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Home My WebLink AboutHaines-Skagway Feasibility Study Addendum 1983P.O. BOX2400 SITKA, ALASKA 99835 R. w BECK AND AsSOCIATES, INC ENGINEERS AND CONSUlTANTS TOWER BUILDING 7TH AVENUE AT OLIVE WAY SEATILE, WASHINGTON 98101 206-622-5000 P.0.80Xf>816 KETCHIKAN, ALASKA 99901 FILENO. HH-1559-HG3-BC 3110 January 12, 1983 Mr. Robert Mohn Director of Engineering Alaska Power Authority 334 5th Avenue· Anchorage, Alaska 99501 Dear Robert: Subject: Addendum to the Haines-Skagway Region Feasibility Study Cost of Power Analysis Enclosed are two final copies of the Cost of Power Analysis associated with the Addendum to the Haines-Skagway Region Feasibility Study. As request- ed, this analysis has been prepared in conjunction with the Addendum but is being transmitted as a separate letter report. Financing for the West Creek Project has been assumed under both sug- gested scenarios (60% and 80% state equity) for the purpose of the analysis. The analysis has also been applied to all three load scenarios set forth in the Addendum report. DRM: dch Enclosures Very truly yours, R. W. BECK AND ASSOCIATES, INC. Donald R. Melnick Executive Engineer LIBRARY COPY, R. w. Beck and Associates, Inc. January 12, 1983 Introduction Addendum to Haines-Skagway Region Feasibility Study COST OF POWER ANALYSIS As part of the Addendum to the Feasibility Study for the West Creek Project a cost of power analysis has been prepared. The purpose of this analy- sis is to project the cost of power for Raines Light and Power (HLP) and Alaska Power & Telephone in Skagway (APT) with and without the inclusion of the West Creek Project as a generating resource. The two alternative plans for which the analyses have been performed are: 1. Base Case-continued diesel generation. 2. West Creek-4.5 MW capacity on line January 1, 1987. The analysis has been prepared for each of the three load forecast scenarios defined in the Feasibility Addendum. The West Creek project is assumed to be funded with either 60% state equity and 40% long-term bonds or 80% state equity and 20% long-term bonds. New diesel generators are assumed to be financed with 100% debt financing. It should be noted that the estimated costs of power represented in this analysis are for comparative purposes only as these costs may vary from those currently being experienced by HLP and APT and their customers. Methodology and Assumptions The cost of power for the two alternative plans has been calculated based on the following: 1. The period of analysis is 20 years beginning in 1982. 2. Inflation of operating and capital costs is 7% annually. Diesel fuel costs escalate at an annual rate of 2.5% over and above inflation resulting in a total inflation/escalation rate of 9.5% annually. R. w. Beck and Associates, Inc. January 12, 1983 Cost of Power Analysis Page 2 3. In the Base Case the two utility systems are assumed to operate inde- pendently of each other. 4. Existing generation capability of AP&T is 780 kW hydroelectric and 3,390 kW diesel. HLP has 4,120 kW of diesel capacity. 5. No debt service or depreciation expenses are included for existing generation facilities. 6. The cost of additional diesel capacity is $800/kW in 1982 dollars. New diesel capacity is added in increments of 400 or 500 kW as needed to supply sufficient capacity for load requirements and reserves. 7. Diesel fuel costs are based on $1.16/gallon in 1982 dollars and the fuel usage rate is 12 kWh/gallon. 8. Operation and maintenance costs of diesel generators are assumed to be $120/kW in 1982 dollars. These fixed costs are reduced with the West Creek Project on line to account for mothballing of existing diesel generators. 9. Net credits for offsetting the use of heating oil due to the recovery of waste heat from existing diesel generators is included for the Base Case. 10. Existing diesel generators are assumed to be replaced beginning in 1993 for the Base Case. 11. Construction costs of the West Creek Project are those indicated in the Feasibility Addendum with provisions for inflation applied. No Interest During Construction (IDC) is included to account for assumed state equity provided during construction. The costs for West Creek are as follows: R. w. Beck and Associates, Inc. January 12, 1983 Total Construction Cost (includes inflation during construction) Inflation (1/1/82 -7/1/84) Total Construction Cost Reserve Fund Total Investment Cost Cost of Power Analysis Page 3 $55,326,000 10,196,000 $65,522,000 (1987 dollars) 3,371,000 $68,893,000 (1987 dollars) 12. Operating costs for West Creek are based on 1.3% of total investment cost. 13. Financing of the West Creek Project will be provided with either 60% state equity and 40% long-term debt (35 years, 12% bonds) or 80% state equity and 20% long-term debt. Both of these financing scenarios are analyzed separately. New diesel plant is financed with 100% debt fi- nancing (20 years, 12% bonds). No financing costs have been included. A reserve fund equivalent to 1 year's level debt service is assumed to be established as security on long-term debt. 14. A debt service coverage factor of 1.1 was assumed. The overall effect of this coverage payment on annual costs is negligible as payments made during a year are made available at the beginning of the next year to reduce annual costs. Results Application of the foregoing assumptions and methodology results in the cost of power in 1982 estimated at 19.1, 17.9 and 17.4 cents/kWh for load Scenarios AA, BB and CC, respectively. The variation in these costs for the different load scenarios is due to the assumed fixed operation and maintenance costs. For each of the respective load scenarios, the power costs of the die- sel and West Creek alternatives is essentially the same through 1986 as the West Creek project is not assumed to come on line until January 1987. A slight difference does exist due to the inclusion of waste heat recovery in the diesel alternative. Increases in power costs from 1982 through 1986 are due solely to assumed escalation and inflation in diesel fuel costs and estimated operation and maintenance expenses. R. w. Beck and Associates, Inc. January 12, 1983 Cost of Power Analysis Page 4 The estimated cost of power for the West Creek alternative is higher than that of the diesel alternative for the first few years of operation of West Creek assuming either AA or BB load forecasts. Diesel costs, however, quickly increase to the point where they become higher than those associated with West Creek. This crossover occurs in 1996 for Scenario AA loads, 1992 for Scenario BB loads and 1991 for Scenario CC loads assuming the 60% state equity case. Under the 80% state equity case, these crossover points occur several years earlier as can be expected. The following table summarizes the results of the cost of power anal- ysis and shows the crossover year at which the cost of power with West Creek becomes less than the cost of power with diesel. Estimated Cost of Power (cents/kWh) Scenario AA Loads Scenario BB Loads Scenario CC Loads West West West West West West Creek Creek Creek Creek Creek Creek Year Diesel 60,40 80,20 Diesel 60,40 80,20 Diesel 60,40 80,20 1982 19.1 19.1 19.1 17.9 17.9 17.9 17.4 17.4 17.4 1987(1) 29.0 54.2 36.3 25.2 39.2 26.3 23.4 32.5 21.8 1992 40.6 55.1 39.1 34.8 33.7 24.0 33.5 29.2 20.7 1997 61.5 57.9 43.6 52.0 33.8 25.5 51.7 30.1 22.8 2001 87.1 62.4 49.0 73.7 35.0 27.7 71.9 34.8 28.2 Crossover Year 1996 1992 1992 1988 1991 1987 (1) Assumes a commercial operation date of January 1, 1987 for the West Creek Project. As indicated by these results, inclusion of the West Creek Project as a resource available to Haines and Skagway essentially levelizes the cost of power throughout the study period. The actual magnitude of this levelized cost is dependent on the level of future load requirements and the type of financing used to fund West Creek. The results are shown in greater detail in Tables 1 through 9 and are displayed graphically in Figures 1 through 3. 90 85 80 75 70 -:t: 3: 65 ~ ....... VJ 1-60 z w g 55 a: w 3: 50 0 0.. 