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
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INSTRUCTIONS: . > ! SH a
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SENT: Date QI 9/139 time_++: S30
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NUMBER OF PAGES: 3 (NOT counting cover sheet)
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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
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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 |