 |
|
|
Big Cajun II Expansion Project
POWERING LOUISIANA WITH NRG
|
|
 Louisiana Generating LLC, a subsidiary of NRG Energy, Inc., supplies 100 percent of the power needs of Louisiana’s 11 electric cooperatives. Currently, the peak electrical demand of the cooperatives exceeds NRG’s generation capacity at the Big Cajun II site.
The expansion of the Big Cajun II coal facility in New Roads, Louisiana, will increase generating capacity in the region, enhance the reliability of low-cost electric power, and reduce the state’s dependence on fuel sources such as natural gas, that are susceptible to sudden and costly price volatility.
The proposed expansion project would add a fourth generating unit to the facility and bring approximately 675 megawatts (MW) of low-cost, stable electric generating capacity to the region, enough to supply approximately 675,000 households. The expansion would also comply with all environmental standards by using the best available emission control technology to reduce air emissions and control pollution.
The new unit will be constructed adjacent to existing generating units 1, 2 and 3. Unit 4 will include a new pulverized coal boiler, steam turbine, generator and the necessary additional plant equipment required for power generation. The expansion also includes building a new cooling tower, rail spur, unloading facility for railcars and new coal conveyors to move coal from the rail car unloading facility to the existing coal storage pile.
Big Cajun II comprises three coal-fueled steam units, which generate 1,700 megawatts of baseload or load-following generating capacity. The facility, which went into operation between 1981 and 1983, currently operates 365 days a year and is the largest plant in the region. Big Cajun II is owned and operated by Louisiana Generating (LaGen), a wholly owned subsidiary of NRG. NRG co-owns unit 3 with Entergy, which owns a 42 percent share (or 241.5 net megawatts). Louisiana Generating serves all the electricity needs of Louisiana’s 11 electric cooperatives, which operate in 58 parishes serving 350,000 household customers.
BC II Unit 4 is designed to meet or exceed all existing environmental regulations. The $1 billion expansion project will employ the cleanest technology available, using the latest combustion and emission controls to provide low emission rates. Unit 4 will burn low sulfur coal, use a supercritical boiler that increases efficiency and requires less fuel to generate the same amount of electric power as traditional boilers, and employ Selective Catalytic Reduction (SCR) and flue gas scrubber technology. The project would also use the current existing infrastructure at Big Cajun II, including roads and water treatment facilities, minimizing any environmental impact to the surrounding area.
As part of the review process, NRG considered many alternative projects such as oil, natural gas, wind and hydroelectric power. However, from an environmental, reliability and cost standpoint, none offered more protection to the environment without unduly curtailing non-environmental benefits.
Additionally, the Company conducted an alternative sites evaluation, analyzing four potential locations within the state. The analysis considered key environmental and economic factors and determined that Big Cajun II was the most favorable site because of the facility’s existing infrastructure and the fact that the project expansion would create minimal disturbance to the environment.
According to an economic impact study conducted by leading economist Dr. James A. Richardson, improving the capacity and reliability of the electrity supply will benefit the entire state of Louisiana. In addition, the expansion project will directly benefit Pointe Coupee Parish with the creation of 40 permanent high-paying jobs at the plant. The ongoing operation of Big Cajun II Unit 4 is expected to increase the business activity in the state by $253 million annually and increase household earnings by $52 million per year.
The construction of the new Unit 4 will create substantial economical benefits, both direct and indirect, leading to additional business activity within the state of $345 million, approximately 1,100 new jobs, and household earnings of $102 million. In addition, the state and local governments will collect about $7.1 million in taxes as a result of the economic activity associated with the four-year construction project.
The Company currently is the largest single tax payer in the parish, contributing $5.2 million in taxes annually.
|
|
|
