HomeMy WebLinkAboutREFRoundIXApplication - Heat - ComplexRenewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 1 of 44 7/8/15
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round VIII of the Renewable Energy Fund Heat Projects only. If your application is for energy
projects that will not primarily produce heat, please use the standard application form (see RFA
section 1.5). An electronic version of the Request for Applications (RFA) and both application
forms are available online at: http://www.akenergyauthority.org/Programs/Renewable-Energy-
Fund/Rounds#round9.
• If you need technical assistance filling out this application, please contact Shawn Calfa, the
Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.
• If you are applying for grants for more than one project, provide separate application forms
for each project.
• Multiple phases (e.g. final design, construction) for the same project may be submitted as
one application.
• If you are applying for grant funding for more than one phase of a project, provide
milestones and budget for each phase of the project.
• In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 ACC
107.605(1).
• If some work has already been completed on your project and you are requesting funding
for an advanced phase, submit information sufficient to demonstrate that the preceding
phases are completed and funding for an advanced phase is warranted. Supporting
documentation may include, but is not limited to, reports, conceptual or final designs,
models, photos, maps, proof of site control, utility agreements, power sale agreements,
relevant data sets, and other materials. Please provide a list of supporting documents in
Section 11 of this application and attach the documents to your application.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed. Please
provide a list of additional information; including any web links, in section 12 of this
application and attach the documents to your application. For guidance on application best
practices please refer to the resource specific Best Practices Checklists; links to the
checklists can be found in the appendices list at the end of the accompanying REF Round
IX RFA.
• In the sections below, please enter responses in the spaces provided. You may add
additional rows or space to the form to provide sufficient space for the information, or attach
additional sheets if needed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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• In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by the Authority. If you
want information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept confidential.
If the Authority determines it is not confidential it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate and maintain the project upon completion.
Name (Name of utility, IPP, local government or other government entity)
Ketchikan Gateway Borough
Type of Entity: Second-Class Borough Fiscal Year End: June 30
Tax ID # 92-0084626
Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one)
Date of last financial statement audit:
Mailing Address: Physical Address:
1900 First Avenue, Ste. 210
Ketchikan, AK 99901
1900 First Avenue, Ste. 210
Ketchikan, AK 99901
Telephone: Fax: Email:
(907) 228-6738 managersoffice@kgbak.us
alexp@kgbak.us
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Title:
Amy Briggs Borough Procurement Officer
Mailing Address:
1900 First Ave., Ste. 210
Ketchikan, AK 99901
Telephone: Fax: Email:
(907) 228-6637 managersoffice@kgbak.us
amyb@kgbak.us
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Title:
Dan Bockhorst Borough Manager
Mailing Address:
1900 First Ave., Ste. 210
Ketchikan, AK 99901
Telephone: Fax: Email:
(907) 228-6738 managersoffice@kgbak.us
danb@kgbak.us
1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Alex Peura (907) 228-6645 alexp@kgbak.us
Morgan Barry (907) 228-6664 morganb@kgbak.us
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
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1.2.1 As an Applicant, we are: (put an X in the appropriate box)
☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
☒ A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate by checking the box)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template
at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9.
(Any exceptions should be clearly noted and submitted with the application.) (Indicate by
checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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Grant Application – Heat Projects
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SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Ketchikan Gateway Borough Schools/Recreation Central Heating Plant
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information please contact
AEA at 907-771-3031.
Schoenbar Middle School: 55.345170, -131.637603; 217 Schoenbar Road
Ketchikan Gateway Borough School District Maintenance Facility: 55.346158, -131.639423; 333
Schoenbar Road
Valley Park School: 55.347579, -131.639585; 410 Schoenbar Road
Gateway Recreation Center / Aquatic Center: 55.347, -131.641339; 601 Schoenbar Road
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Ketchikan Gateway Borough
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☐ Wind to Heat ☒ Biomass or Biofuels
☐ Hydro to Heat ☐ Solar Thermal
☐ Heat Recovery from Existing Sources ☐ Heat Pumps
☐ Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance ☒ Final Design and Permitting
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☒ Feasibility and Conceptual Design ☐ Construction and Commissioning
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
Feasibility study and design of a central biomass boiler plant to serve the Schools/Recreation
complex located westerly of Schoenbar Road, consisting of Schoenbar Middle School, Valley Park
School, the Gateway Recreation Center/Aquatic Center, and the Ketchikan Gateway Borough
School District Maintenance Facility, an area comprising some 207,000 square feet of building
space. The Ketchikan Gateway Borough is seeking to secure its future energy independence
through the construction of biomass-fired building heating systems throughout the local schools
and the recreation facilities.
2.5 Scope of Work
Provide a scope of work detailing the tasks to be performed under this funding request. This
should include work paid for by grant funds and matching funds or performed as in-kind match.
The Ketchikan Gateway Borough is requesting funding for feasibility and conceptual design, and
project design for a central boiler plant to be constructed at the Ketchikan Gateway Borough
Schools/Recreation Complex westerly of Schoenbar Road. The central woody biomass fired
boilers will provide 100% heat to the recreation and school facilities in the area, with the existing oil
fired or electrical boilers to remain and pick up the “shoulder” heating times. The woody biomass
fired boilers will replace outdated heating oil boilers, which will become more costly to maintain and
are run on heating oil number 2, a more expensive fuel source than locally sourced woody
biomass. In addition, the Gateway Aquatic Center uses an electric boiler system, resulting in
electrical generation being put towards heat rather than being utilized for industrial activities.
Preliminary studies indicate the system will need to be approximately 25.17 MMBtu to provide
100% heating load to the facilities in the area.
Feasibility work will include examining fuel usage records, reviewing electrical and heat usage,
heat load requirements, and review biomass fuel prices to determine the viability of this project;
examination of the property to determine the most appropriate location on site; and determination
of the appropriate facility size to serve the proposed buildings, along with future expansion
potential.
Project design will be the development of plans and specifications to construct a facility of the size
determined to be most appropriate during the feasibility study and conceptual design.
Work to date towards this project includes:
Conceptual Design: Bear Valley Central Heat Plant by R&M Engineering – Ketchikan, Inc.
submitted proposal, energy and economics analysis, and Civil/Architectural conceptual design.
Feasibility Study: Heating System Retrofit Analysis by Alaska Engineering, LLC in 2013 ($43,560
funded by the Ketchikan Gateway Borough School District with participation from AEA and USFS)
Heating Load Analysis: Ketchikan Aquatic Center Alternative Energy Study by AMC Engineers
and Alaska Energy Engineering, LLC in 2010
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail.
Milestones Tasks
Start
Date
End
Date
Deliverables
Phase II: Conceptual Design and Feasibility
1. Feasibility Contract 7/1/2016 10/15/2016 Awarded Contract for
Feasibility Study
RFP solicitation issued 7/1/2016 9/1/2016
Review proposals 9/1/2016 9/15/2016
Award 9/15/2016 10/1/2016
Design contract issued 10/1/2016 10/15/2016
Notice to Proceed issued 10/15/2016 10/15/2016
2. Discovery 10/15/2016 12/1/2016 Report on Preliminary
Findings
Project kick-off meeting 11/1/2016 11/1/2016
Prepare engineering memo on fuel
requirements 11/2/2016 11/7/2016
First site visit – meeting with owner 11/8/2016 11/13/2016
First site visit – field data collection 11/8/2016 11/13/2016
Energy consumption and climate
history 10/15/2016 12/1/2016
3. Engineering Evaluation
and Analysis 12/1/2016 1/30/2016
Formal recommendation
for project size, viability of
project, and proposed
location
Establish interconnection and
interoperability requirements 12/1/2016 12/8/2016
Determine size and space
constraints 12/8/2016 12/15/2016
Preliminary building and equipment
layout diagrams 12/152016 1/15/2017
Biomass and trim boiler system
sizing 1/15/2017 1/18/2017
Energy and mass balance 1/18/2017 1/24/2017
Hydraulic model 1/25/2017 2/1/2017
Phase III: Final Design and Permitting
4. Permitting 2/1/1/2017 2/2/2017
Code Analysis based on
preliminary data compiled
to date
Determine regulatory requirements 2/1/2017 2/2/2017
Complete and submit required
permitting documents 2/2/2017 2/2/2017
5. Design Reviews and
Completion 2/1/2017 7/1/2017 Bid Set Drawings, Specs
30% design review 2/1/2017 4/1/2017 30% Planset, Specs
design completion to 90% 4/1/2017 6/1/2017 90% Planset, Specs
90% design review and final design
updates 6/1/2017 7/1/2017 Bid Set Drawings, Specs
5a. Mechanical Design 2/1/2017 7/12017 Mechanical Planset
major system and component 2/1/2017 3/1/2017
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selection
detailed equipment design, layout
and system drawings 3/1/2017 6/1/2017
piping system schematic design
and layout 4/1/2017 6/1/2017
generate electrical and structural
coordination sheets 5/1/2017 6/1/2017
define sequence of operations and
controls interface 5/1/2017 6/1/2017
prepare commissioning plan and
O&M manuals 6/1/2017 6/15/2017
prepare mechanical (div 15)
specifications 6/1/2017 7/1/2017
finalize mechanical drawings and
equipment lists 6/15/2017 7/1/2017
5b. Structural Design 2/1/2017 7/1/2017
prepare building design, layout and
drawings 2/1/2017 3/1/2017
structural calculations 2/1/2017 3/1/2017
prepare slab and wall design,
layout and drawings 3/1/2017 6/1/2017
Generate mechanical and
structural coordination sheets 5/1/2017 6/1/2017
prepare structural specifications 6/1/2017 7/1/2017
finalize structural calculations and
drawings 6/15/2017 7/1/2017
5c. Electrical Design 3/1/2017 7/1/2017 Electrical Planset
prepare power system design,
layout and drawings 3/1/2017 4/1/2017
prepare lighting system design,
layout and drawings 3/15/2017 4/15/2017
Generate mechanical and
structural coordination sheets 5/1/2017 6/1/2017
prepare electrical (div 16)
specifications 6/1/2017 7/1/2017
finalize electrical drawings 6/15/2017 7/1/2017
control system design and (DDC)
integration 6/15/2017 7/1/2017
6. Financial Analysis 4/1/2017 5/1/2017
develop capital cost estimate 4/1/2017 4/15/2017
develop operating cost estimate 4/1/2017 4/16/2017
prepare and report financial model 4/16/2017 5/1/2017
7. Permitting Completion 7/1/2017 8/1/2017 Building Permit Issued
release permit set 7/1/2017 7/2/2017
Permit responses 7/3/2017 7/15/2017
Permit Issuance 7/15/2017 8/1/2017
8. Bid Set Preparation 8/1/2017 9/1/2017 Completed Bid Set
3.2 Budget
Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel,
and other project items meet industry standards or are otherwise justified.
3.2.1 Budget Overview
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Describe your financial commitment to the project. List the amount of funds needed for project
completion and the anticipated nature and sources of funds. Consider all project phases, including
future phases not covered in this funding request.
Ketchikan Gateway Borough is requesting $220,000 to support its efforts to develop biomass
energy projects for heating Schoenbar, the Recreation/Aquatic Center, Valley Park and the
Maintenance Facility. Significant funds have already been expended in evaluating the feasibility of
this project. Funding in this request will be used to fund both the Phase II and Phase III work.
3.2.2 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final
Design and Permitting, and IV. Construction). Please use the tables provided below to detail your
proposed project’s total budget. Be sure to use one table for each phase of your project. The
milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Milestone or Task RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of Matching Funds:
Cash/In-kind/Federal
Grants/Other State Grants/Other
TOTALS
Phase II: Feasibility and
Conceptual Design $ 40,000 $0 N/A $ 40,000
TOTALS $ 40,000 $0 $ 40,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $ 40,000
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $ 40,000
Milestone or Task RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of Matching Funds:
Cash/In-kind/Federal
Grants/Other State Grants/Other
TOTALS
Phase III: Final Design and
Permitting $180,000 $0 N/A $180,000
TOTALS $180,000 $0 $180,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $180,000
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $180,000
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
Bear Valley Central Heat Plant by R&M Engineering – Ketchikan, Inc. submitted proposal, energy
and economics analysis, and Civil/Architectural conceptual design.
3.2.4 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $ 220,000.00
Cash match to be provided $ 00.00
In-kind match to be provided $ 00.00
Total costs for project phase(s) covered in application (sum of above) $ 220,000.00
For heat projects using building efficiency completed within the last 5 years as in-kind match, the
applicant must provide documentation of the nature and cost of efficiency work
completed. Applicants should provide as much documentation as possible including:
1. Energy efficiency pre and post audit reports,
2. Invoices for work completed,
3. Photos of the building and work performed, and/or
4. Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
3.2.5 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use
actual costs for completed phases.
Reconnaissance $ N/A (private
contribution)
Feasibility and Conceptual Design $ 40,000
Final Design and Permitting $ 180,000
Construction $ N/A
Total Project Costs (sum of above) $ 220,000
3.2.6 Operating and Maintenance Costs (non-fuel)
Estimate annual non-fuel O&M costs associated with the proposed system
$ 45,000
3.2.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system
Fuel type Annual cost ($)
Biomass $669,175
Electricity $
Oil $ 20,500
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3.3 Project Communications
Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is
described in adequate detail.
Describe how you plan to monitor the project and keep the Authority informed of the status.
The Ketchikan Gateway Borough project manager will be responsible for project monitoring and
direct contact with AEA. The project manager will, at a minimum, provide AEA with monthly
progress reports, report dispersal of grant funds, and organize monthly update meetings.
Progress Reports
Written progress reports will highlight activities undertaken with dates, results achieved, progress
towards stated milestones, and outline any unexpected delays, problems or difficulty that arise as
the project progresses. Reports will be submitted on a monthly basis.
Financial Reports
Concurrent with the progress reports, a financial report will be submitted. This report will outline the
utilization and dispersal of grant funding for the month, and over the life of the project. This report
will also actively track project costs against the project budget. Propose budget modifications and
manage cost overruns, as needed.
Monthly Meetings
Monthly meetings will take place via conference call or in person at a mutually agreed upon time.
Meetings will routinely take place 3-5 business days after progress and financial reports are
submitted. This is intended to allow AEA the opportunity to review the reports and ask questions
regarding project progress and grant utilization.
Monitoring and Performance Reporting Plan
Regular monitoring and performance will be documented and submitted to AEA for approval. This
will include continuous monitoring to verify and update projections and system efficiency.
3.4 Operational Logistics
Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project are
reasonable and described in adequate detail.
Describe the anticipated logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project.
The areas in which the Borough anticipates entering into business arrangements are:
• Wood Pellet Procurement: This purchase will be through the Borough’s standing procurement
procedures per Ketchikan Gateway Borough Code Chapter 11.15 Open Market Purchasing
Procedures and Contracts. For scoping purposes, attached is the proposal from Tongass
Forest Enterprises.
• Heat Sharing: Facilities intended for heat under this project include several schools, operated
by the Ketchikan Gateway Borough School District under powers provided to the School Board
to provide custodial and regular maintenance of the Ketchikan Gateway Borough’s schools per
Ketchikan Gateway Borough Code 2.35.080 Custodial Services and Maintenance, in addition
to Borough-owned facilities. In order for heat demand to be calculated, information as to the
quantity of usage will be monitored through the School District’s DDCs located at the
Maintenance Facility. Software needs will be determined during the course of design.
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• Operations and Maintenance: Operation and maintenance of the Biomass Boiler Plant will be
by Borough personnel or by the KGSD Maintenance Department.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully complete and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the
applicant’s capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant
would like those excluded from the web posting of this application. If the applicant does not have a
project manager indicate how you intend to solicit project management support. If the applicant
expects project management assistance from AEA or another government entity, state that in this
section.
Project management for the feasibility and design phases of the Ketchikan Gateway Borough
Central Heating Plant Design will be performed by Alex Peura, Public Works Director for the
Ketchikan Gateway Borough, who will oversee the progress of the project, develop Requests for
Proposals in conjunction with Borough procurement staff, verify assumptions made by the design
team, and regularly communicate with AEA as the project progresses.
Mike Williams, Ketchikan Gateway Borough School District Maintenance Superintendent, will
provide assistance relative to the operational capacity of the schools, access to the facilities for
monitoring, and all schools data as necessary for this project.
4.1.2 Expertise and Resources
Describe the project team including the applicant, partners, and contractors. Provide sufficient
detail for reviewers to evaluate:
• the extent to which the team has sufficient knowledge and experience to successfully
complete and operate the project;
• whether the project team has staffing, time, and other resources to successfully complete
and operate the project;
• how well the project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
The Ketchikan Gateway Borough and the Ketchikan Gateway Borough School District regularly
procure and construct projects with budgets well in excess of that for the Ketchikan Gateway
Borough Schools/Recreation Central Heating PlantPlant Design project, most of which have
diverse funding sources that require matching requirements, project reporting, design and
procurement requirements and tracking. All projects performed by the applicants require tracking
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of a wide variety of bid processes, project inspection and administration, submittal review, and
closeout.
A professional engineer specializing in heat and energy modeling will be procured to determine the
feasibility of the project, with design to follow. All procurement will be under the Borough’s
procurement policies.
Availability of Resources: To be Determined.
Owner: Ketchikan Gateway Borough
Dan Bockhorst, Borough Manager
Alex Peura, Public Works Director – Project Manager and Owner’s Representative
Amy Briggs, Procurement Officer
Availability of Resources: With the completion of several significant sized, long-term projects
(including the Dudley Field/Houghtaling Field Resurfacing project, Mike Smithers Pool Demolition,
and Gateway Aquatic Center Roof Repairs) in the last year, there is capacity within the Public
Works Department to administer the feasibility and design scopes in the project.
Operator: Ketchikan Gateway Borough School District
Mike Williams, School District Maintenance Superintendent and Lead Operator
Availability of Resources: The School District has four employees in the operations of mechanical
systems throughout the district, with at least two of the personnel designated towards operating
and maintaining the boiler systems.
Contractor: To Be Determined.
4.1.3 Project Accountant(s)
Indicate who will be performing the accounting of this project for the grantee and include a resume.
In the electronic submittal, please submit resumes as separate PDFs if the applicant would like
those excluded from the web posting of this application. If the applicant does not have a project
accountant indicate how you intend to solicit financial accounting support.
Cynna Gubatayo, Ketchikan Gateway Borough, Finance Director
BA Accounting, MBA. Former Assistant Borough Manager, Cynna has over 20 years’ experience
in accounting, including specialized project costing.
Maureen Crosby, CPA., Ketchikan Gateway Borough, Controller
Maureen has been a Certified Public Accountant for 13 years, and has been in public accounting
for nearly 20.
4.1.4 Financial Accounting System
Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the Renewable Energy Fund Grant Program.
The Ketchikan Gateway Borough utilizes Financial Edge software by Blackbaud, of which the
Borough’s Finance Department is the primary user.
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Throughout the project, costs allocated to the project will be reviewed by Borough staff tasked with
Contract Administration to determine their compliance with grant conditions. Prior to issuance of
reimbursement request, the Ketchikan Gateway Borough’s Finance Department staff also review
the cost allocation to verify grant conditions have been met.
The Ketchikan Gateway Borough also receives a yearly audit by the State of Alaska and employs a
Third-Party auditor to prepare a Comprehensive Annual Financial Report (CAFR), which is made
publically available on the Ketchikan Gateway Borough website (http://www.kgbak.us), to verify
that all internal controls are in order. Auditors also review each ongoing and finalized grant for
compliance with all grant conditions.
4.2 Local Workforce
Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce.
Describe how the project will use local labor or train a local labor workforce.
It is the Borough’s intent to procure the services of engineering firms for the Phase 2 and 3 work
through open procurement processes: in the event the most qualified firm is located locally, the
Borough will be utilizing the local workforce.
Labor to operate the project will be local in the event the project moves to construction.
While it will be necessary to pursue competitive procurement in order to fulfill Borough contract
procedures, there is at least one local company (Tongass Forest Enterprises) currently producing
wood pellets to fuel the biomass system. In the event the fuel supply procurement is awarded to a
local bidder, their business and employees will be bolstered by the Borough’s business. Even if
the awarded bid is not local, the more biomass boiler systems located locally, the more opportunity
for bulk contracts in the local biomass industry.
SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and
project permits and other authorizations can reasonably be obtained.
5.1.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. Describe the pros and cons of your proposed energy
resource vs. other alternatives that may be available for the market to be served by your project.
For pre-construction applications, describe the resource to the extent known. For design and
permitting or construction projects, please provide feasibility documents, design documents, and
permitting documents (if applicable) as attachments to this application.
Pellet fuels are the most consistent of all biomass feedstocks. Pre-processing of pellets to standard
specifications greatly reduces compatibility problems and operational issues with combustion
equipment. It is anticipated that the project will seek Pellet Fuels Institute Standard-grade fuel
pellets and equipment will be engineered to handle this grade. The higher allowable ash content in
the Standard-grade pellet can be made from non-merchantable biomass containing some bark
rather than the clean white heartwood required for Premium-grade pellets. Equipment designed for
Standard-grade pellets will accept Premium-grade pellets if that is the only supply availability. It is
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expected that the recommended pellet boiler equipment be capable of processing microchip fuel
should that become available in the area.
Fuel pellet specifications can be found at the Pellet Fuels Institute website http://pelletheat.org/pfi
standards/pfi-standards-program/. Feedstock will be delivered via bulk truckload delivery by fuel
contractor.
• Amount: Combined Approximately 2203 tons/year
• Pricing: 500 Tons/Year over 5 years: $275/ton
• Infrastructure requirements: Pellet Silo, Feed Auger
The Ketchikan Gateway Borough is committed to using locally sourced woody biomass in order to
support Alaskan business. KGB has previously contacted Tongass Forest Enterprises to secure a
long term supply of wood pellets. Tongass Forest Enterprises has identified two local entities from
which they will be purchasing pulp-grade wood to produce wood pellets.
• Leask Lakes sale
• Brown mountain road boundary sale
Other projects in progress in the Tongass National Forest from which biomass may become
available include the Big Thorne and Saddle Lake sales.
In a letter to the Borough, Tongass Forest Enterprises is on record as offering contracts up to 5
years in length, for volumes exceeding 500 tons/year at a price that is financially viable for this
project. Southeast Alaska as a whole has an opportunity, and perhaps a need to leverage woody
biomass resources for energy purposes.
Moreover, in a 2010 study conducted by the USFS entitled “Economic Analysis of Southeast
Alaska: Envisioning a Sustainable Economy with Thriving Communities”, it is noted that:
“A potential young growth market is biomass energy, although the potential remains unclear. Current
demand for biomass in Southeast Alaska is relatively small; wood chips and other mill wastes are sufficient
to meet local heating demands. But diesel is widely used for power and heat in Southeast Alaska, and
biomass might be developed into a more cost-effective energy sources. Wood fiber produced from thinning
young forests might be processed into wood pellets and other energy sources if demand comes to exceed
supply of wastes.”
This same report notes that 400,000 acres of Tongass National Forest are in young growth of
various native species, thus ensuring an ample supply for this and other wood energy projects in
the area.
In the event of a shortfall in available pellets from local manufacturers, Ketchikan is easily
accessible by barges from Seattle providing weekly scheduled service, by which means the
Washington, Oregon and Idaho pellet manufacturers may be tapped. Prince Rupert, a Canadian
town in British Columbia located ninety miles south of Ketchikan, also bears Pinnacle Renewable
Energy, Inc., the largest pellet manufacturer in North America.
5.1.2 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
• List of applicable permits
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• Anticipated permitting timeline
• Identify and describe potential barriers
Permits required for the performance of this project consist of:
• Ketchikan Gateway Borough Zoning Permit
• City of Ketchikan Building Permit – Fire and life safety code plan review and building
inspections.
• City of Ketchikan Site Development Permit
• Air Quality Feasibility Study per 18 AAC 50
These are the permits anticipated through design of the facility. It is not expected that these
permitting and regulatory procedures will impact the overall project schedule or scope.
5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
Describe the availability of the site and its suitability for the proposed energy system. Identify
potential land ownership issues, including whether site owners have agreed to the project or how
you intend to approach land ownership and access issues.
The project’s intended location is next to several schools (Schoenbar Middle School, Valley Park
Elementary Schools), the School District Maintenance Facility and the Gateway Recreation Center
and Aquatic Center: the area of the project is entirely within the ownership of the Ketchikan
Gateway Borough. While there are topographical considerations in siting the building, there is
believed to be ample room to accommodate the structure.
Biomass harvested for use in this project will be locally sourced: any ownership issues associated
with biomass harvest will be the responsibility of the biomass supplier, not the applicant.
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
Risk is extremely low for the Gateway Borough Recreation and Schools Central Heating Plant
Design.
The Borough is largely insulated from common sources of risk such as financial instability, though
the funding source for the overall project has yet to be determined and will likely be through a
mixture of local expenditures and federal and state grant, as they may become available.
Moreover, per Volume 2 of the Southeast Alaska Integrated Resource Plan (IRP) by Black &
Veach, in discussing the project development and operational risks, that document identifies
resolving the ineffectiveness and inefficiencies of individual projects through a coordinated process
of developing biomass resources. With the ongoing Ketchikan International Airport and Ketchikan
High School Biomass Boiler Projects currently under design, the Borough has shown its intent to
focus on biomass on a facility-wide scale in order to create the base for the industry. The Gateway
Borough Recreation and Schools Central Heating Plant is consistent with this philosophy, given
that it consolidates the heat availability for several facilities.
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Relative to feedstock availability, per the Southeast Area Integrated Resource Plan by Black &
Veatch, Volume 2 section 17.1.28, “The region’s abundance of biomass resources… allows the
opportunity for the region to provide the majority of their space heating needs through local
sustainable renewable resources,” but it does identify the fuel supply risk as moderate, primarily
due to the feedstock availability being within the Tongass National Forest. As noted in that report
in section 15.7, “… the minimum amount of pellets necessary to initially support a mill is
approximately 10,000 tons annually.” Amongst Borough facilities alone, the Ketchikan
International Airport and Ketchikan High School will consume up to approximately 2,200 tons of
pellets annually; the Gateway Borough Recreation/Schools Facility will effectively double this
consumption. The community also hosts existing biomass boilers at the U.S. Forest Service
Southeast Alaska Discovery Center, Ketchikan Federal Building, and City of Ketchikan Public
Library. The progressive conversion of public facilities to biomass heat, alone, will likely provide
the base for a local pellet industry.
In terms of public support, the project is perceived positively throughout the community. As noted
by Black & Veatch: “the concept of using a local renewable resource that creates local jobs is well
received.”
In terms of siting a complex, the Borough-owned property on which it is intended to be located has
ample space for a new structure. Given the available space, factors such as favorable topography
and geology, proximity to structures, and existing clearances will be easily resolved during the
design process.
Finally, while only the Gateway Recreation Center and Maintenance Facility have boilers requiring
replacement within the next decade, the potential for establishing and stabilizing a sustainable
industry and the potential operational savings to accrue to the Borough are more than enough
cause to see this project accomplished within short order.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so how they will be
addressed:
• Threatened or endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and describe other potential barriers
• Threatened or endangered species /Habitat Issues
o No endangered or threatened species will be impacted by the construction of this project.
Per the US Fish and Wildlife Service, the following endangered species are listed and occur in the
State of Alaska:
Short-Tailed Albatross
Polar Bear
Wood Bison
Eskimo Curlew
Spectacled Eider
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Stellar’s Eider
Northern Sea Otter
Stellar Sea Lion
Leatherback Sea Turtle
Beluga Whale
Blue Whale
Bowhead Whale
Finback Whale
Humpback Whale
Sperm Whale.
None of the animals identified above are listed for the Ketchikan Gateway Borough. Most are
associated with coastal marine environments or the northern Alaska Regions, and therefore
outside the range of this project given its location approximately ¾ of a mile inland.
o Biomass will only be purchased from vendors who practice sustainable harvesting
techniques.
• Wetlands and other protected areas
O The Gateway Borough Recreation and Schools Central Heating Plant is intended to be
located on a lot adjacent to Schoenbar Creek, an anadromous stream. USACE and ADF&G
approval will likely be necessary during the permitting phase of this project.
O Biomass will only be purchased from vendors who practice sustainable harvesting
techniques.
• Archaeological and historical resources
o Construction will take place within the footprint of existing facility sites that have been
occupied and disturbed for a period in excess of forty years, with the overall site largely disturbed
during construction of the Gateway Aquatic Center in 2013. Given the extensive disturbance and
habitation within recent history, it is unlikely the site retains any aspects of historical significant.
• Land development constraints
o None anticipated
• Telecommunications interference
o None anticipated. Infrastructure will be at height with surrounding buildings.
• Aviation considerations
o None anticipated. Infrastructure will be at height with surrounding buildings.
• Visual and Aesthetic Considerations
o None anticipated. While the site has several highly visible and picturesque structures,
including the Gateway Aquatic Center/Gateway Recreation Center and both schools, there is
sufficient room and available vegetative screening so as to minimize any aesthetic disturbance
resulting from the construction of the Gateway Borough Recreation and Schools Central Heating
Plant.
5.4 Existing and Proposed Energy System
Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as
planned.
5.4.1 Basic Configuration of Existing Energy System
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Describe the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
Buildings to be integrated into the Gateway Borough Recreation and Schools Central Heating Plant
Design have existing systems as follows:
● Schoenbar Middle School: (2) oil-fired boilers (1.358 MBH each), installed in 2004 (approx..),
66% efficiency (Per Heating System Retrofit Analysis by Alaska Energy Engineering, LLC)
● Gateway Recreation Center: (2) Weil McLain/788 oil-fired boilers (1,632 MBH), installed 1995
(Per Sheet M.01 of the Indoor Recreation Center planset by Kumin Associates, Inc.)
● Gateway Aquatic Center: (2) 520 kW/hr electric boilers, (1) 1,700 MBH fuel oil boiler, installed
2012, 96% efficiency, also used for heating the pools (Identified as Base Case - Alternative #2 per
Ketchikan Aquatic Center Alternative Energy Study by AMC Engineers)
● Ketchikan Gateway Borough School District Maintenance Facility: (1) oil-fired boiler (417
MBH) and high temperature distribution system (300 MBH), installed 1988, 68%, (Per Heating
System Retrofit Analysis by Alaska Energy Engineering, LLC)
● Valley Park School: (3) oil-fired boilers in a MacLaine 478 (400 MBH) and two WM 588’s
(1084 MBH) operated in a primary-secondary-tertiary arrangement, installed in 2001, 68%
efficiency (Per Heating System Retrofit Analysis by Alaska Energy Engineering, LLC)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other ● Schoenbar Middle School: (2) oil-fired boilers
(1.358 MBH each), installed in 2004 (approx..), 66%
efficiency (Per Heating System Retrofit Analysis by
Alaska Energy Engineering, LLC)
● Gateway Recreation Center: (2) Weil
McLain/788 oil-fired boilers (1,632 MBH each),
installed 1995 (Per Sheet M.01 of the Indoor
Recreation Center planset by Kumin Associates,
Inc.)
● Gateway Aquatic Center: (2) 520 kW/hr electric
boilers, (1) 1,700 MBH fuel oil boiler, installed 2012,
96% efficiency, also used for heating the pools
(Identified as Base Case - Alternative #2 per
Ketchikan Aquatic Center Alternative Energy Study
by AMC Engineers)
● Ketchikan Gateway Borough School District
Maintenance Facility: (1) oil-fired boiler (417 MBH)
and high temperature distribution system (300
MBH), installed 1988, 68%, (Per Heating System
Retrofit Analysis by Alaska Energy Engineering,
LLC)
● Valley Park School: (3) oil-fired boilers in a
MacLaine 478 (400 MBH) and two WM 588’s (1084
MBH) operated in a primary-secondary-tertiary
arrangement, installed in 2001, 68% efficiency (Per
Heating System Retrofit Analysis by Alaska Energy
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
vi. is there heat recovery and is it operational?
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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Engineering, LLC)
b) Annual O&M cost
i. Annual O&M cost for labor $ 16,940
ii. Annual O&M cost for non-labor $ 779,570
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh] 0
ii. Fuel usage
Diesel [gal] 0
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 75,000
ii. Electricity [kWh] 4,542,000
iii. Propane [gal or MMBtu] 0
iv. Coal [tons or MMBtu] 0
v. Wood [cords, green tons, dry tons] 0
vi. Other 0
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
The Ketchikan Gateway Borough recognizes that fuel prices are currently depressed. Should the
low oil prices continue for an extended period of time, the payback period for the biomass boiler
project is extended. However, fluctuations in the oil rates render it impossible to predict the actual
payback period of this project, until the project has been constructed and is operational.
5.4.3 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. For PCE eligible communities, please describe the expected
impact would be for both pre and post PCE.
This project will have no measurable impact on the local electrical rates over the lifetime of the
project. Industrial users, including Heatherdale Mining and Ucore Rare Metals, are currently
identifying the economic viability of projects on nearby Prince of Wales Island. In the event that
either mine is determined to be viable, excess electrical capacity will determine whether Ketchikan
is to be their ultimate location for performing the ore processing. Use by the Gateway Aquatic
Center for heating is not the highest and best use given the potential for industrial purposes.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Integration plan
• Delivery methods
Per the Bear Valley Central Heat Plant concept developed by R&M Engineering – Ketchikan, Inc.,
attached as Exhibit B-3, the project will require boilers able to handle a load totaling 24.87
MMBTu/yr. The design phase of this project will determine the appropriate sizing and controls for
the proposed biomass boiler system to provide lead and lag load heating for each facility, and
determine the extent to which existing fuel oil boilers will remain in operation to cover downtime
and shoulder loads.
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity (Wind,
Hydro, Biomass, other)
[kW or MMBtu/hr]
25.17-MMBtu/hr Biomass Consumption (wood pellets)
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 27,100 kWh
ii. Heat [MMBtu] 25,293,622,828 MMBtu
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c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
2,203 tons pellets
iv. Other 3,750 gallons of fuel oil
227,100 kw/hr
5.4.5 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
Existing Direct Digital Controls (DDC) by which the Ketchikan Gateway Borough School District
operates and monitors the heating systems at the various school facilities will be integrated with
the operating controls for the Central Biomass Boiler Complex. Hardware and software necessary
to monitor pump operations and cycling, calls for heating, boiler stop/start cycles, and temperature
controls will be installed as a component of this project.
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SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel,
operation and maintenance, and capital costs over the life of the proposed project).
6.1.1 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings, and how the people of
Alaska will benefit from the project. The benefits information should include the following:
• Anticipated annual and lifetime fuel displacement (gallons and dollars)
• Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
• Additional incentives (i.e. tax credits)
• Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
The economic model used by AEA is available
at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. This
economic model may be used by applicants but is not required. The final benefit/cost ratio used
will be derived from the AEA model to ensure a level playing field for all applicants. If used, please
submit the model with the application.
Bioenergy facility construction produces multiple positive effects for a region or locality in which the
facility is built.
Firstly, it will displace the use of heating oil in the project’s effected area. Over a 20 year lifespan,
the proposed system would displace over 1.45 Million gallons of diesel fuel and 82 MW/hr in
electricity. Per the attached cost benefit analysis, including plant replacement costs, the Borough
is anticipated to save some $4-million over the next twenty years if implemented.
Engineering and construction jobs will also be created during plant construction, and jobs for
personnel to manage and operate the facility are also created. Indirect jobs and industries also
benefit from the feedstock and other supply materials logistical requirements of the facility. The
facility support impacts spread further and affect more industries than the facility itself. Known as
multipliers, these effects are often far greater than the direct production of the facility.
Ketchikan Gateway Borough will give local construction contractors preferential bidding status
through the design process, to provide specific local building code and design conditions
experience to the team. This will locally distribute funding dollars throughout the project. A number
of qualified firms are available to provide construction contracting services to the project through
the construction phase.
Upon completion, the project is expected to create several direct full time positions for each facility
in the form of qualified boiler operators. Additional job creation benefits will spread far into the
community, including local pellet fuel providers, forest industry, civil and electrical facility
maintenance services, and other local industries. A region-wide expansion to pellet fuel heat can
produce cost savings on the order of $2.1 billion in cumulative net worth over a 50-yr period while
increasing job opportunities and reinvesting capital directly into the community. Per the McDowell
Group, for every 5 positions directly created through new economic activity, an additional 1.15
indirect positions will also be created. As the Borough’s intention is to become the anchor client for
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a local pellet production industry, the vast majority of the economic activity generated will be within
the community.
Finally, a wood pellet boiler system has significant positive benefits relative to greenhouse gas and
CO2 emissions. First, conceptually, biomass heat is a “cleaner” source of energy, as the carbons
storage utilized for heating is being restored on a continual basis, as opposed to fossil fuels, in
which case the carbon storage is effectively removed for all time. Moreover, Ketchikan is located
amidst a myriad of potential biomass sources, such as longstanding logging operations on Prince
of Wales Island, occasional resource extraction projects from the USFS and State of Alaska, and
local site development and the resultant wood waste byproducts. All petroleum fuel sources are
required to be shipped to southeast Alaska, requiring a significant carbon footprint on top of their
development cost. The removal of wood wastes from clearcut areas may also promote the
regrowth of logged areas as a sustainable long-term source of wood resources and fuel.
6.1.2 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
• Potential power purchase/sales price - at a minimum indicate a price range
• Proposed rate of return from grant-funded project
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant-funded project.
N/A. The intended recipient of the generated heat will be the Ketchikan Gateway Borough School
District as a subset of the Ketchikan Gateway Borough per Ketchikan Gateway Borough Code
2.35.020, and the Ketchikan Gateway Borough itself. At present, total energy usage throughout
these facilities consists of 75,000-gallons of fuel oil and 4,542,000 kW/hr annually.
