Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Power Cost Study for Cordova Electric Cooperative 1985
‘I 1935-2600 POWER COST STUDY ror CORDOVA ELECTRIC COOPERATIVE, April 1985 W. D. Bechtel Cordova, Alaska Coe Oz2O INC. 1985 POWER COST STUDY TABLE OF CONTENTS Page 24) LHECOGUICLOMs < oe eels nase meee OG Ca odicn rr ee II. Background...... eieletsiereie aie alevelelelichelenetene olistiorelel siisiicloreneteielciaiiaL: III. Analysis of System Requirements.........cceeeceees 2 A. Outage Record......... eee ee eee saeemiel | e B. Future Capacity Requirements..... la ech nt oe a oe. el! ee On ee re eer eee 5 D. Real Estate and Zoning............. Rrelais labo icneis isle 9 EB. | | WareNGusing. .'./...65 scicwss ele ta el ela oie onsite! esr ei iee elle ia eis 4)) LE F. Power Plant Automation......... silotels) oie) ele al selcielolel) eo) IV. Alternatives to be Considered ..... stleleleielisiellsvelel cies s16 iz A. | | Generation ALPernatiyesi.s.c s/6)c icc dle ciexe oe lewis 6 los 12 ODELOM Weicic.. tise lere! ae i ai We is eel ede lel ee we se let sw Pee | pe pb ee rr Terre Ceeteuchoenus 20 Ope tter, Baek oy <.5)/0)5)e)aleiasisisieies © © eteree Ee ail ole aueielcie a. cate 28 GPE relate Dele. . 6015 |eisicies melee 0.6. 6 ola.es bo Wie @ a elaigie are o 36 CEL Oly Wee cro ore iete aio otter oor sere tore epee eatsorelioneuny 5 es men a CCA Wiles coe aed ee cdiee de (i tase me te loc nal ac a sone SOrA OPELON) VAI Ge oie eel clare) > Joho) e140) eieisie ie ielsheloiarere Sisieo ees) SOE B.| Fuel Supply and.Storage........5.55 hoch el onallol clot oldie SL Ope Ole aisles oiclelo/e)olicie's) clelere/orrelletenele siellcttele/ slelsiiolslcialieie | (53 GOCLOR Bie ics sc ciecennes aa a te allel & em lenlah a ee oll os oe eo ee aie sialelerelelerelelelerere Sielfelololetellaiielalcrerers 55 ODER). || oieie 6 slelolels o sielisiete siereteleie sMelfelalelieleie sl e\ellone | 56 ROE o 05110) Svilgiclicle: » 6 1s/efekay e.01/e. 0 elo lelelictlel sl e\elie)ietie! ofa diets | OTE Gert Fs swe 's oc )sicve 510 cdekwe hee sa els oe do coesees oO CUES. Geis cewcsaes t+ shee ee eh ae « cieph teuted Se ODEON Hie)! « Sisicieis ereucleiene iMioietenollal simisisitel sia oie Jods aioe bo 59-A C.| | }COntrol | Systems). s)-/<.0. eels) stant eeellal susie) Siavatiel eletateto a2 6| 60 D. Summary of Energy Alternatives ...........-00. 62-A Vv. Summary and Conclusions..... oun celas cack eh wale & 63 Appendix A--Cost Estimates Appendix B--Power Plant Staffing Levels (Revised 4/24/85) 1985 POWER COST STUDY TABLE OF CONTENTS FOR APPENDIX APPENDIX A Cost Estimate Page BYAK PQWETG URL ANC cere leloiciele wielaleloisioncls! =) el ercileelersicis/ sisierelelerele/sie A-1 i Si ae Peer eee eee TeCLer eee C TEPER TPETL LEP ee A-2 UREC HS ore wo see ole onic «9151s 0 winlie © vislvim 0c) vilpe © 6 <s oes 6466 Re eae A=3 New 1,000 KW Peaker...... eiclenenonsis iene enone sl etedellolencheraieteletelteier ors A-4 New 5,000 KW Bage Load: Unit. cic cc sews cies se SIS CS esc a's A-5 New Line Shed and Vehicle Garage..........eceeeeeccees A-6 Option A--Fuel Tanks At Eyak Power Plant.............. A-7 Option B--Fuel Tanks At Eyak Power Plant.......ccccceee A-8 Option C--Fuel Tanks At Eyak Power Plant........ vessee Bae Option E--Fuel Tanks At Orca Power Plant...... Secoecee Avl2 Optiion F--Fuel Tanks At Orca Power Plant... .....0000s0 A-13 Option G--Lube Oil Tank At Orca Power Plant........... A-14 Option H--Fuel Tanks At Orca & Eyak Power Plants...... A-14-A Preliminary Cost Estimate for Humpback Creek Hydro.... A-14-B Summary Of Tank Costs... 5 <. Ole elaiere © Gis e Giaie oles Sossiclet steels © A-15 APPENDIX B Power Plant Staffing Levels...... c2eee ex onc eee Cowes Ee B-1 (Revised 4/24/85) Table Table Chart Chart Table Chart Chart Table Table Table Table Chart Chart Talbe Table Table Table Chart Chart Table Table Table Table Chart Chart Table Table Table Table Chart Chart Table Table Table Table Chart Chart Table Table Table Table Chart Chart Table Table Table Table Chart Table Table Table Var tet eh tt Ot HHHHHHHHHHHH ERR ER COOO00C0KCOOOOCOCOOCOOCONMUwWY Pe ee ee a ef ere es<sssss<s<<<4¢ 1oOaAwWrnreK OoOogo0o00o0o0000000 HHHHHH H H ey OVE 2 1985 POWER COST STUDY LIST OF CHARTS AND TABLES Service Interruptions.........ccccceecee Energy Forecast ASSuMptioOns. ....sccsscsce Peak Greve DOMARE 6.6. see ees Cece eeeees Winter Peak Demand..........ccccccccccee Comparison Or Fuel Cost <:< 2... 1.0. 30 =a Firm GCapeeity Gocioh 1... ccwscccwvenscaws Reliable Capacity Option I.............. Generation Statistics Option I.......... Cost of Power--No Inflation Option I.... Cost of Power--3% Inflation Option I.... Summary of Expenses Option I............ Pie CHPACL SY GUETOR Eh ss 9.40 os 5s Peden ww Beliahieo Capacity Option IT... keen ccassce Generation Statistics Option II........ . Cost of Power--No Inflation Option II... Cost of Power--3% Inflation Option II... Summary of Expensés Option If........... Five Capacity Option. Tit «co sac cc cksewe Reliahbie Capacity Gption TIT... se cccecine Generation Statistics Option Til..36... 5 Cost of Power--No Inflation Option III.. Cost of Power--3% Inflation Option III.. Summary of Expenses Option III........e; Fite COPRCIEY GptiONn T¥en ws cece vews veess Reliable Capacity Option IV............. Generation Statistics Option IV......... Cost of Power--No Inflation Option IV... Cost of Power--3% Inflation Option IV... Summary of Expenses Option IV........... Pisce COmAGicy Cpcian Vince cae vdeo ces'e ae Reliable Capacity Option Vi. .ccceccccess Generation Statistics Option V.......... Cost of Power--No Inflation Option V.... Cost of Power--3% Inflation Option V.... Summary Of Expenses Option Ve. ics sete ve Fire COBECI CY GOES. Vi. oo kee bee racdes Reliable ‘Capacity Opkion Vi... < sacs. ccs Generation Statistics Option Vi... «0. «s.3 Cost of Power--No Inflation Option VI... Cost of Power--3% Inflation Option VI... Summary of Expenses Option VI. <0. ccs 60s Fitm Capacity Optio Vid ves osc see sticeee Reliable Capacity OBtiOn. Vit. is.c.c 2% ssieidts Generation Statistics Option VII........ Cost of Power--No Inflation Option VII.. Cost of Power--3% Inflation Option VII.. Summary of Expenses Option Vii.......... ee ae Te eT rs Peer Alternative Humpback Creek Costs........ Cost of Power Summarys o.c<s.3 3. Stee eee Fuel Sto age. Cpt Lae « 6ie-s 60.00% 0040-500 5-0-0% 30 50-B 30-€ 30-D 50-E 50-F 50-G 50-J 50-K 50-L 50-M 50-N 50-0 S52 62-B 65 (Revised 4/24/85) CORDOVA ELECTRIC COOPERATIVE, INC. 1985 POWER COST STUDY age INTRODUCTION The purpose of this study is to determine the generation requirements of Cordova Electric Cooperative over the next 15 years. Several alternatives involving Cordova Electric Cooperative's two power plants and additional generation are evaluated. The desired alternative will provide lowest cost reliable power. II. BACKGROUND Cordova Electric Cooperative is a consumer-owned electric utility serving Cordova, Alaska and the surrounding area. Cordova Electric Cooperative began operation in 1978 when it took over the municipal electric utility. Cordova Electric Cooperative serves both Act and Non-Act consumers. (For the purpose of this study, Act consumers are those living in areas that did not have power in 1968 and thus qualify as rural under the REA Act.) Act consumers currently account for 30 percent of the Cooperative's sales while Non-Act consumers account for 70 percent. Cordova Electric Cooperative is not interconnected with any other system and generates all of its power with diesel engines. Since its formation in 1978, the Cooperative has purchased two new generators and built a new power plant. Both Cordova Electric Cooperative and the Alaska Power Authority are investigating alternative forms of energy to replace the high cost energy generated with diesel fuel. There are many possible alternatives, but none are considered of high enough probability to be included in this report. Cordova Electric Cooperative currently operates the Eyak Power Plant which has the following engines installed: Unit KW_ Output Age #1 1,900 KW TS yrs. #2 2,650 KW 12 Wre. #7 600 KW 46 yrs. #8 750 KW 46 yrs. 1985 POWER COST STUDY The age and condition of Units #7 and #8 make them unreliable for base load and suitable only for short-term peaking duty. Cordova Electric Cooperative also operates the Orca Power Plant which has the following engines installed: IIl. Unit KW_ Output Age #3 2,500 7 es. #4 2,403 L =. ANALYSIS OF SYSTEM REQUIREMENTS Outage Record. The outage record of Cordova Electric Cooperative has averaged above the REA guidelines of five consumer hours per year. Table A-I shows the cause of these outage hours. With a 15 minute start to on-line time for the average generator, it is difficult to plan to improve the outage record due to generation. The major source of outages is dig-ins by contractors. Future Capacity Requirements. There have been many studies which have attempted to determine the future population and industrial composition of Cordova. These were summarized by Stone & Webster in the Cordova Power Supply Interim Feasibility Assessment. Table B-1 summarizes the criteria used in the electrical load projections. Recently, CEC solicited opinions from employees, Board members and members of the community as to their current views of Cordova's future. In general, the views tend to agree with Stone & Webster's analysis of slow but steady growth. Chart B-1 shows the peak load projections of Stone & Webster along with actual peak loads. This is the peak load averaged over 15 minutes which we reach at any time during the year. With our fishing industry, the peak occurs during summer months. Cordova Electric Cooperative must be able to meet this load even with the largest unit down for repairs. This is called the "firm" capacity. The firm capacity of our total system (both power plants operating, but the largest unit out of service) is 8153 KW. This is sufficient to meet our 1985 POWER COST STUDY TABLE A-1 Service Interruptions Year Plant Storm Prearranged L979 4.12 mo) 1980 2.79 -76 1981 2.40 2.61 1982 8.26 0 1983 a5 -14 1984 -84 -98 All Other Categories: Source 1983 Fault -56 Dig In 2.43 ; Unknown 70 Overload 0 Total Jufl 10) 4.29 soe wid «33 ke All Other 6.21 1.30 2.12 3.58 So77 2.22 Total 22aee 9.14 T-10 it..95 5). 19 4.16 i985 POWER COST STUDY TABLE B-1l The following is a summary of the energy forecast assumptions for Cordova. ° Employment will grow at an annual rate of about 1.5 percent in the economic sectors of trade services and fishing. The trade and service sectors will increase by about 4.0 percent per year as tourism and recreation opportunities increase. Manufacturing employment, primarily processing, will increase by 1.5 percent per year. The growth will keep pace with estimated increases in fish harvests. Surface transportation is assumed to increase by only 2 percent per year. This employment will result from increases in tourism and recreation. Government employment will grow at a rate of only 1 percent per year. Secondary employment estimates are based on an employment multiplier of 1.47. This low multiplier is reasonable in view of the convenience to purchase goods and services in Anchorage. As the trade and commercial sectors of Cordova's economy grow, a higher multiplier can be expected as discussed in the OCS Study page 61. Population estimates are based on a population employment ratio of 2.0, the 1978 ratio. This ratio resulted in a forecasted population growth of 1,320 from 1981 to the year 2000 for the Cordova area. The low-growth scenario is used as the basis for change in the number of electric customers and the use per customer for the other growth scenarios. No OCS leasing. Half of the new growth for Cordova would come from new developments and improvements in the fish processing industry. Half would come through development of the local service sector. A shift from canning to freezing is considered with three freezers added over the next five years. 1985 POWER COST STUDY summer loads until the 1990's. Individually, the Orca Plant has a firm capacity of 2400 KW, the Eyak Plant a firm capacity of 3250 KW. Obviously, both power plants will meet the peak load with a major unit out of service. However, neither power plant alone can do this. Equally important is the winter load. During the winter months, Cordova Electric Cooperative must be able to meet the loads with one unit out of service for an extended period of time (such as for an overhaul) and have another engine fail with a mechanical problem. Since the maximum loads occur during the summer months, Cordova Electric Cooperative does not schedule any work on engines that would have them out of service for an extended period of time. Chart B-2 shows the peak winter loads. There are several important points to consider in the chart. First, during 1979 and earlier, the peak winter electrical loads (due to the crab fishery) ran approximately 90% of the summer peak loads. Since 1980, the winter loads have run 2/3 of the summer peak. The lower line on Chart B-2 is based on 2/3 of the summer peak load. If the winter crab industry is expected to be reestablished, the upper line would represent the capacity necessary during the winter months. For the purposes of this document, only the "no winter fishing" case will be considered. Fuel Supply. All diesel fuel used by Cordova Electric Cooperative is supplied by Chevron USA who maintain bulk storage tanks near the Orca Power Plant. Cordova Electric Cooperative has investigated the feasibility of installing its own bulk storage tanks on several occasions. The current cost differential between the wholesale price of diesel at the Kenai Refinery and the price paid by Cordova Electric Cooperative in Cordova does not support installation of tanks by Cordova Electric Cooperative. This option will continue to be reviewed periodically in the future. Table C-1 shows the cost analysis prepared in early 1984. Cordova Electric Cooperative currently maintains 10,000 gallons of storage of fuel at the Orca Power Plant. This tank is well diked and meets all Environmental Protection Agency requirements for pollution prevention DEMAND (MW) 12.0 11.0 10.0 3.0 8.0 7.0 6.0 D0) 4.0 SO 2.0 tO 0x0 PEAK SYSTEM DEMAND 1963 POWER COST SIUDY ea | 7 aT T rood T 1% T 7 T T T T T T ne 82 84 86 88 90 92 94 96 98 2000 YEAR DEMAND (MW) WINTER PEAK DEMAND 1985 POWER COST STUDY 12.0 ——— ee 1.0.4 1020 4 920] 8.0 4 704 0.0 Sa ah a al aa | am eae (esl eZ 84 86 88 90 92 94 96 98 2000 YEAR CHART B-2 1985 POWER COST STUDY TABLE C-1 COMPARISON OF COST OF FUEL FROM KENAI REFINERIES VS. PURCHASE FUEL FROM CHEVRON Cost of #2 Diesel Fuel at Kenai $.79/gallon Cost of #2 Diesel Fuel From Chevron $.925/gallon Cost of 30,000 Barrel (1.2 million gallons) $9,000.00 per day Cost to Deliver 30,000 Barrel to Cordova (6 day round trip) $ 54,000.00 Cost of 1.5 million gallon tanks with dike, piping 1,000,000.00 Annual Cost of Maintaining Tanks 20,000.00 Depreciation of Tanks (35 years) 28,571.00 Interest on $1,000,000. at 5% 50,000.00 Interest on Fuel in Tank 1/2 at 5% 31,250.00 Total Annual Cost 109,821.00 Freight Costs 54,000.00 Cost of Fuel (1,250,000 gallons) 987,500.00 Total Costs $1,451, 321.00 Cost of 1,250,000 gallons from Chevron $1,156,250.00 1985 POWER COST STUDY and control. During the winter months, this tank (when full) provides three days supply of fuel. During the summer, this tank provides less than a two day supply. Chevron has informed us that normal interruption may exceed this limit. Chevron has recommended a four to seven day emergency reserve supply. The Eyak Power Plant currently has the following tanks: Size Use 130,000 gal. Bulk Storage 10,000 gal. Not in Use 4,000 gal. Fuel Storage for #7 & #8 1,000 gal. Day Tank for #7 & #8 4,000 gal. Enterprise Day Tank 300 gal. #1 Intermediate Day Tank These tanks are not adequately diked and Cordova Electric Cooperative has informed the Environmental Protection Agency that a final decision on providing dikes for the tanks at Eyak Power Plant will be reached no later than June 30, 1985. Real Estate and Zoning. The location of the Orca Power Plant is currently unzoned, but the use of the entire area is heavy industrial. Within a short distance of the Power Plant is the Morpac Fish Processing facility, the Chevron fuel tank farm, the municipal dock and an industrial staging area. If this area is later zoned, our use of the area for power production will be protected. The property of the Eyak Power Plant is within the Eyak Lake AMSA (Area Meriting Special Attention). This area is under study for inclusion in a special restrictive use zoning to protect and improve the water quality of Eyak Lake. The use of the Eyak Power Plant site for power production is a non-conforming use. Cordova Electric Cooperative will be allowed to continue the present use of the site, but expansion or additions will not be permitted. 