City Proposes Deal with Lakeland Mills for Energy System
By 250 News
Monday, June 07, 2010 08:46 PM
Prince George B.C.- The City of Prince George is prepared to enter into an agreement with Lakeland Mills to provide a District Energy System. Council has given the first three readings to the bylaw which sets up the agreement with Lakeland.
You will recall, there had been a previous plan for a stand alone energy system that would see bio mass burned to heat water which would be distributed by underground pipes to a variety of buildings. The cost of that facility was in the $12 to $18 million dollar range. Residents of the Millar Addition opposed the facility concerned it would add more particulate to the fragile airshed. While the City agreed to move the facility away from the downtown works yard to the north side of First Avenue, that did little to appease those concerned with adding more particulate matter to the air.
The new deal would see the City putting up the capital cost to set up equipment at Lakeland Mills . The equipment would include an electrostatic precipitator to reduce particulate matter. The reduction in particulate is the equivalent of putting more than 5 thousand woodstoves a year out of commission.
Lakeland would supply the bio mass, and the City would install pipes about 10 feet under the CN rail tracks to George Street, then jog west to the “Utilidor” which runs in the alley west of George Street south to the civic buildings.
The heat would be provided to the following:
· Ramada Hotel
· Plaza 400
· City Hall
· Library
· Coliseum
· Two Rivers Gallery
· Law Courts
· 4 seasons pool
· Coast Hotel
· Civic Centre
It is estimated the new system can reduce particulate by 100.7 tonnes per year. That includes reduced truck traffic as Lakeland says using this bio mass means they will not have to move it elsewhere.
The system will have a natural gas back up.
How much will it cost? The total cost of the project is $14,141,000.
Most of the funding is already approved in grants:
· Municipal Rural Infrastructure Fund grant : $ 5,332,000.
· Green Municipal Fund Grant: $ 461,000.
· Canada Works (gas tax) $ 4,366,000.
The City has already budgeted $295,000 for soft costs such as consultant and design fees, and will need to borrow $3,687,000. The debt associated with this system will be retired within 3 years.
The next step in the process is to have an environmental assessment, and Council’s approval this evening has triggered an “alternate Approval process”. Because this agreement with Lakeland Mills is longer than 5 years, the electorate must approve it. The alternate approval process means 10% of the eligible voters in Prince George will have to sign a notice that they oppose the agreement. That Alternate Approval process will end July 21st at 4 p.m. and requires signatures from 5,235 eligible voters in Prince George to stop the agreement from going forward.
The City will pay Lakeland $20.35 per mega watt hour used. City Hall uses about 800 mega watt hours per year, and while there is little difference in the cost of the new bio mass energy system and the current cost for natural gas, the City says the benefits come from having a secure price for energy for ten years ( at which time the agreement can be renegotiated), reduced maintenance on expensive boiler systems, reduced carbon taxes, it will sustain industry (Lakeland) and will create a new source of non-tax revenues for the City from other building owners who buy into the system.
It is believed the new energy system will be an attraction for those interested in developing in the downtown core because of the reduced space needed for a heat exchanger and the secured price for energy.
It is expected the new system will be ready for operation in 2012.
Councillor Don Bassermann hinted he's heard some excitement in the community from potential users of the system who are eager to see how this will work.
Bob Radloff, who is overseeing the district energy system project says the system could be expanded by 30% without increasing the capital cost.
Previous Story - Next Story
Return to Home
Oddly enought none of the nay sayers haven`t jumped in yet...must be doin thar research.