New NOX Knockout, Plus Heat Recovery and Emissions Control

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Thermal Energy International, near Ontario Canada, has made even greater progress in the year since the last UFTO note about them (see below).

The company “has received international market patent protection for its revolutionary 90% reduction “Low NOx” FLU-ACE Air Pollution Control and Heat Recovery technology, for application to all natural gas, oil, and coal burning energy process waste exhaust gases.” (from a company press release)

The Low NOx process oxidizes NO into NO2, which can then be absorbed by any wet scrubber. If FLU-ACE is used as the scrubber, the additional benefits of heat recovery and removal of other emissions can also be accomplished.

The Low NOx technology achieves 90% NOx removal at 30% to 50% lower cost per ton removed than the competing (currently accepted) reduction methods (SCR, SNCR). Other advantages are that the Low NOX does not produce hazardous byproducts, does not adversely affect the energy efficiency and operating cost, and does not suffer from an “ammonia slip” concern; which are all documented disadvantages of SCR technology.

The Low NOx process is a simple phosphorus (P) additive atomization and injection into the flue gas; which initially creates Ozone (O3) which then reacts with NO to produce NO2, and then the NO2 is easily 90% removed through a standard wet scrubber, or 98% removed through a FLU-ACE condensing & reactive scrubber.

Adding phosphorus is not a new idea. Years ago, researchers at Lawrence Berkeley Lab worked on putting it into the scrubber slurry (see UFTO Report, June ’95) , but weren’t able to get the performance to make it practical. Thermal Energy’s chief scientist was able to figure out the complex series of chemical reactions and determine that the best way to inject phosphorus was directly into the flue gas, as it leaves the boiler.

Installation is not complex, and can be readily done as a retrofit on almost any kind of exhaust system, with only a moderate degree of site-specific engineering.

To recap–there are two stories here. One is FLU-ACE, and the other is Low NOx. They can be used together or separately.

Low NOx provides significant cost savings over available technology. If a wet scrubber is already in place, costs can be 65-75% less expensive than SCR, at 90% NOx removal. As mentioned earlier, if FLU-ACE is installed as the scrubber, then NOx removal can approach 98%, and provide heat recovery and removal of other pollutants, with costs 30-50% cheaper than SCR alone.

Notably, FLU-ACE can remove multiple emissions at the same time, including fine particulates, hydrocarbons, heavy metals and VOCs, in addition to HCl, SOx, NOx, and CO2. The system replaces the smoke stack, with a smaller foot print and lower height.

It’s also worth noting that FLU-ACE qualifies under Canadian government export support programs that can provide low interest financing and performance guarantees.

The company is seeking to raise $12 Million in debt and equity capital, and has a business plan that they will share with qualified investors or potential partners. (I have a pdf copy of the Plan Summary, which I can forward on request.)

For further information:
Thomas Hinke, President
Thermal Energy International Inc.
Neapean (Ottawa), Ontario, Canada
613-723-6776 Fax: 613-723-7286 E-mail: thermal@istar.ca
Web Site – http://www.thermalenergy.com/

====================================================
–previous UFTO NOTE —-
====================================================
Subject: UFTO Note – Flue gas heat recovery and air pollution control
Date: Thu, 22 Jan 1998

————————————————————–
Flue gas heat recovery and air pollution control

Simple in concept, FLU-ACE has accomplished something that many others have tried unsuccessfully to do for a long time, and they have plants that have been operating for over 10 years. Their condensing heat exchanger system replaces the stack in combustion systems, recovering almost all of the waste heat, and removing most of the emissions. With modifications, it even can remove up to 50% of the CO2.

It can be thought of as pollution control that pays for itself in fuel savings–or visa versa. Water is sprayed into the hot flue gas, both cooling and cleaning it. The water is then collected, passed through a heat exchanger to recover the heat, and treated to neutralize the acidity and remove contaminants.

Condensing heat exchangers aren’t new, but they normally can be used only when the hot gas is reasonably clean. FLU-ACE can handle any kind of gas, even if it contains particulates, acids and unburned hydrocarbons. Conventional wisdom holds that corrosion, plugging and clogging should defeat this approach, but FLU-ACE has overcome problems with its patented design. Systems show no degradation after years of operation. It has even been qualified for use with biomedical incinerator exhaust.

Industrial boilers and cogeneration plants are ideal applications. The installed base includes district heating systems, sewage treatment plants, hospitals, pulp and paper mills, and university campuses. Heat recovery is even greater when the exhaust gas is high in moisture content, e.g. in paper mills and sewage treatment. The largest system to date is 15 MW thermal, but there is no limit on the size.