1985 POWER COST STUDY E. Warehousing. Under cover, out of the weather storage is very limited. The line materials building consists of an open faced storage shed used for storing line hardware, such as bolts, insulators, fused cutouts, etc. Steel and PVC conduit, pipe and riser guard are stored on the ground under the open faced warehouse. There is no security for these items, but vandalism and theft do not appear to be a problem. The "line shed" is an old two story building left over from Copper River Highway construction days. This building provides storage for underground construciton materials, meters, and street light parts. This building is heated by electric heat. The building provides the only secure storage for line materials. Fis Power Plant Automation. The Orca Power Plant was designed to run unattended. The control system is a straight-forward relay operated system that contains the following capabilities: a. Remote start/stop of each engine from the Eyak Power Plant. Future improvements will allow the Eyak Power Plant to control the specific load on each unit. aie Selection of a "first unit" by manual switch. The first unit is the unit that will remain running if two engines are no longer required. Re Automatic start/stop of the standby unit by the "first unit". Load sharing automatically provides that each engine take one-half the load when both are on line. 4. Automatic Black Start. If the power goes off, both engines will try to start. The first engine up to speed will automatically place itself on line and take the load. This feature is normally not used since the initial cold load pickup is usually above the capacity of either engine by itself and would result in a shutdown of that unit on overload. Note that the system does not have the capability to be expanded to handle the involved decision making if a third unit is added to the power plant at a later time. 10 1985 POWER COST STUDY IV. ALTERNATIVES TO BE CONSIDERED IN THIS STUDY A. Generation Alternatives. There are several options available concerning Eyak Power Plant. The three basic options are: a. Keep Eyak Power Plant as is. as Sell the plant and move one or more engines to the Orca Plant. 3. Use the Eyak Plant as a line materials storage facility with no generation. 4. Suitable storage must be provided for line materials plus emergency supplies of wire. We currently store wire outside in a non-secure area. Provisions must be provided for secure storage. aL 1985 POWER COST STUDY ANALYSIS OF GENERATION ALTERNATIVES OPTION 1 This option maintains both the Eyak and Orca Power Plants. Adequate diking would be provided around all oil tanks. The open faced warehouse and the line shed would be removed. The Eyak Power Plant would be modified to provide storage for line crew materials and provide a line crew ready room. Additional oil storage would be provided at the Orca Power Plant. The Orca Plant would be operated as base load during the non-fishing periods and the Eyak Plant would be base loaded during fishing and the Orca Plant would be used to meet peak loads. Units #7 and #8 would be retired in 1989 if a major mechanical problem does not occur earlier. These units were built in 1939. According to legend, they served out the second World War on ship, served as the prime generation for Chugach Electric Association until the late 1950's when they were sold to the City of Cordova. They provided full time prime power until Unit #1 was installed in 1973. There is no total hour meter on them, but it is estimated they they have accumulated over 250,000 hours on them. The normal life expectancy of a light weight engine such as these is 100,000 hours. In 1989 these units will be 50 years old and it is doubtful that they will be useful. A new 5,000 KW medium speed (720 rpm or less) unit will be purchased and placed in operation in 1992. The unit would be installed in an addition to the Orca Power Plant building. No other generation will be purchased during the study period. Since no additional generation would be required until 1992, more will be known about the possibility of an alternative energy source which can be evaluated when the final decision on the 1992 unit is made. Chart O-I-1 shows the peak system load and system firm capacity under this option. Adequate reserve exists during the study period. Chart O-I-2 shows the winter system peak load and the system reliable capacity under this option. Adequate reserve capacity is maintained throughout the study period. 12 1985 POWER COST STUDY Table O-I-A shows the generation statistics for this option by year. Table O-I-B shows the cost of this option in constant (1985) dollars. Table O-I-C shows the cost of this option in actual dollars with a three percent inflation rate. Tables O-I-B and O-I-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. Table O-I-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. 1 vT DEMAND (MW) PEAK SYSTEM DEMAND 1985 POWER COST STUDY 12.0: == 11.0 - Firm Capacity OOF YEAR CHART O-I-1 ST DEMAND (MW) WINTER REAK DEMAND ae a __1985 POWER COST STUDY SS 11.0 - Reliable Capacity 10.0 4 9.0 4 1 0.0 re ee gee reper energie pee) 82 84 86 88 90 92 94 96 98 2000 YEAR CHART O-I-2 GPTION I---KEEP EYAK PLANT AS STANDBY TABLE O-I-A TOTAL ANNUAL KWH GENERATION INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE 2 (NEW PLANT} INFLATION BATE GENERATION CAPACITY EYAK PLANT CAPACITY ORCA PLANT NEW UNIT TOTAL CAPACITY SYSTEM PEAK LOAD SYSTEM WINTER PEAK LOAD SYSTEM FIRM CAPACITY SYSTEM RELIABLE CAPACITY PEAK LOAD EXCESS CAPACITY WINTER LOAD EXCESS CAPACITY KW kW Ki KW kW kW kW KW ku ku 5900 4903 10803 5000 5350 8153 5653 S153 2303 16 18.5 0.0716 0.1125 0.00 5900 4903 10303 _ 5100 3417 8153 5653 3053 2236 5900 4903 10803 5300 3551 8153 5653 2853 2102 5900 4905 10803 _ 5400 3618 8153 5653 2753 2035 4550 4903 9453 5600 3752 6803 4303 1203 S51 21.7 0.0716 0.1125 e 0.00 4550 4903 9453 5800 3836 6803 4303 1005 417 23.0 0.0716 0.1125 0.00 4550 4903 9453 6000 4020 6805 4303 803 283 4550 4903 5000 14453 6800 4556 9453 6803 2653 2247 4550 4903 9000 14453 7000 4690 9AS3 6803 2453 2113 26.6 0.0716 0.1125 4550 4903 5000 14453 7200 4824 9453 6803 2253 1979 0.00 4550 4903 $000 14453 7400 4958 9453 6803 2053 1945 4550 4903 5000 14453 7600 5092 9453 6803 1853 il 4550 4903 5000 14453 7900 5293 9453 6803 1553 1510 4550 4903 5000 14453 8100 $427 9453 6805 1353 1376 « 35 0.0716 0.1125 0.00 4550 4903 5000 14453 8300 5561 9453 6303 1153 1242 1985 POWER COST STUDY OPTION I---KEEP EYAK PLANT AS STANDBY TABLE O-I-B TOTAL ANNUAL KWH GENERATION INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE 2 (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT TOTAL INVESTHENT ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT INTEREST EYAK PLANT ~— EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIME COSTS ANNUAL VARTABLE COSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/KWH INVESTMENT PER KW DEMAND UNIT 1985 MM KWH 18.0 0.0538 0.1125 0.00 MM GAL 1.385 $/GAL 0.94 MILLION $ $1.295 $ 1719809 $ 150900 $ 4120150 $ 25000 $ $ 6014959 $ 64775 $ 4770 $ 198142 $ 78 $ 0 $ 92526 $ 8070 $ 221664 $ 1345 $ 0 $ 4000 $ 151032 $ 162732 MILLION $ 1.295 $ 71000 $ 2275466 0.1264 $ 556.79 7 1719809 180000 4120150 35009 6054959 64775 5724 198142 L113 0 123158 12888 295003 2506 0 4000 155227 162732 1.351 71472 2427297 0.1512 560.49 1719809 135000 4120150 40000 6064959 64775 5883 198142 1272 0 123138 13246 295003 2864 0 4000 161940 162732 1.388 71590 2492701 0.1292 561.41 1719809 190000 4120150 45000 6074959 64775 6042 198142 1431 0 123138 13604 295003 3222 0 4000 170331 212732 1.460 71708 2624166 0.1295 562.34 1719809 195000 4120150 30000 6084959 64775 6201 198142 1590 0 123138 13962 295003 3580 9 4000 174526 212732 1.456 71826 2665475 0.1281 643.71 1719809 200000 4120150 -59000 6094959 64775 6360 198142 1749 0 123138 14320 295003 3938 0 4000 182077 2127352 1.561 71944 2738910 0.1262 644.76 1719809 205000 4120150 60000 6104959 64775 6519 198142 1908 0 123138 14678 295003 4296 0 4000 192985 212732 1.654 72062 2844470 0.1237 645.82 1719809 210000 4120150 65000 2850000 8964959 64775 6678 198142 2067 90630 123138 15036 295003 4654 320625 4000 207249 212732 1.777 105822 3427051 0.1387 620.28 1.992 0.94 $1.863 1719809 215000 4120150 70000 2850000 8974959 64775 6837 198142 2226 90630 123138 15394 295003 5012 520625 4000 217318 212732 1.863 105940 3524580 0.1561 620.98 1994 1995 26.6 27.1 0.0716 = 0.0716 0.1125 0.1125 0.00 0.00 2.046 2.085 0.94 0.94 SL913 $1,949 1719809 1719809 220000 ©—-225000 4120150 4120150 75000-30000 2850000 2850000 8984959 8994959 6477564775 6996 7155 198142 198142 2385 2544 30630 90630 123138123138 15752 16110 295003 ©. 295003 5370 5728 320625 320625 4000 4000 223192 227387 212732 212732 1.913 1.949 106058 106176 3581951 3623260 0.1347 0.1337 621.67 622.36 23.0 0.0716 ~ 0.1125 0.00 2.154 0.94 $2.014 1719809 230000 4120150 85000 2850000 9004959 64775 7314 198142 2703 90630 123138 16468 295003 6036 320625 4000 234939 212732 2.014 106294 3696695 0.1320 623.05 23.8 0.0716 0.1125 0.00 2.215 0.94 $2.071, 1719809 235000 4120150 90000 ~ 2850000 9014959 64775 7473 198142 2862 ~ 90630 123138 16826 295003 6444 320625 4000 241651 212732 2.071 106412 3762098 0.1306 623.74 1719809 240000 4120150 95000 2850000 9024959 64775 7632 198142 3021 90630 123138 17184 — 295003 6802 520625 4000 251720 212732 2.158 106530 3859626 0.1287 624.45 1719809 245000 4120150 100000 2850000 9034959 64775 7791 198142 3180 90630 123138 17542 295003 7160 320625 4000 264306 212732 2.266 106648 3981249 0.1264 625.13 1719809 250000 4120150 105000 2850000 9044959 64775 7950 198142 3339 906350 123138 17900 295003 7518 320625 4000 275214 212732 2.559 106766 4086809 0.1246 625.82 ( TABLE O-I-C 1985 POWER COST STUDY OPTION I---KEEP EYAK PLAKT AS STANDBY TOTAL ANNUAL KWH GENERATION MM KWH 18.0 18.5 19.3 20.3 20.8 21.7 23.0 24.7 25.9 26.6 27.1 28.0 28.8 30.0 31.5 32.8 INTEREST RATE % (EXISTING PLANT) 0.0538 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 INTEREST RATE 2 (NEW PLANT) 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 ~ 0.1125 0.1125 0.1125 0.1125 071125 0.1125 0.1125 0.1125 0.1125 0-125 INFLATION RATE 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.05 ANNUAL FUEL CONSUMPTION MM GAL 1.385 1.423 1.485 1.562 1.600 1.669 1.769 1.900 1.992 2.046 2.085 2.154 2.215 2.508 2.423 2.523 FUEL COST /GAL $/GAL 0.96 0.99 1.02 F205))))/7))).68 poi 1.15 1.18 1.22 1.26 1.29 1.33 1.37 1.41 1.46 1.50 TOTAL ANNUAL FUEL COST MILLION $ $1.333 $1.412 $1.517 $1.643 $1.734 $1.864 $2.034 $2.250 $2.431 $2.571 $2.698 $2.871 $3.042 $3.264 $3.530 $3.786 INVESTMENTS EYAK PLANT $ 1719809 1719809 1719809 1719809 1719809 =—-1719809 1719809 = 1719809-= 1719809» 1719809 »=—«1719809 «1719809 ~=-:1719809»—s-:1719809»=:1719809 »=—-:1719809 EYAK CHANGES $ 150000 180000 190550 201417 212609 224137 236011 248242 260839 275814 287179 300944 315122 329726 344768 360261 ORCA PLANT $ 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150» 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150» 4120150 += 4120150 ORCA CHANGES $ 25000 35008 41200 47586 54164 60938 67917 75104 82507 90132 97986 106076 114408 122991 131830 140935 eet) i Ale i ee | 5 I 3718604 3718604 3718604~—-3718604 3718604 3718604 «= 3718604 ~ 3718604 =: 3718604 —~ TOTAL INVESTMENT $ 6014959 = 6054959 = 6071709 = 6088962 «= 6106732 = 6125035 = 6143887 = 9881908 ~=—- 9901909 ~=—- 922509 =: 9943728 ~=—-9965583 «9988093 10011279 10035161 10059759 ANNUAL FIXED COSTS” i | , i i mT DEPRECIATION EYAK PLANT $ 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 64775 ~ -EYAK CHANGES ~ $ 4770 $728 6059 ~ 6405 6761 7128 7505 7894 8295 870791329570 10021 10485 10964 —£t456 ORCA PLANT $ 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 ORCA CHANGES $ 798 1113 1310 1513 1722 1938 2160 2388 2624 2866 S116 3373 3638 3911 4192 4482 NEW UNIT $ 0 0 0 0 0 0 0 118252 118252 ~ 118252 118252 ~~ 118252 118252 118252° ~~ 118252 ~~ 118252 INTEREST EYAK PLANT $ 92526 123138 123138 123138 123138 1231358 123138 123138 1231358 123138 123158 123138 123138 123138 123138 123138 EYAK CHANGES $ 8070 12838 13643 14421 15223 16048 16898 17774 18676 19605 20562 21548 22563 23608 24685 25795 ORCA PLANT $ 221664 295005 295003 295003 295003 295003 295005 295003 295003 295003 295003 295003 295003 295003 295005 295003 ORCA CHANGES $ 1545 2506 2950 3407 3878 4365 4863 5377 5908 6453 7016 7595 8192 8806 9439 10091 NEW UNIT $ 0 0 0 0 0 0 0 418343 418343 418343 418343 418345 418343 418343 418343 418343 RENT $ 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 ~ ONE TIME COSTS — ANNUAL VARIABLE COSTS MAINTENANCE $ 135565 164681 176956 191709 202323 217410 237548 2625357 283551 299951 514757 534966 354873 380749 411780 441637 OPERATIONS $ 167614 172642 177822 233156 240151 247356 254776 262419 270292 278401 286753 295355 304216 313343 322743 332425 FUEL MILLION $ 1.333 1.412 1.517 1.643 1.734 1.864 2.034 2.250 2.431 2.571 2.698 2.871 3.042 3.264 3.530 3.786 INSURANCE vn 71000 71472 71670 71874 72083 72299 72522 116645 116881 117124 117375 117633 117898 118172 118454 118744 SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST $ 2523718 2527693 =: 2652300 = 2850829 = 2961474 «= 3115194 = 5315625 4147106 = 4358420 «= 4525880 §=—- 4678395 = 4882956 §=—- 5084952 5344430 = 653605 = 5951909 TOTAL COST OF ELECTRIC ENERGY $/KWH 0.1291 0.1366 0.1378 0.1404 0.1424 0.1436 0.1442 0.1679 0.1683 0.1701 0.1726 0.1744 0.1766 0.1781 0.1795 0.1815 INVESTMENT PER KW DEMAND $ 556.79 560.49 562.04 563.64 646.01 647.95 649.94 683.73 685.11 o86.54 688.00 689.52 691.07 692.68 694.33 696.03 18 1985 POWER COST STUDY TABLE O-I-D 1985 Expenses (1985 Dollars) Capital (One time) Costs: Provide Dike at Eyak Power Plant $130,000. Annual Recurring Costs S$=18275S9- 1992 Expenses (1985 Dollars) Capital Costs: . Purchase 5,000 KW Unit $2,850,000. Recurring Annual Costs Associated With 5,000 KW Unit $ 411,255. 19 1985 POWER COST STUDY OPTION ITI This option would sell the Eyak Power Plant building and property except for the City Shop and substation. The existing tanks, the line shed and the open faced warehouse would be removed or left in place depending on commercial considerations at the time of sale. Some arrangement would be made with the City for the space they occupy. Units #1, #7 and #8 would be removed and sold. Unit #2 would be relocated to the Orca Power Plant. A new 1,000 KW peaker (900 rpm EMD or equivalent) would be purchased and installed in the Orca Plant. A 40 foot addition would be made to the existing Orca Power Plant building. An area on the existing Orca lot would be cleared off to provide secure storage of wire and transformers. A new piece of property would be leased from the City and a new 30 ft. by 30 ft. line shed building would be built. The line shed building could be built on the existing Orca Plant property with no significant change in cost. Additional fuel storage tanks would be installed at the Orca Plant to increase the fuel storage to the desired level. A new 5,000 KW, medium speed unit would be purchased in 1992. This unit would be installed in a 20 foot addition to the Orca Power Plant. This would use all of the land available at the Orca site for generation, except for the work area in the existing Orca Plant which could hold one additional unit. No additional generation would be required during the study period. The actual date for installation of the 5,000 Kw unit could be adjusted as necessary to meet load growth. Chart O-II-1 shows the peak system load and firm capacity under this option. It is possible that the 1992 unit (5,000 KW) may have to be installed as early as 1990 or 1991 to meet peak loads. Chart O-II-2 shows the winter peak loads and the reliable capacity to meet these loads. This option does not provide the necessary capacity as early as 1986 and either the size of the 1,000 KW peaker must be increased or a second new unit must be purchased immediately. Table O-II-A provides the generation statistics used for Charts O-II-1 and O-II-2. Table O-II-B shows the various costs associated with this option in constant (1985) dollars. Table O-II-C shows the costs associated with this option with a three percent inflation rate. Table O-II-B and O-II-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. 20 1985 POWER COST STUDY Table O-II-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. 2 te DEMAND (MW) Pik Sri 1985 POWER COST STUDY DEMAND 12.0 11.0 4 10.0 4 9.0 4 8.0 4 7.04 2:0 = er 82 84 ae Firm Capacity 86 ils i) T T T iat 88 90 oe YEAR CHART O-II-1 94 96 7 oe ie) ie ee a) oP 98 2000 SG DEMAND (MW) 12.0 WINTER PEAK DEMAND 1985 POWER COST STUDY 11.0 1.O:OF- S2Or 8.0 Reliable Capacity YEAR CHART. O-1I=2 TABLE O-II-A TOTAL ANNUAL KWH GENERATION INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE % (NEW PLANT) INFLATION RATE SENERATION CAPACITY EYAK PLANT CAPACITY ORCA PLANT NEW UNIT AT ORCA TOTAL CAPACITY SYSTEM PEAK LOAD SYSTEM WINTER PEAK LOAD SYSTEM FIRM CAPACITY SYSTEM RELIABLE CAPACITY PEAK LOAD EXCESS CAPACITY WINTER LOAD EXCESS CAPACITY kW Ki kW kW kW kW kW kW kW kW 24 5900 4903 10803 5000 3350 8153 5653 S153): 2303 18.5 0.0716 0.1125 0.00 7353 1000 8553 5100 3417 5903 3403 803 -14 0.1125 0.00 0 7953 1000 8553 5400 3618 5903 5403 503 -2i5 20.8 0.0716 0.1125 0.00 0 7553 1000 9553, 9600 3752 5903 3403 303 “449 23.0 0.0716 0.1125 0.00 7553 1000 8553 6900 4020 5903 3405 ror “61? 24.7 0.0716 0.1125 0.00 0 7353 6000 15553 6800 4556 8553 5903 1753 1347 25.9 0.0716 0.1125 0.00. 0 7553 6000 15553 7000 4690 8553 5903 aloes 1213 26.6 0.0716 0.1125 0.00 0 7553 6000 13953. 