6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
N/A
Renewable energy resource availability (kWh per month) n/a
Estimated sales (kWh) n/a
Revenue for displacing diesel generation for use at private sector businesses ($) n/a
Estimated sales (kWh) n/a
Revenue for displacing diesel generation for use by the Alaskan public ($) n/a
6.2 Financing Plan
Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant-
funded phase and has considered options for financing subsequent phases of the project.
6.2.1 Additional Funds
Identify the source and amount of all additional funds needed to complete the work in the phase(s)
for which REF funding is being applied in this application. Indicate whether these funds are
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secured or pending future approvals. Describe the impact, if any, that the timing of additional
funds would have on the ability to proceed with the grant.
No additional funds have been determined at this time for the scope of work included in this
request.
6.2.2 Financing opportunities/limitations
If the proposed project includes final design or construction phases, what are your opportunities
and/or limitations to fund this project with a loan, bonds, or other financing options?
The Ketchikan Gateway Borough has the ability to seek bond funding for this project, subject to the
acceptance of the Assembly and School Board and a successful vote by the public during the
general election or a special election.
Historically, a project of this nature likely would have qualified for bond funding reimbursed at a
rate of up to 70% by the State of Alaska Department of Education and Early Development: the
State of Alaska’s fiscal condition limits the ability for the Ketchikan Gateway Borough d/b/a KGBSD
to secure this funding. Nonetheless, the Ketchikan Gateway Borough is committed to aggressively
seeking other financing options where available.
6.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The Ketchikan Gateway Borough possesses several available methods for addressing potential
cost increases, including use of School District CIP or Recreation CIP funds. In the event there is
a shortfall in funding, the regular budgeting process will determine from where excess needed
funds may be drawn.
6.2.3 Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
In the event the feasibility study determines this project is viable, upon completion of the design the
Borough intends to submit a subsequent request for grant funding through AEA for construction.
6.3 Other Public Benefit
Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone
will not be presumed to be in the best interest of the public.
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
• The project will result in developing infrastructure (roads, trails, etc.) that can be used for
other purposes
• The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
• The project will solve other problems for the community (waste disposal, food security, etc.)
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• The project will generate useful information that could be used by the public in other parts
of the state
• The project will promote or sustain long-term commercial economic development for the
community
Bioenergy facility construction produces multiple positive effects for a region or locality in which the
facility is built.
Firstly, it will displace the use of heating oil in the project’s effected area. Over a 20 year lifespan,
the proposed system would displace over 2.20 Million gallons of diesel fuel, worth nearly $8 Million
in today’s dollars. This displacement will save the Borough over 600 thousand dollars in direct fuel
costs.
Engineering and construction jobs will also be created during plant construction, and jobs for
personnel to manage and operate the facility are also created. Indirect jobs and industries also
benefit from the feedstock and other supply materials logistical requirements of the facility. The
facility support impacts spread further and affect more industries than the facility itself. Known as
multipliers, these effects are often far greater than the direct production of the facility.
Per the Ketchikan Gateway Borough Code, there are provisions allowing the preferential bidding
status of local contractors. Moreover, the intended design will included locally sourced materials
where possible. Where possible, the intent is to enable the local distribution of funding dollars
through the construction process. It is anticipated the prime contracting or any of the
subcontracting work will be performed by local, qualified firms throughout the construction phase.
Upon completion, the project is expected to create several direct full time positions for each facility
in the form of qualified boiler operators. Additional job creation benefits will spread far into the
community, including local pellet fuel providers, forest industry, civil and electrical facility
maintenance services, and other local industries. A region-wide expansion to pellet fuel heat can
produce cost savings on the order of $2.1 billion in cumulative net worth over a 50-yr period while
increasing job opportunities and reinvesting capital directly into the community. Per the McDowell
Group, for every 5 positions directly created through new economic activity, an additional 1.15
indirect positions will also be created. As the Borough’s intention is to become the anchor client for
a local pellet production industry, the vast majority of the economic activity generated will be within
the community.
Finally, a wood pellet boiler system has significant positive benefits relative to greenhouse gas and
CO2 emissions. First, conceptually, biomass heat is a “cleaner” source of energy, as the carbons
storage utilized for heating is being restored on a continual basis, as opposed to fossil fuels, in
which case the carbon storage is effectively removed for all time. Moreover, Ketchikan is located
amidst a myriad of potential biomass sources, such as longstanding logging operations on Prince
of Wales Island, occasional resource extraction projects from the USFS and State of Alaska, and
local site development and the resultant wood waste byproducts. All petroleum fuel sources are
required to be shipped to southeast Alaska, requiring a significant carbon footprint on top of their
development cost. The removal of wood wastes from clearcut areas may also promote the
regrowth of logged areas as a sustainable long-term source of wood resources and fuel.
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SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
Include at a minimum:
• Capability of the Applicant to demonstrate the capacity, both administratively and financially, to
provide for the long-term operation and maintenance of the proposed project
• Is the Applicant current on all loans and required reporting to state and federal agencies?
• Likelihood of the resource being available over the life of the project
• Likelihood of a sufficient market for energy produced over the life of the project
•
Proposed business structure:
• Gateway Borough Recreation and Schools Central Heating Plant will not require a
complicated business structure, as the resources for this project are entirely within the ownership
of the Borough. The Borough does not intend to sell heat, so billing and business structures and
reimbursements will not be necessary. All supplies and contractual services purchased during this
project and through the subsequent operation will be per the Ketchikan Gateway Borough’s
procurement procedures.
How you propose to finance the maintenance and operations for the life of the project:
• Maintenance and operations of the Gateway Borough Recreation and Schools Central
Heating Plant will be financed through a combination of regular budgeting by the Ketchikan
Gateway Borough and through the School District’s regular budgetary process, in which funds
come from the State of Alaska Department of Education and Early Development to be matched by
local funds.
Operational Costs:
• Wood pellet acquisition will be borne by the applicant comparable to the procurement
currently in place for fuel for the diesel boiler systems. Preliminary statements from local vendors
indicate the material may be purchased from local suppliers at a rate of $300/ton of pellets for a
period of five years.
Operational issues:
• A period of adjustment during which the maintenance staff familiarize themselves with the
wood pellet boiler system is anticipated. In advance of that period, the administrative staff have
been examining comparable systems, both locally and within the northwest, and consulted with
energy engineers to identify known operational issues (i.e. clinkers, boiler load requirements, etc.)
in order to minimize frustration during startup.
Commitment to reporting the savings and benefits:
• The Ketchikan Gateway Borough and Ketchikan Gateway Borough School District are
committed to tracking costs associated with the use of the biomass boiler system and any other
economic metrics determined necessary by AEA to determine the impacts resulting from use of the
wood pellet boiler system. In addition, as determined necessary, Staff are committed to providing
operational data to AEA for use in studying the viability of wood biomass projects in Southeast
Alaska.
SECTION 8 – PROJECT READINESS
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 29 of 44 7/8/15
Specifically address your progress towards or readiness to begin, at a minimum, the following:
• The phase(s) that must be completed prior to beginning the phase(s) proposed in this
application
• The phase(s) proposed in this application
• Obtaining all necessary permits
• Securing land access and use for the project
• Procuring all necessary equipment and materials
• Improving the thermal energy efficiency of the building(s) to be served by the heat project
Prior to apply for grant funding from AEA, the Ketchikan Gateway Borough has taken multiple
steps to ensure project success. Third party engineering firms have been hired to perform energy
audits for all effected facilities, and to perform feasibility studies regarding construction of the
proposed biomass boilers. In 2013, a Heating System Retrofit Analysis by Alaska Energy
Engineering, LLC was performed on the Ketchikan Gateway Borough’s school facilities, for which
the Ketchikan Gateway Borough School District funded $15,000.
Multiple public bodies have recognized the viability of biomass use in heating as a conservation
measure: in May of 2013, the Borough received $129,210 in grant funding from the USFS Woody
Biomass Utilization Grant; during the Alaska Energy Authority Renewable Energy Fund Round VII
program, the Borough received $620,000; and the legislature awarded a direct legislative grant to
the Borough in the amount of $1,197,500. These have gone to fund the Ketchikan International
Airport and Ketchikan High School Biomass Boiler Projects: design is currently underway, with
additional partial funding from the Ketchikan Gateway Borough and School District.
In-kind participation from the Ketchikan Gateway Borough and Ketchikan Gateway Borough School
District will be provided by staff time necessary to oversee and internally manage the project.
Should this project be funded, the Borough can procure the services of a professional engineering
firm within a two-month window.
To date, no overall energy audit of the facilities has been performed. Facilities to be incorporated
include:
• The Ketchikan Gateway Recreation Center was constructed in 1996, and the adjoining
Ketchikan Aquatic Center was constructed in 2013: both meet the energy requirements per the
code under which they were constructed.
• Valley Park Elementary Schools Roof Replacement was performed in 2013, entailing the
removal of existing roofing and installation of 6” of rigid insulation with an EPDM covering: a net
increase of approximately 4” of rigid insulation to take the R-value from around 13 to around
39. This project cost a total of $1,730,243.
• Schoenbar Middle Schools Renovation was performed from 2003-2007, and completely gutted
and reconstructed the walls, roofs, and interiors of the structure: walls were brought up to R-21,
and roof insulation increased throughout, with the existing 1” rigid insulation being replaced
with 4” rigid or increased thickness batt insulation. Interior mechanical systems were all
replaced new at that time.
• The Ketchikan Gateway Borough School District Facility is the oldest facility in the study that
has not experienced any major upgrades.
It is anticipated that a variety of work items at each facility will be identified during the feasibility
study portion of the project. It will be necessary to determine if there are other work items that will
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 30 of 44 7/8/15
effectively reduce the energy consumption at the facility, thereby enabling the final design to be
reduced in size to more closely match the available heating loads.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. The Documentation of support must be dated within one year of the RFA date of July
7, 2015
Attached is Resolution 2610, a Resolution of the Ketchikan Gateway Borough Assembly stating its
support for the nomination of this project for funding through Round IX of the Renewable Energy
Fund grant program.
It should be noted that this community has stated support for the expansion of the biomass
program over several years. See attached letters of support from: David Martin, Assistant
Manager for the City of Ketchikan d/b/a Ketchikan Public Utilities, and Robert Boyle,
Superintendent of the Ketchikan Gateway Borough School District.
In addition, the Borough Assembly has supported the creation of a biomass industry in southern
southeast Alaska for many years. Per Resolution 2471-Amended, the Borough Assembly
approved urging the U.S. Forest Service to include “biomass as a use designated by the Land Use
Designation” in the Tongass Land Management Plan. See also Resolution 2505-A, supporting a
prior Renewable Energy Fund Grant, and Resolution 2552, supporting the submittal of the
Renewable Energy Fund Round VIII Grant application.
.
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority for
this or any other project. Describe the degree you have been able to meet the requirements of
previous grants including project deadlines, reporting, and information requests.
Funds towards assessing the project viability previously allocated towards this project include
$43,860.00 from the Ketchikan Gateway Borough and Ketchikan Gateway Borough School District
towards the Heating System Retrofit Analysis by Alaska Engineering, LLC in 2013.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of
prior phases.
Heating System Retrofit Analysis by Alaska Engineering, LLC in 2013
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 31 of 44 7/8/15
Bear Valley Central Heat Plant by R&M Engineering – Ketchikan, Inc. dated January 31, 2012.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 33 of 44 7/8/15
EXHIBIT A-1:
Contact Information:
Owner:
Ketchikan Gateway Borough
1900 First Ave.
Ketchikan, AK 99901
• Borough Manager: Dan Bockhorst, danb@kgbak.us, (907) 228-6641
• Assistant Borough Manager: Deanna Garrison, deannag@kgbak.us (907) 228-6633
• Project Manager: Alex Peura – Public Works Director, alexp@kgbak.us, (907) 228-6664
• Finance Director: Cynna Gubatayo, cynnag@kgbak.us, (907) 228-6649
• Controller: Maureen Crosby, maureenc@kgbak.us, (907) 228-6624
• Administrative Personnel: Amy Briggs – Administrative Assistant II, amyb@kgbak.us, (907)
228-6637
Operator:
Ketchikan Gateway Borough School District
333 Schoenbar Road
Ketchikan, AK 99901
• School District Superintendent: Robert Boyle, Robert.Boyle@kgbaksd.org, (907) 225-2118
• School District Maintenance: Mike Williams, Department Head,
Mike.Williams@kgbaksd.org, (907) 225-2416
Design Engineer
Wisewood, Inc.
Pellet Supplier (Proposed):
Tongass Forest Enterprises
ATTN: Trevor Sande
355 Carlanna Lake Road, Suite 100
Ketchikan, AK 99901
info@akforestenterprises.com
(907) 225-4541
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 36 of 44 7/8/15
EXHIBIT B-1:
• Letters of support:
o Robert Boyle, Superintendent, Ketchikan Gateway Borough School District
o David Martin, Assistant General Manager, City of Ketchikan d/b/a Ketchikan Public
Utilities
o US Forest Service Issue Paper dated April, 2014 by Daniel Parrent
Woody Biomass Energy in Alaska
Issue Paper
April 2014
Background
According to the U.S. DOE Energy Information Administration, biomass accounted for more than 53% of all
renewable energy consumed in the U.S. in 2010, with “wood and derived fuels” contributing ~25% of the
total (http://www.eia.gov/renewable/annual/trends/pdf/table1.pdf). Alaska recognized this potential
and has dramatically increased the number of wood-fired boilers in the State in recent years.
Wood fuel has several environmental advantages over fossil fuel. The main advantage is that wood is a
home-grown, locally available, renewable resource offering a sustainable, dependable supply. Other
advantages include the fact that the net amount of carbon dioxide (CO 2 ) emitted during the burning process
is ~90% less than when burning fossil fuel. Wood fuel contains minimal amounts of sulfur and heavy metals.
It does not contribute to acid rain pollution and particulate emissions are controllable.
Issues
Seventeen percent of all U.S. forest land is located in Alaska. While parts of Alaska are treeless tundra, ice
fields and mountains, much of Alaska is heavily forested.
• For the forest landowner/manager, biomass utilization can provide opportunities to mitigate the costs
associated with pre-commercial thinning, hazardous fuels reduction, forest restoration, and habitat
enhancement (moose, deer and salmon are important sources of protein for many rural Alaskans).
• For the forest products industry, biomass markets can mean new, or more profitable, local opportunities to
utilize processing by-products, such as sawdust and bark.
• For communities, biomass fuels can save facility operators money, create and sustain local jobs, and
reduce local economic leakage (i.e., keep energy dollars in the community)
There are more than 100 communities in Alaska that are only accessible by air or water. The prices of
petroleum fuels in these communities are among the highest in the nation. Heating oil prices in some remote
communities, where winter temperatures can reach -60oF, exceed $10.00 per gallon due largely to
transportation costs. Some villages have had to close public libraries, community centers, and auxiliary
school facilities, such as pools and gymnasiums, because they cannot afford to heat them.
Biomass boiler (far left) with oil-fired back up boilers (center and right) Small diameter, low-value wood suitable for use as wood fuel
Woody Biomass Energy in Alaska Page 2 of 2
Issue Paper
April 2014
Programmatic Efforts
1. With Economic Action Program (EAP) funding from 2004–2008, Alaska Region State & Private Forestry
was a key participant in the Alaska Wood Energy Development Task Group (AWEDTG), which was created
to explore opportunities to increase the utilization of wood for energy in Alaska. With new Federal and
matching State funds, AWEDTG was reinstituted in 2011. Additional funding was provided by a Statewide
Wood Energy Team grant in 2013. A competitive application program was created, and selected private,
public and not-for-profit applicants can receive initial feasibility assessments for heating local facilities with
wood. More than 100 preliminary feasibility assessments have been conducted to date. A number of
applicants from previous years have gone on to apply for and receive funding for engineered designs,
construction, or both. There are ~25 non-industrial biomass heating now installed and operating in Alaska
2. USDA agencies, led by the Forest Service and Rural Development, have been directed to develop a strategy
known as the Tongass Transition Framework to help Southeast Alaska communities transition to a more
diversified economy. Renewable energy, forest restoration, and young-growth forest management are a few of
the components of the transition strategy. In partnership with the State Division of Forestry and U.S. Coast
Guard, work on the Southeast Alaska Wood-to-Energy Initiative began in October 2012. Staff are providing
direct technical assistance, conducting public outreach and education, and drafting a strategy document to
convert 30 percent of southeast Alaska’s heating oil consumption to biomass over the next 10 years.
Recent Accomplishments
In Alaska, wood biomass heating systems have already been successfully installed in a number of non-industrial
facilities. The first large non-industrial biomass system was commissioned in Craig, Alaska in April 2008. The
system provides heat to the Craig elementary and middle schools and the nearby community pool. Using 4 to 5
thousand pounds of mill residues daily, the system saves the community ~$85,000 annually in heating costs.
Some other operational systems include:
• Sealaska Corporation office building in Juneau, AK
• Schools in Tok, Delta Junction, Tetlin, Tanana, Thorne Bay, and Coffman Cove
• Washeteria and city offices in Tanana, AK
• Ionia Community Center in Kasilof, AK
• District heating system in Gulkana, AK
• USDA Forest Service, Southeast Alaska Visitor Information and Discovery Center in Ketchikan, AK
• Ketchikan Public Library in Ketchikan, AK
• GSA Federal office building in Ketchikan, AK
• University of Alaska, Fort Yukon Campus, Fort Yukon, AK
• Galena Senior Center, Galena, AK
Several more biomass heating systems are currently in development, including:
• Chilkoot Indian Association, Haines, AK – Pellet plant designs (2013 WBU grant)
• Fort Yukon School, Gymnasium, Vocational Education Center and Health Clinic, Fort Yukon, AK
• Ketchikan, AK – Heating system designs for the airport and high school (2013 WBU grant)
• Haines, AK – Biomass conversions at 10 city facilities including school and pool
• City of Nulato, AK - water plant/washeteria/school (2012 Woody Biomass Utilization Grant recipient)
• Fort Greely, U.S. Army, Delta Junction, AK
More Information
Daniel Parrent, Program Manager–Biomass Utilization & Forest Stewardship, USDA Forest Service,
State & Private Forestry, Alaska Region, (907) 743-9467, djparrent@fs.fed.us.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 37 of 44 7/8/15
EXHIBIT B-2:
• Resolution 2470 – authorization the application for and acceptance of a grant from the U.S.
Department of Agriculture, Forest Service, State and Private Forestry, for wood energy
projects that require engineering services.
• Resolution 2471 – comments on the U.S. Forest Service Five Year review of its 2008
Tongass Land and Resource Management Plan
• Resolution 2505-Amended – authorization the application for and of a grant from AEA for
construction of wood energy projects at the Ketchikan International Airport and Ketchikan
High School
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 39 of 44 7/8/15
EXHIBIT B-3:
Bear Valley Central Heat Plant, conceptual design and cost/benefit analysis by R&M Engineering –
Ketchikan, Inc. dated January 31, 2012
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 40 of 44 7/8/15
EXHIBIT B-4:
Heating System Retrofit Analysis by Alaska Engineering, LLC, dated 2013 – Select pages with
relevant facilities highlighted.
fi
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Heating System Retrofit Analysis
Ketchikan Gateway Borough
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Final Report
February, 2013
Prepared by:
Alaska Energy Engineering LLC
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau,Alaska 99801 jim @alaskaenergy.us
Table of Contents
Section 1: Executive Summary
Heating Retrofit Options 3
Life Cycle Cost Analysis 4
Summary 9
Section 2: Introduction
Heating Retrofit Alternatives 14
Methodology 15
Heating Options 21
Section 3: Heating System Retrofit Analysis
Ketchikan High School 27
Revilla High School 30
Schoenbar Middle School 33
Fawn Mountain Elementary School 36
Houghtaling Elementary School 39
Point Higgins Elementary School 42
Valley Park Elementary School 44
Operations and Maintenance Facility 47
Ketchikan International Airport 49
Appendix A: Ketchikan High School Calculations
Appendix B: Revilla High School Calculations
Appendix C: Schoenbar Middle School Calculations
Appendix D: Fawn Mountain Elementary School Calculations
Appendix E: Houghtaling Elementary School Calculations
Appendix F: Point Higgins Elementary School Calculations
Appendix G: Valley Park Elementary School Calculations
Appendix H: Operations and Maintenance Facility Calculations
Appendix I: Ketchikan International Airport Calculations
Appendix J: Tongass Forest Enterprises' Proposal
Ketchikan Gateway Borough 1 Heating System Retrofit Analysis
1
Project Team
Project Manager/Energy Engineering
Jim Rehfeldt,P.E.,Mechanical Engineer
Alaska Energy Engineering LLC
25200 Amalga Harbor Road
Juneau,Alaska 99801
907.789.1226
jim @alaskaenergy.us
Mechanical Engineering
Doug Murray, P.E.,Mechanical Engineer
Murray&Associates,P.C.
P.O.Box 21081
Juneau,Alaska 99802
907.780.6151
dougm @murraypc.com
Electrical Engineering
Mark Morris,P.E., Electrical Engineer
Morris Engineering Group,LLC
P.O. Box 210049
Auke Bay AK 99821-0049
907.789.3350
mark @morrisengineeringgroup.com
Architecture
Wayne Jensen,AIA,Architect
Jensen Yorba Lott, Inc.
522 West 10t Street
Juneau,Alaska 99801
907.586.1070
wayne@j ensenyorbalott.com
Ketchikan Gateway Borough 2 Heating System Retrofit Analysis
Section 1
Executive Summary
This report presents an engineering assessment and life cycle costs analysis of options to retrofit the
heating systems in Ketchikan Gateway Borough. The intent of this analysis is to determine if there is
financial incentive to invest in different heating systems for the following buildings:
Ketchikan High School Revilla High School
Schoenbar Middle School Fawn Mountain Elementary School
Houghtaling Elementary School Point Higgins Elementary School
Valley Park Elementary School Operations and Maintenance Facility
Ketchikan International Airport
Heating options that are considered for each building include electric boilers, wood boilers,ground-
source heat pumps, and air-source heat pumps.All of the buildings are currently heated with fuel oil
boilers. Under the status quo option,this would continue. Under the other options,the fuel oil boilers
are retained for redundancy, energy source flexibility,and to reduce the installed capacity and cost of
the alternative heating system while ensuring sufficient heat during cold weather.
HEATING RETROFIT OPTIONS
Electric Boilers
Electric boilers are readily integrated into the exiting fuel-oil heating systems. The building electric
service must be large enough to support the load or a new service is needed. Ketchikan has sufficient
hydroelectric capacity only during the months of September and October. The analysis is based on
operating electric boilers during these months and fuel oil boilers the rest of the year.
Wood Boilers
Wood boilers are capable of burning a variety of wood fuel including pellets, chips, disks, and
cordwood. Of these fuel sources, only pellets are currently commercially available in consistent
quality and sufficient quantity to be considered as a reliable fuel source for the buildings.
Pellet boilers integrate well with the fuel-oil boiler heating systems. They burn clean once they
achieve operating temperature, can fit in the space of a fuel oil boiler, and in many installations can
use the same chimney. Where space limitations occur, they can also be supplied as a containerized,
packaged system and be located outside the building.Pellet storage can be either inside the building
for smaller plants where space is available or in outdoor storage silos.
Heat Pumps
Heat pumps are a desirable retrofit because they have 2-3 times the conversion efficiency of the boiler
options,which reduces the amount of purchased energy and the long-term effect of energy inflation.
Hydronic heat pumps,which can produce 120°F heating water, are not compatible with most of the
existing heating systems because they require 180°F heating water. The exception is Fawn Mountain
Elementary School which has a radiant floor that operates at lower temperatures.
Ketchikan Gateway Borough 3 Heating System Retrofit Analysis
Air-side heat pumps are a viable retrofit for existing ventilation systems. This application does not
convert the entire building to heat pumps but transfers some of the largest ventilation loads from fuel
oil to heat pump heating.
Cost of Heat Comparison
The following chart provides a 20-year heating cost comparison for the different energy sources. The
widening gap between the cost of fuel oil heat and the other sources is the primary driver for
conversion to other heating sources. The conversion efficiency of heat pumps offers the greatest
protection from future energy inflation.
120.00
Cost of Heat Comparison
Electric Inflation @2.5%
Fuel Oil Inflation @ 6.6%
100.00 Wood Pellet Inflation @ 3. 7%
Fuel Oil Boiler Heat @ 72%efficiency
Electric Boiler Heat @ 95%efficiency
80.00
Pellet Boiler Heat @ 70%efficiency
Air-source Heat Pump @ 225%efficiency
Ground-source Heat Pump @ 290%efficiency2 $60.00 -
40.00 -
20.00 -
0.00
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031
Year
LIFE CYCLE COST ANALYSIS
The life cycle cost analysis compares the construction,maintenance, and energy costs of heating the
buildings with each heating options.The table at the end of this section provides an abbreviated scope
and sizing for each of the heating retrofit options.
Ketchikan High School
The analysis determined that the status quo and wood boiler options have the lowest life cycle cost.
These options have a life cycle cost of$7.0M+/-0.3%,which is essentially equal when estimating
and forecasting costs for 20 years.
The relatively high heating requirement allows the wood boiler system to generate sufficient
energy savings to offset the cost of conversion.
The wood boiler will not fit in the mechanical room; in keeping with the standards of the facility,
it will be located in an addition onto the boiler room.
The air source heat pump option does not generate sufficient energy savings to offset its
construction and maintenance costs.
Ketchikan Gateway Borough 4 Heating System Retrofit Analysis
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Ketchikan High School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 0 $78,000 $6,941,000 $7,019,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,541,000 $7,697,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,189,000 $7,001,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,091,000 $7,436,000
Note: Bold indicates lowest life cycle cost.
Revilla High School
The analysis determined that retaining the fuel oil boilers(status quo)has the lowest life cycle cost.
The wood boiler and air source heat pump have the next lowest life cycle cost.The most relevant
finding is:
The relatively low heating requirement does not allow the alternative systems to generate
sufficient energy savings to offset the cost of conversion.
Two small capacity wood boilers are required;they will be located in a new boiler room
constructed in the crawlspace under the building.
The air source heat pump option does not generate sufficient energy savings to offset its
construction and maintenance costs.
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Revilla High School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 56,000 57,900 $482,200 $596,100
Electric and Fuel Oil Boilers 206,700 40,400 $478,800 $725,900
Wood Pellet and Fuel Oil Boilers 291,100 63,800 $359,400 $714,300
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 $477,000 $716,400
Note: Bold indicates lowest life cycle cost.
Schoenbar Middle School
The status quo fuel oil boiler option has the lowest life cycle cost.The wood pellet boiler and air
source heat pump have the next lowest life cycle costs. The most relevant findings are:
These options have a life cycle cost of$1.8M+/-2%,which is very close when estimating and
forecasting costs for 20 years.
The wood boiler will fit in the boiler room.
Ketchikan Gateway Borough 5 Heating System Retrofit Analysis
The air source heat pump option does not generate sufficient energy savings to offset its
construction and maintenance costs. The electric boiler is unable to offset the cost of construction
due to the small amount of heat it provides in the two moths when surplus power is available.
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Schoenbar Middle School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 0 $58,000 $1,711,000 $1,769,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,677,000 $1,997,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,254,000 $1,812,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,454,000 $1,819,000
Note: Bold indicates lowest life cycle cost.
Fawn Mountain Elementary School
The analysis determined that retaining the status quo fuel oil boilers has the lowest life cycle cost.
The air source heat pump option has the next lowest life cycle cost.The most relevant findings are:
The relatively low heating requirement does not allow the alternative systems to generate
sufficient energy savings to offset the cost of conversion.
The wood boiler will be containerized and located adjacent to the boiler room.
The ground source heat pump is able to supply 60%of the heating load. This does not allow the
system to generate sufficient energy savings to offset the construction costs of a loopfield.
The air source heat pump option does not generate sufficient energy savings to offset its
construction and maintenance costs.
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Fawn Mountain Elementary School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 0 $58,000 $1,281,000 $1,339,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,238,000 $2,028,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $931,000 $1,558,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $668,000 $2,307,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,297,000 $1,511,000
Note: Bold indicates lowest life cycle cost.
Ketchikan Gateway Borough 6 Heating System Retrofit Analysis
Houghtaling Elementary School
The analysis determined that retaining the fuel oil boilers(status quo)has the lowest life cycle cost.
The air source heat pump option has the next lowest life cycle cost. The most relevant findings are:
The relatively moderate heating requirement does not allow the alternative systems to generate
sufficient energy savings to offset the cost of conversion.
The wood boiler will fit into the boiler room.
The air source heat pump option does not generate sufficient energy savings to offset its
construction and maintenance costs.
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Houghtaling Elementary School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 0 58,000 $ 914,000 $972,000
Electric and Fuel Oil Boilers 571,000 40,000 $882,000 $1,493,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $673,000 $1,258,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $ 866,000 $1,209,000
Note: Bold indicates lowest life cycle cost.
Point Higgins Elementary School
The analysis determined that the wood boiler option has a slightly lower lowest life cycle cost than
the status quo fuel oil boiler option. The most relevant findings are:
All of the options have a life cycle cost of$2.0M+/-3%,which is very close when estimating and
forecasting costs for 20 years.
The relatively moderate heating requirement does generate sufficient energy savings to offset the
cost of conversion.
The wood boiler will fit into the existing boiler room.
The electric boiler will fit in the boiler room; a new electric service is required. The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Point Higgins Elementary School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,756,000 $1,904,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,689,000 $2,259,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,285,000 $1,887,000
Note: Bold indicates lowest life cycle cost.
Ketchikan Gateway Borough 7 Heating System Retrofit Analysis
Valley Park Elementary School
The analysis determined that retaining the fuel oil boilers(status quo)has the lowest life cycle cost.
The electric boiler option has the next lowest life cycle cost. The most relevant findings are:
The relatively moderate heating requirement does not allow the alternative systems to generate
sufficient energy savings to offset the cost of conversion.
The wood boiler will fit into the existing boiler room.
The air source heat pump option does not generate sufficient energy savings to offset its
construction and maintenance costs.
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Valley Park Elementary School Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 0 58,000 $1,300,000 $1,358,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,251,000 $1,707,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $986,000 $1,537,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,317,000 $1,514,000
Note: Bold indicates lowest life cycle cost.
Operation and Maintenance Facility
The analysis determined that retaining the fuel oil boilers(status quo)has the lowest life cycle cost.
The electric boiler option and the wood boiler option have the next lowest life cycle cost. The most
relevant findings are:
The relatively low heating requirement does not allow the alternative systems to generate
sufficient energy savings to offset the cost of conversion.
The wood boiler will be located in a container adjacent to the boiler room.
The electric boiler will fit in the boiler room;the electric service can support the load. The
electric boiler is unable to offset the cost of construction due to the small amount of heat it
provides in the two moths when surplus power is available.
Operations and Maintenance Facility Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 39,000 38,000 $ 296,000 $372,000
Electric and Fuel Oil Boilers 186,000 32,000 $ 264,000 $482,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $233,000 $483,000
Note: Bold indicates lowest life cycle cost.
Ketchikan Gateway Borough 8 Heating System Retrofit Analysis
Ketchikan International Airport
The status quo fuel oil boiler option has the lowest life cycle cost. The wood boiler option has the
next lowest life cycle cost and the electric boiler has the highest life cycle cost.
All of the options have a life cycle cost of$2.0M+/-3%, which is very close when estimating and
forecasting costs for 20 years.
The wood boiler will be fit in the existing boiler room with the pellet silo located in the parking
area adjacent to the building.
The electric boiler will fit in the boiler room; a new electric service is required.The electric boiler
is unable to offset the cost of construction due to the small amount of heat it provides in the two
moths when surplus power is available.
Ketchikan International Airport Results
Option Construction Maintenance Energy Total
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,594,000 $2,000,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,496,000 $2,057,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,287,000 $2,024,000
Note: Bold indicates lowest life cycle cost.
SUMMARY
The following table provides a summary ranking of the heating retrofit options for each building.
Heating Retrofit Ranking Summary
Building First Second Third Fourth
Ketchikan High School Wood Boiler/Fuel Oil Boiler' Air Source HP Electric Boiler
Revilla High School Fuel Oil Boiler Wood Boiler/Air Source HP Electric Boiler
Schoenbar Middle School Fuel Oil Boiler Wood Boiler Air Source HP Electric Boiler
Fawn Mountain Elem School Fuel Oil Boiler Air Source HP Wood Boiler Electric Boiler
Houghtaling Elem School Fuel Oil Boiler Air Source HP Wood Boiler Electric Boiler
Point Higgins Elem School Wood Boiler Fuel Oil Boiler Electric Boiler n/a
Valley Park Elem School Fuel Oil Boiler Air Source F P Wood Boiler Electric Boiler
Operations/Maint Facility Fuel Oil Boiler Electric Boiler Wood Boiler n/ a
Ketchikan Airport Fuel Oil Boiler Wood Boiler Electric Boiler n/a
1. These two options have essentially the same life cycle cost.
Sensitivity Analysis
A sensitivity analysis is provided to determine how the findings may change with modest variations
in energy inflation. In a few of the buildings,the lowest life cycle cost option does not change under
any scenario. In buildings where the baseline comparison is close,the result changes with variations
in energy inflation.
Ketchikan Gateway Borough 9 Heating System Retrofit Analysis
The sensitivity analysis also includes a case where pellet costs are less than currently available.
Tongass Forest Enterprises of Ketchikan has proposed a reduction in the price for premium-grade
pellets if the KGBSD is willing to enter into a 1-5 year contract. This proposal is included in
Appendix J.
A close review of the sensitivity analysis reveals that there are no instances where the energy inflation
variations overwhelmingly lead to a different conclusion. The sensitivity analysis generally supports
the findings of the base case.
Sensitivity Analysis—Lowest Life Cycle Cost Option
Building Base High Low High Low High Low Lower
Case FO FO Elec Elec Pellet Pellet Pellet Cost
Ketchikan High School WB/FO' WB FO WB/FO WB/FO' FO WB WB
Revilla High School FO FO FO FO FO FO FO FO
Schoenbar Middle School FO WB FO FO FO FO WB WB
Fawn Mountain Elem School FO FO FO FO FO FO FO FO
Houghtaling Elem School FO FO FO FO FO FO FO FO
Point Higgins Elem School WB WB FO WB WB FO WB WB
Valley Park Elem School FO WB FO FO FO FO FO FO
Operations/Maint Facility FO FO FO FO FO FO FO FO
Ketchikan Airport FO WB FO FO FO FO WB FO
1. These two options have essentially the same life cycle cost.
FO=Fuel Oil Boiler;WB=Wood Boiler
Base Case: Fuel Oil 6.6%,Electricity 2.5%,Pellets 3.7% High FO(Fuel Oil) Inflation Case @ 8%;
Low FO(Fuel Oil)Inflation Case @ 4.8% High Electricity Inflation Case @ 4%
Low Electricity Inflation Case @ 1% High Wood Pellet Inflation Case @ 5%
Low Wood Pellet Inflation Case @ 2.75% Lower Wood Pellet Cost @$275-$290 per ton
Discussion
A fuel oil boiler system is the traditional system for heating buildings in Southeast Alaska. It is a
proven technology and is well supported. Electric boilers are also common and are a proven
technology.Retaining the existing heating systems or adding an electric boiler are both tried and true
options.
To determine if a wood boiler is preferred requires a fundamental understanding of wood heating
systems. They require a higher investment, considerably more maintenance, a greater hands-on
ownership role, and the equipment has a shorter service life—wood boilers last 20 years,fuel oil and
electric boilers 35 years. While the technology has improved remarkably in recent years,wood
heating is not a better way to heat buildings.
This analysis is inherently focused on a highly relevant metric; does the alternative provide sufficient
energy savings to offset the investment and maintenance costs and make it worth the challenges and
potential risks.A known metric of 10%savings appears to be applicable to this study.
This analysis shows that for seven of the buildings,there is no financial incentive to invest in an
alternative heating system. The other buildings also do not meet the 10%savings threshold:
Ketchikan High School: Wood boiler offers 0.3%savings
Ketchikan Gateway Borough 10 Heating System Retrofit Analysis
Point Higgins Elementary School: Wood boiler offers a 1%savings.
Conclusion
The project team has derived the following conclusions about each option from our work
conceptualizing and analyzing heating retrofits for each building.
General
The life cycle cost of several heating options for the High School, Schoenbar,Point Higgins, and
Valley Park are within a few percent of each other.This indicates that there is no option that
generates significant savings. It also indicates that there is not a strong economic incentive to
retrofit the heating system.
Status Quo Options
All of the existing heating plants are well maintained and appear to be capable of operating
throughout their expected service life.
The heating systems at Revilla High School,Point Higgins Elementary School,Operations and
Maintenance Facility, and the Ketchikan Airport will require upgrades at the end of their service
life.Applying replacement funds toward the retrofit options typically improves the economics.
However,only Point Higgins provides an economic incentive to retrofit the heating system.
Electric Boiler Options
The lack of year-round availability of surplus hydroelectric power limits the electric boilers'
potential energy savings. If hydroelectric power is available year-round—through conservation,
higher winter inflows,or more hydroelectric storage—this would be the lowest cost option for 7
of the 8 buildings.
The electric boiler option requires a new electric service in several of the buildings. This added
cost significantly reduces the economic incentive to install electric boilers.
Wood Boiler Options
Pellet boilers can be readily retrofit into the buildings and integrate well with the existing
systems.
The wood boiler options require the greatest investment and the most maintenance. Sufficient
long-term energy savings is an essential outcome to provide incentive to invest in the system(s).
Prior to investing in a wood heating system,a long-term contract with a pellet supplier is
recommended to reduce the investment risk.
A Wood Energy Resource Study has not been developed for Southeast Alaska that concludes that
wood pellets will maintain their lower price differential to other energy sources over the life of
the wood boiler.
Heat Pump Options
While some of the heat pump options compete favorably with the other options,none are able to
offset their construction costs.This illustrates the difficulty of integrating heat pumps into
existing buildings that were not designed for low temperature heating.