A fossil power plant could use about 15% of the recovered heat for makeup water heating, so the economics are better when there are nearby uses for the heat. The company really wants to do a coal burning power plant–a slipstream demo could be the first step.

The company is a small publicly traded Canadian firm (symbol TMG – Alberta Stock Exchange). They have a dormant U.S. subsidiary, and are seeking U.S. partners, joint ventures and alliances for market expansion.

(UFTO first reported on FLU ACE in October ’95)

———————————————————-
The following materials are excerpted from the company’s materials:

The unique FLU-ACE technology is a combined heat recovery and air pollution control system, which recovers up to 90% of the heat normally wasted in hot chimney flue gases. FLU-ACE substantially reduces the emission of “Greenhouse Gases” (including C02), “Acid Gases” (including SOx), Nitrogen Oxides (NOx), unburned hydrocarbons (such as THC and VOCs), and particulates (such as soot and fly ash). It eliminates the need for a conventional tall smoke stack or chimney.

Thermal Energy International Inc. has built eleven FLU-ACE Air Pollution Control and Heat Recovery Systems in Canada. All of Thermal’s FLU-ACE installations in Ontario have been approved by the Ontario Ministry of Environment and Energy. The life expectancy of the FLU-ACE system is at least thirty-five to forty years. In December 1997, the company received patent protection in 42 countries; the US patent is expected early in 1998.

Low NOx FLU-ACE provides a payback on investment and is self financing from the savings that it generates for the industry user. The company is able to provide “Off-Balance” Sheet financing or 3rd party financing options for acquisition of its FLU-ACE technology by industrial and institutional buyers.

Using a direct-contact gas-to-liquid mass transfer and heat exchange concept, the system is designed to process flue gas from combustion of fossil fuels, waste derived fuels, waste, biomass, etc. The FLU-ACE System is configured as a corrosion resistant alloy steel tower at a fraction of the size of any conventional stack. All of the hot flue gas from one source or multiple sources (including co-gen and boilers) are redirected into the FLU-ACE tower, where it is cooled to within one to two degrees of the primary water return temperature, which enters the tower typically at between 16¡C (60¡F) and 32¡C (90¡F) depending on the season and outside air temperature. The heat (both latent and sensible) from the flue gas is transferred to the primary water which then reaches up to 63¡C (145¡F) and with special design up to 85¡C (185¡F), and circulated to various heat users.

FLU-ACE most sophisticated version (HP) reduces air pollutant emissions by over 99% including particulate down to 0.3 micrometers in size, and simultaneously recovers 80-90% of the heat in the flue gas normally exhausted into the atmosphere. This results in a reduction of fuel consumption by the facility up to 50%.
====================================================

Parallel Active Harmonic Filters

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There is a common perception in the utility industry that power quality should be dealt with at the service entrance. As a general rule, however, managers of commercial and industrial facilities know that the real problems are inside the plant–their own (heavy) equipment is usually the cause of disruptions to their own sensitive loads.

There are greater benefits when harmonic and displacement power factor correction solutions are placed close to the causes of the problem. A facility’s internal electrical system can be better utilized, chances of harmonic related mysterious shutdowns are eliminated, and resonance cannot occur.

Parallel active harmonic filters (AHFs) use fast switching semiconductors to inject harmonic current onto ac lines. Microprocessor logic circuits monitor the total current of the load(s); determine the harmonic content; and control the switching sequence of the power semiconductors to inject a current waveform to exactly cancel and thus remove the bulk of the harmonic current.

AHFs are installed parallel to nonlinear loads, and use current transducers to monitor the load current. They do not use power factor capacitors. The power semiconductors are insulated gate bipolar transistors (IGBTs) that move power from the ac lines to a dc bus capacitor circuit and back to the ac lines in a prescribed manner. (Before the advent of IGBTs, active harmonic filters were ineffective and quite expensive.) Some AHFs can also measure and inject reactive current for system displacement power factor correction.

Historically, AHFs have been viewed as either did not working well or costing far too much. If only the initial equipment cost is considered, a 5th harmonic tuned filter will be cheaper. However, when all costs are included, AHFs are the most economical and the most complete solution.

Products are available commercially for use 1) on utility distribution lines, 2) at the point-of-common-coupling (PCC) for facilities to the utility, 3) within the three phase distribution system inside facilities, 4) on the three phase four wire facility distribution system, and 5) to remove neutral harmonics on three phase four wire systems.

