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HomeMy WebLinkAboutLevelock PCE Economic Analysis Summary Sheet 1990PCE ECONOMIC ANALYSIS SUMMARY SHEET Village: Levelock Analysis Date: 1/8/90 Summary: RSA estimates a fuel efficiency improvement of 1.0 Kwh/gal ONLY DURING THE SUMMER will be achieved by REPAIRING the existing 50 Kw gen-set. Existing generation equipment consists of a 50 Kw John Deere and 2-130 Kw CAT gen-sets. The measured connected load 6/26/89 was 18.4 Kw. The estimated peak connected load was not calculated. The Capital cost for the New Project Scenario assumes the 50 Kw gen-set is REPAIRED in FY90 at an estimated cost of $54,955. The Capital cost for the Current Scenario assumes the 50 Kw gen-set will be replaced in-kind in FY 90 at an estimated cost of $65,000. The Maximum Construction cost based on a 10 year discounted Economic payback is $70,206. The Maximum Construction cost based on a 10 year PCE payback is $51,438. NOTE: The fuel efficiency improvement should be more than 1 Kwh/gal running a 50 Kw gen-set instead of a 130 Kw gen-set loaded at only 15 to 20 Kw. Since no information was provided regarding the esitmated peak connected load, it is possible that the 130 Kw machines are oversized for winter loads also. LEVELOCK.XLS PCE ECONOMIC ANALYSIS Village: Levelock Construction Cost: $54,955 Date: January 8, 1990 Elec. Sold FY89: 366269 Kwh * Summer FY89: 57033 Kwh * _S 1/9/30 Elec. Increase: 0.00% Net Benefit: $15,251 Fuel Effy FY89: 9.2 Kwh/gal* New Effy: 1 10.2 Kwh/gal,SUMMER ONLY Present Value Current Scenario: ($65,000) Fuel Price: 1 $/gal** Present Value PCE Scenario: ($49,749) Fuel Price Increase 0.00% Discount Rate: 3.00% Max Construction Cost: $70,206 CURRENT SCENARIO NEW PROJECT SCENARIO Year Capital 0&M Fuel Fuel ($) ($ saved) |(gal saved)| ($ saved) ($) ($ saved) |(gal_ saved)|($ saved) Investment Year 1990] ($65,000) $0 ($54,955) $0 Savings: $0 $0 $610 " $0 $0 $610 " $0 $0 $610 “ $0 $0 $610 “ $0 $0 $610 " $0 $0 $610 “ $0 $0 $610 6 $0 $0 $610 " $0 $0 $610 Savings: $0 $0 $610 Total: [ ($65,000)] SOT ($54,955) $0 ($54,955) [$5,206 NOTES: CURRENT SCENARIO Capital Cost includes the estimated cost to replace a 50 Kw gen-set IN-KIND There are no fuel savings since the gen-set will be replaced in-kind NEW PROJECT SCENARIO Capital Cost includes the estimated cost to repair the 50 Kw gen-set Generating fuel efficiency is improved 1 Kwh/gal to 10.2 Kwh/gal during SUMMER ONLY Fuel (gallons saved) is based on the generation efficiency improvement and Kwh sold during SUMMER FY89 Fuel ($ Saved) is based on FY90 $/gallon and gallons of fuel saved O&M costs savings are assumed negligible Maximum Construction Cost is equal to the Construction Cost minus the Present Value Current Scenario plus the Present Value PCE Scenario * FY89 PCE Data ** 12/31/88 APUC PCE rate filing Page 1 LEVELOCK.XLS AYP [also PCE RATE ANALYSIS APUC/PCE CURRENT |NEW PROJECT