GRDA Board approves plan for future generation resources

GRDA Directors Greg Grodhaus (left) and Chris Meyers take part in the August 14 meeting of the GRDA Board of Directors. During the meeting, the board voted to proceed with a plan to develop a 400 mega-watt combined cycle gas generation facility, to be constructed on an existing site -- adjacent to the GRDA Coal Fired Complex in Chouteau -- as part of GRDA’s future generation plan.

GRDA Directors Greg Grodhaus (left) and Chris Meyers take part in the August 14 meeting of the GRDA Board of Directors. During the meeting, the board voted to proceed with a plan to develop a 400 mega-watt combined cycle gas generation facility, to be constructed on an existing site — adjacent to the GRDA Coal Fired Complex in Chouteau — as part of GRDA’s future generation plan.

Vinita – After many months of research and discussions, the Grand River Dam Authority Board of Directors has taken a major step towards addressing the utility’s coming generation needs. During its August 14 meeting, the board gave its approval to an electric generation resource plan designed to meet both the growing demand of its large Oklahoma customer base as well as new regulations from the Environmental Protection Agency (EPA).

“We do have some very real deadlines ahead of us in regards to EPA regulations and customer demands,” said Chief Executive Officer/Director of Investments Dan Sullivan. “I want to commend our board for giving so much time and effort to this issue already and for the decision today that allows GRDA to move towards these important goals.”

The plan would allow for an increase in both GRDA’s gas and wind generation capacity. Together, that capacity would eventually replace the output from Unit 1 at the GRDA Coal Fired Complex. That unit has been in operation since 1982 and has paired with Unit 2 at the facility to provide the bulk of GRDA’s electric generation for three decades.

“Today, approximately 45 percent of GRDA’s total generation capacity comes from our coal units,” said Sullivan. “However, as this plan is put into place and we are able to add wind and gas generation, coal will go to about 17 percent.”

Sullivan said the remaining coal generation will come from Unit 2 following a project to retrofit/upgrade its air quality control equipment. In operation since 1985, the unit is already equipped with the state’s only flue-gas desulfurization (scrubber) to remove sulfur emissions following the coal combustion process. The scrubber will remain in service through the upgrade effort and GRDA will convert other existing air quality control equipment to meet the latest EPA standards. The deadline for those standards is April 2016 though GRDA is planning to have these upgrades completed by December 2015.
As its reliance on coal goes down, GRDA will be able to bring greater balance to a generation portfolio that already provides a beneficial and diverse mix of resources. Though hydroelectric output will not change significantly with the new plan, gas generation will go from 25 percent of total capacity to 45 percent. GRDA also plans to increase its wind generation from approximately 3 percent of total capacity today to 13 percent in the future.

“This resource mix really gives GRDA the options it needs to maintain reliability and efficiently, and that’s in the best interest of our ratepayers,” said Sullivan.
Along with that resource mix, GRDA will also work with its customers to develop new demand management programs and incentives, to help slow the need for even more generation resources in the future.

“There may be things we can do to shift those periods of the day when electric usage is the highest,” said Sullivan. “By implementing financial incentives for electric demand management, and working with our customers to shift usage patterns where possible, we will see this future resource mix work efficiently and reliably for many years to come.”

Headquartered in Vinita, GRDA is Oklahoma’s state-owned electric utility; fully funded by revenues from electric and water sales instead of taxes. GRDA’s low-cost, reliable; electricity – produced by that diverse and beneficial mixture of coal, hydroelectric, gas and wind resources – touches 75 of 77 counties in the state. At no cost to Oklahoma taxpayers, GRDA also manages 70,000 surface acres of lakes in the state, including Grand Lake, Lake Hudson and the W.R. Holway Reservoir.

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