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HomeMy WebLinkAboutTazimina River Hydroelectric Project Feasibility Study 1991Engineering Services Iliamna, Alaska Tazimina River Hydroelectric Project Feasibility Study Iliamna Newhalen Nondalton Electric Co-Op (INNEC) May, 1991 IiR HDR Engineering , Inc . ! TAZIMIIIA R.IVD BYDR.OEI.ECTR.IC PR.O.JECT I'EASIBILITY STUDY BR.I 047 DATI! ISSUED TO HIGHSIIIITH •2-222 ,, I TAZIMINA RIVER HYDROELECTRIC PROJECT FEASIBILITY STUDY Prepared for: Diamna-Newhalen-Nondalton Electrical Co-Op (INNEC) Box 206 IJiamna, Alaska 99606 Prepared by: HDR Engineering, Inc. 4446 Business Park Boulevard Building B Anchorage, Alaska 99503 May 1991 TABLE OF CONTENTS SUMMARY ........................................................... 1 1.0 INTRODUCTIO.N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 SCOPE OF THIS REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 PROJECT HISTORY AND PREVIOUS STUDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.0 PROJECT AREA ............ ·. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 PROJECT LOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.2 PROJECT DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3.0 PROJECT COST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4.0 LOAD FORECAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4.1 EXISTING GENERATION CAPACITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4.2 LOAD FORECAST, MEDIUM GROWTH SCENARIO . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4.3 LOAD FORECAST, HIGH GROWTH SCENARIO . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5.0 FUEL COST ESCALATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6.0 PROJECT ENERGY PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7.0 ECONOMIC ANALYSIS ................................................ 10 8.0 RATE IMPACT ANALYSIS .............................................. 14 9.0 POWER COST EQUALIZATION ANALYSIS ................................... 15 9.1 HISTORY AND RATE DETERMINATION ................................. 15 9.2 EFFECT OF HYDROELECTRIC PROJECT ON PCE . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 10.0 CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 11.0 BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 APPENDICES APPENDICES 1. DETAILED COST ESTIMATE 2. RATE IMPACT SPREADSHEET 3. PRESENT WORTH OF AVOIDED PCE PAYMENTS SPREADSHEET N:072S0.001:1:D8 LIST OF FIGURES FIGURE Following Page 1. COMMUNITY LOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. PROJECT LOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3. SENSITIVITY ANALYSIS OF 30-YEAR ECONOMIC ANALYSIS . . . . . . . . . . . . . . . . . 13 4. COST PER kWh, DIESEL VS HYDROELECTRIC GENERATION .................. 14 N:07250.00l :l:D8 LIST OF TABLES TABLE 1. CONSTRUCTION COST ESTIMATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2. ELECTRICAL DEMAND, 1986 THROUGH 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3. ADDITIONAL INNEC LOAD GROWTH FROM COMINCO MINE PROJECT . . . . . . . . . . 6 4. PRICES PAID FOR DIESEL FUEL BY INNEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5. 30-YEAR ECONOMIC ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . {following) 12 6. 30-YEAR ECONOMIC ANALYSIS SENSITIVITY ANALYSIS . . . . . . . . . . . . . . . . . . . . 13 7. PRESENT WORTH OF AVOIDED PCE PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 17 N :07250.001:1 :D8 SUMl\fARY INTRODUCTION An economic analysis conducted in 1987 by Stone and Webster Engineering, Inc. concluded that a 700 kW hydroelectric project on the Tazimina River was economically feasible, with a cost-to- cost ratio of 1.12 when compared to diesel generation. This report updates the economic analysis for the Tazimina Hydroelectric Project. The construction cost was updated to reflect 1991 costs. Utility load growth was updated based upon data collected since 1986 and fuel cost escalation was updated based upon recent forecasts. This report analyzes the project's effect on the cost for power for Iliamna-Newhalen-Nondalton Electrical Co-Op (INNEC) customers, and the project's effect on State of Alaska power cost equalization payments to INNEC. PROJECT COST The cost to construct the Tazimina Hydroelectric Project is $9.4 million in 1991 dollars. This includes a contingency of ten percent, design and construction management, interest during construction, and the cost of a replacement transmission cable. LOAD FORECAST Based on data from 1986 to 1990, an average load growth for INNEC is 3.6 percent per year. Additional load growth due to a future mine project could range up to 18 percent during the three-year period when the mine is opened. FUEL COST FORECAST Diesel fuel is forecast to increase at two percent above inflation. PROJECT ENERGY PRODUCTION The project size designed by Stone and Webster Engineering has an estimated production maximum of 5,200,000 kWh per year. This project size will accommodate the needs of the utility through the year 2015, assuming a moderate growth scenario and the use of diesel generation for peaking load capacity. The water needed for upsizing of the project to produce a greater amount of kWh per year appears to be available but analysis of various installed capacities was not within the scope of this report. N:07250.00l:l:D8 ECONOMIC ANALYSIS The present value cost-to-cost ratio of the hydroelectric project when compared to diesel generation over a 30-year economic analysis period is 1.32. Additional growth from the Cominco project increases this ratio to 1.36. RATE IMPACT ANALYSIS In 1995, the year the project comes on-line, the predicted cost for hydroelectric generated power is $0.51 per kWh (1900 dollars) while the cost for diesel generated power is $0.37 per kWh (1990 dollars). For the cost of hydropower to be comparable to the diesel alternative in the initial six years after the project comes on-line, project costs would have to be reduced by $4 million. If a grant from the State of Alaska or other sources was not used to eliminate this rate shock, it would be substantially paid for by the PCE program. This rates shock would, however, affect the 38 percent of INNEC sales which are not eligible for PCE subsidy. POWER COST EQUALIZATION ANALYSIS If the State of Alaska were to provide a grant in the amount of $4 million, it could recoup these initial grant monies through avoided PCE payments in 17 to 20 years. N:07250.00l:l :08 2 TAZIMINA HYDROELECTRIC PROJECT FEASIBILITY STUDY SUMMARY MEDIUM LOAD HIGH LOAD GROWTH1 GROWTH2 Present value cost-to-cost ratio for 1.32 1.36 hydroelectric generation compared to diesel generation over a 30-year analysis period Estimated project cost (1990 dollars) $9.4 million $9.4 million Project cost for zero rate shock (1990 $5.4 million $5. 8 million dollars) Reduction in project cost needed for zero $4.0 million $3.6 million rate shock (1990 dollars) Year avoided PCE payments equal initial project grant3 : With 0.0% real discount rate4 2011 (17 years) 2008 (14 years) With 3.0% real discount rate5 2014 (20 years) 2010 (16 years) Avoided PCE payments at 30 years 3 With 0.0% real discount rate4 $13.6 million $14.9 million With 3.0% real discount rate5 $ 7. 8 million $ 8. 7 million NOTES: 1 3.6% grov..th rate 2 30% Cominco mine employees served by INNEC 3 Assumes PCE program continuing in its present form for entire pe.riod of analysis 4 Inflation = 5%, Interest 5% 5 Inflation = 5%, Interest = 8% N :07250.001:1 :D8 3 1.0 INTRODUCTION 1.1 SCOPE OF miS REPORT The Iliamna-Newhalen-Nondalton Electrical Co-Op (INNEC) contracted HDR Engineering, Inc. (HDR) to review the Tazimina River Hydroelectric Project Feasibility Report completed by Stone and Webster Engineering Inc. in 1987. The Stone and Webster project design was to be used without changes and no additional data. collection was authorized. HDR updated project costs and investigated the project feasibility using current and projected electrical load information, current diesel fuel costs, and updated project costs. Further, an analysis was prepared showing the ways in which a grant for the project would affect State of Alaska Power Cost Equalization (PCE) payments to INNEC. All analyses were completed for two scenarios: a medium growth scenario which assumes continued growth of the area based upon past records; and a high growth scenario which assumed the development of a major mine project in the area and a resulting growth in population. Neither scenario includes the possibility of interconnection of the neighboring villages of Port Alsworth, Pedro Bay, and Kokhanak to INNEC. 1.2 PROJECT HISTORY AND PREVIOUS STUDIES A detailed feasibility study for a hydroelectric project on the Tazimina River was completed in 1987 by Stone and Webster Inc. for the Alaska Energy Authority (AEA) (9). A site at Tazimina Falls was identified and various project alternatives for this site were evaluated. A preferred alternative was chosen as the most economical, with a present worth cost-to-cost ratio of 1.12 for a medium growth scenario and 1.36 for a high growth scenario. The high growth scenario was based on the additional load growth from a proposed subdivision project at Keyes Point. The economic analysis of this project was reviewed and updated in August, 1990, by AEA (1). N:07250.00l:l:D8 1 2.0 PROJECT AREA 2.1 PROJECT LOCATION INNEC primarily serves the communities of Iliamna, Newhalen, and Nondalton. These communities are located on or near the north shore of Lake Iliamna, approximately 175 miles southwest of Anchorage (Figure 1). This area has approximately 560 residents, whom are primarily employed in the fishing industry. The area is served by barge from Naknek via the Kvichak: River on a regular basis and by scheduled air carriers from Anchorage. The road system extends north from Iliamna towards Nondalton, but fails to connect the two communities because no bridge exists across the Newhalen River. The proposed hydroelectric project is located on the Tazimina River about 12 miles northeast of the community of Iliamna (Figure 2). The Tazimina River flows west from the Aleutian Range. The location of the proposed hydroelectric project is eight miles downstream of lower Tazimina Lake at a steep falls. Immediately below the falls a steep walled canyon extends for about one mile. The Tazimina River joins the Newhalen River at Sixmile Lake approximately 9.5 miles downstream of the project site. Cominco Alaska, Inc. recently announced the discovery of a copper-gold deposit, 17 miles west- northwest of the community of Iliamna. 2.2 PROJECT DESCRIPTION The Stone and Webster feasibility study identified a preferred hydroelectric project at the Tazimina Falls site. In this project, the intake structure is approximately 250 feet upstream of the falls on the left bank at the 570 foot elevation. The penstock extends from the diversion along the top of the canyon for 270 feet to a powerhouse. The turbine is located 100 feet below the powerhouse at the bottom of a bored water columnllineshaft assembly. Flow returns to the river channel by a tailrace tunnel. A nine-mile road would be constructed to access the project site and a 24 kV distribution line is buried adjacent to this road to carry generated power from the powerhouse to the existing INNEC distribution system. N:07250.00l:I:D8 2 "11 -Ci) c :D m PROPOSED COPPER/ GOLD MINE PROJECT SITE See Figure 2 \ -~ •· NAKNE~ KING NAIC.N[ (AL~ON LAKE NORTH SCALE cr-To 2Mo .. no ..