SCENARIO Capital Cost: $54,955 DATA FY89 | SCENARIO PCE ($) | PCE ($) |CAPITAL(S) | PCE (S) | Simple Payback, years 10.68 Investment Year $0 $0 ($54,955) $0 Benefit Cost Ratio: 0.94 Savings: ($61,854)] ($61,355) ($56,212) = ($61,854)] ($61,355) ($56,212)| Maximum Cost for 10yr Payback:| $51,438 " ($61,854)} ($61,355) ($56,212) " ($61,854)| ($61,355) ($56,212) " ($61,854)| ($61,355) ($56,212) " ($61,854)| ($61,355) ($56,212) " ($61,854)} ($61,355) ($56,212) “ ($61,854)} ($61,355) ($56,212) " ($61,854)| ($61,355) ($56,212) Savings: ($61,854)| ($61,355) ($56,212) ($618, 543)[($613,555)| ($54,955)] ($562,116) APUC/PCE DATA, FY89 CURRENT SCENARIO, FY9O NEW PROJECT SCENARIO, FY90 Fuel Cost: $38,180 Fuel Cost: $39,899 Fuel Cost: $39,288 Kwh Sold: 337,706 Kwh Sold: 366,269 Kwh Sold: 366,269 Non-fuel Cost: $82,411 Non- fuel Cost: $90, 088 Non-fuel Cost: $82,411 Kwh Sold: 337,706 Kwh Sold: 366,269 Kwh Sold: 366,269 PCE Rate: 0.258484 PCE Rate: 0.25639988 PCE Rate: 0.2349041 Elig. Kwh Sold: 239,296 Elig. Kwh Sold: 239, 296 Elig. Kwh Sold: 239296 PCE Total Costs: $61,854 PCE Total Costs: $61,355 PCE Total Costs: $56,212 PCE Annual Savings: $5,643 PCE Annual Savings: $5,144 NOTES: New Proj vs. APUC/PCE New Proj vs. Current APUC/PCE DATA, FY89 Fuel Cost, Non-fuel Cost, and Kwh Sold are from the latest APUC PCE rate filing Eligible Kwh Sold is from the annual AEA FY89 PCE report CURRENT SCENARIO Fuel Cost is calculated based on CURRENT generating fuel efficiency, kwh sold, and $/gallon for fuel Non-fuel Cost includes APUC/PCE DATA Non-fuel cost PLUS depreciation and interest expense for the new equipment Kwh Sold is from the annual AEA FY89 PCE report Eligible Kwh Sold is from the annual AEA FY89 PCE report for SUMMER ONLY NEW PROJECT SCENARIO Fuel Cost is calculated based on NEW generating fuel efficiency, kwh sold, and $/gallon for fuel Non-fuel Cost is from the latest APUC PCE rate filing Kwh Sold is from the annual AEA FY89 PCE report Eligible Kwh Sold is from the annual AEA FY89 PCE report for SUMMER ONLY CURRENT SCENARIO NON-FUEL COSTS Non-Fuel Cost: $82,411 Capital Cost: $65,000 Depreciation Term: 10 yrs Depreciation and Interest Expense $7,677 per year Interest Rate: 7.00% Real Interest Rate: 3.00% Inflation Rate: 3.90% Non-fuel Cost plus depreciation and interest expense: $90,088 per year Page 2 ALASKA ENERGY AUTHORITY PAGE: of PCE IMPROVEMENT PROGRAM OATE: 13-Dec-89 LOCATION: LEVELLOCK , ALASKA PREPARED FOR RSA ENGINEERING FILE: LEVEL By Clark-Graves, Inc. pene o2 = == pa ee CONSTRUCTION COSTS pucsesasas=== $5 == 55 a eS QUANTITY UNIT MATERIAL FREIGHT LABOR LABOR TOTAL DISCIPLINE/ITEMS Hours/ Rate Item Oescr. $/Unit $/Unit Unit $/Hour Cost ($) 1 (4,332 Fo WA GAA 422,833 fon mwey 2 REPAIR GENERATOR ENGINE 1 EACH ,000.00 1,044.00 60. 