7200 4824 8553 5903 mulsagene 1079 _ 13853 27.1 0.0716 0.1125 wal 0 7353 6000 7400 4958 8553 5903 ss 945 DESCRIPTION TOTAL ANNUAL KWH GENERATION INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE % (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT TOTAL INVESTMENT ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT INTEREST EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIHE COSTS ANNUAL VARIABLE COSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/KWH INVESTMENT PER KW DEMAND MM GAL $/GAL MILLION $ ovwvwvw ovrwve wwwuwve $ $ MILLION $ $ $ 25 1.385 0.94 $1.295 1719809 0 4120150 25000 5864959 64775 0 198142 795 0 92182 0 220840 2813 0 4000 151032 162732 1.295 71000 2262926 0.1257 542.90 18.5 0.0716 0.1125 0.00 1.423 0.94 $1.35] 1719809 0 4120150 35000 2035000 7909959 0 0 198142 1113 142450 123138 0 295003 3938 228938 4000 376830 155227 162732 1.331 95756 86070 3031834 0.1639 924.82 1.485 0.94 $1,388 1719809 0 4120150 40000 2035000 THAISI 0 0 198142 1272 142450 123138 0 295003 4500 228938 4000 161940 162732 1.388 99817 -86070 2719977 0.1409 925.40 1.562 0.94 $1.460 1719809 0 4120150 45000 2035000 7919959 0 0 198142 1431 142450 123138 0 295003 5065 228938 4000 170331 212732 1.460 95877 -86070 2851072 0.1404 925.99 20.3 0.0716 0.1125 0.00 1.600 0.94 $1.496 1719809 0 4120150 $0000 2035000 7924959 0 0 198142 1590 142450 123158 0 295003 5625 228938 4900 174526 212732 1.496 95933 -86070 2892011 0.1390 926.57 1719809 0 4120150 $5000 2035000 7929959 0 0 198142 1749 142450 123158 0 295003 6138 ~ 228938 4000 182077 212732 1.561 98993 ~86070 2965076 0.1366 927.16 1719809 0 4120150 60000 2035000 7934959 0 0 198142 1908 142450 123138 0 295003 6750 228938 4000 192985 212732 1.654 96059 ~86070 3070266 0.1335 927.74 1719809 0 4120150 65000 4885000 10789959 9 0 198142 2067 233030 123158 0 295003 7313 549565 4000 207249 21273% 1.777 130621 86070 3653358 0.1479 796.13 1719809 0 4120150 70000 4885000 10794959 0 0 198142 2226 235080 123138 0 295003 7375 549563 4000 217318 212732 1.863 130682 ~86070 3750496 0.1448 736.50 1719809 0 4120150 75000 4885000 10799959 0 0 198142 2385 233080 125138 0 295003 8458 549563 4000 2235192 212732 1.913 130742 ~$6070 3807498 1719809 0 4120150 80000 4885000 10804959 0 0 198142 2544" 233080 123138 0 295003 97000 549563 4000 227387 212732 1.949 130803 ~86070 3348437 0.1420 797.24 1719809 0 4120150 85000 4885000 10809959 0 0 198142 2703 235080 123138 0 295003" 9503 549563 4000 234939 212732 2.014 130863 -86070 3921501 0.1401 797.61 TABLE O-II-B 1997 1998 1999 28.8 30.0 31.5 0.0716 0.0716 0.0716 0.1125 0.1125 0.1125 ~~ 0.007 0.00 0.00 2.215 2.508 2.423 0.94 0.94 0.94 $2.071 $2.158 $2.266 1719809 = 1719809 1719809 0 0 0 4120150 4120150 = 4120150 90000 95000 100000 4885000 © 4885000 =: 4885000 10814959 10819959 9 0 0 0 0 0 198142 198142 198142 2862 3021 3180 235080 253080 233080 123138 123138 123138 0 0 0 295003 295003 295003 10125 10688 11250 549563 549563 549563 4000 4000 4000 241651 251720 264306 212732 212732 212732 2.071 2.158 2.266 130924 130984 131045 86070 86070 86070 3986534 4083693 «4204945 0.1384 0.1361 0.1335 797.98 798.34 798.71 2.523 0.94 $2.3559 1719809 0 4120150 105000 4885000 10824959 10829959 0 0 198142 3339 233080 123138 6 295003 11813 5495635 4000 275214 212732 2.359 131105 ~86070 4310135 0.1314 799.08 TABLE O-II-C 1925 POWER COST STUDY OPTION TI---SELL ErvAK PLANT, 1,7 & 8, MOVE 82, BUY NEW LOOOKW DESCRIPTION TOTAL ANNUAL KWH GENERATION MM KWH 13.0 18.5 19.3 20.3 20.8 21.7 23.0 24.7 25.9 26.6 27.1 28.0 28.3 30.0 31.5 32.8 INTEREST RATE 2 (EXISTING PLANT) 0.0536 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 8.0716 0.0716 0.0716 0.0716 0.0716 INTEREST RATE % (NEW PLANT? 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 INFLATION RATE 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 ANNUAL FUEL CONSUMPTION MM GAL 1.385 1.423 1.485 1.562 1.600 1.669 1.769 1.900 1.992 2.046 2.085 2.154 2.215 2.308 2.423 2.523 FUEL COST /GAL $/GAL 0.96 0.99 1.02 1.05 1.08 1.12 1.15 1.18 1.22 1.26 1.29 1.33 1.37 1.41 1.46 1.50 TOTAL ANNUAL FUEL COST MILLION $ $1.333 $1.412 $1.517 $1.643 $1.734 $1.864 $2.034 $2.250 $2.431 $2.571 $2.698 $2.871 $3.042 $5.264 $3.530 $3. 786 INVESTMENTS EYAK PLANT $ 1719809 1719809 1719809 —-1719809- 1719809 1719809 ~- 1719809 —1719809-_ -1719809-—1719809- 1719809 — 1719809 —-1719809 - 1719809 -1719809 —-1719809 EYAK CHANGES $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ORCA PLANT $ 4120150 4120150 4120150 4120150 4120150 4120150 = 4120150 4120150 4120150 = 4120150» 4120150 4120150 4120150» 4120150 = 4120150 4120150 ORCA CHANGES $ 25000 55000 41200 47586 54164 60938 67917 75104 82507 90152 97986 106076 114408 122991 131830 140935 NEW UNIT $ 2035000 = 2035000 = 2055000 = 2035000 = 2035000 ©=— 2035000 © 5645295 = 5645295 5645295 = 5645295 5645295 5645295 5645295 5645295 5645295 $ TOTAL INVESTMENT 5864959 7909959 7916159 7922545 7929125. «7935897 7942876 =: 1156035 11567761 11575386 11883240 11591330 11599662 11608244 11617084 11626189 Sttieicea eee oi ee ee ea ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT $ 64775 0 0 0 8 0 8 0 0 0 0 0 0 e — 0 0 EYAK CHANGES $ 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 ORCA PLANT $ 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 ORCA CHANGES- $ 795 LLL3 1310 1513 1722 1938 2160 2388 2624 2866 ——— 36 ~3373 36358 391k 4192 4482 NEW UNIT $ 9 142450 142450 142450 142450 142450 142450 257257 257257 257257 257257 257257 257257 257257 257257 257257 INTEREST EYAK PLANT $ 92182 123138 123138 123138 123138 123138 123138 123138 123138 123138 123138 123138 123138 123138 123138 125138 EYAK CHANGES $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 0 ORCA PLANT $ 220840 295003 295003 295003 295003 295003 295003 295005 295003 295003 295003 295003 295003 235003 295003 295003 ORCA CHANGES $ 2813 53938 4635 5353 6095 6856 7641 8449 9282 10140 11025 11934 12871 13836 14831 15855 NEW UNIT $ 0 228938 228938 2289358 228938 228958 228938 655096 635096 535096 635096 635096 635096 635096 635096 635096 RENT $ 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 ONE TIME COSTS 376890 ANNUAL VARIABLE COSTS MAINTENANCE $ 155563 164681 176956 191709 202323 217410 237548 262537 283551 299951 344757 334966 554873 580749 411780 441637 OPERATIONS $ 167614 172642 177822 233156 240151 247356 254776 262419 270292 278401 286753 295355 304216 515343 322743 352425 FUEL MILLION $ 1.333 1.412 1.517 1.643 1.734 1.864 2.034 2.250 2.431 2.571 2.698 2.871 5.042 3.264 5.530 5.786 INSURANCE $ 71000 95756 95831 95909 95988 96070 96155 139947 140037 140129 140224 140322 140423 140527 140634 140744 SAVINGS ON NOT OPERATING EYAK PLANT 86070 ~88652 -913512 -94051 96873 -9977 102772, -105855 109051 = - 112302, 115671 = - 119141 = 122715 -126397 130189 TOTAL ANNUAL COST $ 2511177 5152250 2876404 = 3071285 5178172 3528021 «= 3524466 §=— 4336025 = 4543108 = 706211 = 4854239 = 5054179 = 5251415 5505990 = SBIOLIS 6103217 TOTAL COST OF ELECTRIC ENERGY $/KWH 0.1284 0.1693 0.1490 0.1513 0.1528 0.1534 0.1532 0.1755 0.1754 0.1769 0.1791 0.1805 0.1823 0.1855 0.1844 0.1861 INVESTMENT PER KW DEMAND $ 542.90 924.82 925.54 926.29 927.06 927.85 928.67 852.97 853.52 854.08 854.66 855.26 855.87 856.51 857.16 857.83 26 1985 POWER COST STUDY TABLE O-II-D 1985 Expenses (1985 Dollars) Capital Costs: Additional fuel storage Orca Power Plant Relocate Unit 2 Purchase 1000KW Peaker Sell Units 1, 7 & 8 Sell Eyak Plant Build Line Shed Orca Power Plant Non-Recurring Cost: Loss on installation Unit 2 Loss on sale of Unit 1 Loss on installation Unit 1 Gain on sale of Eyak Power Plant Total Non-Recurring Costs Continuing Annual Costs: Fuel tanks at Orca Power Plant Relocation Unit 2 Reduction of old installation #2 Reduction due to sale Unit 1 Annual cost 1000KW peaker Annual cost line shed Reduction due to sale Eyak Power Plant Total Additional Annual Cost 1992 Expenses (1985 Dollars) Capital Costs: Purchase 5,000 KW Unit Continuing Annual Costs Associated with 5,000 KW Unit $ 100,000. 765,000. 1,400,000. (75,000.) (200,000. ) ___ 45,000. $2,035,000. $ 146,132. 142,800. 95,200. (7.262...) $ “F767 330.. $ 12,300. 110,389. (8,768.) (18:075.:) 255,500. 16,300. (3:01.,.236.) $ 266,410. $2,850,000. $ . 441,255. 1985 POWER COST STUDY OPTION III This option would sell the Eyak Power Plant building and property except for the City Shop and substation. The existing tanks, line shed and the open faced warehouse would be removed or left in place depending on commercial considerations at the time of sale. Units #7 and #8 would be removed and scrapped. Units #1 and #2 would be relocated to the Orca Power Plant. A 40 foot addition would be made on this building to accommodate these two units. An area on the existing Orca Power Plant lot would be cleared off and used to provide secure storage for wire and transformers. A new piece of property near the Orca Power Plant would be leased from the City of Cordova and a new 30 ft. by 30 ft. line shed building would be erected. This building could be placed on the existing Orca Plant property with no significant change in cost. Additional fuel storage tanks would be installed at the Orca Plant to increase the fuel storage to the desired level. A new 5,000 KW, medium speed unit would be purchased in 1992. The unit would be installed in a 20 foot addition to the Orca Power Plant. This would use all of the land available at the Orca site for generation except for the work area in the existing Orca Plant which could hold one additional unit. No additional generation would be required during the study period. The actual date for installation of the 5,000 KW unit could be adjusted as necessary to meet load growth. Adequate reserve capacity is maintained throughout the study period. Chart O-III-1 shows the peak system load and the firm capacity under this option. Adequate reserve generation will be available to meet system peak loads. Chart O-III-2 shows the winter peak loads and the reliable capacity under this option. Adequate reserve generation capacity will be available to meet system winter peak loads. Table O-III-A shows the generation statistics for this option by year. Table O-III-B shows the cost of this option in constant (1985) dollars. Table O-III-C shows the cost of this option in actual dollars with a three percent inflation rate. Tables O-III-B and O-III-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. 28 1985 POWER COST STUDY Table O-III-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. : 29 0€ MAND (MW) rs DE PEAK SYSTEM DEMAND 1985 POWER COST STUDY 12.0 +—— + —- - - — -— Firm Capacity ieOr 1h@ZQ) 4 22.0) & 13@ | 0.0 i alee eee lc er rma ee le ile Mt res client eS SZ 84 86 88 Oe) o2 94 96 98 2000 YEAR CHARD* O-TTI=1 LE DEMAND (MW) 12.0 ————_—___- ita | 10.0 -4 9.0 + 8.0 4 WINTER PEAK DEMAND 19639. POWER COST SIUDY Reliable Capacity 1.0 4 OO a re eT 1 | aa ea iH SZ B84 86 88 90 92 94 96 98 2000 YEAR CHART O-III-2 1985 POWER COST STUD: TOTAL ANNUAL KWH GENERATION "INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE 2 (NEW PLANT) INFLATION RATE SENERATION CAPACITY EYAK PLANT CAPACITY ORCA PLANT NEW UNIT TOTAL CAPACITY SYSTEM PEAK LOAD SYSTEM WINTER PEAK LOAD SYSTEM FIRM CAPACITY SYSTEM RELIABLE CAPACITY PEAK-LOAD-EXCESS CAPACITY WINTER LOAD EXCESS CAPACITY th kW kW kW ki kW kW kW kW kW 32 OPTION III- 10803 5000 3350 8153 5653 3153—- 2303 SELL EYAK PLANT, #7 & #3, MOVE $1 & #2 TO ORCA 9453 5100 3417 6803 43035 105 886 9453 5400 3618 6803 4303 1403 685 9453 5600 3752 6803 4303 1203 SSL 9453 5800 3836 6803 4305 1003 417 9453 6000 4020 6303 4303 — 303— 283 23.9 0.8716 0.1125 0.00 0 9453 3000 14453 7000 4690 9453 6803 a 2113 26.6 27.1 0.0716 -— 9.0716 0.1125 0.1125 0.00 0.00 0 9 9453 9453 5000 5000 14453 14453 7200 7400 4824 4958 9453 9453 6303 6303 —2253 ~~ 2053— 1979 1845 TABLE O-III-A 9453 5000 14453 7900 5293 9453 6803 =i 1510 30.0 31.5 0.0716 0.0716- 9.1125 0.1125 0.00 0.00 0 0 9453 9453 5000 35000 14453 144535 8100 8300 5427 5561 9453 ~9453 6803 6803 1333153 1376 1242 32.8 -0.0716- 0.1125 0.00 0 9453 - 5000 14453 8600 5762 9453 6803 853 1041 TABLE O-III-B 1989: FOWER & TOTAL ANNUAL KWH GENERATION MM KWH 18.0 18.5 19.3 20.3 20.8 21.7 23.0 24.7 25.9 26.6 27.1 28.0 28.8 30.0 31.5 32.8 INTEREST RATE 2 (EXISTING: PLANT) 0.0538 0.0716 0.0716 0.0716 0.0716 0.0716 0.6716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 INTEREST RATE 2 (NEW PLANT) 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 INFLATION RATE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.00 0.00 ANNUAL FUEL CONSUMPTION MH GAL 1.385 1.423 1.485 1.562 1.600 1.669 1.769 1.900 1.992 2.046 2.085 2.154 2.215 2.308 2.423 2.523 FUEL COST /GAL $/GAL 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 TOTAL ANNUAL FUEL COST MILLION $ $1.295 $1.33] $1. 388 $1.460 $1.496 $1.561 $1.654 $1.777 $1.863 $1,915 $1.949 $2.014 $2.071 $2.158 $2.266 $2.359 INVESTMENTS EYAK PLANT $ 1719809 1719809 1719809. 1719809 1719809. 1719809 =—-1719809 1719809 1719809 1719809 1719809 1719809 1719809 =—-1719809 1719809 __ 1719809 EYAK CHANGES $ 0 0 0 9 0 0 6 0 0 0 0 0 0 0 0 0 ORCA PLANT $ 4120150 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 = 4120150 ORCA CHANGES $ 25000 =-1525000 = 1530000 §= 1535000 = 1540000 = 1545000 §= 1550000 §©=:1555000 += 1560000 §= 1565000 §= 1570000 §=—:1575000 §= 1580000 §=— 1585000 §= 1590000 = 1595000 NEW UNIT $ 2850000 © 2850000 = 2850000» 2850000 §= 2850000 §= 2850000 §=— 2850000 ©=— 2850000 ©§=— 2850000 TOTAL INVESTMENT $ 5864959 = 7364959 = 7369959 = 7374959) = 7379959 = 7384959 = 7389959 10244959 10249959 10254959 10257959 ~—:10264959 §=—:10269959_—:10274959 10279959 10284959 “ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT $ 64775 0 0 0 0 0 a 0 0 0 0 0 0 0 0 - a EYAK CHANGES $ 0 9 0 8 0 0 0 0 0 0 0 0 6 0 0 a ORCA PLANT $ 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 198142 ORCA CHANGES $ 795 48495 43654 48813 48972 49131 49290 49449 49608 49767 49926 50085 50244 50405 50562 30721 NEW UNIT $ 0 0 0 0 9 0 0 90630 90630 90630 90630 90630 90630 90630 90630 90630 INTEREST EYAK PLANT $ 92526 123138 123138 123138 123138 1231358 1231358 123138 123138 1231358 123158 123138 123138 123138 123138 123138 EYAK CHANGES $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ORCA PLANT $ 221664 295003 295003 295003 295003 295003 295003 295003 295003 295003 295003 295003 295003 295003 295003 295003 ORCA CHANGES $ 2813 171563 172125 _ 172688 173250 173815 174375 174938 175500. __176063 176625 1771338 177750 178313 178875. 179438. — NEW UNIT $ 0 0 0 0 0 9 0 5320625 320625 520625, 320625 320625 320625 520625 320625 320625 RENT $ 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 =. 4000 4000 4000 4000 4000 4000 ONE TINE COSTS 234090 ANNUAL VARIABLE COSTS MAINTENANCE $ 151032 155227 161940 170331 174526 182077 192985 207249 217318 223192 227387 2349359 241651 251720 264306 275214 OPERATIONS $ 162732 162732 162732 212732 212732 212732 212732 212732 212752 212732 212732 212732 212732 212732 212732212732 FUEL MILLION $ 1.295 1.331 1.388 1.460 1.496 1.561 1.654 1.777 1.863 L913 1.949 2.014 2.071 2.158 2.266 2.559 INSURANCE $ 71000 89159 89219 89280 89340 89401 39461 124023 124084 124144 124205 124266 124326 124387 124447 124508 SAVINGS ON NOT OPERATING EYAK PLANT 86070 86070 86070 86070 86070 -86070 -86070 ~86070 ~86070 86070 86070 -86070 -86070 ~86070 ~86070 TOTAL ANNUAL COST $ 2263094 © 2726056 «= 2556999 = - 2683094 «= 2729033 «= 2802098 «= 2907288 «= 3490359 ~=— 3587518 = 5484520 © 5685458 = 3758523 §=—- 3825556 «= 3920714 = 4041967 = 4147157 TOTAL COST OF ELECTRIC ENERGY $/KWH 0.1258 0.1474 0.1325 0.1524 0.1312 0.1291 0.1264 0.1415 0.1385 0.1370 0.1360 0.1342 0.1328 0.1307 0.1283 0.1264 INVESTMENT PER KW DEMAND $ 542.90 779.11 779.64 780.17 780.70 781.23 781.76 708.85 709.19 709.54 709.88 710.23 710.58 710.92 711.27 7iL.6l 33 TABLE O-III-c I---SELL EYAK PLANT. #7 & #3, MOVE #1 & #2 TO ORCA 1990 TOTAL ANKUAL KWH GENERATION NM KWH 13.0 18.5 19.3 20.3 20.8 21.7 23.0 24.7 25.9 26.6 27.1 28.0 28.8 30.0 31.5 32.8 INTEREST RATE % (EXISTING PLANT) 0.0538 0.0716 +=—-0.0716 += 0.0716 += 0.0716 += 0.0716 ~=— 0.0716 += 0.0716 += «0.0716 += 0.0716 ~=— 0.0716 ~=— 0.0716 ~=— 0.0716 ~=— 0.0716 = 0.0716 §~——0.0716 INTEREST RATE % (NEW PLANT) Cea MMMO NLS MMMON as MMMONN TOS IMEC NTSSMMMONT 2S IMMONTI 2M ON LaSiMMON L2sMMMONT Ios Montes IMO 5 MMOUI Zo IMO NLT 2SHNNONT LS) MONT 125 INFLATION RATE 0.03 0.03 0.03 0.03 0.03 0.03 0.05 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 ANNUAL FUEL CONSUMPTION HH GAL WASOSHMMN 42S MME ACSI SOMMMIL COIL ScoM MMT zoo MMM taco MMe: <9921 M2 s Osc m2 {Ossi NE SAMMI M2 +215 MMM 2:308) IM r2 423i iMonses FUEL COST /GAL $/6AL 0.96 0.99 1.02 1.05 1.08 Lie 1.15 1.18 1.22 1.26 1.29 3 137 1.41 1.46 1.50 TOTAL ANNUAL FUEL COST HELTONISHMMMMSLeSSSHMMRSLLATOMMMSEASE a MMet eas MMS TEgSA MN SLU ood IM 900544 IM 421250 Il ¢2 445 )MMMS2 1571 MMMS2¢298 INNS? <7 LIN MMS3e042 II GS 26a lll kes e530) Sere INVESTMENTS EYAK PLANT $ 1719809 1719809 «1719809 «1719809 «1719809 «1719809 «1719809 1719809 —«-1719809 1719809 1719809 1719809 ~=—«1719809»=—«1719809-—«1719809_-:1719809__ EYAK CHANGES $ 0 0 6 0 0 0 0 0 0 0 0 0 0 0 0 0 ORCA PLANT $ 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 4120150 ORCA CHANGES $ 25000 1570750 1623023 1676863 1732319 «1789439 «1848272 1908870 1971286 2035575 2101792 «216999 + 2adONAG ©—«2512603 © -2TBISL «2463895 NEW UNIT $ 3718604 3718604 3718604 3718604 © 3718604 3718604 3718604 3718604 3718604 TOTAL INVESTMENT $ 5864959 7410709 7462982 «7516822 —-7572278~=—« 7629398 ~—«7688231 «11467433 11529849 11594137 11660354 11728558 11798808 11871165 11945694 12022457 ANNUAL FIXED COSTS : DEPRECIATION EYAK PLANT $ 64775 0 0 0 0 0 0 0 0 CeO EG 0 0 0 0 EYAK CHANGES $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ORCA PLANT $ 198142 198142 198142198142 «198142 ~—198142 «198142 «198142 ~=s198142 «=—«198142 = 198142 = s198142~=—s«198142~=—s198142 ~=—«198142 = «198142 ORCA CHANGES $ 7951) (49950 | 1051812): d59894) 1 (aM 088 * || |1456904) | |!I||158775. ||| 1607021) || 162687, | | ear Steril: 6683711) 1/6908) 7424014 (73544) rzS94L | «78982 NEW UNIT $ 0 0 0 0 0 0 CMM Te25OuM IN LOos2 Hi nt 16250) MMII Leesa I MMT Te2SoN Mit T S252 1a252)|i itaeese)| |i twas INTEREST | EYAK PLANT $ $2526 lll £23190) ll) 128198) 4125138) I Mest 25838 M1 123188 1) MNe123158) 4123158) | 2315} 12318 2 284338 |) 23 8 38) (23138) 23238) | 123138 | NPS EYAK CHANGES $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ORCA PLANT $ 221664 295003 «295003 ©» 295003 »«-295003 © 295003 ~=«-295003 «= 295003 «© 295003 + «295003 © 295003 «295003» «295003 295003 «298003 © 295003 ORCA CHANGES $ 2813 176709 ~=—«:182590 «188647 «194886 ~=— «201312 —«-207931:~«= «24748 =—221770 += 229002 ~—=«s2364S2 = 244125 «= 252028 += «260168 ~—— 268552277188 NEW UNIT $ 0 0 0 0 0 0 0 «18343 «418343418343 «18343 «418343 «= 418343 «= 418343 «18343 «418343 RENT $ 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 ONE TIME COSTS 234090 ANNUAL VARIABLE COSTS MAINTENANCE $ 155563 164681176956 = «191709 202323 «217410 © 257348 «=—262537 «283551299951 «314757 334966 ©=—354873 «= 380749 = 411780 441637 OPERATIONS $ 167614 —172642-~—«177822 =—«-233156 =» «240151 «247356 «= 254776 © 262419 ~=—=«-270292-««« 78401 —-—«286753:~«=C«C«29S3SS~=—=«SOKDLG «=—«SH3SAS ~—«S22743- 332425 FUEL HILLIGH $ 18333 ||| 2412) |) If PeS19 ||| sease) st 78a)| ||| B64:)|||l)(1240344)||| | Kolk9so I) |!