-.Es FIGURE 1 ., C5 c ::0 m 1\) TAZIMINA RIVER HYDROELECTRIC PROJECT PROJECT AREA MAP FIGURE 2 HR 3.0 PROJECT COST The cost estimate prepared by Stone and Webster for their 1987 report was updated for the preferred hydroelectric project to reflect 1991 costs. The basis of all quantities, with the exception of the roads are taken from Stone and Webster's estimate. The access road was relocated to a more southerly route that is longer than the Stone and Webster route but where better soil conditions are assumed to exist. The character of the road was also downgraded to the minimum required to provide co~struction and maintenance access. The following is a list of the major assumptions and methods of costing used to compile the estimate. Complete cost estimate spreadsheets are included in Appendix 1. • The basis of all quantities with the exception of the roads are taken from Stone & Webster's estimate. The roadway estimate is based on a criteria provided by INNEC. These criteria were nine-mile length and a 16-foot-wide travel surface, to be constructed by overlaying existing terraces with borrow. The road will require one ten-foot-long bridge. Drainage culverts wlll be placed where required. • The Stone and Webster estimate does not provide enough information for the pricing of the major electrical equipment. These items have been estimated at Stone and Webster's cost, increased by the inflation rate from 1986 to 1991 for construction in Alaska. • Costs are based on a competitively bid contract. It is assumed the contractor would work a 60 hour work week. The wages are based on the Little Davis-Bacon wage legislation. Equipment rates are based on Blue book without area adjustments. • Turbine and generator prices are 1991 quotes from the manufacturer, Bryon Jackson of Seattle. • A contingency cost of ten percent is applied to all direct construction costs. • Design and construction management costs do not include additional geotechnical exploration. It is assumed that sufficient work was completed during the Stone and Webster study. • The construction period is assumed to be May 1993 through December 1994 with project start-up in 1995. • The expected life of buried cable is 20 years. The cost of a replacement cable is included at the 20-year point in the life of the project. N:072S0.001:l:D8 3 • INNEC has an agreement for the land and right-of-way acquisition for this site. They have stated that this amount is minor compared the overall construction costs. This cost is not included in this estimate. • Environmental mitigation costs, if any, for this project are not included in this estimate . TABLE 1 CONSTRUCTION COST ESTIMATE DESCRIPTION ESTIMATED COST Powerplant $ 747,828 Waterways $ 1,796,852 Turbines and Generators $ 892,000 Accessory Electrical Equipment $ 358,400 Misc. Powerplant Equipment $ 127,600 Roads $ 1,417,725 Substation and Switching Equipment $ 59,700 Distribution Line $ 354,310 MOB/DEMOB $ 724,721 Other Direct Costs $ 1 ,268,106 TOTAL $ 7,747,242 Unassigned Contingency (10%) $ 774,724 TOTAL DIRECT COSTS $ 8,521,966 Design and Construction Management ( 10%) $ 852,196 TOTAL ESTIMATED COSTS $ 9,374,162 N:07250.00l:l:D8 4 4.0 LOAD FORECAST 4.1 EXISTING GENERATION CAPACITY The utility currently produces electricity with diesel generators. The utility operates three 320 kW and one 600 kW diesel generators. The 320 kW generators are older and two have been recently overhauled with the third scheduled for overhaul in April 1991. The 600 kW generator is two years old. Together these provide a total of 1560 kW of capacity. 4.2 LOAD FORECAST, MEDIUM GROWTH SCENARIO Power Cost Equalization Records from 1983 to 1990 were reviewed to assess the growth of electric demand (Table 2). These records show that for the years 1986 to 1990 there was steady growth at an average rate of 3.6 percent per year. The years of 1984 and 1985 show high load growth because at these times the communities of Newhalen (1984) and Nondalton ( 1985) joined the INNEC. These years are not included in the growth average. The 1986 to 1990 average will be used for the medium growth scenario. TABLE 2 ELECTRICAL DEMAND, 1983 TO 1990 YEAR SALES LOAD GRO\\'TH INCREASE FROM PREVIOUS (CALEI\'DAR) (kWh) YEAR (PERCENT) 1983 $ 974,000 391,051 1984 $1,365,051 174,308 (a) 40.1 1985 $1,539,359 53,063 (b) 13.2 1986 $1;592,42 40,186 3.4 1987 $1,632,608 77,121 2.5 1988 $1,709,739 71,228 4.7 1989 $1,780,957 61,150 4.1 1990 $1,842,170 3.4 Average Load Growth 1986-1990 (five years) 3.6 a Newhalen joined Co-Op in 1984 b Nondalton joined Co-Op in 1985 N:072SO.OOl:l:D8 5 4.3 LOAD FORECAST, HIGH GROWTH SCENARIO Field surveys and feasibly studies for a large copper-gold mine in the Iliamna area have been on-going for several years. If this mine were to open, it is possible that an influx of workers into the Iliamna area would increase the need for electrical generation. Estimated energy requirements and their timing are not well defined at this time. A load forecast for this high growth scenario was developed based on the following assumptions: • • • • YEAR 1995 1996 1997 The mine would employ approximately 350 people . 30 percent, or 105 of these people would live within the area served by INNEC . Load growth from new residents would occur over a three year period beginning in 1995. After this time load growth would continue as in the medium growth scenario. The average residential customer uses approximately 4,500 kWh per year . TABLE 3 ESTIMATED INNEC LOAD GROWTH FROM COMINCO MINE INCREASE IN LOAD (kWh) NUMBER OF NEW kWh INCREASE CUMULATIVE PROJECTED PROJECTED CUSTOMERS PER YEAR INCREASE LOAD WITHOUT LOAD WITH INCREASE PER YEAR CO MINCO CO MINCO 35 158,000 158,000 2,528,000 2,686,000 35 158,000 316,000 2,618,000 2,934,000 35 158,000 474,000 2,713,000 3,187,000 There are two other possibilities for increased load growth in the Iliamna area. The sale of excess electrical power to the Cominco mine in the initial years of the hydroelectric project and sales to the communities of Port Alsworth, Pedro Bay, or Kakhonak. An intertie would need to be constructed for any of these to occur. These interties were not in investigated in this study, nor was this additional load growth assessed. N :07250.001:1 :DS 6 5.0 FUEL COST ESCALATION The INNEC utility purchases diesel fuel in bulk to power their electrical generation system. The fuel is purchased on an annual basis and stored in tanks with a capacity of 200,000 gallons. The most recent purchase of fuel was in January 1991, and was purchased at $1.20 per gallon. Table 4 shows the prices paid for delivered fuel from 1987 through 1991. These prices differ from those which are reported in the PCE reports. The PCB report's most recent fuel purchase price is the price of the fuel used by the Alaska Public Utilities Commission (APUC) to determine the PCE rate. This price is a combination of past costs for fuel remaining in storage tanks and costs for fuel recently purchased. TABLE 4 PRICES PAID FOR DIESEL FUEL BY INNEC DATE NOMINAL PRICE $PER GALLON 1987 1.07 1988* 0.81 1989 0.95 1990 1.11 1991 1.20 * INNEC Joined Western Alaska Fuel Group in 1988 In 1988 INNEC joined the Western Alaska Fuel Group which is composed of the utilities of Nome, Kotzebue, Naknek, and Nushagak. Membership in this group is seen as the major reason for reduced fuel prices in 1988. Table 4 shows that the price of fuel has increased in nominal terms for each of the four purchases since 1987. The average fuel cost escalation above inflation for this period was eight percent. The mid-range forecast for world oil prices prior to the recent invasion of Kuwait, shows an average 2.25 percent annual increase (above inflation) in crude oil prices over the next 20 years. After the invasion, oil prices rose dramatically, but now following the cessation of the conflict oil prices have returned to pre-invasion prices. The pre-invasion forecast is considered the best N:07l50.001:1:D8 7 estimate of long-term price escalation. As was pointed out in the 1990 AEA memorandum (1) on this project, oil escalation factors have been developed with crude oil, not diesel fuel, in mind. Any given change in the crude oil price translates into a lower percentage change in the diesel price. Because of the long-term economic analysis period of this report, the world oil price forecast has been used as the basis for fuel escalation. The 2.25 percent real annual increase in crude oil prices has been reduced to a 2.0 percent real annual increase to account for the differences noted by AEA between crude oil and diesel fuel prices. Increased environmental regulations of fuel shipments may have a pronounced effect on fuel costs in the INNEC area. The impact of these regulations are unknown and are not included in this assessment. N:072S0.001 :l:D8 8 TAZIMINA RIVER HYDROELECTRIC PROJECT FEASIBILITY STUDY Prepared for: Diamna-Newbalen-Nondalton Electrical Co-Op (INNEC) Box 206 Iliamna, Alaska 99606 Prepared by: HDR Engineering, Inc. 4446 Business Park Boulevard Building B Anchorage, Alaska 99503 May 1991 6.0 PROJECT ENERGY PRODUCTION Energy production is based upon the hydroelectric project sizing done by Stone and Webster. This project has two 350 kW turbines at 100 feet of head and a four foot diameter penstock. Each turbine has a peak capacity of 55 cubic feet per second (cfs) for a total of 110 cfs. Analysis for this study of five years of streamflow records showed a range of flow of 140 to 4800 cfs (10). Thus the amount of water available from the river exceeds the amount necessary to run both turbines in all seasons of the year. This turbine sizing will accommodate the needs of the utility through the year 2015, assuming a moderate growth scenario and use of diesel generation for peaking load capacity. The expenditure for higher capacity turbine-generator equipment could increase the feasibility of hydroelectric for the medium load growth scenario during the 30 year analysis period. For a high load growth scenario or longer analysis periods, analysis suggests that upsizing the turbines could increase the feasibility of the hydroelectric project. Analysis of various installed capacities was not within the scope of this report. Resizing of the project would involve analysis of the peak and minimum demands at start up and throughout the project life. Project sizing would be limited by winter low flow. N!072SO.OOl!l:D8 9 7.0 ECONOMIC ANALYSIS The economic analysis presented in this section compares the net present value of diesel generation with the net present value of hydroelectric generation. The analysis period begins in 1991, assumes hydroelectric power is available beginning in 1995 and continues for the next 30 years until 2024. An economic analysis spreadsheet was developed to analyze the present worth cost-to-cost ratio of the project. The spreadsheet is presented in Table 5. The net present value of each case, diesel generation only and hydroelectric with diesel generation backup, is found by calculating the yearly capital, fuel, and operation and maintenance costs for each, discounting these to current dollars and summing them for the analysis period. The base case net present value is then divided by the hydroelectric net present value to yield the present value cost-to-cost ratio. Cost-to-cost ratios greater than 1.0 indicate that hydroelectric is less expensive over the project analysis period than diesel generation. Ratios less then 1.0 indicate diesel generation would be the more economical option. For this analysis, costs for all years are computed in inflation free 1990 dollars. The model does not increase costs by inflation and calculates present value of future costs by using a real discount rate approximately equal to the nominal interest minus inflation. The economic analysis was based on the following assumptions: • The INNEC load growth for the medium growth scenario will be at an annual rate of 3.6 percent based on PCE records from 1986 to 1990 (see Section 4.2). For the high load growth scenario additional load growth is as detailed in Section 4.3. Load growth is assumed constant through the entire analysis period. • The annual interest rate will be eight percent and annual inflation will be five percent. These values reflect recent trends in long-term rates and are the values presently used by the AEA to evaluate projects. The eight percent interest rate assumes that the project will qualify for tax-exempt bonding. • The base year of economic analysis is 1990 as actual utility generation data was available for that year. • The economic evaluation period will be 30 years. The accepted life span of a hydroelectric project is 50 years thus 30 years is a reasonable period of analysis. N:072SO.OOI:l:D8 10 • Diesel fuel will be escalated at two percent above annual inflation (see Section 5.0). Escalation is assumed constant throughout the entire analysis period. • The 1990 fuel price of $1.20 per gallon is the price of the utility's most recent fuel purchase in January 1991. • The utility's diesel generation efficiency of 12 kWh per gallon is based on generation records from 1986 to 1990. • Replacement cost for diesel generators