HomeMy WebLinkAbout91-0925 Northern Illinois Gas 9)- o9a5
RESOLUTION
ACCEPTING THE PROPOSAL OF NORTHERN ILLINOIS GAS
FOR FUEL AND DELIVERIES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, be and is hereby
authorized and directed to accept the proposal dated July 10,
1991 on behalf of the City of Elgin of Northern Illinois Gas
for compressed natural gas and deliveries, a copy of which is
attached hereto and made a part hereof by reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: September 25, 1991
Adopted: September 25, 1991
Omnibus Vote: Yeas 6 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
�� . ;�ti
NORTHERN ILLINOIS GAS• ,
One of the NICOR companies
P.O.Box 190 Aurora,Illinois 60507-0190 Phone 708 983-8888
Address Reply to Company at:
300 West Terra Cotta Avenue
Crystal Lake, IL 60014
815/455-0271 rv, A ! / 4 I
July 10, 1991
Mr. Robert O. Maim
Assistant City Manager
City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
Dear Bob:
We appreciate the opportunity to work with you in the evaluation of
compressed natural gas as an alternate fuel for the City of Elgin vehicles.
This letter will confirm that Northern Illinois Gas intends to provide a
CNG tank trailer to be used for refueling the City of Elgins test program
vehicles. The trailer has a usable capacity of approximately 54 equivalent
gallons. Northern Illinois Gas personnel will transport and refill the
trailer as required to conduct the evaluation. It is agreed that the test
period will last four months and that there will be no charge to the city for
use of the trailer. However, there will be a pickup and delivery charge
to transport the trailer between Naperville and Elgin. The fee for this will
be $25.00 per hour Portal-to-Portal. Additionally, the natural gas used will
be charged to the city in accordance with our Rate 10 plus our gas supply
charge which currently is 23.24 cents per therm. A copy of Rate 10 is
enclosed.
Also, Northern Illinois Gas will assist the City of Elgin in conducting
economic analysis of the program and offer technical support in the
conversion of the test vehicles.
Please feel free to contact me if you have any questions or concerns
regarding this project.
Sincerely,
Scot F. Koif
General Engineer
cc: F. Blazek
D. Grote
T. Lindsay
enclosure
KRliti N ILLINJIS SCiEIUE G ILL. C. C. No. 9
(Gas) 22rd Revised Sheet No. 15.10
GAS (Canceling 20th Revised
Shet- No. 15.10 Effective
C,pA.ly February 14, 1968)
RATE 10. CaPRESSED NATLPAL GAS
Availability.
This rate shall apply to any Customer for the conversion of natural gas to compressed natural gas (CN;), for use in
vehicles operated on the public roads.
*Charges shall be the sum of (a). (b) and (c).
(a) hbnthly Customer Charge
$30.00 per month.
(b) Distribution Charge
4.064 per therm for all therms supplied in the month.
(c) Gas Supply Cost
The anent (Factor GC) per them supplied in the month as determined in accordance with the Company's Standard
Rider 6, Gas Supply Cost.
The Qlstomer shall also reimburse the Company for all taxes payable by the Company to governmental bodies on the sale of
natural gas for use as CMG.
Miniwn Charge.
The mininm monthly bill shall be the Monthly Customer Charge.
metering.
All gas used hereunder shall be separately metered by the Company.
Term of Contract.
The initial term of contract hereunder shall be one year.
The initial term shall comrence when the Company begins to supply gas haande and, after the expiration of such
initial tern, the contract shall be automatically renewed each year for a period of one year. The Customer shall have
the right to terminate service under the contract at the end of any month on 30 days' written notice to the Company;
provided, however, that in the event of termination, all amounts due the Company shall forthwith be paid, including
the Monthly Custom- Charge for the initial term of contract, and provided, further, that temporary or seasonal
service shall be subject to the provisions of the Company's Temporary Gas Service rider.
•
Interfering Equipment.