|(-aea3t")||) /anggayy)||||/0%488) ||| || 2867s geOkeenl meghoeete = -eueaaO Ramee eezeG INSURANCE $ 71000 © 89713. «9034S «90997 «91668 «= s«92360 «=: 98072 «138822 «= «139578 = :140356 ~—sANISS = 141984 = 142834 = 143710 «= 144612145541 SAVINGS ON NOT OPERATING EYAK PLANT -86070 -88652. «91312-94051 «96873. «99779 102772 105855 -109031 —-112302 115671 119141122715 © -126397-—-130189 TOTAL ANNUAL COST $ 2312545 2833607 2727787 «2930091 +~—«3044622 ~—«5202346 ©—«340K901 «4243752 «4459442 ~—«4631407 4788563 «4997905 5208825 5469376 5783774 6087459 TOTAL COST OF ELECTRIC ENERGY $/KWH O.1285)|/ 0.1832 | 0.1413 0.1843 | 0.1464) | 0.1476 || 0.1481) | | OL1z18) || 0.1722 /a.d7A1. Qsagé7 «01785 0.1907, ))) 011825 0-186 |) omnese INVESTMENT PER KW DEMAND $ 5451'90)))\)|/'783¢95 ||) 769248) |) 795518) 160104 |)|11/180709 ||) 613431\)|||\) 793443 Ill 797-25 |||) 80220)))|)|/ 806478) |||) 811-50) |))|/'816!36)| |) 21486.) @ee521 1) CaleRs 34 1985 POWER COST STUDY TABLE O-III-D 1985 Expenses (1985 Dollars Capital Costs: Additional fuel storage At Orca Power Plant $ 100,000. Relocate Unit #2 765,000. Relocate Unit #1 780,000. Sell Eyak Power Plant lot and building (200,000. ) Build new line shed 45,000. Total Capital Costs $1,490,000. Non-Recurring Costs: Loss on installation Unit #1 $ 95,260. Loss on installation Unit #2 146,132. Gain on sale Eyak Power Plant (7, 242.) Total Non-Recurring Costs $ 234,090. Continuing Annual Costs: Fuel Tanks at Orca Power Plant $ 12,300. Relocate Unit #1 112,336. Relocate Unit #2 110,389. Reduction Unit #1 installation (7, 238.) Reduction Unit #2 installation (8,768.) Annual cost for line shed 16,300. Reduction due to sale Eyak Power Plant 101,236. Total Additional Annual Cost $ 4a; - 1992 Expenses (1985 Dollars) Capital Costs $2,850,000. Continuing Annual Costs $ 411,255. 35) 1985 POWER COST STUDY OPTION IV (This option is similar to Option II except that Eyak Power Plant would be retained.) This option would sell Units #1, #7 and #8. Unit #2 would be relocated to the Orca Power Plant. A new 1,000 KW peaker (900 rpm EMD or equivalent) would be purchased and installed at the Orca Power Plant. A 40 foot addition would be made to the existing building to house the relocated Unit #2 and the new 1,000 KW peaker. The tanks and other generation related equipment would be relocated to the Orca Plant. The existing Eyak building would be refurbished to serve as a line building and provide inside, secure storage for line materials. The existing line shed and open faced warehouse would be removed and scrapped. Some wire and transformers would be stored inside the Eyak building, but no fence is anticipated. Additional fuel storage would be provided at the Orca Plant to bring the on-hand supply of fuel up to the desired level. A new 5,000 KW, medium speed unit would be purchased in 1992. This unit would be installed in a 20 foot addition to the Orca Power Plant. This would use all of the land available at the Orca site for generation except for the work area in the existing Orca Plant which could hold on additional unit. No other additional generation is anticipated during the period of this study. Chart O-IV-1 shows the peak system load and firm capacity under this option. It is possible that the 1992 unit (5,000 KW) may have to be installed as early as 1990 or 1991 to meet peak loads. Chart O-IV-2 shows the winter peak loads and the reliable capacity to meet these loads. This option does not provide the necessary capacity as early as 1986 and either the size of the 1,000 KW peaker must be increased or a second new unit must be purchased immediately. Table O-IV-A shows the generation statistics for this option by year. Table O-IV-B shows the cost of this option in constant (1985) dollars. Table O-IV-C shows the cost of this option in actual dollars with a three percent inflation rate. Tables O-IV-B and O-IV-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. 36 1985 POWER COST STUDY Table O-IV-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. SY se DEMAND (MW) Pian Strole DEMAND 1iS8S POWER -COST STUDY Firm Capacity 82 84 86 88 98 OZ 94 96 YEAR CHART O-IV-1 98 2000 6€ DEMAND (MW) u WINTER PEAK DEMAND 1985 POWER COST STUDY 12.0 ——_———— + 11.0 - Reliable Capacity 10.0 - 9.0 - 8.0 4 7.0 7 6.0 + 5.0 4 _—_—- YEAR CHART O-IV-2 TABLE O-IV-a 1985 POWER COST STUDY OPTION IV---KEEP EYAK PLANT, SELL 1,7 & 8, HOVE #2, BUY NEW 1000KW DESCRIPTION UNIT 1985 1986 1987 1988 TOTAL ANNUAL KWH GENERATION MM KWH 18.0 18.5 19.3 20.3 20.8 21.7 23.0 24.7 25.9 26.6 27.1 6.0 28.8 30.0 31.5 32.8 INTEREST RATE 2 (EXISTING PLANT) 0.0538 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 INTEREST RATE % (NEW PLANT) 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 INFLATION RATE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.00 0.00 GENERATION CAPACITY EYAK PLANT Ki 5900 0 0 0 0 0 9 8 0 0 0 0 0 0 0 a CAPACITY ORCA PLANT ku 4903 7553. 7553. 7553 7553. 7553 7353 7953... 7553. 2553 - 7553 7933 7553 7553 ~ 7533 7SS3 NEW UNIT AT ORCA KW 1000 1000 1000 1000 1000 1000 6000 6000 6000 6000 6000 6000 6000 6000 6000 TOTAL CAPACITY kW 10803 8953 8553 8555 8553 8553 8553 15553 13553 13553 13553 13553 13553 13553 13553 13553 SYSTEM PEAK LOAD KW 5000 5100 5300 5400 5600 9800 6000 6800 7000 7200 7400 7600 7900 3100 8300 8600 SYSTEM WINTER PEAK LOAD kW 3350 3417 3551 3618 3752 3886 4020 4556 4690 4824 4958 5092 5293 5427 5561 5762 SYSTEM. FIRM CAPACITY ki 8153 5903 5903. _ - $903 SZ... , 5903 5903 - 8553 8553._____. 8553__ 8553 8553 8555 8555 8555 8553 SYSTEM RELIABLE CAPACITY kW 5653 3403 3403 3403 3403 3403 3403 5903 5903 5903 5903 5903 5903 5903 5903 5903 PEAK LOAD EXCESS CAPACITY KW 3153 803 603 3503 303 103 may 1753 1553 1353 11535 733 653 455 253 “47 WINTER LOAD EXCESS CAPACITY Ki 2303 “14 ~148 -2ls 349 ~435 -61? 1347 1213 1079 945 811 610 476 342 141 40 1985 POWER COST STUDY OPTION IV---KEEP EYAK PLANT, SELL 1,7 & 8, MOVE #2, BUY NEW 1000KW TABLE O-IV-B TOTAL ANNUAL KWH GENERATION INTEREST RATE % (EXISTING PLANT) INTEREST RATE 2 (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT TOTAL INVESTMENT ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT INTEREST EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIME COSTS ANNUAL VARIABLE COSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/KWH INVESTMENT PER KW DEMAND UNIT 1985 MM KWH 18.0 0.0533 0.1125 6.00 NM GAL 1.385 $/GAL 0.94 MILLION $ $1.295 $ 1719809 $ 0 $ 4120150 $ 25000 $ $ 5864959 $ 64775 $ 0 $ 198142 $ 79S $ 0 $ 92526 $ 0 $ 221664 $ 2313 $ 0 $ 4000 $ 151032 $ 162732 MILLION $ 1.295 $ 71000 $ 2264151 0.1258 $ 542.90 41 1719809 0 4120150 55000 2035000 7909959 37932 0 198142 LLLS 142450 123138 0 295003 5938 2289358 4000 584182 155227 162732 1.331 98756 5163185 0.1710 924 82 1719809 5000 4120150 40000 2035000 7919959 37932 159 198142 1272 142450 123138 563 295003 4500 228938 4000 161940 162732 1.3388 95877 2844818 0.1474 925.99 20.3 0.0716 0.1125 0.00 1.562 0.94 $1460 __ 1719809 10000 4120150 45000 2035000 7929959 37932 318 198142 1431 142456 123138 1125 295003 5063 228938 4000 170331 212732 1.460 ISITE 2976696 0.1466 927.16 20.8 0.0716 0.1125 0.00 1.600 0.94 $1.496 1719809 15000 4120150 $0000 2035000 7939959 37932 477 198142 1596 142450 123138 1688 295003 5625 228938 4000 174326 212732 1.496 96120 3018416 0.1451 928.32 1719809 20000 4120150 _, $5000 2035000 7949959 37932 636 198142 1789 142450 123138 2250 295003 6138 228938 4000 182077 212732 1.561 96241 3092263 0.1425 929.49 1719809 250060 4120150 60000 2035000 7999959 37932 795 198142 1908 142450 123138 2813 295003 6750 228938 4000 192985 212732 1.654 36362 3198255 6.1391 930.66 1719809 30000 4120150 65000 4885000 10819959 57932 954 198142 2067 235080 123138 3375 295003 73135 549563 4000 207249 212732 a7 Att 130984 3782089 1719809 35000 4120150 70000 4885000 10829959 37952 LS 198142 2226 233080 123158 5938 295003 7875 549563 4000 217318 212732 1.865 131105 3880029 0.1498 799.08 1719809 40000 4120150 _ 75000 4885000 10839959 57932 1272 198142 2385 253080 123138 4500 295003 8433 549563 4000 223192 212732 1.913 131226 35937813 0.1480 799.82 1719809 45000 4120150 30000 4885000 10849959 _ 37932 1431 198142 2544 235080 123138 5063 295003 9000 549563 4000 227387 212732 1.949 131547 3979534 0.1468 800.56 1719809 50000 4120150 $5000 4885000 10859959 37952 1590 198142 2703 233080 123138 5625 295003 9563 549565 4000 234939 212732 2.014 131468 4053380 0.1448 $01.30 1719809 $5000 4120150 90000 4885000 10869959 37932 1749 198142 2362 233080 123138 6183 295005 10125 549565 4000 241651 212732 2.071 131590 4119195 0.1436 802.05 1719809 60000 4120150 95000 4385000 10879959 37932 1908 198142 3021 233080 123138 6750 295003 10688 549563 4000 251720 212732 2.158 131711 4217136 0.1406 802.77 1719809 65000 4120150 100000 4885000 10839959 37932 2067 198142 3180 233080 1231358 7313 295005 11250 549563 4000 264306 212732 2.266 131832 4339171 0.1378 803.51 1719809 70000 4120150 105000 _ 4885000 10899959 37932 2226 198142 53339 233080 123138 7875 295005 11813 549503 4000 275214 212732 2.359 131953 4445143 0.13555 804.25 1985 POWER COST STUDY TOTAL ANNUAL KWH GENERATION INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE % (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES _ NEW UNIT TOTAL INVESTMENT ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT INTEREST EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIME COSTS ANNUAL VARIABLE COSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/kWH INVESTMENT PER KW DEMAND OPTION I¥---KEEP EYAK PLANT, SELL 1,7 & 8, MOVE #2, BUY NEW 1000KW MM KWH 13.9 0.0538 0.1125 0.03 MM GAL 1.385 $/GAL 0.96 MILLION $ $1.533 vr evwve wevwve ooeeonwwvwe $ $ 1719809 0 4120150 25000 5868959 64775 0 198142 795 0 92526 0 221664 2813 0 4000 155563 167614 MILLION $ 1.333 $ $ 71000 2312402 0.1285 542.50 42 1719809 150 4120150 535000 2035000 7910109 37932 5 198142 113 142450 123158 7 295003 3938 228938 4000 384182 164681 72642 1.412 98758 5263604 0.1764 924.83 1719809 59305 4120150 41200 2035000 7921464 37932 169 198142 1310 142450 123138 597 295003 4635 228938 4000 176956 177822 1.517 95896 3003875 0.1556 926.16 1719809 10464 4120150 47536 2035000 7933009 37932 333 198142 1513 142450 123138 1177 295003 5353 228938 4000 191709 233156 1.643 96035 3202222 0.1577 927.51 1719809 15778 4120150 54164 2035000 7944900 37932 502 198142 1722 142450 123138 1775 295003 6095 228938 4000 2023523 240151 1.734 96179 3512680 0.1595 928.90 1719809 21251 4120150 60938 2035000 7957148 37932 676 198142 1938 142450 123138 2391 295003 6856 228938 4000 217410 247356 1.864 96328 3466207 0.1597 930.33 1719809 26888 4120150 67917 2035000 7969764 37932 358 198142 2160 142450 123138 3025 295003 7641 228938 4000 237348 254776 2.034 96480 3666439 0.1594 931.81 1719809 52695 4120150 75104 5645295 115935053 37932 1040 198142 2388 257257 123138 3678 295003 8449 635046 4000 262557 262419 2.250 140543 4481693 ~ 0.1815 855.39 1719809 58676 4120156 82507 5645295 11606437 57932 1230 198142 2624 257257 123138 4351 295003 9282 655096 4000 mo m2 mo wu oF Qn Apne SW a Aeme 4693002 0.1812 859.37 1719809 44836 4120150 90132 3645295 11620222 37932 1426 198142 2866 257257 123138 5044 295003 10140 635096 4000 299951 278401 2.571 140672 4860244 0.1827 857.39 1719809 51181 4120150 97986 5645295 11634421 37932 1628 198142 3116 257257 123138 5758 295003 11023 635096 4000 314757 236753 2.698 140844 5012535 0.1850 858.44 1719809 57717 4120150 106076 5645295 11649046 537932 1835 198142 3375 257257 123138 6493 295003 11934 635096 4000 334966 295355 2.871 141021 5216866 0.1863 859.52 1719809 64448 4120150 114408 5645295 11664110 37932 2049 198142 3638 257257 123138 7250 295003 12871 635096 4000 354873 304216 3.042 141203 5418625 0.1881 860.65 TABLE O-IV-c 1719809 71382 4120150 122991 5645295 11679626 37932 2270 198142 Jl 257257 123158 8030 295003 15856 635096 4000 380749 513543 3.264 14L391 5677859 0.1893 861.77 1719809 78523 4120150 131830” 5645295 11695607 37932 2497 198142 4192 257257 123133 8834 295003 14831 6355096 4000 411780 522743 3.5350 141585 5986782 0.1901 862.95 1719809 95879 4120150 140935 5645295 11712068 37932 2731 198142 4482 257257 123138 9661 295003 15855 635096 4000 441637 332425 5.786 141784 6284827 0.1916 864.17 1985 POWER COST STUDY TABLE O-IV-D 1985 Expenses (1985 Dollars) Capital Costs: Additional fuel storage Orca Power Plant 100,000. Relocate Unit 2 765,000. Purchase new 1000KW peaker 1,400,000. Sell Units 1, 7 & 8 (75,000. ) Total Capital Costs $2,190,000. Non-Recurring Costs: Loss on installation Unit 2 $ 146,132. Loss on sale Unit 1 142,800. Loss on installation Unit 1 95,200. Total Non-Recurring Costs $ 384,132. Continuing Annual Costs: Savings due to not operating Eyak P.P. $ (38,500.) Fuel tanks at Orca Power Plant 12,380. Relocation Unit 2 110,389. Reduction depr. old #2 inst. (3, 768.) Reduction depr. due to sale #1 (18,075.) Annual cost 1000KW peaker 255,500. Total Additional Annual Cost $ 269,252 1992 Expenses (1985 Dollars) Capital Costs: Purchase 5,000 KW Unit $2,850.000. Continuing Annual Costs Associated with 5,000 KW Unit $ 441,255. 43 1985 POWER COST STUDY OPTION V (This is similar to Option III except that the Eyak Power Plant building would be retained.) This option would scrap Units #7 and #8. Units #1 and #2 would be relocated to the Orca Power Plant. A new 40 foot addition would be made on the Orca Power Plant building to accommodate these two units. The tanks and other generation related equipment would be relocated to the Orca Plant. The existing Eyak Building would be refurbished to serve as a line building and provide secure, inside storage for line materials. The existing line shed and open faced warehouse would be removed and scrapped. Some wire and transformers would be stored inside the Eyak building, but no fence is anticipated. Additional fuel storage would be provided at the Orca Plant to bring the on-hand supply of fuel up to the desired level. A new 5,000 KW, medium speed unit would be purchased in 1992. This unit would be installed in a 20 foot addition to the Orca Power Plant. This would use all of the land available at the Orca site for generation except for the work area in the existing Orca Plant which could hold one additional unit. No other additional generation is anticipated during the period of this study. Chart O-V-1 shows the peak system load and the firm capacity under this option. Adequate reserve generation will be available to meet system peak loads. Chart O-V-2 shows the winter peak loads and the reliable capacity under this option. Adequate reserve generation capacity will be available to meet system winter peak loads. Table O-V-A shows the generation statistics for this option by year. Table O-V-B shows the cost of this option in constant (1985) dollars. Table O-V-C shows the cost of this option in actual dollars with a three percent inflation rate. Tables O-V-B and O-V-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. Table O-V-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. 44 Sd PEAK SYSTEM DEMAND 1985: POWER COST: STUDY 12.0 a Firm Capacit 1184 . 10.0 +4 9.0 + 8.0 \ Pa 6.0 )EMAND (MW) ‘ 5.0 4 a 4.0 3304 ZiO)'s YEAR CHART O-V-1 9F MAND (MW) e it u 12.0 AT.) 10.6 9.0 8.0 7 © 6.0 5.0 4.0 3.0 ee | WINTER PEAK DEMAN 1985: POWER ‘COST STUDY Reliable Capacity iw One) ll. hee | ele | OU i )8) BZ 94 96 YEAR CHART O-V-2 1 2000 DESCRIPTION TOTAL ANNUAL KWH GENERATION INTEREST RATE % ‘EXISTING PLANT) INTEREST RATE 2 (NEW PLANT) INFLATION RATE GENERATION CAPACITY EYAK PLANT CAPACITY ORCA PLANT NEW UNIT TOTAL CAPACITY SYSTEM PEAK LOAD SYSTEM WINTER PEAK LOAD SYSTEH FIRM CAPACITY SYSTEM RELIABLE CAPACITY PEAK LOAD EXCESS CAPACITY WINTER LOAD EXCESS CAPACITY KW ki KW kW kW KW kW KW KW KW 47 5900 4903 10803 $000 3350 8153 5653 3153 2303 18.5 0.0716 0.1125 0.00 9453 9453 5100 3417 6803 4303 1703 886 19.3 0.0716 0.1125 0.00 0 9453 9453 5300 5551 6803 4303 1503 752 20.3 9.0716 0.1125 0.00 0 I4S3 9453 5400 3618 6803 4303 1403 — 685 20.8 0.0716 0.1125 0.00 9453 9453 5608 3752 6805 4305 1203 55k 21.7 0.0716 0.1125 . 0.00 8 9453 9453 5800 3836 6803 4303 1003 417 0.1125 0.00 9453 9453 4020 6803 4303 805 283 0.1125 0.00 9453 5000 14453 7200 4824 9453 6803 2253 1979 0.1125 0.00 9453 5000 14453 7400- 4958 9453 6303 2053 1345 14453 7900 5293 9453 6303 1553 1516 14455 5762 9453 6803 853 1041 TOTAL ANNUAL KWH GENERATION INTEREST RATE % (EXISTING PLANT) INTEREST RATE % (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT TOTAL INVESTMENT ANNUAL-FIXEB-COSTS — — —~< - DEPRECIATION EYAK PLANT EYAK- CHANGES ORCA PLANT ORCA CHANGES NEW UNIT INTEREST EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIME CHARGES ANNUAL VARTABLE COSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/KWH INVESTMENT PER KW DEMAND MH GAL $/GAL MILLION $ owvwvrove wwwvore wowwoe $ 3 MILLION $ $ $ 48 - 1719809 5000 4120150 25000 9869959 64775 S63 198142 2813 0 92526 563 221664 2813 0 4000 151032 162732 1.2% 71000 2267236 0.1260 945.36 1719809 10009 4120150 1525000 7374959 48777 1125 198142 171563 8 123138 1125 295003 171563 0 4000 241332 155227 162732 1.331 89204 2752175 6.1488 780.17 1719809 15000 4120150 1530000 7388959 48777 1683 198142 172125 8 123138 1683 295003 172125 9 4000 161940 162732 1.388 89325 2818797 0.1461 781.23 1719809 20000 4120150 1535000 7394959 48777 2250 198142 172688 0 123138 2250 295003 172688 0 4000 170331 212732 1.460 89446 2951482 0.1454 782.29 1719809 25000 4120150 1540900 7404959 48777 2813 198142 173250 8 123138 2315 295003 173250 9 4000 174526 2127352 1.496 89567 2994010 0.1439 783.34 1719809 30000 4120150 1545000 7814959 48777 3375 198142 173813 8 123138 3375 295003 173813 0 4000 182077 212732 1.561 39638 3068663 0.1414 784.40 1719809 35000 4120150 1550000 7424959 48777 3938 198142 174375 0 123138 3938 295005 174375 0 4000 192985 212732 1.654 89308 3175442 0.1381 785.46 1719809 40000 4120150 1555000 2850000 10284959 4877 4500 198142 174538 320625 1231358 4500 295003 174938 320625 4000 207249 212732 1.777 124402 3990088 0.1615 711.61 1719809 45000 4120150 1560000 2850000 10294959 48777 5063 198142 175500 320625 123138 5063 295003 175500 320625 4000 217318 212732 1.863 124523 4088816 0.1579 712.31 0.0716 0.0716 0.1125 0.1125 0.00 0.00 2.046 2.085 0.94 0.94 $1.913 $1.949 1719809 =—-1719809 50000 55000 4120150 4120150 1565000 = 1570000 2850000 ©. 