0 45 1- ~ 40 0 35 30 25 20 1 5 1 982 1 984 ADDENDUM TO THE HAINES-SKAGWAY REGION FE ASI Bl LITY STUDY ALTERNATIVES' ESTIMATED COST OF POWER Scenario AA Loads West Creek-60X State Equity --------------- ----· 1 986 ········------------------------ • • • ••• • • • ••• • • • ••• ••• ••• ••• ••• ..... \_ ..... . West Creek-8 0 X State Equity 1988 Base Case-Diesel 1 990 1 992 YEAR 1994 1 996 1998 2000 L-::::0 I» • ::J:!E C• ~tD '<CD (") -~ ?m ::J -a. C'D> (»Cit (.)Cit 0 2. f» -CD Cit . ::J n . "11 G) c ::::0 m ..... 90 85 80 75 70 -:X: ~ 65 ::.c:: ......... (f.l t-60 z w g 55 a: w ~ 50 0 Q.. u.. 45 0 t- ~ 40 0 35 30 25 20 1 5 1 982 1 984 ADDENDUM TO THE HAINES-SKAGWAY REGION FEASIBILITY STUDY ALTERNATIVES' ESTIMATED COST OF POWER Scenario BB Loads Base Case-Diesel ~ West Creek-601 State Equity •••••• ••••••••••• •• ••••• ••• ••••••••• 1 986 1 988 ·········~······· L_ West Creek-801 State Equity 1 990 1 992 YEAR 1 994 1 996 1 998 2000 c...::o ~~ C• !.!:m '<CD n -x- P. ~ -a. C'D> C»Cit c.JCit 0 !?. Ol ... CD Cit - ~ n . .,.. Ci) c: :::0 m 1\) 90 85 80 75 70 -:r 3': 65 ~ ........ (f.) ..... 60 z w g 55 a: w 3': 50 0 0.. ~ 45 ..... ~ 40 o· 35 30 25 ADDENDUM TO THE HAINES-SKAGWAY REGION FE ASI Bl LITY STUDY ALTERNATIVES' ESTIMATED COST OF POWER Scenario CC Loads Base Case-Diesel -- West Creek-60% State Equity ••• ••• 20 ••• •• •••••••• J g1 ...................... \........ • \ __ West Creek-80% State Equity 1 5 1 982 1 984 1 986 1 988 1 990 1 992 YEAR 1 994 1 996 1 998 ••• ••• ••• ••• 2000 C..::IJ I»• ::J=E C• ~m '<a. n -:Ill:' ?,. ::J -a. (Q> <».,. CA».,. 0 £?. I» -G .,. . ::J fJ ::!! G> c: ::IJ m (A» R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: Base Case -Diesel Generation -AA Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Required Service Earnings O$M Cost Required Required Service O&M Cost Cost(9) Year (MWh) (1) ($000)(2) ($000) (3) ($000) (4) ($000) (5) (MWh) ( 6) ($000) (7) ($000) (8) ($000) ---------------------------------------------------------------------------------------- 1982 9,558 0 0 0 0 9,558 0 901 924 1983 8,290 0 0 0 0 8,290 0 921 817 1984 7,976 0 0 0 0 7,976 0 980 924 1985 8,143 0 0 0 0 8,143 0 1,040 1,033 1986 8,330 0 0 0 0 8,330 0 1,105 1,158 1987 8,507 0 0 0 0 8,507 0 1,173 1,295 1988 8,704 0 0 0 0 8,704 0 1,245 1,450 1989 8,888 0 0 0 0 8,888 0 1,323 1,622 1990 9,101 0 0 0 0 9,101 0 1,403 1,818 1991 9,288 0 0 0 0 9,288 0 1,489 2,032 1992 9,511 0 0 0 0 9,511 0 1,579 2,278 1993 9,740 0 ( 44) 0 0 9,740 444 1,674 2,555 1994 10,034 0 (44) 0 0 10,034 444 1,773 2,882 1995 10,221 0 (44) 0 0 10,221 444 1,880 3,215 1996 10,384 0 (44) 0 0 10,384 444 1,995 3,576 1997 10,579 0 (44) 0 0 10,579 444 2,114 3,990 1998 10,778 0 (120) 0 0 10,778 1,197 2,240 4,451 1999 10,953 0 (120) 0 0 10,953 1,197 2,373 4,953 2000 11,158 0 (120) 0 0 11,158 1,197 2,512 5,525 2001 11,366 0 (120) 0 0 11,366 1,197 2,658 6,162 (1)-Scenario AA loads• less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)- (3)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)- Total Annual Cost(lO) ($000) -------- 1,825 1,798 1,904 2,073 2,263 2,468 2,695 2,945 3,221 3,521 3,857 4,629 5,055 5,495 5,971 6,504 7,768 8,403 9,114 9,897 (7)-Debt service for replacement of existing diesel generators. Based on 100\ bond financing, 25-year 12\ bonds. (8)-Assumes $120/KW annually inflated at 7% per year less net credit for waste heat recovery. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 19.1 21.7 23.9 25.5 27.2 29.0 31.0 33.1 35.4 37.9 40.6 47.5 50.4 53.8 57.5 61.5 72.1 76.7 81.7 87.1 (10)-CDABAAll ...., ~ tzj 1-' R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: west Creek AA -60\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings O$M Cost Required Required Service O&M Cost Cost(9) Cost (10) Year (MWh)(l) ( $000) (2) ($000) (3) ($000) (4) ($000) (5) (MWh) (6) ( $000) (7, ($000) (8) ($000) ($000) ------------------------------------------------------------------------------------------------ 1982 9,558 0 0 0 0 9,558 0 901 924 1,825 1983 8,290 0 0 0 0 8,290 0 964 877 1, 841 1984 7,976 0 0 0 0 7,976 0 1,032 924 1,956 1985 8,143 0 0 0 0 8,143 0 1,104 1,033 2,137 1986 8,330 0 0 0 0 8,330 0 1,181 1,158 2,339 1987 8,507 3,371 ( 337) 941 0 0 0 632 0 4,607 1988 8,704 3,311 (337) 1,007 0 0 0 676 0 4, 717 1989 8,888 3,371 (331) 1,078 0 0 0 723 0 4,835 1990 9,101 3,311 (337) 1,153 0 0 0 774 0 4,961 1991 9,288 3,371 (337) 1,234 0 0 0 828 Q 5,096 1992 9,511 3,311 (331) 1,320 0 0 0 886 0 5,240 1993 9,740 3,311 (337) 1,412 0 0 0 948 0 5,394 1994 10,034 3,371 (331) 1,511 0 0 0 1,015 0 5,560 1995 10,221 3,311 (337) 1,611 0 0 0 1,086 0 5, 737 1996 10,384 3,371 (337) 1, 730 0 0 0 1,162 0 5,926 1997 10,579 3,371 (337) 1,851 0 0 0 1,243 0 6,128 1998 10,718 3,371 (337) 1,981 0 0 0 1,330 0 6,345 1999 10,953 3,311 (337) 2,120 0 0 0 1,423 0 6, 517 2000 11,158 3,371 (337) 2, 268 0 0 0 1,523 0 6,825 2001 11,366 3,371 (337) 2,427 0 0 0 1,629 0 7,090 {1)-Scenario AA loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)-Assumes Case 1 financing with 40\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (l)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. {4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)-Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. {7)- (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. Total Annual Cost (c/KWh) -------- 19.1 22.2 24.5 26.2 28.1 54.2 54.2 54.4 54.5 54.9 55.1 55.4 55.4 56.1 57.1 57.9 58.9 60.0 61.2 62.4 (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5% per year. Fuel rate assumed to be 12 KWh/gallon. (10)-CDAWCAll ~ tx:l N R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: West Creek AA -80% State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings O$M Cost Required Required Service O&M Cost Cost (9) Cost(lO) Year (MWh) (1) ($000)(2) ($000) (3) ($000) (4) ($000) (5) (MWh) ( 6) ( $000) (7) ($000)(8) ($000) ($000) ------------------------------------------------------------------------------------------------ 1982 9,558 0 0 0 0 9,558 0 901 924 1,825 1983 8,290 0 0 0 0 8,290 0 964 817 1,841 1984 7,976 0 0 0 0 7,976 0 1,032 924 1,956 1985 8,143 0 0 0 0 8,143 0 1,104 1,033 2,137 1986 8,330 0 0 0 0 8,330 0 1,181 1,158 2,339 1987 8,507 1,685 ( 169) 941 0 0 0 632 0 3,089 1988 8,704 1,685 (169) 1,007 0 0 0 676 0 3,199 1989 8,888 1,685 (169) 1,078 0 0 0 723 0 3,311 1990 9,101 1,685 (169) 1,153 0 0 0 174 0 3,443 1991 9,288 1,685 ( 16 9) 1,234 0 0 0 828 0 3,578 1992 9,511 1,685 ( 169) 1,320 0 0 0 886 0 3,722 1993 9,740 1, 685 (169) 1,412 0 0 0 948 0 3,876 1994 10,034 1,685 (169) 1,511 0 0 0 1,015 0 4,042 1995 10,221 1,685 ( 169) 1,617 0 0 0 1,086 0 4,219 1996 10,3 84 1,685 (169) 1, 730 0 0 0 1,162 0 4,408 1997 10,579 1,685 (169) 1,851 0 0 0 1,243 0 4,610 1998 10,178 1,685 ( 169) 1,981 0 0 0 1,330 0 4,827 1999 10,953 1,685 ( 169) 2,120 0 0 0 1,423 0 5,059 2000 11,158 1,685 (169) 2, 268 0 0 0 1,523 0 5,307 2001 11,366 1,685 (169) 2,427 0 0 0 1,629 0 5,572 (1)-Scenario AA loads less 2900 MWh annually of existing hydro generation. Includes 10%. of Schnabel load. (2)-Assumes Case 2 financing with 20% 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (3)-Interest earnings at 10% on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7% per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)-Assumes 20,209 MWh annual generation from West Creek Project plus 40% of load requirements above 20,209 MWh. (7)- (8)-Assumes $120/KW annually inflated at 7% per year. Assumes SO\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 19.1 22.2 24.5 26.2 28.1 36.3 36.8 37.3 37.8 38.5 39.1 39.8 40.3 41.3 42.4 43.6 44.8 46.2 47.6 49.0 (10)-CDAWCA12 H 6; t'"' tx:l w R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: Base Case -Diesel Generation -BB Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Required Service Earnings 0$M Cost Required Required Service OlioM Cost Cost(9) Year ( MWh) ( 1) ($000) (2) ( $000) ( 3) ($000) (4) ( $000) ( 5) (MWh)(6) ( $000) (7) ( $000) ( 8) ($000) ---------------------------------------------------------------------------------------- 1982 10,885 0 0 0 0 10,885 0 901 1,052 1983 9,946 0 0 0 0 9,946 0 919 1,053 1984 10,204 0 0 0 0 10,204 0 976 1,183 1985 11,159 0 0 0 0 11,159 0 1,035 1,416 1986 11,442 0 0 0 0 11,442 0 1,100 .1 ,590 1987 11,745 0 0 0 0 11,745 0 1,169 1,787 1988 12,218 0 0 0 0 12,218 0 1,237 2,036 1989 12,631 0 0 0 0 12,631 0 1,313 2,305 1990 14,139 0 0 0 0 14,139 0 1,366 2,825 1991 14,972 0 0 0 0 14,972 0 1,436 3,276 1992 15,527 0 ( 8) 0 400 15,527 80 1,612 3, 720 1993 16,107 0 (52) 0 0 16,107 524 1,703 4,225 1994 16,698 0 (52) 0 0 16,698 524 1, 796 4,796 1995 17,188 0 (52) 0 0 17,188 524 1,898 5,406 1996 17,715 0 (52) 0 0 17,715 524 2,002 6,101 1997 18,110 0 (52) 0 0 18,110 524 2,116 6,830 1998 18,806 0 (140) 0 400 18,806 1,397 2,364 7,766 1999 19,385 0 (140) 0 0 19,385 1,397 2,490 8,766 2000 19,959 0 (140) 0 0 19,959 1,397 2,621 9,883 2001 20,548 0 (140) 0 0 20,548 1,397 2,756 11,141 (1)-Scenario BB loads less 2900 MWh annually of existing hydro generation. Includes lOt of Schnabel load. (2)- (3)-Interest earnings at lOt on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)- Total . Annual Cost(lO) ($000) -------- 1,953 1,972 2,159 2,451 2,690 2,956 3,273 3,618 4,191 4, 712 5,404 6,400 7,064 7,776 8,575 9,418 11,387 12,513 13,761 15,154 (7}-Debt service for new and replacement of existing diesel generators. Assumes lOOt bond financing, 25-year 12\ bonds. (8)-Assumes $120/KW annually inflated at 7\ per year less net credit for waste heat recovery. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.9 19.8 21.2 22.0 23.5 25.2 26.8 28.6 29.6 31.5 34.8 39.7 42.3 45.2 48.4 52.0 60.5 64.5 68.9 73.7 (10)-CDABABll ~ t:<:1 ~ R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (1)- (2)- (3)- (4)- (5)- (6)- (7)- Feasibility Study Cost of Power Analysis Alternative: West Creek BB -60\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Required Service Earnings O$M Cost Required Required Service O&M Cost (MWh) (1) ( $000) ( 2) ($000)(3) ($000) (4) ( $000) ( 5) (MWh) (6) ($000) (7) ($000)(8) ------------------------------------------------------------ -------------------- 10,885 0 0 0 0 10,885 0 901 9,946 0 0 0 0 9,946 0 964 10,204 0 0 0 0 10,204 0 1,032 11,159 0 0 0 0 11,159 0 1,104 11,442 0 0 0 0 11,442 0 1,181 11,745 3,371 ( 337) 941 0 0 0 632 12,218 3,371 (337) 1,007 0 0 0 676 12,631 3, 371 (337) 1,078 0 0 0 723 14,139 3,371 (337) 1,153 0 0 0 774 14,972 3,371 (337) 1,234 0 0 0 828 15,527 3,371 ( 337) 1,320 0 0 0 886 16,107 3,371 (337) 1,412 0 0 0 948 16,698 3,371 (337) 1,511 0 0 0 1,015 17,188 3,371 (337) 1,617 0 0 0 1,086 17,715 3,371 (337) 1, 730 0 0 0 1,162 18,110 3,371 (337) 1,851 0 0 0 1,243 18,806 3,371 (337) 1,981 0 0 0 1,330 19,385 3,371 (337) 2,120 0 0 0 1,423 19,959 3,371 (337) 2,268 0 0 0 1,523 20,548 3,371 ( 337) 2,427 0 203 0 1,629 Scenario BB loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel Assumes Case 1 financing with 40\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. Inflated at 7% per year. Based on existing capacity of 7510 KW for both systems. Diesel Total Fuel Annual Cost(9) Cost(lO) ($000) ($000) ---------------- 1,052 1,953 1,053 2,017 1,183 2,215 1,416 2,520 1,590 2, 771 0 4,607 0 4, 717 0 4,835 0 4,961 0 5,096 0 5,240 0 5,394 0 5,560 0 5, 737 0 5,926 0 6,128 0 6,345 0 6,577 0 6,825 110 7,200 load. to be $68,893,000. Assumes 20,209 HWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/l<Wh) -------- 17.9 20.3 21.7 22.6 24.2 39.2 38.6 38.3 35.1 34.0 33.7 33.5 33.3 33.4 33.5 33.8 33.7 33.9 34.2 35.0 (10)-CDAWCBll ~ I:"' trl Ul R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (1)- (2)- (3)- (4)- (5)- (6)- (7)- Feasibility Study Cost of Power Analysis Alternative: West Creek BB -80\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Required Service Earnings 0$H Cost Required Required Service O&M Cost (MWh) (1) ($000) (2) ($000)(3) ( $000) ( 4) ( $000) ( 5) (MWh) (6) ( $000) (1) ($000) (8) -------------------------------------------------- ---------- -------------------- 10,885 0 0 0 0 10,885 0 901 9,946 0 0 0 0 9,946 0 964 10,204 0 0 0 0 10,204 0 1,032 11,159 0 0 0 0 11,159 0 1,104 11,442 0 0 0 0 11,442 0 1,181 11,745 1,685 ( 169) 941 0 0 0 632 12,218 1,685 (169) 1,007 0 0 0 676 12,631 1,685 (169) 1,078 0 0 0 723 14,139 1,685 (169) 1,153 0 0 0 174 14,972 1,685 (169) 1,234 0 0 0 828 15,527 1,685 ( 169) 1,320 0 0 0 886 16,107 1,685 ( 169) 1,412 0 0 0 948 16,698 1,685 ( 169) 1,511 0 0 0 1,015 17,188 1,685 ( 169) 1,617 0 0 0 1,066 17,115 1,685 ( 169) 1,130 0 0 0 1,162 18,110 1,685 (169) 1,851 0 0 0 1,243 18,806 1,685 ( 169) 1,981 0 0 0 1,330 19,3 85 1,685 (169) 2,120 0 0 0 1,423 19,959 1,685 ( 169) 2,268 0 0 0 1,523 20,548 1,685 ( 169) 2,427 0 203 0 1,629 Scenario BB loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel Assumes Case 2 financing with 20\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. Inflated at 7\ per year. Based on existing capacity of 7510 KW for both systems. Diesel Total Fuel Annual Cost (9) Cost (10) ($000) ($000) ---------------- 1,052 1,953 1,053 2,017 1,183 2,215 1,416 2,520 1,590 2,111 0 3,089 0 3,199 0 3,317 0 3,443 0 3,578 0 3,722 0 3,876 0 4,042 0 4,219 0 4,408 0 4,610 0 4,827 0 5,059 0 5,307 110 5,682 load. to be $68,893,000. Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 11.9 20.3 21.1 22.6 24.2 26.3 26.2 26.3 24.4 23.9 24.0 24.1 24.2 24.5 24.9 25.5 25.7 26.1 26.6 27.7 (10)-CDAWCB12 ~ ~ l:".tj C1\ R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: Base Case -Diesel Generation -CC Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Required Service Earnings O$M cost Required Required Service Or.M Cost Cost(9) Year (MWh) (1) ($000)(2) ($000)(3) ($000) (4) ($000) (5) (MWh)(6) ($000)(7) ($000) (8) ($000) -------------------------------------------------- -------------------------------------- i982 11,667 0 0 0 0 11,667 0 901 1,128 1983 12,291 0 0 0 0 12,291 0 919 1,301 1984 12,571 0 0 0 0 12,571 0 976 1,457 1985 13,015 0 0 0 0 13,015 0 1,035 1,652 1986 13,673 0 0 0 0 13,673 0 1,094 1,900 1987 14,192 0 0 0 0 14,192 0 1,159 2,160 1988 14,7 86 0 0 0 0 14,786 0 1,224 2,464 1989 15,303 0 0 0 0 15,303 0 1,297 2,792 1990 16,504 0 0 0 0 16,504 0 1,356 3,297 1991 17,367 0 (9) 0 500 17,367 94 1,536 3,800 1992 17,945 0 ( 9) 0 0 17,945 94 1,622 4,299 1993 18,543 0 (54) 0 0 18,543 538 11713 4,864 1994 19,156 0 (54) 0 0 19,156 538 1,807 5,502 1995 19,647 0 (54) 0 0 19,647 538 ·1,910 6,180 1996 20,209 0 (54) 0 0 20,209 538 2,013 6,960 1997 20,754 0 (68) 0 500 20,754 679 2,288 7,827 1998 21,319 0 (143) 0 0 21,319 1,432 2,412 8,804 1999 21,933 0 (143) 0 0 21,933 1,432 2,539 9,918 2000 22,524 0 (143) 0 0 22,524 1,432 2,672 11,153 2001 23,129 0 (143) 0 0 23,129 1,432 2,808 12,540 (1)-Scenario CC loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)- (3)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7% per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)- Total Annual Cost(lO) ($000) -------- 2,029 2,220 2,433 2,687 2,994 3,319 3,688 4,089 4,653 5,421 6,006 7,061 7,793 8,574 9,457 10,726 12,505 13,746 15,114 16,637 (7)-Debt service for new and replacement of existing diesel generators. Assumes 100\ bond financing, 25-year 12\ bonds. (8)-Assumes $120/KW annually inflated at 7% per year less net credit for waste heat recovery. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.4 18.1 19.4 20.6 21.9 23.4 24.9 26.7 28.2 31.2 33.5 38.1 40.7 43.6 46.8 51.7 58.7 62.7 67.1 71.9 (10)-CDABACll H 6; t-1 tx:! "-J R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: west Creek CC -60\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings OSM Cost Required Required Service O&H Cost Cost(9) Cost(lO) Year (HWh) (1) ($000)(2) ($000) (3) ($000)(4) ($000)(5) (HWh) (6) ( $000) (7) ($000) (8) ($000) ($000) ------------------------------------------------------------------------------------------------ 1982 11,667 0 0 0 0 11,667 0 901 1,128 2,029 1983 12,291 0 0 0 0 12,291 0 964 1,301 2,265 1984 12,571 0 0 0 0 12,571 0 1,032 1,457 2,489 1985 13,015 0 0 0 0 13,015 0 1,104 1,652 2, 756 1986 13,673 0 0 0 0 13,673 0 1,181 1,900 3,081 1987 14,192 3,371 ( 337) 941 0 0 0 632 0 4,607 1988 14,786 3,371 (337) 1,007 0 0 0 676 0 4, 717 1989 15,303 3,371 (337) 1,078 0 0 0 723 0 4,835 1990 16,504 3,371 (337) 1,153 0 0 0 774 0 4,961 1991 17,367 3,371 (337) 1,234 0 0 0 828 0 5,096 1992 17,945 3,371 (337) 1,320 0 0 0 886 0 5,240 1993 18,543 3,371 (337) 1,412 0 0 0 948 0 5,394 1994 19,156 3,371 (337) 1,511 0 0 0 1,015 0 5,560 1995 19,647 3,371 (337) 1,617 0 0 0 1,086 0 5, 737 1996 20,209 3,371 (337) 1, 730 0 0 0 1,162 0 5,926 1997 20,754 3,371 (337) 1,851 J) 327 0 1,243 123 6,251 1998 21,319 3,371 (337) 1,981 0 666 0 1,330 275 6,620 1999 