Whenever any of the Customer's utilization equipment, such as compressors, has characteristics which will cause
interference with service to any other customer a- interfere with proper metering, suitable facilities shall be
provided at the Customer's expense to preclude such interference.
General.
The Schedule of which this rate is a part includes certain general Terns and Conditions and Standard Rides. Service
ha-eurde- is subject to these Terns and Conditions and the Standard Riders which are listed as applicable to this
rate.
Filed with the Illinois Connate Commission on August 2, 1989 Date Effective, September 1, 1969,
Issued pursuant to Order of the Illinois Commerce Commission Issued By M. E. Halsey
entered June 21, 1989 in Oncket No. 88-0277 Vice President
Items in which there are charges are Post Office Box 190
preceded by asterisks (*) Aurora, Illinois 60507
; 11.
En
�OfEtc Agenda Item No.
n ��
July 17, 1991
MEMORANDUM
TO: Mayor and Members of the City Council
FROM: City Manager
SUBJECT: Alternate Fuels
PURPOSE: The intent herein is to solicit Council approval to
proceed with a pilot program for the use of Compressed Natural
Gas (CNG) .
BACKGROUND: We are in an era that promises stricter clean air
rules, especially regarding vehicle air quality standards.
Amendments to the Clean Air Act suggest that 30% of all govern-
mental fleets be converted to an alternate fuel by 1995 .
The intent of these conversions will be to reduce air
pollution, reduce dependency on foreign oil and lower fuel
costs . The staff Alternate Fuels Task Force has researched
various options such as Methanol, Propane, Ethanol and Com-
pressed Natural Gas (CNG) . See attached memo dated 12-14-90
from Terry Podzimek, Garage Supervisor.
The task force has narrowed the list of choices to CNG for
numerous reasons such as price, availability, less pollution
and safety. Accordingly, options have been considered whereby
a pilot program can be established as a test sample for the
entire City fleet of roughly 220 vehicles .
Northern Illinois Gas (NI-Gas) was contacted and several
meetings have transpired to date relative to supply and filling
capabilities without the need of a compressor station. The two
closest CNG equipment suppliers were contacted regarding vehi-
cle conversions and service. During preliminary discussions
with both suppliers it became readily apparent that Automotive
Natural Gas, Inc. (ANGI ) in Milton, Wisconsin was much more
interested in assisting the task force in developing the re-
quirements for a pilot program than the other firm. In addi-
tion to being responsive to City informational needs, ANGI is
experienced in converting vehicles to CNG and has performed
several conversions for NI-Gas .
r ,
December 14, 1990
MEMORANDUM
TO: Larry Rice, City Manager
FROM: Terry Podzimek, Garage Manager
SUBJECT: -Alternate Fuel Evaluation And Comparison
PURPOSE: The intent of this memorandum is to provide information
relative to the four (4) most popular alternate fuels and provide
cost estimates for same.
BACKGROUND: The four (4) fuels which will be analyzed are as
follows:
1. Compressed Natural Gas (C.N.G. )
2. Methanol
3. Propane - Liquified Petroleum Gas (L.P.G. )
4. Ethanol
. The pros and cons of each fuel will be discussed. Each fuel
demonstrates various positive and negative characteristics.
Approximate costs for conversions and cost/gallon and cost/mile
factors will be discussed.
The following characteristics are as compared to gasoline in a
non-dedicated engine.
•
A. COMPRESSED NATURAL GAS (C.N.G. )
1. ECONOMIC COMPETITIVENESS: Current cost for a gallon of
gasoline is $1.22. Estimated cost for an equivalent gallon of
natural gas is $. 62 - $.70.
2. AVAILABILITY: Surplus is estimated at a 35 - 50 year supply.
Technology improvements could drastically increase that estimate.
3. REPRESENTATIVE TYPE OF FLEET: Light and heavy duty. Central
refueling location ideal.