2850000 10304959 = 10514959 48777 48777 5625 - 6188 _ 198142 198142 176065 176625 320625. 320625 1231358 123138 3625 6183 295003 295003 176063 176625 320625 320625 4000 4000 223192 227387 212732 212732 1.913 1.949 124643 124764 4147406 = 4189934 0.1559 0.1546 713.00 713.69 1719809 60000 4120150 1575000 2850000 10324959 48777 6750 198142 177188 320625 123138 6750 295003 177188 320625 4000 234939 212732 2.014 124885 4264587 0.1523 714.38 1719809 65000 4120150 1580000 2850000 10334959 48777 7313 198142 177750 320625 123138 7313 295003 177750 320625 4000 241651 212732 2.071 125006 4331209 1 a) 1504 5.07 1719809 70000 4120150 1585000 2850000 10344959 48777 7875 198142 178313 320625 123138 7875 295003 178313 320625 4000 251720 212732 2.158 125127 4429957 0.1477 713.77 1719809 75000 4120150 1590000 2850000 10354959 48777 8458 198142 178875 320625 123158 8453 295003 178875 320625 4000 2643506 212732 2.266 125248 4552798 0.1445 716.46 1719809 30000 4120150 1595000 2850000 10364959 48777 9000 198142 179438 320625 123138 9000 295003 179438 320625 4000 275214 212732 2.359 125369 4659577 0.1421 717.15 DESCRIPTION TOTAL ANNUAL KWH GENERATION INTEREST RATE 2 (EXISTING PLANT) INTEREST RATE % (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT TOTAL INVESTHENT ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT _EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT INTEREST EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIME CHARGES ANNUAL VARIABLE COSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/KHH INVESTMENT PER KW DEMAND NM GAL $/GAL MILLION $ wwuvwvwwvre evwvwve owwwvwe $ $ MILLION $ $ $ 49 1719809 5000 4120150 25000 5869959 64775 563 198142 2815 0 92526 563 221664 2813 0 4000 155563 167614 1.333 71000 2315488 0.1286 543.56 1719809 10300 4120150 1570750 7421009 48777 1159 198142 176709 0 123138 1159 295003 176709 0 4000 241332 164681 172642 1.412 - 89761 2863489 0.1548 785.04 1719809 15759 4120150 1623023 7478741 48777 1773 198142 182590 0 123138 1773 295003 182590 0 4000 176956 177822 1.517 90459 2999854 0.1554 791.15 1719809 21382 ~ 4120150 1676863 7338204 48777 2405 198142 188647 0 123138 2405 295003 183647 0 4000 191709 253156 1.643 91178 5210494 0.1582 797.44 5.0716 0.1125 0.03 1.600 1.08 $1.734 1719809 — 27173 4120150 1732319 7599451 48777 3057 198142 194886 8 123138 3057 295003 194886 0 4000 202323 240151 1.734 WAY 3333615 0.1603 803.92 1719809 33138 4120150 1789439 7662536 48777 3728 198142 201312 0 123138 3728 295003 201512 0 4000 217410 2473556 1.864 92682 3500182 0.16135 810.59 1719809 39283 4120150 1848272 7727513 48777 4419 198142 207931 0 123138 4419 295003 207931 0 4000 2373548 254776 2.034 93468 3713847 0.1615 817.47 1719809 _ 45611 4120150 1908870 3718604 11513044 48777 S131 198142 214748 418343 123138 S131 295003 214748 418343 4000 262557 262419 2.250 139256 4860134 0.1968 796.59 1719809 _ 52129 4120150 1971286 3718604 11581978 48777 _ 3865 198142 221770 418343 123138 5865 295003 221770 418343 4000 283551 270292 2.431 140090 5085489 0.1964 801.35 1719809 58843 4120150 2035575 3718604 11652980 48777 6620 198142 229002 418345 123138 6620 295003 229002 418343 4000 299951 278401 2.571 140948 5267409 0.1980 806.27 1719809 _ 65759 4120150 2101792 3718604 11726113 48777 _ 7398 198142 236452 418343 123138 7398 295003 236452 418343 4000 314757 286753 2.698 141833 5434819 0.2005 811.33 719809 72881 4120150 2169996 3718604 11801440 48777 8199 198142 244125 418343 123138 8199 295003 244125 418343 4000 534966 295355 2.871 142744 5654722 0.2020 816.54 TABLE O-V-C 1719809 80218 4120150 2240246 3718604 11879026 48777 9024 198142 252028 418343 123138 9024 295003 252028 418543 4000 354873 304216 5.042 143683 5872520 0.2039 821.91 1719809 87774 4120150 2312603 3718604 11958940 48777 9875 198142 260168 418343 123138 9875 295003 260168 418343 4000 380749 313343 3.264 144649 6148275 0.2049 827.44 1719809 95588 4120150 2387131 3718604 12041251 48777 10759 198142 268552 419343 123138 10750 295003 268552 418343 4000 411780 322743 3.530 185645 6474214 0.2055 833.15 1719809 _ 103574 4120150 2463895 3718604 121260352 48777 11652 198142 277188 418343 123138 11682 295003 277188 418343 4000 441637 332425 3.786 146670 6789785 0.2070 839.00 ( 1985 POWER COST STUDY TABLE O-V-D 1985 Expenses (1985 Dollars) Capital Costs: Additional fuel storage Orca Power Plant Relocate Unit 2 Relocate Unit 1 Total Capital Costs Non-Recurring Costs: Loss on installation of Unit 1 Loss on installation of Unit 2 Total Non-Recurring Costs Continuing Annual Cost: Savings due to not operating Eyak P.P. Additional fuel storage Orca Power Plant Relocate Unit 1 Relocate Unit 2 » Reduction depr. Unit 1 installation Reduction depr. Unit 2 installation Total Additional Annual Cost 1992 Expenses (1985 Dollars) Capital Costs: Purchase 5,000 KW Unit Continuing Annual Costs Associated with 5,000 KW Unit 50 $ 100,000. 765,000. 780,000. $1,645,000. $ 95,200. ——146,132. $ 241,332. $ (38,500.) 12,300. 112,554. 110,389. (7,230;:) (8,768.) $s 180,745. $2,850,000. $ 411,255. 1985 POWER COST STUDY (4/24/85 Addendum) OPTION VI This option would sell the Eyak Power Plant building and property except for the City Shop and substation. The existing tanks, the line shed and the open faced warehouse would be removed or left in place depending on commercial considerations at the time of sale. Some arrangement would be made with the City for the space they occupy. Units #1, #2, #7 and #8 would be removed and sold. A new 5,000 KW medium speed (720 rpm or less) base load unit would be purchased and installed in the Orca Plant. A 20 foot addition would be made to the existing Orca Power Plant building. An area on the existing Orca lot would be cleared off to provide secure storage of wire and transformers. A new piece of property would be leased from the City and a new 30 ft. by 30 ft. line shed building would be built. The line shed building could be built on the existing Orca Plant property with no significant change in cost. Additional fuel storage tanks would be installed at the Orca Plant to increase the fuel storage to the desired level. Since the Orca Power Plant would have only three engines installed, (5,000KW, 2,500KW and 2,403KW) the firm capacity would be 4,903KW which is below the peak expected in 1985. During the winter, the reliable capacity would be 2,403KW, well below our existing winter loads. A second generator would have to be purchased at the same time as the 5,000KW unit to meet loads. Chart O-VI-1 shows the peak system load and firm capacity _ under this option. Chart O-VI-2 shows the winter peak loads and the reliable capacity to meet these loads. This option does not provide the necessary capacity immediately. Table O-VI-A provides the generation statistics used for Charts O-VI-1 and O-VI-2. Table O-VI-B shows the various costs associated with this option in constant (1985) dollars. Table O-VI-C shows the costs associated with this option with a three percent inflation rate. Table O-VI-B and O-VI-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. Table O-VI-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. 50-A PEAK SYSTEM LOAD 1985 POWER mosTk Sphirny 12.0 a eee eee Firm Capacity 41.0 - 10.0 9.0 8.0 70 DEMAND (MW) o oO d-0S Bz ti} rae Bc can) Oz Ue} OS OF OWN CHART O-VI-1 12..0> 41.0 - Reliable Capacity wu S 1 a SUNIL CHART O-VI-2 1985 POWER COST STUDY | \zo srs 92.8 id >| INTEREST RATE 2 {EXISTING PLANT) 0.0536 8.0716 0.0716 0.0716 0.0716 0.0716 0.071 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 ay a INTEREST RATE 2 (NEW PLANT) 0.1125 0.1125 0.1125 0.1125 O.1125° 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 (a ot ENO EE 6-68 0-66 6:00-—_—$__06- —108-—_—t 0¢- $-00 ttt tt t-00- “0-00- lor cst at “GENERATION bo (CARAS ACE EARS PLANT —Kit —5906- 2 et eee at ¢ t t— —t t t 0 v T1011 Hs} CAPACITY ORCA PLANT kW 4903 4903 49035 4903 4903 4903 4903 4903 4903 4903 4903 4903 4903 4903 4903 4903 bn ff s) WEW UNIT AT ORCA ki 5000 5008 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 as (*|______FOFAL-GAPAGTTY Ki —10883 5983, 99839839983 9983 HBF 98S 9985 99039 “990T 9S 9903 —9903- Fa :s| lia bs SYSTEM PEAK LOAD kW 5000 5100 5300 5400 5600 5800 6000 6800 7000 7200 7400 7600 7900 8100 8500 8600 la | SYSTEM-WEHTER PEAK LOAD- _ A 3356- —4t 365 soit —3H52- His “4820 4556 86H 48 2- RIS 309232293 S82? S56. 382 jis) SYSTEM FIRM CAPACITY kW 8153 4905 4903 4903 4903 4903 4903 4903 4903 ~ 4903 4903 4903 4903 4903 4903 4903 led, ps SYSTEM RELIABLE CAPACITY KW 5653 2403 2403 2403 2403 2403 2403 2403 2403 2405 2403 2403 2403 2403 2403 2403 i ; "| as I PEAK LOAD EXCESS CAPACITY kW 3153 -197 “7 -497 ~697 -897 -1097 1897 -2097 2297 2497 -2697 -2997 -3197 -3397 -3697 Co # WINTER LOAD EXCESS CAPACITY ki 2303 1014 ~1148 -1215 -1349 -1483 -1617 -2153 ~2287 ~2421 2555 2689 -2890 ~3024 -3158 -3359 : 7 e tc ier t ur! t EI . kl ws Pq ec) id cd x az, ng i * ge jot , = 8 . - _ oe 7 ~ ‘| fi ie ee - _ Fe jr fo {¢ = 2 ; . 50-D | “ : “ "| - i jel s ‘| oe | ® e . z a — [ey 1 e y, L es. ———IGTAL ANNUAL FHH GENERATION _ INTEREST RATE & (EXISTING PLANT! INTEREST RATE 2 (HEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION ——-FUEL.COST /@al . a : TOTAL ANNUAL FUEL COST ___INVESTMENTS. re EYAK PLANT $ 1719809 0 EYAK CHANGES $ 0 0 _ ORCA PLANT $ ORCA CHANGES $ 25000 35000 5 NEW UNIT $ 2850000 _———TOTALINVESTMENT _______ __________$_________5864959_ 7005150. : ANNUAL FIXED COSTS DEPRECIATION eee ee - EYAK PLANT $ 64775 0 7 EYAK CHANGES $ 0 0 7 ORCA PLANT _$ _ 198142198 142__198142__ 198142 - ORCA CHANGES $ 795 1113 re NEW UNIT $ 0 199500 “INTEREST - : - a EYAK PLANT $ 92182 92182 mt EYAK CHANGES $ 0 0 ORCA PLANT _ — -$_________220840 ____295003___295003__295903 ORCA CHANGES $ 2813 3938 NEW UNIT $ 0 320625 ae et. sig 4000 tt ONE TIME COSTS 446088 *___ANNUAL VARIABLE COSTS ee eee es MAINTENANCE $ 151032 155227 OPERATIONS $ 162752 162732 FURR MILLION $ 1.295 1.331 INSURANCE $ 71000 84803 SAVINGS ON NOT OPERATING EYAK PLANT -86070 __TOTAL ANNUAL COST $ _ 2262926 __ 3207859 2326804 2957908 >| TOTAL COST OF ELECTRIC ENERGY $/KWH 0.1257 0.1734 "___INVESTMENT PER KW DEMAND $ 542.90 702.38 50-E —$/6AL— OPTIGN VI---SELL EYAK PLANT, #1,2 ,7 & 8. MM KWH __18.0 13.3- BUY NEW SOOOKW BASELOAD UNIT 26:6 2} 28. 28:8 0.0556 0.0716 0.1125 0.1125 asia mes e 0.00- MM GAL 1.385 1.423 0.0716 0.1125 0.0716 0.1125 8.08 0.0716 0.1125 0.0716 0.1125 0.60 —0.03- ---6.00-- —6.99-——0.99- 0.0716 0.1125 6.0716 0.1125 —_—$.94__6.% O54 MILLION $ $1.295 $1.331 $1,388 $1.460 $1.496 $1.77 $1.863 $1.949 $2.014 TABLE O-VI-B 0.0716 0.0716 0.0716 0.1125 0.1125 0.1125 2.215 2.508 2.423 094-0. 54 8 a 08 te $1.915 $2.071 $2.158 $2.266 4120150____4120150 4120150 4120150 4420150 4120150 4120158 ——4120150 4120150 850000 7010158 7015156 2850000 = 2850000 = 2850000 §©= 2850000 ©= 2850000 ©= 2850000 §©= 2850000 += 2850000 ©=- 2850000 0 0 9 8 8 0 —4120150 4126150 4120150 4420150 -—4120156-—4120150 — 4120158 105000 2850000 30000 95000 100006 2850000 © 2850000 = 2850000 " 7820150—4025150—7030156-—7835150 — 7401507645158 —-7056150-—-7055150 7860150 7065159 —-7878158-——7875158-—_ 198142193142 198142 0 0 0 0 8 0 Aside 498142 198142 498442 ——_498442- 199500 199500 199500 199500 199500 199500 199500 199500 199500 199500 198142 198142 — 198142 —i98h42-—_ * 3359 199500 2862 3021 3180 199500 199500 199500 92182 235003 295003 295003 520625 320625 520625 520625 520625 4000___ 520625 520625 320625 490049904900 ____4009-_--4903 480-4000. 320625 520625 92182 92182 92182 0 § 0 ‘si 295003 ——295003—— 295003295003 —_— 295003295003 235003 295083295063 10125 10638 11250 520625 520625 520625 234939 212732 2.014 2.074 227387 212732 4.949 — 161940 182077 207249 162732 170331 212732 --1.383_____1_460___1.496 174526 212732 192985 217318 212732 223192 212732 —1561____1 654 ____ #77 —_1, 863 —___1. 43 86070 -286070 -86070 | 3314409341156? 3468563 3503503 —3592572-3647608 — 3744764 — 3866016397426 80070 299883: ~86070 86070 -%6070 3071904 3177993 86070 86070 86070 0.1465 702.83 0.1457 703.33 0.1442 203.82 0.1416 —70}.40—— 0.1504 Fide 0.1381 704,90 0.1342 710-4) 0.1517 210.31 — 0.1295 - i! 4-92 —— 0.1279 742.43 241651 251720 264306 212732 2732 212732 e-—_—-2.6— 85469 85529 85590 ~8607 80070 ~86070 0.1267 0.1248 0.1227 | | | | | | | | | 30.6—3hi- 32:6 0.0716 0.1125 —8:8-———$ 6.8 ttt, $2.359 o 320625 275214 212732 ~86070 0.1211 742-93 H3.44—__A5. Mt —_74-45—_ <> ke eWewnywn on @ oO c Moore Business Forms, Inc. ¥ TABLE O-VI-C 1993 1994 1995 1996 1997 1998 1999 2000 TAL ANA HT GERERAT ION aH 18-0 1825 IF ~263- 208 er 23.0 2 85.9 26. —— 89 8-0 2 0 SS INTEREST RATE 2 (EXISTING PLANT) 0.0536 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.0716 0.6716 9.0716 0.0716 0.0716 0.0716 0.0716 6.0716 0.0716 . INTEREST RATE 2 (NEW PLANT) 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 0.1125 9.1125 0.1125 9.1125 0.1125 0.1125 0.1125 0.1125 9.1125 0.1125 * NFAT EO RATE 0-05 tT 8-03 805 t-85 main) t-t3— #203 0 — thts —_thtt- —_ 8205 —- —8.03- — 0.03 03-8835 _ : ANNUAL FUEL CONSUMPTION MM GAL 1.385 1.423 1.485 1.562 1.600 1.669 1.769 1.900 1.992 2.046 2.085 2.154 2.215 2.508 2.425 2.523 | 2 FUEL COS TF Gat $feat— 0:96 89 t.02 185 het tale: tts +18 __-22— ft “he TOTAL ANNUAL FUEL COST MILLION $ $1.333 $1.412 $1.517 $1,645 $1.754 $1.864 $2.054 $2.250 $2.431 $2.571 $2.698 $2.71 $3.042 $5.264 $5.530 $3.7386 ———TRVESTNERTS-—— oe : SS Se a - - a EYAK PLANT $ 1719809 9 0 0 0 0 0 0 0 0 5 8 0 8 0 8 EYAK CHANGES $ 9 9 0 0 0 0 0 0 6 0 8 0 0 8 6 0 bl CREA PLANT — a - _ St28150-— 4120158 st 28S 4 1201504 28S st 28150 tsa 4 2858-41 251504120150 4120156 4120156 —-4120150-—— 4 1 20150 —4126156- —4 126150 5 ORCA CHANGES $ 25000 35000 41200 47586 S4los 60958 67917 75104 $2507 90132 97986 106076 114408 122991 131830 140935 NEW UNIT $ 2850000 = 2850000 = 2850000 = 2850000 §= 2850000 §= 2850000 §= 2250000 = 2850000 = 2850000 §=— 2850000 §= 2850000 §= 2850000 §= 2850000 = 2850000 §=_ 2850000 a a ROTACTENVESTNERT ————SsSsSsSsSsSsSsS S885 200 FOL FOF 7S TO 28 SES POS OSS —— POSSE? — 788 5254 — 7052657 ANNUAL FIXED COSTS 27 7093141 —-7401980—7H11085— u 7660282-— 7068136——7076226— 7084558 se ERE TAT HOH —— 7 a > Ane saaepalcn LI EYAK PLANT $ 68775 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a EYAK CHANGES $ 6 0 0 0 a 0 0 0 0 0 0 0 0 a 0 0 * REA PLANT $ 198142 — 19842198142 198142 198142 198142 198142 —198142- —1 98142 —198142- 198142 198142198142. ——198142 198142196142 — s ORCA CHANGES $ 795 LS ASLASIS. = s1722,—s«193BC—=i“(itiNSDS238B KM 2RKK (SNS SHS 6B MLS HII BZ Y NEW UNIT $ 9 199500 «199500 «199500199500 ~=—«199500 «199500 «199500 «199500 199500-«199500 «199500 «199500 «199500199500 «199500 * a EYAK PLANT $ g2ie2«92182—=«=«9282=—=«9NNBZ—S«SRNBZ=S«921B2—S=sUNBZ=—=Ss921B2_=—=9NBZ-=s«RNBZ_=—=s92NBZ=—= NB =—s«92LBZ = 9B 9UNBZ=—BIBZ he EYAK CHANGES $ a 0 0 0 6 0 a 0 0 0 0 a 0 0 0 0 ee —220888-——295003-—295003 — 295003 295003 ——-295683 295005 295003295003 —-295003- 295003 295003295003 295003 -—-295003 --—295003— ORCA CHANGES $ 2813 3938-635 S353 9S 68SG 74k SHAD 9282—S10KD 100231934 1287115836 1485115855 NEW UNIT $ 0 320625320625 © 320625 520625 520625320625 «320625 «= 320625 «320625 © 520625 320625320625 «320625 «320625 320625 RENT aa + -4000-——4000- 1000 480 ——49-———-s8¢ ——+900-——1900 4080 ——-4000-—-—-4000-———-4900-——4000 4000 4000 ——4900-— "OWE TIME cosTs 446088 ANNUAL FAR EABLE-€06 5 ————— a pci a —— aes — . HAINTENANCE $ 155563 164681 «176956 «191709 = 202525 «217410 =—«-237348 «262537 «283551 «299951 SA7S7 = 334966 = 354873 «580749411780 «441637 . OPERATIONS $ 167614 —172642-—=—=«s177822_—=«D3SLSG —«2HOLSL ©—« 247356 «254776 ©—«26NALD-—«270292_—«=«2PRKOL©=—=« 286753 «295355. «= HOANLG=—«S1S343_ 520743332425 OM 25 tt tt tt ——_ 1 06 8 05¢- 9050 —9-451- 9-57-2698 8.6714 3.02 - —3:264 3.550 3 -706—* C INSURANCE $ 71000 © 84803.«== «84878 BHISS«=—BS05S«—BSLL?~=—= «85201 += 85288-«=S 85378 «== 85470 «85565 «85663 «85764 «85868 «= «85975 8808S = SAVINGS ON NOT OPERATING EYAK PLANT . 86070-88652. “91512-94051 96875-99779 -102772-« -105855 109031. 112302115671 “1191-12715 -126397—-130189 1A ANNUAL 0087 2511177 -3308255~ — 2983252 —31 78115 —3295000-——3434¢9 3034294 —3878190-—4085265- —4248368-— 4396396 4596556 4793571 9048147. 3522718645374 — © TOTAL COST OF ELECTRIC ENERGY $/KWH 0.1284 0.1788 0.1546 0.1566 0.1579 0.1585 0.1579 0.1570 0.1577 0.1597 0.1622 0.1642 0.1664 «0.1683 0.1699 O.721 LEV THENT-PER-HH-BEMAND oan 542-99 —— 78738-70800 708-65 789-34 71008-74887 43--—F42 17-742 SPF 55-—FAS 40 —716:26-— FAS 748,07 — * 3 ; o \ as oon - man 7 : ie a 50-F ~ 1985 POWER COST STUDY (4/24/85 Addendum) TABLE O-VI-D 1985 Expenses (1985 Dollars) Capital Costs: Additional Fuel Storage At Orca Power Plant Sell Units #1, #2, #7 & #8 Sell Eyak Power Plant Purchase 5,000 KW Unit Build Line Shed At Orca Plant Non-Recurring Cost: Loss on Installation Unit 1 Loss on Installation Unit 2 Loss on Sale Unit 1 Loss on Sale Unit 2 Gain on Sale of Eyak Plant Continuing Annual Costs: Fuel tanks at Orca Power Plant Reduction due to sale of Unit 1 Reduction due to sake of Unit 2 Reduction due to Sale of Eyak Plant Annual Cost 5,000 KW Unit Annual Cost Line Shed 50-G $ 100,000. (225,000.) (200,000.) 