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HomeMy WebLinkAboutTeller Draft Report Reconnaissance Study of Energy Requirements & Alternatives 1982Teller ALASKA POWER AUTHORITY DRAFT REPORT RECONNAISSANCE STUDY OF ENERGY REQUIREMENTS. AND ALTERNATIVES (Teller) March 1982 Alatna Atkasook Brevig Mission Diomede Galena Golovin Gustavus Karluk Koyuk New Chenega Ruby St. Michael Shageluk Shismaref Stebbins Teller Unalakleet Yakutat ACRES AMERICAN INCORPORATED 1577 C Street, Suite 305 Anchorage, Alaska 99501 Telephone (907) 279-9631 DRAFT VILLAGE SPECIFIC REPORT P, TELLER INQ A fe TP DR AET TELLER P-1 A_- SUMMARY OF FINDINGS AND RECOMMENDATIONS After an analysis of the information gathered on the village of Teller, the recommendations which are most appropriate to the existing village conditions and possible future developments are as follows: ie In light of the uncertainty surrounding the status of the village of Mary's Igloo, an approach of wait-and-see may be the most appropriate for Teller. (The original Mary's Igloo was destroyed in a flood some years ago and the inhabitants were moved to Teller. Many of the original Mary's Igloo residents still want to move back to a new village site.) About half of the present Teller population was originally from Mary's Igloo. If a new Mary's Igloo is ever built, the out-migration from Teller could decimate its population base, leaving a virtual ghost town. It appears that a wind energy system is economically attractive in Teller compared to a continuation of the existing system or an expansion of its waste heat system. However, to more fully develop the economics and performance of such a system, more detailed studies are needed. The first step is to install a sophisticated anemometry system which would provide data on the frequency distribution of wind speeds. An analysis of this information would allow a more reliable estimate of the wind turbine's plant factor, a critical element in the economic viability of a wind turbine. The cost trends of wind systems must be closely monitored to observe changes in system cost as more of these units are installed. A summary of the costs of electricity supplied by those alternatives studied for Teller is given in Table 1. A projection of costs of various fuel resources used in Teller is shown in Figure 1. IMIR A [EF 1 LIV i | COMPARATIVE ESTIMATED ELECTRICAL ENERGY PRICES FOR BASE CASE PLAN AND ALTERNATIVES TABLE 1 i Energy i: Base Case Plan Alternative "A" Alternative "B" Production i Energy Price Energy Price Energy Price Year (Mh) i_($/kWh) ($/kWh) ($/kWh) 1982 300 ' 0.50 0.50 0.50 1983 310 ' 0.50 0.50 0.50 1984 315 { 0.50 0.50 0.50 1985 320 ! 0.50 0.50 0.50 1986 330 \ 0.49 0.49 0.49 1987 330 ( 0.50 0.50 0.50 1988 330 | 0.51 0.50 0.50 1989 330 | 0.51 0.51 0.50 1990 330 0.52 0.51 0.50 1991 330 0.52 0352 0.50 1992 330 / 0.53 0.52 0.50 1993 330 | 0.54 0.52 0.51 1994 330 ' 0.55 0.53 0.51 1995 330 ! 0.55 0.54 0.51 1996 330 0.56 0.54 0.51 1997 330 0.57 0.55 0.51 1998 330 0.58 0.55 0.52 1999 330 0.58 0.56 0.52 2000 330 0.59 0.57 0.52 2001 330 0.60 0.57 0.52 LAV ad 2-d WATTAl HCLLCN r-yv DIESEL _W/ WASTE HEAT | 0.55 0.35 6 ° o Oo o °o 0,25 OIL AS USED AT =0.35 ENERGY COST ($/i0® BTU) N“ °o QD oO Oo Ol °o "ENERGY COST (&/KWh) oO N ° OIL AS USED AT 920.65 1980 1985 1990 1995 2000 TELLER - FIGURE | a IDIR A IF 1 DR A\ T TELLER P-4 B - DEMOGRAPHIC AND ECONOMIC CONDITIONS B.1 - Location Teller is located on Port Clarence, 72 miles north of Nome. B.2 - Population Date: 1970 1980 Population: 220 212* Of the 1970 population figure of 220, 87 percent were Kawerak Eskimo. The 1980 U.S. census reports 212 residents in Teller. B.3 - Economy The Teller economy is based on subsistence food harvest supplemented by part-time wage earnings. The city of Teller employs a maintenance man, two alternate health aides, a clerk and a secretary. The Mary's Igloo Native Corporation and the Teller Native Corporation are both located in Teller; each has one employee. The Norton Sound Regional Health Corporation employs a full-time health aide, and the REAA school employs four teachers, four aides and four other workers (janitors and cooks). The Teller Commercial Company is a family owned business