will be $700 per kW with a generation life of ten years for full-time diesel generation and 20 years for backup diesel generation. This cost is based on a recent price quote for a generator for the City of King Cove, adjusted for increased freight costs to Iliamna. • The INNEC diesel generation maintenance costs will be $0.17 per kWh. This value is derived from 1986 to 1990 PCE records by dividing the total non-fuel expenses exclusive of administration costs by the total power sold, and is the cost of maintaining the generators and the distribution system, and depreciation and interest. Because depreciation and interest are included in maintenance costs, it is assumed for the economic analysis that the cost of replacing worn out generators is included in this amount. • The hydroelectric generation O&M costs will be $0.08 per kWh. This is based upon reduced diesel maintenance and replacement costs, especially in the early years of the project. • The INNEC administration costs are taken from 1990 PCE records. These costs are assumed to be fixed costs that do not vary with increased kWh sales. They are assumed to be equal for the diesel and hydro cases. • Construction costs were estimated in Section 4.0. This cost includes design, administration, and construction of the project. • The startup date for hydroelectric generation is 1995 based on the project schedule developed by Stone and Webster with design beginning in 1991. • The diesel analysis assumes maintaining the existing 1560 kW present firm capacity until 1995. At this time it is assumed that the two oldest 320 kW generators will be retired and replaced with a single 320 kW unit. Projections of peak annual loads suggests that no more than that capacity will be required at that time. Load will equal capacity in 2001 and from that time on capacity will be added at the same rate as the growth of peak load (3.6 percent). Firm capacity represents the generation capacity required to meet electric demand including generator down time for repairs. It is assumed that the cost of capacity replacement is covered in O&M costs, but that N :07250.001: I :D8 11 additional capacity requires capital expenditure beyond the basic O&M budget. • If the hydroelectric project is built and is on line in 1995, then the 320 kW diesel unit would not need to be bought in 1995, and the existing diesel generators would provide sufficient peaking capacity until 2009. Other generation equipment replacements and additions are shown. A minimum diesel generation of 5 percent annual system load (line 15, Table 5) has been assigned to account for diesel generation required during hydroelectric downtime and to meet daily peaks. • Electricity generated in excess of the utility needs was assumed to have no value. Table 5 shows the diesel net present value to be $32,218,000 and the hydroelectric net present value to be $24,332,000 for the 30 year comparative analysis period. The present worth cost-to- cost ratio for this analysis is 1. 32. The project is defined as feasible. A sensitivity analysis was completed to determine the effect of varying six of the economic parameters that affect the cost to cost ratio. Construction cost, initial fuel price, load growth, fuel escalation rate, interest rate, and inflation rate were each varied one at a time within a reasonable range and the present worth cost-to-cost ratio tabulated. This is shown in Figure 3. None of the six assumptions, when varied independently by plus or minus 50 percent, caused the cost-to-cost ratio to drop below 1.0. A combination of factors, however, such as a large cost overrun accompanied by a drop in oil prices, could conceivably cause the project cost-to-cost ratio to drop below 1.0, and therefore, define the project as not feasible. Calculations using a variation of the economic analysis period were also performed. They showed that the project has a cost-to-cost ratio of 1.08 for an analysis period of 20 years and 1.40 for an analysis period of 50 years. The addition of 30 percent of the Cominco workforce to be served by INNEC increased the cost- to-cost ratio to 1.36. The hydroelectric project is undersized even for the expected increases of the community without the additional Cominco growth. With increased growth the turbine capacity is exceeded sooner and increased fuel costs are incurred to provide for demand. If the project were upsized (analysis of project size was not in the scope of this study), the cost-to-cost ratio for a high load growth scenario could increase. N:07250.00l:l:D8 12 Table 5 TAZIMINA HYDROELECTRIC FEASIBILITY Economic Analysis (30 yr) SUMMARY Diesel Net Present Value= $32,218,032. Uydro Net Present Value= $24,332,668 Cost/Cost Ratio = 1.32 POWER GENERATlON REQUIREMENTS 1 Annual Sy>tem Load (kWh) 2 Peak Annual Load (kW) DIESEL FUEL RATES J Annual &c.alation Ratr 4 Fuel Pricc(l990$tgal) DIF.SEL ANALYSIS ~ Firm Capacity (kW) o Capa<:ity Additions (kW) 7 Diesel Fu<l u.., (gallom) 8 C.apita1Costs(l990$) 9 Fue1Costs(l990$) 10 Maintenance Cmts ( 1990 $) 11 Operations Cost. (1990 S) 12 Total D.,.., I Coots ( 1990 S) HYDROI'ROJECf ANALYSIS 1.' Firm Capacity (kW) 14 Diescl C.apadty Additions (tW) 15 Hydroel«tricGeneration (tWb) 16 Dieoel Generation (tWb} t7 D"""'l Fucl Use (S~~Ik>no} 18 Capital Casu (1990$) 19 C_onotrmtion cost (1990$) 2(l Fucl Cosll ( 1990 $} 21 Maintenance C:O.U (1990 $) 22 OpmltiomCosts(1990S) 19'11 2.118.000 2.19U~8 420 4.'~ 1.!0 1,56!1 0 l7b5!0l $0 $211.1100 $34'1,410 $24:!.0011 15..0 0 182.854 so S21J,SD $:16!,051 $242.000 $80).27ll $827.M4 1.56!1 0 2.118.000 176500 so so $211,800 $349,470 $242,000 1.~6!1 0 2.194.248 182.8.>4 so $213,001 $223,813 $)62,051 $242.000 Load Fore<aot Alsumptions C-Ommunity Load Growth Economic Auumptiom Nominal Interest Ratr Annuat Jnrtation Rate Real Discount Rate Base year Economic Anatysts Period Load Growth Period Fuel.r;;..,.lation Period 1992 19'13 8.00% 5.00% 2.86% Diesel System Assumptions Fuel r;;..,.1ation Rate 1990Avg, Fuel Pnc. Fuel Efficiency Eronomi< Life Additional Capacity Cost Maintenance Cos! 1<1'1fl Operations f'_ost JO yr 19'11-2024 30 yr 19'1l-2!l24 JO yr 19'11-2024 11>95 1996 19'17 20% $1.20 /gal 12 tWhlgal 12 yean $700 lkW $0.11 ltWb SZ4l.OOO !vear 1999 2000 Hydroprnjec:t Assumptions Construction Cost $9,375,000 Funding Life 0 yean Aonual Debt Service SO Maintenance Cost Operations Cost Startup Date Hydroprojec:t Specifieatlona Installed C.apa<:ity Maximum Head Efftdency Maximum Capacity/year 2001 S0.08 lltWb $242.000 /year 19'15 700 tW 100 ft 79% 5,200,000 tWb 1004 2.273.241 2.355,018 2.439,86!1 2.527,695 2,618,691 2. 712.%5 2.!1111.6-'2 2.911,815 3,016,640 J, 125,239 3,237,748 3,354,307 3,475,062 451 467 484 501 519 ~~ ~57 577 598 62!l 642 6M 689 151i0 II J8'),4J7 so $236,508 SJ75,085 $242.000 2..~ 1.21 1.5611 0 1%.2.>6 so $249,92.\ $388,5118 $242,000 $&5.',593 SR80.511 2,273,241 189,437 so SM9.001 $236,508 SJ7S,085 $242.000 1,56!1 0 so $5,972,171 $24'1.923 S388,5118 $242,000 2.0% DO so $264,098 $402.571 $242.000 2.0% l..l2 156!1 0 21(1,641 so $219,1118 $417,010 $!42.(1(10 2.0% us m J2!l 218.224 $224,000 $294.0117 $432.084 $242.000 $0 $.111,634 $447,1\39 $242.000 (12(1 ll 21·1,219 $0 $329,_1111 $44.\,754 $!42.000 92(l 0 242.651 so $347,989 $480,449 $242.000 2.0% 1.46 92(} 0 251,387 so $367,727 $497,746 $242,000 2.0% 1.4'1 953 33 260,437 $23,184 S.l88,584 $515,644 $242.000 2.0% 152 987 J4 269,812 $24,019 $410,62.~ $534.228 $242.000 2.0% 1.55 1,023 $24,883 $433,915 $553,461 $242,000 2.0% 158 1,0(,!1 J7 18'),588 $25,719 $458.521 $573,38$ $242.000 $<wl8.675 $'1~8,148 $1,192.992 $1,001.n4 Sl.OJ5,06S $1,070,4J8 $1,107,472 Sl.IM,4J3 $1,2!0,872 $1,2.54,159 $1,299.691 2,43'1,86!1 2!lJ.322 so $2,519,886 $264,098 $402,571 $242.000 1.JOO 0 2.401,311 121\,..'l!S 1o.5n so $13,954 $200,952 $242.000 1,300 0 2.487,7S8 130,935 1o,911 $14,745 S:M&.U!6 $242.000 1,.\00 0 2.571.317 13S,648 11,304 SIS,582 $215,681 $242,000 000 0 2.670,100 140.532 11,711 so $16,4611 $223,445 $242.000 1,3011 0 2, 764,224 145.591 12.133 $17,399 $231,489 $242.000 1,3011 0 2,865,808 150,&:12 12.569 $18.:!116 S239,82J $242,000 1,3011 0 2,9;§11,971 156,262 13,022 $19,419 SZ48,4S7 $242.000 1.3011 0 3,075,86!1 161,887 13.491 S20.SJ1 $257,401 $242,000 DOO 0 3.1&1.591 167,715 13,976 so 521,696 $2ii6,661 $242,000 1,3011 0 3,301,30'1 173,753 14,479 so $22,924 $216,267 $242,000 23 Total Hydro Costs (1990$) $803,270 $1,040,913 $1,512,642 $6,852,688 SHlS.S41 $456,906 $464,931 $413,262 $481,911 Table 5 TAZIMINA HYDROELECTRIC FEASIBILITY Economic Analysis (30 yr) 2005 2006 2007 lfl08 200'1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 POWER GENERATION REQUIREMENTS I Annu>l System Load (kWh) 3,600,144 ,.1,729.770 J.!l64.4142 4.003,147 4.147.Ziill 4.2%.562 4,451,238 4.61!,483 4,177,496 4.9~.486 1.127.667 Ut2.26J 5,503.505 5.701.631 5,906,8'l0 2 Peak Annual Load (kW) 714 740 7M 7'14 822 852 88..1 914 '147 <lSI 1.017 I.OSJ I.O'll 1.111 1.171 DIESEL FUEL RATES 3 Annual Escalation Rat~ 2.~ 2.~ :!.fY¥ !,fi"#, 2.11'!1' 2Jl% z.,.,.,., 2.0% 2.~ 2.0% 2.11% 2.11% 2.11% 2.0% 2.6% 4 l'ud !'ric. (I~ $/gal) 1.62 1.65 !.loll 1.71 L7~ 1.78 1.82 1.!\6 1.89 1.93 1.<>7 2.01 2.05 l.O'l 2.13 DIESEL ANALYSIS ·' f-irm Capacity (kW) 1.0<18 t.m 1.178 !.221 t,;!h5 UJO U58 1.406 1.457 1509 1.544 1.620 1.678 1,739 1.801 h \armdtv Additions (tW) 38 40 '" 42 ·H % 47 4'1 51 12 54 56 58 60 63 7 Diesel Foell!.., (gallons l 300.014 310,814 .:t22.t••-' 3.13.5"" 345.605 JS!l.0-17 370.937 384.2'l0 3'18.125 41!,457 427 .. 141!\ 442.6110 458.625 475.136 492.Z41 8 Capital Cosrs ( 1990 $) $26.707 $27.669 $28.665 $!'1.6117 $30.7<16 $31,87.1 $.13.021 $34,209 $35,441 $36,717 $38.0311 $39,408 $40,827 $42,2% $43,819 9 Fuel Coots (1990$) $484.535 $512.017 $541,059 $571.748 $1004.178 $638,446 $674AI9 $712.926 $753,36..1 $7%.094 $841.248 S888.%4 $939,386 $992,668 $1.048.<>7! 10 Maint<nan"" Cost• ( 1990 $) $5'14,027 $615,412 $h.17,S67 $Mil,S 19 $684,2'l!l $708.933 $734,454 $760,895 $788.287 $816,665 S<'146,065 $876.523 $908,076 $'140,769 $974,637 II ~rations O>sts (1990$) $242.0011 $242.0(10 $242.000 $242.0011 sz~z.noo $242.1100 $242.0011 $242.000 $242.0011 $242.000 $242.000 $242.0011 $242.000 $242.000 $242.000 12 TotaiDiC'S<ICooto(l990$) $1.347,269 $1...197.098 $1,449.291 $150.'.<164 $1561.241 $1,6!1.252 $1.684.1.14 $1.750,030 Sl.819,091 $1.891.476 $1.%7 .. 152 $2.046.891 $2.130.291 S2.217,n.1 $2.309.4211 HYDROPROJECT ANALYSIS D Firm Capacity (tW) t,JOO 1,300 uoo 1..'00 1..147 1.395 1.446 1.49R 1.551 1.607 1,665 1.725 1.787 1,8.52 1,918 14 Dies<ol Capacity Additions (tW) I) I) 0 0 47 48 so 52 54 56 58 (10 62 44 67. IS Hydnxlectric G•neration (tWh) 3,420.156 3,543,281 J,a70,MO ~.802.990 J,939.8'17 4.41111.7j4 4,228,676 4,380,908 4,538.621 4,702.012 4,871.284 5,200,000 5,200,000 5.200,000 5,200,000 16 Diesel G<n<rntion (kWh) 180.008 186,488 193,202 200,157 207,363 214.828 222.562 2.l0,574 238,875 247,474 256.38~ 112.263 303,505 SOI,6.ll 706,890 17 Die .. l Fu<l Use (galloml 15.001 IS.S41 16.100 16,680 17.Zl10 17,902 18.547 19,215 19,906 20,623 21,)(;_1 9,355 25.292 41,803 58.907 18 Capital Coot~ (1990$) so so so so $32.7(10 $33,939 $35,161 $36,427 $37,738 $39,097 $40,504 $41,963 $43,473 $45,038 $46,6(,0 19 ConstnJ<tion rosl( 1990 $) $354,310 20 l'ud Coots (141<10 $) $24,227 $25,(101 $27.053 $28.587 $.10,209 $31,922 $33,733 $35,646 SJ7,668 $J9,80S $42.062 St8, 786 S51,80S $87,335 $125,533 21 Maintenance Coots ( 1990 $) $2.86,213 $296,517 $307,191 $318.250 $329.707 $34!,517 $353,873 ~613 $379,811 $393,484 S407.6SO $408,523 $440,078 $472.769 SSCJ6.637 22 ~rations Coots (1990 S) $242.000 $242.000 $242.000 $242.000 $242.000 $242.000 $242.000 $242.000 $242.000 $242.000 $242.000 $242,000 $242.000 $242.000 $242.000 23 TO!JII Hydro Coots ( 1990 $) $552,440 $564,118 $576,244 $588,838 $6..14,676 ~.438 $664,768 $680,686 $697,217 $1,06&696 $732.216 $711.272 sm.356 $847,143 $920,829 Table 5 TAZIMINA HYDROELECTRIC FEASIBILITY Economic Analysis (30 yr) 2020 2021 2022 2023 2024 POWER GENERATION REOUIREMENB 1 Annual System LoOO (kWh) II, 119.53!1 6,3.\9.1\41 651\8.07S 6.004526 7,049.48\1 2 Peak Annual Load (kW) 1,214 1.2.~1 1,:102 1,,!49 l.J91l DIE.'iEL FUEL RATES .3 Annual E.scalaHon Rate 2.6"; ~.ft% Vl% :!.0% :!.0"1> 4 Fuel Price ( 19'lll Sigal) !.11 ~.2:! 2.!6 2..1lJ !..\~ DIF..SEL ANALYSIS Firm Capacity (tW) I.SM l.'l.l~ :!.003 2,07< 2.150 Cap:ldty Additions (kW) 6,< o7 70 12 7< Diesel Fuel lise (~•lions) 511'> ..... 