2,850,000. 45,000. a $2,570,000. $ 95,200. 146,132. 142,800. 69,198. ieee $ 446,088. $ 12,300. (18,075. C21,,.920) (101,236.) 411,255. 16,300. oN $ 298,624. 1985 POWER COST STUDY (4/24/85 Addendum) OPTION VII This option maintains both the Eyak and Orca Power Plants. Adequate diking would be provided around all oil tanks. The open faced warehouse and the line shed would be removed. The Eyak Power Plant would be modified to provide storage for line crew materials and provide a line crew ready room. Additional oil storage would be provided at the Orca Power Plant. The Orca Plant would be operated as base load during the non-fishing periods and the Eyak Plant would be base loaded during fishing and the Orca Plant would be used to meet peak loads. A new 1,000KW peaker (900 rpm EMD or equivalent) would be purchased and installed in a 20 ft. addition to the Orca Power Plant. Units #7 and #8 would be retired in 1989 if a major mechanical problem does not occur earlier. A new 5,000 KW medium speed (720 rpm or less) unit will be purchased and placed in operation in 1996. The unit would be installed in a 20 ft. addition to the Orca Power Plant building. No other generation will be purchased during the study period. The purchase of a 1,000KW peaker in 1986 would increase the available capacity in the Orca Plant and reduce the operation of the Eyak Plant by twenty days per year. This additional engine would allow the Eyak Plant to be placed on eight hour standby at an undetermined savings. The additional capacity would put off the need for a large (SO0OKW) unit until 1996. Since no additional generation would be required until 1996, more will be known about the possibility of an alternative energy source which can be evaluated when the final decision on the 1996 unit is made. Chart O-VII-1 shows the peak system load and system firm capacity under this option. Adequate reserve exists during the study period. Chart O-VII-2 shows the winter system peak load and the system reliable capacity under this option. Adequate reserve capacity is maintained throughout the study period. 1985 POWER COST STUDY (4/24/85 Addendum) Table O-VII-A shows the generation statistics for this option by year. Table O-VII-B shows the cost of this option in constant (1985) dollars. Table O-VII-C shows the cost of this option in actual dollars with a three percent inflation rate. Tables O-VII-B and O-VII-C show the bus cost of power each year. This is the cost to produce power and does not include distribution, billing, and administrative costs or the required margins on the debt to meet desired TIER levels. Table O-VII-D summarizes the recurring and non-recurring expenses associated with this option. Detailed cost estimates for this option are included in Appendix A. 50-1 V1. - Ww ‘a ( - rity a0 - (2.09 - : vi] . ; | | ha Pr ar Po PnP ey Firm Capacity CHART O=-ViII-1 WINTER PEA 193385 PRK cos SS ihiiy Reliable Capacity iat tata rie sal) OZ taf ay 13ig eu CHART O-VII-2 Moore Business Forms, Inc. ¥ | TABLE O-VII-A wick STUZ ON VII KEEP @ NTS. GU: 1000 KW PEAKER FoR ORCA Fe 1985 1987 TOTAL ANNUAL KWH GENERATION = MM KWH S80 BS 19.3 20.5 20.8 21.7 23.0 24.7 25.9 26.6 Bet Lee!) II 28.8) S00 StS J) | see) ae INTEREST RATE 3 (EXISTING PLANT) 9.0538 0.0716 0.0716 += 0.0716 ~ 0.0716 «9.0716 += 0.0716 §=— 0.0716 §=— 0.0716 §=— 0.0716 © 0.0716 ~=— 0.0716 = O.071e §=— 0.0716 += 0.0716 = 0.0716 INTEREST RATE 2 (NEW PLANT) 0.1125 0.1125 0.1125 0.1125 0.1125 011251251125 2S 0.125 O25 O25 OL25 0.125 0.125 0.1125 INFLATION RATE Pre INIIMIUUEUILUN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.00 0.00 0.00.00 0.00 0.00 0.00 «GENERATION : CAPACITY EYAK PLANT +t 5900 5900 5900 5900 4550 4550 455045504550 4550 4550 550 4550 S50 a5SO SSO CAPACITY ORCA PLANT i 4903 4905 4903 4903 4903 4905 4903 4903 4905 4903 4903 4903 4905 4905 4303 4903 NEW UNIT KW 0 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 6000 6000 6000 6000 6000 TL MOTAR CAPACITY, ew 10803 11803_—11803——803__—N0453_——N04SS_—N04SS_— 104531045 10453_——204S_——1S4S3_—15453_— 1545315453 1SASS : SYSTEM PEAK LOAD ti 5000 5100 5300 5400 5600 5800 6000 6200 7000 7200 7400 7600 7900 8100 8300 goo e SYSTEM WINTER PEAK LOAD WSO STS SB 3752 3886 40204556 a9 gd 895850928295 5427 5561 S762 b: SYSTEM FIRM CAPACITY i 8153 3153 9153 9153 7803 7803 7805 7803-7803 7803 7003 «12803 «12803 «= 12803«S «12803, 12803—C bs SYSTEM RELIABLE CAPACITY KW 5653 6653 6653 6653 $303 5303 5305 5303 5393 5303 5303 1030310305 «= 10303. «= 10303'S 10303, 2 PEAK LOAD EXCESS CAPACITY ki 3153 4055 3853 3753 2203 ~ 2003 1805 1003 803 605 403 $203 4903 =—=«4703—=—i(‘iéSOS OS™ * WINTER LOAD EXCESS CAPACITY iw 2303 3256 3102 30351551 1417 1283 747 615 479 345 S2ll 5010 4876 4742 Sib I Sis b- - 3 att sty SI I! in i « H ( at “113 - he ( : TINH eee ‘ “ tt fa | rn 7 daleletee ee ve BLP fr i. . ¥ yt Ce eH hater eras ML OS ELIMI VEER pe lace 7 a pe oe Net ae ae TABLE O-VII-B TOTAL ARNUAL Kat GENERATION INTEREST RATE & (EAISTING PLANT) INTEREST RATE 2 (NEW PLANT) INFLATION RATE ANNUAL FUEL CONSUMPTION FUEL COST /GAL TOTAL ANNUAL FUEL COST INVESTMENTS EYAR PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT TOTAL INVESTMENT “ANNUAL FIXED COSTS DEPRECIATION EYAK PLANT EYAK CHANGES ORCA PLANT GRCA CHANGES NEW UNIT INTEREST EYAK PLANT EYAK CHANGES ORCA PLANT ORCA CHANGES NEW UNIT RENT ONE TIME COSTS ANNUAL VARIABLE CUSTS MAINTENANCE OPERATIONS FUEL INSURANCE SAVINGS ON NOT OPERATING EYAK PLANT TOTAL ANNUAL COST TOTAL COST OF ELECTRIC ENERGY $/KWH INVESTMENT PER KW DEMAND HM GAL $/6AL MILLION $ ooewvww eooewovwe woewwuwea $ $ MILLION $ $ $ 50-M 1719809 150000 4120150 25000 0 6014959 64775 4770 198142 795 0 92526 8070 221664 1345 0 4000 131052 162732 1.295 71000 2275466 0.1248 556.79 1719809 180000 4120150 35000 1400000 7454959 64775 5724 198142 L115 44520 123158 12888 295003 2506 100240 4000 155227 162732 i.331 87998 2538583 0.1399 690.08 1719809 185000 4120150 40000 1400060 7468959 64775 5885 198142 1272 44520" 123138 13246 295003 2864 100240 4000 161940 162732 1.383 88116 2655986 0.1375 691.61 1719809 ~ 190000 4120150 45000 1400000 7874959 64775 6042 198142 14351 44520 123138 13604 295003 3222 100240 _ 4000 170331 2127352 1.460 88254 2785452 0.1372 691.93 1719809 195000 3120150 50006 1400000 7484959 64775 6201 198142 1590 44520 123158 13962 _ 295003 3580 100240 4000 174526 212732 (1.496 88352 2326761 0.1359 791.81 1719809 200005 4120159 55090 1400006 7894959 +s 64775 6350 198142 1749 44520 123138 14320 295603 5958 100240 4000 182077 212752 1.56) 38470 2300195 0.1336 792.87 1719809 205000 4120150 60000 1400000 7505959 64775 6519 198142 1908 44520 123138 14678 295005 $296 1002490 4000 192985 212732 1.094 38583 3095755 0.1307 793.92 24.7 25.9 26.6 ait 28.0 0.0716 0.0716 0.0716 0.0716 0.0716 0.1125 0.1125 0.1125 OLT125 0. 1125 9.00 0.00 0.00 0.00 0.00 1.900 ~~ 1.992 2.046 2.085 2154 0.94 0.94 0.94 0.94 0.94 $1.777 $1.3635 $1.913 $1.949 $2.014 1719809 1719809 =—-1719809 = 1719809 ~—-1719809 210000 215000 220000 ~~ 225000 «230000 $120150 = 4120150 = 4120150 = 4120150 = 4120150 65000 70000 75000 80000 85000 1400000 = 1400000 »=- 1400000 1400000 ~~ 4250000 7318959 7524959 = 7558959 = 7544959 —-:10404959 64775 64775 64775 64775 64775 6678 6837 6996 ISS SLE 198142 198142 198142 198142 198142 2067 2226 2385 2544 2703 44520 4452044520" 44520155150 123138 123138 123138 123158 123138 15036 15398 15752 ~ T6110 16468 275005 295005 295003 295003 295003 4054 5012 3370 5728 6036 157500 157500" 157500 157500 «478125 4000 4000 4000 4000 4000 207249 217518 225192 227387 234959 212732 2127352 212732 212732 2127352" 1.777 1.863 1.913 1.949 2.014 83706 88824 83942 87060 122819 3200700 = 5298229) = 5355601 = 5396909 = 5915240 0.1296 0.1275 0.1262 ~ 0.1255 0.1598 794.98 796.04 797.10 798.15 673.353 28.8 0.0716 0.1125 9.00 ——2-215- 0.94 $2.07! 1719809 ~ 235000 4120150 90000 4250000 10414959 64775 7473 198142 2862 135150 1231358 1e826 295005 0444 ~ 478125 4000 241651 2127352 2.071 122937 3980643 0.1582 673.98 30.0 31.5 0.0716 0.0716 0.1125 6.1125 0.00 0.00 2.308 2.425 0.94 0.94 $2.158 $2.266 1719809 =: 1719809 240000 245000 4120150 4120150 95000 190000 4250000 = 4250000 10424959 10434959 64775 64775 7632 7791 198142 198142 — 3021 3180 T3SI50 135150 123138 123138 17184 17542 295003 295003 6802 7160 478125 478125 4000 4000 251720 264306 212732 212732 2.158 2.266 123055 123175 4078172 4199794 0.1359 0.1533 74.62 675.27 1719809 250000 4120150 105000 4250000 10444959 64775 Ae: am 198142 53359 1351507 123138 17900 295003 7518 478125 4000 275214 212732 2.559 123291 43505354 0.1315 675.92 c ve] Moore Business Forms, Inc TABLE O-VII-c { Us we 1988 1990 1995 1936 1997 1998 1999 2000 "Fak -ANNUALKivH- GENERATE QN—— K-18. ——48.5 19.3 20.3 ‘ a4? 27.4 28.0 28.8 0 Oe oie Soa soee ad i INTEREST RATE % (EXISTING PLANT) 0.0538 0.0716 «= 0.0716 = 0.0716 = 0.0716 §=— 0.0716 0.0716 0.0716 = 0.0716 += 0.0716 = 0.0716 §=— 0.0716 jf INTEREST RATE & (NEW PLANT) NEEDS MMO SL 2S) NNN GE SOMO SE ZS E 2M OUT 2) OSET25} M0 24425) ONLE25; III Ost125 IIMll| 0814251) I OHTE AG) IN ONG $F GHA 4:03 4.63 _—0.6}_——0.03___0.03. 6.83 —$.03-__0.03 OOS Oe ee OG men DUDS UME l ANNUAL FUEL CONSUMPTION HM GAL NS nN ee A ee A 2 OM eA ees SS 2 Ee a SG —— $/GAL— 0:96 —0.99-———4.02- 4-05 4.08 ——1. 412-445-418 1.22 1.2 £29 133 37 L4l A j TOTAL ANNUAL FUEL COST HILETOM SII) $1559 il eat ALU SESE | ll SL GASiem ul SL" 7394 Illi $10 B64)Ill$280543) ll t$2/250 lll $22AG El $245 7 825698 lll $20 il I $e C423 26 ll 'SS Slee 2 RE NEN § Sa ae ae EOE —— ——-—--— EYAK PLANT $ 1719809 1719809 1719809 1719809 1719809 1719809 1719809 1719809 1719809 «1719809 «1719809 1719809 »~=—:1719807 += -1719809 «1719809 «1719809 i EYAL CHANGES $ 150000 180000190550 201417 «212609» 224137 236011 «288242260859 = «273814 = 287179 «= 300944 «= 315122 329726 «= 344768 «= 360261 pe BREA PLANT. §-_-4420150-— 4201504120150 4120150 - 4426150 -— 420150 4420150 4120150. 4120150 4120150. — 4120150 — 4120150 4120150 4120150 4120150 ___4120150._ i ORCA CHANGES 3 2sooo, «= 3500041200» a7586 = S464 = 60938 = G7917- «75104 = 82507 «90132 97986«=— 06076. «114408 = 122991 = 31830140935 ia NEW UNIT $ 0 1400000 © 1400000 ~= 1400000 = 1400000 © 1400000 1400000» 1400000 1400009 1400000 1400000 5230162 5230162 5230162 5230162 5250162 FO VES THEM ‘- 6044959 — 7454959 7471763 7483962 —7506732—« 7525038 —7543887 7563505 — 7533505 7603906 7625124 11477141 11499651 11522837 11546719 11571312 __*: i ANNUAL FIXED COSTS i BEPRECIATIO u ni le a aU ba font a bee u rae cele ie EYAK PLANT $ 64775)||"||| :GA225..)| | noc eet eveag79 | || GA775)||||") 64775," "| 64775) | "*spearst ||| egazSe ||| 64775 64gys ||) adzz5.2 | Mebz75 |||" eager = oaagD. oo r EYAK CHANGES $ 477 5724 6059 6405 é76l 7128 7505 7894 8295 8707 9132 9570 = -10021_«S «1048S 10964 = 11456 *—_—— 4 CAPLAN -—-- - = 498142 198142198142 199142 ___198142 __198]42_ __198142 __199142 __198142__198142__198].42___198142___198142____198142___198142___19a142_ r ORCA CHANGES $ 795 ILLS 1310 1515 1722 1938 2160 2388 2628 2866 36 3375 3638 391 4192s 2 S NEW UNIT $ 0 |)||)|44520))))) |) 44520,.))) | 44520, * > </4a520 |||) | 44520, ||) 44520))))|||/44520 | ||| 44520))))|||/ 44520)))| ||| 48620))))|||/ 166519) |) |) 166319) |||) 166519) +)|166319 | |||) Beasl9 ; THTEREST UT — fe -_ ce a —_— = eae eee f EYAK PLANT $ 92526)! 125138 ||| T2818) |) LSS a eae ISG) 2.5138 |) 23158 || 1.25158 |) 28158 | 251585) 2428138 | 1231383) |l|)1 251.38) 123198) 128438 |)| POS138 i EYAK CHANGES $ 070) 128885)! |) LE SOAS 1), 14420 ag 5223 |)||/ 16048) 16898) | 17724 ||| |b @6765)||\/'49605)"||) ||| 26542) 24548) ||| 22563) || 25608) |||) 28585. ||||| ones RGA PLANT. 221664-——295003- 295003295003 295003 295003 295003 295003 _295003..295003- 295003 295003. 295003 ____ 295003 ____295003__295003___« if ORCA CHANGES $ 1345 2506 2950 5407 3378 4365 4863 5377 5908 6453 7016 7595 8192 8806 9439 10091 if NEW UNIT $ 0 100240 = 100240» 100240 = 100240 §= 100240 »=— 100240» 157500 = 157500 = 157500 157500 988393 «588393 «588593 «= 588393 «588393 fet —-- - -$—-— — 4003 — — 4000 490. 4900. __ 4900 4909. ____4900 4000 4030. 4008 4000 4000 4ooe 4000 4000 ______4000__ i ONE TIME COSTS “diet VAREABLE-G05F§ SL ~ - aaa in MAINTENANCE $ 155563 * 164681 176956 = 191709202323. «217410 «237348 = 262537 «283551 = 299951 = 314757 = 334966 = 354873 «= 380749 «= 411780 «= 441637 i OPERATIONS $ 167614 || 172642 || 177822. . | 253156. -2HOISL | 247356 254776 262419 270292! 27BKOL |: 286753 «| -295355. | SONRIG Sasa. = SooNAS aged FUEL -- MILLEN § 1.333. ——HH12-__- L.512__1 6431734} gh gy sg. AS) 8S 2.698 B71 S02 32264 S578 i INSURANCE $ 71006) ||| 87998) |||) 88195 ||| 88599))| |) GA46009 |||, 88825 |||) 89047)|||)|||| 89277) 1/8951 I)|||||, 89756. |||||| 90086) 135475) 135741|||/}) ES60EK || tssaee6 |||) Rese? r SAVINGS ON NOT OPERATING EYAK FLANT _ ——TSTAL ANNUAL COST $-—- — 2523718 2688979. 2813585 3012115 3122759 3276479 3474911 — 3785162 3996377 4143937 _ 4310452 5119916 5520912 __ 5580391 _ 5999565 6187869__ TOTAL COST OF ELECTRIC ENERGY $/KWH 24291), 0 1454)))\| 07145800 2484)21 8 OL 1S01\)\)|\\(Oxt S10) 0:15912)))|0519324))|/'01943))\I):041565)))|)(0-4.999)))|)/(01828))))))/0#1848 1) 081 860))))|, Q2870))))|/ 051887 ——_ TMVESTMENT PER EW DEMAND $ $56.79 —--631,62, —633-03-_634.50___ 718.14 _719.99 721/99 99355 795 47.) 9074409 a7 pho 7d 2a 2S 6 27 22g i E na - -- ~—- - se 50-N 1985 POWER COST STUDY (4/24/85 Addendum) TABLE O-VII-D 1985 Expenses (1985 Dollars) Capital Costs Additional Fuel Storage At Orca Power Plant Purchase 1,000KW Peaker Dike and Oil Containment at Eyak Power Plant Continuing Annual Costs: Fuel Tanks at Orca Plant Annual Cost 1,000KW Peaker 1996 Expenses (1985 Dollars) Capital Costs: Purchase 5,000KW Unit Continuing Annual Costs Associated with 5,000KW Unit 50-0 $ $ $ $ $ $s 100,000. 1,400,000. 130,000. 1,630,000. 12,300. 255,500. 267,800. 2,850,000. Ait 255). 1985 POWER COST STUDY B. Fuel Supply and Storage If any engines are to be left at the Eyak Power Plant suitable diking must be provided for all remaining tanks. If the Eyak Plant is not to be used for generation, then additional storage must be provided for the Orca Power Plant. The proper amount of fuel storage is influenced by many factors. Primary among these factors is the reserve on hand to meet expected or unexpected interruption in the delivery schedule. Other minor considerations are the minimum amount per order from Chevron (6,000 gallons), the truck size for hauling fuel to the Eyak Plant (4,000 gallons) and the rate at which fuel is burned in the engines. While the Orca Plant does not have a significant amount of storage, it does meet all Federal and State requirements as to diking and pollution control. The Eyak Plant, on the other hand does not have adequate diking and is in violation of federal EPA requirements. If fuel is to continue to be stored at the Eyak Plant, the oil containment must be brought up to standards. At the Eyak Power Plant fuel is not hauled unless two loads can be delivered (8,000 gallons). Thus, even if the storage amounts to 50,000 gallons, the last 8,000 gallons is not counted for an effective storage of 42,000 gallons. r At the Orca Power Plant we do not transfer oil unless we can reserve 6,000 gallons to receive the lowest cost fuel. During the peak generating period in 1984, Cordova Electric Cooperative consumed 4,868 gallons per day. This is expected to increase to 6,620 gallons per day by 1995. Chart F-1 shows the relationship between fuel storage and number of days supply of fuel for 1985 and 1995. It is a policy decision as to how much fuel is required to meet fuel supply interruptions. Chevron has recommended that we maintain a four to seven day supply of fuel to cover any interruptions in supply of fuel. 51 VALLYVIVY YIVIVNvNULl (Thousands) es 120 T10 100 90 1) 7O 690 50 40 30 ZO 10 DAYS OF FUEL ON HAND LIBS EAR POWER. RLANT SPCC ee < | | a e) os | avd | | | | | | “T. s \ ar ta T T T TF T T | T a -4 2 BS “f S 6 fe 8 g 1-0] —) 1 12-15 14 I 1 DAYS 1985 POWER COST STUDY OPTION A (Eyak Power Plant) Continue to use the Eyak Power Plant for generation as outlined in Option I above. Install a 10,000 gallon tank for storing waste oil for the waste oil boiler at the Eyak plant. Install a dike and liner capable of holding the contents of the existing 130,000 gallon tank, relocate the 130,000 gallon tank onto the liner. Replace fuel piping from containment area to power plant. Install new fuel lines from 10,000 gallon tank to the waste oil boiler. Install steam lines from the boiler to the waste oil tank to heat the oil. Build new oil transfer station for pumping from trucks to tank. Estimated Construction Costs: $93,349.00 Annual Costs: 13,470.00 Number of days supply at Eyak Plant: 1985 25 1995 18 Appendix A has detailed cost estimates. 