employing two additional people outside the family. The Teller Power Company and Mukluk Telephone are also family-owned enterprises headquartered in Teller. Mukluk Telephone hires part time workers as needed. Teller Air Service employs a pilot. A postmaster works for the U. S. Postal Service. The State _Department of Transportation and Public Facilities-hires. three workers in the summer; one of these is under contract during the winter to maintain the airport. The city employs a clerk, secretary, maintenance person and two alternate health aides. There is some seasonal mining work. Mineral deposits in the area include silver and gold placer deposits, iron on the Sinuk River and graphite in the Kigluaik Mountains. A mining complex at Lost River and graphite in the Kigluaik Mountains. A mining complex at Lost River, 25 miles northwest of * Includes Coyote Creek section of Teller developed in 1976, two miles from village center. INR A [ETP DR A\ [F T TELLER P-5 Teller, has deposits of fluorite, tungsten, tin, beryllium, arsenic and kaolinite. Offshore oil and gas lease sales are proposed in late 1982 for an area of Norton Sound north of the Yukon Delta. Many Native residents of Teller are shareholders in the Teller Native Corporation, which was incorporated in accordance with the terms of the Alaska Native Claims Settlement Act (ANCSA). Because many of the Teller residents have moved to Teller from other villages, some of the residents are shareholders in other village corporations. B.4 - Government Teller was incorporated in 1963 and is a second class city. The city government functions under the authority of a mayor elected from the seven-member city council. Regular elections are held annually in December. Teller is a participant in the State of Alaska's Revenue Sharing Program and received $16,147 in state revenue sharing funds for the fiscal year 1980. As a second class city, Teller is able to assume diverse powers, including levying taxes. Voters in Teller approved a 3 percent sales tax, which is the only city tax levied in the village. For nonmunicipal programs and services, the Native population is represented by a seven-member IRA council. The council administers a variety of federal programs including local health care, employment assistance, college assistance, social services and tribal operations. In Teller, many of these services are provided by Kawerak, Inc., and the Norton Sound Health Corporation. B.5 - Transportation Teller has a highway link to Nome and is easily accessible by sea and air. The state owns a 2,600 foot northeast/southwest gravel runway located on a hill above Teller. The runway accommodates single engine and some multi-engine aircraft. During the winter many aircraft land on a frozen pond adjacent to the city. Wien Air Alaska and Munz Northern Airlines both operate scheduled flights from Nome to Teller, and Teller Air Service owns two aircraft and provides charter service throughout the Seward Peninsula. Bering Air, Seward Peninsula Flying Service and Foster Aviation provide charter and freight service from Nome. There is no regular barge service to Teller. Most residents own skiffs to travel to fishing and hunting camps along Port Clarence, Grantley Harbor, Imuruk Basin or up the Kuzitrin River. Grantly Harbor is generally DRAFT DIR A\ [= T TELLER P-6 ice-free from early June to mid-November. Port Clarence is a natural harbor which has been considered as a site for a deep water port. The Nome/Teller road, also known as State Route 131, is a 72 mile gravel road completed in 1966. In summer, supplies are trucked to Teller from Nome. The road to the airport and to Coyote Creek is maintained during winter, but the Nome/Teller road is not. Winter travel is primarily by snowmachine, and winter trails radiate from Teller to Brevig Mission, Mary's Igloo and Nome. The road from Teller to Coyote Creek is plowed, and some vehicles operate in the winter. MIR A [FP DIR A F T TELLER P-7 C - COMMUNITY MEETING REPORT Field reconnaissance personnel arrived in Teller in the afternoon of January 12, 1982. A meeting was scheduled for the evening of the 13th, and took place in the high school multipurpose room. The meeting was well