———-

Electronic Power Conditioning Inc. (EPC) is offering a series of compact AHF devices called AccuSine, in 50/100/300 amps sizes for placement close to loads. AccuSine can also be paralleled (up to 5 units) for larger requirements such as the utility interface when appropriate. It is designed with the fastest response possible — spectrum cancellation responds in 8 milliseconds (about 1/2 cycle). This approach will cancel interharmonics (noninteger multiples of the fundamental) above 60 Hz, where FFT cannot. This permits AccuSine to correct for “all” types of loads (eventually to include welders and arc furnaces).

With rapid switching of the IGBTs (20 kHZ), AccuSine cancels all harmonics up to the 50th order. Customers do not need to choose which specific orders or put up with limited range of orders to be canceled (as with products from other suppliers).

———–

AccuSine is a flexible product, and can be used in many applications, for power factor correction only, harmonic cancellation only, or both simultaneously. It can be applied to single loads or on a bus for many loads.

Some frequent applications include:

VFD — Variable frequency drives are the largest group of harmonic polluters in use today. AccuSine eliminates the distortion of one or many VFDs depending upon the installation.

WWTP — Water and wastewater plants use many VFDs for pump and fan applications. With AccuSine the current harmonics can be limited to any amount desired, even to

Office Buildings — AccuSine will protect the tenants from VFDs on air handling units and DC drives on elevators. TDD can be kept

Generators — Generators are unstable and overheat when small amounts of the total load are nonlinear. Placing AccuSine between the generator and the loads converts the loads into linear loads. Thus full capacity can be used when PFC and harmonic suppression are both used.

UPS – Input & Output — UPSs create significant harmonic distortion on the AC lines. AccuSine will maintain TDD to

UPSs do not operate well with a high content of nonlinear loads on their output. AccuSine on the UPS output is the answer.

Plant Entrance Systems — IEEE 519-1992 requires harmonic current distortion emissions be held to defined levels. AccuSine on the low voltage system provides absolute compliance regardless of the load dynamics.

DC Motor Controls — DC drive applications have rapidly changing loads that create poor power factor and large amounts of harmonic current due to the SCR phase converter. Only AccuSine can remedy both the power factor and harmonic current pollution simultaneously and dynamically.

———–

In June ’98, EPC announced the successful installation of an AccuSine Power Correction System at a wastewater treatment plant in Oregon, where variable frequency drives (VFDs) had been installed to improve control of raw sewage pumps and to decrease operating costs through variable speed operation. Interference with the computer management system was an unexpected complication. Noise pickup caused multiple logic errors. Sometimes erroneous warnings were sounded. Additionally, depending upon the total load of the VFD/raw sewage pump system, the circuit breaker protecting the management control system would trip thus shutting the plant down. If partially treated sewage is dumped into the adjacent river as a result of computer failure, substantial government fines occur.

After costly and time consuming on-site studies, harmonics from the VFD were determined to be the cause. The initial solution was to install an input line reactor (believed to be the lowest cost solution), which was partially successful. However, at near full load and speed conditions, the problem persisted. AccuSine has eliminated the problem.

This installation required an AccuSine rated at 50 amperes and 480 volts performing only harmonic cancellation to correct the harmonic current caused by a VFD rated at 125 horsepower. AccuSine has successfully reduced the total harmonic current distortion from 39% to 4% insuring trouble free operation of the plant.

————-

EPC has a website with more information and a national list of reps.

http://www.accusine.com
(Available March 1 — in the meantime,
temporary site is http://www.proaxis.com/~epc/)

Contact: Jim Johnson, VP Sales 541-753-7220, epc@proaxis.com
Electronic Power Conditioning, Inc. (Corvallis OR)

Additional ref: “Parallel Active Harmonic Filters: Economically Viable Technology”, Charles Gougler and James R. Johnson, IEEE PES Winter Power Meeting, Feb ’99

Utility Restructuring Weekly Update

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A reminder that this weekly service is available from DOE. Anyone can request to be added to the email distribution list. Notice the availability on DOE’s website.

