# Programmatic Approach to

Retired Power Plants Andrea Danucalov Asset Manager Presented at Utility Economic Development Association (UEDA) 

## Panel on Redevelopment of Power Plants for Economic Development Purposes Charleston, SC 

## March 3, 2015

# Programmatic View for a Fleet of Retired Assets

• Exelon Overview • Retired Assets as a Fleet – not stand alone projects • Asset Management

− Programmatic approach to decommissioning and management of retired sites/assets

− Identify opportunities for retired sites – such as sale of assets, demolition, and/or redevelopment • Retired Site Opportunities

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# Exelon Power Portfolio

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# Programmatic Approach to Retired Sites • Determine Hold Costs

− Inspections, façade, Fire Marshall, building, pier, bridge, etc

− Building/Site maintenance

− FIN 47 Conditional Asset Retirement Obligation

− Security

− Environmental issues/permitting

− Taxes/Insurance • Community Issues:

− Tax support, zoning, community groups, etc. • Identify Risks

− Age of building, stacks, pier, bridges

− Security

− Environmental • Identify Value of Land and Existing Assets

− Land appraisals/Current Zoning/Historical Issues

− Work with Asset Optimization process to determine current value of assets where co - located with retired assets

− Possible power plant redevelopment short term/long term? • Review Existing Site Issues

− Utility and other easements or leases

− Utility Relocation/Separation Issues

− Local Ordinances • Identify possible future use scenarios:

− Hold, Demolish & Hold, Demolish & Sell, Sell As - Is, Redevelopment

5 Identify possible scenarios: Hold, Demolish & Hold, Demolish & Sell, Sell As - Is, Redevelopment

# Manage Retired Assets as a Fleet - Not Stand A Lone Projects

• Pennsylvania

− Chester Station

− Delaware Station • Original coal fired units

− Richmond Station • Original coal fired units

− Cromby Station

− Eddystone Units 1 and 2

− Barbadoes Generating Station

− Schuylkill Unit 1 • Texas

− Mountain Creek Units 1 – 3

− Handley Units 1 - 2 • Massachusetts

− New Boston

− Mystic Station Units 1 - 6 • Maryland • Gould Street – Units 1 and 2

− Riverside 1 - 3, 5 & 6 • Unit 4 retirement 2015

− Wildwood Beach

− Chestnut Hill (ash site)

− Rossville (ash site)

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# Why Is It Important To Have A Consistent Program?

• Multiple Stakeholders:

− Operations, Supply Chain, Project Management, Real Estate, Environmental, Security, Legal, Public Affairs, Accounting, Local Utility, and Corporate Development

− Existing Easements and/or Leases • Diverse Fleet

− The assets are complicated • Numerous Competing Vendors • Understand/Optimize Value – Economies of Scale • Proactive versus Reactive • Extract Lessons Learned • Plants will close – Need to be ready!

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# Retired Sites & Opportunities

• Eddystone Generating Station • Chester Generating Station • Delaware Generating Station • Richmond Generating Station • Barbadoes Island

8 Delaware Station 1920s Delaware Station Today

# Eddystone Rail Project • Located at Eddystone Generating Station near Philadelphia, PA will provide area refineries access to growing supplies of crude oil from U.S. producers. Light sweet crude oil is transported via rail from the Bakken region of North Dakota to the Eddystone Rail Company

− crude oil is transferred from rail to barge and delivered to nearby refineries along the Delaware River. • Placed in service 2014, the facility receives and delivers up to 80,000 barrels per day (BPD) to Philadelphia - area refineries.

− Enbridge Inc., through its indirect, U.S. subsidiary Enbridge Rail (Philadelphia) L.L.C., entered into an agreement with Canopy Prospecting, Inc. to jointly develop the Eddystone Rail Project. • Makes use of Eddystone’s existing infrastructure and provides lease income 9

# Chester Generating Station • In May, 2001, Exelon sold most of the property to Preferred Real Estate Investments (Preferred).

− Plant built in 1916, designed by architect John T. Windrim and out service in 1984

− Preferred converted the old coal - fired power plant into a high - tech office building. • The property is a Keystone Opportunity Zone. • The building has approximately 396,000 square feet of Class A office space. • In 2007, Preferred sold the property to the development firm, Bucinni and Pollin.

− In 2010, a new major league soccer stadium was constructed on the e east side of the property.

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# Delaware Generating Station • Located on the Delaware River near the Ben Franklin Bridge and Penn Treaty Park

− Community is retrofitting industrial buildings into commercial/residential use • Construction began in 1918 and completed 1923

− Designed by architect John Windrim who also designed the Franklin Institute • Houses 24 coal fired boilers and 6 turbines rated capacity 180,000 kilowatts

− Boiler House 2 converted to oil in 1950s – both boiler house 1 and 2 retired by 1969

− Auxiliary boiler and maintenance shop remained functional until 2005

− Switch house still in use • Units 7 and 8

− Oil fired units constructed 1950s total plant rated capacity 467,750 kilowatts

− Units 7 and 8 retired in 2005

− Demolished in 2008 along with above ground storage tanks • Current Use:

− PECO still utilizes Switch house/easement with utility

− Oil fired combustion turbines used for peak demand located on site

− Parking lease • Decision to sell site as is with easements for current turbines

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### Possible alternative use for site – commercial or mixed use

# Richmond Generating Station

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# Richmond Generating Station – circa 1925 and 2014

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# Richmond Generating Station – circa 1925 and Today

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# Richmond Generating Station

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# Richmond Generating Station • Richmond construction began in 1925 • Same architect as Delaware Generating Station, John Windrim • Originally coal fired, 16 boilers and 4 turbines with a rated capacity of 100,000 kilowatts and then increased to 483,000 kilowatts by 1954

− Switch house

− Pier, coal tower, conveyor

− Screen house, ash handling system • Converted to oil in 1970 and operation in building ceased 1985 • Switch house remained operational until 2003 • Current Use:

− Oil fired combustion turbines used for peak demand located on site

− Easements – PECO and Amtrak • Ongoing maintenance issues:

− Building, pier, stack – inspection and repair program

− Security issues • Located in the port with access to rail, major roads, and water

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### Currently working on alternative uses for the site.

# Barbadoes Generating Station

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### Generating Station built in early 1900s as shown in early 2000.

# Barbadoes Island – post demolition of Power Plant

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# Barbadoes Generating Station

• Approximately 83 acres on an island in the Schuylkill River just outside of Norristown, PA • In the 1800s, island used as a recreational spot for local residents • Coal fired power plant constructed in 1926 and converted to diesel in 1970s

− 450 foot span steel bridge built in 1940s for vehicular access • Shutdown in 1997 and used for a training center until 2008 • In 2008/2009, the plant was demolished • Floodplain issues – future development as a power plant not viable • Ongoing issues:

− Security

− Bridge maintenance

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### Working with a broker and marketing the site. Future use complicated for

access, location (floodplain), and existing easements.

# Conclusion/Next Steps • Managing sites individually is inefficient and may result in lost value • Historical and institutional knowledge of sites has been lost over time

− Files, drawings, photos have been discarded and/or damaged over time

− Employee retirement • Development of Programmatic Approach:

− Continuing to refine hold costs associated with various properties and identify gaps in needed data

− Evaluate options for all retired sites/assets

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# Questions

• Please contact:

Andrea Danucalov, Asset Manager andrea.danucalov@exeloncorp.com 610.765.5505

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