1 511\.'20 5-17,340 5~7.044 ~R7.457 8 C.apit.•l Cos!S (1990$) $45,397 $47,031 $41\.1!4 $5(),478 S52,29S 9 Fuel Costs ( 1990 S) $1.1~.470 $1,171,342 SL:!.\7,700 $1.307.987 $1,3!12,176 10 MaintenanceCosts(I990S) S1.0f.l'l,724 $1.046.074 S!Jl!l\,732 $1,122.747 St.I6J,IM 11 Operations Cos!S ( 1990 $) SNZ.C)(IO $2-1.!.000 $242.000 $242.1100 S242,C)(IO 12 Total Diesel CO$ts (1990 S) $2.4055911 $2.506.>147 $2,612.2.'7 $2. 72.'.212 $2,&19.6.\7 H YDROPROJECT ANALYSIS \3 Firm Capacity (kW) 1,987 2.059 z.m 2.210 2.289 14 Diesel Capacity Additions (kW) 69 72 74 71 80 IS Hydroek'ctric G<'fleration (kWh) S,ZOQC)(IO S.200,C)(IO S.200,C)(IO 5,200,000 5,200,000 16 Diesel Generation (kWh) 919,538 1.139.841 1.36&075 1,604.526 1,849,48\1 11 Diesel Fuel Use (gallons) 76,628 94,987 11•1.006 133.711 154.124 18 Capital C.osts (1990 $) $48,}}9 SSO,OilO $51,882 $53,750 SSS,Ii!lS 19 Constnlction coot {1990 $) 20 Fuel Costs (1990 $) $166.562 $210.596 $2.<7,819 $308,427 $162,625 21 Maintenan.., Costs (I'I'JO $) $541,724 $518,074 $61~.732 $654,747 $695,166 22 Operations Coots (I'I'JOS) $242,000 $242,000 $242.000 S24Z.OOO $242,C)(IO D TOUI Hydro Costs (1990$) S'I'J8,625 $1,080,749 $1,167,434 $1,258.924 St.3SS,476 TABLE 6 30 YEAR ECONOMIC ANALYSIS SENSITIVITY ANALYSIS ECONOMIC PERCENT VARIATION PARAMETER -100 -50 -25 0 25 so 100 Construction Value 4.7 m 7.0 m 9.4 m 11.7 m 14.0m Cost Estimate C:C 1 1.62 1.46 1.32 1.21 1.12 Initial Value 0.90 1.20 1.50 Fuel Price C:C 1.22 1.32 1.42 Community Value 0.0 1.8 2.7 3.6 4.5 5.4 Load Growth C:C 1.00 1.16 1.25 1.32 1.33 1.31 2 Fuel Value 0.0 1.0 1.5 2.0 2.5 3.0 4.0 Escalation Rate C:C 1.19 1.25 1.28 1.32 1.37 1.42 1.53 Nominal Value 6 8 10 12 16 Interest Rate C:C 1.50 1.32 1.17 1.03 .083 Annual Value 2.5 3.75 5.0 6.25 7.5 Inflation Rate C:C 1.12 1.22 1.32 1.43 1.54 1 C:C is the present worth cost-to-cost ratio of hydroelectric cost and diesel cost 2 Cost-to-cost ratio decreases because capacity of hydroelectric system exceeded sooner and increased fuel cost are incurred to provide for demand N :07250.001 :I :D8 13 Figure 3 Tazimina Hydroelectric Sensitivity Analysis of 30 Year Economic Analysis 1.7~-------------------------------------------------------------------------, 1.5 1 . 4 ·-· .. ·····--·-··--.. ·---... --........ -............ _ .... _,_ .............. _ .. ~---······-· ..................................................... . 1.1 0.9 ··------"--·--·---- 0.8~--~------r-------r-------~----~-------.-------.-------.-------.--~ -100 -75 -50 -11-Const. Cost Est. -B-Fuel Escal. Rate -25 0 %Variation -+-Initial Fuel Price 25 50 ""*'-Comm. Load Growth ~ Nom. Interest Rate • Annual lnfl. Rate 75 100 8.0 RATE IMPACT ANALYSIS The cost per kWh for each year for both diesel and hydroelectric generation were computed (Appendix 2) and plotted (Figure 4). The cost per kWh of hydroelectric generation increases sharply in 1995, the year that the project comes on line. In this first year the predicted cost for hydroelectric is $0.51/kWh while the cost for diesel is $0.37/kWh. This difference in cost is known as rate shock and is caused by the beginning of the annual debt service payments. With time these debt service payments are decreased in real value and the cost per kWh for hydroelectric generation decreases. After 1995 diesel costs continue to rise, while the cost of hydroelectric decreases. In 2001 six years after the hydroelectric project comes on line, the cost of electricity generated per kWh is equal for both methods of generation. After 2001 the cost of hydroelectric generation continues to decrease as diesel continues to increase. The capacity of the hydro project is exceeded in 2016. For no rate shock to occur the amount of money borrowed for the project must be reduced to the point where the cost per kWh for hydroelectric is the same as the cost per kWh for diesel power generation for the year the hydroelectric project comes on-line. This equality of rates occurs when the amount financed is $5.4 million. Project costs would have to be reduced by $4 million. Estimated construction costs ( 1991 dollars) Construction cost which gives zero rate shock (1991 dollars) Cost reduction needed to give zero rate shock ( 1991 dollars) 14 $ 9,400,000 - $ 5.400.000 $ 4,000,000 ·. 0.7.---------------------------------------------------------------------------------~ Figure 4 Tazimina Hydroelectric Project 0. Rate Analysis 1990-2024 0.5 ~ 1995 Start of Hydro Debt Service -.f;/} 0 0> 0.4 0> Diesel Case or--I ~ ..::s::: 0.3 :;:::;- 2014 Replacement of Transmission Cable I C/) 0 (.) 2009 Begin to add additional Diesel Capacity for Peaking 0.2 2016 Hydro Capacity Exceeded I 0.1 2024 End of Hydro Debt Service 1990 1995 2000 2005 2010 2015 2020 Year 9.0 POWER COST EQUALIZATION ANALYSIS 9.1 HISTORY AND RATE DETERMINATION The State of Alaska Power Cost Equalization program has been in existence since 1985. Prior to that time, two similar programs were in effect that extend the record of this type of program back to 1980. The purpose of the PCE program is to provide economic assistance to customers in rural Alaska where the cost for electricity is often higher than the cost in the more urban areas of the state. Assistance is provided to equalize electricity cost per kWh for rural utilities statewide at a price close to the mean of the cost per kWh in Anchorage, Fairbanks, and Juneau. State funds are appropriated by the Legislature for the PCE program each year and are paid to utilities on behalf of eligible customers. The utility is required to reduce its customers bills by the amount that the State pays for PCE. The amount of PCE subsidy per kWh that a utility receives is determined by the amount that it costs the utility to generate power. The program pays 95 percent of a utility's costs between $0.085 per kWh and $0.525 per kWh. All customers must pay at least $0.085 for every kWh eligible for PCE assistance. If costs are more than $0.525 per kWh, the maximum PCE subsidy is $0.418 per kWh ($0.525 -$0.085 = $0.44 X 95% = $0.418). Costs NOT covered by PCE Costs NOT covered by PCE Costs Above 52.5¢/kWh Costs between 8.5¢/kWh and 52.5¢/kWh Costs up to 8.5¢/kWh PCE pays 95% of the verifiable and reasonable costs in this bracket Taken from: AEA Power Cost Equalization Manual, January, 1990 There are limits on the amount of subsidy that a customer can receive. Residential and commercial customers can individually receive PCE credit for up to 750 kWh per month. Community facilities as a group can receive PCE credit for 70 kWh per month multiplied by the number of residents in 15 the community. An average of 62 percent of the INNBC power sold between 1986 and 1990 was subsidized by PCB. The utilities margin is not included when determining the PCE Rate. Thus the consumer must pay the utility at least 8.5C for every kWh eligible for PCE assistance, plus any difference between the PCE rate per kWh and the rate charged by the utility. Customers must also pay to the utility the full rate for all kWh used in excess of those eligible for PCE subsidy. For example, a recent formulation of PCB subsidy for INNEC showed a total fuel and non fuel cost of 37.5C/kWh. The PCE subsidy was 27.6C/kWh ([37.5C-8.5C] x 0.95). The utility rate charged was 45.5C/kWh and the rate paid by the consumer was 17.9C/kWh (45.5C-27.6C) for the first 750 kWh and 45.5C for use greater than ·750 kWh. 9.2 EFFECT OF HYDROELECTRIC PROJECT ON PCE If a hydroproject were to be built by the INNEC utility without state grant assistance, and the PCE program were to continue in its present form, the amount of PCE subsidy received by the INNEC utility would be increased for the first six years when the hydroelectric generated power was more expensive than diesel generated power. After these initial six years hydroelectric power would become less expensive than diesel produced power (Figure 4). The PCE subsidy will cover the consumer rate shock for the first 750 kWh of usage per eligible customer. Rate shock, therefore, will affect 38 percent of INNEC sales; sales not subsidized by PCE. If a hydroelectric project were built by INNEC with state assistance in the form of a grant to negate the rate shock, this grant would also decrease the cost per kWh and thus reduce the PCE subsidy. Table 6 shows the present worth of avoided PCE payments that would result from such a state grant. Two state grant amounts were analyzed: a grant for the full construction cost of $9.4 million; and a grant for the amount which results in no rate shock or $4 million. A no grant option was also analyzed. The return to state for its investment is shown for 20 and 30 years periods and the year is shown when the return to the state equals its investment. The present worth of avoided PCE payments was found by calculating the yearly costs difference between diesel generated power and hydroelectric generated power for each grant scenario. These yearly cost difference are discounted to current collars, summed for the analysis period, and multiplied by the typical percentage of power sold by INNEC which is subsidized by PCE. Two real discount rates were chosen to demonstrate a range of the avoided PCE payments by the State. These real discount rates were 0 percent and 3 percent. They are based upon an inflation rate of 5 percent and nominal interest rates of 5 percent and 8 percent. These nominal interest rates are the range that is recommended for loans for power projects by State Statute 44.83.170. The year the State of Alaska recoups its investment is the year in which the present worth of avoided PCE payments equals the initial state contribution. These analyses assume that the PCE program in its present form will continue for the entire analysis period. A detailed spreadsheet of this analysis is included as Appendix 3. 16 TABLE 7 REAL PRESENT WORTH OF A VOIDED PCE PAYMENTS REAL DISCOUNT RATE= 0.0 PERCENT MODERATE GROWTH CASE STATE CONTRIBUTION 20 YEAR 30 YEAR YEAR STATE RECOUPS CONTRIBUTION ANALYSIS ANALYSIS $0.00 (no State funding) $2,952,000 $10,123,000 N/A $4,100,000 (zero rate shock funding) $4,043,000 $13,544,000 2011 (17 years) $9,375,000 (full Stale funding) $9,708,000 $18,331,000 2013 (19 years) HIGH GROWTH CASE (30% OF COMJNCO WORK FORCE LOCATES IN INNEC AREA) STATE CONTRIBUTION 20 YEAR 30 YEAR YEAR STATE RECOUPS CONTRIBUTION ANALYSIS ANALYSIS $3,600,000 (zero rate shock funding) $7,140,000 $14,900,000 2008 (14 years) REAL DISCOUNT RATE= 3.0 PERCENT MODERATE GROWTH CASE STATE CONTRIBUTION 20 YEAR 30 YEAR YEAR STATE RECOUPS CONTRIBUTION ANALYSIS ANALYSIS $0.00 (no State funding) $1,753,000 $5,208,000 NIA $4,100,000 (zero rate shock funding) $5,805,772 $7,804,000 2014 (20 years) $9,375,000 (full State funding) $7,175,000 $11,353,000 2019 (25 years) HIGH GROWTH CASE (30% OF COMINCO WORK FORCE LOCATES IN INNEC AREA) STATE CONTRIBUTIONS 20 YEAR 30 YEAR YEAR STATE RECOUPS CONTRIBUTION ANALYSIS ANALYSIS $3,600,000 (zero rates shock funding) $4,900,000 $8,750,000 2010 (16 years) 17 10.0 CONCLUSIONS • When analyzed over a 30 year period, and based on the assumptions detailed in this report, generation of electricity by construction of a hydroelectric project has a lower cost than generation by diesel generators. • Based on the assumptions in this study, a grant of $4 million would eliminate rate shock in the initial six years of the project. • The State of Alaska could recoup their initial grant monies through avoided PCE payments in 17 to 20 years. • Additional load due to the Cominco project would slightly increase economic viability and decrease the PCE payback period for the existing project. If the hydroelectric project were upsized there would also be some additional. benefits. Resizing of the project was not within the scope of this report. 18 11.0 BIBLIOGRAPHY 1. Alaska Energy Authority, First Annual Statistical Report of the Power Cost Equalization Program, December, 15 1988. 2. Alaska Energy Authority, Second Annual Statistical Report of the Power Cost Equalization Program, December, 15 1988. 3. Alaska Energy Authority, Alaska Electric Power Statistics, 1980-1989, October 1990. 4. Alaska Energy Authority, Power Cost Equalization Program Manual, January, 1990. 5. Alaska Energy Authority, Tazimina Hydroelectric Project Study, Memo Report, August 30, 1990. 