———————————————————————
Subject: Utility Restructuring Weekly Update
Date: Fri, 22 Jan 1999 16:46:48 -0500
From: Jennifer Bergman
To: Ericka Goss

January 22, 1999
Utility Restructuring Weekly Update

This weekly information has been compiled by Energetics, Inc. for the U.S. Department of Energy. Questions or comments on subscribing to the weekly should be directed to either Jennifer Bergman, Energetics, jbergman@energeticsinc.com, or Diane Pirkey, U.S. Department of Energy, DIANE.PIRKEY@HQ.DOE.GOV. All other inquiries should be directed to the specific organization in question.

The Weekly Update is available on the Internet at
http://www.eren.doe.gov/utilities/utilityres/weekly.html

National/Federal
State legislators from around the country are expressing their opposition to Congressional activity that will preempt state efforts in the area of electric industry restructuring. Speaking on behalf of the National Conference of State Legislatures, . . . . . .

WEBSITES:
Yahoo Utilities Company News: http://biz.yahoo.com
PMA Daily Power Report: http://www.powermarketers.com
EnergyOnline: http://www.energyonline.com

****************************
Jennifer Bergman
Energetics, Incorporated
501 School Street, SW
Suite 500
Washington, DC 20024
(202)479-2748 ext. 108
Fax (202)479-0229

Ultra-Net Satellite SCADA Communications Network

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ULTRA-NETª is a satellite communications system which provides reliable dedicated links between a company’s control centers and remote data acquisition, monitoring and control points. ULTRA-NETª improves reliability by providing a low cost, real time, monitoring of critical operating parameters, and enabling the automation of systems that are dispersed over a wide geographical area. It also can be used to augment or replace older communication systems (which can help justify the cost of automation projects).

Ultra-Net has already been demonstrated and proven in full scale use for over 3 years in SCADA applications by Southern California Edison (SCE), linking nearly 200 remote terminals at 150 substations to central control centers (equipment monitoring, load switching, etc.). There is a great deal of operational data available.

The system is not affected by terrain variations such as mountains, hills and river valleys that impede radio and microwave communications. It eliminates the need to acquire and access heavily congested radio frequencies, and it eliminates the high cost of leased telephone lines and the cost of substation ground fault isolation. ULTRA-NETä systems can be installed in environmentally sensitive areas that can not be accessed for the installation of landlines, radio, or microwave towers. The documented avoided cost savings at SCE were in excess of five times the cost of equipment and labor of alternative technologies.

Another positive feature of ULTRA-NETª is that high wind, ice and snow loading do not adversely affect its performance (in marked contrast to ground phone lines). Nor are systems affected by flooding, as are buried lines and vaults. SCE’s system has survived Santa Ana windstorms with wind speeds over 100 mph, with no effect on performance.

Ultra-Net is designed for very specific niche applications — SCADA systems in electric, gas and water utilities, and oil and gas pipelines. It likewise is well suited for distribution automation and weather or hydrological data collection.

The small earth station units are self-contained, and are easily installed with mimimal site impact and with direct interface to existing user equipment , with only DC power and RS-232 data cables as the only connections. The system uses commercial geosynchronous satellites, so it provides uninterrupted dedicated communications, polling every remote unit every 4 seconds.

Edison Technology Solutions (ETS) is offering the system commercially, and will develop the requirements and cost proposal, do the installation, and provide service and support.

Contact: Jerry Barich, 626.815.0503, jbarich@edisontec.com
———————
Business Sensitive–UFTO Notes are for the exclusive use of UFTO
client companies and their staff, except as authorized in writing.

Fuel Cell Information Sources

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The industry pays a lot of attention to Fuel Cells and there are many sources of information, so UFTO doesn’t attempt to cover this huge topic except for unusual or less visible developments.

———————–
If you didn’t go to the big meeting in Palm Springs last Fall, you can purchase a copy of the of the 1998 Fuel Cell Seminar Abstract book for $45 (includes U.S. shipping & handling), or if you prefer in CD ROM format for $20 (includes U.S. postage & handling). For international orders please contact us for shipping information.