55 1985 POWER COST STUDY OPTION B (Eyak Power Plant) Continue to use the Eyak plant as outlined in Option I above. Make a large (150 ft. by 30 ft.) containment area approximately one foot high. Install a liner over this area. Install a series of 10,000 or 20,000 gallon tanks to provide the desired level of fuel reserve. Install a 10,000 gallon tank for waste oil for the waste oil boiler. Remove and dispose of the 130,000 gallon tank. Replace fuel pipes into the Eyak Power Plant. Install fuel lines from the 10,000 gallon waste oil tank to the waste oil boiler. Install steam lines from the boiler to the waste oil tank to heat the waste oil. Build new oil transfer station for pumping from trucks to tank. This containment area will ultimately hold ten 10,000 gallon tanks or seven 20,000 gallon tanks. For cost estimating purposes, the following tanks will be installed initially: FAA Tank 10,000 gallons Rawlins' Tank 10,000 gallons Rawlins' Tank 16,000 gallons New Tank 20,000 gallons Total Fuel Storage 56,000 gallons New Tank (Waste Oil) 10,000 gallons Estimated Construction Cost $136,125.00 Annual Costs 19,643.00 Number of Days Supply at Eyak Plant: 1985 10 1995 7 54 1985 POWER COST STUDY OPTION C (Eyak Power Power Plant) Continue to use the Eyak Power Plant as outlined in Option I above. Leave the 130,000 gallon tank where it is, but drain it and disconnect it. Build a small containment area, east of the 130,000 gallon tank, capable of holding only the tanks to be initially installed . Use only existing tanks. Install 3,000 gallon tank for waste oil. Containment area would be 60 ft. by 25 ft. by 20 inches high. Use liner from Dave Rawlins and extend it as necessary. Install fuel oil lines from containment area to power plant. Install fuel oil lines from 3,000 gallon waste oil tank to waste oil boiler. Install steam lines from boiler to waste oil tank. Install small oil transfer station for pumping from trucks to tanks. The following tanks will be included: FAA Tank 10,000 gallons Rawlins' Tank 10,000 gallons Rawlins' Tank 16,000 gallons Existing Tank for Waste Oil 3,000 gallons Total Fuel Storage 36,000 gallons Estimated Construction Cost $ 64,475.00 Annual Cost 9,308.00 Number of Days Supply At Eyak Plant: 1985 6 1995 4 55 1985 POWER COST STUDY OPTION D (Orca Power Plant) This is the "do nothing" option. It retains the 10,000 gallon tank. This tank is suitably diked all EPA regulations. Construction Costs -0- Annual Costs -0- Number of Days Supply At Orca Plant: 1985 1995 existing and meets 1985 POWER COST STUDY OPTION E (Orca Power Plant) This option provides a significant amount of storage at the Orca Power Plant. This option would be used if the Eyak Plant were to be shut down or there was not sufficient reserve capacity at the Eyak Plant. This option constructs a 50,000 gallon tank on the rock bluff behind the Orca Power Plant. This tank would be connected to the existing 10,000 gallon tank and transfers would be accomplished manually by opening a valve between the two tanks. A containment area sufficient to hold the contents of the 50,000 gallon tank would be built. This tank would be filled by gravity feed from the Chevron tanks. No fuel transfer facility is anticipated. The space available does not allow the use of several smaller tanks. If desired, two or three 50,000 gallon tanks could be installed. Construction Costs (per 50,000 gallons) $ 90,000.00 Annual Cost (per 50,000 gallons) 13,000.00 Number of Days Supply At Orca Plant: 1985 10 1995 7 Appendix A contains detailed cost estimates. 57 1985 POWER COST STUDY OPTION F (Orca Power Plant) This option install a 16,000 gallon fuel storage tank at the Orca Power Plant. This will bring the total storage available at the Orca Plant to 26,000 gallons. This represents a four day supply in 1985 and a three day supply in 1995. This tank would be located near the existing 10,000 gallon tank and would be connected to existing fuel lines from the power plant and Chevron. A dike would be constructed around this tank. Capital Cost $16,665.00 Annual Cost $ 2,405.00 Number of Days Supply At Orca Plant: 1985 ~ 1985 3 Appendix A contains detailed cost estimates. 1985 POWER COST STUDY OPTION G (Orca Power Plant) This option installs a 10,000 gallon tank at the Orca Power Plant for bulk storage of lubricating oil. To enable oil to flow in the winter months, a hot water line from the engine jacket water system will be run from the plant to the tank. Capital Cost $23,000. Annual Cost 3,289. Annual Savings 9,050. Net Annual Savings $, 721. Appendix A contains detailed cost estimates. 52 1985 POWER COST STUDY (4/24/85 Addendum) OPTION H (Orca Power Plant and Eyak Power Plant ) This option would purchase a new 10,000 gallon waste oil storage tank for the Eyak Plant and a smaller (approximately 8,000 gallon) tank for the Orca Plant for storing bulk lube oil. The Rawlins' 16,000 gallon tank would be installed in an expanded containment area at the Orca Power Plant. The Rawlins' 10,000 gallon and the FAA 10,000 gallon tank would be installed in a new containment area at the Eyak Power Plant. The 130,000 gallon tank will be drained and left on site empty. Capital Cost $ 8723507. Recurring Annual Cost 30 Year Eyak Plant Cost $ 27 3 Ole 5 Year Eyak Plant Cost 20,476. Annual Savings From Bulk Lube Oil $ SF OS0. Net Annual Cost 30 Year Eyak Plant Life $ 3,688. 5 Year Eyak Plant Life AZ 6s 59-A i985 POWER COST STUDY System Control. A more sophisticated control system must be provided for Orca Power Plant that has the ability to open and close distribution feeders as necessary to maintain the load within engine capacity conditions. As discussed above, the Orca Power Plant control system is a simple relay controlled system that performs the following functions: 1. Remote start/stop of each engine from the Eyak Power Plant. Future improvements will allow the Eyak Power Plant to control the specific load on each unit. Selection of a "first unit" by manual switch. The first unit is the unit that will remain running if two engines are no longer required. Automatic start/stop of the standby unit by the "first unit". Load sharing automatically provides that each engine take one-half the load when both are on line. Automatic Black Start. If the power goes off, both engines will try to start. The first engine up to speed will automatically place itself on line and take the load. This feature is normally not used since the initial cold load pickup is usually above the capacity of either engine by itself and would result in a shutdown of that unit on overload. Note that the system does not have the capability to be expanded to handle the involved decision making if a third unit is added to the power plant at a later time. A more sophisticated control system based on a microcomputer could perform the following functions: 1. Monitor engines for long range trends as part of an on-going trend. Schedule preventative maintenance checks based on observed engine parameters as well as engine hours. 60 1985 POWER COST STUDY aA Monitor short term engine performance giving alarms of pending problems before they become critical. 4. If a problem occurs with an operating engine, start a back-up engine and bring it on line before the lights go out. 4 Maximize fuel efficiency by selecting the most efficient operating points for each engine. The selection of engines would be based on prior days peak loads, seasonal expectations, etc. 6. In the event of a system-wide outage, provide quicker restoration of power by determining for example whether a prelube cycle is required and how much warm-up is required before placing the engine on line. Te Provide control of various circuit breakers around town to selectively shed load in the event of a generation insufficiency. The load to be shed would be dependent on the season--homes could be priority during the winter and fish processing the priority during the summer. 8. Monitor the distribution system to determine the location of system faults. Switch feeders as necessary to minimize area affected by outage. 5. Allow specific control of the engines in the Orca Plant from the Eyak Power Plant. This system would utilize a small personal computer such as an IBM PC. The computer would be provided with a hard disk and dot matrix printer. The computer would be supplied power from the power plant battery banks through an inverter to provide uninterruptable power. Sensors would be installed on the engines to monitor the necessary parameters. The telemetry between the Eyak and Orca Power Plant would be upgraded to allow load, recloser, and fault current information to be transferred to the Orca Plant. Fault current monitors would be installed at specific locations around town to better locate system faults. A simple telemetry system would be installed to relay this information to the computer at the Orca Plant. Since this represents a developmental effort, expenses will be incurred over a several year period. 61 1985 POWER COST STUDY Year Year Year Lis Purchase computer, printer, power inverter. Purchase sensors for engines in Orca Plant. Develop computer programs for: a. Engine monitoring. b. Maximizing fuel efficiency. c. Engine start and stop. 23 Purchase sensors for Eyak Plant and Eyak Substation. Upgrade telemetry between Eyak and Orca Power Plants. Provide computer control of Eyak Substation. Develop computer programs to: a. Determine available generation and actual system load. b. Selectively shed load, if required, based on developed criteria. c. Selectively add load, if load has been shed due to insufficient capacity. 32 Purchase and install sensors on distribution system to determine fault location. Purchase and install telemetry to input fault information into computer automatically. Develop computer programs to: a. Monitor distribution system loads. b. Pinpoint distribution system faults. c. Minimize system-wide effects of fault and recommend alternative system configuration to bypass fault. It is anticipated that the following expenditures would be required: Year 1 $15,000. Year 2 8,000. Year 3 ¥5,000. 62 1985 POWER COST STUDY (4/24/85 Addendum) Summary of Energy Alternatives Several hydro electric alternatives are under investigation by Cordova Electric Cooperative and the Alaska Power Authority. 1. Silver Lake. This 12MW hydro site would be developed at a 1984 cost of $110,000,000.00. This development would meet all of Cordova's energy needs until after the year 2000. Power would not be available from this project until the early to mid 1990's. The probability of this alternative is considered low due to the high capital costs. Transmission Line Connecting Cordova, Valdez and Glennallen to the Railbelt. This project would meet all of the energy needs of the three communities for the foreseeable future. The cost of this project is $160,000,000.00 in 1984 dollars. Construction of this project is dependent on political considerations and will probably not be completed until after power is available from the Susitna hydro electric project in 1992. Power Creek. Power Creek has been studied for years. There are currently no major projects under consideration on Power Creek. Humpback Creek. Cordova Electric Cooperative is currently investigating the feasibility of a hydro electric development on Humpback Creek. Cordova Electric Cooperative has applied to the Federal Energy Regulatory Commission for a Preliminary Permit to continue their investigation. Appendix A has preliminary cost estimates for two potential developments on Humpback Creek. These cost estimates are extremely preliminary since no water data is available. Development of Humpback Creek would be a run-of- the-river hydro project with no storage. As such, there will be no capacity associated with this project. This project will make power only when water is running in the creek. Without capacity, Cordova Electric Cooperative must provide diesel generation capable of meeting all loads. Humpback 62-A 1985 POWER COST STUDY (4/24/85 Addendum) Creek will displace diesel fuel and to a lesser extent, maintenance costs. Hydro electric developments are very capital intensive and, purpose of this report, were considered: money. therefore, sensative to interest rates. three different interest rates 113 percent, 5 percent, and grant For the TABLE D-1 Case 1 -- 400KW Development Construction Costs Annual KWH Generation Percent of 1984 Generation Fuel Displaced Cost Per KWH: Interest Rate 114% Bus Cost of Power 11¢/kwh Case 2 = 800KW Development Cosntruction Costs Annual KWH Generation Percent of 1984 Generation Fuel Displaced Cost Per KWH: 113% 8.5¢/kwh Interest Rate Bus Cost of Power 62-B $2,000,000. 2,628,000 kwh 14.7 Percent 202,153 gallons 5% Grant 6.3¢/kwh 1¢/kwh $2,500,000. 4,380,000 kwh 24.5 Percent 329,230 gallons 5% Grant 5¢/kwh 1¢/kwh 1985 POWER COST STUDY Vv. SUMMARY AND CONCLUSIONS This study has presented a large number of options available to Cordova Electric Cooperative to enable it to provide reliable electric service far into the future. In past years the Rural Electrification Administration made insured loans to cooperatives for generation projects at an interest rate of approximately five percent. Since this source of funds is no longer available, the interest rate used throughout this study is the current rate charged by the CFC--11.25 percent. Although this study does not consider the margins required by any new debt incurred, the high interest rate used makes it difficult for any capital expenditure to justify itself. Consequently, the lowest cost option is usually the option that requires the lowest capital investment. It should be realized that Cordova Electric Cooperative does not have a currently approved generation loan and the loan application under preparation does not include any money for generation. Generation Options Table S-1 summarizes the costs of each of the generation options under inflation rates of zero and three percent. Under either case, the lowest long term cost of electric energy is supplied under Option I--The "as is" case. This option provides $130,000.00 towards the costs of diking the fuel tanks at the Eyak Plant and any additional storage required at the Orca Plant. Fuel Storage Options Table S-2 summarizes the costs associated with each fuel storage option. The lowest cost solution to the fuel storage problems is to dike the existing 130,000 gallon tank at the Eyak Plant, install the 10,000 gallon "FAA tank" at the Eyak Plant for waste oil and the two Rawlins' tanks at the Orca Plant--The 16,000 gallon tank for fuel storage and the 10,000 gallon tank for lube oil storage. Options A, F and G describe this combination in more detail. The total cost of diking and installation of the four tanks is $133,044. which is very close to the $130,000 used under the generation options in calculating the bus cost of power. Thus, if this combination of options is selected, the power costs calculated above still apply. 63 1985 POWER COST STUDY System Control This option will be required at the time the next engine is installed since the existing control system is inadequate to control three generating units. This option also provides for more reliable power by anticipating problems and bringing additional generation on line when needed. An improved system control unit may put off the need for full time operators in 1988 by being able to make more decisions than is currently possible with the hard wired control system. Cost savings from implementation of an improved control system are difficult to quantify. A one percent improvement in fuel efficiency would pay £or this program. It would be difficult for us to measure a one percent increase in efficiency. The advantages in implementing such a program at this time include the time to develop this system ina reasonable, logical manner and the technical resources to do this project in-house without a lot of consultant time. It is possible that we could obtain a grant to cover a portion of this cost. 64 1985 POWER COST STUDY (4/24/85 Acdendum) TABLE S-1l 1985 POWER COST STUDY BUS COST OF POWER SUMMARY OF OPTIONS Dated: April 24, 1985 OPTION 1985 1986 1987 1988 1989 1990 1994 1992 1993 1994 1995 i996 1997 1998 1999 2000 Inflation rate is zero el 12.64 13.12 12.92 12.93 12.81 12.62 12.37 13.87 13.61 13.47 13.37 i3.20 13.06 12.87 12.64 12.46 #2 iZ.57 16.39 14.09 14.04 13.90 13.66 13.55 14.79 14.48 14.31 14.20 14.01 13.84 13.61 13.35 13.14 33 12.58 14.74 13.25 13.24 13.12 12.91 12.64 14.13 13.85 13.70 13.60 13.42 13.28 13.07 12.83 12.64 24 12.58 17.10 14.74 14.66 14.51 14.25 13.91 15.31 14.98 14.80 14.68 14.48 14.30 14.06 13.78 13.55 &5 12.60 14.88 14.61 14.54 14.39 14.14 13.81 16.15 15.79 15.59 15.46 15.23 15.04 14.77 14.45 14.21 36 1Z.S7. 17594 4.65 14.57 14.42 14.36 13,81 13.42 13.17 13.04 12.95 12.79 12.67 12.4 12.27 12.11 47 127.64 3.99: .13:.75. 13:72 13.59 13.36 13.07 12.96 12.73 12.62 12.53 23.98 13.82 13.59 13.33 12.13 Inflation rate is 3% al 12:91 13:66 13.74 14504. 14.24 14.36 14.42 16.79 16.83 17.01. 17.26 17.44 17.66 17°81 17.95 £8.15 32 12384 - 16.93 14.90 15.13 15.28. 15..34 15.32 87.55 7554 17,769 17.9% 18.05 18.23 16.35 18.44 18.61 43 12385. TS.732 DesF3 4.43 D464 [A076 T4081 27.28 F722 17.41 17.67 127.585 18.97 18.23 18:36 18.56 #4 12-85: v.64 5.56 LSn77 15:95 IS.97 £5294 IS.45 168.52 8.27 18.50 18.03 8.61 28.93 19.01 19.16 #5 12.86 15.45 15:54 15.82 16.03 26.23 16.45 19.68 19.64 19°80 20.05 20.20 20:39 20.49 20.55 20.70 36 12384 17.88 15:46 15:66 15.79 V5 .83 25.79 25.70 215.77 15.97 126.22 16.42 16.64 26583 16:99 17.21 #7 12.91 14.54 14.58 14.84 15.01 15.10 15.12 15.32 15.43 15.65 15.93 18.28 18.48 18.60 18.70 18.87 Note: Underlined numbers represent years with insufficient generation. Option #1--"As Is." Continue using the Eyak Power Plant to back up the Orca Plant. Operate the Eyak Plant during the summer. Move line crew supplies into the Eyak Power Plant building. Install the waste oil boiler. Install adequate dike around bulk storage tank(s). Option #2--Close down Eyak Plant. Sell building and land except substation and city shop. Move Unit #2 to Orca Power Plant. Sell Units #1, #7 and #8. Purchase new 1000KW peaker. Move line crew and materials into Orca Plant area. Build new line building. Remove and scrap oil tanks and miscellaneous buildings on Eyak lot. Option #3--Close down Eyak Plant. Sell building and land except for substation and city shop. Move Units #1 and #2 to Orca Power Plant. Scrap Unit #7 and #8. Move line crew and materials onto Orca Plant lot. Remove and scrap all tanks and miscellaneous buildings on Eyak Plant lot. Option #4--Maintain Eyak Power Plant for line crew materials and storage. Relocate Unit #2 to Orca Power Plant. Sell Units #1, #7 and #8. Purchase new 1000KW peaker. Remove and scrap oil tanks and miscellaneous buildings on Eyak lot. Option #5--Maintain Eyak Power Plant for line crew materials and storage. Move Units #1 and #2 to Orca Power Plant. Scrap Units #7 and #8. Remove and scrap oil tanks and miscellaneous buildings on Eyak Power Plant lot. Option #6--Sells Eyak Power Plant, #1, #2, #7, and #8. Buy new 5,000KW base load unit and installs it in Orca Power Plant. Option #7--Eyak Power Plant maintained as is, purchase 1,000KW peaker for Orca Power Plant. Option tp zu Qa "4 Option 1985 POWER COST STUDY TA IMOAW yY Plant Eyak Eyak Eyak Orca Orca Orca Orca Eyak/Orca (4/24/85 Addendum) TABLE S=2 FUEL STORAGE OPTIONS Capital Cost 3/93,379. 