6. HDR Engineering, Inc, King Cove Hydroelectric Feasibility Study, February 1991. 7. Olsen, Trig, INNEC Manager, Personal Communication, 1991. 8. Ott Water Engineers, Inc., Hydropower Design Manual, January 1983. 9. Stone and Webster Engineering Corporation, Inc., Feasibility Report Tazimina River Hydroelectric Project, March 1987. Prepared for the Alaska Power Authority. 10. U.S. Geological Survey, Water Resource Data for Alaska, Water Years 1981-1985. 19 APPENDICES 20 1. DETAILED COST ESTil\1ATE ================================·===·=====================================================·================================ TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. CONCEPTUAL COST ESTIMATE: SUMMARY OF COSTS 03-May-91 ================================================================;========================================================== DESCRIPTION ESTIMATED COST OF CONSTRUCTION ==============================•=================================•============================•:===•======================== 1: POVERPLANT $747,828 2: VATERVAYS $1,796,852 3: TURBINES & GENERATORS $892,400 4: ACCESSORY ELECTRICAL EOUIRMENT $358,400 5: MISC POVERPLANT EQUIPMENT $127,600 6: ROADS $1,443,940 7: SUBSTATION & SVITCBING STATION $59,700 8: TRANSMISSION $354,310 9: MOB/DEHOB $717,877 10: OTHER DIRECT COSTS $1,263,905 =======·===========·======================·====================================================·==========·=·=======•==·=== TOTAL ESTIMATED COST: $7 t 762,813 ========·========================·====·=====================================·==============·=====·==•============·========= UNASSIGNED CONTINGENCY: 10.0% $776,281 ============================================·========:=•=====·=·==============·===================·==================·===== TOTAL ESTIMATED COST: $8,539,094 ==a========•=================================•===========•===============================•================================= Summary ~AZIMIRA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGIRIERIRG, INC. by Clark-Graves, Inc. tiNE t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 WORK DESCRIPTION POWEll. PLANT EXCAVATION -COMMON Above Item is Priced Load ' Haul Foreman DJB Doser 09 Loader 988 Motor Grader EXCAVATION • ROCK Above Item is Priced Drill ' Shoot Powder ' Access. Drilling Load ' Haul Foreman DJB Dozer D9 Loader 988 Motor Grader QUANTITY 765 CY Below: 4 HRS 32 HRS 8 Hli.S 8 HRS 4 HRS 765 CY Below: 765 CY 20 HRS 4 HRS 32 HRS 8 HRS 8 BRS 4 BRS UNITS MATERIAL COST LABOR HOURS +-----------------···+ +---------------+ UNIT TOTAL UNITS TOTALS $7.00 $28 1.000 4.0 $65.00 $2,080 1.000 32.0 $107.00 $856 1.000 8.0 $107 .oo $856 1.000 8.0 $58.00 $232 1.000 4.0 $2.50 $1,913 $68.00 $1,380 2.000 40.6 $7.00 $28 1.000 4.0 $65.00 $2,080 1.000 32.0 $107.00 $856 1.000 a.o $107.00 $856 1.000 8.o $58.00 $232 1.000 4.0 Page 1 TOTAL LABOR COST $164 $1,312 $328 $328 $164 $1,665 $164 $1,312 $328 $328 $164 CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $192 $3,392 $1,184 $1,184 $396 $1,913 $3,045 $192 $3,392 $11184 $1,184 $396 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LIRE * 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 WORK DESCRIPTION BACKFILL Pro<luction Rate haul units Total Production Rate Above Item is Priced Below: Foreman DJB Haul Units Loa<ler Compactor Gra<le Check UNDERGROUND ROCK EXCAVATION @ HEAD 0 ROCK DRILLING 2 HOLES, 53•DIA CONCRETE (UPPERSHELL, FLOOR SLAB) CONCRETE (BOTTOM OF HOLE) RIINFORCIRG FORMS • STRAIGHT FORMS -CURVED CASING (IN DRILLED HoLES) 47•DIA Above Item is Priced Below: Pipe Crane Labor GROUTING OF CASING QUANTITY UNITS 1,000 CY 43 CY/HR/URT 2 EA 86 CY/HR 12 HRS 23 HRS 12 HRS 12 BRS 12 HRS 100 CY 125 CY 210 CY 60 CY 28,700 LBS 7,100 SF 840 SF 186 Ll" 186 LF 60 HRS 60 CRW·HRS 22 CY MATERIAL COST +--------------------+ UNIT $1.25 $7.00 $65.00 $107.00 $30.00 $1,100.00 $1,100.00 $350.00 $350.00 $0.35 $1.25 $2.00 $87.85 $89.13 $375.00 Paqe 2 TOTAL $1,250 $81 $1,508 $1,241 $348 $110,000 $137,500 $73,500 $21,000 $10,045 $8,875 $1,680 $16,341 $5,348 $8,250 LABOR HOURS +----------·----+ UNITS 1.000 1.000 1.000 1.000 1.000 2.000 2.000 0.014 0.133 0.173 2.000 6.000 4.000 TOTALS 11.6 23.2 11.6 11.6 11.6 420.0 120.0 410.0 946.7 145.6 120.0 360.0 88.0 TOTAL LABOR COST $476 $951 $476 $476 $476 $17,220 $4,920 $16,810 $38,813 $5,970 $4,920 $14,760 $3,608 CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $1,250 $557 $2,459 $1,717 $824 $C76 $110,000 $137,500 $90,720 $25,920 $26,855 $47,688 $7,650 $16,341 $10,268 $14,760 $11,858 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LINE I 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 WORK DESCRIPTION STRUCTRAL STEEL (HOIST PRAME • RAILS) VENTILATION • HEATING LADDER • LANDING PREFAB POWERHOUSE BUILDING MISC METAL WORK, GRATING QUANTITY 13,000 LBS 540 SP 11,000 LBS 540 SP 1 LS MATERIAL COST UNITS UNIT TOTAL $0.75 $9,750 $10.00 $5,400 $1.50 $16,500 $55.00 $29,700 $30,000.00 $30,000 LABOR HOURS UNITS TOTALS 0.009 111.4 0.429 231.4 0.017 188.6 0.571 308.6 TOTAL LABOR COST $4,569 $9,489 $7,731 $12,651 CONCEPTUAL COST ESTIMATE DATE: 03-May-91 TOTAL COST TOTAL COST W/0 O'HEAD WITH O'HEAD AND PROFIT AND PROFIT $14,319 $14,889 $24,231 $42,351 $30,000 84 85 86 ........................................................................................................ "' ......................................... . SUBTOTAL: POWERPLANT $499,714 3,672.5 $150,571 $650,285 87 --------------------------------------------------·----·--------------------------------------------··------·······················-·· 88 DIVISION SUB-TOTAL WITH OVERHEAD AHD PROFIT: $574,671 $173,157 $747,828 89 LABOR RATE FOR THIS DIVISIOR: $41.00 PER HOUR 90 ---------------·····-·····-···-····------------------·-···········································--------------------------------·-·· Paqe 3 TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LINE • 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 WOR~ DESCRIPTION WATERWAYS WATERWAYS • COFFERDAM (50'Sqx25'D Sheetin9 Steel Fra11in9 Pullin9 Sheetin9 DEWATERING Pumpin9 EXCAVATION -COMMON Production Rate Load • Haul Foreaan DJB Doser D9 Hydraulic Excavator BACKFILL Above It•• is Priced production Rate Load ' Haul Foreaan DJB Dozer D9 Loader 988 Motor Grader Coapactor Grade Check QUANTITY UNITS INTAKE 38PSF) 95 TONS 30,000 LBS 95 TONS 3 MTHS 1,100 CY 30 CY/HR 20 HRS 80 HRS 40 HRS 40 HRS 360 CY Below: so CY/HR 7 HRS 42 HRS 7 HRS 7 HRS 7 HRS 7 ·HRS 7 HRS MATERIAL COST LABOR HOURS +--------------------+ +---------------+ UNIT TOTAL UNITS TOTALS $759.06 $72,111 4.000 380.0 $0.75 $22,500 0.009 257.1 $19.69 $1,870 1.333 126.7 $7,000.00 $21,000 520.000 1,560.0 $7.00 $140 1.000 20.0 $65.00 $5,200 1.000 80.0 $107.00 $4,280 1.000 40.0 $141.00 $5,640 2.000 80.0 $1.25 $450 $7.00 $49 1.000 7.0 $65.00 $2,730 1.000 42.0 $107.00 $749 1.000 7.0 $107.00 $749 1.000 7.0 $58.00 $406 1.000 7.0 $30.00 $210 1.000 7.0 1.000 7.0 Pa9e 4 TOTAL LABOR COST $15,580 $10,543 $5,193 $63,960 $820 $3,280 $1,640 $3,280 $287 $1,722 $287 $287 $287 .$287 $287 CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $87,691 $33,043 $7,064 $84,960 $960 $81480 $5,920 $8,920 $450 $336 $4,452 $1,036 $1,036 $693 $497 $287 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Ine. Lil'IB • 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 us 146 147 148 149 150 WORK DESCRIPTION CONCRBTE REINFORCING FORMS • STRAIGHT TRASHRACK & EMBEDMENTS INTAKE GATE & EMBEDMENTS GATE HOIST (3 TON) & FRAME PREFAB HOUSING ON INTAKE DECK MISC METAL WORK (HANDRAIL,GRATIRG,ET LIGHTING & HEATING STATIONARY SCREENS & GUIDES WORK IN RIVER : CUT Production Rate Load r. Haul roreaan DJB crane • Claa WORK IN RIVER : FILL .Production Rate Load • Haul Foreaan DJB Crane • Claa FIBERGLASS PIPE 24• QUAl'ITITY UNITS 135 CY 5 TONS 3,600 SF 1.5 TONS 1.5 TONS 1 BA 169 SF 1 LS 169 SF 1 LS 180 CY 5 CY/HR 20 HRS 80 HRS 40 HRS 120 CY 5 CY/HR 10 HRS 40 HRS 20 HRS 200 LF MATERIAL COST +--------------------+ UNIT $350.00 $0.35 $1.25 $3,000.00 $3,000.00 $10,000.00 $60.00 $1,000.00 $18.92 $27,000.00 $7.00 $65.00 $98.13 $1.25 $7.00 $65.00 $89.13 $54.85 Page 5 TOTAL $47,250 $2 $4,500 $4,500 $4,500 $10,000 $10,125 $1,000 $3,197 $27,000 $140 $5,200 $3,925 $150 $70 $2,600 $1,783 $10, 971· LABOR HOURS +·--·-----------+ UNITS 2.000 0.014 0.133 34.286 34.286 u.ooo 0.571 24.000 0.288 1.000 1.000 2.257 1.000 1.000 2.000 1.000 TOTALS 270.0 0.1 480.0 51.4 51.4 48.0 96.4 24.0 48.6 20.0 80.0 90.3 10.0 40.0 40.0 200.0 TOTAL LABOR COST $11,070 $3 $19,680 $2,109 $2,109 $1,968 $3,954 $984 $1,994 $820 $3,280 $3,702 $410 $1,UO $1,640 $8,200 CONCEPTUAL COST ESTIMATE DATE: 03-May-91 TOTAL COST TOTAL COST W/0 O'HEAD WITH O'HEAD AND PROFIT AND PROFIT $58,320 $5 $24,180 $6,609 $6,609 $11,968 $14,079 $1,984 $5,191 $27,000 $960 $8,480 $7,627 $150 $480 $4,240 $3,423 $19,171 TAZIMIRA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LIRE • 151 152 WORK DESCRIPTION MASS CONCRETE QUANTITY UNITS 35 CY 153 COFFERDAM CONTIRGERCY @ CONTROL SILL 70x10x20' 154 155 156 157 158 159 160 Sheetinq 61 TORS steel Framing Pulling Sheeting WATERWAY • PENSTOCK FJI.P PIPE 48• EXCAVATION • ROCK 161 Above Itea is Priced Below: 162 Drill • Shoot 163 164 Powder • Access. Drilling 165 Load • Haul 166 167 168 169 170 171 172 Foreman DJB Dozer D9 Hydraulic Excavator Motor Grader EXCAVATION · COMMOR 173 Above Itea is Priced Below: 174 production Rate 175 Load • Haul 176 177 178 179 180 Foreman DJB Dozer D9 Hydraulic Excavator Motor Grader 27,600 LBS 61 TONS 270 LF 4,150 CY 4,150 CY 83 HJI.S 21 HJI.S 168 HJI.S 42 HRS 42 HRS 21 HRS 9,850 CY 100 CY/HR 50 HRS 400 HRS 100 HRS 100 HJI.S 50 HRS MATERIAL COST +--------------------+ UNIT TOTAL $350.00 $759.06 $0.75 $19.69 $114 .as $2.50 $68.00 $7.00 $65.00 $107.00 $141.00 $58.00 $7.00 $65.00 $107.00 $141.00 $58.00 Paqe 6 $12,250 $46,151 $20,700 $1,197 $31,011 $10.375 $51644 $147 $10,920 $41494 $5,922 $1,218 $350 $261000 $10,700 $141100 $2,900 LABOR HOURS +---------------+ UNITS TOTALS 2.000 4.000 0.009 1.333 1.000 2.000 1.000 1.000 1.000 2.000 1.000 1.000 1.000 1.000 2.000 1.000 70.0 243.2 236.6 81.,1 270.0 166.0 21.0 168.0 42.0 84.0 21.0 50.0 400.0 100.0 200.0 50.0 TOTAL LABOR COST $2,870 $91971 $91699 $3,324 $11,070 $6,806 $861 $6,888 $11722 $3,444 $861 $21050 $16,400 $41100 $81200 $21050 CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $15,120 $56,122 $301399 $41521 $42,081 $10,375 $12,450 $1,008 $17,808 $6,216 $91366 $2,079 $2,400 $42,400 $14,800 $22,300 $4,950 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, IRC. by Clark-Graves, Inc. LINE I 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 WORK DESCRIPTION BACKFILL • RANDOM Above Itea is Priced Below: production Rate Load " Haul Po reman DJB Dozer D9 Loader 988 Motor Grader coapactor Grade check BACKFILL • SELECT (COMPAC'l'BD) (Sort Pro• Borrow) Above Itea is Priced Below: production Rate Load " Haul Po reman DJB Dozer D9 Loader 988 Motor Grader Compactor Grade Check QUANTITY UNITS 10,100 CY 100 CY/HR 100 HRS 600 HRS 100 HRS 100 HRS 100 HRS 100 HRS 100 HRS 175 CY 50 CY/HR 4 HRS 24 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS MATERIAL COST LABOR HOURS +---·················+ +·············-·+ UNIT TOTAL UNITS TOTALS $1.25 $12,625 $7.00 $700 1.000 100.0 $65.00 $39,000 1.000 600.0 $107.00 $10,700 1.000 100.0 $107.00 $101700 1.000 100.0 $58.00 $5,800 1.000 100.0 $30.00 $3,000 1.000 100.0 1.000 100.0 $1.25 $219 $7.00 $28 1.000 4.0 $65.00 $1,560 1.000 24.0 $107.00 $428 1.000 4.0 $107.00 $428 1.000 4.0 $58.00 $232 1.000 4.0 $30.00 $120 1.000 4.0 1.000 4.0 Page 7 TOTAL LABOR COST $4,100 $24,600 $4,100 $4,100 $4' 100 $4,100 $4,100 $164 $!184 $164 $164 $164 $164 $164 CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $12,625 $4,800 $63,600 $14,800 $14 '800 $9,900 $7,100 $4,100 $219 $192 $21544 $592 $592 $396 $284 $164 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LINE • WORK DESCRIPTION QUANTITY MATERIAL COST +------------------··+ UNITS UNIT TOTAL LABOR HOURS +·--------------+ UNITS TOTALS TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT =z•a=====••=••===••===•=••z=•a•••===m==•==~========================•=======•==~===•====•========•====•=•=••===••=•=======•==s====•============ 211 CRUSHED ROCK BEDDING 90 CY $45.00 $4,050 $4,050 212 (Import for Dillingham) 213 Above Itea is Priced Below: 214 production Rate 25 CY/HR 215 Load • Haul 216 Foreman 4 HRS $7.00 $28 1.000 4.0 $164 $192 