Constellation Energy’s Projects & Services Recognized as One of 50 Most Eco-Friendly Companies in Middle Tennessee
DES Expected To Save City More Than $200 Million by 2022
Constellation Energy’s Projects & Services Group (CEPS), which built and operates Nashville’s DES plant, is one of the "greenest" companies in Middle Tennessee, according to a statewide business publication.
The Nashville Post recently released its inaugural list of "Green Heroes," recognizing the 50 most eco-friendly companies in Middle Tennessee. Included on the list is CEPS, which established an office in Nashville in 2002 when it began construction on the Metro DES plant.
CEPS is nationally recognized for large-scale solar, biomass and geothermal energy projects. Working with Metro through the district energy system, CEPS supplies heating and cooling to more than 40 buildings in downtown Nashville, and is expected to save the city more than $200 million by 2022. The DES facility is supported by the sale of chilled water and steam to downtown buildings at no cost to taxpayers, and the system saves its energy customers approximately 10 percent as compared to alternatives.
"It’s an honor to be listed as one of the 50 most eco-friendly companies in Middle Tennessee," said John Schaffer, CEPS’ vice president of operations in Nashville.
"Although we have a national presence, we take pride in being a good corporate citizen in all of the communities we serve. Making this list will hopefully solidify our position as a leader in Middle Tennessee when it comes to financial and environmental solutions that can significantly reduce energy consumption and costs."
CEPS also recently expanded its operations in Middle Tennessee by building and operating an energy generation plant in Old Hickory to support Fiberweb’s manufacturing and R&D facility.
2009-2010 Annual Report
During the fiscal year July 1, 2009 through June 30, 2010, reliability for both steam and chilled water remained above 98%, and CEPS continued to have a perfect environmental record with no excursions or violations.
Nashville experienced unusually cold temperatures in January and February. As a result, several water mains ruptured throughout the city. Two of these breaks, in the downtown area, caused a high level of concern when water pressure dropped at the Metro Nashville District Energy System (DES), Energy Generation Facility (EGF) for a few hours early on Saturday morning, January 9th. Luckily, water service was not totally lost. When the leaks were isolated, water pressure returned to normal. Water from the leaks did enter the Energy Distribution System (EDS) tunnels. The water was immediately pumped out by CEPS maintenance personnel. No damage to the EDS was reported.
On May 1st and 2nd the city was deluged with rain. Total rainfall in the area was between 13-19 inches. As the water level rose in the Cumberland River, it was apparent that it was going to leave its banks. As a safety precaution, the decision was made to stop the production of steam on the afternoon of May 2nd. The river did leave its banks later that evening, reaching as far as 4th Avenue before cresting on May 3rd (see photographs in Exhibit 2 at end of this report). CEPS personnel began a system assessment on May 4th. The manholes along 1st Avenue were full of water; as well as, the Broadway Tunnel and a portion of the 4th Avenue Tunnel. When the river receded May 5th, crews worked around the clock to pump approximately 800,000 gallons of water from the EDS Tunnels. CEPS personnel worked diligently to restore steam service to the DES Customers as soon as possible. The chilled water system continued to operate throughout this ordeal, but the steam system was off for the first week of May. Currently, repair work continues on systems damaged as a result of the flood. CEPS managers are assisting Metro representatives with insurance and FEMA recovery efforts.
Michael Bradley
Michael Bradley Retires
Michael Bradley has served as the Metro liaison to the Nashville District Energy System for the past six years. After more than 40 years of service in state and local government, Bradley made the decision to retire from Metro Government effective March 31, 2010.
He was recently honored for his dedication to Nashville and its citizens. In a certificate of recognition, Mayor Karl Dean cited Bradley's contributions to the economic development of the downtown district through his work as liaison for the Metro Nashville District Energy System.
Bradley's past government experience includes work with the Metro Department of Children's Services, Metro Finance and Real Property Services, Tennessee Department of Mental Health, and the Tennessee Board of Probation and Parole, where he served as executive director.
Bradley plans to use his experience to continue his career in the nonprofit sector. He has been a valuable asset to district energy in Nashville, and we wish him well in his future endeavors.
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Tunnel Rehab Project Underway
A series of tunnels exist beneath the streets of Nashville through which NDES distributes steam, condensate and chilled water to customers. These tunnels were constructed 25+ years ago and were bored through solid rock. Due primarily to ground water seepage, numerous locations exist within the tunnels where rock in the upper portions of the tunnel has loosened and require repair. NDES will spend over $1,000,000 to make repairs and thus preserve the tunnel system integrity for many years to come.
