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HomeMy WebLinkAboutFire Lake Energy Audit 1989MEMORANDUM RECEIVED JUL 2 7 1989 ALASKA ENERGY AUTHORITY June 23, 1989 Brent Petrie, Acting Executive Director Nlaska Fower Authority FaQs | (Box) | 190869. Anchorage, Alaska 99519 RE: COMMERCIAL EWERGY AUDIT OF FIRE LAKE RECREATION CENTER Dear Mr. Fetrie: As the owners of the Fire Lake Recreation Center, the Municipality of Anchorage is extremely interested in reducing any operating costs associated with this facility. At the current time we are reviewing a plan presented by Waukesha of Alaska that would utilize one of their natural gas powered generators to provide electrical Power for the refrigeration system at the facility. By way of this letter, we are requesting a commercial energy audit to determine if we qualify for State funding to proceed with this proposed project. The audit would also provide us with a independent check of the calculations previously completed by Waukesha of Alaska. The ultimate intent would be for the energy savings dollars received from the installation of the gas generator to be used towards the Payback of the Capital costs for the generator, and reduction of annual maintenance costs at the Fire Lake Recreation Center. ‘ If this pilot program is as successful as we expect, then we will consider implementing similar eneray saving programs in other Municipal owned facilities. If you have any specific questions on this subject, I can be reached at 786-8339. CORRESPONDENCE DISTRIBUTION ACLION: - [ NF RMATION: AOS Mus ; Felina i. epresentative ! laska Sincerely, . Lin S. Garrison Contract Manager ccs Sam Cotton, District 15 John Haxby, Waukesha of John Rodda, Fire Lake Re F Manager DATE DUE: FLENERGY/gem CONTRACT MANAGEMENT DIVISION MEMORANDUM RECEIVED 7 1989 June , 1989 JUL 27 1 ALASKA ENERGY AUTHORITY Brent Petrie, Acting Executive Director Alaska Fower Authority P.O. Box 190869 Anchorage, Alaska 99S1L9 RE: COMMERCIAL ENERGY AUDIT OF FIRE LAKE RECREATION CENTER Dear Mr, Felries As the owners of the Fire Lake Recreation Center, the Municipality of Anchorage is extremely interested in reducing any operating cast associated. with this facility. At the current time we are reviewing plan presented by Waukesha of Alaska that would utilize one of =f natural gas powered generators ta provide electrical power for refrigeration system at the facility. Ey way of this letter, we are requesting a commercial energy audit to determine if we qualify for Gtate funding to proceed with this proposed project. The audit would also provide us with a independent check of the calculations previously completed by Waukesha of Alaska. The ultimate intent would be for the energy savings dollars received from the installation of the gas generator to be used towards the payback of the Capital costs for the generator, and reduction of annual maintenance costs at the Fire Lake Recreation Center. If this pilot program is as successful as we expect, then we will consider implementing similar energy saving programs in other Municipal owned facilities. If you have any specific questions on this subject, I can be reached at 786-8329. CORRESPONDENCE DISTRIBUTION RMATICN: Sincerely, ‘ Lin S. Garrigean Contract Manager epresentative | laska cer Sam Cotton, District 15 John Haxby, Waukesha of John Rodda, Fire Lake Re fer Manager DATE DUE: FLENERGY/gem By ae Legislative Inrormation Orrice DA : Office - (907) 561= Fax - (907) 562-4376 ( ) } or 4 ( ) TO: Assur Eslee Gu ATTN: Mage.Gic FAX: 5¢/-= PHONE: DG/(-7877 ase FROM: “RED. Comen / KEal PHONE: _56/ - S459 INSTRUCTIONS: . > ! SH a Commence te. foo SENT: Date QI 9/139 time_++: S30 DISPOSAL OF ORIGINAL: Discard Hold for Pickup NUMBER OF PAGES: 3 (NOT counting cover sheet) TRANSMITTED BY: \\ DATE REC'D: Waukesha Alaska Corporation PO Box 111098 Anchorage, Alaska. 99511 (907)345-6800 August 1, 1989 Fire Lake Recreation Center 13701 Old Glen Highway Eagle River, AK. 99577 Attn: John Rodda Dear John Subject: Fire Lake Cogeneration Pursuant to our meeting yesterday, Waukesha Alaska Corporation has completed the economic and cost analysis for a cogeneration plant at the Fire Lake Recreation Center. We estimate that the installed cost of the system would be $50 to $55,000, Enclosed, you will find a copy of my calculations for the expected savings that a cogeneration plant (generating electricity for only the compressor motors) would generate for your facility. It ls expected that cogeneration will provide energy cost savings in the $2700/month range. Most of the savings will come through decreased electrical loads, and recapture of the waste heat. While the savings are significant for the end user at the present Matanuska Electric Association electrical rates, from the investor standpoint it has risk attached. This project is not risky from the technical side, however, from the facility consumption side, complete use of the heat is essential to make the payout viable as an investor. We are therefore not prepared at this time to make the initial investment at the Fire Lake Recreation Center. Factors that would enhance investor project feasability, would be an increase in the electrical utility rates to $.085 to $.10/KWH, and/or a decrease in the gas rate for this cogeneration project. !n addition, if the local electric utility