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HomeMy WebLinkAboutCircle PCE Economic Analysis Summary Sheet 1990PCE ECONOMIC ANALYSIS SUMMARY SHEET village: Circle Analysis Date: 1/8/90 Summary: RSA estimates a fuel efficiency improvement of 1.0 Kwh/gal achieved by installing a 75 Kw gen-set in place of the existing 90 Kw gen-set. Existing generation equipment consists of a 55 Kw and 90 Kw CAT gen-set. The measured connected load 11/09/88 was 41.4 Kw. The estimated peak connected load is 62.1 Kw. The Capital cost for the New Project Scenario assumes the 75 Kw gen-set is installed in FY90 at an estimated cost of $65,022. The Capital cost for the Current Scenario assumes the 90 Kw gen-set will be replaced in-kind in FY 91 at an estimated cost of $72,909. The Maximum Construction cost based on a 10 year discounted Economic payback is $93,676. The Maximum Construction cost based on a 10 year PCE payback is $31,599.* *NOTE: The PCE rate paid to Circle is based on its utility rate rather than on its APUC approved PCE-elegible fuel and non- fuel costs. I.E., The PCE rate is determined based on the lesser of: 1. The APUC approved fuel and non-fuel costs per Kwh, less $.085/Kwh, times .95 , or 2. The utility’s rate structure minus $.085/Kwh In Circle’s case, the second tariff calculation is used since it is less than the PCE rate based on their APUC eligible costs. Therefore, unless Circle increases its electric rate equal to its eligible costs (approximately $.05/Kwh), there will be no PCE savings. CIRCLE.XLS PCE ECONOMIC ANALYSIS Village: Circle Construction Cost: $65,022 $ 1990 a Elec. Sold FY89: 202436 Kwh * REVISED: January 12, 1990 ) Elec. Increase: 0.00% Net Benefit: $28,654 Fuel Effy FY89: 7.4 Kwh/gal* New Effy: 1 8.4 Kwh/gal Present Value Current Scenario: ($70,785) Fuel Price: 0.824 $/gal** Present Value PCE Scenario: ($42,131) Fuel Price Increase 0.00% Discount Rate: 3.00% Max Construction Cost: $93,676 CURRENT SCENARIO NEW PROJECT SCENARIO ($_ saved) |(gal_saved)| ($ saved) ($) ($_ saved) |(gal_saved)|($ saved) Investment Year $0 0 $0 | ($65,022) $0 0 $0 Savings: $0 0 $0 $0 3,257] $2,684 " $0 0 $0 $0 3,257| $2,684 “ $0 0 $0 $0 3,257) $2,684 a $0 0} $0 $0 3,257] $2,684 “ $0 0} $0 $0 3,257} $2,684 " $0 0 $0 $0 3,257] $2,684 * $0 0 $0 $0 3,257] $2,684 " $0 0 $0 $0 3,257] $2,684 " $0 0 $0 $0 3,257] $2,684 Savings: 0 $0 $0 3,257] $2,684 0 $0 | ($65,022) $0 32,567] $26,835 PV 1990: $0 [| ($65,022) $22,891 NOTES: CURRENT SCENARIO Capital Cost includes the estimated cost to replace a 90 Kw gen-set IN-KIND There are no fuel savings since the gen-set will be replaced in-kind NEW PROJECT SCENARIO Capital Cost includes the estimated cost to install a 75 Kw gen-set Generating fuel efficiency is improved 1.0 Kwh/gal to 8.4 Kwh/gal Fuel (gallons saved) is based on the generation efficiency improvement and Kwh sold in FY89 Fuel ($ Saved) is based on FY90 $/gallon and gallons of fuel saved 0&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, updated 8/16/89 ESTIMATED EFFICIENCY BASED ON OPERATING 90 KW GEN-SET YEAR ROUND, 50 KW GEN-SET IS AVAILABLE ***PCE RATE EXCEEDS THE UTILITY RATE, THEREFORE