Laserfiche WebLink
A Division of Houston Industries <br /> <br />September 28, 1998 <br /> <br />Mr. Bryan Adams <br />General Manager <br />Elk River Municipal Utilities <br />322 King Avenue <br />Elk River, MN 55330 <br /> <br />Re: Peaking Turbine Plant <br /> <br />Dear Bryan: <br /> <br />This letter is intended to confirm our ability and interest in serving your proposed combustion turbine. <br />Minnegasco will be able to deliver 625MCF of natural gas to your 50 mW turbine at a minimum of 400 <br />psig during the summer, (non heating months). This assumes a heat rate of 12,500 Btu per kW. During <br />the heating season, depending on Northern Natural Gas infrastructure, 350 psig should be available, <br />down to approximately 0 F outside temperature. Further temperature models may be developed if <br />necessary, and will be dependent upon several factors. <br /> <br />There are two possible options for providing service to this project, to either pay upfront or through a <br />negotiated contract for delivery services. <br /> <br />OPTION 1 CONTRIBUTION UPFRONT <br /> <br />The required contribution to install the tap, meter set, and all piping/controls is $350,000.00 <br /> <br />OPTION 2 DELIVERY SERVICE AGREEMENT <br /> <br />If it is your desire to reduce the capital cost of this project, we may enter into a contract that will require <br />a certain usage or payment or combination of the two, to provide a return to Minnegasco. If this option <br />is your preferred method, we will need to discuss a mutually beneficial structure and timeframe. Once <br />this investment is satisfied, we will work with you to creatively price our delivery service to make this <br />turbine attractive to the market. <br /> <br />When you are using gas at this facility, you may either transport your own gas, or take our sales service <br />supply. Minnegasco's sales service supply should reduce supply cost, as our sales service typically <br /> s~gn,,,c,~m,y u~, ....... "~' with no u ..... ,,,g or rese.'~'atic, n fees, or nc.m/nation.-o~qu..';-o~m.n,~ *ts. <br /> <br />We appreciate the opportunity to work with you on this project, please let me know when you need <br />additional information. <br /> <br /> Sincerely yours, <br /> <br />~" Jim Radford <br /> <br />Energy Sales <br />C.C. Boyden Kneen, Minnegasco <br /> <br />800 LaSalle Avenue <br />P.O. Box 59038 <br />Minneapolis, MN 55459-0038 <br /> <br /> <br />