 t/hr Operating OutputFuel (Coal Only) 408 t/hrFuel (Wood @ 20% Heat Input)

120 t/hr

Li t 56756 lb/h

p gConditions

p

Gross MW (100%VWO)

668

Limestone 56756 lb/hr28 t/hr

Hydrated Lime (93% CaOH )

7974 lb/hr

Heat Rate (operating case)

8996 BTU/kwh

Ash (Performance 193 t/hr(93% CaOH2)Brine (NaCl) 590 lb/hrActivated Carbon TBD

Fuel)Ash (Worst Case Fuel)

276 t/hr

Ammonia (19%) 345 gal/hrWater (St. Paul) 494 gpmWater (Recycled 383 gpm

Waste Water* 0 gpm

**For waste water to be this value, leachate For waste water to be this value, leachate water flows must match the recycled water water flows must match the recycled water

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( yfrom CCB Storage)

gp

Auxiliary Load 81 MW

value shownvalue shownAll Values are based on Performance Fuel All Values are based on Performance Fuel unless otherwise notedunless otherwise noted..

Actual Emissions Values in Air Permit

Each Boiler(lb/MMBtu)

Each Boiler(lb/hr)

Combined Total(tons/yr)

Filterable Particulate Matter (PM) 246.92

3-hour average 0.010 31.3230-day rolling average 0.009

Total PM-10 (filterable & condensable) 329.24

3-hour average 0.012 37.58

2 (f & ) 329 2Total PM-2.5 (filterable & condensable) 329.24

3-hour average 0.012 37.58

Sulfur Dioxide 603.63-hour average 0.035 109.6224-hour average 0.029 90.8330 day rolling average 0 022 0 21 lb/MWh (gross)30-day rolling average 0.022 0.21 lb/MWh (gross)

Nitrogen Oxides (as NO2) 1,920.5430-day rolling average 0.07 219.24

Carbon Monoxide 2,743.6330-day rolling average 0.10 313.2

Volatile Organic Compounds 137.183-hour average 0.005 15.66

Sulfuric Acid Mist (H2SO4) 96.033-hour average 0.0035 10.96

Hydrogen Fluoride 12.90

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3-hour average 0.00047 1.47

Hydrogen Chloride 79.543-hour average 0.0029 9.08

Mercury (12-month rolling avg) 0.00000088 lbs/MWhr