The project team greatly appreciates the assistance and technical support that was provided by the
Ketchikan Gateway Borough School District administration and maintenance departments.Their
expertise and inherent knowledge of the buildings and heating systems was invaluable to our efforts.
Ketchikan Gateway Borough 11 Heating System Retrofit Analysis
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Section 2
Introduction
This report presents an engineering assessment and life cycle costs analysis of options to retrofit the
heating systems in Ketchikan Gateway Borough School District buildings.The intent of this analysis
is to determine if there is financial incentive to invest in different heating systems for the following
buildings:
Ketchikan High School Revilla High School
Schoenbar Middle School Fawn Mountain Elementary School
Houghtaling Elementary School Point Higgins Elementary School
Valley Park Elementary School Operations and Maintenance Facility
Ketchikan International Airport
The analysis is performed by Jim Rehfeldt,P.E. of Alaska Energy Engineering LLC and Doug
Murray,P.E.,of Murray &Associates PC with technical assistance from:
Electric Engineering: Mark Morris,P.E.,Morris Engineering Group LLC
Architectural: Wayne Jensen,AIA,Jensen Yorba Lott Inc.
HEATING RETROFIT ALTERNATIVES
Heating options that are considered for each building include electric boilers, wood boilers,ground-
source heat pumps,and air-source heat pumps. There are numerous factors that determine the
systemic and economic viability of the retrofit options including age of the existing heating system,
ease of retrofit,and energy consumption.
Fuel Oil Boilers
All of the buildings are currently heated with fuel oil boilers.Under the status quo option,this would
continue. Under the other options,the fuel oil boilers are retained for redundancy, energy source
flexibility, and reduce the installed capacity and cost of the alternative system while ensuring
adequate heat during cold weather.
Electric Boilers
Electric boilers can be easily integrated into the exiting fuel-oil heating systems. The boilers are
reliable,require little maintenance,and are compact in size.The capacity of the building electric
service must be considered in determining the retrofit cost.
Electric heat is currently less expensive than fuel oil heat.However, electric heating loads are quickly
depleting the hydroelectric surplus of the Southeast Alaska Power Agency( SEAPA)service area,
which includes Ketchikan. The analysis is based on operating the electric boiler only when there is
sufficient hydroelectric capacity. SEAPA has determined that only during the months of September
and October when reservoirs are near capacity there is sufficient hydroelectric capacity to operate
electric boilers.During the remaining months,the building will be heated by the fuel oil boilers.
Ketchikan Gateway Borough 14 Heating System Retrofit Analysis
Wood Boilers
Wood boilers are capable of burning a variety of wood fuel including pellets,chips, disks, and
cordwood. Of these fuel sources, only pellets are currently commercially available in consistent
quality and sufficient quantity to be considered as a reliable fuel source for the buildings.As other
sources become viable in Ketchikan, local entrepreneurs can use the findings of this analysis to
determine if they can produce a product that will reduce the heating costs of the buildings.
Pellet boilers integrate well with the fuel-oil boiler heating systems.They burn clean once they
achieve operating temperature, may fit in the space of a fuel oil boiler, and in many installations can
use the same chimney. They can also be supplied as a packaged system and located outside the
building.Pellet storage can be either inside the building for smaller plants where space is available or
outside for larger plants. Consideration must be given to locating a pellet storage silo and routing of
augers to transfer the fuel from the silo to the boiler.
Heat Pumps
Heat pumps are a desirable retrofit because they have 2-3 times the conversion efficiency of the boiler
options. They transfer heat from the environment to the building which reduces the amount of
purchased energy and the long-term effect of energy inflation. Options include air-source heat pumps
which extract heat from outside air, and water-source,which extract heat from water circulating in
closed pipe loops buried in the ground. Both air-source and water-source heat pumps can produce
hydronic heating water(water-side)or heat ventilation air( air-side).
Retrofitting hydronic heat pumps into the existing schools is challenging.A heat pump produces
120°F heating water,significantly lower than the 180°F temperature that the existing heating units
require. For a hydronic heat pump to be considered,additional heating capacity must be added to the
terminal units and piping systems,which is too expensive to justify the conversion. The exception is
buildings with in-floor radiant heat, such as Fawn Mountain Elementary School. The floor heat is
typically designed for a maximum of 120°F water,which integrates easily with the heat pump output
temperature.
Air-side heat pumps are most viable as retrofits for existing ventilation systems. This does not convert
the entire building but can switch some of the largest loads from fuel oil to heat pump heating.
Both air-side and water-side heat pumps can extract heat from the ground or ambient air. Ground
source requires installing pipe loops in the ground which transfer ground heat to the heat pumps.Air-
source heat pumps extract heat from outside air,even on the coldest day,to heat the building.
METHODOLOGY
The purpose of this study is to compare the life cycle cost of retaining the existing heating systems
with retrofit options. The heating options are evaluated using life cycle cost analysis which compares
construction,maintenance, and energy costs of the heating options over a 20-year period. The
findings are highly sensitive to the economic factors and energy costs used for the analysis. Future
energy inflation can significantly affect the findings,yet there is no authority for these values. For this
reason,a sensitivity analysis will be used where base case, low, and high values for electricity,fuel
oil, and wood pellet inflation are evaluated.
Ketchikan Gateway Borough 15 Heating System Retrofit Analysis
Economic Factors
The following economic factors are used in the analysis:
Economic Period: The economic period is set at 20 years with all costs based on 2013
construction.
Nominal Interest Rate: This is the nominal rate of return on an investment,without regard to
inflation.The KGBSD estimates that bonds for the heating retrofits will have a 4.5%to 5.5%rate
of return. The analysis uses a rate of return of 5.25%.
Inflation Rate: The Consumer Price Index has risen at a rate of 2.9%over the past 20-years. The
State of Alaska predicts general inflation of 2.5-3%per year. The analysis is based on a 2.75%
rate of inflation over the 20-year economic period.
Electricity
The Southeast Alaska Power Agency( SEAPA)manages the Swan Lake and Tyee Lake hydroelectric
facilities which supply the majority of the power to the communities of Ketchikan,Petersburg,and
Wrangell. The reservoirs typically spill in the fall, draft through the winter(reservoir levels drop), and
then begin refilling with the spring rains and snowpack thaw.
The three communities have seen significant load growth from electric heat conversions. This has
caused SEAPA to restrict energy and power to Ketchikan, as Petersburg and Wrangell have primacy
over Tyee Lake power.
Additional hydroelectric generation will be constructed at Whitman Lake,which will increase the
amount of surplus power, but will not significantly increase the amount of storage available to supply
the winter electric load. There are also other possible hydroelectric generation possibilities, including
raising the height of the Swan lake dam,which will increase storage for the winter electric load.
The KGBSD is interested in electrically heating their buildings only during periods when there is
surplus power. This approach will reduce school district energy costs while also increasing the
utility's revenues. SEAPA predicts that the service area has surplus power during September and
October. However,KPU thinks that it is in the long-term interest of the community to retain surplus
power to entice economic growth.To that end,KPU is considering electric heating disincentives
within the rate structure.
Since the community has yet to endorse any rate increases or electric heating disincentives,the
analysis is based on the current rate structure and SEAPA's prediction on surplus power availability.
This is viewed as the maximum potential utilization of an electric boiler.
Current Cost
Electricity is supplied to the buildings by Ketchikan Public Utilities under their commercial service
rate. This rate charges for both electrical consumption(kWh)and peak electric demand(kW).
Electrical consumption is the amount of energy consumed and electric demand is the rate of
consumption. The following table shows the current rates.
Ketchikan Gateway Borough 16 Heating System Retrofit Analysis
Ketchikan Public Utilities Commercial Service
Charge Rate
Electricity($/kWh) 0.0897
Demand($/kW) 2.91
Customer Charge($/month) 36.30
The effective cost of electricity when energy, demand,and customer charges are summed is 100 per
kWh.A recent Cost of Service study recommended across the board rate increases of 3.4%. The
analysis is based on current rates plus a 3.4%rate increase.
Future Inflation
Base Electric Case: The recommended rate increase of 3.4%equates to less than 1%per year
inflation since the last rate increase,which is also the historical average.However,increasing electric
heating loads have caused KPU to supplement with diesel generation when lake levels have dropped
too low or there is insufficient peak hydropower during cold weather.Additional investment is also
needed to increase distribution capacity to serve the winter peak loads. These factors will lead to
higher rates. For this reason,an electric inflation rate of 2.5%is used in recognition of the higher cost
burden electric heating loads have on the utility.
High Electric Case: If fuel oil prices continue to rise, load growth due to electric heating loads will
increase. This scenario will result in greater diesel supplementation in the short-term and possible
construction of additional hydroelectric generation as a long-term measure. Higher electric rates will
result. The high case assumes these factors will result in an average electric inflation rate of 4%.
Low Electric Case: The low case assumes that load growth does not deplete the hydroelectric
surplus; electric rates continue at the historic inflation rate of 1%.
Fuel Oil
Current Cost
The KGBSD currently pays$3.06 per gallon for#2 heating oil.
Future Inflation
Base Fuel Oil Case: In recent years, fuel oil inflation has been very sporadic,with a decidedly
upward trend in prices. Looking at oil prices over a longer period will smooth out the data and
provides a longer-term assessment of future costs. Using this perspective over the past 25-years,fuel
oil inflation has averaged 6.6%per year.The base case assumes that future fuel inflation will
continue at this rate.
High Fuel Oil Case: There is potential for world oil demand to increase due to increased
consumption by developing countries and/or an increasing global economy.Disruption of the world
oil supplies could also affect supply,causing prices to rise. The high case assumes these factors and
others could cause fuel inflation to be higher than the base case at 8%per year.
Low Fuel Oil Case: The U.S. Energy Information Agency predicts fuel oil inflation of 4.8%per year
for the next 25-years. While this reference has historically under-predicted actual fuel oil inflation, it
is possible that future fuel oil inflation may be lower than the base case due to: new technologies that
increase oil field production;new sources such as oil sands; and efficiency gains that reduce global
oil demand.These factors and others could lead to less demand which would result in fuel oil
inflation lower than the base case at 4.8%per year.
Ketchikan Gateway Borough 17 Heating System Retrofit Analysis
Wood Energy
Supply Source
Wood heating of commercial and institutional buildings is increasing in use in the United States,but
the industry is in its relative infancy in Southeast Alaska.Boilers can burn pellets,chips, discs,
cordwood,and hog fuel (chopped wood). Of these energy sources,only pellets are manufactured to
known standards for energy content,moisture levels, ash content, etc.
Premium-grade pellets are currently the only suitable wood energy fuel for the buildings. They are
selected because they are manufactured to known quality standards and are currently commercially
available in Ketchikan. This selection does not exclude other local wood energy supplies from being
considered in the future if the KGBSD installs a wood heating system(s). Other sources that can
demonstrate the capability to supply wood heating energy in suitable quality and quantity, and offer a
life cycle savings,will be considered by the KGBSD.
The following institutional Ketchikan buildings are currently heating with wood pellets:
USFS Discovery Center: Tongass Forest Enterprises(TFE) of Ketchikan supplies wood pellets
from Pacific Northwest sources and local sources.
U.S. Federal Building: Pellets are manufactured in the Pacific Northwest and supplied by
Sealaska Corporation. TFE delivers the pellets under contract with Sealaska.
Sealaska Corporation,through their Sealaska Global Logistics subsidiary, is committed to distributing
wood pellets throughout Southeast Alaska. There are no local manufacturers that can meet the current
demand for Premium-grade pellets, so they purchase pellets from the Pacific Northwest and transport
them to communities in Southeast Alaska. The pellets are then delivered to the buildings.
TFE is in the startup phase of operating a wood pellet mill to manufacture local pellets. The company
intends to be a Premium-grade pellet source and is refining their process toward that goal.
Wood pellets are typically manufactured from the cutting and"waste"material from value-added
wood processing.There simply is no favorable economics to manufacturer pellets from trees without
other value-added production.TFE is based on this model where their primary business is wood
products, with pellets being a secondary product. Thus,the pellet supply is dependent upon
production of a steady stream of wood products that create sufficient dry material for manufacturing
pellets.TFE is working towards that goal.
Currently, Sealaska Global Logistics is the only established supplier of Premium-grade pellets in
Ketchikan. The analysis uses their price to evaluate the wood heating options. This does not exclude
any other supplier from bidding on future pellet supply contracts if they can meet the pellet
procurement requirements.
Current Costs
Sealaska has quoted a pellet price of$315 per ton for the school buildings. The longer delivery time
increases the price to$ 340 per ton for delivery to the airport.
Future Inflation
The recently released Southeast Alaska Integrated Resource Plan(IRP)lays out a goal to convert 30%
of the fuel oil heating load to wood heating. Unfortunately,the IRP does not provide or reference a
market analysis of future pellet inflation,information that is basic to performing a wood heating
analysis or making a long-term investment in a wood heating boiler.
Ketchikan Gateway Borough 18 Heating System Retrofit Analysis
Research on pellet pricing trends has failed to produce definitive information that can be used in
predicting the rate of inflation in a Southeast Alaska energy analysis. Local pellet production is
without history,with just one Ketchikan pellet mill in production for a few months.At this point, any
pricing should assume pellets will be imported from the Pacific Northwest.
The appendix contains notes from our efforts to research information concerning projections of future
wood heating inflation. While all of the states in the Pacific Northwest recognize wood heating as a
viable heating option, none of them have performed research on the long-term costs and sustainability
under various load growth scenarios. However, our extensive research gave us sufficient perspective
on price trends to predict future pellet inflation.
Baseline Case: Historic pellet inflation factored over 20 years has approximated the rate of general
inflation in the U.S. and in Europe, approximately 3%.In the shorter and more recent past(5-7 years)
pellet inflation for some mills has averaged 4.5 to 5 percent.The following examples were found:
Tongass Forest Enterprises,Ketchikan: Current contract with Federal Government includes a 5%
per year annual escalation factor.
Manke Lumber, Seattle: Price increases of-5%over the past 5 years.
Pellets in New England averaged 4.6%annual increase from 1998-2010.However, Charlie
Neibling of New England Wood Pellet recommends using 3%pellet inflation.
Case studies reviewed from Oregon,Montana and New England used inflation rates of 3. 0 to 4.25
percent.
From our research, a pellet inflation rate between 3%and 4.5%is defensible.This is a wide range that
reflects the lack of independent study that is needed to provide building owners pricing information
they need to evaluate the economics of wood heat.A pellet inflation rate of 3.7%is recommended.
Transportation accounts for half the cost of pellets delivered to Ketchikan. The fuel surcharge quoted
by Alaska Marine Lines is 20%of the shipping cost. The following calculation uses this breakdown
to determined that the sum of each of these factors returns a delivered inflation rate of 3.7%
Pellet Inflation=50%of total cost x 3.75%pellet inflation= 1.9%
Transportation(non-fuel)=80%of 50%of total cost x 2.75%general inflation= 1.1%
Transportation(Fuel)=20%of 50%total cost x 6.6%oil inflation= 0.7%
Total Pellet Inflation Rate= 3.7%
There are two sides to the issue of pellet inflation.A low inflation rate improves the short-term
economics of conversion.From a long-term perspective, a higher inflation rate improves pellet
manufacturer cash flow to cover increasing labor, material,and energy costs while offering incentive
to invest in production equipment. This in turn leads to competition,which hopefully leads to better
pricing.
High Case: If in the near term,pellets and fuel oil inflate at their base case predictions of 4%and
6.6%,the cost differential between them will increase in the future(see cost of heat graph below).
This will provide greater incentive to convert to wood heating and the increasing cost difference will
give pellet manufacturers an incentive to raise prices. Other factors that can lead to higher pellet costs
are localized supply reductions that have occurred from time to time.Because this is a regional
market the loss of one major supplier through fire or business shut-down can cause market
disturbance.A high case of 5%reflects these factors.
Ketchikan Gateway Borough 19 Heating System Retrofit Analysis
Low Case: If local pellet mill production develops,with competition, pellet prices for Southeast
Alaska consumers could see a reduction because of reduced shipping costs. Or, if a robust wood
products industry develops in Southeast Alaska,there will be more" waste"material that can be made
into pellets. If this were to happen,pellet inflation could remain at the historic inflation rate of 3%.
Lower Cost Case: Tongass Forest Enterprises has sent a letter(Appendix I)to the KGBSD offering a
lower price for pellets purchased under a 5 year contract. The quoted price is $275 per ton for a five
year contract of over 500 tons per year. This case assumes that the school district can enter into a
contract to purchase Premium-grade pellets for any or all of the schools.
Cost of Heat Comparison
The following chart provides a 20-year heating cost comparison for the different energy sources.The
widening gap between the cost of fuel oil heat and the other sources is the primary driver for
conversion to other heating sources.The conversion efficiency of heat pumps offers the greatest
protection from future energy inflation.
The table shows the relative cost of heat over time. In 2013 on left side of graph, fuel oil and electric
heat have the highest cost,pellet heat is slightly lower,and heat pump heat is much less expensive.
120.00
Cost of Heat Comparison
Electric Inflation @2.5%
100.00 reel Oil Inflation fl G. G%
Wood Pellet Inflation @ 3. 7%
Fuel Oil Boiler Heat @ 72%efficiency
80.00
Electric Boiler Heat @ 95%efficiency
M Pellet Boiler Heat @ 70%efficiency
60.00
Air-source Heat Pump @ 225%efficiency
Ground-source Heat Pump @ 290%efficiency
40.00
20.00 -
0.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031
Year
Summary
The following table summarizes the energy and economic factors used in the analysis.A sensitivity
analysis is also provided to determine how modest variations in energy inflation affect the results.
The following table shows the base,high and low case energy inflation that is applied to the analysis.
Ketchikan Gateway Borough 20 Heating System Retrofit Analysis
Summary of Economic and Energy Factors
Factor Rate or Cost Factor Rate or Cost
Nominal Discount Rate 5.25% Wood Pellets(2013) 315/ton
General Inflation Rate 2.75% Wood Pellet Inflation 2.75%,3.7%(Base),5%
Electricity 10.30 per kWh Fuel Oil 3.89/gallon
Electricity Inflation 1%,2.5%(base),4% Fuel Oil Inflation 4.8%,6.6%(Base),8%
1. The inflation rates for electricity,fuel oil,and pellet inflation are for the low,base,and high case.
HEATING OPTIONS
The buildings are currently heated with oil-fired boilers.Heating retrofit options for the buildings
include electric boilers, pellet boilers,air-source heat pumps, and ground source heat pumps. The
following discusses the heating systems that are most viable for the buildings.
Fuel Oil Boilers
Maintenance
The following maintenance requirements were derived from KGBSD maintenance records.
Daily: Inspection of heating plant operation; 5 min/day
Monthly: Check burner and fuel system;Check gaskets for unusual wear, overheating,and
leakage; 1.5 hours.
Annual:Drain boiler,check interior for scale,clean combustion surfaces,perform combustion
test,remove and clean low water cutoff probe, burner maintenance, replace any leaking elements
or element gaskets; 8 hours.
Annual Parts Allowance: $150 per year.
For fuel oil boilers that supply supplemental heat to wood boilers or heat pumps,the maintenance
requirements are assumed to be reduced by 50%.
Efficiency
Fuel oil boilers have full load combustion efficiency of 85%.Additional losses due to jacket heat loss,
cycling losses, and air flow up the flue cause the seasonal efficiency to be much lower. In addition,
multiple boiler plants have added jacket losses.The seasonal efficiency of each plant is was
determined to be between 70-75%.
Electric Boilers
Electric boilers are in use throughout Ketchikan and are easily retrofitted into existing buildings.The
boilers are supplied with controls to stage the heating elements and minimize demand charges.
Manufacturers
Precision
Lattner
Sussman
Ketchikan Gateway Borough 21 Heating System Retrofit Analysis
Maintenance
Daily: Inspection of heating plant operation; 3 min/day
Monthly: Check elements and gaskets for unusual wear, overheating,and leakage. Check fuses
and elements with ohm meter for proper values; 30 minutes.
Annual: Drain boiler, check interior for scale. Clean control panel of dust,check tightness of
conductors, spot check torque element flange bolts, check condition of contactors, check all
wiring, check hand hole/manhole gaskets,check float operations, remove and clean low water
cutoff probe, replace any leaking elements or element gaskets;4 hours.
Every Five Years: Replace or repair equipment. Replace element, contactors,floats,frayed or
brittle wiring, and/or low water cutoff probe;4 hours.
Annual Parts Allowance: $75 per year.
Efficiency
Electric boilers experience jacket losses of approximately 1%of their capacity. Since heating loads
average about 20%of the peak load,this results in a seasonal efficiency of 95%.
Wood Heating Plants
Wood heating plants require increased space for the equipment including the boiler vessel and
ancillary equipment,fuel storage containers, and heating water storage/buffer tank. Wood boilers
have more moving parts and will require additional operational and maintenance time(O&M)over
the existing oil-fired heating plants.
Critical factors in wood plant operation and efficiency in order to achieve the expected service life of
the equipment are uniform fuel size,quality, including lack of impurities,moisture content stability,
and sizing equipment so it operates optimally.
The boilers that we have preliminarily considered are 0. 5-1.5 million BTU per hour range. The
equipment has a verifiable performance history; most can burn either pellets or chips with fully
automated fuel delivery, and have been installed in existing Alaskan locations. The selected
manufacturers will support their products in Alaska and have manufacturing plants in the United
States.
Manufacturers
The following manufacturers are used as the basis of this analysis.
ACT Bioenergy
SolaGen
Messersmith
Wood Master
Total Energy Solutions.
Ketchikan Gateway Borough 22 Heating System Retrofit Analysis
Maintenance
The KGBSD will develop the necessary expertise to maintain the boilers in-house.
Small Capacity: The following maintenance requirements are based on OkoFen boiler recommended
practices.
Daily: Visual inspection of the heating plant; 5 minutes.
Monthly: Check critical functions,remove ash and clinkers,repairs;2 hours.
2000 Maintenance: Inspections, lubing,burner maintenance, internal critical function checks,
possible equipment replacement; 2.5 times per year,4 hours.
Annual Parts Allowance: $150 per year.
Large Capacity: The following maintenance requirements are based on ACT boiler recommended
practices.
Daily: Visual inspection of the boiler; 10 minutes.
Monthly: Check critical functions,remove ash and clinkers,repairs; 2.5 hours.
Biannual: Inspections, lubing,burner maintenance, internal critical function checks,possible
equipment replacement;2x per year, 8 hours.
Annual Parts Allowance: $250 per year.
Storage Sizing
Pellets are currently delivered in Ketchikan by Tongass Forest Products using a 10 ton truck. Pellet
delivery time would be roughly the same for any load up to the size of the delivery truck so the silo
should be sized to take advantage of the one delivery time for maximum economic efficiency.A
reasonable safety factor before delivery would be 20-30%, so storage silos will be sized between 12-
15 tons capacity depending on size of the boiler.
Boiler Efficiency
For our analysis,AEE has applied our experience in fuel oil boiler efficiency to wood boilers.Both
burn fuel to produce heat and are subject to the same thermodynamic principals. The relevant metric
is the difference between wood boiler efficiency and fuel oil boiler efficiency. The following is a
general comparison of the two heating systems:
Combustion Losses: This is the manufacturer's test data on the losses up the chimney. It is for a
new boiler installed under test conditions, operating at full load.No actual boiler plant can
achieve this efficiency because they also have jacket losses,cycling losses, and distribution
losses. Furthermore,no boiler remains brand new and is installed,tuned,and operated under
optimal conditions throughout its lifespan. Many energy studies—including studies performed
and commissioned by reviewers of this analysis—share this common misperception and wrongly
use these values for boiler plant efficiency.
In our comparison of wood boilers to fuel boilers, a wood boiler has documented lower
combustion efficiency than a fuel oil boiler. Over-time,the heat transfer surfaces in a wood boiler
are also more coated with combustion byproducts, further reducing their average heat transfer
coefficient.
Ketchikan Gateway Borough 23 Heating System Retrofit Analysis
Jacket Losses: Jacket losses are the heat loss from the exterior surfaces of the heating plant.
Data on fuel oil boiler plants show losses of 1-3%of the gross boiler capacity. Since a typical
school boiler has a 30%load factor,actual jacket losses are 4- 12%, and is highly dependent upon
sizing the boiler to the actual loads.
Wood boilers have higher jacket losses because they are larger and have more heat loss surface
area than a fuel oil boiler of the same capacity. In addition,wood boiler plants typically have a
large hydronic heating water storage tank that significantly increases the heat transfer area of the
plant.
Cycling Losses: These are the losses that occur when a boiler sits idle and loses heat up the
chimney and when a boiler purges prior to firing. Cycling can account for 2- 10%loss in boiler
efficiency.
When a wood boiler starts, it bypasses the combustion gases around the heat exchanger until the
boiler comes up to temperature. This loss of heat is not experienced by oil boilers. Some of this
loss is offset by the modulating nature of the wood boiler, which minimizes on-off cycles.A
wood boiler system also has a storage tank which significantly increases the thermal mass of the
heating system,reducing on-off cycles. Overall, a wood boiler is likely to have lower cycling
losses than a single on-off oil boiler,but higher cycling losses than a modulating dual fuel oil
boiler plant.
Operational Losses: A wood boiler does not respond quickly to the dynamic nature of heating
loads in commercial buildings.A wood boiler may take 30-45 minutes to build up a fire to supply
sufficient heat for the normal morning warm-up period of a school building.This will require the
warm-up period to start earlier and in stages to bring the building up to temperature by the
required time,which decreases the efficiency of the wood heating system.A wood boiler is also
likely to overshoot once the building is up to temperature,as it cannot regulate downward until it
bums the full load of fuel in the combustion chamber.
Each of these losses is applied to the boiler efficiency calculation. The seasonal efficiency of each
plant is was determined to be between 67-71%with an average of 2-3%below the existing fuel oil
boilers.
Geothermal Heat Pumps
Geothermal heating systems transfer heat from the ground to the building using a heat pump.A
vertical loopfield is typically more viable than horizontal fields because it requires less land area. The
loopfield typically consists of vertical HDPE pipe loops installed in 6"diameter boreholes.The
piping is manifold together into horizontal piping from the building.
The heat pumps utilize a modulating rotary screw or scroll drive or magnetic induction drive water-
to-water(W-W)heat pumps for hydronic heating and packaged water-to air( W-A)units for air
heating. They have an upper hydronic heating water temperature of 120°F,which is governed by the
refrigeration cycle.
The potential for retrofitting the buildings with a geothermal heat pump system depends upon two
critical factors:
The existing 180°F hydronic heating system must be retrofitted by replacing terminal units and
heating coils or adding additional units so they can deliver sufficient heat using 120°F heating
water.
There must be sufficient land area in close proximity to locate a geothermal loopfield.
Ketchikan Gateway Borough 24 Heating System Retrofit Analysis
Geothermal systems have high installation costs for the loopfield. In addition, the building may
require significant retrofit of the hydronic heating system to deliver sufficient heat at 120°F heating
temperatures.For the system to provide sufficient savings to offset these costs, a large portion of the
existing heating load must be shifted to the heat pump. Of the buildings in this study,only Fawn
Mountain Elementary School which is radiant floor heated is a viable geothermal candidate.
Manufacturers
The following manufacturers form the basis of the analysis:
Carrier
McQuay
Trane
Maintenance
The KGBSD will develop the necessary expertise to maintain the heat pumps in-house.
Daily: Check condenser coils,basic inspection, 7 minutes.
Monthly: Check condenser coil and clean as necessary,30 minutes.
Every Three Months: Check all refrigerant valves and joints for leaks,repair as necessary;30
minutes.
Annual: Check all electrical connections,tighten as necessary,check transducers,replace as
necessary,check accuracy of thermistors,replace as necessary, obtain and test oil sample,check
concentration of antifreeze, clean cooler/heating tubes, check all strainers and filter driers for
pressure drops, replace as necessary: 8 hours.
Every Five Years: Replace compressor or other major component;4 hours.
Annual Parts Allowance: $250 per year.
Efficiency
There is no available information or data on the performance of geothermal heat pumps in Ketchikan.
Detailed analyses using computer energy models and geothermal sizing programs have been
performed for geothermal installations in Juneau.Those studies have determined a seasonal efficiency
of 275%,which is likely conservative given Ketchikan's warmer ground temperatures.
Air Source Heat Pumps
Technology gains in air source heat pumps have led to variable flow refrigerant systems that can
modulate to match the heating load.This improves system operation and efficiency. Traditionally,air
source heat pump capacity and efficiency decreased rapidly during cold weather when heating loads
are highest.According to manufactures literature variable flow units and dual compressors have been
able to operate satisfactorily at colder temperatures.
Cold climate heat pumps are not in wide use in Southeast Alaska—their use is increasing—and there
is no available operating data to assess their real-time performance.As such,the following concerns
must be addressed prior to choosing air-source heat pumps:
The outdoor unit extracts heat by cooling outside air.This can cause moisture in the air to
condense and freeze on the coil surface.Defrost cycles will occur regularly to defrost the coil and
keep the system operating optimally. While air-source heat pumps are successfully heating
buildings in coastal Alaska,there is still insufficient information on the defrost performance of
the systems.
Ketchikan Gateway Borough 25 Heating System Retrofit Analysis
There are only a few commercial buildings in coastal Alaska that are heated with air-source heat
pumps. The technology has evolved so that they can efficiently heat,even during cold weather,
but we do not have long-term data verifying that they perform as advertised in terms of
efficiency, annual maintenance, and service life.
The outdoor unit will generate noise and mitigation is necessary so it is not objectionable.
Preferable,the outdoor unit is placed in an enclosure that provides noise mitigation and protects it
from blowing snow.
Air-to-water heat pumps can heat building through low temperature distribution systems.Most
existing buildings with fuel oil boilers have high temperature systems. Converting to heat pumps
requires also converting the heating units so they can deliver sufficient heat using lower temperature
water.
Manufacturers
The following manufacturers form the basis of the analysis:
Daikan
Mitsubishi
Maintenance
The KGBSD will develop the necessary expertise to maintain the heat pumps in-house.
Daily: Check condenser coils, basic inspection; 10 minutes.
Monthly: Check condenser coil and clean as necessary; 30 minutes.
Every Three Months: Replace filters on indoor units, check operation of condensate drain/drain
pump and float switches if applicable;40 minutes.
Annually: Clean outdoor condenser coils and inspect for damage, clean indoor unit evaporator
coils, check all refrigerant valves and joints for leaks,repair as necessary, check all electrical
connections,tighten as necessary,check all resistors, check refrigerant charge, pressure settings,
check control boards; 8 hours.
Every Five Years: Replace compressor or other major component; 8 hours.
Annual parts Allowance: $300 per year.
Efficiency
There is no available information or data on the performance of air-source heat pumps in Ketchikan.
Detailed analyses using computer energy models and manufacturer's performance data has been used
for proposed installations in Juneau and Kodiak. Those studies have determined a seasonal efficiency
of 195%, which is likely conservative given Ketchikan's warmer temperatures.
Ketchikan Gateway Borough 26 Heating System Retrofit Analysis
Section 3
Heating System Retrofit Analysis
KETCHIKAN HIGH SCHOOL
Heating Retrofit Options
Status Quo
The existing heating plant consists of three fuel oil boilers connected to a primary/secondary
distribution system.The plant was constructed in the middle of the 1990's and has a remaining
service life of 20 years.Each boiler appears to be sized for 50%of the design load. There is no work
required to retain the plant for the next 20 years.
Electric Boiler Option
This option will remove one fuel oil boiler and convert to a dual fuel heating plant consisting of one
electric boiler and two fuel oil boilers. The scope of work is:
Remove one fuel oil boiler,header piping, circulating pump, and oil piping. Cap existing
chimney.
Install a 1500 kW electric boiler.
Install 60 feet of 6 inch dia.heating supply and return piping and primary circulation pump to
connect to existing 6 inch heating supply header in primary-secondary arrangement.
Install a new electrical service to supply the electric boiler and boiler pump
Connect to DDC controls
Wood Boiler Option
This option will remove one fuel oil boiler and convert to a dual fuel heating plant consisting of two
pellet boilers and two fuel oil boilers. The scope of work is:
Remove one oil-fired boiler header piping, circulating pump,and oil piping.
Construct 800 sq. ft. building to house two pellet fired boiler assemblies.
Install two medium capacities pellet fired boilers each with all components including intermediate
storage bin, ash collection bin,three burning blower motors with variable drives,exhaust fan on
combustion discharge, chimney,and controls. Install circulating pumps, accumulator tank,
valves.
Install 60 feet of 4"dia. heating supply and return piping from wood boilers to 6"dia.header and
then onto to 800 gallon Storage tank with 6"air separator for boiler header.
Install 100 feet of direct bury piping with 6"diameter heating supply and return piping to HS
Boiler room. Connect to existing 6"diameter header in HS boiler building.
Install two 20 ton exterior silos on a concrete pad,route main fuel bin augers to pellet boilers.
Install 2-phase service to new wood boiler building and supply the wood boilers, circulation
pumps, augers,and precipitators.
Connect to DDC controls.
Ketchikan Gateway Borough 27 Heating System Retrofit Analysis
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system is a high temperature (180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part,to a low temperature(120°F)system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: Supplemental heating with air source heat pumps serving ventilation
systems is feasible.This option will utilize air source heat pumps to heat ventilation air for two air
handling units with high outside air requirements(AHU-1 and AHU-7).The scope of work is:
Install two outdoor 10-ton air source heat pumps; locate the exterior heat pumps outside on the
north side. Route refrigerant piping between exterior and interior units through the ceiling
spaces.
Modify the outside air plenums for the two air handling units.
Locate two fan coil units(5 tons each)in the OSA plenums.
Install refrigerant piping between the outdoor unit and the fan coils.
Install electrical supply to the units.
Connect to DDC controls.
Life Cycle Cost Analysis
Baseline Case
The fuel oil boiler and wood boiler options have a life cycle cost of$7.0M+/-0.3%,which is
essentially equal when estimating and forecasting costs for 20 years. The air source heat pump and
electric boiler options have the highest life cycle cost.The air source heat pump option does not
compete well in this retrofit application.
Sensitivity Analysis
The sensitivity analysis illustrates the closeness of the life cycle costs of the options. Variations in
energy inflation cause the status quo and the wood boiler option to alternate in having the lowest life
cycle cost. The lower pellet cost option has the lowest life cycle cost.
Ketchikan Gateway Borough 28 Heating System Retrofit Analysis
Life Cycle Cost Analysis-Ketchikan High School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6. 6%.Electricity 2. 5%.Pellets 3. 7%
Status Quo: Fuel Oil Boilers 0 $78,000 $6,941,000 $7,019,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,541,000 $7,697,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,189,000 $7,001,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,091,000 $7,436,000
High Fuel Oil Inflation Case 0 8%
Status Quo: Fuel Oil Boilers 0 $78,000 $8,024,000 $8,102,000
Electric and Fuel Oil Boilers 1,095,000 $ 60,000 $7,430,000 $8,586,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,304,000 $7,115,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $8,186,000 $8,531,000
Low Fuel Oil Inflation Case nn,4.8%
Status Quo: Fuel Oil Boilers 0 $78,000 $5,794,000 $5,872,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $5,598,000 $6,754,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,068,000 $6,880,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $5,932,000 $6,277,000
High Electricity Inflation Case a,4%
Status Quo: Fuel Oil Boilers 0 $78,000 $6,944,000 $7,022,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,687,000 $7,843,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,197,000 $7,009,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,107,000 $7,452,000
Low Electricity Inflation Case 1%
Status Quo: Fuel Oil Boilers 0 $78,000 $6,939,000 $7,017,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,420,000 $7,575,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,183,000 $6,994,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,078,000 $7,423,000
High Wood Pellet Inflation Case(rii 5%
Status Quo: Fuel Oil Boilers 0 $78,000 $6,941,000 $7,019,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,541,000 $7,697,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,849,000 $7,661,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,091,000 $7,436,000
Low Wood Pellet Inflation Case 2.75%
Status Quo: Fuel Oil Boilers 0 $78,000 $6,941,000 $7,019,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,541,000 $7,697,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $4,771,000 $6,582,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,091,000 $7,436,000
Lower Wood Pellet Cost n,$ 275 per ton
Status Quo: Fuel Oil Boilers 0 $78,000 $6,941,000 $7,019,000
Electric and Fuel Oil Boilers 1,095,000 $60,000 $6,541,000 $7,697,000
Wood Pellet and Fuel Oil Boilers 1,713,000 $99,000 $5,034,000 $6,845,000
Air Source Heat Pump and Fuel Oil Boilers $231,000 $115,000 $7,091,000 $7,436,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 29 Heating System Retrofit Analysis
REVILLA HIGH SCHOOL
Heating Retrofit Options
Status Quo
The existing heat system consists of two fuel oil boilers and a high temperature distribution system.
The boilers are configured in a primary only pumping arrangement. The boilers were installed in
1984 installation and have seven years of remaining service life. The scope of work to replace the
boilers in 7 years is:
Replace the fuel oil boilers
Reconnect the heating piping, fuel piping, and chimney
Electric Boiler Option
This option will remove one fuel oil boiler and convert to a dual fuel heating plant consisting of one
electric boiler and one fuel oil boiler. The scope of work is:
Remove two fuel oil boilers,piping,existing chimney to stack,electrical,and oil piping.
Install one oil-fired boiler and one electric boiler,piping, electrical, circulation pump, and
connect to existing chimney and oil piping.
Install heating supply and return piping and circulation pumps provide a primary/secondary
piping arrangement.
Upgrade the electric service to the electric boiler. Install electrical to 3 devices.
Connect to DDC controls.
Replace the fuel oil boiler in 7 years.
Wood Boiler Option
This option will remove one fuel oil boiler and convert to a dual fuel heating plant consisting of two
pellet boilers and one fuel oil boiler.The scope of work is:
Remove two fuel oil boilers,piping,existing chimney to stack, electrical, and oil piping.