40.95 $8,501.00 - 3 4 SERVICE METER, SOCKET & BREAKER 1 EACH 252.00 35.00 6.000 40.95 $533.00 5 6 OPERATOR/VILLAGE UTILITITES MANAGER TRAINING 7 Transportation 1 R.TRIP 600.00 35.00 $635.00 8 Room And Board 6 MANDAYS 125.00 $750.00 9 Misc. Expense 1 ALLOW 100.00 $100.00 10 (Salarys Not Included) 1 12 - = 13 22933 7 sel= 2.67 4 15 16 17 18 19 20 21 22 23 24 25 26 27 a or 28 OIRECT EXPENSE SUBTOTAL: 30 Ore - 290. - a _ CO Oe _—_E LL 30 31 GENERAL CONTRACTOR SUPPORT 32 33 TOOLS & EQUIP 2 5% * LABOR: 1 ALLOW 135.00 $135.00 34 HOME OFFICE EXP.AT 15%*OIRECT: 1 ALLOW 1,578.00 $1,578.00 35 GENERAL REQUIREMENTS 36 Mob/Demob 37 = Tools And Equipment 10,000 LBS 1.16 $11,600.00 38 Crew 12 R. TRIPS 370.00 290.00 8.000 40.95 $11,851.00 39 Room And Board 16 MANOAYS 125.00 $2,025.00 40 Supervision 1 WEEK 100.00 116.00 60.000 40.95 $2,673.00 4) 42 GENERAL CONTRACTOR SUPPORT SUB-TOTAL: $29,862.00 43 44 DIRECT EXPENSE ANO CONTRACTOR SUPPORT SUB-TOTAL: $40,381.00 45 46 PROFIT 2 25% $10,095.00 47 TOTAL CONSTRUCTION COST (FY89) _ 4 6. hype 35408 09 CONTINGENCY 2 10% - + $5,048.00 49 CONTRACT COST (FY90) 2 OE 54959 ~ 14) 60 $55,524.00 50 DESIGN COST 3 6% OF FY90 CONTRACT COST Moe $3,331.00 51 SIOH @ 15.0% OF FY9O CONTRACT COST 9OSkL $8,329.00 52 PROJECT COST (FY90) $67, 184.00 2 SALVAGE VALUE (Assumed To Be Negligble) (Not Incl.) TOTAL INVESTMENT COST (FY90) 4 55 (Assuming Summer Construction) F cyag = 409 §€$68, 000.00 $6 ——<—$— $< $$ 57 FISCAL «FISCAL «= COMMUNITY DATE POPUL PERIOD §=6YEAR POPULATION «CERTIFIED « LEVELOCK ELECTRIC CO-OP * ...+- LEVELOCK 1 69 110 2 8 110 3 a 110 4 89 110 5 3 110 6 3 110 7 6 110 68 0 110 9 J 110 10 6 110 W 8 110 12 a 110 * Subsubtotal * ** Subtotal ** «* MANLEY UTILITY CO. © rccce MANLEY HOT SPRINGS 1 89 ” 2 3 ” 3 a 9 4 89 9 5 89 9 6 8 ” 7 89 9 8 89 9 9 89 9 10 89 99 W 8 9 12 89 ” * Subsubtotal * ** Subtotal ** - FY89 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 09/30/85 - FY89 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 01/01/84 # OF RESID. cust 47 51 51 51 51 5s 45 50 5s 51 5 51 AWRBSRAAIIRIAT ALASKA POWER AUTHORITY POWER COST EQUALIZATION MONTHLY PCE STATISTICS REPORT uTicity # OF # OF CURRENT COMMER. COMMUN. FUEL cust FACIL. PRICE 13 2 0.9300 % 2 1.1900 13 2 1.1900 4% 2 1.1900 4 3 1.1900 4% 2 1.1900 5 5 1.1900 6 2 1.1900 15 4 1.1100 ab 4 1.1100 4 4 1.1100 15 4 1.1100 5 1 1.0560 46 1 0.0000 4 1 1.1160 “4% 1 1.1160 4 1 1.1160 13 1 1.1600 4 1 1.1600 % 1 0.7650 5 1 0.7680 15 1 0.7680 1% 1 0.7680 16 1 0.7680 1896 2775 3275 3576 3744 3859 4083 3346 4013 3190 3707 2615 39681 39681 2854 2201 2027 2300 2350 2805 2342 2239 1832 1589 26613 26613 SUMMARY 1927.38 2816.73 3326.13 3629.64 3800.57 3917.49 4144.55 3397.10 4073.30 3238.15 3762.81 2639.75 40471.60 40471.60 2919.64 2456.32 2262.13 2240.93 2566.80 2622.60 3130.38 1791.63 1719.55 1586.69 1406.98 1220.35 , 25926 .00 25924 .00 R38 FAPCER13 FAPCEFOS TOTAL «MONTHLY OPERATING kw EXPENSE GEWERAT 36240.78 0 36260.78 o 2299.44 0 0.00 0 0.00 oO 0.00 o 8258.52 oO 0.00 0 0.00 oO 0.00 0 0.00 0 10858.37 0 0.00 0 0.00 0 21416.33 0 21416.33 0 5000.00 24480 5000.00 24320 5000.00 28240 6500.00 28480 6500.00 31520 6500.00 34260 6500.00 35120 6500.00 26480 6500.00 26640 6500.00 24560 6500.00 22320 6500.00 17440 73500.00 325840 73500.00 325840 (a) MONTHLY TOTAL Kwit KWH SOLD ELIG. RESID. 