attended with an audience of about 17 persons. Field personnel described the reconnaissance project and asked meeting attendees to describe their ideas on the energy needs and resources of the Teller area. Some people mentioned that the electric service in Teller had been quite reliable during the past year. There was some discussion regarding the billing practices of the local utility company, Teller Power Co. Apparently a very large number of families have not received a bill from the utility in over two years. Some interest was expressed in wind energy. Field personnel spent some time discussing the 30 kW wind project at Unalakleet. The State Division of Energy and Power Development plans to install a small (2 to 10 kW) wind turbine at Teller during the summer of 1982. The public meeting lasted about 45 minutes. NR A (ET DR A [F T TELLER P-8 D - EXISTING POWER AND HEATING FACILITIES Teller is served with electric power by a private utility, the Teller Power Company (TPC). TPC presently has the following units installed: One 100 kW diesel One 155 kW diesel One 210 kW diesel The owners of TPC have maintained these machines extremely well. They pointed out that the 155 kW unit had run continuously for the past five years (except to be shut down for oil changes and minor maintenance) with no overhauls; a record rarely equaled in the operation of Alaska bush generating facilities. One contributing factor to the unusually long service of this machine is likely to be the foundation provided in the generator building. There is a large reinforced concrete pedestal which has steel pipes embedded in it for supporting the diesel sets. Few other bush facilities have concrete foundations. Those which do generally have better service records for their diesels. The village load is presently at about the maximum output for the 155 kW machine. Practically all home heating is by oi]. Only about two or three families use wood. All commercial and government buildings are oil heated. DRAFT DIR A\ [F T TELLER P-9 E - ENERGY BALANCE In Teller, as in most other villages studied, the majority of the energy used was consumed in space heating. Teller had the unique distinction among Seward Peninsula/Norton Sound communities of having no one in the village used wood for space heating. The residents of Brevig Mission, four miles away, use wood extensively to supplement their fuel oil. All of Teller's energy needs are met with fuel oil and gasoline. Data gathered by field staff shows the following energy uses: TABLE 2 ENERGY USE PROFILE Total Heat Content 9 Type of Fuel Cost End Uses Quantity (10 Btu) Fuel 0i1 $2.00/gal Space Heating 75,000 gal 10.3 (Residential) Water Heating Cooking Fuel Oil $2.00/gal Space Heating 26,000 gal 3.5 (Schools) Water Heating Fuel Oi] $2.00/gal Power Generation 30,000 gal 4.1 (Power Gen.) Motor Gasoline $2.25/gal Transportation 17,000 gal Zod DIR A fF TT BRUNING 44 132 42222 ENERGY RESOURCE FUEL OIL (17.9) GASOLINE (2.1) NOTE: ALL UNITS IN 0 BTU/ YR. Ht | END USE RESIDENTIAL SPACE & WATER HEATING AND COOKING (10.3) SCHOOL SPACE AND WATER HEATING (3.5) POWER GENERATION (4.1) SYSTEM LOSSES (6.7) USEABLE HEAT (3.6) USEABLE HEAT (2.3) SYSTEM LOSSES (3.2) : | FIGURE 2 TRANSPORTATION (2.1) TELLER ENERGY BALANCE (1981) ACRES AMERICAN INCORPORATED DR A FT TELLER P-11 F - ENERGY REQUIREMENTS FORECAST F.1 - Capital Projects Forecast F.1.1 - Scheduled Capital Projects {a} 1982 - Enlarge the multipurpose room in the school (b) 1982 - Extend the sea wall (c) 1982 - 2-10 kW wind generator (DEPD project) F.1.2 - Potential Developments None F.1.3 - Economic Forecast Teller has a subsistence economy with a few wage earners. No resource development, tourism or other industry is anticipated in Teller. If oil is discovered in Norton Sound in 1983, there should be general economic growth throughout the region. F.2 - Population Forecast No expansion of economic activity is forecast in Teller. The population declined from 1970 to 1980 even though 30 new homes were built 2 miles away at Coyote Creek in 1976. Therefore, the population table below is based on no additional growth. 