21,933 3,371 (337) 2,120 0 1,034 0 1,423 468 7,045 2000 22,524 3,371 (337) 2,268 0 1,389 0 1,523 688 7,513 2001 23,129 3,371 (337) 2,427 0 1,752 0 1,629 950 8,040 (1)-Scenario CC loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)-Assumes Case 1 financing with 40\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (3)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)-Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (7)- (8)-Assumes $120/KW annually inflated at 7% per year. Assumes 50\ of existing capacity mothballed in 1987, (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9,5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.4 18.4 19.8 21.2 22.5 32.5 31.9 31.6 30.1 29.3 29.2 29.1 29.0 29.2 29.3 30.1 31.1 32.1 33.4 34.8 (10)-CDAWCCll H ~ t"' t>:l CD R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (1)- (2)- (3)- (4)- (5)- (6)- (7)- Feasibility study Cost of Power Analysis Alternative: West Creek CC -80\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Required Service Earnings OSH Cost Required Required Service O&H Cost (HWh) (1) ($000) (2) ( $000) ( 3) ($000)(4) ($000)(5) (HWh) (6) ($000)(7) ($000) (8) -------------------------------------------------------------------------------- 11,667 0 0 0 0 11,667 0 901 12,291 0 0 0 0 12,291 0 964 12,571 0 0 0 0 12,571 0 1,032 13,015 0 0 0 0 13,015 0 1,104 13,673 0 0 0 0 13,673 0 1,181 14,192 1,685 (169) 941 0 0 0 632 14,786 1,685 (169) 1,007 0 0 0 676 15,303 1,685 (169) 1,078 0 0 0 723 16,504 1,685 (169) 1,153 0 0 0 774 17,367 1,685 ( 16 9) 1,234 0 0 0 828 17,945 1,685 (169) 1,320 0 0 0 886 18,543 1,685 (169) 1,412 0 0 0 948" 19,156 1,685 (169) 1,511 0 0 0 1,015 19,647 1,685 (169) 1,617 0 0 0 1,086 20,209 1,685 (169) 1, 730 0 0 0 1,162 20,754 1,685 (169) 1,851 0 327 0 1,243 21,319 1,685 (169) 1,981 0 666 0 1,330 21,933 1,685 (169) 2,120 0 1,034 0 1,423 22,524 1,685 (169) 2,268 0 1,389 0 1,523 23,129 1,685 ( 16 9) 2,427 0 1,752 0 1,629 Scenario CC loads less 2900 HWh annually of existing hydro generation. Includes 10\ of Schnabel Assumes Case 2 financing with 20\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. Inflated at 7\ per year. Based on existing capacity of 7510 KW for both systems. Diesel Total Fuel Annual Cost(9) Cost(lO) ($000) ($000) ---------------- 1,128 2,029 1,301 2,265 1,457 2,489 1,652 2,756 1,900 3,081 0 3,089 0 3,199 0 3,317 0 3,443 0 3,578 0 3,722 0 3,876 0 4,042 0 4,219 0 4,408 123 4, 733 275 5,102 468 5,527 688 5,995 950 6,522 load. to be $68,893,000. Assumes 20,209 HWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 HWh. (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.4 18.4 19.8 21.2 22.5 21.8 21.6 21.7 20.9 20.6 20.7 20.9 21.1 21.5 21.8 22.8 23.9 25.2 26.6 28.2 (10)-CDAWCC12 ~ ~ t"' 1:'1 1,() ALASKA J»f)\l'Eil AU1'1101liTY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY ELECTRIC REQUIREMENTS FORECAST GROWTH SCENARIOS SCENARIO AA -STATUS QUO CONDITIONS (SCENARIO A-JUNE 1882) o Population growth -1% annually o No gas pipeline construction o No electric spaceheating o New Klondike Hotel Restaurant o Railroad loads excluded after 1982 in Skagway o 40% reduction in other customer class loads after 1983 In Skagway ALASKA J»f)l\'Eit AUTIIOitiTY ADDENDU~ TO HAINES SKAGWAY REGI9N FEASIBILITY STUDY ELECTRIC REQUIREMENTS FORECAST GROWTH SCENARIOS SCENARIO BB -INCREASING ECONOMIC ACTIVITY SKAGWAY -STATUS QUO CONDITIONS (SCENARIO A-JUNE 1 982) o Population growth -1% annually o No gas pipeline construction o No electric spaceheating o New Klondike Hotel Restaurant o Aasumes railroad load reduction in '82 & closure in '83 & '84 o After '84. seasonal railroad operation only HAINES -INCREASING ECONOMIC ACTIVITY (SCENARIO B-JUNE -1982) o Population growth -2.25% annually e eaa t'i,eline indueed empleyment in Heine& o Additional Haines employment: winter carnival, barite mine, new industrial customer loads o No electric spaceheating ALASKA J•()\VEit AUTIIOitiTY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY ELECTRIC REQUIREMENTS FORECAST GROWTH SCENARIOS SCENARIO CC -BASIS FOR PROJECT SIZING SKAGWAY -STATUS QUO CONDITIONS (SCENARIO A-JUNE 1882) o Population growth -1% annually o No gas pipeline construction o No electric spaceheating o New Klondike Hotel Restaurant HAINES -INCREASING ECONOMIC ACTIVITY (SCENARIO B-JUNE ·1882) o Population growth -2.25% annually o Gas pipeline -induced employment in Haines o Additional Haines employment: winter carnival, barite mine, new Industrial customer loads o No electric spaceheating ALASKA J»f,ll~Eit AUTIIOitiTY ADDENDUM T9 HAIN~S-8KAGWAY REGION FEASIBILITY STUDY Z! ~ ~ z 0 -_, _, -:E CD ... z w :E w IX -::l 0 w IX )- CJ a: w z w 70~----~----------~------~----~ eo 60 40 ao 20 AA 10 o~~~~~~~~~~~~~~~~ 1875 1880 1885 1990 1995 2000 YEARS ENERGY REQUIREMENT OF HAINES-SKAGWAY ALASKA J»()\\YEil AUTIIOJliTl" ·ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY .r::. ~ .M. z 0 -... ... -:1 CD ... z w :1 w It -!:) 0 w It )-c It w z 1&1 70~----~----~----~----~----~ eo 60 •o 000 6000 . 5000 4000 1171 1180 1885 1800 1885 2000 YEARS SCENARIO CC ENERGY REQUIREMENTS AND RESOURCES ~ ,Jif:. .. c < 0 ...J ~ < w a.. ALASKA t•()\\?Eil AUTIIOiliTr ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY .c ~ ~ z 0 -.... .... -:1 Cl) ... z w :1 w a:t -J 0 w &:t· ,. " a: w z w 70~----~----~----~----~----~ 80 60 5750 f 40 4600 3450 2300 1150 1876 1880 1986 1990 1996 2000 YEARS SCENARIO CC ENERGY REQUIREMENTS AND RESOURCES ;: ,J/1!. .. > 1--0 < c.. < 0 w (!) < a: w > < ALASKA t•()\fEII. AU'I'IIOII.ITY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY ·~ 50 z w :E w a:> ~~ 40 wCJ a:< >~ CJCJ) a: 0 30 wz Z< w ..JCJ) <w ;:::) ~ 20 z< z:z:: <a: u.O 0 u. 10 1-z w 0 a: -r--- - r--- I 50 3: 0 ..J u. :E ·40 < w 1!1 ... j j 0 a: 1- C/) ..J < :l z z < w 0 ~ a: w > < u. ~ 0 0 w A. 0 1JAN'' F'E'Ir'MA"R''~PR "~Av"JuN" JuL "luG 11 ~EP"~cr"~o~1 ~Ec 1 0 .... z w 0 a: w a. MONTHLY DISTRIBUTION OF ENERGY VS WEST CREEK STREAM FLOW ALASKA t•tt\l'Eit AU'I~IIOitiTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY COMPARISON OF PROJECT STATISTICS JUNE 1982 DECEMBER 1982 INSTALLED CAPACITY 6,000 kW 4,500 kW ANNUAL FIRM ENERGY GENERATED 23,630 MWh 20,210 MWh AVERAGE ANNUAL GROSS HEAD 660 ft. 655ft NORMAL MAXIMUM POWER POOL ELEVATION 705 ft. 700ft AVERAGE ANNUAL FLOW IN STREAM 288 cfs 288 cfs MAXIMUM FLOW THROUGH UNITS 130 cfs 105 cfs ALASKA J•ft\l'Eil AIJTIIOiliTl" ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY ALTERNATIVES STUDIED 1. DAM -ROCKFILL vs ROLLER COMPACTED CONCRETE 2. POWER CONDUIT -BURIED PIPELINE vs TUNNEL 3. POWER PLANT -TWO FRANCIS UNITS vs ONE PEL TON UNIT ALASKA J»()\fEil AUTIIOiliTY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY .. Normal maximum reservoir El. 705 ~~ ' ~Roektm (~ J Dam ""'-...75 PLAN Parapet wall Normal maximum =Cr=es:-=-t -::E='·-=-7=29~.5=:--:---:>---:~--___..!!!.EI!!..... 7!._!,2~6 reservoir El. 705~nerete face slab -1.6 10'-Processed aravel beddlno----- Grout cap_-- Grout curtain ---j II / Rockfill from spillway ;J Estimated rock surface TYPICAL DAM SECTION ROCKFILL DAM -PLAN AND SECTION ALASKA J»()\\'Eil AUTIIOiliTl" ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY Spillway I I / I Roller Compacted Concrete Dam 700 \ ........ , \ .// ' , ---Power tunnel-,......__---:':--.. \' / ' N~~l maximum reservoir El. 700 ~~ PLAN Creet E. I. 7 I 6 Normal maximum """"'-=--...... ruervoir E. I. 700 Gallery Grout curtain ~ E.1.712 Spillway crut E. I. 700 -Flip bucket E.l.6 50 0.6 I TYPICAL SECTION ROLLER. COMPACTED. CONCRETE DAM_ PLAN. AND. SECTION ALASKA t•()\\'Eil AU1~11011.1TY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY DAM AND SPILLWAY ALTERNATIVES COMPARATIVE COST ESTIMATE ITEM 1. RESERVOIR CLEARING 2. DIVERSION 3. DAM 4. SPILLWAY TOTAL ROCK FILL DAM $1,320,000 2,569,000 4,200,000 3,482,000 $11,571,000 ROLLER COMPACTED CONCRETE $1,320,000 2,569,000 6,545,000 (included in dam) $ 1 0,434,000 -~ ALASKA J•()\\'Eil AUTIIOitiTT' ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY NoriiiCII IIICIXI111u111 reservoir E I. 7 00 SELECTED /-~--- ARRANGEMENT ///_ ---------,00~ National Park Boundary V L~olwfdte :r:£'1.& /'\ ,. & ', / "' ...