Install one oil-fired boiler and connect to existing heating piping, oil piping,and chimney.
Consider locating boiler in crawlspace in new boiler room enclosure.
Construct enclosure for new boiler room with exterior door in crawlspace with concrete floor.
Install two small capacity pellet boilers in tandem with an exterior pellet silo and flexible auger.
Install piping to connect the wood boiler to the heating system.
Route a 10"diameter wood boiler chimney to outside wall then up to above roof surface.
Optional suggestion utilize boiler direct vent to wall exhaust caps.
Install electrical to 6 devices.
Connect to DDC controls.
Replace the fuel oil boiler in 7 years.
Ketchikan Gateway Borough 30 Heating System Retrofit Analysis
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system has a high temperature(180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part,to a low temperature(120°F) system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: Supplemental heating with air source heat pumps serving ventilation
systems is feasible. This option will utilize air source heat pumps to heat ventilation air for air
handling unit HV-1 which has a high outside air requirement.The scope of work is:
Install two fan coil units in outside air plenums with refrigeration coil and route ductwork to Attic
Fan Room ventilating unit HV-1. Modify outside air plenums as required for fan coil placement.
Install a 6-ton air source heat pump outdoors on concrete pad to supply heating to outside air
system.
Route refrigerant ping from exterior heat pump to attic the two outdoor air fan coil units.
Install electrical to 5 devices.
Connect to DDC controls
Life Cycle Cost Analysis
Baseline Case
The status quo option has the lowest life cycle cost. The option has higher energy costs which are
more than offset by much lower construction costs.The wood boiler and air source heat pump options
have the next lowest life cycle cost.
Sensitivity Analysis
The status quo option has the lowest life cycle cost under all energy inflation scenarios, including the
lower pellet cost scenario.
Ketchikan Gateway Borough 31 Heating System Retrofit Analysis
Life Cycle Cost Analysis-Revilla High School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6. 6%.Electricity 2.5%.Pellets 3. 7%
Status Quo: Fuel Oil Boilers 56,000 57,900 $482,200 $596,100
Electric and Fuel Oil Boilers 206,700 40,400 $ 478,800 $ 725,900
Wood Pellet and Fuel Oil Boilers 291,100 63,800 $359,400 $714,300
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 $477,000 $716,400
High Fuel Oil Inflation Case 8%
Status Quo: Fuel Oil Boilers 56,000 58,000 $565,000 $678,000
Electric and Fuel Oil Boilers 207,000 40,000 $556,000 $803,000
Wood Pellet and Fuel Oil Boilers 291,000 64,000 $368,000 $723,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $ 558,000 $797,000
Low Fuel Oil Inflation Case nn,4.8%
Status Quo: Fuel Oil Boilers 56,000 58,000 $483,000 $597,000
Electric and Fuel Oil Boilers 207,000 40,000 $484,000 $731,000
Wood Pellet and Fuel Oil Boilers 291,000 64,000 $361,000 $716,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $478,000 $717,000
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 56,000 58,000 $497,000 $611,000
Electric and Fuel Oil Boilers 207,000 40,000 $430,000 $ 677,000
Wood Pellet and Fuel Oil Boilers 297,000 64,000 $365,000 $725,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $478,000 $717,000
Low Electricity Inflation Case rIi 1%
Status Quo: Fuel Oil Boilers 56,000 58,000 $482,000 $596,000
Electric and Fuel Oil Boilers 207,000 40,000 $475,000 $722,000
Wood Pellet and Fuel Oil Boilers 291,000 64,000 $ 358,000 $713,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $476,000 $716,000
High Wood Pellet Inflation Case 0 5%
Status Quo: Fuel Oil Boilers 56,000 58,000 $482,000 $596,000
Electric and Fuel Oil Boilers 207,000 40,000 $479,000 $726,000
Wood Pellet and Fuel Oil Boilers 291,000 64,000 $404,000 $759,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $477,000 $716,000
Low Wood Pellet Inflation Case @ 2.75%
Status Quo: Fuel Oil Boilers 56,000 58,000 $482,000 S596,000
Electric and Fuel Oil Boilers 207,000 40,000 $479,000 $726,000
Wood Pellet and Fuel Oil Boilers 291,000 64,000 $331,000 $686,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $477,000 $716,000
Lower Wood Pellet Cost @$290 per ton
Status Quo: Fuel Oil Boilers 56,000 58,000 $482,000 $596,000
Electric and Fuel Oil Boilers 207,000 40,000 $479,000 $726,000
Wood Pellet and Fuel Oil Boilers 291,000 64,000 $353,000 $708,000
Air Source Heat Pump and Fuel Oil Boilers 160,000 80,000 $477,000 $716,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 32 Heating System Retrofit Analysis
SCHOENBAR MIDDLE SCHOOL
Heating Retrofit Options
Status Quo
The existing heating plant consists of two oil-fired boilers connected in a primary-secondary
arrangement. The boilers appear to be sized for 70%of the design heating load.The plant has a
remaining service life of 28 years.There is no work required to retain the heating system for the next
20-years.
Electric Boiler Option
This option will remove one fuel oil boiler and convert to a dual fuel heating plant consisting of one
electric boiler and one fuel oil boiler. The scope of work is:
Remove fuel oil boiler,heating piping,boiler pump, existing chimney to stack,electrical, and oil
piping.
Install a 400 kW electric boiler and connect to existing electrical panel in Boiler Room.
Connect the boilers to the building distribution system in a primary/secondary arrangement.
Upgrade the electric service to the electric boiler. Install electrical to 3 devices.
Connect to DDC controls.
Wood Boiler Option
This option will remove one fuel oil boiler and convert to a dual fuel heating plant consisting of one
pellet boiler and one fuel oil boiler. The scope of work is:
Remove one of the fuel oil boilers and install a pellet boiler in its place. Connect the pellet boiler
breeching to the existing chimney.Modify the two existing boilers and header piping to deliver
heating water directly into a 400 gallon storage accumulator tank along with the wood fired boiler
in a primary-secondary piping arrangement. Install circulating pumps between the boilers and
storage tank.
Install pellet boiler assembly, intermediate storage bin, ash collection bin,three burning blower
motors with variable drives,exhaust fan on combustion discharge, and controls.
Install 20 ton exterior silo on concrete pad,route main fuel bin auger to pellet boiler.
Connect 12 inch diameter wood boiler chimney to existing stack.
Install 40 feet of 3"dia. heating supply and return piping from wood boiler to 4"dia. header and
to storage tank.
Install 50 feet of 4"dia.piping with second 4"air separator and trim for boiler header.
Install boiler circulating pumps, storage tank, valves, and air separator.
Install electrical to 4 devices.
Connect to building DDC controls.
Ketchikan Gateway Borough 33 Heating System Retrofit Analysis
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system has a high temperature(180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part,to a low temperature(120°F)system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: Supplemental heating with air source heat pumps serving ventilation
systems is feasible. This option looks at installing air source heat pumps to heat ventilation that is
supplied by AHU-1 and AHU-2.
AHU-1 Air Source Heat Pump Scope:
Install a 10-ton air source heat pump;locate outdoor unit on north side of school on concrete pad.
Route refrigerant piping through classrooms into the Fan room of AHU-1.
Modify AHU-1 outside air plenum ductwork.
Install two fan-coil units to deliver heat to outside air plenum.
Install electrical to 3 devices.
Connect to DDC controls.
AHU-2 Air Source Heat Pump Scope:
Install a 10-ton air source heat pump; locate outdoor unit on north side of school on concrete pad.
Route refrigerant piping through classrooms into the Fan room of AHU-2.
Modify AHU-2 outside air plenum ductwork.
Install two fan-coil units to deliver heat to outside air plenum.
Install electrical to 3 devices.
Connect to DDC controls.
Life Cycle Cost Analysis
Baseline Case
The status quo fuel oil boiler option has the lowest life cycle cost. The wood pellet boiler and air
source heat pump have the next lowest life cycle costs. These options have a life cycle cost of
1.8M+/-2%,which is very close when estimating and forecasting costs for 20 years.
Sensitivity Analysis
The sensitivity analysis determined that the status quo fuel oil boiler option has the lowest life cycle
cost under most of the energy inflation scenarios. The scenarios where other options have lower life
cycle cost are:
High Fuel Oil Inflation: The wood boiler option has the lowest life cycle cost.
Low Wood Inflation: The wood boiler option has the lowest life cycle cost.
Ketchikan Gateway Borough 34 Heating System Retrofit Analysis
Life Cycle Cost Analysis-Schoenbar Middle School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6.6%.Electricity 2.5%.Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,711,000 $1,769,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,677,000 $1,997,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,254,000 $1,812,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,454,000 $1,819,000
Hieh Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 0 $58,000 $2,002,000 $2,060,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,945,000 $2,265,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,284,000 $1,842,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,686,000 $2,051,000
Low Fuel Oil Inflation Case(I 4.8%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,405,000 $1,463,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,396,000 $1,717,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,223, 000 $1,781,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,211,000 $1,576,000
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,713,000 $1,771,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,697,000 $2,017,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,257,000 $1,815,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,471,000 $1,836,000
Low Electricity Inflation Case(a, 1%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,709,000 $1,767,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,661,000 $1,981,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,251,000 $1,809,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,440,000 $1,805,000
High Wood Pellet Inflation Case(a,,5%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,711,000 $1,769,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,677,000 $1,997,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,412,000 $1,970,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,454,000 $1,819,000
Low Wood Pellet Inflation Case @ 2.75%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,711,000 $1,769,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,677,000 $1,997,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,154,000 $1,712,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,454,000 $1,819,000
Lower Wood Pellet Cost(a,$290 per ton
Status Quo: Fuel Oil Boilers 0 $58,000 $1,711,000 S1,769,000
Electric and Fuel Oil Boilers 289,000 $32,000 $1,677,000 $1,997,000
Wood Pellet and Fuel Oil Boilers 478,000 $80,000 $1,231,000 $1,789,000
Air Source Heat Pump and Fuel Oil Boilers 260,000 $105,000 $1,454,000 $1,819,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 35 Heating System Retrofit Analysis
FAWN MOUNTAIN ELEMENTARY SCHOOL
Heating Retrofit Options
Status Quo
The heating system consists of two fuel oil boilers arranged in a single pass thru arrangement with
blend pumps around the boilers. The boilers and heating plant were installed in 2005 and has a
remaining service life of 30 years. There is no work required to retain the heating system for the next
20-years.
Electric Boiler Option
This option will convert to a dual fuel heating plant consisting of one electric boiler and two fuel oil
boilers. The scope of work is:
Remove existing boiler header piping and modify piping to primary-secondary arrangement with
new primary pumps.
Install a 320 kW electric boiler and connect to existing electrical panel in Boiler Room.
Install 40 feet of 3 inch dia. heating supply and return piping and primary circulation pump to
connect to existing 4 inch HS header in primary-secondary arrangement.
Install electrical to 4 devices.
Connect to DDC controls.
Wood Boiler Option
This option will convert to a dual fuel heating plant consisting of one pellet boiler and two fuel oil
boilers. The scope of work is:
Install containerized pellet fired pellet boiler assembly medium size, controls, and separate
chimney. Exterior silo located adjacent to container for storage of pellets. Modify existing
boiler piping to a primary-secondary configuration and to deliver the heating water directly into a
400 gallon storage buffer tank similar to the wood fired boiler. Install circulating pumps
between boilers and storage tank. Direct buried piping between boiler room and exterior
container would house heating piping. Exterior silo would be roughly 900 cubic feet storage
with 50 foot auger.
Install 30 feet of 3"dia. heating supply and return piping from wood boiler to 4"dia. header to
Storage tank.
Install 40 feet of 4"dia.piping with second 4"air separator for boiler header.
Install pellet fired wood boiler assembly in external container with all components including
intermediate storage bin,ash collection bin,three burning blower motors with variable drives,
exhaust fan on combustion discharge, chimney, and controls.
Install 20 ton exterior silo on concrete pad,route main fuel bin auger to pellet boiler.
Install 50 feet of insulated buried piping between the containerized boiler and the boiler room.
Install circulating pumps, accumulator tank,valves.
Install electrical to 4 devices including 3-phase service to containerized boiler.
Connect to DDC controls.
Ketchikan Gateway Borough 36 Heating System Retrofit Analysis
Heat Pump Options
Ground Source Heat Pump Option: The ventilation systems have heating coils that utilize high
temperature heating water. This system is not economically converted to heat pump heating. The
rooms are heated by a radiant floor which utilizes low temperature heating water. This system is
suitable for conversion to heat pump heating. This option will construct a vertical loopfield and install
a water-to-water heat pump to supply the radiant floor. The sizing of the heat pump is set at 50%of
the design load to optimize its operation. The scope of work is:
Install a 220 kW water to water heat pump in a new enclosure(240 sq. ft.)adjacent to the boiler
room.
Install a vertical bore loopfield southeast of the school in an open field,roughly 100 feet from the
school.Preliminary sizing for 62 tons is 44 vertical wells at 350 feet deep each.A piping network
would connect the vertical wells and route them underground into the boiler room.Estimate 4 sets
of 3-inch GS & GR piping.
Install one variable speed circulating pump between the loopfield manifold and the heat pump(10
HP). Install a circulating pump(2 HP) between the heat pump and the accumulator tank.
Install heating supply and return piping and circulation pump to deliver heated water to existing 4
inch HS header in primary-secondary arrangement.
Accumulator tank(300 gallons),piping, valves.
Install electrical supply to 5 devices.
Connect to DDC controls.
Air Source Heat Pump Option: Supplemental heating with air source heat pumps serving ventilation
systems is feasible.The AHU-1 system that serves the gym is not a good application because it is
more energy efficient to vary the outdoor air with occupancy. AHU-2 that serves the classrooms is a
candidate for heating the ventilation air with an air source heat pump.Preliminary layout includes an
exterior air heat pump and two interior fan-coil units located in the outside air plenum of AHU-2.The
scope of work is:
Install a 16-ton air source heat pump to supply heating to outside air system of AHU-2.
Locate exterior heat pump outside the multipurpose area on north side. Route refrigerant piping
between outdoor unit and the interior fan coil units through the multipurpose area into AHU-2
system.
Modify/Enlarge AHU-2 outside air plenum.
Locate two heat pump fan units(8 tons each)in OSA plenum.
Install electrical to 3 units.
Connect to DDC controls.
Ketchikan Gateway Borough 37 Heating System Retrofit Analysis
Life Cycle Cost Analysis-Fawn Mountain Elementary School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6.6%.Electricity 2.5%.Pellets 3. 7%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,281,000 $1,339,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,238,000 $2,028,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $931,000 $1,558,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $668,000 $2,307,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,297,000 $1,511,000
High Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,481,000 $1,538,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,423,000 $2,213,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $951,000 $1,578,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $747,000 $2,386,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,497,000 $1,711,000
Low Fuel Oil Inflation Case(2114.8%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,070,000 $1,128,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,042,000 $1,832,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $909,000 $1,536,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $585,000 $2,224,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,084,000 $1,298,000
High Electricity Inflation Case 0 4%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,282,000 S1,340,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,247,000 $2,038,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $933,000 $1,560,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $696,000 $2,335,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,299,000 $1,513,000
Low Electricity Inflation Case 0, 1%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,280,000 $1,338,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,230,000 $2,021,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $929,000 $1,556,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $644,000 $2,284,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,295,000 $1,509,000
High Wood Pellet Inflation Case 0 5%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,281,000 $1,339,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,238,000 $2,028,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $1,048,000 $1,675,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $668,000 $2,307,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,297,000 $1,511,000
Low Wood Pellet Inflation Case a,2.75%
Status Quo: Fuel Oil Boilers 0 $58,000 $1,281,000 $1,339,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,238,000 $2,028,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $ 857,000 $1,483,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $668,000 $2,307,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,297,000 $1,511,000
Lower Wood Pellet Cost @$ 290 per ton
Status Quo: Fuel Oil Boilers 0 $58,000 $1,281,000 $1,339,000
Electric and Fuel Oil Boilers 759,000 $32,000 $1,238,000 $2,028,000
Wood Pellet and Fuel Oil Boilers 542,000 $85,000 $914,000 $1,540,000
Ground Source Heat Pump and Fuel Oil Boiler $1,573,000 $66,000 $ 668,000 $2,307,000
Air Source Heat Pump and Fuel Oil Boilers 124,000 $91,000 $1,297,000 $1,511,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 38 Heating System Retrofit Analysis
Life Cycle Cost Analysis
Baseline Case
The status quo fuel oil boilers have the lowest life cycle cost.The option has higher energy costs
which are more than offset by the lack of construction costs. The air source heat and wood boiler
options have the next lowest life cycle cost. The electric boiler option has the second highest life
cycle cost due to the high cost of installing a new electric service for the boiler. The ground source
heat pump option has the highest cost due to the high cost of installing a loopfield.
Sensitivity Analysis
The sensitivity analysis determined that the status quo fuel oil boilers have the lowest life cycle cost
under all energy inflation scenarios.
HOUGHTALING ELEMENTARY SCHOOL
Heating Retrofit Options
Status Quo
The heating plant is comprised of two oil-fired boilers arranged in a primary only pumping
arrangement with blend pumps around the boilers. The boilers and heating plant was installed in 2001
and has a remaining service life of 25 years.There is no work required to retain the heating system
for the next 20-years.
Electric Boiler Option
This option will convert to a dual fuel heating plant consisting of one electric boiler and two fuel oil
boilers. The scope of work is:
Remove one fuel oil boiler, boiler piping and pump,existing chimney to stack,electrical, and oil
piping.
Install a 510 kW electric boiler and connect to existing electrical MDP panel in Boiler Room.
Install 50 feet of 4 inch dia. heating supply and return piping and circulation pump to connect to
existing 4 inch HS header in primary-secondary arrangement.
Install a new electric service for the electric boiler. Install electrical to 3 devices.
Connect to DDC controls.
Wood Boiler Option
This option will convert to a dual fuel heating plant consisting of one electric boiler and two fuel oil
boilers. The scope of work is:
Remove(1)WM 788 Boiler,20 feet of 4-inch dia. heating supply and return piping, fractional
horsepower blend pump,existing chimney to vertical stack, electrical,and oil piping.
Install pellet fired wood boiler assembly in external container with all components including
intermediate storage bin,ash collection bin,three burning blower motors with variable drives,
exhaust fan on combustion discharge, chimney,and controls.
Install 20 ton exterior silo on concrete pad,route main fuel bin auger to pellet boiler.
Install 30 feet of 3"dia. heating supply and return piping from wood boiler to 4"dia.header to
400 gallon Storage tank.
Install 40 feet of 4"dia.piping with second 4"air separator for boiler header.
Ketchikan Gateway Borough 39 Heating System Retrofit Analysis
Connect 12 inch dia. wood boiler chimney to existing vertical stack.
Add primary pumps(2)for B-1 and for Wood Boiler.
Install electrical to 3 devices.
Connect to DDC controls.
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system has a high temperature(180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part,to a low temperature(120°F)system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: Supplemental heating with air source heat pumps serving ventilation
systems is feasible.This option looks at installing air source heat pumps to heat ventilation that is
supplied by AHU-1 and AHU-2.
AHU-1 Air Source Heat Pump Scope:
Install a 10-ton air source heat pump; locate exterior heat pump outside the Boiler Room.
Route refrigerant piping through multipurpose area to AHU-1 Fan Room.
Modify AHU-1 outside air plenum ductwork.
Install two fan-coil units to deliver heat to outside air plenum.
Install electrical to 3 devices.
Connect to DDC controls.
AHU-2 Air Source Heat Pump Scope:
Install a 4-ton air source heat pump; locate outside the fan room.
Route refrigerant piping through basement classrooms to AHU-2 Fan Room.
Modify AHU-2 outside air plenum ductwork.
Install two fan-coil units to deliver heat to outside air plenum.
Install electrical to 3 devices.
Connect to DDC controls.
Life Cycle Cost Analysis
Baseline Case
The status quo fuel oil boiler option has the lowest life cycle cost.The option has higher energy costs
which are more than offset by the lack of construction costs. The air source heat pump option has the
next lowest life cycle cost.The wood boiler and electric boiler options have the highest life cycle cost
due to the high construction costs of each option.
Sensitivity Analysis
The sensitivity analysis determined that the status quo option has the highest life cycle cost under all
energy inflation and cost scenarios.
Ketchikan Gateway Borough 40 Heating System Retrofit Analysis
Life Cycle Cost Analysis-Houghtaling Elementary School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6. 6%.Electricity 2. 5%.Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 58,000 $914,000 $972,000
Electric and Fuel Oil Boilers 571,000 40,000 $882,000 $1,493,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $673;000 $1,258,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $866,000 $1,209,000
High Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 0 58,000 $1,054,000 $1,112,000
Electric and Fuel Oil Boilers 571,000 40,000 $1,008,000 $1,619,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $687,000 $1,272,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $ 989,000 $1,333,000
Low Fuel Oil Inflation Case a,4.8%
Status Quo: Fuel Oil Boilers 0 58,000 $765,000 $823,000
Electric and Fuel Oil Boilers 571,000 40,000 $748,000 $1,359,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $658,000 $1,243,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $735,000 $1,079,000
High Electricity Inflation Case a 4%
Status Quo: Fuel Oil Boilers 0 58,000 $917,000 $975,000
Electric and Fuel Oil Boilers 571,000 40,000 $895,000 $1,506,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $676,000 $1,262,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $879,000 $1,223,000
Low Electricity Inflation Case a 1%
Status Quo: Fuel Oil Boilers 0 58,000 $911,000 $969,000
Electric and Fuel Oil Boilers 571,000 40,000 $871,000 $1,482,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $670,000 $1,255,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $855,000 $1,198,000
High Wood Pellet Inflation Case @a 5%
Status Quo: Fuel Oil Boilers 0 58,000 $914,000 $972,000
Electric and Fuel Oil Boilers 571,000 40,000 $882,000 $1,493,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $756,000 $1,341,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $866,000 $1,209,000
Low Wood Pellet Inflation Case a 2.75%
Status Quo: Fuel Oil Boilers 0 58,000 $914,000 $972,000
Electric and Fuel Oil Boilers 571,000 40,000 $882,000 $1,493,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $620,000 $1,205,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $866,000 $1,209,000
Lower Wood Pellet Cost n,$290 per ton
Status Quo: Fuel Oil Boilers 0 58,000 $914,000 $972,000
Electric and Fuel Oil Boilers 571,000 40,000 $882,000 $1,493,000
Wood Pellet and Fuel Oil Boilers 505,000 80,000 $661,000 $1,246,000
Air Source Heat Pump and Fuel Oil Boilers 249,000 95,000 $866,000 $1,209,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 41 Heating System Retrofit Analysis
POINT HIGGINS ELEMENTARY SCHOOL
Heating Retrofit Options
Status Quo
The existing heating plant is comprised of two oil-fired boilers arranged in a primary-secondary
arrangement. The boilers appear to be sized for 70%of the heating load. The boilers and heating plant
were installed in 1987 and have a remaining service life of 10 years. The scope of work in 10 years is:
Replace two fuel oil boilers
Electric Boiler Option
This option will convert the heating plant to a dual fuel plant consisting of one electric boiler and one
fuel oil boiler.The scope of work is:
Remove one fuel oil boiler,30 feet of 2"inch heating supply and return piping,boiler pump
existing chimney to stack, electrical, and oil piping.
Install a 330 kW electric boiler
Install 40 feet of 3"heating supply and return piping and circulation pump to connect to existing
4 inch HS.
Modify heating piping to primary-secondary arrangement. Install 50 feet of 4"dia.piping with
second 4"air separator and trim for boiler header.
Install electrical to the electric boiler and boiler pump.
Connect to DDC controls.
Replace the fuel oil boiler in 10 years.
Pellet Boiler Option
This option will convert the heating plant to a dual fuel plant consisting of one pellet boiler and one
fuel oil boiler.The scope of work is:
Remove(1) WM 588 Boiler, 30 feet of 2-inch dia. heating supply and return piping, boiler pump,
existing chimney to stack, electrical, and oil piping.
Install pellet boiler assembly, intermediate storage bin, ash collection bin,three burning blower
motors with variable drives,exhaust fan on combustion discharge,and controls.
Install 20 ton exterior silo on concrete pad,route main fuel bin auger to pellet boiler.
Connect 12 inch diameter wood boiler chimney to existing stack.
Install 40 feet of 3"dia. heating supply and return piping from wood boiler to 4"dia.header and
to storage tank.
Modify heating piping header to primary-secondary arrangement. Install 50 feet of 4"dia.piping
with second 4"air separator and trim for boiler header.
Install boiler circulating pumps on each boiler,storage tank,valves,and air separator.
Install electrical to 6 devices.
Connect to building DDC controls.
Replace fuel oil boiler in 10 years.
Ketchikan Gateway Borough 42 Heating System Retrofit Analysis
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system has a high temperature(180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part, to a low temperature(120°F)system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: The ventilation units do not have heating coils so conversion to air
source heating would require a major renovation to the ventilation systems,which is not economically
feasible at this time.
Life Cycle Cost Analysis-Point Higgins Elementary School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6. 6%.Electricity 2.5%.Pellets 3.7%
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,756,000 $1,904,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,689,000 $2,259,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,285,000 $1,887,000
High Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 91,000 58,000 $2,056,000 $2,204,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,964,000 $2,534,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,316,000 $1,918,000
Low Fuel Oil Inflation Case(n7 4.8%
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,441,000 $1,590,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,401,000 $1,971,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,253,000 $1,855,000
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,757,000 $1,906,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,704,000 $2,274,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,288,000 $1,890,000
Low Electricity Inflation Case a 1%
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,755,000 $1,903,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,677,000 $2,247,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,283,000 $1,885,000
High Wood Pellet Inflation Case a 5%
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,756,000 $1,904,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,689,000 $2,259,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,448,000 $2,050,000
Low Wood Pellet Inflation Case @ 2.75%
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,756,000 $1,904,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,689,000 $2,259,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,182,000 $1,784,000
Lower Wood Pellet Cost @$290 per ton
Status Quo: Fuel Oil Boilers 91,000 58,000 $1,756,000 $1,904,000
Electric and Fuel Oil Boilers 530,000 40,000 $1,689,000 $2,259,000
Wood Pellet and Fuel Oil Boilers 522,000 80,000 $1,261,000 $1,863,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 43 Heating System Retrofit Analysis
Life Cycle Cost Analysis
Baseline Case
All of the options have a life cycle cost of$3.0M+/-3%,which is very close when estimating and
forecasting costs for 20 years.
The wood boiler option has the lowest life cycle cost.The status quo has the next lowest life cycle
cost and the electric boiler option has the highest life cycle cost.
Sensitivity Analysis
The sensitivity analysis reflects the closeness of the heating options.Variations in energy inflation
cause the status quo and wood boiler options to shift priority with each scenario.
VALLEY PARK ELEMENTARY SCHOOL
Heating Retrofit Options
Status Quo
The heating plant consists of three oil-fired boilers that operate in a McLain 478 (400 MBH)and two
WM 588's(1084 MBH) operated in a primary-secondary-tertiary arrangement. The boilers and
heating plant were installed in 2001 and have a remaining service life of 25 years. There is no work
required to retain the heating system for the next 20-years.
Electric Boiler Option
This option will remove a fuel oil boiler and convert to a dual fuel plant consisting of one electric
boiler and two fuel oil boilers.The scope of work includes:
Remove(1) WM 588 Boiler,30 feet of 2-inch dia. heating supply and return piping, boiler pump
existing chimney to stack, electrical, and oil piping.
Install a 430 kW electric boiler and new electric service.
Install 40 feet of 3"dia. heating supply and return piping and circulation pump to connect to
existing 4 inch HS.
Modify heating piping to primary-secondary arrangement. Install 50 feet of 4"dia.piping with
second 4"air separator and trim for boiler header.
Connect to DDC controls.
Pellet Boiler Option
This option will remove a fuel oil boiler and convert to a dual fuel plant consisting of one pellet boiler
and two fuel oil boilers. The scope of work includes:
Remove(1)WM 588 Boiler, 30 feet of 2-inch dia. heating supply and return piping, boiler pump,
existing chimney to stack,electrical, and oil piping.
Install pellet boiler assembly, intermediate storage bin, ash collection bin,three burning blower
motors with variable drives, exhaust fan on combustion discharge,and controls.
Install 20 ton exterior silo on concrete pad,route main fuel bin auger to pellet boiler.
Connect 12 inch diameter wood boiler chimney to existing stack.
Install 40 feet of 3"dia.heating supply and return piping from wood boiler to 4"dia.header and
to storage tank.
Ketchikan Gateway Borough 44 Heating System Retrofit Analysis
Modify heating piping to primary-secondary arrangement. Install 50 feet of 4"dia. piping with
second 4"air separator and trim for boiler header.
Install boiler circulating pumps, storage tank,valves, and air separator.
Install a new 3-phase electrical service for the electric boiler.
Connect to building DDC controls.
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system has a high temperature(180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part,to a low temperature(120°F) system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: Supplemental heating with air source heat pumps serving ventilation
systems is feasible. The AHU-1 system that serves the gym is not a good application because it is
more energy efficient to vary the outdoor air with occupancy. The AHU-2 system has a high outdoor
air requirement and is a candidate for heat pump heating. The preliminary layout includes an exterior
air-source heat pump and two interior fan-coil units located in the outside air plenum of AHU-2.The
scope of work is:
Install a 200 MBH air source heat pump system to supply heat to two fan coil units in the outside
air plenum.
Locate the outdoor unit outside the Boiler Room, under the stairs. Route refrigerant piping
between the outdoor unit and the fan coil unit.
Modify/Enlarge AHU-2 outside air plenum ductwork and locate two 100 MBH heat pump fan-
coil units in OSA plenum.
Install electrical to exterior unit and interior units.
Connect to DDC controls.
Life Cycle Cost Analysis
Baseline Case
The status quo fuel oil boiler option has the lowest life cycle cost. The system has the highest energy
costs but they are more than offset by the lack of required investment to retain the system over the
next 20 years.The air source heat pump and wood boiler options have the next lowest life cycle cost
and the electric boiler option has the highest life cycle cost.
Sensitivity Analysis
The status quo fuel oil boiler option has the lowest life cycle cost under all energy inflation and cost
scenarios.The exception is the high fuel oil case where the wood boiler option has an equally low life
cycle cost.
Ketchikan Gateway Borough 45 Heating System Retrofit Analysis
Life Cycle Cost Analysis-Valley Park Elementary School
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6.6%.Electricity 2.5%.Pellets 3. 7%
Status Quo: Fuel Oil Boilers 0 58,000 $1,300,000 $1,358,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,251,000 $1,707,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $986,000 $1,537,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,317,000 $1,514,000
High Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 0 58,000 $1,501,000 $1,559,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,427,000 $1,883,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $1,007,000 $1,558,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,519,000 $1,717,000
Low Fuel Oil Inflation Case @ 4.8%
Status Quo: Fuel Oil Boilers 0 58,000 $1,087,000 $1,144,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,065,000 $1,521,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $963,000 $1,515,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,103,000 $1,300,000
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 0 58,000 $1,302,000 $1,360,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,273,000 $1,729,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $989,000 $1,540,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,321,000 $1,518,000
Low Electricity Inflation Case 1%
Status Quo: Fuel Oil Boilers 0 58,000 $1,298,000 $1,356,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,233,000 $1,689,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $983,000 $1,535,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,314,000 $1,511,000
High Wood Pellet Inflation Case 5%
Status Quo: Fuel Oil Boilers 0 58,000 $1,300,000 $1,358,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,251,000 $1,707,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $1,110,000 $1,661,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,317,000 $1,514,000
Low Wood Pellet Inflation Case @ 2.75%
Status Quo: Fuel Oil Boilers 0 58,000 $1,300,000 $1,358,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,251,000 $1,707,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $907,000 $1,459,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,317,000 $1,514,000
Lower Wood Pellet Cost @$290 per ton
Status Quo: Fuel Oil Boilers 0 58,000 $1,300,000 $1,358,000
Electric and Fuel Oil Boilers 413,000 43,000 $1,251,000 $1,707,000
Wood Pellet and Fuel Oil Boilers 478,000 74,000 $968,000 $1,519,000
Air Source Heat Pump and Fuel Oil Boilers 115,000 82,000 $1,317,000 $1,514,000
Ketchikan Gateway Borough 46 Heating System Retrofit Analysis
OPERATIONS AND MAINTENANCE FACILITY
Heating Retrofit Options
Status Quo
The existing heat system consists of one fuel oil boiler and a high temperature distribution system.
The boiler supplies the building with a primary only pumping arrangement. The boiler was installed
in 1988 installation and has eleven years of remaining service life. The scope of work to replace the
boiler in 11 years is:
Replace the fuel oil boiler
Reconnect the heating piping, fuel piping,and chimney
Electric Boiler Option
This option will convert to a dual fuel heating plant consisting of one electric boiler and one fuel oil
boiler.The scope of work is:
Remove existing boiler header piping and modify piping to primary-secondary arrangement with
new primary pumps.
Install a 60 kW electric boiler and connect to existing electrical panel in Boiler Room.
Install 40 feet of 2 inch dia.heating supply and return piping and primary circulation pump from
oil-fired boiler.
Install electrical to 5 devices.
Connect to DDC controls.
Replace fuel oil boiler in 11 years.
Wood Boiler Option
This option will replace the fuel oil boiler and convert to a dual fuel heating plant consisting of one
pellet boiler and one fuel oil boiler. The scope of work is:
Replace fuel oil boiler circulating pump,and modify existing header to primary-secondary
arrangement.
Install 30 feet of 2"dia. HS/HR piping from oil boiler to 4"dia.header to Storage tank.
Install pellet fired wood boiler assembly in external container with all components including
intermediate storage bin,ash collection bin,augers,chimney, and controls.
Install 8 ton exterior silo on concrete pad,route main fuel bin auger to pellet boiler.
Install 50 feet of insulated buried piping between the containerized boiler and the boiler room.
Install circulating pumps,accumulator tank,valves.
Install electrical to 5 devices including 3-phase service to containerized boiler.
Connect to DDC controls.
Replace fuel oil boiler in 11 years.
Ketchikan Gateway Borough 47 Heating System Retrofit Analysis
Heat Pump Options
The existing heating system has a high temperature(180°F)hydronic heating system. It is not
economically feasible to convert the heating system, in whole or part,to a low temperature(120°F)
system that can be supplied from a ground source or air source heat pumps.
Supplemental heating with air source heat pumps serving ventilation systems is also not feasible
because the building does not have central ventilation systems with a high outside air requirement.
Life Cycle Cost Analysis
Baseline Case
The status quo fuel oil boiler option has the lowest life cycle cost. The system has the highest energy
costs but they are more than offset by lower capital costs to retain the system over the next 20 years.
The electric boiler and wood boiler options have the next lowest life cycle cost.
Life Cycle Cost Analysis-Operations and Maintenance Facility
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6. 6%.Electricity 2.5%.Pellets 3.7%
Status Quo: Fuel Oil Boilers 39,000 38,000 $296,000 $372,000
Electric and Fuel Oil Boilers 186,000 32,000 $264,000 $482,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $233,000 $ 483,000
High Fuel Oil Inflation Case n,8%
Status Quo: Fuel Oil Boilers 39,000 38,000 $342,000 $418,000
Electric and Fuel Oil Boilers 186,000 32,000 $297,000 $515,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $238,000 $488,000
Low Fuel Oil Inflation Case @ 4.8%
Status Quo: Fuel Oil Boilers 39,000 38,000 $247,000 $324,000
Electric and Fuel Oil Boilers 186,000 32,000 $229,000 $ 447,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $228,000 $478,000
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 39,000 38,000 $296,000 $373,000
Electric and Fuel Oil Boilers 186,000 32,000 $273,000 $491,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $235,000 $484,000
Low Electricity Inflation Case @ 1%
Status Quo: Fuel Oil Boilers 39,000 38,000 $296,000 $372,000
Electric and Fuel Oil Boilers 186,000 32,000 $257,000 $474,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $232,000 $482,000
High Wood Pellet Inflation Case(cI,5%
Status Quo: Fuel Oil Boilers 39,000 38,000 $296,000 $372,000
Electric and Fuel Oil Boilers 186,000 32,000 $264,000 $ 482,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $262,000 $511,000
Low Wood Pellet Inflation Case a,2.75%
Status Quo: Fuel Oil Boilers 39,000 38,000 $296,000 $372,000
Electric and Fuel Oil Boilers 186,000 32,000 $264,000 $ 482,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $215,000 $464,000
Lower Wood Pellet Cost a,$ 290 per ton
Status Quo: Fuel Oil Boilers 39,000 38,000 $296,000 $372,000
Electric and Fuel Oil Boilers 186,000 32,000 $ 264,000 $482,000
Wood Pellet and Fuel Oil Boilers 195,000 55,000 $229,000 $479,000
Ketchikan Gateway Borough 48 Heating System Retrofit Analysis
KETCHIKAN INTERNATIONAL AIRPORT
A third floor expansion of the terminal building is planned. The following heating system retrofit
options are sized to meet the added loads of the expansion.
Heating Retrofit Options
Status Quo
The existing heating plant is comprised of two fuel oil boilers arranged in a primary-secondary
arrangement. The boilers appear to be considerably oversized by 250%which indicates that they were
sized for a future expansion of the facility. The boilers and heating plant were installed in 1972 and
have reached the end of their expected service life of 10 years.The scope of work is:
Demolish the entire heating plant
Install two 780 MBH fuel oil boilers
Install a fuel oil day tank and piping to each boilers
Install a primary/secondary pumping arrangement consisting of piping, pumps and appurtenances.