1960 1970 1980 1986 1990 1996 2001 Population N/A 220 212* 212 212 212 212 #Residences N/A 66 85** 85 85 85 85 #Commercial N/A N/A 2 2 2 2 2 #Gov't/Other N/A N/A 13 13 13 13 13 * Includes Coyote Creek ** Local estimate and includes Coyote Creek IMIR A [EP DR A FT TELLER P-12 F.3 - Electric Energy Forecast Inasmuch as the future of Teller appears to be uncertain and no growth in either population or the economy is foreseen, it seems likely that there will be little change in the energy consumption of the residents. About the only factor which will influence residential consumption is the introduction of television to the village. Late in 1981, network -television became available to Teller residents. It is expected that televisions will become more common in households through the year 1986, at which time they will have reached a saturation level and no further growth in per-residence electrical energy use will be noted. It is estimated that the "typical" Teller residence will consume about 2,200 kWh annually by 1986 and remain constant thereafter. The consumption of other loads in Teller is forecast to remain constant for the term of the study. The expected electrical energy uses of non-residential customers are shown in the table below: Loads kWh per year kW Demand School 29,000 20 Store 22,000 5 City Offices 4,000 2 Telephone Co. 44,000 5 Misc. Comm'l. and Government 2,000 each x 6 = 12,000 3 each x 6 = 18 110,000 50 A summary of the village electrical use growth throughout the study period is given in Table 3 and Figure 3. F.4 - Thermal Energy Forecast All of the residential heating is done with oil, as wood is scarce in the Teller area. It is estimated that the "typical" Teller home uses about 900 gallons of fuel oi] each year for heating. The school is the largest single user in the village, consuming an estimated 26,000 gallons of fuel oi] annually. The remainder of the space heating requirements are taken up by the various commercial and governmental consumers. A summary of that heat use and future projections are given on Table 4. DR A FT Lao vad TABLE 3 VILLAGE ELECTRIC ENERGY USE FORECAST Residential Schools Other Total . Year kW ~— Mh, “kek ee Mh Two oe a a | ne ‘ae Nn 1982 110 190 : 20 29 30 81 160 300 1983 110 200 20 29 30 81 160 310 1984 110 205 20 29 30 81 160 315 1985 110 210 20 29 30 81 160 320 1986 110 220 20 29 30 81 160 330 1987 110 220 20 29 30 81 160 330 1988 110 220 20 29 30 81 160 330 1989 110 220 20 29 30 81 160 330 1990 110 220 20 29 30 81 160 330 1991 110 220 20 29 30 81 160 330 1992 110 220 20 29 30 81 160 330 1993 110 220 20 29 30 81 160 330 1994 110 220 20 29 30 81 160 330 1995 110 220 20 29 30 81 160 330 1996 110 220 20 29 30 81 160 330 1997 110 220 20 29 30 81 160 330 1998 110 220 20 29 30 81 160 330 1999 110 220 20 29 30 81 160 330 2000 110 220° 20 29 30 81 160 330 2001 110 220 20 29 30 81 160 330 a Lav adG €T-d YATIaL TELLER P-14 1000 (UMW) NOILdWNSNOD ADYANS o oo F&F oF Oo a © $$ &®& $¢ 8 & € o 1995 © 2000 VILLAGE POWER DEMAND (KW) 1gg0 VILLAGE ENERGY CONSUMPTION (MWh) 1985 Ig80 (My) ONVW3Q i TELLER -FIGURE 3 A907 A IEP IDIR TELLER P-15 DRAFT TABLE 4 NET THERMAL REQUIREMENTS Electricity Residential Schools Other Total Year (10%Btu) (1o%Btu) _—(10%Btu) —(10°Btu) ~—(10°Btu) 1982 1.0 3.6 2.3 l2 8.1 1983 1.0 3.6 2.3) | 12 8.1 1984 1.1 3.6 2.3 1.2 8.2 1985 1.1 3.6 2.3 1.2 8.2 1986 1.1 3.6 2.3 1.2 8.2 1987 1.1 3.6 2:3 1.2 8.2 1988 1.1 3.6 2.3 1.2 8.2 1989 1.1 3.6 2.3 1.2 8.2 1990 1.1 3.6 2.3 1.2 8.2 1991 Tot 3.6 2.3 1.2 8.2 1992 1.1 3.6 2.3 1.2 8.2 1993 1.1 3.6 2.3 L2 8.2 1994 1.1 3.6 2.3 1.2 8.2 1995 had 3.6 2.3 L.2 8.2 1996 1.1 3.6 2.3 1.2 8.2 1997 Darl! 3.6 2.3 L.2 8.2 1998 ‘Ll 336 2.3 1.2 8.2 1999 1.1 3.6 2.3 1.2 8.2 2000 1.1 3.6 2.3 1.2 8.2 2001 1.1 3.6 2.3 1.2 8.2 INQ A [SP DR A - T TELLER P-16 G - VILLAGE TECHNOLOGY ASSESSMENT Table 5 presents the results of the preliminary evaluation of resources and technologies as applied to the community. Methods and criteria used in developing this table are covered in Section C of the main report. The results of this preliminary assessment were used as guidance in development of plans evaluated in the final stages of the study. MIR A IF IP DRAET TELLER P-17 TABLE 5 VILLAGE TECHNOLOGY ASSESSMENT FOR TELLER TECHNICAL COST RESOURCE FACTORS FACTORS TECHNOLOGY Electric