THERE ARE NO PCE SAVINGS*** Page 1 Investment Year Savings: Savings: ($51,458) # ($51,458) " ($51,458) " ($51,458) " ($51,458) 2 ($51,458) “ ($51,458) “ ($51,458) “ ($51,458) ($51,458) CIRCLE.XLS PCE RATE ANALYSIS CURRENT |NEW PROJECT SCENARIO SCENARIO |APUC/PCE Year |DATA FY89 | PCE ($) | PCE ($) [CAPITAL($) | PCE ($) | 1990| $0 $0 ($52,317) ($52,317) ($52,317) ($52,317) ($52,317) ($52,317) ($52,317) ($52,317) ($52,317) ($52,317) $0 ($49,157) Capital Cost: * Simple Payback, years * Benefit Cost Ratio: $65 ,022 20.58 0.49 ($49,157)| *Maximum Cost for 10yr Payback: | $31,599 ($49,157) ($49, 157) ($49,157) ($49, 157) ($49,157) ($49,157) ($49,157) ($514 5849] ($523, 173)| ($65, 022)[ ($491,574) APUC/PCE DATA, FY89 Fuel Cost: $22,649 Kwh Sold: 200,260 Non- fuel Cost: $81,041 Kwh Sold: 200, 260 PCE Rate: 0.411138 Elig. Kwh Sold: 125,161 PCE Total Costs: $51,458 NOTES: APUC/PCE DATA, FY89 CURRENT SCENARIO, FY90 Fuel Cost: $22,542 Kwh Sold: 202,436 Non- fuel Cost: $89,402 Kwh Sold: 202,436 PCE Rate: 0.418 Elig. Kwh Sold: 125,161 PCE Total Costs: $52,317 PCE Annual Savings: New Proj vs. APUC/PCE 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 NEW PROJECT SCENARIO, Fuel Cost: Kwh Sold: Non- fuel Cost: Kwh Sold: PCE Rate: Elig. Kwh Sold: PCE Total Costs: PCE Annual Savings: New Proj vs. Current is calculated based on CURRENT generating fuel efficiency, kwh sold, and $/gallon for fuel ($49,157)|NOTE: *CIRCLE UTILITY RATE IS LESS THAN PCE RATE, THEREFORE THERE ARE NO PCE SAVINGS FY90 $19,858 202,436 $81,041 202,436 0.392753 125161 $49,157 $3,160 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 NEW PROJECT SCENARIO Fuel Cost 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 CURRENT SCENARIO NON-FUEL COSTS Non-Fuel Cost: $81,041 Capital Cost: $70,785 Depreciation Term: 10 yrs Interest Rate: 7.00% Real Interest Rate: 3.00% Inflation Rate: 3.90% Depreciation and Interest Expense Non-fuel Cost plus depreciation and interest expense: Page 2 $89,402 per year is calculated based on NEW generating fuel efficiency, kwh sold, and $/gallon for fuel $8,361 per year CIRCLE.XLS PCE ECONOMIC ANALYSIS Village: Circle Elec. Sold FY89: Elec. Increase: Fuel Effy FY89: Construction Cost: $65,022 Date: January 8, 1990 Net Benefit: $28,654 Ape IARe New Effy: 1 Present Value Current Scenario: ($70, 785y Fuel Price: Present Value PCE Scenario: ($42,131) Fuel Price Increase 0.00% Discount Rate: Max Construction Cost: $93,676 | ___CURRENT SCENARIO NEW PROJECT SCENARIO Capital , O&M Fuel Fuel ved) |(gal saved)| ($ saved) ($) 7 ($ saved) |(gal_saved)|($ saved) Investment Year 0 $0 | ($65,022) $0 0 $0 Savings: ($72,909) 0 $0 $0 3,257] $2,684 " $0 $0 0 $0 $0 3,257) $2,684 " $0 $0 0 $0 $0 3,257] $2,684 " $0 $0 0 $o $0 3,257] $2,684 " $0 $0 0 0 $0 3,257| $2,684 “ $0 $0 0 / $0 $0 3,257] $2,684 7 $0 $0 0 / $0 $0 3,257] $2,684 " $0 $0 8 $0 $0 3,257] $2,684 " $0 $0 0 $0 $0 3,257] $2,684 Savings: $0 $0 0 $0 $0 3,257] $2,684 ($72,909) $0 5 $0 | ($65,022)] $0 32,567] $26,835 [pv 1990: | «$70,785 [$0 | / so | ($65,022)] $22,891 NOTES: CURRENT SCENARIO Capital Cost includes the estimated cost to replace A 90 Kw gen-set IN-KIND