Analysis of Peaking Alternatives Study

The Greenville Utilities Commission (GUC) owns and operates a municipal gas distribution system in North Carolina. Historically, GUC has purchased its full requirements from the North Carolina Natural Gas, Co. (NCNG). Over the past few years, GUC has experienced significant growth in its peak day demand, thus exceeding the Maximum Daily Quantity (MDQ) of its firm supply agreement with NCNG. A study was performed by members of the Firm to project GUC’s future gas demand and to identify and analyze potential alternatives for meeting GUC’s peak demands in future years. The study concluded that the installation of a propane-air peaking facility would only be of limited near term value to meeting GUC’s peaking capacity requirements, and though continued utilization of firm contractual supply could be used to meet the utility’s long term peaking requirements, this option was found to be inefficient owing to the fact that GUC exhibits a very low annual load factor. Development of either a satellite or liquefaction LNG peaking facility was found to be the best alternative to meeting GUC’s long term peak capacity requirements.

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