Coal Fired Steam Wood Fired Steam Geothermal Diesel (base) Gas Turbine Hydroelectric Wind Photovoltaic wwnnre FP eK Pf Lo yor RF OH YY CO CO oo OF WOOO orooroiro wwwoeeoecn’cdoa noon nN CO CO OC nor OOF OO CO Te Z- Se 4. oo 6. Te 8. Heating Diesel Waste Heat Recovery Electric Resistance Passive Solar Wood Coal Oil (base) Other — Coal Gasification Wood Gasification - Diesel Biogas Waste Fired Boiler Peat Binary Cycle Generator Conservation DRAFT TELLER P-18 H - ENERGY PLAN DESCRIPTIONS H.1 - Base Case The base case plan for Teller will deal with the continued service of electrical energy to the village by the Teller Power Company using diesel sets. Teller Power has a small waste heat system installed to heat the Teller Commercial store and its warehouse. The owners of TPC note that there is additional waste heat which is presently not being used. H.2 - Alternative "A" This alternative investigates the economics of expanding the waste heat system to serve not only the Teller Commercial store and warehouse, but the Teller city offices, the Catholic church and hall, and the village clinic. H.3 - Alternative "B" This alternative investigates the economics of including a relatively large 100 kW wind turbine in the generation system at Teller. The wind turbine would be located near the village, likely on the higher ground south of the airport. A transmission line would be required to tie into the existing Teller power system. When there was sufficient wind to operate the wind turbine, the diesels would be operated at a lighter load and thus consume less fuel. DRAFT DRAET TELLER P-19 I - ENERGY PLAN EVALUATIONS I.1 - Base Case I -1.1 - Economic Evaluation The base case plan uses the Teller Power Company diesel system to produce electricity and a small amount of waste heat. The existing Machine capacities are considered adequate to meet anticipated loads through the end of the study period if synchronization equipment is installed so that two generators can be run at the same time. Assumptions made when calculating future electricity costs and present value figures for the base case were as follows: The generators have the following capacities: One 100 kW diesel One 155 kW diesel One 210 kW diesel Any combination of two of these machines is sufficient to carry any anticipated load through the study period. The diesel sets will be valued at a purchase price of $300/kW plus $500/kW for installation, for a total of $800/kW installed. As long as TPC operates the plant (and this is assumed to be the case throughout the study period), each diesel set will require an overhaul costing one third of its original purchase price or $100/kW every 10 years. TPC employees will carry out all maintenance on the equipment. This service is valued at $50,000 per year. The fuel consumption rate for the diesel sets is assumed to be 8 kWh/gal. The waste heat system presently in Teller has an estimated cost using the following assumptions: (1) One heat exchanger system at the power plant valued at: $25,000. (2) 150 feet of hot water piping to the buildings served, valued at $200/foot: $30,000 INQ A [Ee 1P DR A\ [F T TELLER P-20 (3) Baseboard heaters in the store and warehouse, valued at $5,000 per building: ($10,000) Total system value: $65,000 - Annual costs of this system are calculated as follows: (1) The initial costs of the diesel sets are amortized over 20 years at an interest rate of 3 percent. (2) The initial costs of the waste heat system are amortized over 10 years at an interest rate of 3 percent. At the end of the first 10 year period, it is assumed that the waste heat system is replaced in its entirety. (3) The annual costs of the overhaul work are the result of the establishment of a sinking fund designed to provide $100/kW every 10 years. (4) General operation and maintenance adds $50,000 to the annual expenses. - Annual variable costs are calculated as follows: (1) In 1982, the diesel fuel price is assumed to be $2.00/gallon. The real (1981) cost will rise 2.6 percent annually to $3.26 by the end of the study period and will remain constant thereafter. A tabulation of the results of these calculations is shown on Tables 6, 7 and 8. It should be noted that the