217 DJB 12 HRS $65.00 $780 1.000 12.0 $492 $1,272 218 Loader 988 4 HRS $107.00 $428 1.000 4.0 $164 $592 219 Motor Grader 4 HRS $58.00 $232 1.000 4.0 $164 $396 220 Compactor 4 HRS $30.00 $120 1.000 4.0 $164 $284 221 Grade Check 4 HRS 1.000 4.0 $164 $164 222 223 224 WATERWAYS -TAILRACE 225 EXCAVATION . TALUS OPER CU'l' 1,900 CY 226 Above Item is Priced Below: 227 production Rate 25 CY/HR 228 Foreman 40 HRS $7.00 $280 1.000 40.0 $1,640 $1 '920 229 Sm.Hydraulic: Ezcavator 80 HRS $60.00 $4,800 2.000 160.0 $6,560 $11,360 230 Laborer 40 CRW·HRS 6.000 240.0 $91840 $9,840 231 Craning 40 HRS $89.13 $3,565 2.000 80.0 $3,280 $6,845 232 233 ROCK EXCAVATION, TUNNELS 275 CY $1,100.00 $302,500 $302,500 234 CONCRETE, TUNNEL LINING 200 CY $425.00 $85,000 6.000 1,200.0 $49,200 $1341200 235 STRUCTURAL STEEL, TUNNEL SUPPORT 18,400 LBS $0.75 $13,800 0.009 157.7 $6,466 $20,266 236 FORMS -CURVED 1,325 SF $2.00 $2,650 0.173 229.7 $9,416 $12,066 237 FORMS -S'l'RAIGH'l' 725 SF $1.25 $906 0.133 96.7 $3,963 $4,870 238 REINFORCING, 'l'URNEL LINING 20,500 LBS $0.35 $7,175 0.014 292.9 $12,007 $19,182 239 FIBERGLASS PIPE 48" 68 LF $114.85 $7,810 1.000 68.0 $2,788 $10,598 240 Paqe 8 TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LINE * WORK DESCRIPTION QUANTITY MATERIAL COST +·-------------------+ UNITS UNIT TOTAL LABOR HOURS +---------------+ UNITS TOTALS TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT c===============•======•=•=================•===========================•========•===========•=======•========•=•========••==================== 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 .257 258 259 260 261 262 263 COFFERDAM (50'Sqx25'D Sheeting Steel Framing Pulling Sheeting Laborer craning 38PSF) 95 TONS 30,000 LBS 95 TONS 40 CRW-HRS 40 HRS $759.06 $72,111 4.000 380.0 $15,580 $87,691 $0.75 $22,500 0.009 257.1 $10,543 $33,043 $19.69 $1,870 1.333 126.7 $5,193 $1,064 6.000 240.0 $9,840 $9,840 $89.13 $3,565 2.000 80.0 $3,280 $6,845 264 .................................................................... ,. ...................................................................... . 265 266 SUBTOTAL: WATERWAYS $1,098,785 11,309.6 $463,695 $1,562,480 261 ----------------------··------·················-----------------············------------·····----------------------------------------- 268 DIVISION SUB-TOTAL WITH OVERHEAD AND PROFIT: $1,263,603 $533,249 $1,796,852 269 LABOR RATE FOR THIS DIVISION: $41.00 PER HOUR 210 --------------------------------------------------------------------------------------------------·-·····-·······----------·-········· Page 9 rAZIMIBA RIVER HYDROELECTRIC PROJECT Prepared tor HDR ENGINEERING, INC. by Clark-Graves, Inc. L:INE * 271 WORK DESCRIPTION 272 TURBINES • GENERATORS 273 274 2 UNITS INSTALLED INCLUDING QUANTITY 275 LINESHAFT, WATER COLUMN, • INLET VALVES 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 1 LS UNITS MATER:IAL COST LABOR HOURS +--------------------+ +---------------+ UNIT TOTAL UNITS TOTALS $776,000.00 $776,000 TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $776,000 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT 294 295 ................................................................................................................................................. 296 297 298 299 300 SUBTOTAL: TURBINES • GENERATORS $776,000 $776,000 DIVISION SUB-TOTAL WITH OVERHEAD AND PROFIT: $892,400 $892,400 LABOR RATE FOR THIS DIVISIOB: $41.00 PER HOUR· ---------·-···---------------------·-----------------·-----------------------------·-----------------·--·-----·--------------------·-- Page 10 TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, IBC. by Clark-Graves, Inc. LIRE tl 301 WORK DESCRIPTION 302 ACCESSORY ELECTRICAL EQUIPMEST 303 304 SWEC COST CORVB HTG-124.0 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 ...... ...... 323 PANELS Inflation 1986 to 1991 19.45\ QUANTITY 1 LS 1 LS 1 LS UNITS MATERIAL COST LABOR HOURS +--------------------+ +·--------------+ UBIT TOTAL UNITS TOTALS $160,000.00 $160,000 $140,000,00 $140,000 $58,400.00 $58,400 TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $160,000 $140,000 $58,400 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT 324 ••••••.••..•••••••••••.•••••••••••.•••.••••..••..•••••••••.••••..••••••••.•••••••.•••••••••••••••••••.••••••••••••.•••••.•••••••.•••••• 325 326 SUBTOTAL: ACCESSORY ELECTRICAL EQUIPMEBT $358,400 $358,400 327 -------------------------------------------------------------------------------------------------------------------------------------- 328 DIVISION SUB-TOTAL WITH OVERHEAD AND PROFIT: $358,400 $358,400 329 LABOR RATE FOR THIS DIVISION: $41.00 PER HOUR 330 ------------------------------------------------------------······-------------------------------------------------------------------- Page 11 TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LIRE I 331 WORX DESCRIPTION 332 MISC POWERPLANT EQUIPMERT 333 334 SWEC COST CORVE HTG-124.0 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 353 Inflation 1986 to 1991 19.45' OVERHEAD CRANE (4 TON) QUANTITY 1 LS 1 LS 1 EA UNITS MATERIAL COST LABOR HOURS +-·-----···-·-··-----+ +------·········+ UNIT TOTAL UNITS TOTALS $65,000.00 $65,000 $12,600.00 $12,600 $50,000.00 $50,000 TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: 03-May-91 TOTAL COST TOTAL COST W/0 O'HEAD WITH O'BEAD AND PROFIT AND PROFIT $65,000 $12,600 $50,000 3 54 .......................................................................................................................... ,. ....... '"' ......... .. 355 356 SUBTOTAL: MISC POWERPLANT EQUIPMERT $127,600 $127,600 357 -···------------··············-----------·------------·····--··········-·········--------··-----------------------------------·--·--·- 358 359 DIVISION SUB-TOTAL WITH OVERHEAD ARD PROFIT: LABOR RATE FOR THIS DIVISIOR: $41.00 PER HOUR $127,600 $127,600 360 --------------------·-----------··---------·---···--·········-------------------·········--·--··············-······--········-·····-·· Page 12 TAZIMINA RIVER HYDROELECTRIC PROJECT CORCEPTUAL COST ESTIMATE Prepared for HDR ENGINEERING, IRC. by Clark-Graves, Inc. DATE: 03-May-91 =====•=============•=====•=•========••===•=•===========~==================================•==========•••=====m===•=•=••======================= LIRE • 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 WORK DESCRIPTION ROADS ROADWAY CONSTRUCTION TOP WIDTH ASSUME A 3' AVG LIFT CLEARING EXCAVATIOR Haul to Waste Production Rate haul units Total Production Rate Above Item is Priced roreaan DJB Haul Units Dozer D9 Loader Coapac:tor Grade Check FILL -BORROW HAUL Production Rate haul units Total Production Rate Above Ite• is Priced roreaan DJB Haul Units Loader QUANTITY UNITS 9 MILES 16 LF ABOVE AN EXISTING TERRACE 52 AC 24,640 CY 43 CY/HR/URT 5 EA 216 CY/HR Below: 114 HRS 572 HRS 229 RRS 114 HRS 114 HRS 114 HRS 116,160 CY 87,120 CY·MI 43 CY/HR/URT 5 EA 216 CY/HR Below: 539 HRS 2,695 HRS 539 HRS MATERIAL COST LABOR HOURS +--------------------+ +---------------+ UNIT TOTAL UNITS TOTALS $1,500.00 $78,545 $7.00 $800 1.000 114.3 $65.00 $37,157 1.000 571.6 $107.00 $24,467 1.000 228.7 $107.00 $12,233 1.000 114.3 $30.00 $3,430 1.000 114.3 1.000 114.3 $1.25 $145,200 $7.00 $3,773 1.000 539.0 $65.00 $175,169 1.000 2,694.9 $107.00 $57,671 1;000 539.0 Page 13 TOTAL LABOR COST $4,688 $23,438 $9,375 $4,688 $4,688 $4,688 $22,098 $110,491 $22,098 TOTAL COST W/0 O'HEAD AND PROFIT $78,545 $5,488 $60,595 $331842 $16,921 $8,117 $4,688 $145,200 $25,871 $285,661 $79,769 TOTAL COST WITH O'HEAD AND PROFIT ~--~·-===•===~---··········-~-----------·-·==·====··=·=-====·-·==··==·=====··===··=·=·=-··=========·············-·-·=··--·--·-····====•====·=- TAZIMIRA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, IRC. by Clark-Graves, Inc. LIRE • WORK DESCRIPTION Co•pactor Grade Check GRADING • MAIRTERANCE Pore•an aotor grader Water Truck PIT DEVELOPMENT Above It•• is Priced fore•an Dozer d9 Loader DJB Haul Units seeding ROAD DRAINAGE ' 300' Above Ite• ia Priced 2t• C•p Thaw Pipes SMALL BRIDGE 10' SPAR Below: SPACING Below: QUANTITY 539 HRS 53.9 HRS 50 BRS 200 HRS 200 HRS 3 EA 90 HRS 180 HRS 30 HRS 60 HRS 15 AC f,f2f LP f,f2f LP 158 EA 1 EA UNITS MATERIAL COST +--------------------+ UNIT TOTAL $30.00 $7.00 $58.00 $35.00 $7.00 $107.00 $107.00 $65.00 $5,000.00 $U.80 $115.00 $50,000.00 $16,169 $350 $11,600 $7,000 $630 $19,260 $3,210 $3,900 $75,000 $65,f75 $18,170 $50,000 LABOR HOURS +---------------+ URITS TOTALS 1.000 539.0 1.000 539.0 1.000 50.0 1.000 200.0 1.000 200.0 ' 1. 000 90.0 1.000 180.0 1.000 30.0 1. 000 60.0 TOTAL LABOR COST $22,098 $22,098 $2,050 $8,200 $8,200 $3,690 $7,380 $1,230 $2.460 0.593 2,622.8 $107,535 f.OOO 632.0 $25,912 7U. 286 7U.3 $29,286 CORCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $38,268 $22,098 $2,f00 $19,800 $15,200 $«,320 $26,640 $f,UO $6,360 $75,000 $173,010 $U,082 $79,286 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT 391 392 393 39f 395 396 397 398 399 tOO Ul f02 f03 Uf f05 f06 f07 fOB f09 uo H1 412 413 Uf us U6 U7 UB 419 uo ...................................................................................................................................... SUBTOTAL: ROADS BASED OR 10 MILES $809,211 10,887.6 $ff6,390 $1,255,600 AVERAGE URIT PRICE POR THIS DIVISION IS: $1ff39f.02 PER MILES DIVISIOR SUB-TOTAL WITH OVERBIAD AND PROFIT: $930,592 $513,H8 $1,U3,9f0 LABOR RATE FOR THIS DIVISIOR: $f1.00 PER HOUR ·-------------------------·-·--------------------------------------------------------------·-----·-··------------------------·-------- Paqe 1f TAZIMXNA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LIRE • WORK DESCRIPTION QUANTITY MATERIAL COST +--------------------+ UNITS UNIT TOTAL LABOR HOURS +---------------+ UNITS TOTALS TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT =~·-=·=====·=====·======····==========·==================·=========================================··=·=====·=·===••========-================= 421 422 SUBSTATION • SWITCHING STATION 423 424 425 426 427 428 429 430 431 432 433 434 435 436 .437 438 439 440 441 442 443 444 445 446 SWITCH YAR~ EQUIPMENT • TRANSFORMER Inflation 1986 to 1991 19.45' SUBTOTAL: SUBSTATION • SWITCHING STATION 1 LS 1 LS $50,000.00 $50,000 $50,000 $9,700.00 $9,700 $9,700 $59,700 $59,700 447 -------------------------------------------------------------------------------------------------------------------------------------- 448 DIVISION SUB-TOTAL WITH OVERHEAD AND PROFIT: $59,700 $59,700 449 LABOR RATE FOR THIS DIVISION: $41.00 PER HOUR 450 -------------------------------------------------------------------------------------------------------------------------------------- Page 15 TAZIKINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LINE • 451 WORK DESCRIPTION 452 TRARSMISSION 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 BURIED TRANSMISSION LINE TELEPHONE CABLE 6 PR TRENCHING QUANTITY UNITS 9 MILES 9 MILES 9 MILES MATERIAL COST +--------------------+ UNIT TOTAL $16,000.00 $3,542.88 $3,210.00 $144,000 $31,886 $28,890 LABOR. HOURS +·--------------+ UNITS TOTALS 65.000 35.000 585.0 315.0 180.000 1,620.0 TOTAL LABOR COST $23,985 $12,915 $66,420 CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'HEAD AND PROFIT $167,985 $44,801 $95,310 03-Kay-91 TOTAL COST WITH O'HEAD AND PROFIT 4 7 4 •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 475 476 SUBTOTAL: TRARSMISSION $204,776 2,520.0 $103,320 $308,096 477 ----------·--·-------------------------------···------------··---······---··---------------------------------------------------------- 478 DIVISION SUB-TOTAL WITH OVERHEAD AND PROFIT: $235,492 $118,818 $354,310 479 LABOR RATE FOR THIS DIVISION: $41.00 PER HOUR. 480 -------··---------------------------------------------------------------------------------···----------------------------------------- Page 16 TAZIMIRA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LIRE • WOR~ DESCRIPTION QUANTITY MATERIAL COST +--------··--------··+ UNITS UNIT TOTAL LABOR HOURS +·-····------···+ UNITS TOTALS TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: 03-May-91 TOTAL COST TOTAL COST W/0 O'HEAD WITH O'HEAD AND PROFIT AND PROFIT ==~•===z==========~===•===========•=====••===e•===s===••====================================================================================== 481 482 MOB/DEMOB 483 484 485 FREIGHT EQUIPMENT MOB 486 Equipment Requireaents 487 Dozers 49 488 Crane 80T 489 DJBS 490 Loader 988 491 Coapactor 492 Motor Grader 14G 493 Dozer D6 494 Lowboy 495 Office Trailers 496 Maintenance Shop Units 497 Caap Units 498 Pile Haaaer 499 500 501 502 503 LABOR MOB ~ ROTATIONS SETUP MAINTENANCE SHOP 613 TONS 434 TONS 2 EA 1 EA 4 EA 1 EA 1 EA 1 EA 1 EA 1 EA 2 EA 3 EA 9 EA 1 EA 168 TRIPS 1 JOB $240.00 $147,120 2.286 1,401.1 $57,447 $204,567 $480.00 $208,320 0.857 372.0 $15,252 $223,572 $800.00 $134,654 8.000 1,346.5 $55,208 $189,862 $2,140.00 $2,140 100.000 100.0 $4,100 $6,240 50 4 •••••.