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HomeMy WebLinkAboutMetlakatla Bids, Orders, Invoice Payments 1987 £,. 42,38) 50 SHEETS 5 SQUARE oe | 2G RE font Slices C00 ge (PX 24 bmn day — our chow WM Arange ony ; O-/S 0 be: 9 Ul whe Yor - PS Bldg ws Wdelts Be dle Min Soovo {jw - Ful : GT eh/ges #2 LAs + [20 faeh ? OTT WATER ENGINEERS, 12310 N.E. 8th Street Bellevue, Washington 98005 206/453-9039 July 2, 1987 $340.00/1 : RECEIVED Mr. Bill Kaltenekker Ml = Metlakatla Power and Light - P.O. Box 346 a Metlakatla, Alaska 99926 ‘a7 JUL 24 AND 41 Dear Bill: a This is our proposal to perform a study of the feasibility to use waste heat from the new diesel plant to heat the swimming pool. SCOPE The study will include technical and economic aspects and will have three parts: Part I. A) We will consider the available heat by building the weekly profile of when the diesel typically operates to support the mill swing load. If there are seasonal differences in the mill's schedule, a separate profile will be drawn for each season. Using the diesel manufacturers data, we will construct a waste heat available curve. B) Next the swimming pool heat demand curve will be constructed to match the demand with the supply. We will take into account whether the pool needs heat during the night when the Diesel is not running and the heat transfer losses. If there is a satisfactory match between supply and demand, we will then estimate the cost of the facilities necessary to move the heat to the pool. Cc) Along with the cost estimate, we will propose a rate to be charged for the heat. This rate will be based on the current electric power rate and will take into account that the energy provided will be less convenient and therefore less valuable than electric energy. D) Given the construction costs and the possible revenue stream, we will estimate the rate of return. If the rate of return should be negative, we will estimate the maximum allowable cost that would provide a reasonable rate of return and suggest options for meeting the allowable cost. Anchorage Bellevue Redding Mr. Bill Kaltenekker June 29, 1987 Page 2 Part II. A) We suspect that the diesel will offer more heat than the pool can use, at least part of the time. We will then examine the feasibility of a district heating scheme where heat will first be provided for municipal facilities and the packing plant and then for the entire community. Hopefully, we can find a reasonable seasonal demand factor. From the community demand profile, the required operating schedule for the diesel will be determined. Here we confront the classical co-generation problem: How to balance electric power and heat needs. Most likely, backup electric boilers will be required. At this point, this study and the operations study interface: Would there be water available to support such a scheme? The costs, revenue stream, and rate-of-return will be examined, as in Part I above IIl. This is the most interesting portion of the study. If we find the possibility of ai1.5 to 2 MW heat load, then the backup electric boilers could be used as the prime source of heat and be switched on and off to meet the mill swing load. A common load manage-ment technique is to switch off electric heat load during peaks such as heavy industrial load swings. Silicon controlled rectifiers have been on the market for twenty years and are a mature, reliable technology. They are one possibility of switching devices capable of responding fast enough to switch off the heat load to meet the mill swing load. The diesel would then be operated only during peak load seasons and as back up during low water periods. B) Again,the costs, revenue stream, and rate of return as in Part I above will be examined. PERSONNEL Mr. CF Malm has the professional experience in electrical and economic analysis required for this study and he would be the Project Manager. The mechanical and heat transfer expertise would be provided by the POWER SYSTEMS DIVISION of CUMMINS NORTHWEST. POWER SYSTEMS Mr. Bill Kaltenekker June 29, 1987 Page 3 has designed and furnished numerous diesel waste heat recovery systems and co-generation plants. They would assist in the technical evaluation of the mechanical systems and steam/hot water lines required and the cost estimates thereof. Mr. Dennis Dorratcague will review the study. COST AND COMPLETION The three parts would require a minimum of 300 hours from Mr. Malm, POWER SYSTEMS, and Mr. Dorratcague. We understand the limit of available funding, and we offer all three parts for a firm fixed price of $12,000. Billings would be 60 percent upon completion and submittal of Part I and 20 percent each for completion and submittal of Parts II and III. Because of the interface between the operations study and our involvement with the Chester Lake Hydro Project, the study will require 90 days for completion of Parts I and II. Part III will be completed at the conclusion of the operations study. If the conclusions are promising, the Metlakatla Indian Community and the Alaska Power Authority may want to consider a further study of implementation and financing possibilities. We believe it is quite possible that the typical Southeast Alaska community could be energy independent except for motor fuel. Metlakatla with the lowest power rates in Alaska, is the logical community to be the prototype of that effort. Sincerely yours, OTT WATER ae’ INC. Cc. F. Malm 2 &, Electrical Project Manager cc: Roy Taylor, APA 4 | CFM/ 39%470 tO ide bev S04e fT ea Ibo KPeree 210 0ff ea. Luo _ FY e000 Tereh. (ok ek 266400 Powe pUewk, Ame ehatiry manfetes 24uvo bea. 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