figure given for energy costs in $/kWh is not necessarily the same cost as would be billed to the ultimate consumer. This figure, which is expressed in terms of 1981 dollars and does not take into account costs associated with distribution of energy within the village, can add about $0.10/kWh to the cost. 1.1.1 - Social and Environmental Evaluation There is no potential for local employment with Teller Power Company as it is presently organized. Diesel plant equipment is relatively benign environmentally. Diesel engines emit quantities of carbon monoxide, carbon dioxide, water vapor, nitrous oxides (NOx), sulfur dioxide (S02), and unburned INQ A (Sr Asa Vad | TABLE 6 COST OF DIESEL-GENERATED POWER Diesel Fuel Total Energy Fuel Used Price | Fixed Costs Total Energy Production (1,000 gal) ($/ga1). Cost 1,000) Costs Cost Year MWh Note 1 Note 2 1,000 Note 3 1,000 kWh 1982 300 30 2.00 60 82 150 0.50 1983. 310 31 2.05 64 82 154 0.50 1984 315 32 2.10 67 82 157 0.50 1985 320 32 2.16 69 82 159 0.50 1986 330 33 2.22 73 82 163 0.49 1987 330 33 2027 75 82 165 0.50 1988 330 33 2.35 77 82 167 0.51 1989 330 33 2.39 79 82 169 0.51 1990 330 33 2.46 81 82 171 0752 199] 330 33 2.52 83 82 173 0.52 1992 330 33 2.58 85 82 175 0.53 1993 330 33) 2.65 87 82 177 0.54 1994 330 33 Zale | 90 82 180 0.55 1995 330 33) 2.79 | , 92 82 182 0.55 1996 330 33 2.86 | ' 94 82 184 . 0.56 ' 1997 330 33 2.94 j 97 82 187 0.57 1998 330 33 3.02 | 100 82 190 0.58 1999 330 33 3.09 | 102 82 192 0.58 2000 ~—«330 33 3.17: 105 82 195° 0.59 330 33 3.26 108 82 198 0.60 $60} 330 33 3.34 111 82 201 0.61 Note 1: Diesel fuel use is calculated at a consumption rate of 10 kWh produced per gallon of fuel used. Note 2: Diesel fuel price is expressed in terms of 1981 dollars, with prices escalated at 2.6 percent above general inflation. Note 3; Total annual fixed costs include funds for equipment amortization (calculated at 3%), a sinking fund for equipment overhaul and replacement, and general O&M work. LAVUG T2-d NANTI1 Lava@d TABLE 7 ESTIMATED COSTS OF BASE CASE Plan Component Waste : Heat Diesel System Total Amorti- Overhaul Amorti- Annual Discounted Year zation Fund 0&M Fuel zation Costs Costs 1982 25 7 50 60 8 150 145.6 1983 25 7 50 — 64 8 154 145.2 1984 25 7 50 67 8 157 143.7 1985 r4:] 7 50 69 8 159 141.3 1986 25 7 50 73 8 163 140.6 1987 25 7 50 75 8 165 138.2 1988 25 7 50 77 8 167 135.8 1989 25 7 50 79 8 169 133.4 1990 25 7 50 81 8 171 131.1 199] 25 7 50 83 8 173 128.7 1992 25 7 50 85 8 175 126.4 1993 25 7 50 87 8 177 124.1 1994 25 7 50 87 8 180 122.6 1995 . 25 7 50 92 8 182 120.3 1996 25 7 50 94 8 184 118.1 1997 25 7 50 97 8 187 116.5 1998 25 7 50 100 8 190 115.0 1999 25 7 50 102 8 192 112.8 2000 25 7 50 105 8 195 111.2 2001 25 7 50 108 8 198 109.6 All cost figures shown are in thousands of dollars. TOTAL: $ 2,560 Total present worth of non-electrical benefits: $111 Net present worth of base case: $2,449 LAV aG 22-d MAITAl - i TELLEK P-235 DRAFT TABLE 8 ESTIMATED NON-ELECTRICAL BENEFITS OF BASE CASE Benefits Total Annual Discounted Year Fuel Savi Benefits Benefits 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 e_ 36 ee WW Oa oo ee eee OINwWPRO COWRA OFPUNWO t oowww wonwnc oOnNNN NAADNDO oowww W000 0 onnNnNN NADAANN eR ee ; : TTT, All cost figures shown are in thousands of dollars. Teme: 4 [DIR A IFT 1.2 - DRAFT TELLER P-24 hydrocarbons. With the installation at Teller, there will not likely be any noticeable buildup of any of these pollutants. The engine lubricating oi] must be changed periodicaly and the waste oil must be disposed of properly. In remote villages such as Teller, this can be a significant problem. Diesel engines are also a source of noise. The present installation at Teller is not equipped with any muffler system and is a nuisance in the central part of the village. 