Constellation announced that it has signed an agreement with the City of Los Angeles to design, build and operate a 27-megawatt (MW) renewable energy power plant at L.A. Sanitation's Hyperion Treatment Plant.
Hyperion is among the 10 largest wastewater treatment facilities in the world, according to a 2012 Engineering News Record report. The sewage treatment process at Hyperion generates a class 1 renewable fuel known as digester gas. The new power plant, which will cost approximately $130 million to construct, will use the digester gas produced at Hyperion as its primary fuel source. The power plant will produce steam and electricity that will be used to operate Hyperion's treatment operations.
'This state-of-the-art facility will reduce emissions at the Hyperion plant and secure for our city a new energy source that is reliable, efficient and sustainable,' said Traci Minamide, L.A. Sanitation's chief operating officer.
'Constellation is uniquely qualified to develop and operate this integrated, self-sustaining solution for the City of Los Angeles and L.A. Sanitation,' said Gary Fromer, senior vice president, energy management programs, Constellation. 'Our objective is to deliver and operate for the city a power plant that will become a nationwide model for reliable, cost-efficient, sustainable power solutions at wastewater treatment facilities.'
L.A. Sanitation selected Constellation as the project developer after a lengthy competitive bidding process. Constellation and its subcontractors will develop, construct and operate the co-generation facility for 10 years, with an option to extend the agreement for five additional years. Commercial operation of the Hyperion co-generation facility is expected by the end of 2016.
The Constellation family of retail electricity and natural gas suppliers, are subsidiaries of Exelon Corp., and are leading competitive retail suppliers of power, natural gas and energy products and services for homes and businesses across the continental United States. Constellation's retail businesses serve more than 100,000 business and public sector customers, including more than two-thirds of the Fortune 100, and nearly one million residential customers.
Exelon Corporation (NYSE: EXC) is the nation's leading competitive energy provider, with 2012 revenues of approximately $23.5 billion. Headquartered in Chicago, Exelon has operations and business activities in 47 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with approximately 35,000 megawatts of owned capacity comprising one of the nation's cleanest and lowest-cost power generation fleets. The company's Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and approximately 1 million residential customers. Exelon's utilities deliver electricity and natural gas to more than 6.6 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO).
About L.A. Sanitation
As the lead agency for the City's environmental programs and initiatives, L.A. Sanitation protects public health and the environment through the administration and management of three program areas: Clean Water (Wastewater), Solid Resources (Solid Waste Management) and Watershed Protection (Stormwater). These infrastructure programs collect, treat, recycle, and dispose the solid and liquid waste generated by the nation's second largest city of more than four million residents. Through these essential public service programs, Sanitation delivers a triple bottom line of economic, environmental, and social benefits that sustain the quality of life in Los Angeles. For more information, please visit www.lacitysan.org.