There are no fuel savings since the gen-set will be/replaced in-kind NEW PROJECT SCENARIO Capital Cost includes the estimated cost to insfall a 75 Kw gen-set Generating fuel efficiency is improved 1.0 Kwh/gal to 8.4 Kwh/gal Fuel (gallons saved) is based on the generation efficiency improvement and Kwh sold in FY89 Maximum Construction Cost is equal to/the Construction Cost minus the Present Value Current Scenario * FY89 PCE Data ** 12/31/88 APUC PCE rate filing/ updated 8/16/89 ESTIMATED EFFICIENCY BASED ON QPERATING 90 KW GEN-SET YEAR ROUND, 50 KW GEN-SET IS AVAILABLE ***PCE RATE EXCEEDS THE UTILITY RATE, THEREFORE THERE ARE NO PCE SAVINGS*** Page 1 Investment Year Savings: " Savings: APUC/PCE DATA, FY89 fv | Total: | CIRCLE.XLS PCE RATE ANALYSIS APUC/PCE CURRENT DATA _FY89 | SCENARIO PCE ($) PCE ($)_ |CAPITAL($) ($51,458) ($51,458) ($55,644) ($55,644) ($514,584)| ($556,442)| ($65,022) CURRENT SCENARIO, FY9O NEW PROJECT SCENARIO ($491,574) Capital Cost: PCE ($) $0 $0 $0 * Benefit Cost Ratio: ($51,458)] ($55,644) ($49,157) ($51,458)| ($55,644) ($49,157)| *Maximum Cost for 10yr Payback: ($49,157) * Simple Payback, years Eps // to $65 ,022 10.02 1.00 $64,869 ($49,157)|NOTE: *CIRCLE UTILITY RATE IS LESS THAN ($51,458)| ($55,644) ($49,157) ($51,458)] ($55,644) ($49,157) PCE SAVINGS ($51,458)] ($55,644) ($49,157) ($51,458)| ($55,644) ($49,157) ($51,458)] ($55,644) ($49,157) ($51,458)] ($55,644) ($49,157) Utility Ae = Us - ogy < Sted PCE RATE, THEREFORE THERE ARE NO Aspe 1. PCE wt = 309 | pea NEW PROJECT SCENARIO, FY90 Fuel Cost: $22,649 Fuel Cost: $22,542 Fuel Cost: Kwh Sold: 200,260 Kwh Sold: 202,436 Kwh Sold: Non- fuel Cost: $81,041 Non- fuel Cost: $89,402 Non- fuel Cost: Kwh Sold: 200,260 Kwh Sold: 202,436 Kwh Sold: > es _ PCE Rate: 0.4111 PCE Rate: 0.4445. PCE Rate: Elig. Kwh Sold: 125,161 Elig. Kwh Sold: 125,161 Elig. Kwh Sold: PCE Total Costs: $51,458 PCE Total Costs: $55,644 PCE Total Costs: NOTES: APUC/PCE DATA, FY89 PCE Annual Savings: New Proj vs. APUC/PCE PCE Annual Savings: New Proj vs. Current 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 $19,858 202,436 $81,041 202,436 Gs22753, 125161 $49,157 3e087 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 NEW PROJECT SCENARIO Fuel Cost 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 CURRENT SCENARIO NON-FUEL COSTS is calculated based on NEW generating fuel efficiency, kwh sold, and $/gallon for fuel $8,361 per year Non-Fuel Cost: $81,041 Capital Cost: $70,785 Depreciation Term: 10 yrs Depreciation and Interest Expense Interest Rate: 7.00% Real Interest Rate: 3.00% Inflation Rate: 3.90% Non-fuel Cost plus depreciation and interest expense: Page 2 $89,402 per year TE DARANZSwmVaUuRun 17 o 19 n °o 21 22 23 24 25 26 27 28 29 30 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 S7 ALASKA ENERGY AUTHORITY PAGE: of PCE IMPROVEMENT PROGRAM OATE: 13-Dec-89 LOCATION: CIRCLE, ALASKA PREPARED FOR RSA ENGINEERING FILE: CIRCLE By Clark-Graves, Inc. SS CONSTRUCTION COSTS SS QUANTITY UNIT MATERIAL FREIGHT LABOR LABOR TOTAL OISCIPLINE/ITEMS Hours/ Rate Item Oescr. $/Unit = $/Unit Unit $/Hour Cost ($) 24175 be Fe Pa FURNISH/INST. 75 KW