4. EXHAUST EMMISIONS: Nitrogen Oxides (NOx) - Same or higher
Hydro carbons (HC) - Same or higher
Carbon Monoxide (CO) - Lower
Natural gas vehicles have no evaporative or running loss
emissions and a small amount of refueling emissions. In diesel
engines particulate matter (soot) is drastically reduced. The
E.P.A. currently has no emissions standards for N.G.V. "s.
•
Alternate Fuels
Page 3
the risk of accidental ignition. The methods of refueling are as
follows:
A. Outdoor Fast Fuel
B. Outdoor Time Fuel
C. Indoor Fast Fuel
D. Indoor Time Fuel
Time fuel is when vehicles are connected to a central hose bank
at the end of the day and slowly refueled overnight. This method
eliminates the need for auxiliary storage tanks at the refueling
site, but still requires a compressor. This method usually takes
eight (8) to ten (10) hours.
Fast fuel is when the vehicle pulls up to a dispenser and refuels
in three (3) to five (5) minutes, very much like an ordinary
gasoline dispenser. This method also requires a compressor (to
compress the natural gas to 3500 psi) and auxiliary storage tanks
to supply already compressed gas for immediate refueling.
11. REFUELING INFRASTRUCTURE: Commercial refueling stations are in
use through out the country. Currently there are 260 locations in
36 states with additional stations in the planning stages. One is
being considered in Elgin. To purchase a refueling station for
fueling city vehicles the cost is estimated at $42,000. This
figure is an approximate cost dependent upon the number of
vehicles to be fueled at once and the number of convenience •and
safety options specified. There are more than 30,000 N.G.V"s in
operation in the United States, with over 500,000 in service world
wide.
12. RETURN INVESTMENT: It is estimated on a 200 vehicle fleet
conversion, a five (5) percent return of the initial investment
could be realized in approximately three years.
B. METHANOL
1. ECONOMIC COMPETITIVENESS: Current cost for a gallon of gasoline
is $1.22 per gallon. Estimated cost for a gallon of methanol is
$1.57.
2. AVAILABILITY: Limited - Good future potential. Additional
Methanol plants are entering production worldwide.
3. REPRESENTATIVE TYPE OF FLEET: Light and heavy duty with
central refueling location.
4. EXHAUST EMISSIONS: Nitrogen Oxides (NOx) - Same or higher
Hydro Carbons (HC) - Same or lower
Carbon Monoxide (CO) - Lower
Methanol emissions are very similiar to gasoline emissions.
E.P.A. emission standards which take affect in 1991 are
Alternate Fuels
Page 5
C. PROPANE - LIQUIFIED PETROLEUM GAS (L_P_G. )
1. ECONOMIC COMPETITIVENESS: Current city cost for a gallon of
gasoline is $1.22 per gallon. Estimated cost for a equivalent
gallon of propane is $1.75. Due to the fact propane is a by-
product of crude oil refining, the cost of propane fluctuates with
the cost of crude oil.
2. AVAILABILITY: Propane is the nations fourth largest energy
source. It is produced by 250 gas and oil companies. Production
estimates are predicted to be very good with supplies adequate
into the year 2004. Eighty five percent of all propane used in the
United `States is produced domestically thus reducing foreign
dependancy. The remaining 15 percent is produced in Canada and
Mexico.
•
3. REPRESENTATIVE TYPE QF FLEET: Light and Medium Duty. Central
refueling location.
4. EXHAUST EMISSIONS: Nitrogen Oxides (N0x) - Lower
Hydro Carbons (HC) - Lower
Carbon Monoxide (CO) - Lower
Propane vehicles have no evaporative emissions due to the closed
fuel system. Propane reduces emissions in vehicles both with and
without emission controls. Currently the E.P.A. does not have
emission standards for propane vehicles.
5. FUEL VOLUME: One and one half times the volume of propane is
required to drive the same distance as a gallon of gasoline.
