Nevada Cogeneration Associates No. 2
Owned by Panamint Capital
Operated by IHI Power Services
85-MW, gas-fired, 3 × 1 LM2500-powered combined-cycle cogeneration facility located in Las Vegas, NV
Plant manager: Chris Benkman
Background. Nevada Cogeneration Associates 2 (NCA2) shifted from a baseload operating model after a long-term power purchase agreement ended, and the O&M team targeted auxiliary loads that did not need “full-size” equipment when the plant was not generating.
Challenge. When the plant was offline or not dispatched, compressed-air demand typically dropped to essentials: instrument air, minimal service air, and system support. However, maintaining availability of dry, reliable air remained non-negotiable because it directly supported controls and device reliability.
The challenge for the NCA2 team was to meet these reduced needs without:
- Operating large compressors at low load and poor efficiency.
- Accepting higher cycling and wear on major assets.
- Compromising instrument-air quality, especially moisture control.
Solution. Plant staff developed a project to install a smaller air compressor to support the reduced compressed-air requirement during non-generation periods, allowing the larger compressors to remain off when their capacity was not needed. The project became known onsite as “JT’s Compressor,” recognizing John Thompson’s role in planning and installation.
A key decision was to execute the work internally. After preliminary planning, the team determined site personnel could complete both design and installation in-house, reducing outside labor cost and schedule duration.
Ownership approval was obtained after the planning team presented the long-term savings case. The installation was completed in just under a month while the plant continued normal operations.
Elements that contributed to the short cycle time and smooth implementation included:
- Clear definition of the operating envelope: the compressor was intended primarily for plant-down or non-dispatch conditions.
- Internal design and installation, which compressed schedule and avoided contractor mobilization delays.
- Early alignment with ownership on economics and reliability benefits, which supported prompt approval.
Results. The plant reported an energy-cost savings of $11 per hour when the smaller compressor was used in place of the larger units. With typical operation of about four months per year, or approximately 2800 hours, the annual savings were about $30,000. The team also noted a simple payback of roughly 135 days based on the $11 per hour operating-cost delta and the runtime profile.
Since early 2024, JT’s Compressor operated regularly during plant-down periods, and the team reported an improved overall operating profile even with limited use to offline windows.
Project participants: Holly Adair, Michael Smith, Cannon Anderson, Peter Phelps, and Chris Benkman.