136,125. 64,475. = 0 90,000. 16,665. 23,000. 87,350). GO 00 00 00 00 00 00 Annual Costs $S 13,470.00 19,643.00 9,308.00 =o 13,000.00 2,405.00 (37,.731)500) 13,688.00 i1,426.00 No. of Days 1985 25) 10 10 4 N/A (30yx). 7 (5yvr) -- Dike existing i30,000 gallon tank at Eyak Plant. several 10,000 or 20,000 galion tanks at Eyak Plant. minimal storage at Eyak Plant. situation Orca Plant. 50,000 gallon storage at Orca Plant. 16,000 gallon storage at Orca Plant. 10,000 gallon bulk lube oil tank at Orca Plant. 16,000 gallon bulk tank and 8,0@gallon lube oil Install two 10,000 gallon fuel tanks and 10,000 gallon waste oil tank at Eyak Plant. ==" Install -- Instail -— Current == Tastall -- Install 7 Install == Install tank at Orca Plant. 66 Storage i995 18 - ay N/A ur 1985 POWER COST STUDY APPENDIX A Recurring costs associated with Eyak Power Pl i. Costs whether running or not: Electric usage (fuel only) Phone charges Building maintenance Snow removal Security/Vandalism Depreciation Building 268,863.09 Oil Tanks 46,487.15 Miscellaneous 68,731.91 384,082.15 Interest Charges Pollution Cleanup Additional Maintenance Total Zs Costs only when operating: Night time operator Fuel haul Per Day For full use 120 days + 20 other days per year 3 New cost to stay there: Oil Dike & Containment Depreciation at 3% Debt at 11.25% Annual Cost of Dike 4. Value if sold Gain on sale Cost Depreciation Net Value Less Sold Gain 5. Cost Reduction if Eyak Power Plant were Original standing costs Costs when operating Interest still must be paid Net savings if sold ant: Cost/Year $ 21, 12, 1, 10, 1, 2 600.00 720.00 000.00 250.00 000.00 77731 770.94 ,618. 36 15, 42, 2, 10 $104, $ 166.61 249.03 000.00 000.00 985.64 220.00 55.00 275-00 $ 38, $130, 3, 14, 18, $200, 191 200 sold: $104, 38 384, 138.21 132, 2000.00 he 500.00 000.00 900.00 625.00 525.00 000.00 082.14 758.21 241.79 985.64 ,5900.00 143, 42 $101, 485.64 249.03 236.61 1985 POWER COST STUDY COST ELEMENTS ASSOCIATED WITH UNIT #1 BS Cost to Relocate to Orca Power Plant Addition to Orca Power Plant (1/3 width) $300,000.00 Unit transformer (2500KVA) 20,000.00 Radiator (relocate existing) 15,000.00 Switchgear & engine panel 250,000.00 Electronic governor 20,000.00 Relocate and install 175,000.00 Total cost to relocate 780,000.00 Annual cost to relocate 112,554.00 aa Loss on original installation if moved or sold (undepreciated) 95,200.00 Annual reduction in depreciation 7,230.00 Be Loss if sold Depreciated value (engine only) 142,800.00 Sale price 75,000.00 Loss on sale 67,800.00 Annual reduction in depreciation 10,845.00 1985 POWER COST STUDY COST ELEMENTS ASSOCIATED WITH UNIT #2 Cost to relocate to Orca Power Plant Addition to Orca Power Plant (1/3 width) Unit transformer 3000KVA Relocate existing radiator Switchgear and engine control panel Electronic governor Relocate and install Total cost to relocate Annual cost to relocate Loss on original installation if moved or sold (undepreciated) Annual reduction in depreciation Loss if sold Depreciated value (engine only) Sale price Loss on sale Annual reduction in depreciation $300,000.00 30,000.00 15,000.00 250,000.00 20,000.00 150,000.00 765,000.00 110,389.00 146,132.00 8,768.00 219,198.00 150,000.00 69,198.00 13,452.00 1985 POWER COST STUDY COST ELEMENTS ASSOCIATED WITH NEW 1000KW PEAKER a Cost installed in Orca Power Plant Addition to Orca Power Plant (1/3 width) $ 300,000.00 Unit transformer (1500KVA) 15,000.00 Radiator (new) 35,000.00 Switchgear 200,000.00 Electronic governor 20,000.00 Engine/Generator (new-900 RPM) 650,000.00 Shipping 30,000.00 Mechanical and installation 150,000.00 Total Cost $1,400,000.00 Annual Cost of 1000KW Peaker 255,500.00 1985 POWER COST STUDY COST ESTIMATE ASSOCIATED WITH NEW 5,000 KW BASE LOAD UNIT All figures are 1985 Dollars a4 Cost installed in Orca Plant. 20 foot addition to Orca Plant $ 300,000.00 Radiator (new) 75,000.00 Switchgear/controls 200,000.00 Electronic governor 20,000.00 Engine/Generator (720rpm or less) 2,000,000.00 Installation & mechanical « 255.,000.00 Total Cost $2,850,000.00 Annual Cost of 5,000 KW Unit. Interest at 11.25% $ 320,625.00 Depreciation at 3.18% 90,630.00 Total $ . 411,255.00 1985 POWER COST STUDY COST OF STORAGE SHED NEAR ORCA POWER PLANT (Including inside parking for two vehicles) Building 30 x 30 = 900 sq. ft. at $50/sq. ft. $ 45,000.00 Annual cost 6,300.00 Maintenance and miscellaneous 5,000.00 Lease lot 100 x 100 5,000.00 Total annual cost 16,300.00 1985 POWER COST STUDY COST ELEMENTS ASSOCIATED WITH FUEL OIL STORAGE AT EYAK POWER PLANT OPTION A Install dike and liner, relocate 130,000 gallon tank onto liner. FAA 10,000 gallon tank for waste oil boiler. Note: Cost estimates by Dave Merrill, except items marked with an asterisk (*). Asterisk (*) items are cost estimates by W. D. Bechtel. Install ITEM UANTITY COST Three Storm Drainage Catch Basins 3 5,400.00 8" Schedule 40 P.V.C. 70) Ge Be 1, 750:300 6" Schedule 40 P.V.C. 50 L-F 1,100.00 8" Gate VALVE 1 500.00 6" Gate VALVE & 400.00 Valye Boxes & Restrainers 2 ea. 200.00 XR-5 Containment Liner 7,700 Sif. 15,000.00 Concrete Steps 6 C.¥:'s 375.00 Concrete Slab (8" by 34' by 34') 29 5Cs YS 10,440.00 Relocation of 130,000 Gallon Oil Storage Tank N.A. 8,500.00 Relocation of 12" Culvert N.A. 540.00 Fence 132 L.F. 1,950.00 Excavation 350 C.Y.'s 2,800.00 Backfill 3" Minus Pit Run Gravel £50 (CoYa's 1,800.00 1 1/2" Minus Shotrock 50). Civs's 700.00 4" Schedule 40 Fuel Oil Tranfer Pipe 50 L.F. 1,800.00 6" Transite Oil Sump Line 60 LF. 1,245.00 2.172" "& 2" Piping Exam 130,000 Gallon Tank N.A. 4,900.00 8' by 8' Concrete Unloading Pad 1 ea. 2,500.00 Pipe Supports & Sealer Plug N.A. 765.00 Transfer Oil Pump Housing N.A. 1,100.00 Electrical Work N.A. 4,125.00 Sand 72 €.%.'s 1,000.00 Install 10,000 Gallon Tank For Waste Oil Boiler 5,000.00* Piping for Waste Oil Tank 2,000.00* Steam Line to Heat Waste Oil Tank 2,000.00* SUB TOTAL $ 77,790.00 ADD 5% CONSTRUCTION CONTINGENCIES $ 3,890.00 ADD 15% GENERAL AND ADMINISTRATIVE S..117009.00* TOTAL RECURRING ANNUAL COST $. 93',349300 $ 13,349.00 COST ELEMENTS ASSOCIATED WITH FUEL OIL STORAGE AT EYAK POWER PLANT OPTION B Description: Remove 130,000 gallon storage tank. Push up small (1-2 ft.) berm to make dike around large area (150 ft. by 30 ft.) and install a series of small horizontal tanks. Note: Cost estimates by W. D. Bechtel. Site Preparation: Remove 130,000 gallon tank $ 20,000.00 Install Dike & Liner: 100 yds. fill for berm 750.00 Equipment time to make berm 1,600.00 Fines to set liner on 100 yds. 800.00 Purchase liner (175' x 40' x $2.00) 14,000.00 Install new fuel line to Power Plant 5,000.00 Cover liner with fines 1,600.00 Install new lines to waste oil boiler 2,000.00 Install steam lines to waste oil boiler 2,000.00 Install 8 x 8 concrete filling station 2,500.00 Miscellaneous electrical work 4,000.00 Storm drains for containment area 5,000.00 Total Install Dike & Liner $ 59,250.00 Tanks (See attachment for cost basis): FAA 10,000 gallon tank $ 500.00 Rawlins 10,000 gallon tank 2,000.00 Rawlins 16,000 gallon tank 3,000.00 New 20,000 gallon tank 15,000.00 New 10,000 gallon tank - waste oil 9,000.00 Install five tanks at $5,000 each 25,000.00 Piping & Manifold (five tanks at $2,000 each) 10,000.00 Total Tanks $64,500.00 Total Site Work & Dike $ 59,250.00 Total Tanks 64,500.00 SUB TOTAL $123,750.00 OPTION B (Continued) Contingency, General & Administrative and Miscellaneous $12,375.00 PROJECT TOTAL $136,125.00 RECURRING ANNUAL COST $ 19,643.00 Note: If vertical tanks are installed without foundation, the costs would be approximately the same since the three existing tanks (FAA and Rawlins) could not be used. COST ELEMENTS ASSOCIATED WITH FUEL OIL STORAGE AT EYAK POWER PLANT OPTION C Description: Leave 130,000 gallon tank, but empty it. Make small containment area east of existing tank. Install only tanks on hand. Install 3,000 gallon tank for waste oil boiler. Install FAA and Rawlins tanks for fuel oil. Realize that we have only five days fuel on hand. Containment area would be 60 ft. by 25 ft. Size of berm would be 20 inches high. We would use part of the liner from Dave Rawlins and extend it as necessary. Note: Cost estimates by W. D. Bechtel. Install Dike and Liner: 50 Yds... Fill for Berm $ 375.00 Equipment Time to Make Berm 1,000.00 Fines to Set Liner On 500.00 Purchase Liner 40 x 25 x $2.00 2,000.00 Install Liner (2 men x 2 days x $30) 960.00 Install Fuel Line to Power Plant 5,000.00 Cover Line with Fines 600.00 Install New Lines to Waste Oil Boiler 2,000.00 Install Steam Lines to Heat Waste Oil Tank 2,000.00 Install 8 ft. by 8 ft. Filling Station 2,500.00 Miscellaneous Electrical 3,500.00 Storm Drains for Containment Area 4,000.00 Total Install Dike & Liner $ 24,435.00 Tanks: FAA 10,000 gallon tank $ 500.00 Rawlins 10,000 gallon tank 2,000.00 Rawlins 16,000 gallon tank 3,000.00 Existing 3,000 gallon tank -0- Install four tanks at $5,000. 20,000.00 Piping and Manifold (Three tanks at $2,000.) 6,000.00 Total Tanks $ 31,500.00 A-10 OPTION C (Continued) SUMMARY Dike and Liner $ 24,435.00 Tanks 31,500.00 SUB TOTAL $ 55,935.00 Contingency, General & Administrative and Miscellaneous 8,540.00 TOTAL $ 64,475.00 RECURRING ANNUAL COST $ 9,308.00 A-11 COST ELEMENTS ASSOCIATED WITH FUEL OIL STORAGE AT ORCA POWER PLANT OPTION E Note: Cost estimates by W. D. Bechtel Rock Removal/Site Preparation Fill Material for Berm (200 yds) Equipment Time to Make Berm Liner 30 ft. by 30 ft. at $2.00 Tank--Erected on Site Piping and Mechanical Sub Total Contingency, General & Administrative, And Miscellaneous TOTAL PROJECT COST RECURRING ANNUAL COSTS $ 8,000.00 2,000.00 2,000.00 1,800.00 60,000.00 __ 5,000.00 $78,000.00 $12,000.00 $90,000.00 $13,000.00 COST ELEMENTS ASSOCIATED WITH FUEL OIL STORAGE AT ORCA POWER PLANT OPTION F Note: Cost estimate by W. D. Bechtel Cost of Tank Mount Tanks Necessary Piping Fill To Make Dike Equipment Time to Make Berm Fines To Set Liner On Purchase Liner (30' x 30' x $2.00) Install Liner Cover Liner with Fines SUB TOTAL Contingency, General & Administrative, And Miscellaneous TOTAL PROJECT COST RECURRING ANNUAL COSTS A-13 $ 3,000.00 5,000.00 2,000.00 500.00 800.00 500.00 1,800.00 750.00 $ 800.00 $15,150.00 $_ 1,515.00 $16,665.00 $ 2,405.00 COST ELEMENTS ASSOCIATED WITH LUBE OIL STORAGE AT ORCAL POWER PLANT OPTION G Note: Cost estimates by W. D. Bechtel Cost of 10,000 Gallon Tank Construct Dike with Liner Mount Tank Run Oil Pipe From Tank to Power Plant Run Hot Water from Power Plant to Tank Construct Filling Station (Includes Pumps) Other Changes to Piping at Orca Plant SUB TOTAL Contingency, General & Administrative and Miscellaneous Capital Costs ANNUAL RECURRING COSTS Savings: Clingage Drum Handling Lube Oil Price Savings Total Savings Net Annual Savings $2,000.00 5,000.00 5,000.00 2,000.00 2,000.00 3,500.00 _1,000.00 $20,500.00 __ 2,500.00 $23,000.00 3,519.00 2,000.00 3,300.00 3,750.00 $ 9,050.00 $ 5,731.00 1985 POWER COST STUDY (4/24/85 Addendum) COST ELEMENTS ASSOCIATED WITH FUEL OIL STORAGE AT ORCA POWER PLANT AND EYAK POWER PLANT OPTION H Note: Cost estimates by W. D. Bechtel. New 10,000 gallon tank (waste oii) $ 9,000. Rawlins' 10,000 gallon tank (Eyak) 2,000. FAA 10,000 gallon tank (Eyak) 500. Rawlins's 16,000 gallon tank (Orca) 3,000. New 8,000 gallon tank (lube oil) 4,000. Mount tanks (5 at $5,000. each) 25,000. Fuel oil piping at Orca Plant i,000. Expanded fuel containment 4,350. Lube oil containment area 4,000. Lube oil piping and hot water piping 4,000. Filling station (includes pumps) 3,500 Lube oil piping changer (Orca) 1,000. Containment area at Eyak Plant (Uses Rawlins' liner) 2,500. Fuel piping at Eyak Plant 4,000. Waste oil piping 2,000. Steam to heat waste oil 2,000. Filling station (includes pumps) 3,500. SUB TOTAL $ LPEL Continuing General & Administrative and Miscellaneous s 12,000, s 87,3505 Recurring Annual Cost: Thirty Year Eyak Plant Life $ 12, 738: Five Year Eyak Plant Life 20,476. A-14-A 1985 POWER COST STUDY (4/24/85 Addendum) PRELIMINARY COST ESTIMATE HUMPBACK CREEK HYDRO ELECTRIC DEVELOPMENT Diversion Dam - 60 ft. wide by 6 ft high, wood crib dam with trash rack, sluice gate and intake structure: 1,000 ft. of 24 inch plastic pipe, installed (includes one trestle to cross creek): 400KW Hydro turbine, generator, Switchgear, etc. installed: 30 ft. by 30 ft. Metal building with concrete water structures: Power line to Cordova (Three miles concentric neutral installed): General and Administrative Contingency Total Fixed Costs: Interest Rates 113% Interest $225,000. Depreciation at 2% 40,000. Total Fixed Costs $265,000. Variable Costs: Maintenance 1¢/kwh Generation: Installed Capacity: Average Generation: Total KWH GEnerated: 200,000. 250,000. 400,000. 300,000. 150,000. 200,000. 500,000. $2,000,000. 5% $100,000. 40,000. $140,000. 1¢/kwh Grant 1¢/kwh 400 KW 300 KW 2,628,000 kwh Percent of 1984 Generation: Maintenance Costs: Fuel Displaced A-14-B $ 14.7% 26,280. 202,153 gallons 1985 POWER COST STUDY (4/24/85 Addendum) COST ESTIMATE FOR 800 KW INSTALLED CAPACITY 500 KW AVERAGE GENERATION Cost: $2,500,000. 114% 5% Grant Interest $281,250. $125,000. --- Depreciation 50,000. 50,000. --- Total Fixed Costs $331,250. $175,000. --- Total kwh Generated: 4,380,000 kwh Percent of 1984 Generation: 24.5% Maintenanct Costs: $ 43,800. Fuel Displaced: 329,230 gallons A-14-c SUMMARY 10,000 Gallon Tank Cost Horizontal $2,807.00 Vertical $3,037.00 20,000 Gallon Tank Cost Horizontal $5,344.00 Vertical $5,456.00 50,000 Gallon Tank $1.00 to $1.50 per gallon, OF TANK COSTS Weight Freight 8250 $6,127.00 5), 550 $6),127<-00 weight ’ 9,630 se 83t50 $6,921.00 includes on-site erection. B-ES 1985 POWER COST STUDY APPENDIX B POWER PLANT STAFFING LEVELS The closure of the Eyak Power Plant is projected to save $5,500 in personnel costs. This is based upon a plan to provide 16-hour-per-day, 7-days-a-week watchstanders at the Orca Power Plant during the winter and round-the-clock coverage at the Orca Power Plant during the fishing season. The Eyak Power Plant must have round-the-clock coverage anytime it is operated. To provide 24-hour-per-day coverage requires approximately five people: 5 people at 40 hours/week = 10,400 hours/year Less sick leave/vacation, etc. = 1,200 hours Hours available 9,200 hours Hours in year _8,760 hours Excess 440 hours Some of the "excess" is used to rotate watches, the rest is used for maintenance purposes. To provide 16-hour-per-day coverage requires three people: 3 people at 40 hours/week = 6,240 hours/year Less sick leave/vacation, etc. = 720 hours Hours available 5,520 hours Hours operating (16 x 365) 5,840 hours Shortage 320 hours The shortage hours are covered by maintenance staff. Thus, the proper staff to provide full-time operations coverage would be 6-5 operators plus one mechanic. To provide 16- hour-per-day coverage, the proper staff would be 4-3 operators plus one mechanic (who would stand watch 1 day per week on the average). We have recomended a power plant staff of 5. Since our summer loads are considerably more than our winter loads, we schedule our engine maintenance during the winter. We also operate the Orca Plant exclusively during the winter. During the fishing season, the Eyak Plant is operated full time and the Orca Plant is used for peak loads. During the winter months, a staff of 5 provides 3(+) operators and 2(-) maintenance personnel. During the summer months, all 5 stand watches to provide round-the-clock coverage. The excess hours during the summer are used for’ routine maintenance. 1985 POWER COST STUDY The Orca Plant is designed to operate automatically during normal conditions--the plant will start and stop the engines as needed. If there is one engine on line and it fails for any reason, the second engine will start automatically and power will be restored 7 minutes later--IF THE LOAD IS WITHIN THE CAPABILITY OF THAT ENGINE. During the summer, we operate two base load units up to 20 hours per day. To restore power in this case requires manual intervention. the system was not designed to operate automatically between plants. During the summer, we cannot afford the time necessary to get someout out of bed to restore power. This could require up to one hour. Whichever plant is operated during the summer will require full-time watchstanders. A fairly simple computer control system would allow more intelligent decisions to be made automatically. Such a system could, for example, determine the generation capacity still running and selectively shed load, keeping the critical loads operating until another engine could be started. This has been under consideration for several months, but is outside the scope of this report. We have recommended a permanent staff of 5 people in the power plant to provide full-time summer’ watchstanding coverage and adequate maintenance staff in the winter.