In order to build and operate a new gas power plant in the region, incremental pipeline capacity may be required. This incremental pipeline capacity cost falls on the power plant. For power planning purposes, it is assumed that a new plant would reserve firm pipeline capacity for this additional fuel consumption. 

We estimate the charge for a firm pipeline reservation for incremental capacity for a new power plant on a $ per kW basis – this is an input to the Council’s resource cost model - 2021MicroFin.  

Eg = function(Hg,Rp,Cg)


Eg : estimated fixed fuel cost ($/kW) for plant type “g”

Hg : heat rate for plant type “g”

Cg : firm capacity for plant type “g”

Rp: firm pipeline reservation charge for incremental capacity on pipeline “p”

Fixed Fuel Cost Estimate by New Gas Plant

  Combined Cycle Combustion TurbineFrame Combustion TurbineReciprocating Engine
Plant Heat RateBtu/kWh   
Plant Firm CapacityMW463310187
Plant Location East SideEast SideEast Side
Pipeline Firm Reservation Charge*$/MMBtu0.250.250.25
Fixed Fuel Cost Estimate$/kW (2016$)11.9617.8116.38

* note – estimate based on GTN Pipeline