Mail check to:
Fuel Cell Seminar
2000 L Street, NW. Suite 710
Washington, DC 20036

For credit card orders call (202) 973-8671. Please allow-2-3 weeks for delivery. Quantities are limited. (FUELCELL98@courtesyassoc.com)

———————–

Hydrogen and Fuel Cell Letter http://www.mhv.net/~hfcletter/
(monthly newsletter, $230/year — recommended)
———————–

Here is a list of websites on fuel cells, courtesy of Charles Berry, KeySpan Energy (Brooklyn Union), our newest UFTO member (cberry@keyspanenergy.com). Many of these sites also have lists of site links.
———————–

Charles Berry’s FUEL CELL WEBSITES LIST:

Fuel Cell Developer List
http://www.fuelcells.org/fuel/fcdevel.shtml

Brooklyn Union
http://www.bug.com/product/fuelcel.htm

International Fuel Cells
http://www.internationalfuelcells.com/

ONSI Corporation
http://www.onsicorp.com/

Ballard
http://www.ballard.com

Dais Corporation
http://www.dais.net/

DCH Technology
http://www.dch-technology.com

Dept. of Defense
http://www.dodfuelcell.com

Dept. of Energy
http://www.doe.gov
http://www.fetc.doe.gov/products/power/fc.html **

(** Has proceedings of the annual Joint DOE/EPRI/GRI Workshops on Fuel Cell Technology. The writeup for the May ’98 meeting in San Francisco is still in preparation by EPRI. The ’99 meeting will be in Chicago, July 27-29.)

Energy Research Corp.
http://www.ercc.com

Electric Power Research Institute
http://www.epri.com

Epyx Corporation
http://www.epyx.com

Equitable Gas
http://www.equitablegas.com/tech/fuelcell1.htm

Gas Research Institute
http://www.gri.org/

General Motors
http://www.gm.com/vehicles/us/innovations/fuelcellcar.html

Fuel Cell Commercialization Group
http://www.ttcorp.com/fccg/index.htm

Fuel Cells 2000
http://www.fuelcells.org/

A.D. Little
http://www.adltranspotech.com/Fuel.serv.html

Air Products
http://www.airproducts.com/corp/spring98/road.htm

American Hydrogen Association
http://www.clean-air.org/

Analytic Power Corp.
http://www.analyticpower.com

Ansaldo CLC
http://www.Ansaldo.it/clc

APASE
http://www.swifty.com/apase/charlotte/!chem.html

Avista Labs
http://www.avistalabs.com/

ElectroChem, Inc.
http://www.fuelcell.com/

Energy Partners
http://www.gate.net/~h2_ep/

Fuel Cell File
http://www.igc.apc.org/raenergy/fuelcl.html

Gridwatch
http://www.gridwatch.com/guide/fuel_cells/

H Power Corp.
http://www.hpower.com/

Hydrogen and Fuel Cell Letter
http://www.mhv.net/~hfcletter/

Hydrogen Burner Technology
http://www.hydrogenburner.com/

Hydrogen-Gazette
http://www.HyWeb.de/gazette-e

Hydrogen InfoNet
http://www.eren.doe.gov/hydrogen/infonet.html

Humboldt State University
http://sorrel.humboldt.edu/~serc/index.shtml

HyWeb
http://www.HyWeb.de/index-e.html

M-C Power
http://www.mcpower.com

NASA Lewis Safety Manual
http://www-osma.lerc.nasa.gov/lsm/lsm6.htm

Natural Resource Defense Council
http://www.nrdc.org

Northeast Utilities
http://www.nu.com/energy/fuelcell.htm

Westinghouse
http://www.stc.westinghouse.com/AEC/aec_hp.htm

National Fuel Cell Research Center
http://www.nfcrc.uci.edu/

National Hydrogen Association
http://www.ttcorp.com/nha/index.htm

National Renewable Energy Laboratory
http://www.nrel.gov/business/international/info-energy/supplies/fossil/fuel-cell.html

NYSERDA
http://www.NYSERDA.org
(St. Vincent’s demonstration is covered in Report 97-3)

Argonne National Labs
http://www.anl.gov:80/LabDB/Current/Ext/H460-text.001.htm

Oak Ridge National Labs
http://www.ornl.gov

Plug Power, LLC
http://www.plugpower.com

Philadelphia Inquirer
http://sln.fi.edu/inquirer/hydrocar.html

Proton Energy Systems
http://www.protonenergy.com/home.htm

Sacramento Municipal Utility District
http://www.smud.org/energy/powres/ar%26t.html

Sandia National Labs
http://www.techpart.sandia.gov/RAFCO/rafco_facts_2.htm

Small-scale Fuel Cell Commercialization Group
http://www.oge.com/sfccg/sfccg.htm

South Coast Air Quality Management District
http://www.aqmd.gov

Stanford University
http:// www-formal.stanford.edu/jmc/progress/hydrogen.html

US Fuel Cell Council
http://www.usfcc.com/index.html

Utilicorp
http://www.utilicorp.com/products/business/pqn/partners/cgi-bin/cgibuilder.cgi?onsi.html

Warsitz Enterprises, Inc.
http://www.Warsitz.com/

Borderland Sciences
http://www.borderlands.com/journal/h2.htm

CTC, NDCEE
http://www.ndcee.ctc.com/pdfindex.htm *

*Following reports available:

Task 3: Investigate Current Uses of Fuel Cells in the DOD, issued June 2, 1997, provides a detailed overview of fuel cell technology, fuel cell manufacturers, and key support organizations. In addition, the report summarizes current DOD fuel cell applications and installations under the Fiscal Year 1993 (FY93) and FY94 DOD fuel cell programs.