Lower Natural Gas Prices for the Coming Winters
Lower fuel costs for this winter should result in good news for DES customers as well. Boilers at the DES plant burn natural gas to create steam. Lower national demand for natural gas from the industrial sector has led to lower gas prices in the comedies market this fall and winter. Natural gas is purchased for use at the DES plant using a combination of futures contracts and spot market pricing. The reduction in gas prices have allowed fuel to be purchased to cover a significant portion of this winter’s demand. Together with the anticipated low cost for the balance of the gas required should result in actual fuel costs to be two-thirds of the budgeted price for fuel.
As long as pricing continues to be weak, DES will continue purchasing natural gas on the spot market to maximize fuel savings. And because all savings are passed through to the DES customer, the variable cost portion of their bills should result in lower costs this winter.
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Deaderick Street Projects
During the fall of 2008, NDES became aware of the Department of Public Works’ Streetscape project for Deaderick Street. This Streetscape Project involves the refurbishment and revitalization of the Streetscape along Deaderick Street between 3rd Avenue North and 6th Avenue North. This Streetscape Project began construction during the fall of 2008 and the Department of Public Works notified all underground utilities that if work was required within the Deaerick Street boundaries, it need to take place right away and not impact the schedule of the Streetscape Project which was scheduled for completion during the summer of 2009. NDES had four projects that fell within the boundaries of the Streetscape Project:
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- The replacement of 350 feet of 6" condensate piping between Manhole 5 (at Union and 5th Avenue) and Manhole 9 (at Deaderick and 5th Avenue)
- The enlargement of Manhole 9 to allow the repositioning of manways out of the street and into the sidewalk
- The replacement of the 2" condensate service piping to the Citizen’s Plaza (on Deaderick between 4th and 5th Avenues) and repair of the existing steam piping
- The enlargement of the manway access to Manhole 13 (in the intersection of Deaderick and 3rd Avenue) to enable the insertion of a new 16" steam valve to replace a leaking valve.
These projects were completed in the first three months of 2009 so there was no negative impact to the Streetscape Project.
Ryman Auditorium Project
The condensate service line to the Ryman Auditorium from the main in 4th Avenue was in very poor condition and needed to be replaced. After analyzing options, it was determined that the replacement of this line could be cost effective. Therefore, a design for a replacement line was completed and put out to bid. The pricing received was within the payback parameters so construction began in April of 2009. With the Annual Country Music Festival beginning in early June, this line replacement needed to occur at a fast pace. Approximately 290 feet of new 2" was installed by the end of May of 2009 and there wasn’t any conflict with the Music Festival.
Nashville (DES) Underground
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The Nashville District Energy System Distribution System is comprised of four primary pipes; chilled water supply, chilled water return, steam supply and condensate return. These pipes account for approximately 84,000 feet of piping contained in four miles of direct-buried trenches or tunnel systems. There are three independent tunnel systems within the distribution system: the main tunnel system which is comprised of the 4th Avenue Tunnel, the 7th Avenue Tunnel and the Broadway Tunnel; the State Tunnel System and the AA Birch Tunnel.
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The underground tunnel piping and all of the manhole piping is inspected on a monthly basis to ensure timely repairs are made in order to maintain the overall system performance and efficiency.
The construction of these tunnel systems minimized the impact on traffic and businesses in the downtown area during the installation of the piping systems as opposed to a conventional open-trench, direct buried construction. In addition, the tunnel systems provide a means of inspecting and maintaining the piping systems on a regular basis that is not afforded by the direct buried method.
Customer Fixed Charges To Remain Flat for FY2010
Before the beginning of each fiscal, DES customer charges tied to the fixed costs for system operations are adjusted upward for inflation per the steam service agreement based on changes in the Consumer Price Index (CPI). As a result of the current CPI turning negative, there will be no upward adjustments of customer fixed charges for FY2010.
Tips for Customer Energy Savings
As you prepare your buildings for the approaching heating season, we would like to take this opportunity to present to you a few suggestions on saving energy whether heating or cooling. Energy conservation is beneficial for everyone. In addition to saving you money, energy conservation reduces the consumption of hydrocarbon-based fuels, and reduces the amount of greenhouse gas emissions. We hope the following list proves helpful to you this heating season.
DES Paying Dividends, Subsidies Continue to Shrink
The Metro Finance Department recently reported that the Metro DES facility provides the city with significant value. An audit released by the department found that the facility's value comes from declining subsidy and solid waste costs, combined with a more efficient energy source.
The Metro Nashville District Energy System (DES) provides energy for heating and/or air conditioning of 39 buildings in downtown Nashville.
The city has used district energy services for three decades, pioneering the waste-to-energy method of district energy in the early 1970s via the Nashville Thermal Transfer Corporation (Thermal).
The DES facility replaced the aged Thermal facility in December 2003 to provide its customers with more reliable, efficient, cost-effective and environmentally friendly heating and cooling.