Connect plant to the existing hot water heaters
Install electrical to boilers and pumps
Install DDC controls
Electric Boiler Option
This option will convert the heating plant to a dual fuel plant consisting of one electric boiler and one
fuel oil boiler.The scope of work is:
Demolish the entire heating plant
Install one 780 MBH fuel oil boiler and one 230 kW electric boiler
Install a fuel oil day tank and piping to each boilers
Install a primary/secondary pumping arrangement consisting of piping,pumps and appurtenances.
Connect plant to the existing hot water heaters
Install electrical to boilers and pumps
Upgrade electrical service for electric boiler
Install DDC controls
Pellet Boiler Option
This option will convert the heating plant to a dual fuel plant consisting of one pellet boiler and one
fuel oil boiler. The scope of work is:
Demolish the entire heating plant
Install one 780 MBH fuel oil boiler and one 780 MBH pellet boiler
Install a fuel oil day tank and piping to the boiler
Install a 20 ton pellet silo and augers to boiler room
Install a primary/secondary pumping arrangement consisting of piping,pumps and appurtenances.
Connect plant to the existing hot water heaters
Ketchikan Gateway Borough 49 Heating System Retrofit Analysis
Install electrical to boilers and pumps
Install DDC controls.
Heat Pump Options
Ground Source Heat Pump Option: The existing heating system has a high temperature(180°F)
hydronic heating system. It is not economically feasible to convert the heating system, in whole or
part,to a low temperature(120°F)system that can be supplied from a ground source heat pump.
Air Source Heat Pump Option: The air handling units should optimally control outside air based on
occupancy.This control will have a much lower life cycle cost than to utilize heat pumps to heat
outside air.Additionally,the control will negate any incentive to install an air source heat pump to
heat ventilation air.An air source heat pump option is not economically feasible at this time.
Life Cycle Cost Analysis-Ketchikan International Airport
Option Construction Maintenance Energy Total
Base Case: Fuel Oil 6.6%.Electricity 2.5%.Pellets 3. 7%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,594,000 $2,000,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,496,000 $2,057,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,287,000 $2,024,000
High Fuel Oil Inflation Case 0 8%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,866,000 $2,272,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,719,000 $2,280,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,315,000 $2,052,000
Low Fuel Oil Inflation Case 0 4.8%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,309,000 $1,715,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,262,000 $1,823,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,257,000 $1,994,000
High Electricity Inflation Case 0,4%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,595,000 $2,001,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,529,000 $2,091,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,289,000 $2,026,000
Low Electricity Inflation Case a,I%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,593,000 $1,999,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,468,000 $2,029,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,285,000 $2,022,000
High Wood Pellet Inflation Case n,5%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,594,000 $2,000,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,496,000 $2,057,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,452,000 $2, 189,000
Low Wood Pellet Inflation Case @ 2.75%
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,594,000 $2,000,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,496,000 $2,057,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,182,000 $1,919,000
Lower Wood Pellet Cost @$290 per ton
Status Quo: Fuel Oil Boilers 348,000 $58,000 $1,594,000 $2,000,000
Electric and Fuel Oil Boilers 530,000 $32,000 $1,496,000 $2,057,000
Wood Pellet and Fuel Oil Boilers 659,000 $78,000 $1,264,000 $2,001,000
Note: Bold indicates lowest life cycle cost
Ketchikan Gateway Borough 50 Heating System Retrofit Analysis
Life Cycle Cost Analysis
Baseline Case
All of the options have a life cycle cost of$2.0M+/-3%,which is very close when estimating and
forecasting costs for 20 years.
The status quo fuel oil boiler option has the lowest life cycle cost. The wood boiler option has the
next lowest life cycle cost and the electric boiler has the highest life cycle cost.
Sensitivity Analysis
The sensitivity analysis reflects the closeness of the heating options.Variations in energy inflation
cause the wood boiler to have the lowest life cycle cost for the scenarios of high fuel oil inflation case
and the low pellet inflation case.
Ketchikan Gateway Borough 51 Heating System Retrofit Analysis
Appendix A
Ketchikan High School Calculations
Ketchikan Gateway Borough 52 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan High School
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2. 5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 285.18 TFP Pellet Cost,ton
Results
Option 1 Construction 1 Annual Energy Total of Base
Base Case: Fuel Oil 6.6%,Electricity 2.5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 77,900 $6,941,100 $7,019,000
Electric and Fuel Oil Boilers 1,095,300 60,400 $6,540,800 $7,696,500 110%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 $5,189,200 $7,000,800 100%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $7,091,200 $7,436,400 106%
High Fuel Oil Inflation Case p 8%
Status Quo: Fuel Oil Boilers 0 77,900 $8,024,200 $8,102,100
Electric and Fuel Oil Boilers 1,095,300 60,400 $7,430,300 $8,586,000 106%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 $5,303,600 $7,115,200 88%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $8,185,700 $8,530,900 105%
Low Fuel Oil Inflation Case 4.8%
Status Quo: Fuel Oil Boilers 0 77,900 $5,793,600 $5,871,500
Electric and Fuel Oil Boilers 1,095,300 60,400 $5,598,400 $6,754,100 115%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 $5,068,000 $6,879,600 117%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $5,931,500 $6,276,700 107%
High Electricity Inflation Case p 4%
Status Quo: Fuel Oil Boilers 0 77,900 $6,944,100 $7,022,000
Electric and Fuel Oil Boilers 1,095,300 60,400 $6,687,000 $7,842,700 112%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 $5,197,000 $7,008,600 100%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $7,107,200 $7,452,400 106%
Low Electricity Inflation Case P 1%
Status Quo: Fuel Oil Boilers 0 77,900 $6,938,700 $7,016,600
Electric and Fuel Oil Boilers 1,095,300 60,400 $6,419,500 $7,575,200 108%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 ' $5,182,700 $6,994,300 100%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $7,077,800 $7,423,000 106%
High Wood Pellet Inflation Case p 5%
Status Quo: Fuel Oil Boilers 0 77,900 $6,941,100 $7,019,000
Electric and Fuel Oil Boilers 1,095,300 60,400 $6,540,800 $7,696,500 110%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 $5,848,900 $7,660,500 109%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $7,091,200 $7,436,400 106%
Low Wood Pellet Inflation Case p 2.75%
Status Quo: Fuel Oil Boilers 0 77,900 $6,941,100 $7,019,000
Electric and Fuel Oil Boilers 1,095,300 60,400 $6,540,800 $7,696,500 110%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 $4,770,800 $6,582,400 94%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $7,091,200 $7,436,400 106%
Lower Wood Pellet Cost(off$275 per ton
Status Quo: Fuel Oil Boilers 0 77,900 $6,941,100 $7,019,000
Electric and Fuel Oil Boilers 1,095,300 60,400 $6,540,800 $7,696,500 110%
Wood Pellet and Fuel Oil Boilers 1,713,100 98,500 ; $5,033,600 $6,845,200 98%
Air Source Heat Pump and Fuel Oil Boilers 230,600 114,600 $7,091,200 $7,436,400 106%
Ketchikan High School Calculations Page 1 Appendix A
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan High School
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 96,480
2010 96.520
Average 96,500
Heating Load,kBTU Fuel,gals kBTU/gal Efficiency Load,kBTU
96,500 138.5 72% 9,622,980
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size.MBH Factor Load,MBH
B-1 3,460 70% 2,427
B-2 3,460 70% 2,427
B-3 3460 70% 2,427
10,380 7,280
Existing Pumps Pump Service GPM AT MBH
CP-1A/B Bldg 728 20 7,280
Design Heating Load Design MBH srff BTUH/sgft
7,280 180,634 40
Energy Analysis
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
9,622,980 100% 9,622,980 75% 138.5 92,640
Boiler Pumping GPM Head bha n kWh
216 12 1.19 70%11,121
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size,MBH Firm MBH kW
Electric 7,280 70% 5,096 0 1,494
B-1 3,460 3,460
B-2 3460 3460
Total 12,016 6,920
Design 165% 95%
Ketchikan High School Calculations Page 2 Appendix A
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan High School
Annual Energy Requirements
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 8,080 8% 720
Oct 9177 10% 744
17,257 18% 1,464
Fuel Oil Boilers Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
9,622,980 82% 7,902,112 75% 138.5 76,080
Electric Boilers Load,kBTU %Load Net.kBTU Efficiency kWh
9,622,980 18% 1,720,868 95%530,592
Boiler Pumping Boiler GPM Head Lip n kWh
Fuel Oil 216 12 1.19 70% 9,263
Electric 510 12 2.81 70% 4385
13,648
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
Wood 7,280 70% 5,096 0
B-1 3,460
B-2 3460 3460
Total 12,016 3,460
Design 165% 48%
Energy Analysis
Wood Boiler Load,kBTU %Load Net.kBTU Efficiency kBTU/ton tons Dist Losses tons
9,622,980 90% 8,660,682 71%15,560 784 0% 784
Fuel Oil Boiler Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
9,622,980 10%962,298 71% 138.5 9,786
Electric Loads Boiler GPM Head bhp n kWh
Fuel Oil 216 12 1.19 70% 1,112
Wood 510 12 2.81 70%23,615
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2753
29,021
Ketchikan High School Calculations Page 3 Appendix A
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan High School
Annual Energy Requirements
AIR SOURCE HEAT PUMP
AHU-1 CFM.max CFM,min Min OSA MAT Tmin Steps A CFM HP.size
82,000 45,000 12,000 62 35 6 5,286 120
Heat Pump
Tosa Hours CFM SA MAT MBH kBtu Gallons COP kWh
82 13 82,000 82 0 0 0 4.5 0
77 36 82,000 77 0 0 0 4.3 0
72 85 82,000 72 0 0 0 4.1 0
67 178 82,000 67 0 0 0 3.8 0
62 334 76,714 62 0 0 0 3.5 0
57 414 71,429 57 120 49,680 528 3.3 4,412
52 343 66,143 52 120 41,160 437 3.1 3,891
47 358 60,857 47 120 42,960 456 2. 8 4,497
42 445 55,571 42 120 53,400 567 2.6 6,019
37 295 50,286 37 120 35,400 376 2.4 4,323
32 142 45,000 32 120 17,040 181 2.3 2,171
27 96 45,000 27 120 11,520 122 2. 2 1,535
22 68 45,000 22 120 8,160 87 2.1 1,139
17 54 45,000 17 120 6,480 69 2.0 950
12 33 45,000 12 120 3,960 42 1.9 611
7 16 45,000 7 120 1,920 20 1.8 313
2 6 45,000 2 120 720 8 1.7 124
272,400 -2,892 29,985
2.7
AHU-7: Classroom CFM.max CFM,min Min OSA MAT Tmin Steps A CFM HP.size
22,600 14,000 5,000 61 35 6 1,433 48
Heat Pump
Tosa Hours CFM SA MAT MBH kBtu Gallons COP kWh
82 13 22,600 82 0 0 0 4. 5 0
77 36 22,600 77 0 0 0 4. 3 0
72 85 22,600 72 0 0 0 4.1 0
67 178 22,600 67 0 0 0 3.8 0
62 334 22,600 62 0 0 0 3.5 0
57 414 21,167 57 114 47,320 502 3.3 4,203
52 343 19,733 52 120 41,160 437 3.1 3, 891
47 358 18,300 47 120 42,960 456 2.8 4,497
42 445 16,867 42 120 53,400 567 2.6 6,019
37 295 15,433 37 120 35,400 376 2.4 4,323
30 142 14,000 30 120 17,040 181 2. 3 2,171
27 96 14,000 27 120 11,520 122 2. 2 1,535
22 68 14,000 22 120 8,160 87 2.1 1,139
17 54 14,000 17 120 6,480 69 2.0 950
12 33 14,000 12 120 3,960 42 1.9 611
7 16 14,000 7 120 1,920 20 1.8 313
2 6 14,000 2 120 720 8 1.7 124
270,040 -2,867 29,775
2.7
Fuel Oil,gal 96,500
Savings -2,875
New Use,gal 93,625
Ketchikan High School Calculations Page 4 . Appendix A
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan High School
Status Quo
Boiler Status Lead Lag Standby Combined
Boiler Type Fuel Oil Fuel Oil Fuel Oil
Burner Modulating Modulating Modulating
Combustion efficiency
Percent Load 90% 10% 0% 100.0%
Combustion efficiency 84.0%84.0%84.0%84.0%
Jacket losses 1.0% 1.0% 1.0% 123.6
Standby loss 2.5%
Energy source Fuel Oil Fuel Oil Fuel Oil Total
Gross output,MBH 3,460 3,460 3,460 10,380
Input,MBH 4,119 4,119 4,119 12,357
Design Heating Load,MBH 7,280
All Boilers Hot Year Round Yes
Load Combustion Jacket Standby
Load
MBH Losses,MBH Losses,MBH Losses,MBH
Efficiency Annual Hours Output,kBtu Input,kBtu
1% 73 11.6 123.6 307.1 14.1% 14% 88,452 625,881
10% 728 116.5 123.6 290.7 57.8% 11%728,000 1,258,780
20% 1,456 233.0 123.6 272.5 69.8% 14% 1,747,200 2,502,072
30% 2,184 349.4 123.6 254.3 75.0% 23% 4,368,000 5,822,680
40% 2,912 465.9 123.6 236.1 77.9% 21% 5,241,600 6,727,716
50% 3,640 582.4 123.6 217.9 79.8% 9%2,912,000 3,651,120
60% 4,368 698.9 123.6 199.7 81.0% 6%2,184,000 2,695,090
70% 5,096 815.4 123.6 181.5 82.0% 2% 764,400 932,469
80% 5,824 931.8 123.6 163.3 82.7% 1% 465,920 563,419
90% 6,552 1,048.3 123.6 145.1 83.3% 0% 72,072 86,559
100% 7,280 1,164.8 123.6 126.9 83.7% 0% 29,120 34,781
71.6%100.0% 18,600,764 24,900,567
Average Seasonal 75%
Page 5
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan High School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Standby Combined
Boiler Type Wood Fuel Oil Fuel Oil
Burner Modulating Modulating Modulating
Percent Load 90% 5% 5% 100%
Combustion efficiency 80.0%84.0%84.0%80.4%
Jacket losses 1.20%1.00% 1.0% 158.9
Standby loss 2.5%
Energy source Pellets Fuel Oil Fuel Oil Total
Gross output,MBH 5,100 3,460 3,460 12,020
Input,MBH 6,375 4,119 4,119 14,613
Design Heating Load, MBH 7,280
All Boilers Hot Year Round Yes
Load Combustion Jacket StandbyLoad
MBH Losses,MBH Losses,MBH Losses,MBH Efficiency Annual Hours Output,kBtu Input, kBtu
1% 73 14.3 158.9 363.5 11.9% 14% 88,452 740,490
10% 728 142.7 158.9 347.1 52.9% 11%728,000 1,376,696
20% 1,456 285.4 158.9 328.9 65.3% 14% 1,747,200 2,675,021
30% 2,184 428.1 158.9 310.7 70.9% 23% 4,368,000 6,163,345
40% 2,912 570.8 158.9 292.5 74.0% 21% 5,241,600 7,081,489
50% 3,640 713.4 158.9 274.3 76.0% 9%2,912,000 3,829,319
60% 4,368 856.1 158.9 256.1 77.5% 6% 2,184,000 2,819,568
70% 5,096 998.8 158.9 237.9 78.5% 2% 764,400 973,744
80% 5,824 1,141.5 158.9 219.7 79.3% 1% 465,920 587,529
90% 6,552 1,284.2 158.9 201.5 79.9% 0% 72,072 90,163
100% 7,280 1,426.9 158.9 183.3 80.5% 0% 29,120 36,196
67.9%100.0% 18,600,764 26,373,560
Average Seasonal 71%
Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan High School
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit ! Base Cost Year 0 Cost
Heating Plant
Retain existing heating plant 0 1 LS 0.00 0
Contingencies i
Estimating contingency 0 15% 0
Overhead&profit 0 30% 0
Design fees 0 10% 0
Project management 0 10% 0
Total Construction Costs 0
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 3 LS 150.00 6,892
Monthly,each 1.5 hours/month 1 - 20 54 hrs 38.50 31,841
Annual,each 8 hours/year 1 - 20 24 hrs i $38.50 14,152
Pump maintenance,4 hrs each 1 - 20 12 hrs 38.50 7,076
Total Annual Costs 77,900
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 92,640 gallons 3.26 6,923,678
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 11,121 kWh 0.10 17,468
Total Energy Costs $6,941,100
Present Worth 7,019,000
Ketchikan High School Calculations Page 7 Appendix A
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907,789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan High School
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler and appurtenances 3250 MBH 0 1 ea 5,000 5,000
Electric boiler 1500 kW 0 1 ea 80,000 80,000
Primary piping,pump,and appurtenances 0 1 ea 30,000 30,000
Controls
Additional DDC controls 0 6 pts 1,750 10,500
Electrical
New electric service for electric boiler 0 1 LS 475,000 475,000
3-phase service for boiler pump 0 1 LS 5,000 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 90,825
Overhead&profit 0 30% 208,898
Design fees 0 10% 90,522
Project management 0 10% 99,574
Total Construction Costs $1,095,300
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs i $38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 12 hrs 38.50 7,076
Total Annual Costs 60,400
Energy Costs Years Qty Unit I Base Cost Present Value
Fuel Oil 1 - 20 76,080 gallons 3.26 5,686,026
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 544,240 kWh 0.10 854,794
Total Energy Costs $6,540,800
Present Worth 7,696,500
Ketchikan High School Calculations Page 8 Appendix A
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan High School
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty 1 Unit j Base Cost Year 0 Cost
Mechanical
Remove boiler,fuel piping,flue,etc. 0 1 LS 5,000 5,000
Wood Boiler
Wood boiler building 0 800 sgft 350 280,000
Pellet boiler w/precipitator and augers 2500 MBH 0 2 ea 220,000 440,000
Pellet silo 20 tons 0 2 LS 40,000 80,000
Chimney 0 2 ea 7,500 15,000
Primary piping,pumps,appurtenances;connect to primary header 0 1 ea 50,000 50,000
Accumulator tank and appurtenances 0 1 ea 18,000 18,000
Controls: Additional controls 0 12 pts 1,750 21,000
Electrical: 3-phase service for wood boiler,precipitator,boiler pumps 0 6 LS 5,000 30,000
Commissioning 0 1 LS 8,000 8,000
Contingencies
Estimating contingency 0 15% 142,050
Overhead&profit 0 30% 326,715
Design fees 0 10% 141,577
Project management 0 10% 155,734
Total Construction Costs $1,713,100
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 0.75 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
2000 hour maintenance 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 12 hrs 38.50 7,076
Total Annual Costs 98,500
Energy Costs Years Qty 1 Unit I Base Cost Present Value
Fuel Oil 1 - 20 9,786 gallons 3.26 731,374
Wood Pellets- Initial Fill 0 40 tons 326.66 13,066
Wood Pellets 1 - 20 784 tons 326.66 4,399,145
Wood Pellets 1 - 5 0 tons 285.18 0
Electricity 1 - 20 _ 29,021 kWh 0.10 45,580
Total Energy Costs $5,189,200
Present Worth 7,000,800
Ketchikan High School Calculations Page 9 Appendix A
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan High School
Air Source Heat Pump and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit j Base Cost Year 0 Cost
Mechanical
Install OSA fan coil unit with DX coil,3,000 cfm 0 4 LS 6,000 24,000
Ductwork modifications for fan coil unit 0 4 LS 3,750 15,000
Outdoor unit 0 2 ea 10,000 20,000
Refrigerant piping 0 2 LS 2,500 5,000
Additional Controls 0 18 pts 1,750 31,500
Electrical: 3-phase service for outdoor unit and fan coils 0 4 LS 5,000 20,000
Commissioning 0 2 LS 6,000 12,000
Contingencies
Estimating contingency 0 15% 19,125
Overhead&profit 0 30% 43,988
Design fees 0 10% 19,061
Project management 0 10% 20,967
Total Construction Costs 230,600
Annual Costs Years qty I Unit I Base Cost Present Value
Daily Heating Plant Observation 7 min/day 1 - 20 43 hrs 38.50 25,109
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 3 LS 150.00 6,892
Monthly,each 1.5 hours/month 1 - 20 54 hrs 38.50 31,841
Annual,each 8 hours/year 1 - 20 24 hrs 38.50 14,152
Air-source heat pump maintenance
Parts Allowance 1 - 20 2 LS 300.00 9,189
Monthly 0.5 hours/month 1 - 20 12 hrs 38.50 7,076
Every Three Months 0.67 hours/3 months 1 - 20 5 hrs 38.50 3,145
Annual 8 hours/year 1 - 20 16 hrs 38.50 9,434
Five Year Maintenance 4 hours/year 5 - 5 8 hrs 38.50 267
Five Year Maintenance 4 hours/year 10 - 10 8 hrs 38.50 236
Five Year Maintenance 4 hours/year 15 - 15 8 hrs 38.50 210
Pump maintenance,4 hrs each 1 - 2.0 _ 12 _ hrs 38.50 7,076
Total Annual Costs 114,600
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 93,625 gallons 3.26 6,997,300
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 59,760 kWh 0.10 93,861
Total Energy Costs $7,091,200
Present Worth 7,436,400 I
Ketchikan High School Calculations Page 10 Appendix A
Appendix B
Revilla High School Calculations
Ketchikan Gateway Borough 53 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Revilla High School
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
Option I Construction Annual Energy Total of Base I
Base Case: Fuel Oil 6.6%,Electricity 2.5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 56,000 57,900 482,200 596,100
Electric and Fuel Oil Boilers 206,700 40,400 478,800 725,900 122%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 359,400 714,300 120%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 477,000 716,400 120%
High Fuel Oil Inflation Case(a)8%
Status Quo: Fuel Oil Boilers 56,000 57,900 j $564,500 678,400
Electric and Fuel Oil Boilers 206,700 40,400 555,800 802,900 118%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 367,900 722,800 107%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 557,900 797,300 118%
Low Fuel Oil Inflation Case p 4.8%
Status Quo: Fuel Oil Boilers 56,000 57,900 482,700 596,600
Electric and Fuel Oil Boilers 206,700 40,400 483,900 731,000 123%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 361,000 715,900 120%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 478,000 717,400 120%
High Electricity Inflation Case(@ 4%
Status Quo: Fuel Oil Boilers 56,000 57,900 ' $496,800 610,700
Electric and Fuel Oil Boilers 206,700 40,400 430,200 677,300 111%
Wood Pellet and Fuel Oil Boilers 297,000 63,800 364,500 725,300 119%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 478,000 717,400 117%
Low Electricity Inflation Case p 1%
Status Quo: Fuel Oil Boilers 56,000 57,900 481,800 595, 700
Electric and Fuel Oil Boilers 206,700 40,400 474,500 721,600 121%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 358,100 713,000 120%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 476,200 715,600 120%
High Wood Pellet Inflation Case(Q?5%
Status Quo: Fuel Oil Boilers 56,000 57,900 482,200 596,100
Electric and Fuel Oil Boilers 206,700 40,400 478,800 725,900 122%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 404,000 758,900 127%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 477,000 716,400 120%
Low Wood Pellet Inflation Case p 2.75%
Status Quo: Fuel Oil Boilers 56,000 57,900 482,200 596,100
Electric and Fuel Oil Boilers 206,700 40,400 478,800 725,900 122%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 331,100 686,000 115%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 477,000 716,400 120%
Lower Wood Pe llet Cost @$290 per ton
Status Quo: Fuel Oil Boilers 56,000 57,900 482,200 596,100
Electric and Fuel Oil Boilers 206,700 40,400 478,800 725,900 122%
Wood Pellet and Fuel Oil Boilers 291,100 63,800 352,800 707,700 119%
Air Source Heat Pump and Fuel Oil Boilers 159,500 79,900 477,000 716,400 120%
Revilla High School Calculations Page 1 Appendix B
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Revilla High School
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 6,720
2010 6395
Average 6,600
Heating Load,kBTU Fuel,gals kBTU/gal Efficiency Load,kBTU
6,600 138.5 68%621,588
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size.MBH Factor Design MBH
B-1 336 72% 467
B-2 336 72% 467
672 933
Existing Pumps Pump Service GPM AT MBH
CP-1 Heat 31 30 465
Design Heating Load Design MBH sqft BTUH/sgff
465 10,000 47
Energy Analysis
Fuel Oil Boilers Load,kBTU %Load Net,kBTU Efficiency kBTU/gal Fuel,gals
621,588 100% 621,588 70% 138.5 6,411
Boiler Pumping Season GPM Head bhp n kWh
Winter 34 12 0.19 70% 1,751
Revilla High School Calculations Page 2 Appendix B
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Revilla High School
Annual Energy Requirements
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 465 70% 326 326 95
B-2 465 72% 335
Total 660 326
Design 142% 70%
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 180 3% 720
Oct 420 6% 744
600 9% 1,464
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
621,588 91%565,080 68% 138.5 6,000
Electric Boilers Load.kBTU %Load Net,kBTU Efficiency kWh
621,588 9% 56,508 95%17,423
Boiler Pumping Boiler GPM Head bhp a kWh
Fuel Oil 34 12 0.19 70% 1,458
Electric 33 12 0.18 70% 280
1,738
Revilla High School Calculations Page 3 Appendix B
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Revilla High School
Annual Energy Requirements
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
W-1 465 35% 163 163
W-2 465 35% 163 163
B-2 336 0
Total 662 326
Design 142% 70%
Energy Analysis
Wood Boiler Load,kBTU %Load Net.kBTU Efficiency kBTU/ton tons Container Loss tons
621,588 90%559,429 68%15,560 53 0% 53
Fuel Oil Boiler Load.kBTU %Load Net.kBTU Efficiency kBTU/pal Fuel,gals
621,588 10%62,159 68% 138.5 660
Electric Loads Boiler GPM Head bhm a kWh
Fuel Oil 34 12 0.19 70% 175
Wood 33 12 0.18 70% 1,508
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2753
5,977
AIR SOURCE HEAT PUMP
Sizing Analysis
HV-1: East Side CFM.max CFM,min Min OSA MAT Tmin Steps A CFM HP,size
5,875 5,875 2,500 60 35 5 0 36
Energy Analysis
Heat Pump Performance Fuel Oil Heat Pump
Tosa Hours CFM.SA MAT MBH kBtu Gallons COP kWh
82 13 5,875 82 0 0 0 4. 5 0
77 36 5,875 77 0 0 0 4. 3 0
72 85 5,875 72 0 0 0 4.1 0
67 178 5,875 67 0 0 0 3. 8 0
62 334 5,875 62 0 0 0 3.5 0
57 414 5,875 60 0 0 0 3.3 0
52 343 5,875 60 0 0 0 3.1 0
47 358 5,875 60 0 0 0 2.8 0
42 445 5,875 58 12 5,407 57 2.6 609
37 295 5,875 56 26 7,567 80 2.4 924
30 142 5,875 53 36 5,112 54 2.3 651
27 96 5,875 52 36 3,456 37 2.2 460
22 68 5,875 50 36 2,448 26 2.1 342
17 54 5,875 47 36 1,944 21 2.0 285
12 33 5,875 45 36 1,188 13 1.9 183
7 16 5,875 43 36 576 6 1.8 94
2 6 5,875 41 36 216 2 1.7 37
2,916 27,914 296 3,586
Existing,gal 6,600 2.3
New FO Gals 6,304
Revilla High School Calculations Page 4 Appendix B
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Status Quo
Boiler Status Lead Lag Combined
Boiler Type Fuel Oil Fuel Oil
Burner On-off On-off
Percent Load 100% 0% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 2. 5%2.5% 20.0
Standby loss 2. 5%
Energy source Fuel Oil Fuel Oil Total
Gross output,MBH 336 336 672
Input,MBH 400 400 800
Design Heating Load,MBH 465
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses,MBH Losses,MBH Losses,MBH
1% 5 0.7 20.0 19.9 10.3%14%5,650 55,012
10% 47 7.4 20.0 18.8 50.1%11%46,500 92,778
20% 93 14.9 20.0 17.7 63.9%14% 111,600 174,666
30% 140 22.3 20.0 16.5 70.3%23% 279,000 396,665
40% 186 29.8 20.0 15.4 74.1%21% 334,800 451,998
50% 233 37.2 20.0 14.2 76.5% 9%186,000 243,110
60% 279 44.6 20.0 13.0 78.2% 6%139,500 178,333
70% 326 52.1 20.0 11.9 79.5% 2%48,825 61,416
80% 372 59.5 20.0 10.7 80.5% 1%29,760 36,978
90% 419 67.0 20.0 9.5 81.3% 0% 4,604 5,665
100% 465 74.4 20.0 8.4 81.9% 0% 1,860 2,271
67.9% 100.0% 1,188,098 1,698,892
Average Seasonal 70%
Page 5
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Lag Combined
Boiler Type Wood Wood Fuel Oil
Burner Modulating Modulating On-off
Percent Load 55% 35% 10%100%
Combustion efficiency 82.0% 82.0% 84.0% 82.2%
Jacket losses 3.0%3. 0%2.5% 21.9
Standby loss 2.5%
Energy source Pellets Pellets Fuel Oil Total
Gross output,MBH 163 163 336 662
Input,MBH 199 199 400 798
Design Heating Load,MBH 465
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input, kBtu
MBH Losses, MBH Losses,MBH Losses.MBH
1% 5 0.8 21.9 19.8 9.8% 14%5,650 57,381
10% 47 8. 3 21.9 18.8 48.7%11%46,500 95,480
20% 93 16.6 21.9 17.6 62.4%14% 111,600 178,914
30% 140 24.8 21.9 16.5 68.8%23% 279,000 405,419
40% 186 33.1 21. 9 15.3 72.6%21% 334,800 461,383
50% 233 41.4 21.9 14.1 75.0% 9%186,000 247,951
60% 279 49.7 21.9 13.0 76.7% 6%139,500 181,776
70% 326 57.9 21.9 11.8 78.0% 2%48,825 62,575
80% 372 66.2 21.9 10.6 79.0% 1%29,760 37,663
90% 419 74.5 21.9 9.5 79.8% 0% 4,604 5,768
100% 465 82.8 21.9 8.3 80.4% 0% 1,860 2,312
66.5% 100.0% 1,188,098 1,736,622
Average Seasonal 68%
Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Heating Plant
Replace fuel oil boilers 7 2 LS 8,500 14,367
Replace chimney 7 2 LS 7,500 12,677
Fuel oil connection 7 2 LS 300 507
Piping connections 7 2 LS 2,000 3,380
Contingencies
Estimating contingency 0 15% 4,640
Overhead&profit 0 30% 10,671
Design fees 0 10% 4,624
Project management 0 10% 5,087
Total Construction Costs 56,000
Annual Costs Years Qty 1 Unit ! Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 4 hours/year 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 57,900
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 6,411 gallons 3.26 479,462
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 _ 1,751 kWh 0.10 2,750
Total Energy Costs 482,200
Present Worth 596,100
Revilla High School Calculations Page 7 Appendix B
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Revilla High School
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit j Base Cost Year 0 Cost
Mechanical
Remove fuel oil boiler 0 1 ea 3,000 3,000
Replace fuel oil boilers 7 1 LS 8,500 7,184
Replace chimney 7 1 LS 7,500 6,338
Fuel oil connection 7 1 LS 300 254
Piping connections 7 1 LS 2,000 1,690
Electric boiler 95 kW 0 1 ea 13,000 13,000
Demo boiler piping 0 1 ea 2,500 2,500
Primary piping and appurtenances with secondary loop 0 1 ea 15,000 15,000
Primary pumps 0 2 ea 2,500 5,000
Controls
Additional controls 0 9 pts 1,750 15,750
Electrical
Upgrade electric service to electric boiler 0 1 LS 48,000 48,000
3-phase service for boiler pump 0 2 LS 5,000 10,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 17,138
Overhead&profit 0 30% 39,416
Design fees 0 10% 17,080
Project management 0 10% 18,788
Total Construction Costs 206,700
Annual Costs Years Qty Unit I Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75. 00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38. 50 4,717
Total Annual Costs 40,400
Revilla High School Calculations Page 8 Appendix B
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Electric and Fuel Oil Boilers
Energy Costs Years Qty Unit ; Base Cost Present Value
Fuel Oil 1 - 20 6,000 gallons 3.26 448,694
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 19,161 kWh 0.10 30,095
Total Energy Costs 478,800
Present Worth 725,900
Revilla High School Calculations Page 9 Appendix B
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit ; Base Cost Year 0 Cost
Mechanical
Enclosed space in crawlspace 0 200 sqft 150 30,000
Replace fuel oil boilers 7 1 LS 8,500 7,184
Replace chimney 7 1 LS 1 $7,500 6,338
Fuel oil connection 7 1 LS 300 254
Piping connections 7 1 LS 2,000 1,690
Pellet boiler w/precipitator and augers 163 MBH 0 2 ea 24,000 48,000
Pellet silo 10 tons 0 1 LS 15,000 15,000
Piping to boiler room 0 120 Inft 70 8,400
Demo boiler piping 0 1 ea $3,000 3,000
Primary piping and appurtenances with secondary loop 0 1 ea 20,000 20,000
Primary pumps 0 3 ea 2,500 7,500
Accumulator tank 0 1 ea 1 $12,000 12,000
Controls
Additional controls 0 12 pts 1,750 21,000
Electrical
3-phase service for wood boiler container 0 1 LS 10,000 10,000
3-phase service for boiler pump 0 2 LS 5,000 10,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% $24,135.00
Overhead&profit 0 30% 55,511
Design fees 0 10% 24,055
Project management 0 10% 26,460
Total Construction Costs 291,100
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Pellet Boiler Maintenance-Small Capacity
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 2 hours/month 1 - 20 24 hrs 38.50 14,152
2000 hour maintenance 12 hours/year 1 - 20 12 hrs 38.50 7,076
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 63,800
Revilla High School Calculations Page 10 Appendix B
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Wood Pellet and Fuel Oil Boilers
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 660 gallons 3.26 49,356
Wood Pellets-Initial Fill 0 10 tons 326.66 3,267
Wood Pellets 1 - 20 53 tons 326.66 297,391
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 _ 5,977 kWh 0. 10 9,388
Total Energy Costs 359,400
Present Worth 714,300
Revilla High School Calculations . Page 11 Appendix B
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Air Source Heat Pump and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit j Base Cost Year 0 Cost
Mechanical
Replace fuel oil boilers 7 2 LS 8,500 14,367
Replace chimney 7 2 LS 7,500 12,677
Fuel oil connection 7 2 LS 300 507
Piping connections 7 2 LS 2,000 3,380
Install OSA fan coil unit with DVX coil,2,500 cfm 0 1 LS 5,000 5,000
Ductwork modifications for fan coil unit 0 1 LS 3,000 3,000
Outdoor unit 0 1 ea 10,000 10,000
Refrigerant piping 0 1 LS 2,500 2,500
Controls
Additional controls 0 9 pts 1,750 15,750
Electrical
3-phase service for outdoor unit 0 1 LS 5,000 5,000
3-phase service for fan coils 0 2 LS 5,000 10,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% 13,227
Overhead&profit 0 30% 30,423
Design fees 0 10% 13,183
Project management 0 10% 14,501
Total Construction Costs 159,500
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 7 min/day 1 - 20 43 hrs 38.50 25,109
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Air-source heat pump maintenance
Parts Allowance 1 - 20 1 LS 300.00 4,595
Monthly: 30 minutes per month 0. 5 hours/month 1 - 20 6 hrs 38.50 3,538
Every Three Months: 30 minutes each 0.67 hours/3 months 1 - 20 3 hrs 38.50 1,572
Annual 8 hours/year 1 - 20 8 hrs 38.50 4,717
Five Year Maintenance 4 hours/year 5 - 5 4 hrs 38.50 133
Five Year Maintenance 4 hours/year 10 - 10 4 hrs 38.50 118
Five Year Maintenance 4 hours/year 15 - 15 4 hrs 38.50 105
Pump maintenance,4 hrs ea 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 79,900
Revilla High School Calculations Page 12 Appendix B
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Revilla High School
Air Source Heat Pump and Fuel Oil Boilers
Energy Costs Years Qty I Unit I Base Cost Present Value
Fuel Oil 1 - 20 6,304 gallons 3.26 471,399
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 3,586 kWh 0.10 5,632
Total Energy Costs 477,000
Present Worth 716,400
Revilla High School Calculations Page 13 Appendix B
Appendix C
Schoenbar Middle School Calculations
Ketchikan Gateway Borough 54 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim@alaskaenergy.us
Schoenbar Middle School
Summary
Basis
20 Study Period(years) 2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rale 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
Option I Construction I Annual I Energy Total of Base
Base Case: Fuel Oil 6.6%,Electricity 2.5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 57,900 $1,710,700 $1,768,600
Electric and Fuel Oil Boilers 288,500 31,600 $1,677,100 $1,997,200 113%
Wood Pellet and Fuel Oil Boilers 477,600 80,400 $1,254,000 $1,812,000 102%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,454,000 $1,819,000 103%
High Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 0 57,900 $2,002,400 $2,060,300
Electric and Fuel Oil Boilers 288,500 31,600 $1,944,900 $2,265, 000 110%
Wood Pellet and Fuel Oil Boilers 477,600 80,400 $1,284,000 $1,842,000 89%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,686,200 $2,051,200 100%
Low Fuel Oil Inflation Case @ 4.8%
Status Quo: Fuel Oil Boilers 0 57,900 $1,405, 100 $1,463, 000
Electric and Fuel Oil Boilers 288,500 31,600 $1,396,400 $1,716,500 117%
Wood Pellet and Fuel Oil Boilers 477,600 80,400 $1,222,500 $1,780,500 122%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,210,600 $1,575,600 108%
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 0 57,900 $1,712,600 $1,770,500
Electric and Fuel Oil Boilers 288,500 31,600 $1,697,000 $2,017,100 114%
Wood Pellet and Fuel Oil Boilers 477,600 80,400 $1,257,000 $1,815,000 103%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,471,200 $1,836,200 104%
Low Electricity Inflation Case @ 1%
Status Quo: Fuel Oil Boilers 0 57,900 $1,709,100 $1,767,000
Electric and Fuel Oil Boilers 288,500 31,600 $1,660,600 $1,980,700 112%
Wood Pellet and Fuel Oil Boilers 477,600 80,400 $1,251,400 $1,809,400 102%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,439,700 $1,804,700 102%
High Wood Pellet Inflation Case @ 5%
Status Quo: Fuel Oil Boilers 0 57,900 $1,710,700 $1,768,600
Electric and Fuel Oil Boilers 288,500 31,600 $1,677,100 $1,997,200 113%
Wood Pellet and Fuel Oil Boilers 477, 600 80,400 $1,412,200 $1,970, 200 111%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,454,000 $1,819,000 103%
Low Wood Pellet Inflation Case @ 2.75%
Status Quo: Fuel Oil Boilers 0 57,900 $1,710,700 $1,768,600
Electric and Fuel Oil Boilers 288,500 31,600 $1,677,100 $1,997,200 113%
Wood Pellet and Fuel Oil Boilers 477, 600 80,400 $1,153,600 $1,711,600 97%
Air Source Heat Pump and Fuel Oil Boilers 259,600 $105,400 $1,454,000 $1,819,000 103%
Lower Wood Pellet Cost(a@$290 per ton
Status Quo: Fuel Oil Boilers 0 57,900 $1,710,700 $1,768,600
Electric and Fuel Oil Boilers 288,500 31,600 $1,677,100 $1,997, 200 113%
Wood Pellet and Fuel Oil Boilers 477,600 80,400 $1,230,700 $1,788,700 101%
Air Source Heat Pump and Fuel Oil Boilers 259,600 105,400 $1,454,000 $1,819,000 103%
Schoenbar Middle School Calculations Page 1 Appendix C
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Schoenbar Middle School
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 23,675
2010 25.041
Average 24,400
Heating Load,kBTU Fuel,gals kBTU/gal Efficiency Load,kBTU
24,400 138.5 68% 2,297,992
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size.MBH Factor Design MBH
B-1 1,358 70% 1,940
B-2 1358 70%
2,716 1,940
Existing Pumps Pump Service GPM AT MBH
CP-3/CP-3 Heat 130 30 1,950
Design Heating Load Design MBH at BTUH/sgff
1,950 62,500 31
Energy Analysis
Fuel Oil Boilers Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
2,297,992 100% 2,297,992 73% 138.5 22,729
Boiler Pumping Season GPM Head bhp 2 kWh
Winter 136 12 0.75 70% 7,002
Schoenbar Middle School Calculations Page 2 Appendix C
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Schoenbar Middle School
Annual Energy Requirements
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 1,950 70% 1,365 0 400
B-1 1,358 1,358
Total 2,723 1,358
Design 140% 70%
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 1,570 6% 720
Oct 740 3% 744
2,310 9% 1,464
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
2,297,992 91% 2,080,436 72% 138.5 20,870
Electric Boilers Load.kBTU %Load Net.kBTU Efficiency kWh
2,297,992 9%217,556 95%67,079
Boiler Pumping Boiler GPM Head IA n kWh
Fuel Oil 136 12 0. 75 70% 5,832
Electric 137 12 0.75 70% 1175
7,007
Schoenbar Middle School Calculations Page 3 Appendix C
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Schoenbar Middle School