1.1.3 - Technical Evaluation Teller presently has what seems to be one of the most reliable utilities found in any of the villages studied. Part of this reliability must be attributed to the fact that the utility is privately owned and operated, with a certain amount of pride attached to running a good utility. The rigid foundation structure undoubtedly contributed significantly to the successful operation of the Teller utility. There is an excess of installed capacity at Teller, which contributes to the high prices which have been calculated for energy sales. If Teller Power Company continues to be privately operated, it can be expected that service with a high degree of reliability will continue. Alternative Plan "A" 1.2.1 - Economic Evaluation Alternative "A" uses the diesel sets as described in the base case, except that the waste heat system is expanded to serve not only the Teller Commercial store and warehouse, but the Catholic church and its hall, the Teller village office building, and the clinic. The waste heat produced by the diesels would be able to replace about 15,000 gallons of fuel oil each year. It is estimated that the buildings which would be served under this plan will consume about 8,000 gallons of oil per year. Assumptions made when calculating future costs of the diesel/waste heat system were as follows: [DIR A fF TT DRAFT TELLER P-25 - The diesel system would be as described in the base case plan. - The expansion of the waste heat system will require the installation of 650 feet of insulated pipe at a cost of $200/foot, for a total of $130,000. - The Catholic church and hall, as well as the village office building and the clinic will require the installation of baseboard heaters, at a cost of $5,000 per building for a total of $20,000. - The value of the original waste heat recovery system was estimated to be $65,000. Bringing the total value of the expanded system to $215,000. - The $215,000 capital cost of the waste heat system is amortized over a period of 10 years at an interest rate of 3 percent annually, for an annual cost of about $25,000. - There is no anticipated change in the costs associated with diesel amortization, overhaul or operations and maintenance. The costs associated with the operation of this alternative are shown on Tables 9 and 10. 1.2.2 - Social and Environmental Evaluation Since this alternative represents only a minor refinement to the base case evaluation, it can be concluded that there will be no significant differences between the social and environmental impacts of that system and those of this alternative. 1.2.3 - Technical Evaluation ~— _.._ ._ There will be no difference in the technical evaluation of this system and that of the base case. [DIR A IF TT tsi Vald TABLE 9 ESTIMATED COSTS OF ALTERNATIVE "A" Plan Component Waste Heat Diesel System Total Amorti- Overhaul Amorti- Annual Discounted Year zation Fund O&M Fuel zation Costs Costs 1982 - 25 7 50 60 25 167 162.1 1983 25 7 50 64 25 171 161.2 1984 25 7 50 67 25 174 159.2 1985 25 7 50 69 25 176 156.4 1986 25 7 50 73 25 180 155.3 1987 25 7 50 75 25 182 152.4 1988 25 7 50 77 25 184 149.6 1989 25 7 50 79 25 186 146.8 1990 25 7 50 81 25 188 144.1 1991 25 ? 50 83 25 190 141.4 1992 25 7 50 85 25 192 138.7 1993 25 7 50 87 25 194 136.1 1994 25 7 50 90 25 197° 134.2 1995 25 7 50 92 25 199 131.6 1996 25 7 50 94 25 201 129.0 1997 25 7 50 97 25 204 127.1 1998 25 7 50 100 25 207 125.2 1999 25 7 50 102 25 209 122.8 2000 25 7 50 105 25 ; 212 120.9 2001 25 7 50 111 25 218 117.2 All cost figures shown are in thousands of dollars. TOTAL: $ 2,813 Total present worth of non-electrical benefits: $286 Net present worth of Alternative "A": $2,527 LAV ad Q2-d HA1TA1 DRAFT TABLE 10 TELLER P-27 ESTIMATED NON-ELECTRICAL BENEFITS OF ALTERNATIVE "A" Benefits Total Annual Discounted Year Fuel Savings Benefits Benefits 1982 16 16 15.5 1983 16 16 15.1 1984 17 17 15.6 1985 17 17 15.1 1986 18 18 15.5 1987 18 18 15.1 1988 19 19 15.4 1989 19 19 15.0 1990 20 20 15.3 1991 20 20 14.9 1992 21 21 15.2 1993 21 21 14.7 1994 22 22 15.0 1995 22 22 145 1996 23 23 14.8 24 24 1520 Lots 24 24 14.5 1999 25 25 14.7 2000 25 25 14.2 2001 26 26 14.4 All cost figures shown are in thousands of dollars. DIR A IF Tr TOTAL: $ 286 DRAFT TELLER P-28 1.3 - Alternative Plan "B" 1.3.1 - Economic Evaluation Alternative "B" uses the TPC diesel sets as described in the base case as the primary source of village power. In addition to these three units, there will be assumed to be a 100 kW wind turbine installed near the village. At those times when there is sufficient wind to operate the wind turbine, its electrical