Task 4: DOD-Unique Applications, issued June 20, 1997, identifies fuel cell applications not currently pursued by the DOD, including premium power, direct current (DC) power, and hydrogen source applications.

Task 5: DOD Guidebook for Evaluating Fuel Cell Technology, issued October 10, 1997, identifies fuel cell technology, guides users through the process to determine potential fuel cell applications, and allows an approach for an economic analysis of fuel cells.

==================

CPUC OIR–Deregulate Elec. Distribution???

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**(note proposal below, and let me know of your interest)***

The California Public Utilities Commission (CPUC) is about to embark on what may become the most far-reaching restructuring process to date. Motivated in large part by the advent of distributed resources (small generation and storage technologies) and the California Alliance for Distributed Energy Resources (CADER), the CPUC will evaluate over the next 12 months the rules for the distribution systems of the future.

Topics will include the role of wires companies, true retail access, whether the wires should remain a monopoly, and whether distribution companies can own or operate distributed generation and storage. The results could dramatically alter some of the most important aspects of AB1890, define the distributed technology market rules in California, and influence similar discussions now heating up in other states and on the federal level.

At its regular meeting on Dec 17, the CPUC issued an “OIR”:

R.98-12-015, “Order Instituting Rulemaking to Consider
Commission Reforms in the Structure and Regulatory Framework
Governing Electricity Distribution Service”

The full text is available online:
http://www.cpuc.ca.gov/981217_orders.htm
(in HTML, Word, or PDF format)

>>> The Summary and Rulemaking Questions are attached below. <<<<<

****************************************
*******”OIR Watch Proposal”***********
****************************************

Obviously, utilities in California will be heavily involved (they’re named as respondents). The rest of the country will probably want to pay close attention to this entire discussion, as lengthy and voluminous as it is likely to be.

Distributed Utility Associates (founding members of CADER and a leading consultant in distributed resources) is considering a plan to prepare concise monthly reviews of the CPUC Distribution System Order Instituting Rulemaking (OIR), and to interpret its progress, direction and interpreting its importance.

The rulemaking’s implications could include new definitions of distribution companies, new business opportunities or exclusions for wires companies, needs for new or revised energy technologies and set the pace of distributed resources market entry.

In addition, a final synopsis on the resulting rulemaking and its implications on the electric utility industry could be issued at the conclusion of the twelve to fifteen month process. This would be offered as a subscription package.

Pricing is to be determined, probably in the range of $5,000, assuming a sufficient number of subscribers. UFTO Client Companies would be eligible to subscribe at a substantial discount.

Please let me know how this idea strikes you, and what your level of interest might be.

****************************************
****************************************
ORDER INSTITUTING RULEMAKING

Summary
By this order, we open a rulemaking proceeding to consider whether the Commission should pursue reforms in the structure and regulatory framework governing electricity distribution service. The purpose of this proceeding is to gather additional information to assist us in framing proposals to the Legislature and our stakeholders for whatever reforms may be necessary in light of current developments in California’s electric industry.

This rulemaking will provide the opportunity for the Commission to begin consulting with the Legislature and collaborating with the Administration, interested stakeholders, and other state/local agencies who may have jurisdiction or interest in electric distribution and generation issues. In particular, we believe that our consideration of issues focusing on distributed generation and/or distribution competition will benefit from a collaborative effort among the Commission, the California Energy Commission (CEC), and the California Electricity Oversight Board (EOB). This process will allow us to work with these parties to identify the range of issues on distributed generation and distribution competition, and their interrelationships; explore whether we should undertake a focused analysis of distributed generation or a more comprehensive consideration of distribution competition issues; and determine those issues we can address more narrowly and more expeditiously. At the end of this process, we anticipate issuing a proposal that reflects our coordination with the CEC and the EOB, outlining the specific steps we will undertake, in cooperation with the Legislature, in addressing the issues and considering proposed changes in our regulatory policies and rules.