Annual Energy Requirements
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
Wood 1,950 70% 1,365 0
B-1 1358 1358
Total 2,723 1,358
Design 140% 70%
Energy Analysis
Wood Boiler Load.kBTU %Load Net.kBTU Efficiency kBTU/ton tons Container Loss tons
2,297,992 90% 2,068,193 71%15,560 188 0% 188
Fuel Oil Boiler Load,kBTU % Load Net,kBTU Efficiency kBTU/gal Fuel,gals
2,297,992 10%229,799 71% 138.5 2,337
Electric Loads Boiler GPM Head bhp a kWh
Fuel Oil 136 12 0.75 70% 700
Wood 137 12 0.75 70% 6,325
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2353
11,319
AIR SOURCE HEAT PUMP
AHU-2: Admin CFM.max CFM,min Min OSA MAT Tmin Steps A CFM HP,size
24,830 12,000 3,150 65 35 6 1,833 120
Heat Pump
Tosa Hours CFM,SA MAT MBH kBtu Gallons COP kWh
82 13 24,830 82 0 0 0 4.5 0
77 36 24,830 77 0 0 0 4.3 0
72 85 24,830 72 0 0 0 4.1 0
67 178 24,830 67 0 0 0 3.8 0
62 334 22,997 62 75 24,887 264 3.5 2,084
57 414 21,164 57 120 49,680 528 3.3 4,412
52 343 19,331 52 120 41,160 437 3.1 3, 891
47 358 17,499 47 120 42,960 456 2.8 4,497
42 445 15,666 42 120 53,400 567 2.6 6,019
37 295 13,833 37 120 35,400 376 2.4 4,323
32 142 12,000 32 120 17,040 181 2.3 2, 171
27 96 12,000 27 120 11,520 122 2. 2 1,535
22 68 12,000 22 120 8,160 87 2.1 1,139
17 54 12,000 17 120 6,480 69 2. 0 950
12 33 12,000 12 120 3,960 42 1.9 611
7 16 12,000 7 120 1,920 20 1.8 313
2 6 12,000 2 120 720 8 1.7 124
297,287 -3,157 32,069
2.7
Schoenbar Middle School Calculations Page 4 Appendix C
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Schoenbar Middle School
Annual Energy Requirements
AHU-3: Classrooms CFM.max CFM.min Min OSA MAT TT min Steps A CFM HP.size
22,100 11,000 4,000 60 35 5 1,850 120
Heat Pump
Tosa Hours CFM,SA MAT MBH kBtu Gallons COP kWh
82 13 22,100 82 0 0 0 4.5 0
77 36 22,100 77 0 0 0 4.3 0
72 85 22,100 72 0 0 0 4.1 0
67 178 22,100 67 0 0 0 3.8 0
62 334 22,100 62 72 23,916 254 3.5 2,003
57 414 20,250 57 120 49,680 528 3.3 4,412
52 343 18,400 52 120 41,160 437 3.1 3,891
47 358 16,550 47 120 42,960 456 2.8 4,497
42 445 14,700 42 120 53,400 567 2.6 6,019
37 295 12,850 37 120 35,400 376 2.4 4,323
30 142 11,000 30 120 17,040 181 2.3 2,171
27 96 11,000 27 120 11,520 122 2.2 1,535
22 68 11,000 22 120 8,160 87 2.1 1,139
17 54 11,000 17 120 6,480 69 2.0 950
12 33 11,000 12 120 3,960 42 1.9 611
7 16 11,000 7 120 1,920 20 1.8 313
2 6 11,000 2 120 720 8 1.7 124
296,316 -3,146 31,988
2.7
Fuel Oil,gal 24,400
Savings -6,303
New Use,gal 18,097
Schoenbar Middle School Calculations Page 5 Appendix C
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Schoenbar Middle School
Status Quo
Boiler Status Lead Lag Combined
Boiler Type Fuel Oil Fuel Oil
Burner High-Low High-Low
Percent Load 100% 0% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 2.0%2.0% 64.7
Standby loss 2. 0%
Energy source Fuel Oil Fuel Oil Total
Gross output,MBH 1,358 1,358 2,716
Input,MBH 1,617 1,617 3,233
Design Heating Load,MBH 1,950
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses,MBH Losses,MBH Losses.MBH
1% 20 3.1 64.7 64.3 12.9%14%23,693 184,149
10% 195 31.2 64.7 60.8 55.5%11% 195,000 351,633
20% 390 62.4 64.7 56.9 68.0%14% 468,000 688,720
30% 585 93.6 64.7 53.0 73.5%23% 1,170,000 1,592,467
40% 780 124.8 64.7 49.1 76.6%21% 1,404,000 1,833,360
50% 975 156.0 64.7 45.2 78.6% 9%780,000 992,667
60%1,170 187.2 64.7 41.3 80.0% 6%585,000 731,567
70%1,365 218.4 64.7 37.4 81.0% 2%204,750 252,815
80%1,560 249.6 64.7 33.5 81.8% 1%124,800 152,619
90%1,755 280.8 64.7 29.6 82.4% 0%19,305 23,430
100%1,950 312.0 64.7 25.7 82.9% 0% 7,800 9,409
70.3% 100.0% 4,982,348 6,812, 836
Average Seasonal 73%
Page 6
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Schoenbar Middle School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Combined
Boiler Type Wood Fuel Oil
Burner Modulating High-Low
Percent Load 90% 10% 100%
Combustion efficiency 80.0% 84.0% 80.4%
Jacket losses 2.5%2.0% 75.0
Standby loss 1.5%
Energy source Pellets Pellets Total
Gross output,MBH 1,365 1,358 2,723
Input,MBH 1,706 1,617 3,323
Design Heating Load,MBH 1,950
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby
Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses, MBH Losses,MBH Losses, MBH
1% 20 3. 8 75.0 49.6 13.2%14%23,693 179,653
10% 195 38.2 75.0 46.9 54.9%11% 195,000 355,128
20% 390 76.4 75.0 44.0 66.6%14% 468,000 702,508
30% 585 114.7 75.0 41.1 71. 7%23% 1,170,000 1,631,437
40% 780 152.9 75.0 38.1 74.6%21% 1,404,000 1,882,824
50% 975 191.1 75.0 35.2 76.4% 9%780,000 1,021,047
60%1,170 229.3 75.0 32.3 77.7% 6%585,000 753,302
70%1,365 267.5 75.0 29.4 78.6% 2%204,750 260,535
80%1,560 305.8 75.0 26.4 79.3% 1%124,800 157,375
90%1,755 344.0 75.0 23.5 79.9% 0%19,305 24,172
100%1,950 382.2 75.0 20.6 80.3% 0% 7,800 9,711
68.5% 100.0% 4,982,348 6,977,692
Average Seasonal 71%
Page 7
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Schoenbar Middle School
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Heating Plant
Retain existing heating plant 0 1 LS 0.00 0
Contingencies
Estimating contingency 0 15% 0
Overhead&profit 0 30% 0
Design fees 0 10% 0
Project management 0 10% 0
Total Construction Costs 0
Annual Costs Years Qty Unit I Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 57,900
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 22,729 gallons 3.26 1,699,712
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 7,002 kWh 0.10 10,998
Total Energy Costs $1,710,700
Present Worth 1,768,600 I
Schoenbar Middle School Calculations Page 8 Appendix C
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Schoenbar Middle School
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6. 6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler and appurtenances 0 1 ea 3,000 3,000
Electric boiler 400 kW 0 1 ea 32,000 32,000
Primary piping,pump,and appurtenances 0 1 ea 20,000 20,000
Controls
Additional controls 0 6 pts 1,750 10,500
Electrical
Upgrade electric service to electric boiler 0 1 LS 87,000 87,000
3-phase service for boiler pump 0 1 LS 5,000 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 23,925
Overhead&profit 0 30% 55,028
Design fees 0 10% 23,845
Project management 0 10% 26,230
Total Construction Costs 288,500
Annual Costs Years Qty 1 Unit I Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0. 5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 31,600
Energy Costs Years Qty I Unit I Base Cost Present Value
Fuel Oil 1 - 20 20,870 gallons 3.26 1,560,709
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 74,085 kWh 0.10 116,360
Total Energy Costs $1,677,100
Present Worth 1,997,200
Schoenbar Middle School Calculations Page 9 Appendix C
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Schoenbar Middle School
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty 1 Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler,fuel piping,flue,etc. 0 1 LS 3,500 3,500
Pellet boiler w/precipitator and augers 1365 MBH 0 1 ea 155,000 155, 000
Pellet silo 20 tons 0 1 LS 40,000 40,000
Connect to existing chimney 0 1 ea 5,000 5,000
Connect to primary piping,new pump,appurt 0 1 ea 20,000 20,000
Accumulator tank 0 1 ea 12,000 12,000
Additional controls 0 6 pts 1,750 10,500
Electrical
3-phase service for wood boiler and precipitator 0 2 LS 5,000 10,000
Relocate 3-phase service for boiler pump 0 1 LS 2,000 2,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% $39,600.00
Overhead&profit 0 30% 91,080
Design fees 0 10% 39,468
Project management 0 10% 43,415
Total Construction Costs 477,600
Annual Costs Years Qty I Unit I Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
Annual,each 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 80,400
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 2,337 gallons 3.26 174, 759
Wood Pellets-Initial Fill 0 20 tons 326.66 6,533
Wood Pellets 1 - 20 188 tons 326.66 1,054,897
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 11,319 kWh 0.10 17,779
Total Energy Costs $1,254,000
Present Worth 1,812,000
Schoenbar Middle School Calculations Page 10 Appendix C
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Schoenbar Middle School
Air Source Heat Pump and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6. 6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit I Base Cost Year 0 Cost
Mechanical
Install OSA fan coil unit with DX coil,3,000 cfm 0 4 LS 6,000 24,000
Ductwork modifications for fan coil unit 0 4 LS 3,750 15,000
Outdoor unit 0 2 ea 10,000 20,000
Refrigerant piping 0 2 LS 2,500 5,000
Additional controls 0 18 pts 1,750 31,500
Electrical
3-phase service for outdoor unit 0 2 LS 6,000 12,000
3-phase service for fan coils 0 4 LS 6,000 24,000
Commissioning 0 2 LS 6,000 12,000
Contingencies
Estimating contingency 0 15% 21,525
Overhead&profit 0 30% 49,508
Design fees 0 10% 21,453
Project management 0 10% 23,599
Total Construction Costs 259,600
Annual Costs Years Qty I Unit I Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Air-source heat pump maintenance
Parts Allowance 1 - 20 2 LS 300.00 9,189
Monthly: 30 minutes per month 0.5 hours/month 1 - 20 12 hrs 38.50 7,076
Every Three Months: 30 minutes each 0.67 hours/3 months 1 - 20 5 hrs 38.50 3,145
Annual 8 hours/year 1 - 20 16 hrs 38.50 9,434
Five Year Maintenance 4 hours/year 5 - 5 8 hrs 38.50 267
Five Year Maintenance 4 hours/year 10 - 10 8 hrs 38.50 236
Five Year Maintenance 4 hours/year 15 - 15 8 hrs 38.50 210
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 105,400
Energy Costs Years Qty Unit I Base Cost Present Value
Fuel Oil 1 - 20 18,097 gallons 3.26 1,353,348
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 64,056 kWh 0.10 100,608
Total Energy Costs $1,454,000
Present Worth 1,819,000
Schoenbar Middle School Calculations Page 11 Appendix C
Appendix D
Fawn Mountain Elementary School Calculations
Ketchikan Gateway Borough 55 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 jim @alaskaenergy.us
Fawn Mountain Elementary School
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
Option I Construction 1 Annual Energy Total of Base I .
Base Case: Fuel Oil 6.6%,Electricity 2. 5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 57,900 $1,281,200 $1,339,100
Electric and Fuel Oil Boilers 758,900 31,600 $1,237,800 $2,028,300 151%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 ; $930,800 $1,557,700 116%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 I $667,900 $2,307,000 172%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,296,500 $1,510,600 113%
High Fuel Oil Inflation Case P 8%
Status Quo: Fuel Oil Boilers 0 57,900 $1,480,500 $1,538,400
Electric and Fuel Oil Boilers 758,900 31,600 $1,422,900 $2,213,400 144%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 951,000 $1,577,900 103%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 746,500 $2,385,600 155%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,497,300 $1,711,400 111%
Low Fuel Oil Inflation Case(off 4.8%
Status Quo: Fuel Oil Boilers 0 57,900 $1,070,000 $1,127,900
Electric and Fuel Oil Boilers 758,900 31,600 $1,041,700 $1,832,200 162%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 909,300 $1,536,200 136%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 584,600 $2,223,700 197%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,083,700 $1,297,800 115%
High Electricity Inflation Case(th 4%
Status Quo: Fuel Oil Boilers 0 57,900 $1,282,400 $1,340,300
Electric and Fuel Oil Boilers 758,900 31,600 $1,247,100 $2,037,600 152%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 933,300 $1,560,200 116%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 696,200 $2,335,300 174%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,298,700 $1,512,800 113%
Low Electricity Inflation Case(@ 1%
Status Quo: Fuel Oil Boilers 0 57,900 $1,280,200 $1,338,100
Electric and Fuel Oil Boilers 758,900 31,600 $1,230,000 $2,020,500 151%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 928,600 $1,555,500 116%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 ' $ 644,400 $2,283,500 171%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,294,700 $1,508,800 113%
High Wood Pellet Inflation Case p 5%
Status Quo: Fuel Oil Boilers 0 57,900 $1,281,200 $1,339,100
Electric and Fuel Oil Boilers 758,900 31,600 $1,237,800 $2,028,300 151%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 $1,047,800 $1,674,700 125%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 667,900 $2,307,000 172%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,296,500 $1,510,600 113%
Fawn Mountain Elementary Calculations Page 1 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Fawn Mountain Elementary School
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6. 6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost, ton
Results
Option Construction Annual Energy Total of Base
Low Wood Pellet Inflation Case C@ 2.75%
Status Quo: Fuel Oil Boilers 0 57,900 1 $1,281,200 $1,339,100
Electric and Fuel Oil Boilers 758,900 31,600 $1,237,800 $2,028,300 151%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 856,500 $1,483,400 111%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 667,900 $2,307,000 172%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,296,500 $1,510,600 113%
Lower Wood Pellet Cost C@$290 per ton
Status Quo: Fuel Oil Boilers 0 57,900 ' $1,281,200 $1,339,100
Electric and Fuel Oil Boilers 758,900 31,600 $1,237,800 $2,028,300 151%
Wood Pellet and Fuel Oil Boilers 541,800 85,100 913,500 $1,540,400 115%
Ground Source Heat Pump and Fuel Oil Boil $1,573,300 65,800 667,900 $2,307,000 172%
Air Source Heat Pump and Fuel Oil Boilers 123,500 90,600 $1,296,500 $1,510,600 113%
Fawn Mountain Elementary Calculations Page 2 Appendix D
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Fawn Mountain Elementary School
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 17,367
2010 18.325
Average 17,800
Heating Load,kBTU Fuel,gals kBTU/pal Efficiency Load,kBTU
17,800 138.5 68% 1,676,404
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Gross MBH Factor Net MBH
B-1 872 85% 741
B-2 872 85% 741
1,744 1,482
Existing Pumps Pump Service GPM AT MBH
CP-3.4 Heat 120 20 1,200
CP-5/6 Radiant 58 10 290
178 1,490
Design Heating Load Design MBH at BTUH/spff
1,482 42,134 35
Energy Analysis
Fuel Oil Boilers Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
1,676,404 100% 1,676,404 71% 138.5 17,048
Boiler Pumping Season GPM Head bhp a kWh
Winter 87 12 0.48 70% 4,479
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 1,490 70% 1,043 0 306
B-1 1,490 59% 872 872
B-2 1,490 59% 872 872
Total 2,786 1,743
Design 188%118%
Fawn Mountain Elementary Calculations Page 3 Appendix D
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Fawn Mountain Elementary School
Annual Energy Requirements
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 490 3% 720
Oct 550 3% 744
1,040 6% 1,464
Fuel Oil Boilers Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
1,676,404 94% 1,578,457 72% 138.5 15,830
Electric Boilers Load.kBTU %Load Net.kBTU Efficiency kWh
1,676,404 6% 97,947 95%30,200
Boiler Pumping Boiler GPM Head bhp a kWh
Fuel Oil 87 12 0.48 70% 3,731
Electric 104 12 0.58 70% 897
4,628
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
Wood 1,482 70% 1,038 0
B-1 872 872
B-2 872 872
Total 2,782 1,744
Design 188%118%
Energy Analysis
Wood Boiler Load.kBTU %Load Net.kBTU Efficiency kBTU/ton tons Container Loss tons
1,676,404 90% 1,508,764 70%15,560 139 0% 139
Fuel Oil Boiler Load,kBTU %Load Net,kBTU Efficiency kBTU/gal Fuel,gals
1,676,404 10%167,640 70% 138.5 1,729
Electric Loads Boiler GPM Head bhp a kWh
Fuel Oil 87 12 0.48 70% 448
Wood 104 12 0.58 70% 4,833
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2753
9,575
Fawn Mountain Elementary Calculations Page 4 Appendix D
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 jim @alaskaenergy.us
Fawn Mountain Elementary School
Annual Energy Requirements
GROUND SOURCE HEAT PUMP
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
GSHP 1,482 50% 741 0
B-1 1,482 50% 741 741
B-2 1,482 50% 741 741
Total 2,224 1,482
Design 150%100%
Loopfield MBH Tons Inft/ton Intl Depth Boreholes
741 62 250 15,442 325 48
Energy Analysis
Ground Source Heat Pump Load.kBTU %Load Net,kBTU Efficiency kWh
1,676,404 60% 1,005,842 320%92,070
Fuel Oil Boiler Load,kBTU %Load Net,kBTU Efficiency kBTU/pal Fuel,gals
1,676,404 40%670,562 72% 138.5 6,724
Electric Loads
GPM Head n pump BHP n motor kW Hours kWh
Ground Loop 185 120 60% 9.4 89% 7.8 1,357 10,645
HP Load 185 20 55% 1.7 75% 1.7 1,357 2,297
Boiler 30 20 55% 0.3 75% 0.3 905 248
13,190
Additional Electric Load
Load LIN kW
Heat Pump 1 72
Load Pumps 1 8
Source Pumps 1 2
82
Fawn Mountain Elementary Calculations Page 5 Appendix D
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Fawn Mountain Elementary School
Annual Energy Requirements
AIR SOURCE HEAT PUMP
Sizing Analysis
AHU-2: School CFM,max CFM.min Min OSA MAT Tmin Steps A CFM HP.MBH
22,500 12,000 5,000 60 35 5 1,750 200
Energy Analysis
Heat Pump Performance Fuel Oil Heat Pump
Tosa Hours CFM.SA MAT MBH kBtu Gallons COP kWh
82 13 22,500 82 0 0 0 4.5 0
77 36 22,500 77 0 0 0 4. 3 0
72 85 22,500 72 0 0 0 4.1 0
67 178 22,500 67 0 0 0 3.8 0
62 334 22,500 62 0 0 0 3.5 0
57 414 20,750 60 0 0 0 3.3 0
52 343 19,000 60 0 0 0 3.1 0
47 358 17,250 60 0 0 0 2.8 0
42 445 15,500 60 0 0 0 2. 6 0
37 295 13,750 58 30 8,762 93 2.4 1,070
30 142 12,000 53 86 12,269 130 2.3 1,563
27 96 12,000 52 103 9,850 105 2.2 1,312
22 68 12,000 50 130 8,813 94 2.1 1,230
17 54 12,000 48 157 8,456 90 2.0 1,239
12 33 12,000 46 184 6,059 64 1.9 935
7 16 12,000 44 200 3,200 34 1.8 521
2 6 12,000 42 200 1200 13 1.7 207
2,916 58,608 622 8,077
Existing,gal 17,800 2.1
New FO Gals 17,178
Fawn Mountain Elementary Calculations Page 6 Appendix D
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Status Quo
Boiler Status Lead Lag Combined
Boiler Type Fuel Oil Fuel Oil
Burner High-Low High-Low
Percent Load 100% 0% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 2.0%2.0% 70.6
Standby loss 2.5%
Energy source Fuel Oil Fuel Oil Total
Gross output,MBH 1,482 1,482 2,964
Input,MBH 1,764 1,764 3,529
Design Heating Load,MBH 1,950
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby
Efficiency Annual Hours Output,kBtu Input,kBtuMBHLosses.MBH Losses,MBH Losses,MBH
1% 20 3.1 70.6 87.7 10.8%14%23,693 219,816
10% 195 31.2 70.6 83.3 51.3%11% 195,000 380,111
20% 390 62.4 70.6 78.5 64.8%14% 468,000 721,723
30% 585 93.6 70.6 73.6 71.1%23% 1,170,000 1,645,521
40% 780 124.8 70.6 68.7 74.7%21% 1,404,000 1,879,354
50% 975 156.0 70.6 63.8 77.1% 9%780,000 1,012,329
60%1,170 187.2 70.6 59.0 78.7% 6%585,000 743,368
70%1,365 218.4 70.6 54.1 79.9% 2%204,750 256,209
80%1,560 249.6 70.6 49.2 80.9% 1%124,800 154,351
90%1,755 280.8 70.6 44.3 81.6% 0%19,305 23,658
100%1,950 312.0 70.6 39.5 82.2% 0% 7,800 9,488
68.5% 100.0% 4,982,348 7,045,927
Average Seasonal 71%
Page 7
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Fawn Mountain Elementary School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Combined
Boiler Type Wood Fuel Oil
Burner Modulating High-Low
Percent Load 90% 10% 100%
Combustion efficiency 80.0% 84.0% 80.4%
Jacket losses 3.5%2. 0% 80.7
Standby loss 2.0%
Energy source Pellets Pellets Total
Gross output,MBH 1,038 1,482 2,520
Input, MBH 1,298 1,764 3,062
Design Heating Load,MBH 1,950
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby
Efficiency Annual Hours Output,kBtu Input, kBtuMBHLosses,MBH Losses.MBH Losses,MBH
1% 20 3.8 80.7 60.8 11.8%14%23,693 200,312
10% 195 38.2 80.7 57.3 52.5%11% 195,000 371,254
20% 390 76.4 80.7 53.4 64.9%14% 468,000 720,689
30% 585 114.7 80.7 49.5 70.5%23% 1,170,000 1,659,788
40% 780 152.9 80.7 45.6 73.6%21% 1,404,000 1,906,585
50% 975 191.1 80.7 41.7 75.7% 9%780,000 1,030,827
60%1,170 229.3 80.7 37.8 77.1% 6%585,000 758,927
70%1,365 267.5 80.7 33.9 78.1% 2%204,750 262,076
80%1,560 305.8 80.7 30.0 78.9% 1%124,800 158,120
90%1,755 344.0 80.7 26.1 79.6% 0%19,305 24,264
100%1,950 382.2 80.7 22.2 80.1% 0% 7,800 9,741
67.5% 100.0% 4,982,348 7,102,582
Average Seasonal 70%
Page 8
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Heating Plant
Retain existing heating plant 0 1 LS 0.00 0
Contingencies
Estimating contingency 0 15% 0
Overhead&profit 0 30% 0
Design fees 0 1 10% 0
Project management 0 10% 0
Total Construction Costs 0
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 57,900
Energy Costs Years Qty I Unit I Base Cost Present Value
Fuel Oil 1 - 20 17,048 gallons 3.26 1,274,116
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 4,479 kWh 0.10 7,036
Total Energy Costs $1,281,200
Present Worth 1,339,100
Fawn Mountain Elementary Calculations Page 9 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Mechanical
Electric boiler 320 kW 0 1 ea 28,000 28,000
Demo boiler piping 0 1 ea 3,000 3,000
Primary piping and appurtenances with secondary loop 0 1 ea 20,000 20,000
Primary pumps 0 3 ea 2,500 7,500
Controls
Additional controls 0 12 pts 1,750 21,000
Electrical
New service for electric boiler 0 1 LS 330,000 330,000
3-phase service for boiler pump 0 1 LS 5,000 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 62,925
Overhead&profit 0 30% 144,728
Design fees 0 10% 62,715
Project management 0 10% 68,987
Total Construction Costs 758,900
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 31,600
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 15,830 gallons 3.26 1,183,094
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 34,828 kWh 0.10 54,702
Total Energy Costs $1,237,800
Present Worth 2,028,300
Fawn Mountain Elementary Calculations Page 10 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit Base Cost Year 0 Cost
Mechanical
Containerized pellet boiler w/precipitator and augers 1038 MBH 0 1 ea 155,000 155,000
Pellet silo 20 tons 0 1 LS $40,000 40,000
Direct bury piping 0 50 Inft 300 15,000
Demo boiler piping 0 1 ea 3,000 3,000
Primary piping and appurtenances with secondary loop 0 1 ea 20,000 20,000
Primary pumps 0 3 ea 2,500 7,500
Accumulator tank 0 1 ea 12,000 12,000
Controls
Additional controls 0 12 pts 1,750 21,000
Electrical
3-phase service for wood boiler container 0 1 LS I $15,000 15,000
3-phase service for boiler pump 0 2 LS 2,500 5,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15%44,925.00
Overhead&profit 0 30% 103,328
Design fees 0 10% 44,775
Project management 0 _ i 10% 49,253
Total Construction Costs 541,800
Annual Costs Years Qty Unit ; Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
2000 hour maintenance 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 16 hrs 38.50 9,434
Total Annual Costs 85,100
Fawn Mountain Elementary Calculations Page 11 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907. 789. 1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Wood Pellet and Fuel Oil Boilers
Energy Costs Years Qty Unit I Base Cost Present Value
Fuel Oil 1 - 20 1,729 gallons 3.26 129,232
Wood Pellets- Initial Fill 0 20 tons 326.66 6,533
Wood Pellets 1 - 20 139 tons 326.66 779,951
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 9,575 kWh 0.10 15,039
Total Energy Costs 930,800
Present Worth 1,557,700
Fawn Mountain Elementary Calculations Page 12 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Ground Source Heat Pump and Fuel Oil Boiler
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year City Unit J Base Cost Year 0 Cost
Architectural
Mechanical Space 0 240 ea 250 60,000
Loopfield
Thermal conductivity test
Borehole,backfill,with 1"HDPE pipe loop 0 325 Intl 50 16,250
Thermal conductivity test kit rental and data analysis 0 1 Is 2,500 2,500
Test labor 0 20 hrs 120 2,400
Generator rental 0 1 Is 600 600
Loopfield: Mob/Demob from Juneau 0 1 Is 25,000 25,000
Loopfield: Boreholes,pipe loop,backfill,horizontal piping 0 15,117 loft 34 513,967
Loopfield header and piping in building 0 1 Is 10,000 10,000
Heating Plant
Heat Pump
741 MBH water-to-water heat pump 0 1 Is 110,000 110,000
Evaporator pump,10 HP with VFD,and primary piping,appurt 0 1 ea 15,000 15,000
Condenser pump,2 HP,piping,and appurtenances 0 1 ea 7,000 7,000
Heating tank,300 gallons 0 1 Is 10,000 10,000
Primary piping and appurtenances with secondary loop 0 1 ea 20,000 20,000
Primary pumps 0 3 ea 2,500 7,500
DDC Controls
Heating and cooling 0 20 pts 1,600 32,000
Electrical
Electrical,3-phase power 0 3 Is 7,500 22,500
Electrical,1-phase power 0 2 Is 7,500 15,000
Contingencies
Estimating contingency 0 15% 130,458
Overhead&profit 0 30% 300,052
Design fees 0 10% 130,023
Project management 0 10% 143,025
Total Construction Costs $1,573,300
Fawn Mountain Elementary Calculations Page 13 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Ground Source Heat Pump and Fuel Oil Boiler
Annual Costs Years Qty 1 Unit Base Cost Present Value
Daily Heating Plant Observation 7 min/day 1 - 20 43 hrs 1 $38.50 25,109
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1.0 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs j $38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 1 $38.50 4,717
Water-to-Water heat pump maintenance
Parts Allowance 1 - 20 1 LS 250.00 3,829
Monthly: 30 minutes per month 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Every Three Months: 30 minutes each 0.5 hours/3 months 1 - 20 2 hrs 38.50 1,179
Annual: 8 hours per year 8 hours/year 1 - 20 8 hrs 38.50 4,717
Five Year Maintenance 4 hours/year 5 - 5 4 hrs 38.50 133
Five Year Maintenance 4 hours/year 10 - 10 4 hrs 38.50 118
Five Year Maintenance 4 hours/year 15 - 15 4 hrs 38.50 105
Pump maintenance,4 hrs each 1 - 20 16 hrs 1 $38.50 9,434
Total Annual Costs 65,800
Energy Costs Years Qty I Unit I Base Cost Present Value
Fuel Oil 1 - 20 6,724 gallons 3.26 502,568
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 _ 105,260 kWh 0.10 165,323
Total Energy Costs 667,900
Present Worth 2,307,000
Fawn Mountain Elementary Calculations Page 14 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Air Source Heat Pump and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Mechanical
Install OSA fan coil unit with DVX coil,2,500 cfm 0 2 LS 5,000 10,000
Ductwork modifications for fan coil unit 0 2 LS 3,000 6,000
Outdoor unit 0 1 ea 10,000 10,000
Refrigerant piping 0 1 LS 2,500 2,500
Controls
Additional controls 0 9 pts 1,750 15,750
Electrical
3-phase service for outdoor unit 0 1 LS 6,000 6,000
3-phase service for fan coils 0 2 LS 1 $6,000 12,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% 10,238
Overhead&profit 0 30% 23,546
Design fees 0 10% 10,203
Project management 0 10% 11,224
Total Construction Costs 123,500
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Air-source heat pump maintenance
Parts Allowance 1 - 20 1 LS 300.00 4,595
Monthly: 30 minutes per month 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Every Three Months: 30 minutes each 0.67 hours/3 months 1 - 20 3 hrs 38.50 1,572
Annual: 8 hours per year 8 hours/year 1 - 20 8 hrs 38.50 4,717
Five Year Maintenance 4 hours/year 5 - 5 4 hrs 38.50 133
Five Year Maintenance 4 hours/year 10 - 10 4 hrs 38.50 118
Five Year Maintenance 4 hours/year 15 - 15 4 hrs 38.50 105
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 90,600
Fawn Mountain Elementary Calculations Page 15 Appendix D
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Fawn Mountain Elementary School
Air Source Heat Pump and Fuel Oil Boilers
Energy Costs Years Qty 1 Unit Base Cost Present Value
Fuel Oil 1 - 20 17,178 gallons , $3.26 1,283,818
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 8,077 kWh 0.10 12,686
Total Energy Costs $1,296,500
Present Worth 1,510,600
Fawn Mountain Elementary Calculations Page 16 Appendix D
Appendix E
Houghtaling Elementary School Calculations
Ketchikan Gateway Borough 56 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 20, 2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Houghtaling Elementary School
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2. 5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
Option I Construction Annual Energy Total of Base I
Base Case: Fuel Oil 6. 6%,Electricity 2. 5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 57,900 913,900 971,800
Electric and Fuel Oil Boilers 570,700 40,400 881,700 $1,492,800 154%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 672,800 $1,257,900 129%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 866,100 $1,209,400 124%
High Fuel Oil Inflation Case p 8%
Status Quo: Fuel Oil Boilers 0 57,900 $1,054,100 $1,112,000
Electric and Fuel Oil Boilers 570,700 40,400 $1,007,800 $1,618,900 146%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 686,800 $1,271,900 114%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 989,400 $1,332,700 120%
Low Fuel Oil Inflation Case C?4. 8%
Status Quo: Fuel Oil Boilers 0 57,900 765,300 823,200
Electric and Fuel Oil Boilers 570,700 40,400 748,000 $1,359,100 165%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 658,000 $1,243,100 151%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 735,400 $1,078,700 131%
High Electricity Inflation Case @ 4%
Status Quo: Fuel Oil Boilers 0 57,900 916,900 974,800
Electric and Fuel Oil Boilers 570,700 40,400 894,600 $1,505,700 154%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 676,400 $1,261,500 129%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 879,300 $1,222,600 125%
Low Electricity Inflation Case p 1%
Status Quo: Fuel Oil Boilers 0 57,900 911,400 969,300
Electric and Fuel Oil Boilers 570,700 40,400 871,000 $1,482,100 153%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 669,800 $1,254,900 129%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 855,000 $1,198,300 124%
High Wood Pellet Inflation Case P 5%
Status Quo: Fuel Oil Boilers 0 57,900 913,900 971,800
Electric and Fuel Oil Boilers 570,700 40,400 881,700 $1,492,800 154%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 756,200 $1,341,300 138%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 866,100 $1,209,400 124%
Low Wood Pellet Inflation Case p 2.75%
Status Quo: Fuel Oil Boilers 0 57,900 913,900 971,800
Electric and Fuel Oil Boilers 570,700 40,400 881,700 $1,492,800 154%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 620,000 $1,205,100 124%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 866,100 $1,209,400 124%
Lower Wood Pellet Cost CE$290 per ton
Status Quo: Fuel Oil Boilers 0 57,900 913,900 971,800
Electric and Fuel Oil Boilers 570,700 40,400 881,700 $1,492,800 154%
Wood Pellet and Fuel Oil Boilers 504,700 80,400 660,600 $1,245,700 128%
Air Source Heat Pump and Fuel Oil Boilers 248,700 94,600 866,100 $1,209,400 124%
Houtaling Elementary School Calculations Page 1 Appendix E
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 jim @alaskaenergy.us
Houghtaling Elementary School
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 13,144
2010 12.306
Average 12,700
Heating Load,kBTU Fuel,gals kBTU/gal Efficiency Load,kBTU
12,700 138.5 68% 1,196,086
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size.MBH Factor Design MBH
B-1 1,632 70% 2,331
B-2 1632 70% 0
3,264 2,331
Existing Pumps Pump Service GPM nT MBH
CP-1/CP-2 Heat 216 23 2,484
Energy Analysis
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
1,196,086 100% 1,196,086 72% 138.5 11,994
Boiler Pumping Season GPM Head bhg a kWh
Winter 216 12 1.19 70% 11,121
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 2,484 70% 1,739 0 510
B-1 1,632 1,632
Total 3,371 1,632
Design 136% 66%
Houtaling Elementary School Calculations Page 2 Appendix E
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Houghtaling Elementary School
Annual Energy Requirements
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 710 6% 720
Oct 570 4% 744
1,280 10% 1,464
Fuel Oil Boilers Load.kBTU %Load Net,kBTU Efficiency kBTU/gal Fuel,gals
1,196,086 90% 1,075,536 72% 138.5 10,790
Electric Boilers Load.kBTU %Load Net. kBTU Efficiency kWh
1,196,086 10%120,550 95%37,169
Boiler Pumping Boiler GPM Head bhp a kWh
Fuel Oil 216 12 1.19 70% 9,263
Electric 174 12 0.96 70% 1496
10,759
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size,MBH Firm MBH
Wood 2,484 70% 1,739 0
B-1 1632 1632
Total 3,371 1,632
Design 136% 66%
Energy Analysis
Wood Boiler Load,kBTU %Load Net,kBTU Efficiency kBTU/ton tons Container Loss tons
1,196,086 90% 1,076,477 70%15,560 99 0% 99
Fuel Oil Boiler Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
1,196,086 10%119,609 72% 138.5 1,199
Electric Loads Boiler GPM Head bhp a kWh
Fuel Oil 216 12 1.19 70% 1,112
Wood 174 12 0.96 70% 8,057
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2753
13,464
Houtaling Elementary School Calculations Page 3 Appendix E
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Houghtaling Elementary School
Annual Energy Requirements
AIR SOURCE HEAT PUMP
AHU-1: Main Bldq CFM.max CFM.min Min OSA MAT Tmin Steps o CFM HP.size
20,150 10,000 4,875 58 35 5 1,813 120
Tosa Hours CFM SA MAT MBH kBtu Gallons COP kWh
82 13 20,150 82 0 0 0 4.5 0
77 36 20,150 77 0 0 0 4.3 0
72 85 20,150 72 0 0 0 4.1 0
67 178 20,150 67 0 0 0 3.8 0
62 334 20,150 62 0 0 0 3.5 0
57 414 18,338 57 20 8,199 87 3.3 728
52 343 16,525 52 107 36,729 390 3.1 3,472
47 358 14,713 47 120 42,960 456 2. 8 4,497
42 445 12,900 42 120 53,400 567 2.6 6,019
37 295 11,088 37 120 35,400 376 2.4 4,323
32 142 10,000 32 120 17,040 181 2.3 2,171
27 96 10,000 27 120 11,520 122 2.2 1,535
22 68 10,000 22 120 8,160 87 2.1 1,139
17 54 10,000 17 120 6,480 69 2.0 950
12 33 10,000 12 120 3,960 42 1.9 611
7 16 10,000 7 120 1,920 20 1.8 313
2 6 10,000 2 120 720 8 1.7 124
226,488 -2,405 25,882
2.6
AHU-2: Basement CFM,max CFM.min Min OSA MAT Tmin Steps o CFM HP.size
9,130 9,130 2,500 60 35 5 0 48
Tosa Hours CFM SA MAT MBH kBtu Gallons COP kWh
82 13 9,130 82 0 0 0 4.5 0
77 36 9,130 77 0 0 0 4.3 0
72 85 9,130 72 0 0 0 4.1 0
67 178 9,130 67 0 0 0 3.8 0
62 334 9,130 62 0 0 0 3.5 0
57 414 9,130 57 10 4,082 43 3.3 363
52 343 9,130 52 59 20,293 215 3.1 1,919
47 358 9,130 47 108 38,830 412 2.8 4,064
42 445 9,130 42 120 53,400 567 2. 6 6,019
37 295 9,130 37 120 35,400 376 2.4 4,323
30 142 9,130 30 120 17,040 181 2. 3 2,171
27 96 9,130 27 120 11,520 122 2.2 1,535
22 68 9,130 22 120 8,160 87 2.1 1,139
17 54 9,130 17 120 6,480 69 2.0 950
12 33 9,130 12 120 3,960 42 1.9 611
7 16 9,130 7 120 1,920 20 1.8 313
2 6 9,130 2 120 720 8 1.7 124
201,805 -2,143 23,530
2.5
Fuel Oil,gal 12,700
Savings -2,150
New Use,gal 10,550
Houtaling Elementary School Calculations Page 4 Appendix E
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Status Quo
Boiler Status Lead Lag Combined
Boiler Type Fuel Oil Fuel Oil
Burner High-Low High-Low
Percent Load 100% 0% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 2. 0%2. 0% 77.7
Standby loss 2. 5%
Energy source Fuel Oil Fuel Oil Total
Gross output,MBH 1,632 1,632 3,264
Input,MBH 1,943 1,943 3,886
Design Heating Load,MBH 2,331
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input, kBtuMBHLosses, MBH Losses,MBH Losses,MBH
1% 23 3.7 77.7 96.6 11.6%14%28,322 244,597
10% 233 37.3 77.7 91.3 53.0%11% 233,100 439,426
20% 466 74.6 77.7 85.5 66.2%14% 559,440 844,793
30% 699 111.9 77.7 79.7 72.2%23% 1,398,600 1,937,125
40% 932 149.2 77.7 73.8 75.6%21% 1,678,320 2,219,636
50%1,166 186.5 77.7 68.0 77.8% 9%932,400 1,198,160
60%1,399 223.8 77.7 62.2 79.4% 6%699,300 881,134
70%1,632 261.1 77.7 56.4 80.5% 2%244,755 304,025
80%1,865 298.4 77.7 50.5 81.4% 1%149,184 183,312
90%2,098 335.7 77.7 44.7 82.1% 0%23,077 28,116
100%2,331 373.0 77.7 38.9 82.6% 0% 9,324 11,282
69.3% 100.0% 5,955,822 8,291,606
Average Seasonal 72%
Page 5
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Houghtaling Elementary School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Combined
Boiler Type Wood Fuel Oil
Burner Modulating High-Low
Percent Load 90% 10% 100%
Combustion efficiency 80.0% 84.0% 80.4%
Jacket losses 2.5%2.0% 93.2
Standby loss 2. 0%
Energy source Pellets Pellets Total
Gross output,MBH 1,739 1,632 3,371
Input,MBH 2,174 1,943 4,117
Design Heating Load,MBH 1,950
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses,MBH Losses,MBH Losses, MBH
1% 23 4.6 93.2 81.9 11.5%14%28,322 246,579
10% 233 45.7 93.2 77.7 51.8%11% 233,100 449,659
20% 466 91.4 93.2 73.0 64.4%14% 559,440 868,541
30% 699 137.1 93.2 68.3 70.1%23% 1,398,600 1,995,820
40% 932 182.8 93.2 63.7 73.3%21% 1,678,320 2,289,664
50%1,166 228.4 93.2 59.0 75.4% 9%932,400 1,236,929
60%1,399 274.1 93.2 54.4 76.8% 6%699,300 910,143
70%1,632 319.8 93.2 49.7 77.9% 2%244,755 314,162
80%1,865 365.5 93.2 45.0 78.7% 1%149,184 189,483
90%2,098 411.2 93.2 40.4 79.4% 0%23,077 29,069
100%2,331 456.9 93.2 35.7 79.9% 0% 9,324 11,667
67.2% 100.0% 5,955,822 8,541,716
Average Seasonal 70%
Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2. 5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Heating Plant
Retain existing heating plant 0 1 LS 0.00 0
Contingencies
Estimating contingency 0 15% 0
Overhead&profit 0 30% 0
Design fees 0 10% 0
Project management 0 10% 0
Total Construction Costs 0
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 57,900
Energy Costs Years Qty 1 Unit Base Cost Present Value
Fuel Oil 1 - 20 11,994 gallons 3.26 896,434
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity __ 1 - 20 11,121 kWh 0.10 17,468
Total Energy Costs 913,900
Present Worth 971,800
Houtaling Elementary School Calculations Page 7 Appendix E
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2. 75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler and appurtenances 400 MBH 0 1 ea 3,000 3,000
Electric boiler 510 kW 0 1 ea 35,000 35,000
Primary piping,pump,and appurtenances 0 1 ea 20,000 20,000
Controls
Additional controls 0 6 pts 1,750 10,500
Electrical
New electric servcie for electric boiler 0 1 LS 240,000 240,000
3-phase service for boiler pump 0 1 LS 5,000 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 47,325
Overhead&profit 0 30% 108,848
Design fees 0 10% 47, 167
Project management 0 10% 51,884
Total Construction Costs 570,700
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0. 5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
1 - 20 _ 0
Total Annual Costs 40,400
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 10,790 gallons 3.26 806,417
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 _ 47,928 kWh 1 $0.10 75,277
Total Energy Costs 881,700
Present Worth 1,492,800
Houtaling Elementary School Calculations Page 8 Appendix E .
