A 604-MW combined cycle thermal generating facility in Southwest Power Pool Regional Entity was not maximizing its production capacity under the facility’s offtake agreement.
CAMS leveraged its experience to negotiate a compressor upgrade and an approximately 8-year long-term service agreement (LTSA) extension with the OEM. The upgrade included replacing the Inlet Guide Vanes (IGVs) and first six stages of the compressor without having to modify the rotor or the flow path of the cylinder. This project provided the additional production capacity needed to maximize capacity revenue under the power purchase agreement (PPA) and reduce fuel costs due to the resulting lower heat rate.
The design modification improved the heat rate by greater than 1%, increased capacity by 5%, and reduced the LTSA hourly fee. These modifications and negotiated cost reductions generated an additional $50 million in total net benefit to the owner.