We solicit comments and proposals regarding the scope and substance of issues that need to be addressed, possible policy options, and the procedural steps that the Commission could pursue in adopting and implementing needed reforms that are consistent with the state’s goals and objectives in electric restructuring. We invite responses to our questions in Appendix A of this rulemaking. Respondents shall and interested parties may file opening comments on or before March 17, 1999, and reply comments on or before May 17, 1999. Given the collaborative efforts we intend to undertake with the CEC and the EOB in this proceeding, respondents and interested parties should also provide copies of their comments to these two agencies. We intend to consider a proposal from the Assigned Commissioner in the summer of 1999.

APPENDIX A

Rulemaking Questions

From a policy perspective, does consideration of DG necessarily require a broader, more comprehensive look at distribution competition and the role of the UDC?

Where has competition, as it relates to distribution, emerged or not emerged in California? Has there been growth in irrigation, municipal, and other public utility districts in the existing service areas of the UDCs? What has been the market penetration of DG, self-generation, and T&D substitutes in California?

Is there a need for further reforms in the structure and regulatory framework governing electricity distribution service, in light of current market developments described in your response to Q2 above? If so, what are they? What is the UDC’s ultimate role in this restructured energy market?

How would competition in distribution service be effected? Please give specific examples or scenarios manifesting competition in distribution facilities and/or services. What is the Commission’s role and the roles of other state/local agencies?

How would the integrity, reliability, safety, and efficiency of the T&D system be affected by a more competitive electric distribution and/or DG market? Please provide policy options.

What are the regulatory jurisdictional effects, if any, of allowing more competition in distribution and/or DG? Please provide policy options.

Provide an assessment of the possible environmental impacts of increased competition in distribution and/or DG. Please provide policy options.

Provide an assessment of the possible social, economic, and labor impacts, including implications for public purpose programs (i.e., energy efficiency and low-income programs), of increased competition in distribution and/or DG. Please provide policy options.

What are the ratemaking consequences of introducing or encouraging more competition in distribution and/or DG? Please provide policy options.

Describe the potential costs of promoting competition in distribution and/or DG? What are the potential stranded costs? What are the benefits? How should the potential costs and benefits be analyzed and quantified?

Does competition in electric distribution service have implications on the delivery infrastructure for natural gas? Please describe any such interrelationship and the resulting impacts on customer benefits, the environment, and regulatory structure?

What procedural steps should be pursued? Should there be a more focused analysis of DG issues, or a more comprehensive consideration of issues surrounding distribution competition? Are there issues which are more appropriately considered in workshops, full panel hearings, and/or other procedural forums?

UFTO NOTES 1998

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15 Dec 1998 UFTO Note – Microturbine Test Programs