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6. 6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler,fuel piping,flue,etc. 0 1 LS 3,500 3,500
Pellet boiler w/precipitator and augers 1750 MBH 0 1 ea 170,000 170,000
Pellet silo 20 tons 0 1 LS 40,000 40,000
Connect to existing chimney 0 1 ea 5,000 5,000
Connect to primary piping,new pump,appurt 0 1 ea 20,000 20,000
Accumulator tank 0 1 ea 12,000 12,000
Controls
Additional controls 0 6 pts 1,750 10,500
Electrical
3-phase service for wood boiler 0 1 LS 5,000 5,000
3-phase service for precipitator,1 HP 0 1 LS 5,000 5,000
Relocate 3-phase service for boiler pump 0 1 LS 2,000 2,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% $41,850.00
Overhead&profit 0 30% 96,255
Design fees 0 10% 41,711
Project management 0 10% 45,882
Total Construction Costs 504,700
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
Annual,each 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 80,400
Houtaling Elementary School Calculations Page 9 Appendix E
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Wood Pellet and Fuel Oil Boilers
Energy Costs Years Qty I Unit ! Base Cost Present Value
Fuel Oil 1 - 20 1,199 gallons 3.26 89,643
Wood Pellets-Initial Fill 0 20 tons 326.66 6,533
Wood Pellets 1 - 20 99 tons 326.66 555, 504
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 13,464 kWh 0.10 21,146
Total Energy Costs 672,800
Present Worth 1,257,900
Houtaling Elementary School Calculations Page 10 Appendix E
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Air Source Heat Pump and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3. 7% Wood Pellet Inflation
Construction Costs Year Qty I Unit Base Cost Year 0 Cost
Mechanical
Install OSA fan coil unit with DX coil,3,000 cfm 0 4 LS 6,000 24,000
Ductwork modifications for fan coil unit 0 4 LS 3,750 15,000
Outdoor unit 0 2 ea 10,000 20,000
Refrigerant piping 0 2 LS 2,500 5,000
Controls
Additional controls 0 18 pts 1,750 31,500
Electrical
3-phase service for outdoor unit 0 2 LS 5,000 10,000
3-phase service for fan coils 0 4 LS 5,000 20,000
Commissioning 0 2 LS 6,000 12,000
Contingencies
Estimating contingency 0 15% 20,625
Overhead&profit 0 30% 47,438
Design fees 0 10% 20,556
Project management 0 _ 10% 22,612
Total Construction Costs 248,700
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 7 min/day 1 - 20 43 hrs 38.50 25,109
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Air-source heat pump maintenance
Parts Allowance 1 - 20 2 LS 300.00 9,189
Monthly: 30 minutes per month 0.5 hours/month 1 - 20 12 hrs 38.50 7,076
Every Three Months: 30 minutes each 0.67 hours/3 months 1 - 20 5 hrs 38.50 3,145
Annual: 8 hours per year 8 hours/year 1 - 20 16 hrs 38.50 9,434
Five Year Maintenance 4 hours/year 5 - 5 8 hrs 38.50 267
Five Year Maintenance 4 hours/year 10 - 10 8 hrs 38.50 236
Five Year Maintenance 4 hours/year 15 - 15 8 hrs 38.50 210
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 94,600
Houtaling Elementary School Calculations Page 11 Appendix E
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/ Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Houghtaling Elementary School
Air Source Heat Pump and Fuel Oil Boilers
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 10,550 gallons 1 $3.26 788,450
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 49,412 kWh 0.10 77,608
Total Energy Costs 866,100
Present Worth 1,209,400
Houtaling Elementary School Calculations Page 12 Appendix E
Appendix F
Point Higgins Elementary School Calculations
Ketchikan Gateway Borough 57 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 20,2013
Juneau, Alaska 99801 jim @ataskaenergy.us
Point Higgins Elementary
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
Option I Construction Annual Energy Total of Base_I
Base Case: Fuel Oil 6.6%,Electricity 2. 5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,755,700 $1,904,100
Electric and Fuel Oil Boilers 530,000 40,400 $1,689,000 $2,259,400 119%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,285,000 $1,887,200 99%
High Fuel Oil Inflation Case p 8%
Status Quo: Fuel Oil Boilers 90,500 57,900 $2,055,600 $2,204,000
Electric and Fuel Oil Boilers 530,000 40,400 $1,963,900 $2,534,300 115%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,315,900 $1,918,100 87%
Low Fuel Oil Inflation Case(O 4. 8%
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,441,400 $1,589,800
Electric and Fuel Oil Boilers 530,000 40,400 $1,400,900 $1,971,300 124%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,252,700 $1,854,900 117%
High Electricity Inflation Case p 4%
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,757,100 $1,905,500
Electric and Fuel Oil Boilers 530,000 40,400 $1,703,900 $2,274,300 119%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,287,700 $1,889,900 99%
Low Electricity Inflation Case p 1%
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,754,500 $1,902,900
Electric and Fuel Oil Boilers 530,000 40,400 $1,676,600 $2,247,000 118%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,282,800 $1,885,000 99%
High Wood Pellet Inflation Case C@ 5%
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,755,700 $1,904,100
Electric and Fuel Oil Boilers 530,000 40,400 $1,689,000 $2,259,400 119%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,447,500 $2,049,700 108%
Low Wood Pellet Inflation Case p 2.75%
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,755,700 $1,904,100
Electric and Fuel Oil Boilers 530,000 40,400 $1,689,000 $2,259,400 119%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,182,000 $1,784,200 94%
Lower Wood Pellet Cost C@$290 per ton
Status Quo: Fuel Oil Boilers 90,500 57,900 $1,755,700 $1,904,100
Electric and Fuel Oil Boilers 530,000 40,400 $1,689,000 $2,259,400 119%
Wood Pellet and Fuel Oil Boilers 521,800 80,400 $1,261,100 $1,863,300 98%
Point Higgins Elementary Calculations Page 1 Appendix F
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Point Higgins Elementary
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 23,675
2010 25.041
Average 24,400
Heating Load,kBTU Fuel,gals kBTU/gal Efficiency Load,kBTU
24,400 138.5 68% 2,297,992
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size.MBH Factor
B-1 1,084 68%
B-2 1084 68%
2,168
Existing Pumps Pump Service GPM AT MBH
PMP-1A/1B Heat 160 20 1,600
Design Heating Load Design MBH at BTUH/sgft
1,600 55,040 29
Energy Analysis
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/pal Fuel,gals
2,297,992 100% 2,297,992 71% 138.5 23,369
Boiler Pumping Season GPM Head bhp n kWh
Winter 100 12 0.55 70% 5,149
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizinq Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 1,600 70% 1,120 0 328
B-1 1,600 68% 1084 1084
Total 2,204 1,084
Design 138% 68%
Point Higgins Elementary Calculations Page 2 Appendix F
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Point Higgins Elementary
Annual Energy Requirements
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 1,130 5% 720
Oct 600 2% 744
1,730 7% 1,464
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
2,297,992 93% 2,135,061 72% 138.5 21,420
Electric Boilers Load.kBTU %Load Net,kBTU Efficiency kWh
2,297,992 7%162,931 95%50,236
Boiler Pumping Boiler GPM Head bhp a kWh
Fuel Oil 100 12 0.55 70% 4,288
Electric 112 12 0.62 70% 964
5,252
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
Wood 1,600 70% 1,120 0
B-1 1,084 1084
Total 2,204 1,084
Design 138% 68%
Energy Analysis
Wood Boiler Load,kBTU %Load Net.kBTU Efficiency kBTU/ton tons Container Loss tons
2,297,992 90% 2,068,193 69%15,560 193 0% 193
Fuel Oil Boiler Load.kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
2,297,992 10%229,799 69% 138.5 2,405
Electric Loads Boiler GPM Head b D. kWh
Fuel Oil 100 12 0.55 70% 515
Wood 112 12 0.62 70% 5,190
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0. 5 89% 2753
9,999
Point Higgins Elementary Calculations Page 3 Appendix F
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy@gci.net
Pt. Higgins Elementary School
Status Quo
Boiler Status Lead Lag Combined
Boiler Type Fuel Oil Fuel Oil
Burner On-off On-off
Percent Load 100% 0% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 2.0%2.0% 51. 6
Standby loss 3.0%
Energy source Fuel Oil Fuel Oil Total
Gross output,MBH 1,084 1,084 2,168
Input,MBH 1,290 1,290 2,581
Design Heating Load,MBH 1,600
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input, kBtu
MBH Losses, MBH Losses, MBH Losses,MBH
1% 16 2. 6 51.6 76.9 10.9%14%19,440 178,760
10% 160 25.6 51.6 72.6 51.6%11% 160,000 309,848
20% 320 51.2 51.6 67.8 65.2%14% 384,000 588,777
30% 480 76.8 51. 6 63.0 71.5%23% 960,000 1,342,895
40% 640 102.4 51.6 58.2 75.1%21% 1,152,000 1,534,046
50% 800 128.0 51. 6 53.4 77.4% 9%640,000 826,438
60% 960 153.6 51.6 48.6 79.1% 6%480,000 606,924
70%1,120 179.2 51. 6 43.8 80.3% 2%168,000 209,197
80%1,280 204.8 51.6 39.0 81.2% 1%102,400 126,036
90%1,440 230.4 51.6 34.2 82.0% 0%15,840 19,319
100%1,600 256.0 51.6 29.4 82.6% 0% 6,400 7,748
68.8% 100.0% 4,088,080 5,749,988
Average Seasonal 71%
Page 4
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Pt. Higgins Elementary School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Combined
Boiler Type Wood Fuel Oil
Burner Modulating High-Low
Percent Load 90% 10% 100%
Combustion efficiency 80.0% 84.0% 80.4%
Jacket losses 2.5%2. 0% 60.8
Standby loss 2.5%
Energy source Pellets Pellets Total
Gross output,MBH 1,120 1,084 2,204
Input,MBH 1,400 1,290 2,690
Design Heating Load,MBH 1,950
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby
Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses, MBH Losses,MBH Losses,MBH
1% 16 3.1 60.8 66.9 10.9%14% 19,440 178,371
10% 160 31. 4 60.8 63.3 50.7%11% 160,000 315,431
20% 320 62.7 60.8 59.3 63.6%14% 384,000 603,350
30% 480 94.1 60.8 55.3 69.5%23% 960,000 1,380,303
40% 640 125.4 60.8 51.3 72.9%21% 1,152,000 1,579,521
50% 800 156.8 60.8 47.3 75.1% 9%640,000 851,897
60% 960 188.2 60.8 43.3 76.7% 6%480,000 626,116
70%1,120 219.5 60.8 39.3 77.8% 2%168,000 215,939
80%1,280 250.9 60.8 35.3 78.7% 1%102,400 130,156
90%1,440 282.2 60.8 31.3 79.4% 0%15,840 19,957
100%1,600 313.6 60.8 27.3 79.9% 0% 6,400 8,007
66.8% 100.0% 4,088,080 5,909,047
Average Seasonal 69%
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Point Higgins Elementary
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
I
Heating Plant 1
Fuel oil boilers 1084 MBH 10 2 LS 20,000.00 31,453
Replace chimney 10 2 LS 7,500 11,795
Fuel oil connection 10 2 LS 1 300 472
Piping connections 10 2 LS
il $
2,000 3,145
Commissioning 10 1 LS 4,000.00 3,145
Contingencies
Estimating contingency 0 15% 7,501
Overhead&profit 0 30% 17,253
Design fees 0 10% 7,476
Project management 0 10% 8,224
Total Construction Costs 90,500
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 57,900
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 23,369 gallons 3.26 1,747,591
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 5,149 kWh 0.10 8,087
Total Energy Costs $1,755,700
Present Worth 1,904,100
Point Higgins Elementary Calculations Page 6 Appendix F
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Point Higgins Elementary
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Mechanical
Fuel oil boilers 1084 MBH 10 1 LS 20,000 15,726
Replace chimney 10 1 LS 7,500 5,897
Fuel oil connection 10 1 LS 300 236
Piping connections 10 1 LS 2,000 1,573
Electric boiler 330 kW 0 1 ea 28,000 28,000
Demo boiler and piping 0 1 ea 6,000 6,000
Primary piping and appurtenances with secondary loop 0 1 ea 20,000 20,000
Primary pumps 0 3 ea 2,500 7,500
Controls
Additional controls 0 12 pts 1,750 21,000
Electrical
New electrical service for electric boiler 0 1 LS 180,000 180,000
3-phase service for boiler pump 0 3 LS 5,000 15,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 45,890
Overhead&profit 0 30% 105,547
Design fees 0 10% 45,737
Project management 0 10% 50,311
Total Construction Costs 530,000
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs . $38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 40,400
Point Higgins Elementary Calculations Page 7 Appendix F
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Point Higgins Elementary
Electric and Fuel Oil Boilers
Energy Costs Years Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 21,420 gallons 3.26 1,601,839
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 55,488 kWh I $0.10 87,151
Total Energy Costs $1,689,000
Present Worth 2,259,400
Point Higgins Elementary Calculations Page 8 Appendix F
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Point Higgins Elementary
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2. 5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Mechanical
Pellet boiler w/precipitator and augers 1120 MBH 0 1 ea 1 $140,000 140,000
Pellet silo 20 tons 0 1 LS , $40,000 40,000
Fuel oil boilers 1084 MBH 10 1 LS 20,000 15,726
Replace chimney 10 1 LS 7,500 5,897
Fuel oil connection 10 1 LS 300 236
Piping connections 10 1 LS I $2,000 1,573
Demo boiler and boiler piping 0 1 ea 6,000 6,000
Primary piping and appurtenances with secondary loop 0 1 ea 20,000 20,000
Primary pumps 0 2 ea 2,500 5,000
Accumulator tank 0 1 ea 12,000 12,000
Controls
Additional controls 0 12 pts I $1,750 21,000
Electrical
3-phase service for wood boiler 0 1 LS 5,000 5,000
3-phase service for precipitator and boiler pump 0 2 LS 5,000 10,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% $43,264.83
Overhead&profit 0 30% 99,509
Design fees 0 10% 43,121
Project management 0 10% 47,433
Total Construction Costs 521,800
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 10 min/day 1 - 20 61 hrs 38.50 35,870
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
Annual,each 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 80,400
Point Higgins Elementary Calculations Page 9 Appendix F
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Point Higgins Elementary
Wood Pellet and Fuel Oil Boilers
Energy Costs Years Oty I Unit Base Cost Present Value
Fuel Oil 1 - 20 2,405 gallons 3.26 179,825
Wood Pellets-Initial Fill 0 20 tons 326.66 6,533
Wood Pellets 1 - 20 193 tons 326.66 1,082, 953
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 9,999 kWh 0.10 15,704
Total Energy Costs $1,285,000
Present Worth 1,887,200
Point Higgins Elementary Calculations Page 10 Appendix F
Appendix G
Valley Park Elementary School Calculations
Ketchikan Gateway Borough 58 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Valley Park Elementary School
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost,gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
Option I Construction Annual 1 Energy I Total of Base
Base Case: Fuel Oil 6.6%,Electricity 2. 5%,Pellets 3.7%
Status Quo: Fuel Oil Boilers 0 57,900 $1,299,900 $1,357,800
Electric and Fuel Oil Boilers 413,300 42,700 $1,251,300 $1,707,300 126%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 985,900 $1,537,100 113%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 ! $1,316,900 $1,514,400 112%
High Fuel Oil Inflation Case(@ 8%
Status Quo: Fuel Oil Boilers 0 57,900 $1,501,400 $1,559,300
Electric and Fuel Oil Boilers 413,300 42,700 $1,427,200 $1,883,200 121%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 1 $1,007,200 $1,558,400 100%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,519,300 $1,716,800 110%
Low Fuel Oil Inflation Case p 4. 8%
Status Quo: Fuel Oil Boilers 0 57,900 $1,086,500 $1,144,400
Electric and Fuel Oil Boilers 413,300 42,700 $1,064,900 $1,520,900 133%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 963,300 $1,514,500 132%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,102,500 $1,300,000 114%
High Electricity Inflation Case(off 4%
Status Quo: Fuel Oil Boilers 0 57,900 $1,302,000 $1,359,900
Electric and Fuel Oil Boilers 413,300 42,700 $1,272,900 $1,728,900 127%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 1 $989,000 $1,540,200 113%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,320,900 $1,518,400 112%
Low Electricity Inflation Case(&1%
Status Quo: Fuel Oil Boilers 0 57,900 $1,298,200 $1,356,100
Electric and Fuel Oil Boilers 413,300 42,700 $1,233,300 $1,689,300 125%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 983,300 $1,534,500 113%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,313,600 $1,511,100 111%
High Wood Pellet Inflation Case p 5%
Status Quo: Fuel Oil Boilers 0 57,900 $1,299,900 $1,357,800
Electric and Fuel Oil Boilers 413,300 42,700 $1,251,300 $1,707,300 126%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 $1,109,700 $1,660,900 122%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,316,900 $1,514,400 112%
Low Wood Pellet Inflation Case p 2.75%
Status Quo: Fuel Oil Boilers 0 57,900 $1,299,900 $1,357,800
Electric and Fuel Oil Boilers 413,300 42,700 j $1,251,300 $1,707,300 126%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 907,400 $1,458,600 107%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,316,900 $1,514,400 112%
Lower Wood Pellet Cost p$290 per ton
Status Quo: Fuel Oil Boilers 0 57,900 $1,299,900 $1,357,800
Electric and Fuel Oil Boilers 413,300 42,700 $1,251,300 $1,707,300 126%
Wood Pellet and Fuel Oil Boilers 477,600 73,600 967,700 $1,518,900 112%
Air Source Heat Pump and Fuel Oil Boilers 115,300 82,200 $1,316,900 $1,514,400 112%
Valley Park Elementary Calculations Page 1 Appendix G
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Valley Park Elementary School
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 17,571
2010 19.450
Average 18,500
Heating Load,kBTU Fuel,gals kBTU/gal Efficiency Load,kBTU
18,500 138.5 68% 1,742,330
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size.MBH Factor Design MBH
B-1 400 0% 0
B-2 1,084 100%1,084
B-3 1084 100%1084
2,568 2,168
Existing Pumps Pump Service GPM AT MBH
CP-1/2 Pool 96 20 960
CP-3/4 School 113 20 1130
209 2,090
Design Heating Load Design MBH soft BTUH/soft
2,090 40,686 51
Energy Analysis
Fuel Oil Boilers Load,kBTU %Load Net, kBTU Efficiency kBTU/gal Fuel,gals
1,742,330 100% 1,742,330 73% 138.5 17,233
Boiler Pumping Season GPM Head bhp a kWh
Winter 108 12 0.60 70% 5,581
Summer 40 12 0.22 70% 2060
7,641
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 2,090 70% 1,463 0 429
B-1 400 400
B-2 1084 1084
Total 2,947 1,484
Design 141% 71%
Valley Park Elementary Calculations Page 2 Appendix G
Alaska Energy Engineering LLC
Juneau
CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226,
Alaska 99801 jim @alaskaenergy.us
February 20,2013
Valley Park Elementary School
Annual Energy Requirements
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 1,050 6% 720
Oct 1520 8% 744
2,570 14% 1,464
Fuel Oil Boilers Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
1,742,330 86% 1,500,287 72% 138.5 15,050
Electric Boilers Load,kBTU %Load Net.kBTU Efficiency kWh
1,742,330 14%242,043 95%74,628
Boiler Pumping Boiler GPM Head bhp a kWh
Fuel Oil 108 12 0.60 70% 4,649
Electric 146 12 0.81 70% 1.259
5,907
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
Wood 2,090 70% 1,463 0
B-1 400 400
B-2 1084 1084
Total 2,947 1,484
Design 141% 71%
Energy Analysis
Wood Boiler Load.kBTU %Load Net,kBTU Efficiency kBTU/ton tons Container Loss tons
1,742,330 90% 1,568,097 69%15,560 147 0% 147
Fuel Oil Boiler Load,kBTU %Load Net,kBTU Efficiency kBTU/gal Fuel,gals
1,742,330 10%174,233 69% 138.5 1,823
Electric Loads Boiler GPM Head bhp a kWh
Fuel Oil 108 12 0.60 70% 558
Wood 146 12 0.81 70% 6,779
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2753
11,631
Valley Park Elementary Calculations Page 3 Appendix G
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 jim @alaskaenergy.us
Valley Park Elementary School
Annual Energy Requirements
AIR SOURCE HEAT PUMP
Sizing Analysis
AHU-2: School CFM.max CFM,min Min OSA MAT Tmin Steps 0 CFM HP.MBH
17,850 8,000 6,300 55 35 4 1,970 200
Energy Analysis
Heat Pump Performance Fuel Oil Heat Pump
Tosa Hours CFM SA MAT MBH kBtu Gallons COP kWh
82 13 17,850 82 0 0 0 4.5 0
77 36 17,850 77 0 0 0 4.3 0
72 85 17,850 72 0 0 0 4.1 0
67 178 17,850 67 0 0 0 3.8 0
62 334 17,850 62 0 0 0 3.5 0
57 414 15,880 57 0 0 0 3.3 0
52 343 13,910 55 0 0 0 3.1 0
47 358 11,940 55 0 0 0 2. 8 0
42 445 9,970 52 29 12,904 137 2.6 1,455
37 295 8,000 44 95 28,005 297 2.4 3,420
30 142 8,000 39 143 20,244 215 2.3 2,580
27 96 8,000 36 163 15,645 166 2.2 2,084
22 68 8,000 32 197 13,395 142 2.1 1,870
17 54 8,000 28 200 10,800 115 2.0 1,583
12 33 8,000 24 200 6,600 70 1.9 1,018
7 16 8,000 20 200 3,200 34 1.8 521
2 6 8,000 16 200 1200 13 1.7 207
2,916 111,993 -1,189 14,737
Existing,gal 18,500 2.2
Valley Park Elementary Calculations Page 4 Appendix G
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Valley Park Elementary School
Status Quo
Boiler Status Lead Lag Standby Combined
Boiler Type Fuel Oil Fuel Oil Fuel Oil
Burner On-off High-Low High-Low
Combustion efficiency
Percent Load 50% 40% 10%100.0%
Combustion efficiency 84.0% 84.0% 84.0% 84.0%
Jacket losses 2.5%2. 0%2.0% 63.5
Standby loss 2.5%
Energy source Fuel Oil Fuel Oil Fuel Oil Total
Gross output,MBH 400 1,084 1,084 2,568
Input,MBH 476 1,290 1,290 3,057
Design Heating Load,MBH 2,090
All Boilers Hot Year Round Yes
Load Combustion Jacket Standby
Load
MBH Losses,MBH Losses,MBH Losses,MBH Efficiency Annual Hours Output,kBtu Input,kBtu
1% 21 3. 3 63.5 75.9 12.8%14%25,394 198,864
10% 209 33.4 63.5 71.2 55.4%11% 209,000 377,167
20% 418 66.9 63.5 66.0 68.0%14% 501,600 737,259
30% 627 100.3 63.5 60.8 73.6%23% 1,254,000 1,703,195
40% 836 133.8 63.5 55.5 76.8%21% 1,504,800 1,959,862
50%1,045 167.2 63.5 50.3 78.8% 9%836,000 1,060,822
60%1,254 200.6 63.5 45.1 80.2% 6%627,000 781, 621
70%1,463 234.1 63.5 39.9 81.3% 2%219,450 270,069
80%1,672 267.5 63.5 34.6 82.1% 1%133,760 163,014
90%1,881 301.0 63.5 29.4 82.7% 0%20,691 25,024
100%2,090 334.4 63.5 24.2 83.2% 0% 8,360 10,048
70.4% 100.0% 5,340,055 7,286,945
Average Seasonal 73%
Page 5
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Standby Combined
Boiler Type Wood Fuel Oil Fuel Oil
Burner Modulating On-off High-Low
Percent Load 90% 10% 0% 100%
Combustion efficiency 80.0% 84.0% 84.0% 80.4%
Jacket losses 2.5%2.0%2.0% 81.1
Standby loss 2. 5%
Energy source Pellets Fuel Oil Fuel Oil Total
Gross output,MBH 1,463 400 1,084 2,947
Input,MBH 1,829 476 1,290 3,595
Design Heating Load,MBH 2,090
All Boilers Hot Year Round Yes
Load
Load Combustion Jacket Standby Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses,MBH Losses,MBH Losses. MBH
1% 21 4.1 81.1 89.4 10.7%14%25,394 237,425
10% 209 41.0 81.1 84.7 50.3%11% 209,000 415,677
20% 418 81.9 81.1 79.4 63.3%14% 501,600 792,499
30% 627 122.9 81.1 74.2 69.3%23% 1,254,000 1,810,309
40% 836 163.9 81.1 69.0 72.7%21% 1,504,800 2,069,808
50%1,045 204.8 81.1 63.8 74.9% 9%836,000 1,115,706
60%1,254 245.8 81.1 58.5 76.5% 6%627,000 819,686
70%1,463 286.7 81.1 53.3 77.6% 2%219,450 282,617
80%1,672 327.7 81.1 48.1 78.5% 1%133,760 170,308
90%1,881 368.7 81.1 42.9 79.2% 0%20,691 26,109
100%2,090 409.6 81.1 37.6 79.8% 0% 8,360 10,473
66.6% 100.0% 5,340,055 7,750,616
Average Seasonal 69%
Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Status Quo: Fuel Oil. Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Heating Plant
Retain existing heating plant 0 1 LS 0.00 0
Contingencies
Estimating contingency 0 15% 0
Overhead&profit 0 30% 0
Design fees 0 10% 0
Project management 0 10% 0
Total Construction Costs 0
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 57,900
Energy Costs Years Qty 1 Unit ; Base Cost Present Value
Fuel Oil 1 - 20 17,233 gallons 3.26 1,287,941
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 7,641 kWh 0.10 12,001
Total Energy Costs $1,299,900
Present Worth 1,357,800
Valley Park Elementary Calculations Page 7 Appendix G
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler and appurtenances 400 MBH 0 1 ea 3,000 3,000
Electric boiler 430 kW 0 1 ea 32,000 32,000
Primary piping,pump,and appurtenances 0 1 ea 20,000 20,000
Controls
Additional controls 0 6 pts 1,750 10,500
Electrical
New service for electric boiler 0 1 LS 156,000 156,000
3-phase service for boiler pump 0 1 LS 5,000 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% 34,275
Overhead&profit 0 30% 78,833
Design fees 0 10% 34,161
Project management 0 I 10% 37,577
Total Construction Costs 413,300
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 12 hrs 38.50 7,076
Total Annual Costs 42,700
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 15,050 gallons 3.26 1,124,799
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 80,536 kWh 0.10 126,491
Total Energy Costs $1,251,300
Present Worth 1,707,300
Valley Park Elementary Calculations Page 8 Appendix G
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Mechanical
Remove boiler,fuel piping,flue,etc. 0 1 LS 3,500 3,500
Pellet boiler w/precipitator and augers 1,463 MBH 0 1 ea 155,000 155,000
Pellet silo 20 tons 0 1 LS 40,000 40,000
Connect to existing chimney 0 1 ea 5,000 5,000
Connect to primary piping,new pump,appurt 0 1 ea 20,000 20,000
Accumulator tank 0 1 ea 12,000 12,000
Controls
Additional controls 0 6 pts 1,750 10,500
Electrical
3-phase service for wood boiler 0 1 LS 5,000 5,000
3-phase service for precipitator,1 HP 0 1 LS 5,000 5,000
Relocate 3-phase service for boiler pump 0 1 LS 2,000 2,000
Commissioning 0 1 LS 6,000 6,000
Contingencies
Estimating contingency 0 15% $39,600.00
Overhead&profit 0 30% 91,080
Design fees 0 10% 39,468
Project management 0 10% 43,415
Total Construction Costs 477,600
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
Annual,each 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 12 hrs 38.50 7,076
Total Annual Costs 73,600
Valley Park Elementary Calculations Page 9 Appendix G
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Wood Pellet and Fuel Oil Boilers
Energy Costs Years Qty I Unit j Base Cost Present Value
Fuel Oil 1 - 20 1,823 gallons 3.26 136,260
Wood Pellets-Initial Fill 0 20 tons 326.66 6,533
Wood Pellets 1 - 20 147 tons 326.66 824,840
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 11,631 kWh 0.10 18,269
Total Energy Costs 985,900
Present Worth 1,537,100
Valley Park Elementary Calculations Page 10 Appendix G
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Air Source Heat Pump and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Mechanical
Install OSA fan coil unit with DVX coil,3,000 cfm 0 2 LS 6,000 12,000
Ductowrk modifications for fan coil unit 0 2 LS 3,750 7,500
Outdoor unit 0 1 ea 10,000 10,000
Refrigerant piping 0 1 LS 2,500 2,500
Controls
Additional controls 0 9 pts 1,750 15,750
Electrical
3-phase service for outdoor unit 0 1 LS 5,000 5,000
Single phase service for fan coils 0 2 LS 2,500 5,000
Commissioning 0 1 LS 1 $6,000 6,000
Contingencies
Estimating contingency 0 1 15% 9,563
Overhead&profit 0 30% 21,994
Design fees 0 10% 9,531
Project management 0 10% 10,484
Total Construction Costs 115,300
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 7 min/day 1 - 20 43 hrs 38.50 25,109
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs 38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Air-source heat pump maintenance
Parts Allowance 1 - 20 1 LS 300.00 4,595
Monthly: 30 minutes per month 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Every Three Months: 30 minutes each 0.67 hours/3 months 1 - 20 3 hrs 38.50 1,572
Annual 8 hours/year 1 - 20 8 hrs 38.50 4,717
Five Year Maintenance 4 hours/year 5 - 5 4 hrs 38.50 133
Five Year Maintenance 4 hours/year 10 - 10 4 hrs 38.50 118
Five Year Maintenance 4 hours/year 15 - 15 4 hrs 38.50 105
Pump maintenance,4 hrs each 1 - 20 12 hrs 38.50 7,076
Total Annual Costs 82,200
Valley Park Elementary Calculations Page 11 Appendix G
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Valley Park Elementary School
Air Source Heat Pump and Fuel Oil Boilers
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 17,311 gallons 3.26 1,293, 770
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 14,737 kWh 0.10 23,146
Total Energy Costs $1,316,900
Present Worth 1,514,400
Valley Park Elementary Calculations Page 12 Appendix G
Appendix H
Operations and Maintenance Facility Calculations
Ketchikan Gateway Borough 59 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Operations and Maintenance Building
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost, gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 326.66 Pellet Cost,ton
3.7% Wood Pellet Inflation 300.73 TFP Pellet Cost,ton
Results
IConstruction Annual Energy Total of Base
Base Case: Fuel Oil 6.6%.Electricity 2. 5%,Pellets 3. 7%
Status Quo: Fuel Oil Boilers 38,600 37,900 295,900 372,400
Electric and Fuel Oil Boilers 186,000 31,600 264,000 481,600 129%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 233,000 482,700 130%
High Fuel Oil Inflation Case(E 8%
Status Quo: Fuel Oil Boilers 38,600 37,900 , $341,800 418,300
Electric and Fuel Oil Boilers 186,000 31,600 297,000 514,600 123%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 237,900 487,600 117%
Low Fuel Oil Inflation Case p 4. 8%
Status Quo: Fuel Oil Boilers 38,600 37,900
1 $
247,300 323,800
Electric and Fuel Oil Boilers 186,000 31,600 229,100 446,700 138%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 227,900 477,600 147%
High Electricity Inflation Case(off 4% 1
Status Quo: Fuel Oil Boilers 38,600 37,900 296,300 372,800