6. FUEL STORAGE CONTAINER WEIGHT: Since propane is not stored
under extremely high pressures (350 psi) fuel storage container
weight is only slightly heavier than a comparable gasoline tank. A
typical propane tank would compare in weight to a typical diesel
fuel tank. -
7. OPERATING CHARACTERISTICS:
A. Driving Range: Approximately 10 percent less
than gasoline.
B. Performance: Five to Fifteen percent power loss.
C. Cold Weather Starts: Better than gasoline. Propane
enters the engine as a gas thus eliminating vaporizing
problems, resulting in better starts. A well tuned
engine is necessary to fully realize the benefits.
D. Cold Engine Driveability: Better than gasoline - see
above.
E. Knock Resistance: Better than gasoline due to the 110
octane rating.
8. MAINTENANCE CHARACTERISTICS:
A. Engine wear: Better than gasoline due to clean burning
properties of propane. Carbon buildup is substantially
Alternate Fuels
Page 7
Carbon Monoxide (CO) - Lower
Ethanol emissions are very similiar to gasoline emissions. E.P.A.
emission standards are comparable to a conventionally fueled
vehicle.
5. FUEL VOLUME: One and one half times the volume of ethanol is
required to equal that of gasoline.
6. FUEL STORAGE CONTAINER WEIGHT: The same tank used for gasoline
or diesel can be used for ethanol without any modifications,
although to achieve the same driving range a larger tank is
needed, thus increasing the weight.
7. OPERATING CHARACTERISTICS:
A. Driving Range: Approximately 10 to 15 percent less
than gasoline.
B. Performance:, Power gain, but less than methanol.
C. Cold Weather Starts: Worse than gasoline - usually
vehicles are switched to ethanol once running.
D. Cold Engine Driveability: Worse than gasoline due to
poor vaporizing characteristics of ethanol.
E. Knock Resistance: Better than gasoline due to 110
octane rating.
8. MAINTENANCE CHARACTERISTICS:
A. Engine Wear: Worse than gasoline. Ethanol lacks the
lubricating properties of gasoline or diesel.
B. Maintenance Costs: Worse than gasoline.
9. CONVERSION COSTS:
A. Cars and Pick-up Trucks - $500.00
B. Large trucks and buses - $1000.00
10. REFUELING PROCEDURE: Refueling of vehicles is identical to
that of gasoline or diesel fueled vehicles. Ethanol can be stored
in underground storage tanks.
11. REFUELING INFRASTRUCTURE: The existing infrastructure used for
gasoline and diesel can be used for ethanol. Currently ethanol is
used in gasoline in small quantities (ten percent) as an
additive.
12. RETURN INVESTMENT: Unknown at this time.
SUMMARY COMPARISON INFORMATION
The following chart represent a summary comparison of the above
discussed fuels. Additional areas are compared. The rating system
is on a scale of 0 to 3 (0 signifying no concern, 3 high concern) .
Alternate Fuels
Page 9
initially, payback potential is greatly increased.
All four alternate fuels demonstrate decreases in exhaust
emissions. Full performance and emission benefits cannot be
realized until the major automobile manufacturers develop a
dedicated (designed specifically for an alternate fuel) engine.
When this happens the full potential of a high octane fuel will
be seen. The power loss, driving range, and mileage problems will
be decreased or eliminated and exhaust emissions should be
reduced even further.
CONCLUSION: The Clean Air Act was signed November 15, 1990. It
includes mandatory fleet conversion for government fleets. An
incrementing percentage of all fleets (with ten or more vehicles
up to 26,000 lb's G.V.W. ) will be required to be converted to an
alternate fuel starting in 1998, and continuing thereafter.
It is suggested the city proceed with C.N.G. as an alternate fuel
source. The following alternatives should be considered:
A. Convert all equipment.
B. Convert a few pieces to analyze benefits.
C. Invest in a refueling station:
D. Rely on outside refueling source.
Contact should be made with Northern Illinois Gas to ask for their
aassistance in preparing a pilot program for fleet conversion.
TP/tp
cc: Robert Malm
Gary Miller
700/ALTERNATE