output will be fed into the Teller power system. For purposes of this study, it will be assumed that the wind turbine will have a plant factor of 25 percent and an availability factor of 90 percent. The expected annual energy output of these machines is then: 100 kW x 8,760 hr/year x 0.25 x 0.90 = 197,100 kWh/year This represents about 670 percent of Teller's annual electrical energy needs. It is unlikely that such a system would actually be put into operation, but it will be useful to analyze how a large wind turbine would affect the economics of the Teller utility system. Assumptions made when calculating future costs of the diesel/wind turbine systems were as follows: - The diesel system is as described in the base case plan including the small waste heat recovery system. - The capital cost associated with the purchase of a large wind turbine such as the one described in this alternative is $2,600/kW. The cost associated with the installation is also estimated at $2,600/kW, for a total installed cost of $5,200/kW, or $520,000. - This capital cost will be amortized over a period of 15 years at an annual interest rate of 3 percent. This represents an annual cost of about $44,000. - Operations and maintenance of the wind turbine will require attention of skilled personnel brought in from Anchorage. It is estimated that this service will require four visits per year, each visit costing about $3,000. Total O&M charges are therefore $12,000 per year. . - Total costs associated with the operation of the wind turbines are $56,000 per year. DRAFT DIR A\ [F T TELLER P-29 - The on-line date of the wind turbine will be delayed until such time as the fuel savings are sufficient to pay for the wind turbine. This will occur when the price of fuel reaches the level as calculated below: 197,000_kWh/year = 24,638 gallons of TPC fuel 8 kWh/gallon displaced per year $56, 000/year 24,638 gallons/year $2.27/gallon This is the expected price (in 1981 dollars) of fuel in 1987. Thus, the wind turbines will be put into operation at that time. A tabulation of the costs associated with the operation of the diesel/wind turbine system is shown on Table 11. 1.3.2 - Social and Environmental Evaluation The social and environmental impacts of the diesel units have already been discussed in the evaluation of the base case. If this alternative were implemented, some local construction employment opportunities could exist. There would be a need for skilled workers such as welders, electricians, and riggers, as well as for general laborers. The maintenance of the wind turbine would require skilled technicians to be brought in from Anchorage to perform periodic adjustments and repairs. 1.3.3 - Technical Evaluation The economic evaluation has shown this alternative to be attractive, competing successfully against the existing diesel system. However, a study of this level cannot be used to establish detailed construction or operation cost estimates; it can be used to judge general performance. Additional information is needed to more accurately estimate the construction costs. Also, wind turbine systems are undergoing additional work and it will be some time before this installation can be routinely considered. DR A IF Tr Ls Vad ' TABLE 11 ESTIMATED COSTS OF ALTERNATIVE ei | Plan Component Waste Heat Wind Diesel | System Turbine Total Amorti- Overhaul | Amorti- Amorti- Annual Discounted Year zation Fund O&M Fuel zation zation O&M Costs Costs 1982 25 7 50 60 8 - - 150 145.6 1983 25 vA 50 64 8 - - 154 145.2 1984 25 7 50 67 8 - - 157 143.7 1985 25 7 50 69 8 - - 159 141.3 1986 25 7 50 73 8 - - 163 140.6 1987 25 7 50 18 8 44 12 164 137.4 1988 25 7 50 19 8 a4 12 165 134.2 1989 25 7 50 19 8 44 12 165 130.3 1990 25 7 50 19 8 44 12 165 126.5 1991 25 7 50 20 8 44 12 166 123.5 1992 25 7 50 20 8 44 12 » 166 119.9 1993 25 7 50 21 8 44 12 167 117.1 1994 25 7 50 22 8 44 12 168 114.4 1995 25 7 50 22 8 44 12 168 111.1 1996 25 7 50 22 8 44 12 168 107.8 1997 25 7 50 23 8 44 12 169 105.3 1998 25 7 50 24 8 44 12 170 102.9 1999 25 7 50 25 8 44 12 171 100.4 2000 25 7 50 26 8 44 i) jhe 172 98.1 2001 25 7 50 26 8 44 12 172 95.2 All cost figures shown are in thousands of dollars. TOTAL: $ 2,441 LAVEG O€-d YaTTSL