GENERATOR 1 EACH_~—-22,000.00 960.00 ~—-40.000 40.95 $24,598.00 ¢2 °° Freight Out For Old Generator 1 JoB 100.00 960.00 16.000 40.95 $1,715.00 <r -. FURNISH/INST. TOTALIZING METER AND STATION METER i Meter And Socket 2 «EACH 430.00 3.00 2.000 40.95 $1,030.00 Wire And Conduit 20 L. FEET 8.50 1.00 0.150 40.95 $313.00 OPERATOR TRAINER Transportation 350 MILES 0.30 $105.00 Room And Board 6 MANDAYS 125.00 $750.00 Misc. Expense 1 ALLOW 100.00 $100.00 (Salarys Not Included) CHAINLINK FENCE 801. FEET 6.00 6.00 0.571 40.95 $2,831.00 GROUND SYSTEM 1 ALLOW 98.00 8.00 8.000 40.95 $434.00 REWIRE POWER PLANT 100 s-L. FEET 8.79 1.00 0.180 40.95 $1,716.00 STORE GENERATOR 1 ALLOW 100.00 16.00 32.000 40.95 $1,426.00 REINSTALL COVER PLATES 1 vos .000 40.95 $164.00 3478S 21S s 1004 7On HK £248 DIRECT EXPENSE SUBTOTAL: Gen « 7 Rg 835, 182.00 € GENERAL CONTRACTOR SUPPORT TOOLS & EQUIP 2 5% * LABOR: 1 ALLOW 349.00 $349.00 HOME OFFICE EXP.AT 1S%*DIRECT: 1 ALLOW = 5,277.00 $5,277.00 GENERAL REQUIREMENTS Mob/Demob Tools And Equipment 2,000 LBs 0.26 $520.00 Crew 12 R.TRIPS 370.00 66.67 8.000 40.95 $9,171.00 Room And Board 27 MANDAYS 125.00 $3,408.00 Supervision 1 WEEK 100.00 26.67 60.000 40.95 $1,576.00 GENERAL CONTRACTOR SUPPORT SUB-TOTAL: $20, 301.00 DIRECT EXPENSE AND CONTRACTOR SUPPORT SUB-TOTAL: $55,483.00 PROFIT a 25% $13,871.00 TOTAL CONSTRUCTION COST (FY89) a $69,354.00 CONTINGENCY @ 10% ~ 47078 9fr TOL “$6,935.00 CONTRACT COST (FY9O) [Ak bDee = % $76, 289.00 DESIGN COST @ 6% OF FY90 CONTRACT COST $4,577.00 SIOH @ 15.0% OF FY9O CONTRACT COST $11, 443.00 PROJECT COST (FY90) ; $92, 309.00 SALVAGE VALUE (Assumed To Be Negligble) (Not’ Incl.) TOTAL INVESTMENT COST (FY90) Se (Assuming Summer Construction) SS Ol {20 x $93,000.00 ALASKA POWER AUTHORITY R38 POWER COST EQUALIZATION FAPCER13 WONTHLY PCE STATISTICS REPORT FAPCEFO4 -- UTTLITY SUMMARY -- #OF #0F OF CURRENT TOTAL = MONTHLY (a) (b) (c) (a+becy FISCAL FISCAL COMMUNITY DATE POPUL RESID. COMMER. COMMUN. FUEL FUEL TOTAL OPERATING KWH MONTHLY TOTAL KWH TOTAL KWH TOTAL KWH TOTAL KH PERIOD §=YEAR POPULATION CERTIFIED cust cusT FACIL. PRICE CONSUMED FUEL COST EXPENSE GENERAT ELIG. FACIL. ELIGIOLE 8 89 42 07/01/85 7 12 2 0.8470 1819 1549.00 0.00 13726 13726 5095 6096 0 W191 9 89 42 07/01/85 6 12 2 0.9170 2052 1830.52 2770.09 13769 13769 4758 6010 oO 10768 10 89 42 07/01/85 WwW V2 2 0.9670 1515 1336.55 916.48 9772 9772 3607 4099 300 8006 " 89 42 07/01/85 22 4% 2 0.9670 1606 1380.52 2670.07 11159 11159 4440 5613 217 10270 12 oo 42 07/01/85 20 4% 2 0.9670 1892 1830.26 2670.31 13116 13116 5416 5776 150 11342 * Subsubtotal * 20220 17680 .08 32632.48 145069 144728 56715 60600, 3033 120348 ** Subtotal ** 20220 17680.08 32632.48 145069 144728 56715 60600 3033 120348 ** CERCLE ELECTRIC UTILITY - Fy89 * ..... CIRCLE 1 8 70 01/01/01 12 7 3 0.8440 1575 1330.00 0.00 10068 10068 3050 3803 80 6933 2 8 70 01/01/01 5 W 3 0.7890 2480 1956.70 0.00 14690 14690 3602 5922 270 97% 3 89 70 01/01/01 5 3 3 0.7890 2159 1703.00 0.00 16719 16719 3309 7885 370 11564 4 89 70 01/01/01 7 4 3 0.8190 2380 1949.22 0.00 23766 23766 3615 8525 960 13100 5 89 70 vid, 7 % 3 0.8190 2886 2343.14 0.00 21726 