__./ owerhouse I .r-Burled Pipeline ~ Tailrace Channel \ ----1200 - ------1400--~ \ \ ----__ /"00 ~-\ \ \ \ \ \ PLAN I D,.a I CoiiiiiiUIIItJ I I ', I ....., ~I \ t\ ~\ ~\ ALTERNATIVE POWER CONDUITS ALASKA t•C)\l'Eil AUTIIOiliTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY . . Ill . Common backfill Bedding material e 1:1 -e . . l/1 • . ·• .-· ~ • 4 ~ • "' ' pr) c .. ~ ~ ;// ' . \\\I JYPJCAL SECTION -.BURIED PIPELINE Rock~ TYPICAL SECTION-6 I /2' DIA TUNNEL ALASKA t•ft\VEit AUTIIOitiTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY ITEM 1. INTAKE 2. TUNNEL POWER CONDUIT ALTERNATIVES COMPARATIVE COST ESTIMATES PIPELINE $ 1,757,000 1,634,000 3. PIPELINE/PENSTOCK 7,223,000 TOTAL $10,614,000 TUNNEL $ 1,757,000 8,750,000 727,000 $11,234,000 ALASKA J•f)\l'Eil AUTIIOII.ITI" ·ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY Parking • 7 Tailrace channel PLAN Concrete encasement TRANSVERSE SECTION POWERHOUSE -SINGLE PEL TON UNIT ALASKA J•(,\\'EIC. AU1'1101C.IT1." ADDENDUM TO HAINES·SKAGWAY REGION FEASIBILITY STUDY PLAN TRANSVERSE SECTION POWERHOUSE -TWO FRANCIS UNITS ALASKA J•()\VEit AUTIIOitiTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY POWERHOUSE ALTERNATIVES COMPARATIVE COST ESTIMATE JUNE 1982 DECEMBER 1982 ITEM 6000 kW CAPACITY 4500 kW CAPACITY 1. CIVIL WORKS $ 795,000 $ 642,000 2. MECHANICAL EQUIPMENT 1,713,000 806,000 3. ELECTRICAL EQUIPMENT 2,061,000 1,008,000 4. MOBIL CRANE 150,000 150,000 5. MISCELLANEOUS 100,000 100,000 6. ARCHITECTURAL 60,000 60,000 7. TAILRACE 503,000 245,000 TOTAL $5,382,000 $3,011,000 KLONDIKE GOLD RUSH NATIONAL HISTORICAL PARI< wcsr CREEK liE SERVO Ill ALASii.A ·J•f,\l'l~ll A U1~11f)JliTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY _ .... - c~trL«oO' ,.., SELECTED TRANSMISSION LINE I' ~~/ rt'"! ALASKA t•(,\l'Eil AUTIIOiliTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY SUMMARY OF MAJOR PROJECT FEATURES FEATURE RESERVOIR ELEVATION DAM TYPE CREST ELEVATION CREST LENGTH VOLUME SPILLWAY TYPE CREST LENGTH POWER CONDUIT TUNNEL-DIAMETER LENGTH PENSTOCK -DIAMETER LENGTH POWERHOUSE JUNE 1982 705 ROCK FILL 729 \000 FEET 254,000 CY SIDE CHANNEL 75 FEET 9.5 FEET 8470 3 1450 CAPACITY 8000KW NUMBER OF UNITS 2 DECEMBER 1982 700 ROLLER COMPACTED CONCRETE GRAVITY 712 650 FEET 50,000 CY FLIP BUCKET ON DAM FACE 200 FEET 8.5 FEET 8470 3 1450 TYPE OF UNITS HORIZONTAL FRANCIS 4500KW 1 PELTON ALASKA t•Ct\l'Eil AUTIIOiliTY ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY WEST CREEK PROJECT CONSTRUCTION COST ESTIMATE SUMMARY JUNE 1982 DECEMBER 1982 ITEM ESTIMATED COST ESTIMATED COST 1. PREPARATORY WORK s 2,788,000 $3,038,000 2. DAM AND RESERVOIR 11,571,000 10,434,000 3. POWER CONDUIT 12,348,000 11,234,000 4. POWERHOUSE 5,382,000 3,011,000 5. SWITCHY ARD AND TRANSMISSION LINE 13,273,000 13,058,000 DIRECT CONSTRUCTION COST $45,360,000 $40,771,000 (BID 1/82, ON-LINE 6/84) CONTINGENCIES 8,139,000 7,339,000 SUBTOTAL $53,499,000 $48,110,000 ENGINEERING AND OWNER ADMINISTRATION 7,825,000 7,216,000 TOTAL CONSTRUCTION COSTS $81,3 24,000 $55,328,000 (BID 1/82, ON-LINE 6/84) INTEREST DURING CONSTRUCTION 2,208,000 1,992,000 TOTAL INVESTMENT COST $83,532,000 $57,318,000 (BID 1/82, ON-LINE 6/84) ESCALATION DURING CONSTRUCTION (7 ,624,000) (8,878,000) TOTAL INVESTMENT COST $55,908,000 $50,440,000 (INFLATION-FREE ON 1/82) ALASKA t•(t\\'Eit AUTIIOitiTI." ADDENDUM TO HAINES-SKAGWAY REGION FEASIBILITY STUDY . . CRITERIA FOR ECONOMIC EVALUATION PLANNING PERIOD EVALUATION PERIOD ASSUMPTIONS ZERO GENERAL INFLATION 2.5% 1982-2001 1982-2036 ~% ESCALATION ON COST OF PETROLEUM FUELS FOR 20 YEARS INTEREST RATE: J< 3.5% PLANS EVALUATED BASE CASE-CONTINUED USE OF DIESEL GENERATORS WEST CREEK WOOD WASTE ALASii.A J•C,\l'l~lt AU1"1101C.ITY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY SUMMARY OF ECONOMIC ANALYSIS PLAN BASE CASE -DIESEL GENERATION WEST CREEK TOTAL PRESENT WORTH COST SCENARIO AA SCENARIO BB SCENARIO CC 571784 731501 821349 741553 90,944 78,630 . ALASiiA J»ft\l'l~ll AU1'1101liTY ADDENDUM TO HAIN!S SKAGWAY REGION FEASIBILITY STUDY SUMMARY OF ECONOMIC ANALYSIS TOTAL PRESENT WORTH COST PLAN SCENARIO AA SCENARIO 88 SCENARIO CC BASE CASE -DIESEL GENERATION 57~784 82~349 90.,944 WEST CREEK 73,5.01 74~553 78.,630 SCHNABEL MILL WOOD WASTE 20~000 MWH~ 11 CENTS/KWH 47~183 68~741 76~593 20~000 MWH~ 13.5 CENTS/KWH 51.,917 74~869 82~968 12~000 MWH~ 11 CENTS/I<WH 48~922 75~499 86~561 12~000 MWH., 13.5 CENTS/KWH 52)499 79~078 90~141 ALASKA t•(,\fEII. AUTIIOII.ITY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY 80 as eo 15 10 £ ~ es ..... ., !i eo w 9ss a: w ~ 50 ~ 45 ... 3 4 0 n 30 u 20 15 1882 1884 uae West CrHl-801 Stete Equity aue cue-DI•••• uu 1180 1112 1184 1118 1811 2000 YEAR HAINES SKAGWAY REGION ESTIMATED COST OF POWER SCENARIO AA .. ALASKA J•(t\lTEIC. AUTIIOIC.ITl" ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY 80 815 eo 7& 70 3! ~e& ii; !Z eo IU 9n lit IU ~ 10 L ~ 41 5 40 0 36 30 u Weat CrHII-801 8tltl Equltr 1&+-----~------~----~~-----r------~----~------,-----~~-----r---1882 1814 1811 1811 1880 1082 1884 1888 1881 2000 YEAR HAINES SKAGWAY REGION ESTIMATED COST OF POWER SCENARIO BB • ALASKA J•C,\VEil AUTIIOiliTY ADDENDU~ TO HAINES-SKAGWAY REGION FEASIBILITY STUDY I. INTRODUCTION II. LOAD FORECAST Ill. PROJECT SIZING IV. ALTERNATIVE PROJECT ARRANGEMENTS v. CONSTRUCTION COST ESTIMATES VI. ECONOMIC EVALUATION VII. COST OF POWER VIII. FUTURE ACTIVITIES IX. DISCUSSION ALASKA J•ft\l'Eit AUTIIOitiTY ADDENDUM TO HAINES SKAGWAY REGION FEASIBILITY STUDY 10 I& 10 71 10 ! 15 ..... ~ 10 z w 9u a: w ~ 50 ~ 45 ~ 40 (,) S5 so 26 Welt Creek-101 Sttte Equltr 1114 1111 1188 1110 1l12 1114 1111 1111 2000 YEAR HAINES SKAGWAY REGION ESTIMATED COST OF POWER SCENARIO CC .. R. w. Beck and Associates, Inc. January 12, 1983 Introduction Addendum to Haines-Skagway Region Feasibility Study COST OF POWER ANALYSIS As part of the Addendum to the Feasibility Study for the West Creek Project a cost of power analysis has been prepared. The purpose of this analy- sis is to project the cost of power for Haines Light and Power (HLP) and Alaska Power & Telephone in Skagway (APT) with and without the inclusion of the West Creek Project as a generating resource. The two alternative plans for which the analyses have been performed are: 1. Base Case-continued diesel generation. 2. West Creek-4.5 MW capacity on line January 1, 1987. The analysis has been prepared for each of the three load forecast scenarios defined in the Feasibility Addendum. The West Creek project is assumed to be funded with either 60% state equity and 40% long-term bonds or 80% state equity and 20% long-term bonds. New diesel generators are assumed to be financed with 100% debt financing. It should be noted that the estimated costs of power represented in this analysis are for comparative purposes only as these costs may vary from those currently being experienced by HLP and APT and their customers. Methodology and Assumptions The cost of power for the two alternative plans has been calculated based on the following: 1. The period of analysis is 20 years beginning in 1982. 2. Inflation of operating and capital costs is 7% annually. Diesel fuel costs escalate at an annual rate of 2.5% over and above inflation resulting in a total inflation/escalation rate of 9.5% annually. R. W. Beck and Associates, Inc. January 12, 1983 Cost of Power Analysis Page 2 3. In the Base Case the two utility systems are assumed to operate inde- pendently of each other. 4. Existing generation capability of AP&T is 780 kW hydroelectric and 3,390 kW diesel. HLP has 4,120 kW of diesel capacity. 5. No debt service or depreciation expenses are included for existing generation facilities. 6. The cost of additional diesel capacity is $800/kW in 1982 dollars. New diesel capacity is added in increments of 400 or 500 kW as needed to supply sufficient capacity for load requirements and reserves. 7. Diesel fuel costs are based on $1. 16/ gallon in 1982 dollars and the fuel usage rate is 12 kWh/gallon. 8. Operation and maintenance costs of diesel generators are assumed to be $120/kW in 1982 dollars. These fixed costs are reduced with the West Creek Project on line to account for mothballing of existing diesel generators. 