321902 124560 321902 124560 5 703% Semen 14571 ~ 8924 21286 - 11010 28696 12543 33340 14558 36715 16778 36262 17264 45413 — 19337 30241 16037 36206 16191 33216 14468 29167 13000 21176 - 9257 366269 169367 366269 4956) 169367 2 Ang ee Geile, 18578 9712 19809 10685 22993 11079 24706 11521 28581 12926 28358 12914 26940 11843 31959 12176 22668 9662 20957 9340 17619 8287 15544 8183 278912 128328 278912 128328 1491 2508 2655 3012 3233 3118 3226 3076 2761 2726 2587 33387 33387 5012 4959 5420 4828 6545 5897 5672 5392 5569 5334 5423 4826 877 64877 (c) TOTAL KWH ELIG. FACIL. 32255 32255 2780 2236 2144 3249 3517 3031 3335 yuu 3091 2955 2899 419% 36542 36542 “7 43 357 370 47 292 2263 251 -855 a 3251 3251 (a+ b+c) TOTAL KAW ELIGIBLE 199637 199637 semama, 199G7 13195 15754 17342 20819 23528 23413 25896 22162 22358 20184 18627 16038 — 239296 239296 14687 15687 16578 16706 19841 18958 17807 19831 15531 14925 12855 13050 196456 196456 APPENDIX 1 LEVELOCK ELECTRIC COOPERATIVE, INC. POWER COST EQUALIZATION CALCULATION FOR PERIOO ENDING 12/31/88 Prior Comission Utility Staff Determination Request Recommendation A. Total KWH Generated B. Total KWH Sold (Appendix 2) 332,772 337,706 337,706 C. Total Non-Fuel Costs (Appendix 2 $ 86,502 83,411 82,411 D. Non-Fuel Cost/KWH (C / B) 0.2599 0.2470 0.2440 E. Total Fuel Costs (Appendix 2) $ 43,035 38,180 38,180 F. Fuel Costs/KWH (E / B) 0.1293 0.1131 0.1131 G. Eligible Costs/KWH (D + F) 6.3892 0.3601 0.3571 H. Eligible Cost/KWH (G) Less 8.5 cents/KWH 0.3042 0.2751 0.2721 I. Lesser of (G) or 44 cents/KWH 0.3042 0.2751 0.2721 J. Average Class Rates (Appendix 3) Residential & Small Commercial 0.3450 0.3450 0.3450 School 0.3095 0.3095 0.3095 Class Power Cost Equalization Per KWH Payable by APA K. Lesser of: (1) (H) x 95%, or (J) 0.2890 0.2613 0.2585 €. LEVELOCK ELECTRIC COOPERATIVE, INC. SCHEDULE OF ELIGIBLE POWER COSTS, SALES AND EFFICIENCY FOR PERIOO ENDING 12/31/88 NOTE: See Appendix 2A for instructions and detail. Prior Commission Per Determination Utility Non-Fuel Costs: Personnel Costs 40,660 42,112 Power Plant Parts & Supplies Repairs and Maintenance 8,689 General and Administrative 34,538 21,946 Depreciation 7,285 7,460 Interest Expense 4,019 3,204 Total Non-Fuel Costs 86,502 83,411 Fuel Costs: Gallons Consumed for Electric Generation 43,035 38,180 Price of Fuel: (cents per gallon) Weighted Average Price (See Appendix 2A for instructions) Most Recent Price _1.00__ average cost_ 1.000 1.000 Date Purchased 9/30/88 Total Cost of Fuel ( I X J) 43,035 38,180 KWH Sales 332,772 337,706 Efficiency (0 / I) 7.73 8.85 APPENDIX 2 Staff Adjustments (1,000) (1,000) Per Staff 42,112 0 8,689 20,946 7,460 3,204 82,411 38,180 1.000 38,180 337,706 8.85