21724 4505 5662 1300 11467 6 ao 70 01/01/01 7 “ 3 0.8190 2351 1925.46 0.00 18428 18428 4691 5439 1090 11220 7 0 70 01/01/01 16 12 3 0.8190 2615 1977.88 0.00 21906 21906 497% 6179 970 12123 8 3 70 01/01/01 7 4% 3 0.8190 2618 2120.58 0.00 20728 20728 4646 6240 1080 11966 9 69 70 01/01/01 7 4% 3 0.8190 1800 1476.20 0.00 14620 14620 3792 4813 800 9405 10 3 70 01/01/01 7 4% 3 0.8190 239% 1960.68 0.00 14862 146862 3240 5674 640 54 " 89 70 01/01/01 7 4 3 0.8190 2674 2026.20 0.00 13251 13251 3110 5091 570 e771 12 3 70 01/01/01 7 1% 3 0.8990 1921 1726.97 0.00 116746 11676 3265 5749 250 9264 * Subsubtotal * 27453 22494 .03 0.00 202436 202436 45799 70962 8380 125161 ** Subtotal ** 27453 22494 .03 0.00 2024636 202436/, 45799 70962 8380 125161 AAIE3 oe - FY89 CITY OF AKHIOK ¥8 =7,4 ben $19 /aal eee. AKHIOK 1 89 109 09/01/87 21 2 0 1.1860 1364 1841.90 0.00 oO 2039 1549 490 0 2039 2 89 109 09/01/87 7 1 0 1.1860 1345 1815.75 0.00 oO 2680 1924 570 0 2496 3 8 109 09/01/87 7 3 0 1. 1860 1923 2596.05 0.00 0 879 631 248 0 879 5 3 109 09/01/87 9 2 0 1.1860 2437 2858.09 0.00 0 8656 4546 1880 0 6426 6 89 109 09/01/87 5 2 0 0.0000 2396 2805.00 0.00 0 11701 5227 634 0 5861 7 8 109 09/01/87 5 2 0 0.0000 2242 2858.09 8650.00 0 6612 4664 788 0 5452 * Subsubtotal * ‘ 11707 14776 68 8650.00 o 32367 18541 4610 0 23151 ** Subtotal ** 11707 14776 88 8650.00 0 32367 18541 4610 0 23151 CIRCLE ELECTRIC UTILITY POWER COST EQUALIZATION CALCULATION . Total KWH Generated . Total KWH Sold (Appendix 2) . Total Non-Fuel Costs (Appendix 2) . Non-Fuel Cost/KWH (C / B) . Total Fuel Costs (Appendix 2) . Fuel Costs/KWH (E / B) . Eligible Costs/KWH (D + F) . Eligible Cost/KWH (G) Less 8.5 cents/KWH . Lesser of (G) or 44 cents/KWH . Average Class Rates (Appendix 3) Prior Commission Utility Determination Request 202,831 200, 260 75,041 81,641 $0.3700 $0.4077 $23,489 $25,288 $0.1158 $0.1263 $0.4858 $0.5340 $0.4008 $0.4490 $0.4400 $0.4400 $0.3650 $0.3650 Class Power Cost Equalization Per KWH Payable by APA $0.3650 $0.3650 _ Lesser of: (1) (H) x 95%, or (J) APPENDIX 1 Staff Recommendation 200, 260 81,041 $0.4047 $22,649 $0.1131 $0.5178 — $0.4328 $0.4400 $0.3650 $0.3650 "Aw APPENDIX 2 CIRCLE ELECTRIC UTILITY SCHEDULE OF ELIGIBLE POWER COSTS, SALES AND EFFICIENCY FOR PERIOD ENDING DEC 31, 1988 NOTE: See Appendix 2A for instructions and detail. Prior Commission Per Staff Per Determination Utility Adjustments Staff Non-Fuel Costs: Personnel Costs $36,370 $39,797 $0 $39,797 Power Plant Parts & Supplies 0 6,911 0 6,911 Repairs and Maintenance 17,705 13,928 0 13,928 General and Administrative 13,238 11,322 (600) 10,722 Depreciation 5,433 6,005 0 6,005 Interest Expense 2,295 1,702 0 1,702 Other- Miscellaneous 0 1,976 0 1,976 Total Non-Fuel Costs $75,041 $81,641 ($600) $81,041 Fuel Costs: Gallons Consumed for Electric Generation 27,830 27,487 0 27,487 Price of Fuel: (cents per gallon) Weighted Average Price 0.844 0.824 0 0.824 (See Appendix 2A for instructions) Most Recent Price $0.920. 0.844 0.92 0 0.92 Date Purchased 8/16/89 Total Fuel cost (I X J) or (I X K) $23,489 $25,288 0 $22,649 KWH Sales 202,831 200,260 0 200, 260 Efficiency (0 / I) 7.29 729 0 7.29