9. Net credits for offsetting the use of heating oil due to the recovery of waste heat from existing diesel generators is included for the Base Case. 10. Existing diesel generators are assumed to be replaced beginning in 1993 for the Base Case. 11. Construction costs of the West Creek Project are those indicated in the Feasibility Addendum with provisions for inflation applied. No Interest During Construction (IDC) is included to account for assumed state equity provided during construction. The costs for West Creek are as follows: R. w. Beck and Associates, Inc. January 12, 1983 Total Construction Cost (includes inflation during construction) Inflation (1/1/82 -7/1/84) Total Construction Cost Reserve Fund Total Investment Cost Cost of Power Analysis Page 3 $55,326,000 10,196,000 $65,522,000 (1987 dollars) 3,371,000 $68,893,000 (1987 dollars) 12. Operating costs for West Creek are based on 1.3% of total investment cost. 13. Financing of the West Creek Project will be provided with either 60% state equity and 40% long-term debt (35 years, 12% bonds) or 80% state equity and 20% long-term debt. Both of these financing scenarios are analyzed separately. New diesel plant is financed with 100% debt fi- nancing (20 years, 12% bonds). No financing costs have been included. A reserve fund equivalent to 1 year's level debt service is assumed to be established as security on long-term debt. 14. A debt service coverage factor of 1.1 was assumed. The overall effect of this coverage payment on annual costs is negligible as payments made during a year are made available at the beginning of the next year to reduce annual costs. Results Application of the foregoing assumptions and methodology results in the cost of power in 1982 estimated at 19.1, 17.9 and 17.4 cents/kWh for load Scenarios AA, BB and CC, respectively. The variation in these costs for the different load scenarios is due to the assumed fixed operation and maintenance costs. For each of the respective load scenarios, the power costs of the die- sel and West Creek alternatives is essentially the same through 1986 as the West Creek project is not assumed to come on line until January 1987. A slight difference does exist due to the inclusion of waste heat recovery in the diesel alternative. Increases in power costs from 1982 through 1986 are due solely to assumed escalation and inflation in diesel fuel costs and estimated operation and maintenance expenses. R. w. Beck and Associates, Inc. January 12, 1983 Cost of Power Analysis Page 4 The estimated cost of power for the West Creek alternative is higher than that of the diesel alternative for the first few years of operation of West Creek assuming either AA or BB load forecasts. Diesel costs, however, quickly increase to the point where they become higher than those associated with West Creek. This crossover occurs in 1996 for Scenario AA loads, 1992 for Scenario BB loads and 1991 for Scenario CC loads assuming the 60% state equity case. Under the 80% state equity case, these crossover points occur several years earlier as can be expected. The following table summarizes the results of the cost of power anal- ysis and shows the crossover year at which the cost of power with West Creek becomes less than the cost of power with diesel. Estimated Cost of Power (cents/kWh) Scenario AA Loads Scenario BB Loads Scenario CC Loads West West West West West West Creek Creek Creek Creek Creek Creek Year Diesel 60,40 80,20 Diesel 60,40 80,20 Diesel 60,40 80,20 1982 19.1 19.1 19.1 17.9 17.9 17.9 17.4 17.4 17.4 1987(1) 29.0 54.2 36.3 25.2 39.2 26.3 23.4 32.5 21.8 1992 40.6 55.1 39.1 34.8 33.7 24.0 33.5 29.2 20.7 1997 61.5 57.9 43.6 52.0 33.8 25.5 51.7 30.1 22.8 2001 87.1 62.4 49.0 73.7 35.0 27.7 71.9 34.8 28.2 Crossover Year 1996 1992 1992 1988 1991 1987 (1) Assumes a commercial operation date of January 1, 1987 for the West Creek Project. As indicated by these results, inclusion of the West Creek Project as a resource available to Haines and Skagway essentially levelizes the cost of power throughout the study period. The actual magnitude of this levelized cost is dependent on the level of future load requirements and the type of financing used to fund West Creek. The results are shown in greater detail in Tables 1 through 9 and are displayed graphically in Figures 1 through 3. 90 85 ad 75 70 -:::r: 3: 65 ~ ...... fJl ...... 60 z w g 55 a: w 3: 50 0 a.. u. 45 0 ...... ~ 40 0 35 30 25 20 1 5 1 982 1 984 ADDENDUM TO THE HAINES-SKAGWAY REGION FE ASI Bl LITY STUDY ALTERNATIVES' ESTIMATED COST OF POWER Scenario AA Loads West Creek-601 State Equity ------------- ------· 1 986 ·------------------------------- ••• ••• ••• • •• ••• ••• ••• ••• ••• ••• ..... \__ ..... . West Creek-8 OX State Equity 1 988 Base Case-Diesel 1 990 1 992 YEAR 1994 1 996 1 998 2000 C-:D II»• :J~ C• ~m '<CD (') ..... ~ ~II» :J """'a. co,.. QDIIt (o)llt 0 ~. II» r+ CD Cit - :J (') "T1 G) c :D m ..... 90 85 80 75 70 -::r: 3:: 65 ::.::: ........ (I) 1-60 z w g 55 a: w 3:: 50 0 a.. LL 45 0 1- ~ 40 0 35 30 25 20 1 5 1 982 1 984 ADDENDUM TO THE HAINES-SKAGWAY REGION FE ASI Bl LITY STUDY ALTERNATIVES' ESTIMATED COST OF POWER 1 986 Scenario BB Loads Base Case-Diesel ---.. West Creek-6 0 X State Equity •••••• •••••• •••••••••• ••••••••••• •••••••••••• L Wast Craak-80¥ State Equity 1 988 1 990 1 992 YEAR 1994 1996 1998 ••• •••• 2000 c..::u C»• :;,:E C• ~OJ '<('0 n ..... :lit" Pm ::;, -a. (Q> C»IA (r.)IA 0 n C» -('0 lA . ::;, !' ::!! Ci) c: ::D m N 90 65 60 75 70 -J: == :.:::: 65 ....... (f) t-60 z w g 55 a: w == 50 0 a.. u. 45 0 t-6 40 () 35 30 25 ADDENDUM TO THE HAINES-SKAGWAY REGION FE ASI Bl LITY STUDY ALTERNATIVES' ESTIMATED COST OF POWER Scenario CC Loads Base Case-Diesel ----,. West Creek-6 0 ~ State Equity ••• ••• 20 ••• •• s' ••••••• i . -·····················\········· . \ __ West Creek-60~ State Equ1ty 1 5 1 982 1964 1986 1 988 1 990 1 992 YEAR 1 994 1 996 1 996 ••• ••• ••• ••• 2000 C...::D C»· :s=e C• !:m '<(I) n -~ 9m ::J -a. co,. CD Cit c.» Cit 0 ~. C» .... (1) Cit - ::J n . ., G> c ::D m c.» R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: Base Case -Diesel Generation -AA Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Required Service Earnings O$M Cost Required Required Service O'M Cost Cost(9) Year (MWh) (1) ($000) (2) ($000) (3) ( $000) ( 4) ( $000) (5) (MWh) (6) ($000) (7) ($000) (8) ($000) -------------------------------------------------- -------------------------------------- 1982 9,558 0 0 0 0 9,558 0 901 924 1983 8,290 0 0 0 0 8,290 0 921 877 1984 7,976 0 0 0 0 7,976 0 980 924 1985 8,143 0 0 0 0 8,143 0 1,040 1,033 1986 8,330 0 0 0 0 8,330 0 1,105 1,158 1987 8,507 0 0 0 0 8,507 0 1,113 1,295 1988 8,704 0 0 0 0 8,704 0 1,245 1,450 1989 8,888 0 0 0 0 8,888 0 1,323 1,622 1990 9,101 0 0 0 0 9,101 0 1,403 1,818 1991 9,288 0 0 0 0 9,288 0 1,489 2,032 1992 9,511 0 0 0 0 9,511 0 1,579 2,278 1993 9,740 0 (44) 0 0 9,740 444 1,674 2,555 1994 10,034 0 (44) 0 0 10,034 444 1, 773 2,882 1995 10,221 0 (44) 0 0 10,221 444 1,880 3,215 1996 10,384 0 (44) 0 0 10,384 444 1,995 3,576 1997 10,579 0 ( 44) 0 0 10,579 444 2,114 3,990 1998 10,778 0 (120) 0 0 10,178 1,197 2,240 4,451 1999 10,953 0 (120) 0 0 10,953 1,197 2,373 4,953 2000 11,158 0 (120) 0 0 11,158 1,197 2,512 5,525 2001 11,366 0 (120) 0 0 11,366 1,197 2,658 6,162 (1)-Scenario AA loads• less 2900 MWb annually of existing hydro generation. Includes 10\ of Schnabel load. (2)- (3)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)- Total Annual Cost(lO) ($000) -------- 1,825 1,798 1,904 2,073 2,263 2,468 2,695 2,945 3,221 3,521 3,857 4,629 5,055 5,495 5, 911 6,504 7,768 8,403 9,114 9,897 (7)-Debt service for replacement of existing diesel generators. Based on 100\ bond financing, 25-year 12\ bonds. (8)-Assumes $120/KW annually inflated at 7% per year less net credit for waste heat recovery. Total Annual Cost (c/KWh) -------- 19.1 21.7 23.9 25.5 27.2 29.0 31.0 33.1 35.4 37.9 40.6 47.5 50.4 53.8 57.5 u.s 72.1 76.7 81.7 87.1 (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. (10)-CDABAAll t-3 ~ trJ ...... R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: west Creek AA -60% State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings O~M Cost Required Required Service O&M Cost Cost(9) Cost (10) Year (HWh) (1) ($000) (2) ($000)(3) (~000)(4) ($000)(5) (MWh)(6) (~000) (7) ($000) (8) ($000) ($000) ------------------------------------------------------------------------------------------------ 