buyback rates approached the present public sale rates, then the project would cash flow nicely. Cogeneration for the Fire Lake Recreation Center Is an excellent energy conservation measure. With increasing utility costs, on site utilization of waste heat from electricity production makes economic sense. In an effort to better define the risks of the project, we are planning to test the cogeneration system on two of our own facilities in the Anchorage bowl. This will give us a chance to identify any operational difficulties, and gather data for our own analysis for potential future projects(yours). It is expected that a substantial amount of data will be available by late December for analysis and comparison to our economic analysis on the Fire Lake Recreation Center. We can then reevaluate the Fire Lake Recreation Center as a.potential investor owned cogeneration site. If the testing and analysis is favorable, we would expect to proceed with the project in the spring or summer of 1990. Thank you for your patience during our analysis of your site for cogeneration. We will keep in touch with you regarding our project. Please contact me if you have any questions. Ve ly yours Jotwt E Hdxby Coapmoration qe [00 KF dachre weiter ¢Z tac (lang chica popomeed assmccated wth Me BERS a = Bl, 042 Kerttfn x, 056Yucy > 47q2 2 792 as f No LE. Cost oe _ $e, OO P6 wn 21, « BN2 Ct» LE Ness Tocco s « #7177 ab Demand 127 wo x Gi34h "seme Total hacowe = O87 it 1, 263, 000 Bts £ Zi Wes - ’ ie eat k O.42DaY %, bux PAY md te Maintenance ecewes/Spure (ite) liber #3) 6¥¢2 tet iz a «= (020 Totel Expttuse a 346 Net WConme = DW fous ie J Llled tod 22*56,0e0 They Maal Roget fod sang d tor Ad mots, hs fog 0°86, pece Ditaruis, We Cam Con Ynve eka o ppnat— ae ' Neve Cowper, Qorerer Alaska Power Authority mae os annie TELECOPY (ANCHORAGE Telecopy Phone No, (907) 663-8684) (JUNEAU Telecopy Phone Ne. (907) 468-3767) TELECCPY SENT TO: NAME OF COMPANY: COMPAMY ASORESS: TELECOPY PHONE NUMBER: St [-8s84 Senoen: “Becer. Vettes TELerMone wunpeR:; GS-35 7S — cuange cove: NUMBER OF PAGES SENT: (o __ weauoINe THIS COVER Pass DATE SENT: TF YOU 00 NOT RECEIVE AbL OF THIS TELECOPY PLEASE CALL: i ( i sy tentn herage SPECIAL INSTRUCTIONS: Lig s a preposak Sam Fire Lake Recreation Center 7 The Fire Lake Receration Center in Eagle River houses one of only os four Olympic size ice rinks in the nation. The $5.5 million facility opened it's doors in 1984 and today serves some 60,000 Alaskans annually. Users come from as far away as Girdwood to the south and Big Lake to the North. The facility recently hosted several of the games in the World Junior Hockey Championships in which teams from across the world participated. I am delivering to the committee today a proposal to place an on-site electrical generation system at Fire Lake Recreation Center. The proposal includes replacement of the center's two 100 horsepower electric motors with a 900 to 1200 cubic inch natural gas fired engine. The electric motors presently in place are used for refrigeration. The conversion of the refrigeration units from electricity to gas could cut the annual energy costs at the center in half. The average monthly energy bill for the facility for 1988 was $6100. That could be reduced to about $3000 if both electric motors ate replaced with gas motors. About one third of the estimated savings would result from using "waste heat" captured from the natural gas fired motors The cost of converting the two electric engines to natural gas is approximately $65,000 cach. The units would be installed at an interval that ensures the quality of service is not diminished. The conversion would pay for itself in roughly three years, +- I recommend the committee consider funding the proposed conversion at Fire Lake Recreation Center with an appropriation from the Railbelt Energy Fund. This project is an exellent example of how the fund can be used to lower the energy costs in the Railbelt. Additional Facts The Fire Lake Rec Center uses approximately 50,000 kilowatt hours of electrictricity each month. The total annual energy costs (electricity and gas) for the Fire Lake Rec Center in 1988 was $73,200 ($63,000 for electricity) The rec center now has two 100 hp electric engines used for refrigeration. Rodda wants to replace one of those engines for a test period to ensure the system works properly before replacing the other engine. Replacing one of the two slectric engines with a natural gas engine would cut the rec centers monthly energy bill by about $1600. Existing Gas, Electrical Consumption, and Wy Ys 084 Electrical Demand MY RISES: ; Costs-MONTHLY MAZZA CET A Y Total js 6431 Proforma Gas. Electrical Consumption, Electrical Demand, and Maintenance Costs-MONTHLY GHyyywyy. MLL, MG, Total is 4867 Exieting monthly KWH, and motor demand coats. Gas is amount equivalent that will be recovered from engine. Total cost to Rec Center, existing, is $3942/month, based on 19.82 hours per day compress. operation, Cost for gas to operate engine, and maintenance parts. Heat recovery of $710 In equivalent gas is free. Tolal cost to Rec Center le $2170/month, based on average 19.32 hrsday of compressor operation. P27] | MONTH! FLY MOTOR DEMAND ee rao] Gas CosvMontn Savings | 709-50 is 708 af PO a ee ee faa] —ssosd|_ CS Estimated Monthly Savings 824 Bap |