•••••.•••••••••••••••••••••.•••••••••••.••••••••••.••••••••••••••••••••••••••••••••••••••••••••••••••••••.•••••.•••••••.••••••.• 505 506 507 508 509 510 SUBTOTAL: MOB/DEMOB $492,234 3,219.7 $132,007 $624,241 ---------------------------------------------------------------------·······----·*·----·4·•···-------------------~-------------------- DIVISION SUB·TOTAL WITH OVERHEAD AND PROFIT: $566,069 $151,808 $717,877 LABOR RATE FOR THIS DIVISIOR: $41.00 PER HOUR -----------·-···--------·-----·------------------------------------·-----··--------·--------------------·-----·--·----------·--------- TAZIMINA RIVER HYDROELECTRIC PROJECT Prepared for HDR ENGINEERING, INC. by Clark-Graves, Inc. LINE I WORK DESCRIPTION QUANTITY MATERIAL COST +--------··--------··+ UNITS UNIT TOTAL LABOR HOURS +---------------+ UNITS TOTALS TOTAL LABOR COST CONCEPTUAL COST ESTIMATE DATE: TOTAL COST W/0 O'READ AND PROFIT 03-May-91 TOTAL COST WITH O'HEAD AND PROFIT ===•====••=•=•======••====•===••===•a========m==========•====~======•===================================•=•==================•================ 511 512 OTHER DIRECT COSTS 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 533 SUPERVISION EXPEDITING SPECIAL FREIGHT ROOM I< BOARD Setup/Disaantle Caap Operations Meals SUBMITTALS SCHEDULING SURVEYING BOND ' INSURANCE 12 12 24,000 Caap 1 12 5,106 100 12 1 1 MTRS $700.00 MTHS $1,200.00 LBS $1.00 LS $25,000.00 MTHS $12,000.00 MDAYS $25.00 HRS $10.00 MTRS $916.67 LS $150,000.00 LS $200,000.00 $8,400 252.000 3,024.0 $123 ,9U $132,384 $14,400 176.000 2,112.~ $86,592 $100,992 $24,000 0.006 137.1 $5,623 $29,623 $25,000 540.000 540.0 $22,140 $47,140 $144 ,ooo 520.000 6,240.0 $255,UO $399,840 $127,641 $127,641 $1,000 1.000 100.0 $4,100 $5,100 $11,000 $11 ,ooo $150,000 $150,000 $200,000 $200,000 53 4 ....................................................................................................................................................... .. 535 SUBTOTAL: OTHER DIRECT COSTS $705,441 12,153.1 $498,279 $1,203,719 536 537 ---------------------------------------------------·----------·-·············------------------------------------------·-------------- 538 DIVISION SUB-TOTAL WITH OVERHEAD AND PROFIT: $740,713 $523,193 $1,263,905 539 LABOR RATE FOR THIS DIVISION: $41.00 PER HOUR 540 -----······························---------····---------···---·-··········-------------------··········-·····················-------- Paqe 18 2. RATEIMPACTSPREADSHEET TAZIMINA HYDROELECfRIC FEASIBILITY Rate Impact Analysis Load Forecast Am..lm!!!;ion• Die!otl S~em Assume!ions Hid~ AssumetJono Community Load Growth 3.6% Fuel E~alation Rate Z.O% Construction Co$t $9,375,000 1')90 Avg. Fuel Pric. $1.20 /gal Funding Life 30 yean Economic Assumptions Fuel Efficiency 12 ltWblgal Annual Debt Service $832.757 Nominal Jnten::st Rate 8.0% Economtc Ufe 10 yean Maintenance Cost $0.08 /kWh AnnuallnOation Rate 5.0% Additional Capacity C~<r $700 /leW Openations Co$t $242.000 Rull>iscount Rate Z.9% Maintenana Cost $0.17 /kWh Startup Date 1995 Base ~ar 1990 Operatioos Cm:t $242.000 H~~·oe s~ificationo F.<eonomic Analysis Period 30 yr 1991-2024 Installed Capacity 700 tW Load Growth Period 30 yr 1991-2024 MOJtimumHead 100 ft Fuel Escalation Period 30 yr 1991-2024 Effociency 79% MOJtimom Capacity/year 5,200.000 tWh 1990 1991 1992 1993 1994 19'15 IU96 19'17 1'198 1999 2000 2001 2002 2003 2004 POWER GENERA110N REOlliREME!IITS Annual System Load (tWh) Z.ll8,000 2.194,248 2.273,241 2.355,078 2.43'l.!!li0 2.527,69'5 2.618.1t'12 2. 712.965 2.810.6.12 2.911.81S 3,016,640 3.125,2.:19 3.237,748 3,354.307 3,475.0012 2 Peat Annua, Load (leW) 420 4JS 451 467 484 501 519 5.1$ 551 sn 598 620 642 66S f.R,Q DIESEL FUEL RATES J Annual Escalation Rate 2.0% 2.0% 2.0% Z.O% 2.0% 2.11% Z.il'll-Z.O% Z.O% Z.O% 2.0% 2.0% 2.0% !0% 4 Fuel Price (1m $/pi) 1.20 1.2.2 I.ZS 1.27 DO 1.32 1.35 1.38 1.41 1.43 1.46 1.49 1.52 !55 !58 DIF.SEL ANALYSIS 5 Finn Capacity (kW) 1.~60 1560 1560 1.560 1.560 1.560 420 9211 020 920 920 9'53 987 1.023 1.060 I> Capacity Additim< (kW) f) 0 f) 0 0 0 .'20 0 0 0 0 JJ 34 36 n 7 Di""'l Fud Use (gallon• I 17*'.500 182,854 IS'l.4J7 196,256 203.322 210.641 .!tS.2.!4 !26.1180 2..'4.21'1 242,651 2St.387 260.437 269.812 279.526 28Q,.I88 8 Capital Casu (1990$) so so $0 $0 so so $224,000 so $0 so so $2.3,184 $24,019 $24.88_1 $2,.1,77'l 9 Fue1Co$U(I990$) $211.!100 $223,813 $2.36.508 $249.9Z.' $264.098 $279.078 $2'14.<>07 $311.6.14 $329,310 $347,989 $361,721 $388,584 $410,625 $4JJ,91S $453,~27 10 M•intena,.,. Casu ( 1990 $) $J49.470 $362.051 SJ75.085 S388.588 $402.577 $417,070 $4.'2.084 $447.63'1 $463.7~4 $480,449 $497,146 $515,664 $534,228 $553.461 S57D85 II Operations C.,u (1990 $) $242.000 5242.000 $242.000 $242.000 SZ4Z.OOO $24Z.OOO $242.000 $242,000 $242,000 $242,000 S24Z.OOO $242.000 $242,000 $242,000 $242.000 12 Total Diesel C.,u (1990$) $803.270 $827.864 $853,593 $880,511 S908,67S S938, 148 $1.192.992 $1.001,274 $1.035,065 Sl, 000.438 $1,107,472 $1,169,433 $1,210,872 $1.254,259 $1,299.691 13 Diese!Cost/tWh(l990$) 11.38 0,38 0 .. 18 0.37 0.37 0.37 0.37 o.n 0.37 •. 37 0.31 0.37 O.J7 0.37 0.37 HYDROPROJECf ANALYSIS 14 Finn Capacity (tW) 1.560 1.560 1,560 1.560 1.560 t,JOO 1.300 l.JOO 1.:100 1,300 1,300 1,300 l,JOO 1,300 1..'100 IS Oi ... l Capacity Additiono (tW) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 f) 16 Hydroelectriic Genm~tion (kWh) 2,401,311 2,487.758 Z.571.317 2,670,100 2.1116.U4 2,~.808 2,968.977 3,cm,!!li0 3.186,591 3,3411,309 17 Di~el G""'""tion (tWh) 2.118.000 2.194,248 Z.213,W 2.355.078 2,439,&60 126,385 130,935 135.648 140,532 145,591 J5e,832 156,262 161.887 161,115 l73,7S3 18 Die!otl Fuel lise (pllons) 176,500 18Z.854 189.437 196,2,.16 203,322 10,532 lo.'lll 11,304 11.711 12.133 12,569 13,02.2 13,491 13,976 14,479 19 Capital Casu (1990 $) $0 $0 $0 so so so $0 $0 $0 $0 $0 $0 so $0 so 20 Annual Debt Servioe (1990$) $0 so $0 $0 so $832.757 $793,102 $755.335 $719.367 UIIS,tll S6S2,487 $621.416 $591,825 $56).643 $536,803 21 Fue1Cosb(1990$) $2!1,!100 $22.3,813 $2.36,508 $249,92.3 $264,098 $13,9'54 $14,745 $15,582 $16,466 $17,399 S18,3e6 SIM!9 $20,531 $21,696 $22.926 2.2 Mainteno,.,. Cosu (1990$) $349,470 $36Z.051 $375,085 $388,588 $402,577 $200,9'52 $208,186 $215,6111 $223,445 $2.31,489 $2.:19,82.3 $148,457 $:!57,401 $266.667 $27(267 2.3 Operations C.,u (1990 $) $242,000 $242.000 $242,000 $24Z.OOO $242,000 $242.000 $242,000 $242,000 $242.000 $242,000 $242.000 $242.000 $242,000 $242,000 $242,000 24 Total Hydro <Mil (1990 $) $803,270 $821,864 $853,593 $880,Slt $908,675 $1,289,663 $1,2SS.OJJ $1,228,598 $1.201,278 $1,176,000 $1.152,696 $1,131,302 SLIII,7S7 $1,094,006 $1,077,996 25 Hydro Cent/kWh (1990$) 0.38 0.38 0.38 0.37 0.37 0.51 0.48 0.45 0.4) uo 0.38 0.36 0.34 0.33 0.31 TAZIMINA HYDROELECTRIC FEASIBILITY Rate Impact Analysis 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 POWER GENERATION REQUIREMEIIITS 1 Annual Sy.t~m Load (kWh) ).600,164 3.1:!9,770 3.864.04! 4.003,147 4,147.260 4.:!96.562 4,451,2.38 4,611,483 4,777.496 4,<149,486 5,127,1;67 5,312.263 S,SOJ.50S 5,701.631 5,'l06.890 2 Peak Annual Load (kW) 714 740 7~ '/Q4 822 852 88) 914 947 981 1.017 1,0S3 1.091 1.131 l, 171 DIF-SEL FUEL RATES ;\ Annual Escalation Ral~t 2.0% 2.~ !O'l· 2,0% 2.0% 2,0% 2.0% 2.0% 2.0% 2.6% 2.6% 2.0% 2.0% 2.0% 2.0% 4 Fuel Pric. (1<IQO}$/gal) 1.62 l.h5 l.t.R 1.71 1.75 1.78 1.82 1.86 1.89 1.9~ 1.'17 2.01 2.0S 2.09 2.1.1 DIF~'iEL ANALYSIS S Finn Capacity (kW) 1.098 1.1.17 l.l7R 1.221 1,265 1.310 1}58 1.406 1.~51 1.509 1564 1.620 1,678 1,7)9 1.801 n Capacity Additi<>n< (kWJ 38 40 ~I H ~4 46 47 4'1 51 52 54 56 58 M 63 7 Diesel Fuel u,., (~lion<) ~.Ill~ ~10.814 3.22J.IIt~ )_1,1,596 ~45,M5 ~58,047 .170.9.17 384.290 .198.12.~ 412.457 427,.106 442.689 458,625 475,136 492.241 8 Capital Cost! ( 1'190$) $26,707 $27.6ft9 $28,M5 $19,1197 S30.7M $.11,873 $33,021 $34,209 $)5.441 $36.717 $38,039 SJ9,.Q $40,827 $42.296 $43,819 9 Fue1Cost<(l'190$) S484.m $512.017 $541.05'1 S571.748 $60-l.l78 $638,446 $1\74,659 $712.926 $753.363 $7<1i\,094 5841.248 $888,964 $939.386 $992,668 $1.0>1&972 I 0 Maintenane< ("'IS ( 1990 $) $$94,027 $615,412 $1\,17,5(>7 5660.51'1 Sl\84.298 $108,9)) $734,454 $760.8'15 $788287 1'11111.665 S846.fJ6.5 $876.52.1 $908,078 $<)40,769 $974.637 11 ()p<Tations Cosu (1990 $) $242,000 $242.0!10 $242.0!'•• $242.000 $242.000 $242.000 $242.0!'10 $242.000 $242,000 $242,000 $242.000 $242.000 $242.000 $242.000 $242,000 12 Total Diese1Cosu(I990S! $1,347,269 $Ufl7,098 $1.44'1.2'11 $1,5113.'164 $1,561.241 $1,621.252 $1,684.Ll4 $1,7.50,030 $1.819,091 Sl.891.476 $1,967.352 $2,046,895 S2.1J0.291 SUI7,133 $2.309,428 13 Diesel f""UkWh (1990 $) 0.37 O.H 11..18 0 . .18 0.38 0.38 O.JS 0.38 0.38 0.38 0.38 0.39 0.39 0.39 0.39 HYDROPROJECT ANALYSIS 14 Finn Capacity (kW) 1.300 1.300 l,)()tl uoo 1.347 1.395 1,446 1,498 t.m 1,607 1,665 1,725 1,181 1.852 1,918 IS Diesel <"-'<padty Additions (tW) 0 0 II 0 41 48 50 52 54 56 58 60 62 64 67 16 Hydroele<:~ric Generntioo (tWh) 3,4101$6 3.543.281 3.670.1141) 3,1l02.990 ),939,897 4.08l.734 4,W!,676 4,380.908 4.538.621 4.1112.012 4,871.284 5,200,000 5,200,000 5,200,000 5,200.000 17 DieselGeneration(tWh) 180,008 180.488 193.20! 200,157 207.363 214,828 222.562 2.10,574 2.18,87$ 247.474 256,383 112.263 JOO.SOS 501,631 706.890 18 Diesel Fuel Usc (gallon•) 15.001 15541 16.100 16,680 17,280 17,902 111.547 19.215 19,906 20,623 21,365 9,355 25,292 41,803 511.907 19 Capitol Costs (1990$) $0 $0 so $0 $32.760 $)),939 $35.161 $36.427 $37,738 $393,097 $40,504 $41,963 $43,47) S4S,038 $46,660 20 Annual Debt Sen-ice (1990 $) $511.241 $486,896 $46.1,710 $441.629 $420.599 $400,510 $381.496 . $36),329 $346.028 $329,550 $313,857 Sl'JII,912 $284,678 $271,122 $2511.211 21 Fuel Cos!J ( 1990 $) $24,227 $25,601 $27.053 $28,587 $30,209 $31,922 $33,733 $35,646 $37,668 $39,805 $42,062 $18.786 SS1,80S S87,JJS $125,533 22 M>inlenanc:e Cosu ( 1990 $) $2&1.213 $296,517 $307,191 $318,250 $329,707 S341,m $353,87) $366,613 $379,811 $393,484 $407.650 $406.523 $440,078 $472.769 $506,6)7 23 Op<ratiom Costs (1990 $) $242,000 $242.000 $242.000 $242.000 $242,000 $242.000 $242.000 $242.000 $242.000 Sl42.000 $242,000 $242.000 $242.000 $242.000 $242.000 24 Total Hydro C'.oou (1990 $) $1,063,680 SI,OS1,013 $1,039,955 $1,030,467 SI,OS5,27S Sl,OS0,009 SI,046,:ul $1,044,015 $1,1)43,245 $1.397,936 $1,046,074 $1,010.184 $1,062.034 $1,118,264 $1.179,040 25 Hydro CostJkWh (1990 S) 0.30 0.28 0.27 0.26 0.25 0.24 0.24 0,2) 0.22 0.28 0.20 0.19 0.19 0.20 0.20 TAZIMINA HYDROELECTRIC FEASIBILITY Rate Impact Analysis 2020 2021 2022 2023 2024 2025 POWER GENERATION REQUIREMENTS Annual SY't<m Lood (kWh) ~.ll'l5J8 6.H9.841 6,5<\8,075 6.004526 7.049.489 7.J4J~.27l 2 Peak Annual Load (kW) 1.l14 l,l$7 U02 1.349 1,39!\ 1.448 DIESEL FIJEL RATES 3 Annual Escalation Rate :!.~ !.0% 2.0% 2.0% 2.0% 2.0% 4 Fuel Price (1"911 Sigal) 2.17 .!.!! 2.26 !31 2.35 2.40 DIESEL ANALYSIS 5 Finn Capacity (kW) I.SM 1.93.1 2.1103 2.1175 !.ISO 2.227 li Capacity Additions (kW) ~s 67 70 n 75 77 7 Di..,.el Fuel Use (gallon•) SIN ..... ! 52RJ20 547 . .140 567.<•14 587.457 ~.<Ilk\ 8 Capital Costs ( 1990 $) $4\.1<11 $47.1!31 $48,724 $56.478 $52,295 $54,178 9 Fuel Cmts (1990 $) $1.1118.470 S1.17U42 SL!.17,180 $1,.107.91<7 $1.382.176 $1.46057.\ 10 Maintenanco C:osu (1990 $) $Ul09.7Z4 $1.1141>.1174 $1,(18.1.7}2 $1,122.747 $1.163,166 $1..?05.040 11 OJ"'rntions emu ( 1"911$) SZ42.000 $242.000 $242.000 S242,000 $242.000 SNZ.OOO 12 Total Diesel Costs (1990 $) $2.405.590 $2.506.447 S2.