1982 9,558 0 0 0 0 9,558 0 901 924 1,825 1983 8,290 0 0 0 0 8,290 0 964 877 1, 841 1984 7,976 0 0 0 0 7,976 0 1,032 924 1,956 1985 8,143 0 0 0 0 8,143 0 1,104 1,033 2,137 1986 8,330 0 0 0 0 8,330 0 1,181 1,158 2,339 1987 8,507 3,311 (337) 941 0 0 0 632 0 4,607 1988 8,704 3,311 (337) 1,007 0 0 0 676 0 4,117 1989 8,888 3,371 (337) 1,018 0 0 0 723 0 4,835 1990 9,101 3,311 (337) 1,153 0 0 0 774 0 4,961 1991 9,288 3,371 (337) 1,234 0 0 0 828 0 5,096 1992 9,511 3,311 (337) 1,320 0 0 0 886 0 5,240 1993 9,140 3,311 (337) 1,412 0 0 0 948 0 5,394 1994 10,034 3,371 (337) 1, 511 0 0 0 1,015 0 5,560 1995 10,221 3,311 (337) 1,617 0 0 0 1,086 0 5,137 1996 10,384 3,311 (337) 1, 730 0 0 0 1,162 0 5,926 1997 10,579 3,311 (337) 1,851 0 0 0 1,243 0 6,128 1998 10,778 3,311 (337) 1,981 0 0 0 1,330 0 6,345 1999 10,953 3,371 (337) 2,120 0 0 0 1,423 0 6,577 2000 11,158 3,371 (337) 2,268 0 0 0 1,523 0 6,825 2001 11,366 3,311 (337) 2,427 0 0 0 1,629 0 7,090 (1)-Scenario AA loads less 2900 MWh annually of existing hydro generation. Includes lOt of Schnabel load. (2)-Assumes Case 1 financing with 40% 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (3)-Interest earnings at 10% on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7% per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)-Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (7)- ~120/KW annually inflated at 7\ per year. Assumes SOt of existing capacity mothballed in 1987. diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 19.1 22.2 24.5 26.2 28.1 54.2 54.2 54.4 54.5 54.9 55.1 55.4 55.4 56.1 57.1 57.9 58.9 60.0 61.2 62.4 (8)-Assumes (9)-Assumes (10)-CDAWCAll ~ t:<:l N R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Year 1982 1983 1984 1985 198.6 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (1)- (2)- (3)- (4)- (5)- (6)- (7)- Feasibility Study Cost of Power Analysis Alternative: West Creek AA -80\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Required Service Earnings O$M Cost Required Required Service O&M Cost (MWh) (1) ($000) (2) ($000)(3) ( $000) ( 4) ($000) (5) (MWh)(6) ( $000) (7) ($000) (8) ------------------------------------------------------------ -------------------- 9,558 0 0 0 0 9,558 0 901 8,290 0 0 0 0 8,290 0 964 7,976 0 0 0 0 7,976 0 1,032 8,143 0 0 0 0 8,143 0 1,104 8,330 0 0 0 0 8,330 0 1,181 8,507 1,685 (169) 941 0 0 0 632 8,704 1,685 (169) 1,007 0 0 0 676 8,888 1,685 (169) 1,078 0 0 0 723 9,101 1,685 (169) 1,153 0 0 0 774 9,288 1,685 (169) 1,234 0 0 0 828 9,511 1,685 ( 16 9) 1 ,·320 0 0 0 886 9,740 1,685 ( 169) 1,412 0 0 0 948 10,034 1,685 (169) 1,511 0 0 0 1,015 10,221 1,685 (169) 1,617 0 0 0 1,086 10,384 1,685 (169) 1, 730 0 0 0 1,162 10,579 1,685 (169) 1,851 0 0 0 1,243 10,778 1,685 (169) 1,981 0 0 0 1,330 10,953 1,685 (169) 2,120 0 0 0 1,423 11,158 1,685 (169) 2,268 0 0 0 1,523 11,366 1,685 ( 16 9) 2,427 0 0 0 1,629 Scenario AA loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel Assumes Case 2 financing with 20\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. Inflated at 7\ per year. Based on existing capacity of 7510 KW for both systems. Diesel Total Fuel Annual Cost(9) Cost (10) ($000) ($000) ---------------- 924 1,825 877 1,841 924 1,956 1,033 2,137 1,158 2,339 0 3,089 0 3,199 0 3,317 0 3,443 0 3,578 0 3, 722 0 3,876 0 4,042 0 4,219 0 4,408 0 4,610 0 4,827 0 5,059 0 5,307 0 5,572 load. to be $68,893,000. Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 19.1 22.2 24.5 26.2 28.1 36.3 36.8 37.3 37.8 38.5 39.1 39.8 40.3 41.3 42.4 43.6 44 .s 46.2 47.6 49.0 (10)-CDAWCA12 H 6; t"' 1:>1 w R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: Base Case -Diesel Generation -BB Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Required Service Earnings O$M Cost Required Required Service O&M Cost Cost ( 9) Year (MWh) (1) ($000) (2) ($000)(3) ($000) (4) ($000) (5) (MWh) (6) ($000)(7) ($000) (8) ($000) ------------------------------ -------------------- -------------------------------------- 1982 10,885 0 0 0 0 10,885 0 901 1,052 1983 9,946 0 0 0 0 9,946 0 919 1,053 1984 10,204 0 0 0 0 10,204 0 976 1,183 1985 11,159 0 0 0 0 11,159 0 1,035 1,416 1986 11,442 0 0 0 0 11,442 0 1,100 1,590 1987 11,745 0 0 0 0 11,745 0 1,169 1,787 1988 12,218 0 0 0 0 12,218 0 1,237 2,036 1989 12,631 0 0 0 0 12,631 0 1,313 2,305 1990 14,139 0 0 0 0 14,139 0 1,366 2,825 1991 14,972 0 0 0 0 14,972 0 1,436 3,276 1992 15,527 0 (8) 0 400 15,527 80 1,612 3,720 1993 16,107 0 (52) 0 0 16,107 524 1,703 4,225 1994 16,698 0 (52) 0 0 16,698 524 1,796 4,796 1995 17,188 0 (52) 0 0 11,188 524 1,898 5,406 1996 17,115 0 (52) 0 0 17,115 524 2,002 6,101 1997 18,110 0 (52) 0 0 18,110 524 2,116 6,830 1998 18,806 0 ( 140) 0 400 18,806 1,397 2,364 7,766 1999 19,3 85 0 ( 140) 0 0 19,385 1,397 2,490 8,766 2000 19,959 0 ( 140) 0 0 19,959 1,397 2,621 9,883 2001 20,548 0 (140) 0 0 20,548 1,397 2, 756 11,141 (1)-Scenario BB loads less 2900 MWh annually of existing hydro generation. Includes 10% of Schnabel load. (2)- (3)-Interest earnings at 10% on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7% per year. (5)-Based on existing capacity of 7510 KW fo.r both systems. (6)- Total Annual Cost(lO) ($000) -------- 1,953 1,972 2,159 2,451 2,690 2,956 3,273 3,618 4,191 4,112 5,404 6,400 1,064 1,176 8,575 9,418 11,3 87 12,513 13,761 15,154 (7)-Debt service for new and replacement of existing diesel generators. Assumes 100% bond financing, 25-year 12% bonds. (8)-Assumes $120/KW annually inflated at 7% per year less net credit for waste heat recovery. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5% per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.9 19.8 21.2 22.0 23.5 25.2 26.8 28.6 29.6 31.5 34.8 39.7 42.3 45.2 48.4 52.0 60.5 64.5 68.9 73.7 (10)-CDABABll t-'.1 6; t-' t>:l .p. R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: West Creek BB -60\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings O$M Cost Required Required Service O'M Cost Cost(9) Cost (10) Year (HWh) (1) ($000){2) ($000) {3) { $000) (4) ( $000) ( 5) (MWh) (6) ($000) (7) ($000)(8) ($000) ($000) ---------------------------------------------------------------------- ---------- ---------------- 1982 101885 0 0 0 0 10,885 0 901 1,052 1,953 1983 9,946 0 0 0 0 9,946 0 964 1,053 2,017 1984 10,204 0 0 0 0 10,204 0 1,032 1,183 2,215 1985 11,159 0 0 0 0 11,159 0 1,104 1,416 2,520 1986 11,442 0 0 0 0 11,442 0 1,181 1,590 2,771 1987 11,745 3,311 (337) 941 0 0 0 632 0 4,607 1988 12,218 3,311 (337) 1,007 0 0 0 676 0 4,111 1989 12,631 3,371 (337) 1,078 0 0 0 723 0 4,835 1990 14,139 3,371 (337) 1,153 0 0 0 174 0 4,961 1991 14,972 3,371 (337) 1,234 0 0 0 828 0 5,096 1992 15,527 3,311 (337) 1,320 0 0 0 886 0 5,240 1993 16,107 3,371 (337) 1,412 0 0 0 948 0 5,394 1994 16,698 3,371 ( 337) 1,511 0 0 0 1,015 0 5,560 1995 17,188 3,371 (337) 1,611 0 0 0 1,086 0 5,137 1996 17,715 3,371 (337) 1,130 0 0 0 1,162 0 5,926 1997 18,110 3,371 (337) 1,851 0 0 0 1,243 0 6,128 1998 18,806 3,311 (337) 1,981 0 0 0 1,330 0 6,345 1999 19,385 3,371 (331) 2,120 0 0 0 1,423 0 6,577 2000 19,959 3,311 (337) 2,268 0 0 0 1,523 0 6,825 2001 20,548 3,371 (337) 2,427 0 203 0 1,629 110 7,200 (1)-Scenario BB loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)-Assumes Case 1 financing with 40\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (3)-Interest earnings at 10\ on reserve fund assumed to be one year•s level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)-Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (7)- (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.9 20.3 21.7 22.6 24.2 39.2 38.6 38.3 35.1 34.0 33.7 33.5 33.3 33.4 33.5 33.8 33.7 33.9 34.2 35.0 (1 0) -CDAWCB11 ~ t:"" t:r:l VI R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: West Creek BB -80\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings O$M Cost Required Required Service O&M Cost Cost(9) Cost (10) Year (MWh) (1) ($000) (2) ($000) (3) ( $000) ( 4) ( $000) ( 5) (MWh)(6) ($000)(7) ($000) (8) ($000) ($000) ---------------------------------------------------------------------------------------- -------- 1982 10,885 0 0 0 0 10,885 0 901 1,052 1,953 1983 9,946 0 0 0 0 9,946 0 964 1,053 2,011 1984 10,204 0 0 0 0 10,204 0 1,032 1,183 2,215 1985 11,159 0 0 0 0 11,159 0 1,104 1,416 2,520 1986 11,442 0 