14 Dec 1998 UFTO Note – Hybrid Power Plant (SOFC and MTG)

12 Dec 1998 UFTO Note – Inverters – State-of-the-Art

06 Dec 1998 UFTO Note – European utility industrry

29 Nov 1998 UFTO Note – Adv Technol Program

23 Nov 1998 UFTO Note – CURC Annual Conf. 11/98

12 Nov 1998 UFTO Note – New Carbon Management Report

08 Nov 1998 UFTO Note – Distrib Power Meeting; Interconnection Stds

29 Oct 1998 UFTO Note – Cold Fusion Quietly Continues

25 Oct 1998 UFTO Note – Substation Power Quality System

08 Oct 1998 UFTO Note – Reliability TF Final Report

06 Oct 1998 UFTO Note – Distrib Cogen Envir Projects Development

05 Oct 1998 UFTO Note – Environ. Capital Forum, Chicago Oct 22

17 Sep 1998 UFTO Note – Ions Increase Fuel Effic.

10 Sep 1998 UFTO Note – Final Meeting SEAB Elec. Reliab TF

04 Sep 1998 UFTO Note – Rel. TF Paper-Federalism in Transmission

04 Sep 1998 UFTO Note – DOE Reliability TF paper on T&D

01 Sep 1998 UFTO Note – VSAT satellite datalink

29 Jul 1998 UFTO Note – GASMAP

29 Jul 1998 UFTO Note – Argonne Visit notes

27 Jul 1998 UFTO Note – CURC Annual Technology Conf.

09 Jul 1998 UFTO Note – New Approach to Data Mining

01 Jul 1998 UFTO Note – Fed. Restructuring Proposal

24 Jun 1998 UFTO Note – Sm Commercial Energy Mgt

24 Jun 1998 UFTO Note – Building Products from Fly Ash and CO2

18 Jun 1998 UFTO Note – Next Meeting SEAB Elec Reliability TF

07 Jun 1998 UFTO Note – Resonant Shock — Ash to Block

03 Jun 1998 UFTO Report – ORNL 98

02 Jun 1998 UFTO Note – Heat Transfer Research, Inc.(HTRI)

29 May 1998 UFTO Note – Fed Energy Mgt Program (FEMP) Videoconf.

21 May 1998 UFTO Note – DOE Elec Reliability TF Papers

14 May 1998 UFTO Note – Clean Power Road Map

03 May 1998 UFTO Note – E-Beam Stack Gas Scrubbing

30 Apr 1998 UFTO Fwd – DOE Selects Potential Breakthru Approaches for Carbon Sequestration

29 Apr 1998 UFTO Note – 12th Ann. Conf Fossil Energy Materials

27 Apr 1998 UFTO Note – DOE 11 Lab Study on technology, greenhouse gases

23 Apr 1998 UFTO Note – EPRI-GRI-DOE Fuel Cell Workshop

23 Apr 1998 UFTO Note – Next Meeting-DOE Reliability Task Force

17 Apr 1998 UFTO Note – CADER Report Available

17 Apr 1998 UFTO Note – Renewable Technology Characterizations

15 Apr 1998 UFTO Note – National Combustor Code (NCC)–new from NASA

01 Apr 1998 UFTO Note – EMF Engineering Review Symposium, April 28-29, 1998

31 Mar 1998 UFTO Note- Environ Capital Forum NYC

30 Mar 1998 UFTO Note – MC Power Seeking Partners

26 Mar 1998 UFTO Note – Sandia: Critical Infrastructure

31 Mar 1998 UFTO Note – Nortel Digital Powerline venture

25 Mar 1998 UFTO Note – Comprehensive Electricity Competition Plan

23 Mar 1998 UFTO Note – Elec. Cable Research-Sandia

19 Mar 1998 UFTO Note – Distrib Gen Conference

19 Mar 1998 UFTO Fwd: Sandia’s PV News: Possible Procurement for Remote Power

16 Mar 1998 UFTO Note – FERC Conf. on ISOs

13 Mar 1998 UFTO Note – Utility Restructuring Weekly Update]

12 Mar 1998 UFTO Note – ESA Newsletter

10 Mar 1998 UFTO Note – Energy Storage Assoc. Spring Meeting

19 Feb 1998 UFTO Note- Next Meeting DOE Reliability TF

19 Feb 1998 UFTO Note – Chemical Treatments Neutralize Asbestos

16 Feb 1998 UFTO Note – Sandia Help Implementing Solar

Microturbine Test Programs

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Edison Technology Solutions is offering a subscription program to test microturbines. It will involve actual testing on a uniform basis of up to 8 “pre-commercial” and commercial units from different manufacturers. Two units will commence testing early in January.

Subscribers will have timely access to detailed test data and analyses of performance and interconnection issues. While some of this information may eventually become available elsewhere, subscribers will not only receive timely information, but will gain access to technology briefings, operations assessments, and lessons-learned. It will be important to have such information before beginning any kind of commercial installations.

EPRI is cofunding this work (along with CEC and DOE), and will receive general test results under this arrangement. ETS’ program, however includes additional detailed analyses and reports, summarized conclusions, and presentations throughout the testing program that will not be available through other sources.

Contact: Jaime Medina, 626-815-0516, jmedina@edisontec.com
http://www.edisontec.com

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In ’99, EPRI is continuing a microturbine field test program (which began in 1996 with the testing of Capstone early prototype units at Northern States Power and Southern California Edison). Participating host utilities will test one or more microturbines at either laboratory or actual end-user sites. The program will cover all available vendor products (e.g., Capstone, Elliott, Allied-Signal, NREC) and provide information on unit performance as well as interconnection, siting and permitting issues. The data from all of the tests will be shared within the group of host companies. Members of either of the two EPRI DR targets can use tailored collaboration money. Nonmembers can also participate by co-funding. Participants will participate in a user’s group where they will share experiences and insights obtained from operating their units with others in the program.

Contact: Doug Herman, 650-855-1057, dherman@epri.com

Additional information on EPRI’s $5 million/yr DR program (2 targets), including the microturbine tests, can be found at http://www.epri.com/gg/newgen/disgen/index.html
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