~12.2J7 $2.723.212 S2.8..l9.6.l7 $2,961.791 D Di...el CostikWI! (1990 $) tD9 0.40 0.40 0.'10 0.411 0.41 HYDROPROJE.CT ANALYSIS 14 Finn Capacity (kW) l.ll87 2.059 2,1JJ 2,210 2,289 2.372 IS Diesel Capacity Additions (kW) (.,Q n 74 77 110 82 16 Hydroefectri<: Generation (kWh) 5.200.000 \200,000 uoo.ooo 5,200.000 5.200.000 5,200,000 17 Diesel Generation (kWh) 919.5J8 1.1.'9.841 1,J<\8,075 1,604,526 1,849,489 2,103,271 18 Diesel Fuell.l,. (gallons) 76.628 94.ll87 114.001\ 133,711 154,1l4 175,273 19 Capital emu {1990 S) $48,339 $50,0110 $51,1182 $53,750 $55,685 $57,690 20 Annual Debt SerW:e ( 1990 $) $245,916 $234.205 $223,0~3 $212,431 so $0 21 Fuel Costs (1990 Sl $166,562 $210.596 sz_~7.st9 S3118.4l7 $362,62.~ $420.6)1 22 Maintenaneef'.osts (1990$) $541,724 $578,074 $615,732 $654,747 5695,166 $737,040 23 C¥rations emu { 1990 $) $242.000 $242.000 5242.000 $242,000 $242.000 $242.000 24 Total Hydro Costs (1990 $) $1,244.5411 $1,314,954 $1,390,487 $1,471,355 $1,355,476 $1,457,360 25 Hydro CostikWI! (1990 $) 0.20 0.21 0.21 0.22 0.19 0.20 3. PRESENT WORTH OF AVOIDED PCE PAYMENTS S:PREADSHEET TAZIMINA HYDROELECTRIC FEASIBILITY PCE Analysis Construction cost reduced by State of Alaska grant of $4 million to eliminate rate shock in the initial years of the hydro projecl POWER GENERATION REQUIREMENTS I Annual System Load (~Wh) 2 Pea~ Annual Load (~W) DIESEL FUEL RATES J Annual Escalation Rate (%} 4 Fuel Price (1990 $/gal) DIESEL ANALYSIS 5 Firm Capacity (~W) 6 Capacity Additions (kW) Diesel Fuel Use (gallons) 8 CapiU!I Costs (1990 $) 9 Fuel Costs (1990 $) 10 Maintenance Costs (1990 $) II Operations Costs (1990 $) 12 ToU!I Diesel Costs (1990 $) 13 Diesel Cosl/kWh (1990 $) HYDROPROJECT ANALYSIS 14 Finn Capacity (tW) 15 Diesel Capacity Additions (tW) 16 Hydroelectric Generation (kWh) 17 Diesel Generation (~Wh) 18 Diesel Fuel Use (gallons) 19 CapiUII Costs (1990 $) 20 Annual Debt Service (1990$) 21 Fuel Costs (1990 $) 22 Maintenance Costs (1990 $) 23 Operations Costs (1990 $) 24 Total Hydro Costs (1990 $) 25 Hydro Cosl/kWh (1990 $) 26 Cost Difference/tWh (1990 $) 27 Total Cost Difference/year (1990 $) 1990 2,118,000 420 1.20 1.560 0 176.500 $0 $211.800 $349.470 $242.000 $803,270 0.38 1,560 0 2,118,000 176,500 $0 $0 $211,800 $349,470 $242,000 $803,270 0.38 1991 2,194,248 435 2.0% 1.22 1.560 0 182.854 $0 $223,813 $362,051 $242,000 $827,864 0.38 1,560 0 2,194,248 182,854 $0 $0 $223,813 $362,051 $242,000 $827,864 0.38 Load Forecast Assumptions Community Load Growth F..conomic Assumptions Nominal Interest Rate Annual Inflation Rate Real Discount Rate Base year F..conomic Analysis Period Load Growth Period Fuel Escalation Period 1992 2,273,241 451 2.0% 1.25 1,560 0 !89,437 $0 $2.36,508 $375,085 $242,000 $853,593 0.38 1,560 0 2,273,241 189,437 $0 $0 $236,508 $375,085 $242,000 $853,593 0.38 1993 2,355,078 467 2.0% 1.27 1.560 0 196,256 $0 $249,923 $388,588 $242,000 $880,511 0.37 1,560 0 2,355,078 196,256 $0 $0 $249,923 $388,588 $242,000 $880,511 0.37 28 Cummulative Present Value of avoided PCE payments @ 0.0% diseount rate 29 Cummulative Present Value of avoided PCE payments@ 3.0% diseount rate 3.6% 8.0% 5.0% 2.9o/o 1990 30 yr 1991-2024 30 yr 1991-2024 30 yr 1991·2024 1994 2,439,860 484 2.0% 1.30 1,560 0 203,322 $0 $264,098 $402,577 $242,000 $908,675 0.37 1,560 0 2,439,860 203,322 $0 $264,098 $402,577 $242,000 $908,675 0.37 1995 2,527,695 501 2.0o/c 1.32 1,560 0 210,641 $0 $279,078 $417,070 $242,000 $938,148 0.37 1,300 0 2,401,311 126,385 10,532 $0 $481,001 $13,9S4 $200,952 $242,000 $937,906 0.37 0.00 $241 $150 $150 Diesel System Assumptions Fuel Escalation Rate 1990 A vg. Fuel Pri"" Fuel Efficiency F..conomic Life Additional Capacity Cost Maintenance Cost Operations Cost 1996 2.618.692 519 2.0o/c 1.35 920 320 218,224 $224,000 $294,907 $432,084 $242,000 $1,192,992 0.46 1,300 0 2,487,758 130,935 10,911 $0 $458,096 $14,745 $208,186 $242,000 $923,027 0.35 0.10 $269,964 $167,528 $162,653 1997 2. 712,965 538 2.0% 1.38 920 0 226,080 $0 $311,634 $447,639 $242,000 $1,001,274 0.37 1,300 0 2,577,317 135,648 11,304 $0 $436,282 $15,582 $215,681 $242,000 $909,544 0.34 0.03 $91,730 $224,400 $216,260 2.0% $1.20 /gal 12 ~Wh/gal 12 years $700 /kW $0.17 /kWh $242.000 1998 2,810,632 557 2.0% 1.41 920 0 234,219 $0 $329.310 $463.754 $242,000 $1,035,065 0.37 1.300 0 2,670,100 140.532 11,711 $0 $415,506 $16,466 $223,445 $242,000 $897,417 0.32 0.05 $137,648 $309,741 $294,360 1999 2,911,815 571 2.0% 1.43 920 0 242,651 $0 $347,989 $480,449 $242,000 $1,070,438 0.37 1,300 0 2, 766,224 145,591 12,133 $0 $39S,720 $17,399 $231,489 $242,000 $886,609 0.30 0.06 $183,829 $423,716 $395,624 2000 3,016,640 598 2.0% 1.46 920 0 251,387 $0 $367,727 $497,746 $242,000 $1,107,472 0.37 1,300 0 2,865,808 150,832 12,569 $0 $376,877 $18,386 $239,823 $242,000 $877,086 0.29 0.08 $230,387 $566,555 $518,839 Hydroproject Assumptions Construction Cost Funding Life Annual Debt Service Maintenance Cost Operations Cost Startup Date $5,415,000 30 years $481,001 $0.08 /~Wh $242,000 1995 Hydroproject Specifications Installed Capacity Maximum Head Efficiency Maximum Capacity/year 2001 3,125,239 620 2.0% 1.49 953 33 260,437 $23,184 $388,584 $515,664 $242,000 $1,169,433 0.37 1,300 0 2,968,977 156,262 13,022 $0 $358,930 $19,429 $248,457 $242,000 $868,816 0.28 0.10 $300,617 $752,938 $674,931 2002 3,237,748 642 2.0% 1.52 987 34 269,812 $24,019 $410,625 $534,228 $242,000 $1,210,872 0.37 1,300 0 3,075,860 161,887 13,491 $0 $341,838 $20,531 $257,401 $242,000 $861,770 0.27 0.11 $349,101 $969,381 $850,919 700 kW 100 ft 79% 5,200,000 kWh 2003 3,354,307 665 2.0o/c 1.55 1,023 36 279,526 $24,883 $433,915 $553,461 $242,000 $1,254,259 0.37 1,300 0 3,186,591 167,715 13,976 $0 $325,560 $21,696 $266,667 $242,000 $855,923 0.26 0.12 $398,336 $1,216,349 $1,045,878 2004 3,475,062 689 2.0o/c !58 1,060 37 289,588 $25,779 $458,527 $573,385 $242,000 $1,299,691 0.37 1,300 0 3,301,309 173,753 14,479 $0 $310,057 $22,926 $276,267 $242,000 $851,251 0.24 0.13 $448,440 $1,494,382 $1,258,968 Construction cost reduced by State of Alaska grant of $4 million to eliminate rate shock in .the inilial years of the hydro project POWER GENERATION REQUIREMENTS I Annual SY"tem Load (~Wh) 2 Peak Annual Load (kW) DIESEL FUEL RATES 3 Annual Escalation Rate (%) 4 Fuel Price (1990$/gal) DIESEL ANALYSIS Firm Capacity (kW) 6 Capacity Additions (~W) 7 Diesel Fuel Use (gallons) 8 C..apital Cost> (1990 $) 9 Fuel Costs (1990 $) 10 Maintenance CO\Its ( 1990 $) 11 Operations Cost> (1990 $) 12 Total Diesel Cost> (1990 $) 13 Diesel Cosvt:Wh (1990$) HYDROPROJECT ANALYSIS 14 Firm Capacity (kW) 15 Diesel Capacity Additions (kW) 16 Hydroelectric Generation (kWh) 17 Diesel Generation (kWh) 18 Diesel Fuel Use (gallon•) 19 Capital Cosio (1990 $) 20 Annual Debt Service (1990$) 21 Fuel Cost> (1990 $) 22 Maintenance Cost> (I 990 $) 23 Operations CosLI (I 990 $) 24 TotAl Hydro CosLI (1990 $) 25 Hydro Cosvt:Wh (1990 $) 26 Cost DifferenoelkWh (1990$) 27 Total Cost Difference/year (1990 $) 28 C'.ummulative Present Value of avoided PCE 29 Cummulative Present Value of avoided PCE 2005 3,600,11>4 714 2.0% 1.62 1,098 38 300,014 $26,707 $484.535 $594,027 $242,000 $1,347,269 0.37 1,300 0 3,420,156 180,008 15,001 $0 $295,293 $24,227 $2.86,213 $242,000 $847,732 0.24 0.14 $499,536 $1,804,095 $1,489,423 2006 2007 2008 :1,729.770 3,864,042 4,003,147 740 766 794 2.0% 2.0% 2.()% 1.65 1.68 1.71 1.137 1.178 1.221 40 41 42 310.814 322,003 333.596 $27,669 $2.8,665 $29,697 $512,017 $541.059 $571,748 $615.412 $637567 $660,519 $242,000 $242,000 $242,000 $1,397,098 $1,449,291 $!,503,964 0.37 0.38 0.38 1,300 !,300 1,300 Q 0 0 3,543.281 3,670,1!40 3,802,990 186,488 193,202 200.157 15,541 16,100 16,680 $0 so $0 $281,231 $267,839 $255,085 $25,601 $27,053 $28,587 $296,517 $307,191 $318,250 $242,000 $242,000 $242,000 $845,349 $844,083 $843,922 0.23 0.2.2 0.21 0.15 0.16 0.16 $551,749 $605,207 $660,041 $2,146,179 $2,521,408 $2,930,633 $1,736,552 $1,999,730 $2,278,393 2009 20!0 2011 2012 4.147,260 4,296,562 4,451,238 4,611,483 822 852 883 914 2.0% 2.0% 2.0% 2.0% 1.75 1.78 1.82 1.86 1,265 1,310 1,358 1,406 44 46 47 49 345,605 358,047 370,937 384,290 $30,766 $31,873 $33,021 $34,209 $604,178 $638,446 $674,659 $712.926 $684,298 $708,933 $734,454 $760,895 $242,000 $242,000 $242,000 $242,000 $1,561,241 $1,621,252 $1,684,134 $1,750,030 0.38 0.38 0.38 0.38 1,347 1,395 1,446 1,498 47 48 50 52 3,939,897 4,081,734 4,l28,676 4,380,908 207,363 214,828 2.22,562 23(),574 17,280 17,902 18,547 19,215 $32.760 $33,939 $35,161 $36,427 $242,938 $231,369 $2.20,352 $209,859 $30,209 $31,922 $33,733 $35,646 $329,707 $341,517 $353,813 $366,613 $242.000 $242,000 $242,000 $242,000 $817,614 $880,808 $885,119 $890,545 0.21 0.21 0.20 0.19 0.16 0.17 0.18 0.19 $683,627 $740,+15 $799,015 $859,485 $3,354,482 $3,813,558 $4,308,947 $4,841,8211 $2,558,601 $2,853,2'10 $3,161,980 $3,484,381 20l3 2014 2015 2016 2017 2018 2019 4,777,496 4,949,486 5,127,667 5,312,263 5,503,505 5,701,631 5,906,890 947 981 1,017 1,053 1,091 1,131 1,171 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 1.89 1.93 1.97 2.01 2.05 2.09 2.13 1.457 1,509 1,564 1,620 1,678 1,739 1,801 51 52 54 56 58 60 63 398,12.1 412.457 427,306 442,689 458,625 475,136 492,241 S35,441 $36,717 $38,039 $39,408 $40,827 $42,296 $43,819 $753,363 $796,094 $841,248 $888,964 $939,386 $992,668 $1,048,972 $788,287 $816,665 $846,065 $816,523 $908,078 $940,769 $974,637 $242.000 $242,000 $242,000 $242,000 $242,000 $242,000 $142,000 $1,819,091 $1,891,476 $1,967,352 $2,046,895 $2,130,291 $2.217,733 $2,309,428 0.38 0.38 0.38 0.39 0.39 0.39 0.39 1.551 1,607 1,665 1,725 1,787 1,852 1,918 54 56 58 60 62 64 67 4,538,621 4,702.012 4,871,284 5,200,000 5,200,000 5,200,000 5,200,000 238,875 247,474 256,383 112,263 303,505 501,631 706,890 19,906 20,623 21,365 9,355 25,292 41,803 58,907 $37,738 $393,097 $40,504 $41,963 $43,473 $45,038 $46,660 $199,866 $190,348 $181,284 $172,651 $164,430 $156,600 $149,143 $37,668 $39,805 $42,062 SIS. 786 $51,805 $87,335 $125,533 $379,811 $393,484 $407,650 $408,523 $440,078 $472,769 $506,637 $242,000 $242,000 $242,000 $242.000 $242,000 $242,000 $242.000 $897,083 $1,258,734 $913,500 $883,924 $941,786 $1,003,743 $1,069,972 0.19 0.25 0.18 0.17 0.17 0.18 0.18 0.19. 0.13 0.21 0.2.2 0.2.2 0.21 0.21 $922,008 $632.742 $1,053,851 $1,162,971 $1,188,504 $1,213,991 $1,239,456 ss.4u,4n S5,805,m $6,459,160 $7,180,202 $7,917,075 $8,669,749 $9,438,212 $3,820,162 $4,043,886 $4,405,651 $4, ?9'3,246 $5,117,815 $5,559,189 $5,937,2.21 Construction cost reduced by State of Alaska grant of $4 million to eliminate rate shock In the Initial years of the hydro project. POWER GENERATION REQUIREMENTS l Annual System Load (kWh) 2 Peak Annual Load (tW) DIESEL FllEL RATES 3 Annual Eacalation Rate(%) 4 Fuel Price (1')9()$/gal) DIESEL ANALYSIS Firm Capacity (kW) Capacity Additions (tW) 7 Diesel Fuel Use (gallons) Capital Costs ( 1990 $) 9 Fuel C.osts (1990$) 10 Maintenance Costs (1990 $) 11 Operations Costs (1990$) 12 Total Diesel Costs ( 1990 $) 13 Die.el C.osrii:Wh (1990$) HYDROPROJECT ANALYSIS 14 Finn Capacity (tW) 15 Diesel Capacity Additions (tW) 16 Hydroelectric Generation (t Wh) 17 Diesel Generation (kWh) 18 Diesel Fuel Use (gallons) 19 Capital Costs (1990 $) 20 Annual Debt Service (1990$) 21 Fuel Costs (1990 $) 22 Maintenance Costs (1990 $) 23 Operations Costs (1990$) 24 Total Hydro C.osts (1990 $) 25 Hydro Costii:Wh (1990$) 26 Cost DiffereneelkWh (1990 $) 27 Total Cost Difference/year (1990 $) 28 Cummulative Present Value or avoided PCE 29 Cummulative Pres.ent Value or avoided PCE 2020 2021 6.119,538 6,339,841 Ul4 1.257 2.0% 2.0% 217 2.22 1,866 1,933 65 67 509,961 528,320 $45,397 $47,031 $].]08,470 $1,171,342 $1,009,724 $1,00i,074 $242,000 $242.000 $2,405,590 $2.506,447 0.39 0.40 1,987 2.059 69 n 5,200,000 5,200,000 919,538 1,139,841 76,628 94,987 $48,339 $50,080 $142,041 $135,277 $166,562 $210,596 $541,724 $578,074 $24Z.OOO $242.000 $1,140,665 $1,216,026 0.19 0.19 0.21 0.20 $1,264,924 $1,2:90,421 $10,222,465 $11,022,526 $6,311,785 $6,682,769 2022 2023 2024 6.568,07~ 6.804526 7,049,489 1,302 1,349 1,398 2fY1<, 2.0% 2.0% 2.26 2.31 2.3.1 2.003 2.075 2.150 70 72 75 547,340 567,044 587,457 $48,724 $50.478 $52,295 $1,2.17.780 $1,307.987 $1.382.176 $1,083,732 $1,122.747 $1.163,166 $242,000 $242,000 $242,000 $2,612.237 $2,723,212 $2,839,637 0.40 0.40 0.40 2,133 2.210 2,289 74 77 80 5,200,000 5,200,000 5,200,000 1,368,075 1,604,526 1,849,489 114,006 133,711 154,124 $51,882 $53,750 $55,68.1 $128,835 $122,700 $0 $257,819 $308,427 $362,625 $615,732 $654,747 $695.166 $242,000 $242,000 $242,000 $1,296,269 $1,381,624 $1,355,476 0.20 0.20 0.19 0.20 0.20 0.21 $1,315,967 $1,341,588 $1,484,162 $11,838,426 $12,670,210 $13,590,391 $7,050,078 $7,413,632 $7,804,107