0 0 0 11,442 0 1,181 1,590 2,111 1987 11,745 1,685 ( 169) 941 0 0 0 632 0 3,089 1988 12,218 1,685 (169) 1,007 0 0 0 676 0 3,199 1989 12,631 1,685 (169) 1,078 0 0 0 123 0 3,311 1990 14,139 1,685 (169) 1,153 0 0 0 774 0 3,443 1991 14,972 1,685 (169) 1,234 0 0 0 828 0 3,578 1992 15,527 1,685 (169) 1,320 0 0 0 886 0 3,722 1993 16,107 I ,685 ( 169) 1,412 0 0 0 948 0 3,876 1994 16,698 I ,685 (169) I ,511 0 0 0 1,015 0 4,042 1995 17,188 I ,685 (169) 1,617 0 0 0 1,086 0 4,219 1996 11,115 1,685 (169) I, 130 0 0 0 1,162 0 4,408 1997 18,110 I ,685 (169) 1,851 0 0 0 1,243 0 4,610 1998 18,806 I ,685 (169) 1,981 0 0 0 1,330 0 4,827 1999 }9 1385 1,685 (169) 2,120 0 0 0 1,423 0 5,059 2000 19,959 I ,685 ( 169) 2,268 0 0 0 1,523 0 5,307 2001 20,548 1,685 (169) 2,427 0 203 0 1,629 110 5,682 (1)-Scenario BB loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)-Assumes Case 2 financing with 20% 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (3)-Interest earnings at 10% on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7% per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)-Assumes 20,209 MWh annual generation from West Creek Project plus 40% of load requirements above 20,209 MWh. (7)- (8)-Assumes $120/KW annually inflated at 7% per year. Assumes 50% of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.9 20.3 21.7 22.6 24.2 26.3 26.2 26.3 24.4 23.9 24.0 24.1 24.2 24.5 24.9 25.5 25.7 26.1 26.6 27.7 (10)-CDAWCB12 ~ ~ 1:21 0\ R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: Base Case -Diesel Generation -CC Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Required Service Earnings O$M Cost Required Required Service O&M Cost Cost(9} Year (MWh) (1) ($000}(2) ($000)(3) ($000)(4) ($000}(5} (MWh) (6) ( $000) ( 7) ($000)(8) ($000) ---------------------------------------------------------------------- ---------- -------- 1982 11,667 0 0 0 0 11,667 0 901 1,128 1983 12,291 0 0 0 0 12,291 0 919 1,301 1984 12,571 0 0 0 0 12,571 0 976 1,457 1985 13,015 0 0 0 0 13,015 0 1,035 1,652 1986 13,673 0 0 0 0 13,673 0 1,094 1,900 1987 14,192 0 0 0 0 14,192 0 1,159 2,160 1988 14,786 0 0 0 0 14,786 0 1,224 2,464 1989 15,303 0 0 0 0 15,303 0 1,297 2,792 1990 16,504 0 0 0 0 16,504 0 1,356 3,297 1991 17,367 0 ( 9} 0 500 17,367 94 1,536 3,800 1992 17,945 0 (9) 0 0 17,945 94 1,622 4,299 1993 18,543 0 (54) 0 0 18,543 538 1, 713 4,864 1994 19,156 0 (54) 0 0 19,156 538 1,807 5,502 1995 19,647 0 (54) 0 0 19,647 538 1,910 6,180 1996 20,209 0 (54) 0 0 20,209 538 2,013 6,960 1997 20,754 0 ( 68) 0 500 20,754 679 2,288 7,827 1998 21,319 0 ( 143) 0 0 21,319 1,432 2,412 8,804 1999 21,933 0 (143) 0 0 21,933 1,432 2,539 9,918 2000 22,524 0 (143) 0 0 22,524 1,432 2,672 11,153 2001 23,129 0 ( 143) 0 0 23,129 1,432 2,808 12,540 (1)-Scenario CC loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)- (3)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6)- Total Annual Cost (10) ($000) -------- 2,029 2,220 2,433 2,687 2,994 3,319 3,688 4,089 4,653 5,421 6,006 7,061 7, 793 8,574 9,457 10,726 12,505 13.746 15,114 16,637 (7)-Debt service for new and replacement of existing diesel generators. Assumes 100\ bond financing, 25-year 12\ bonds. (8)-Assumes $120/KW annually inflated at 7% per year less net credit for waste heat recovery. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5% per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.4 18.1 19.4 20.6 21.9 23.4 24.9 26.7 28.2 31.2 33.5 38.1 40.7 43.6 46.8 51.7 58.7 62.7 67.1 71.9 (10)-CDABACll ~ trJ ..... R.W. Beck and Associates, Inc. Addendum to the Haines-Skagway Region JAN 11, 1983 Feasibility Study Cost of Power Analysis Alternative: West Creek CC -60\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Diesel Total Generation Debt investment Altern. Capacity Generation Debt Diesel Fuel Annual Required Service Earnings OSH Cost Required Required Service O&M Cost Cost(9) Cost(lO) Year (MWh) (1) ($000) (2) ($000) (3) ($000) (4) ($000) (5) (MWh)(6) ($000) (7) ($000) (8) ($000) ($000) ---------------------------------------------------------------------- ---------- ---------------- 1982 11,667 0 0 0 0 11,667 0 901 1,128 2,029 1983 12,291 0 0 0 0 12,291 0 964 1,301 2,265 1984 12,571 0 0 0 0 12,511 0 1,032 1,457 2,489 1985 13,015 0 0 0 0 13,015 0 1,104 1,652 2,756 1986 13,673 0 0 0 0 13,673 0 1,181 1,900 3,081 1987 14,192 3,311 (337) 941 0 0 0 632 0 4,607 1988 14,786 3,311 (337) 1,007 0 0 0 676 0 4, 717 1989 15,303 3,371 (337) 1,078 0 0 0 723 0 4,835 1990 16,504 3,371 (337) 1,153 0 0 0 174 0 4,961 1991 11,367 3,371 (337) 1,234 0 0 0 828 0 5,096 1992 17,945 3,371 (337) 1,320 0 0 0 886 0 5,240 1993 18,543 3,311 (337) 1,412 0 0 0 948 0 5,394 1994 19,156 3,311 (337) 1,511 0 0 0 1,015 0 5,560 1995 19,647 3,371 (337) 1,617 0 0 0 1,086 0 5,737 1996 20,209 3,371 (337) 1,730 0 0 0 1,162 0 5,926 1997 20,7 54 3,371 (337) 1,851 0 327 0 1,243 123 6,251 1998 21,319 3,371 (337) 1,981 0 666 0 1,330 275 6,620 1999 21,933 3,371 (337) 2,120 0 1,034 0 1,423 468 7,045 2000 22,524 3,371 (337) 2,268 0 1,389 0 1,523 688 7,513 2001 23,129 3,371 (337) 2,427 0 1,752 0 1,629 950 8,040 (1)-Scenario CC loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel load. (2)-Assumes Case 1 financing with 40\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed to be $68,893,000. (3)-Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. (4)-Inflated at 7\ per year. (5)-Based on existing capacity of 7510 KW for both systems. (6}-Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (7)- (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. (9)-Assumes diesel fuel cost of $1.16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. Total Annual Cost (c/KWh) -------- 17.4 18.4 19.8 21.2 22.5 32.5 31.9 31.6 30.1 29.3 29.2 29.1 29.0 29.2 29.3 30.1 31.1 32.1 33.4 34.8 (10}-CDAWCCll ~ t-' P:l 00 R.W. Beck and Associates, Inc, Addendum to the Haines-Skagway Region JAN 11, 1983 Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (1)- (2)- (3)- (4)- (5)- (6)- (7)- Feasibility Study Cost of Power Analysis Alternative: West Creek CC -80\ State Equity Total Annual Altern. Less: Re-New Diesel Diesel New Diesel Generation Debt investment Altern. Capacity Generation Debt Diesel Required Service Earnings O$M Cost Required Required Service O&M Cost (MWh) (1) ($000)(2) ($000) (3) ($000) (4) ( $000) ( 5) (MWh)(6) ($000) (7) ($000) (8) -------------------------------------------------- ------------------------------ 11,667 0 0 0 0 11,667 0 901 12,291 0 0 0 0 12,291 0 964 12,511 0 0 0 0 12,571 0 1,032 13,015 0 0 0 0 13,015 0 1,104 13,673 0 0 0 0 13,673 0 1,181 14,192 1,685 (169) 941 0 0 0 632 14,7 86 1,6 85 (169) 1,007 0 0 0 676 15,303 1,685 (169) 1,078 0 0 0 723 16,504 1,685 ( 16 9) 1,153 0 0 0 174 11,367 1,685 (169) 1,234 0 0 0 828 17,945 1,685 (169) 1,320 0 0 0 886 18,543 1,685 ( 169) 1, 412 0 0 0 948 19,156 1,685 (169) 1,511 0 0 0 1,015 19,647 1,685 (169) 1,611 0 0 0 1,086 20,209 1,685 (169) 1, 730 0 0 0 1,162 20,754 1 ,6 85 (169) 1,851 0 327 0 1,243 21,319 1,685 ( 16 9) 1, 981 0 666 0 1,330 21,933 1,685 (169) 2,120 0 1,034 0 1,423 22,524 1,685 ( 169) 2,268 0 1,389 0 1,523 23,129 1,685 ( 169) 2,427 0 1,752 0 1,629 Scenario CC loads less 2900 MWh annually of existing hydro generation. Includes 10\ of Schnabel Assumes Case 2 financing with 20\ 35-year bonds at 12\ annual interest rate. TIC at COD assumed Interest earnings at 10\ on reserve fund assumed to be one year's level debt service. Inflated at 7\ per year. Based on existing capacity of 7510 KW for both systems. Diesel Total Fuel Annual Cost(9) Cost (10) ($000) ($000) ---------------- 1,128 2,029 1,301 2,265 1,457 2,4.89 1,652 2,756 1,900 3,081 0 3,089 0 3,199 0 3,311 0 3,443 0 3,578 0 3,722 0 3,876 0 4,042 0 4,219 0 4,408 123 .. , 733 275 5,102 468 5,527 688 5,995 950 6,522 load. to be $68,893,000, Assumes 20,209 MWh annual generation from West Creek Project plus 40\ of load requirements above 20,209 MWh. (8)-Assumes $120/KW annually inflated at 7\ per year. Assumes 50\ of existing capacity mothballed in 1987. Total Annual Cost (c/KWh) -------- 17.4 18.4 19.8 21.2 22.5 21.8 21.6 21.7 20.9 20.6 20.7 20.9 21.1 21.5 21.8 22.8 23.9 25.2 26.6 28.2 (9)-Assumes diesel fuel cost of $1,16/gallon in 1982 escalated at 9.5\ per year. Fuel rate assumed to be 12 KWh/gallon. (10)-CDAWCC12 ~ t"' tTl \0