Electric and Fuel Oil Boilers 186,000 31,600 273,100 490,700 132%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 234,500 484,200 130%
Low Electricity Inflation Case(a7 1%
Status Quo: Fuel Oil Boilers 38,600 37,900 295,600 372,100
Electric and Fuel Oil Boilers 186,000 31,600 256,500 474,100 127%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 , $231,800 481,500 129%
High Wood Pellet Inflation Case c 5%
Status Quo: Fuel Oil Boilers 38,600 37,900 295,900 372,400
Electric and Fuel Oil Boilers 186,000 31,600 264,000 481,600 129%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 261,600 511,300 137%
Low Wood Pellet Inflation Case p 2.75%
Status Quo: Fuel Oil Boilers 38,600 37,900 295,900 372,400
Electric and Fuel Oil Boilers 186,000 31,600
I $
264,000 481,600 129%
Wood Pellet and Fuel Oil Boilers 194,600 55,000 214,800 464,400 125%
Lower Wood Pellet Cost E$290 per ton
Status Quo: Fuel Oil Boilers 38,600 37,900 295,900 372,400
Electric and Fuel Oil Boilers 186,000 31,600 264,000 481,600 129%
Wood Pellet and Fuel Oil Boilers 194,700 55,000 228,800 478,500 128%
Page 1
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Operations and Maintenance Building
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
2009 4,892
2010 3223
Average 4,100
Heating Load,kBTU Fuel,gals kBTU/pal Efficiency Load,kBTU
4,100 138.5 68%386, 138
STATUS QUO
Sizing Analysis
Existing Boilers Boiler Size,MBH
B-1 417
Existing Pumps Pump Service GPM AT MBH
CP-1 Heat 30 20 300
Design Heating Load Design MBH Q BTUH/sgff
300 11,140 27
Energy Analysis
Fuel Oil Boilers Load.kBTU %Load Net. kBTU Efficiency kBTU/pal Fuel,pals
386,138 100% 386,138 71% 138.5 3,927
Boiler Pumping GPM Head b n. kWh
30 12 0.17 70% 1,545
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 300 70% 210 210 62
B-1 300 100% 300
Total 510 210
Design 170% 70%
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 530 13% 720
Oct 587 14% 744
1,117 27% 1,464
Fuel Oil Boilers Load.kBTU %Load Net,kBTU Efficiency kBTU/pal Fuel,gals
386,138 73%280,939 72% 138.5 2,820
Electric Boilers Load.kBTU %Load Net.kBTU Efficiency kWh
386,138 27%105,199 95%32,436
Boiler Pumping Boiler GPM Head tin n kWh
Fuel Oil 30 12 0.17 70% 1,286
Page 2
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Operations and Maintenance Building
Annual Energy Requirements
Electric 21 12 0.12 70% 181
1,467
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH
Wood 300 63% 189 189
B-1 417
Total 606 189
Design 202% 63%
Energy Analysis
Wood Boiler Load.kBTU %Load Net.kBTU Efficiency kBTU/ton tons Container Loss tons
386,138 90%347,524 67%15,560 34 0% 34
Fuel Oil Boiler Load,kBTU %Load Net,kBTU Efficiency kBTU/gal Fuel.gals
386,138 10%38,614 67% 138.5 416
Electric Loads Boiler GPM Head bho a kWh
Fuel Oil 30 12 0.17 70% 154
Wood 21 12 0.12 70% 973
Silo Auger 0.75 70% 700
Feed Auger 0.12 70% 840
Induction Fan 0.5 89% 2753
5,421
Page 3
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy@gci.net
Operations Building
Status Quo
Boiler Status Lead Combined
Boiler Type Fuel Oil
Burner On-off
Combustion efficiency
Percent Load 100% 100.0%
Combustion efficiency 84.0% 84.0%
Jacket losses 3. 0% 12.3
Standby loss 3. 0%
Energy source Fuel Oil Total
Gross output,MBH 345 345
Input,MBH 411 411
Design Heating Load,MBH 300
All Boilers Hot Year Round No
Load
Load Combustion Jacket Standby
Efficiency Annual Hours Output,kBtu Input,kBtu
MBH Losses, MBH Losses, MBH Losses,MBH
1% 3 0.5 12.3 12.2 10.7%14%3,645 34,060
10% 30 4.8 12.3 11.4 51.2%11%30,000 58,543
20% 60 9.6 12.3 10.5 64.9%14%72,000 110,931
30% 90 14.4 12.3 9. 6 71.2%23% 180,000 252,686
40% 120 19.2 12.3 8.7 74.9%21% 216,000 288,437
50% 150 24.0 12.3 7. 8 77.3% 9%120,000 155,314
60% 180 28.8 12.3 6.9 78.9% 6%90,000 114,021
70% 210 33.6 12.3 6.0 80.2% 2%31,500 39,291
80% 240 38.4 12.3 5.1 81.1% 1%19,200 23,667
90% 270 43.2 12.3 4.2 81. 9% 0% 2,970 3,627
100% 300 48.0 12.3 3. 3 82.5% 0% 1,200 1,455
68.6% 100.0% 766,515 1,082,033
Average Seasonal 71%
Page 4
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Operations Building
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Combined
Boiler Type Wood Fuel Oil
Burner Modulating On-off
Percent Load 90% 10% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 3. 0%3. 0% 19.1
Standby loss 2.0%
Energy source Pellets Fuel Oil Total
Gross output,MBH 189 345 534
Input,MBH 225 411 636
Design Heating Load,MBH 300
All Boilers Hot Year Round Yes
Load Combustion Jacket StandbyLoad
MBH Losses,MBH Losses,MBH Losses,MBH Efficiency Annual Hours Output,kBtu Input,kBtu
1% 3 0.5 19.1 12.7 8. 5% 14%3,645 42,775
10% 30 4.8 19.1 12.1 45.5%11%30,000 65,986
20% 60 9. 6 19.1 11.5 59.9%14%72,000 120,223
30% 90 14.4 19.1 10.9 67.0%23% 180,000 268,771
40% 120 19.2 19.1 10.3 71.2%21% 216,000 303,454
50% 150 24.0 19.1 9.7 74.0% 9%120,000 162,229
60% 180 28.8 19.1 9.1 76.0% 6%90,000 118,493
70% 210 33.6 19.1 8.5 77.4% 2%31,500 40,678
80% 240 38.4 19.1 7.9 78.6% 1%19,200 24,431
90% 270 43.2 19.1 7.3 79.5% 0% 2,970 3,735
100% 300 48.0 19.1 6.7 80.3% 0% 1,200 1,495
65.2% 100.0% 766,515 1,152,270
Average Seasonal 67%
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Operations and Maintenance Building
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit , Base Cost Year 0 Cost
Heating Plant
Fuel oil boiler 300 MBH 11 1 LS 14,000.00 10,747
Replace chimney 11 1 LS 7,500 5,757
Fuel oil connection 11 1 LS 300 230
Piping connections 11 1 LS 2,000 1,535
Commissioning 11 1 LS 4,000.00 3,071
Contingencies
Estimating contingency 0 15% 3,201
Overhead&profit 0 30% 7,362
Design tees 0 10% 3,190
Project management 0 10% 3,509
Total Construction Costs 38,600
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Pump maintenance,4 hrs each 1 - 20 4 hrs 38.50 2,359
Total Annual Costs 37,900
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 3,927 gallons • $3.26 293,476
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 1,545 kWh 0.10 2,426
Total Energy Costs 295,900
Present Worth 372,400
Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Operations and Maintenance Building
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit Base Cost Year 0 Cost
Mechanical
Demo boiler and piping 11 1 ea 4,000 3,071
Fuel oil boiler 300 MBH 11 1 LS I $14,000 10,747
Replace chimney 11 1 LS 7,500 5,757
Fuel oil connection 11 1 LS 300 230
Piping connections 11 1 LS 2,000 1,535
Electric boiler 60 kW 0 1 ea 12,000 12,000
Primary piping,pumpos,appurtnences 0 1 ea 15,000 15,000
Secondary pumps and piping 0 1 ea 10,000 10,000
Controls
Boiler control panel 0 12 pts 1,000 12,000
Electrical
3-phase service for electric boiler and secondary pumps 0 3 LS 7,500 22,500
1-phase service for boiler pumps 0 2 LS 2,500 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 I 15% 15,426
Overhead&profit 0 30% 35,480
Design fees 0 10% 15,375
Project management 0 10% 16,912
Total Construction Costs 186,000
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 31,600
Page 7
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Operations and Maintenance Building
Electric and Fuel Oil Boilers
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 2,820 gallons 3.26 210,760
Wood Pellets 1 - 20 0 tons 326.66 0
Electricity 1 - 20 33,903 kWh 0.10 53,249
Total Energy Costs 264,000
Present Worth 481,600
Page 8
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Operations and Maintenance Building
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6. 6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty I Unit Base Cost Year 0 Cost
Mechanical
Fuel oil boiler 300 MBH 11 1 LS 14,000 10,747
Replace chimney 11 1 LS 7,500 5,757
Fuel oil connection 11 1 LS 300 230
Piping connections 11 1 LS 2,000 1,535
Pellet boiler w/precipitator and augers 190 MBH 0 1 ea 24,000 24,000
Pellet silo 8 tons 0 1 LS 12,000 12,000
Pellets 0 8 tons 327 2,613
Demo boiler and piping 0 1 ea 4,000 4,000
Primary piping,pumpos,appurtnences 0 1 ea 15,000 15,000
Secondary pumps and piping 0 1 ea 10,000 10,000
Controls
Boiler control panel 0 12 pts 1,500 18,000
Electrical
3-phase service for wood boiler and secondary pumps 0 3 LS 6,000 18,000
1-phase service for boiler pumps 0 2 LS 2,500 5,000
Commissioning 0 1 LS 5,000 5,000
Contingencies
Estimating contingency 0 15% $11,641.99
Overhead&profit 0 30% 26,777
Design fees 0 10% 11,603
Project management 0 10% 12,763
Total Construction Costs 194,700
Annual Costs Years Qty Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0.5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Pellet Boiler Maintenance-Small Capacity
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 2 hours/month 1 - 20 24 hrs 38.50 14,152
2000 hour maintenance 12 hours/year 1 - 20 12 hrs 38.50 7,076
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 55,000
Page 9
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907. 789.1226 February 20,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Operations and Maintenance Building
Wood Pellet and Fuel Oil Boilers
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 416 gallons 3.26 31,100
Wood Pellets-Initial Fill 0 8 tons 326.66 2,613
Wood Pellets 1 - 20 34 tons 326.66 190,779
Wood Pellets 1 - 5 0 tons 300.73 0
Electricity 1 - 20 5,421 kWh 0.10 8,515
Total Energy Costs 233,000
Present Worth 482,700
Page 10
Appendix I
Ketchikan International Airport Calculations
Ketchikan Gateway Borough 60 Heating System Retrofit Analysis
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan Airport Terminal
Summary
Basis
20 Study Period(years)2.75% General Inflation 3.26 Fuel Oil Cost, gal
5.25% Nominal Discount Rate 6.6% Fuel Inflation 0.10 Electricity Cost,kWh
2.4% Real Discount Rate 2.5% Electricity Inflation 352.58 Pellet Cost,ton
3.7% Wood Pellet Inflation 326.66 TFP Pellet Cost,ton
Results
Option I Construction Annual Energy Total of Base
Base Case: Fuel Oil 6. 6%,Electricity 2.5%,Pellets 3. 7%
Status Quo: Fuel Oil Boilers 348,200 57,900 j $1,593,800 $1,999,900
Electric and Fuel Oil Boilers 530,000 31,600 $1,495,500 $2,057,100 103%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,286,600 $2,023,500 101%
High Fuel Oil Inflation Case @ 8%
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,865,800 $2,271,900
Electric and Fuel Oil Boilers 530,000 31,600 $1,718,600 $2,280,200 100%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,315,000 $2,051,900 90%
Low Fuel Oil Inflation Case(@ 4.8%
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,308,800 $1,714,900
Electric and Fuel Oil Boilers 530,000 31,600 $1,261,800 $1,823,400 106%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,256,900 $1,993,800 116%
High Electricity Inflation Case(@ 4%
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,595,300 $2,001,400
Electric and Fuel Oil Boilers 530,000 31,600 $1,529,000 $2,090,600 104%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,289,100 $2,026,000 101%
Low Electricity Inflation Case(a7 1%
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,592,500 $1,998,600
Electric and Fuel Oil Boilers 530,000 31,600 $1,467,700 $2,029,300 102%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,284,600 $2,021,500 101%
High Wood Pellet Inflation Case(i 5%
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,593,800 $1,999,900
Electric and Fuel Oil Boilers 530,000 31,600 $1,495,500 $2,057,100 103%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,451,600 $2,188,500 109%
Low Wood Pellet Inflation Case(Q?2.75%
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,593,800 $1,999,900
Electric and Fuel Oil Boilers 530,000 31,600 $1,495,500 $2,057,100 103%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,182,000 $1,918,900 96%
Lower Wood Pellet Cost @$290 per ton
Status Quo: Fuel Oil Boilers 348,200 57,900 $1,593,800 $1,999,900
Electric and Fuel Oil Boilers 530,000 31,600 $1,495,500 $2,057,100 103%
Wood Pellet and Fuel Oil Boilers 658,500 78,400 $1,264,100 $2,001,000 100%
Ketchikan Airport Calculations Page 1 Appendix I
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/ Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan Airport Terminal
Annual Energy Requirements
ANNUAL HEATING LOAD
Fuel Oil Use Year Gallons
5-yr Ave 23,800
Heating Load,kBTU Fuel,gals kBTU/pal Efficiency Load,kBTU
23,800 138.5 65% 2,142,595
STATUS QUO
Sizing Analysis
Estimated Heating Load Area,soft BTUH/soft Design MBH
32,600 25 815
Existing Boilers Boiler Size.MBH Factor Design MBH
B-1 2,800 344% 815
B-2 2800 344%
5,600 815
New Heating Load Building Area,soft BTUH/soft Design MBH
Existing 32,600 25 815
Addition 15,000 20 300
1,115
New Boilers Boiler Design MBH Factor Size.MBH
B-1 1,115 70% 781
B-2 1115 70% 781
2,230 1,561
New Pumps Pump Service GPM AT MBH
CP-1/CP-2 Heat 112 20 1,115
Energy Analysis
Fuel Oil Boilers Load.kBTU %Load Net.kBTU Efficiency kBTU/oal Fuel,gals
2,142,595 100% 2,142,595 73% 138.5 21,192
Boiler Pumping Season GPM Head bhp n kWh
Winter 112 12 0.61 70% 5,741
ELECTRIC AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size.MBH Firm MBH kW
Electric 1,115 70% 781 781 229
Fuel Oil 1,115 70% 781
Total 1,561 781
Design 140% 70%
Ketchikan Airport Calculations Page 2 Appendix I
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 jim @alaskaenergy.us
Ketchikan Airport Terminal
Annual Energy Requirements
Energy Analysis
Electric Boiler Load Month Fuel Oil gal %Total Hours
Sep 1,904 8% 720
Oct 2380 10% 744
4,284 18% 1,464
Fuel Oil Boilers Load.kBTU %Load Net,kBTU Efficiency kBTU/gal Fuel,gals
2,142,595 82% 1,756,928 73% 138.5 17,380
Electric Boilers Load.kBTU %Load Net,kBTU Efficiency kWh
2,142,595 18%385,667 95%118,912
Boiler Pumping Boiler GPM Head b n kWh
Fuel Oil 112 12 0.61 70% 4,781
Electric 112 12 0.61 70% 959
5,741
WOOD BOILER AND FUEL OIL BOILERS
Sizing Analysis
Boiler Sizing Boiler Design MBH Factor Size,MBH Firm MBH
Wood 1,115 70% 781 781
Fuel Oil 1,115 70% 781 0
Total 1,561 781
Design 140% 70%
Energy Analysis
Wood Boiler Load.kBTU %Load Net,kBTU Efficiency kBTU/ton tons Container Loss tons
2,142,595 90% 1,928,336 70% • 15,560 178 2% 182
Fuel Oil Boiler Load,kBTU %Load Net.kBTU Efficiency kBTU/gal Fuel,gals
2,142,595 10%214,260 70% 138.5 2,210
Electric Loads Boiler GPM Head bhp n hours kWh
Fuel Oil 112 12 0.61 70% 876 574
Wood 112 12 0.61 70% 7,008 4,593
Silo Auger 0.75 70% 450 360
Feed Auger 0.12 70% 7,008 896
Induction Fan 0.5 89% 7,008 2337
9,360
Ketchikan Airport Calculations Page 3 Appendix I
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Ketchikan Airport
Status Quo
Boiler Status Lead Lag Combined
Boiler Type Fuel Oil Fuel Oil
Burner High-Low High-Low
Percent Load 100% 0% 100%
Combustion efficiency 84.0% 84.0% 84.0%
Jacket losses 2.0%2.0% 37.2
Standby loss 2.0%
Energy source Fuel Oil Fuel Oil Total
Gross output,MBH 781 781 1,562
Input,MBH 930 930 1,860
Design Heating Load, MBH 1,115
All Boilers Hot Year Round Yes
Load Combustion Jacket StandbyLoad
MBH Losses,MBH Losses,MBH Losses,MBH
Efficiency Annual Hours Output,kBtu Input, kBtu
1% 11 1.8 37.2 37.0 12.8%14%13,547 105,817
10% 112 17.8 37.2 35.0 55.3%11% 111,500 201,491
20% 223 35.7 37.2 32.7 67.9%14% 267,600 394,321
30% 335 53.5 37.2 30.5 73.4%23% 669,000 911,422
40% 446 71.4 37.2 28.3 76.5%21% 802,800 1,049,078
50% 558 89.2 37.2 26.0 78.5% 9%446,000 567,945
60% 669 107.0 37.2 23.8 79.9% 6%334,500 418,520
70% 781 124.9 37.2 21.6 81.0%2%117,075 144,623
80% 892 142.7 37.2 19.4 81.7% 1%71,360 87,301
90%1,004 160.6 37.2 17.1 82.4% 0%11,039 13,402
100%1,115 178.4 37.2 14.9 82.9% 0% 4,460 5,382
70.2% 100.0% 2,848,881 3,899,301
Average Seasonal 73%
Ketch ikan Airport Calculations Page 4 Appendix I
Alaska Energy Engineering LLC Boiler Efficiency
25200 Amalga Harbor Road Tel/Fax: 907.789. 1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy@gci.net
Ketchikan Airport
Wood Boiler and Fuel Oil Boilers
Boiler Status Lead Lag Combined
Boiler Type Wood Fuel Oil
Burner Modulating High-Low
Percent Load 90% 10% 100%
Combustion efficiency 80.0% 84.0% 80.4%
Jacket losses 3.5%2.0% 52.8
Standby loss 1.5%
Energy source Pellets Fuel Oil Total
Gross output,MBH 781 781 1,562
Input,MBH 976 930 1,906
Design Heating Load, MBH 1,115
All Boilers Hot Year Round Yes
Load Combustion Jacket StandbyLoad
MBH Losses,MBH Losses.MBH Losses,MBH
Efficiency Annual Hours Output,kBtu Input, kBtu
1% 11 2.2 52.8 28.4 11.8%14%13,547 114,845
10% 112 21.9 52.8 26.9 52.3%11% 111,500 213,036
20% 223 43.7 52.8 25.2 64.7%14% 267,600 413,661
30% 335 65.6 52.8 23.6 70.2%23% 669,000 952,797
40% 446 87.4 52.8 21.9 73.3%21% 802,800 1,094,544
50% 558 109.3 52.8 20.2 75.4% 9%446,000 591,809
60% 669 131.1 52.8 18.6 76.8%6%334,500 435,722
70% 781 153.0 52.8 16.9 77.8% 2%117,075 150,469
80% 892 174.8 52.8 15.2 78.6% 1%71,360 90,784
90% 1,004 196.7 52.8 13.5 79.2%0%11,039 13,931
100%1,115 218.5 52.8 11.9 79.7%0% 4,460 5,593
67.3% 100.0% 2,848,881 4,077,191
Average Seasonal 70%
Ketchikan Airport Calculations Page 5 Appendix I
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan Airport Terminal
Status Quo: Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Demolition
Remove combustion air louver and construct disposal slide 0 1 LS 7,500.00 7,500
Remove boilers,piping,appurtenances 0 2 LS 6,000.00 12,000
Heating Plant
Fuel Oil System
Day tank and piping 0 1 LS 8,000.00 8,000
Fuel oil piping to boilers 0 2 LS 3,000.00 6,000
Primary Loop
Fuel oil boilers 780 MBH 0 2 LS 15,000.00 30,000
Boiler stacks 0 2 ea 3,000.00 6,000
Boiler control panel 0 1 ea 4,000.00 4,000
Primary piping and appurtenances for each boiler 3"dia 0 2 LS 5,000.00 10,000
Primary supply and return header,2 boilers 4"dia 0 1 LS 5,000.00 5,000
Primary pump,pipe mounted 3/4 HP 0 2 LS 2,500.00 5,000
Secondary loop
Secondary pumps 3 HP 0 2 ea 4,000.00 8,000
Secondary piping and appurtenances(boiler room) 0 1 lot 20,000.00 20,000
Commissioning 0 1 LS 5,000 5,000
Domestic Hot Water System
Piping to indirect DHW heaters 0 2 ea 1,500.00 3,000
Controls
Boiler and pump controls 0 24 pts 1,500.00 36,000
Startup 0 1 LS 4,000 4,000
Electrical
1-phase equipment connections 0 2 LS 1,500.00 3,000
3-phase equipment connections 0 4 LS 5,000.00 20,000
Contingencies
Estimating contingency 0 15% 28,875
Overhead&profit 0 30% 66,413
Design fees 0 10% 28,779
Project management 0 10% 31,657
Total Construction Costs 348,200
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 5 min/day 1 - 20 30 hrs 38.50 17,935
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 2 LS 150.00 4,595
Monthly,each 1.5 hours/month 1 - 20 36 hrs I $38.50 21,227
Annual,each 8 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 4 hours/year 1 - 20 8 hrs 1 $38.50 4,717
Total Annual Costs 57,900
Ketchikan Airport Calculations Page 6 Appendix I
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan Airport Terminal
Status Quo: Fuel Oil Boilers
Energy Costs Years Oty I Unit Base Cost Present Value
Fuel Oil 1 - 20 21,192 gallons 3.26 1,584,772
Wood Pellets 1 - 20 0 tons 352.58 0
Electricity 1 - 20 5,741 kWh 0.10 9,017
Total Energy Costs $1,593,800
Present Worth 1,999,900
Ketchikan Airport Calculations Page 7 Appendix I
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketch ikan Airport Terminal
Electric and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit Base Cost Year 0 Cost
Demolition
Remove combustion air louver and cinstruct disposal slide 0 1 LS 7,500.00 7,500
Remove boilers,piping,appurtenances 0 2 LS 6,000.00 12,000
Heating Plant
Fuel Oil System
Day tank and piping 0 1 LS 8,000.00 8,000
Fuel oil piping to boilers 0 2 LS 3,000.00 6,000
Primary Loop
Fuel oil boilers 780 MBH 0 1 LS 15,000.00 15,000
Boiler stacks 0 1 ea 3,000.00 3,000
Electric boiler 230 kW 0 1 ea 24,000 24,000
Boiler control panel 0 1 ea 4,000.00 4,000
Primary piping and appurtenances for each boiler 3"dia 0 2 LS 5,000.00 10,000
Primary supply and return header,2 boilers 4"dia 0 1 LS 5,000.00 5,000
Primary pump,pipe mounted 3/4 HP 0 3 LS 2,500.00 7,500
Secondary loop
Secondary pumps 3 HP 0 2 ea 4,000.00 8,000
Secondary piping and appurtenances(boiler room) 0 1 lot 20,000.00 20,000
Commissioning 0 1 LS 5,000 5,000
Domestic Hot Water System 0
Piping to indirect DHW heaters 0 2 ea 1,500.00 3,000
Controls
Boiler and pump controls 0 24 pts 1,500.00 36,000
Startup 0 1 LS 4,000 4,000
Electrical
1-phase equipment connections 0 1 LS 1,500.00 1,500
3-phase equipment connections 0 5 LS 5,000.00 25,000
Upgrade electric service to electric boiler 0 1 LS 88,500 88,500
Contingencies
Estimating contingency 0 15% 43,950
Overhead&profit 0 30% 101,085
Design fees 0 10% 43,804
Project management 0 10% 48,184
Total Construction Costs 530,000
Ketchikan Airport Calculations Page 8 Appendix I
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan Airport Terminal
Electric and Fuel Oil Boilers
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 3 min/day 1 - 20 18 hrs 38.50 10,761
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 0. 5 LS 150.00 1,149
Monthly,each 1.5 hours/month 1 - 20 9 hrs 38.50 5,307
Annual,each 8 hours/year 1 - 20 4 hrs 38.50 2,359
Electric Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 75.00 1,149
Monthly,each 0.5 hours/month 1 - 20 6 hrs 38.50 3,538
Annual,each 4 hours/year 1 - 20 4 hrs 38.50 2,359
10-year Maintenance 10 - 10 8 hrs 38.50 236
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 31,600
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 17,380 gallons 3.26 1,299,718
Wood Pellets 1 - 20 0 tons 352.58 0
Electricity 1 - 20 124,653 kWh 0.10 195,782
r
Total Energy Costs $1,495,500
I Present Worth 2,057,100
Ketchikan Airport Calculations Page 9 Appendix I
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau, Alaska 99801 alaskaenergy @gci.net
Ketchikan Airport Terminal
Wood Pellet and Fuel Oil Boilers
Basis
20 Study Period(years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.43% Real Discount Rate 2.5% Electricity Inflation
3.7% Wood Pellet Inflation
Construction Costs Year Qty Unit I Base Cost Year 0 Cost
Demolition
Remove combustion air louver and cinstruct disposal slide 0 1 LS 7,500.00 7,500
Remove boilers,piping,appurtenances 0 2 LS 6,000.00 12,000
Heating Plant
Pellet boiler w/precipitator and augers 780 MBH 0 1 ea 120,000 120,000
Pellet silo 20 tons 0 1 LS 40,000 40,000
Auger from silo to boiler 0 1 LS 15,000 15,000
Fuel Oil System
Day tank and piping 0 1 LS 8,000.00 8,000
Fuel oil piping to boilers 0 1 LS 3,000.00 3,000
Primary Loop
Fuel oil boilers 780 MBH 0 1 LS 15,000.00 15,000
Boiler stacks 0 1 ea 4,000.00 4,000
Boiler control panel 0 1 ea 4,000.00 4,000
Primary piping and appurtenances for each boiler 3"dia 0 2 LS 4,000.00 8,000
Primary supply and return header,2 boilers 4"dia 0 1 LS 5,000.00 5,000
Primary pump,pipe mounted 3/4 HP 0 3 LS 2,500.00 7,500
Secondary loop 0
Secondary pumps 3 HP 0 2 ea 4,000.00 8,000
Secondary piping and appurtenances(boiler room) 0 1 lot 20,000.00 20,000
Commissioning 0 1 LS 6,000 6,000
Domestic Hot Water System
Piping to indirect DHW heaters 0 2 ea 1,500.00 3,000
Controls
Boiler and pump controls 0 24 pts 1,500.00 36,000
Startup 0 1 LS 4,000 4,000
Electrical
Electrical service to wood boiler 0 1 LS 15,000.00 15,000
1-phase equipment connections 0 2 LS 1,500.00 3,000
3-phase equipment connections 0 4 LS 5,000.00 20,000
Contingencies
Estimating contingency 0 15% 54,600
Overhead&profit 0 30% 125,580
Design fees 0 10% 54,418
Project management 0 10% 59,860
Total Construction Costs 658,500
Ketchikan Airport Calculations Page 10 Appendix I
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 February 21,2013
Juneau,Alaska 99801 alaskaenergy @gci.net
Ketchikan Airport Terminal
Wood Pellet and Fuel Oil Boilers
Annual Costs Years Qty I Unit Base Cost Present Value
Daily Heating Plant Observation 7 min/day 1 - 20 43 hrs 38.50 25,109
Fuel Oil Boiler Maintenance
Parts Allowance,each 1 - 20 1 LS 150.00 2,297
Monthly,each 1.5 hours/month 1 - 20 18 hrs 38.50 10,614
Annual,each 8 hours/year 1 - 20 8 hrs 38.50 4,717
Pellet Boiler Maintenance-Large Capacity
Parts Allowance,each 1 - 20 1 LS 250.00 3,829
Monthly,each 2.5 hours/month 1 - 20 30 hrs 38.50 17,689
2000 hour maintenance 16 hours/year 1 - 20 16 hrs 38.50 9,434
Pump maintenance,4 hrs each 1 - 20 8 hrs 38.50 4,717
Total Annual Costs 78,400
Energy Costs Years Qty I Unit Base Cost Present Value
Fuel Oil 1 - 20 2,210 gallons 3.26 165, 269
Wood Pellets- Initial Fill 0 20 tons 352.58 7,052
Wood Pellets 1 - 20 182 tons 352.58 1,099,615
Wood Pellets 1 - 5.0 tons 326.66 0
Electricity 1 - 20 9,360 kWh 0.10 14,701
Total Energy Costs $1,286,600
Present Worth 2,023,500
Ketchikan Airport Calculations Page 11 Appendix I
Appendix J
Tongass Forest Enterprises' Proposal
Ketchikan Gateway Borough 61 Heating System Retrofit Analysis
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 40 of 44 7/8/15
EXHIBIT B-5:
Price Proposal from Tongass Forest Enterprises – dated April 23, 2012
355 Carlanna Lake Road, Suite 100 • Ketchikan, AK 99901
Phone (907) 225-4541 • Fax (907) 220-0645 • info@akforestenterprises.com
April 23, 2012
Mr. Dan Bockhorst
Ketchikan Gateway Borough
1900 First Avenue, Suite 201
Ketchikan, AK 99901
Re: Wood Pellet Supply Contracts
Dear Mr. Bockhorst,
The purpose of this letter is to let potential customers know that there is a
tremendous opportunity for Tongass Forest Enterprises to secure a long term
supply of fiber here on Revillagigedo Island for making pellets. We are in talks with
Alcan Forest Products to purchase the remaining pulp grade wood from the Leask
Lakes sale which is winding down. We are also looking at purchasing much of the
pulp grade wood from the Boundary Sale which is located near the Brown Mountain
Road. The Boundary Sale will likely be the closest timber sale to Ketchikan for
many years to come and offers very inexpensive trucking to Ketchikan. There is
opportunity for future customers to take advantage of this sale by committing to
long term pellet contracts with TFE.
We offer the following pricing of premium grade wood pellets for long term
commitments if agreements are signed by August 2012.
Tons / Year 1 year 2 year 3 year 5 year
0 -200 305 300 295 290
200-500 300 295 290 280
¾ 500 290 285 280 275
Please call if you have any questions with this pricing. (907) 617-1441.
Sincerely
Trevor Sande
cc: Ed Schofield, Mike Williams, Robert Boyle
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 42 of 44 7/8/15
EXHIBIT C: CURRENT CONTRACTUAL FUEL PRICES
Per the attached Agreement for Delivered Heating Fuel and Fuel on a Card Reader System with
Anderes Oil, Inc. at a cost of $0.39/gallon over OPIS for delivered fuel, dated August 28, 2015.
KETCHIKAN SCHOOL DISTRICT
ELECTRICITY AND HEATING OIL USAGE
JULY 2014 TO JUNE 2015
MONTH KCS TSAS
SUBTOTAL
VP SCHOENBAR MAINTENANCE KAYHI TOTAL
JUL 818.60$ 818.59$ 1,637.19$ 2,033.25$ 723.52$ 9,500.43$ 13,894.39$
AUG 992.46 992.46 1,984.92 2,647.05 708.97 8,781.15 14,122.09
SEP 1,189.39 1,189.38 2,378.77 4,065.13 727.15 13,567.77 20,738.82
OCT 1,192.34 1,192.33 2,384.67 4,313.90 773.03 14,212.51 21,684.11
NOV 1,323.72 1,323.71 2,647.43 4,965.47 829.75 15,219.39 23,662.04
DEC 1,073.20 1,073.20 2,146.40 3,760.91 700.73 19,784.79 26,392.83
JAN 1,121.45 1,121.44 2,242.89 3,607.30 659.03 16,034.37 22,543.59
FEB 1,332.02 1,332.02 2,664.04 4,845.64 919.60 16,527.45 24,956.73
MAR 1,204.20 1,204.19 2,408.39 3,776.22 754.55 15,456.87 22,396.03
APR 1,177.16 1,177.15 2,354.31 3,689.37 730.54 14,730.17 21,504.39
MAY 1,145.19 1,145.19 2,290.38 4,066.39 785.03 15,153.27 22,295.07
JUN 1,212.12 1,212.12 2,424.24 3,655.61 836.62 16,676.25 23,592.72
TOTAL 13,781.85$ 13,781.78$ 27,563.63$ 45,426.24$ 9,148.52$ 175,644.42$ 257,782.81$
MONTH KCS TSAS
SUBTOTAL
VP SCHOENBAR MAINTENANCE KAYHI TOTAL
JUL - 210.70 2,500.00 2,710.70
AUG 430.27 554.33 984.60 2,900.00 3,884.60
SEP 166.06 213.94 380.00 1,858.20 19.90 3,500.00 5,758.10
OCT 556.56 717.04 1,273.60 1,319.50 610.80 5,100.00 8,303.90
NOV 579.77 746.93 1,326.70 2,474.00 520.90 12,231.20 16,552.80
DEC 870.94 1,122.06 1,993.00 2,340.20 818.00 12,850.40 18,001.60
JAN 777.47 1,001.63 1,779.10 3,541.20 1,228.90 13,296.10 19,845.30
FEB 643.74 829.36 1,473.10 1,760.70 765.10 10,929.80 14,928.70
MAR 537.86 692.94 1,230.80 2,795.40 665.00 9,600.00 14,291.20
APR 630.55 812.35 1,442.90 2,368.90 588.10 11,877.40 16,277.30
MAY 166.50 214.50 381.00 743.00 362.00 6,186.90 7,672.90
JUN 274.61 353.79 628.40 871.30 5,621.20 7,120.90
TOTAL 5,634.33 7,258.87 12,893.20 20,283.10 5,578.70 96,593.00 135,348.00
MONTH KCS TSAS
SUBTOTAL
VP SCHOENBAR MAINTENANCE KAYHI TOTAL
JUL -$ 699.68$ 8,329.19$ 9,028.87$
AUG 1,462.77 1,884.53 3,347.30 9,806.88 13,154.18
SEP 604.22 778.43 1,382.65 6,730.52 70.30 12,522.45 20,705.92
OCT 1,684.07 2,169.63 3,853.70 4,093.94 1,883.86 15,825.63 25,657.13
NOV 1,711.28 2,204.69 3,915.97 7,376.31 1,528.42 36,081.58 48,902.28
DEC 2,241.36 2,887.62 5,128.98 6,197.87 2,174.66 32,962.73 46,464.24
JAN 1,563.24 2,013.96 3,577.20 7,302.83 2,563.01 27,270.59 40,713.63
FEB 1,419.45 1,828.72 3,248.17 3,838.00 1,758.97 24,532.65 33,377.79
MAR 1,230.52 1,585.32 2,815.84 6,432.76 1,512.21 22,156.21 32,917.02
APR 1,401.82 1,806.00 3,207.82 5,280.67 1,320.59 26,471.57 36,280.65
MAY 430.23 554.27 984.50 1,919.91 916.22 15,956.57 19,777.20
JUN 720.99 928.88 1,649.87 2,170.49 - 14,435.44 18,255.80
TOTAL 14,469.95$ 18,642.04$ 33,112.00$ 52,042.98$ 13,728.24$ 246,351.49$ 345,234.71$
ELECTRICITY
HEATING OIL/ GALLONS
HEATING OIL COST
Gateway Aquatic Center
gallons Cost kWh cost total
Jun-15 2347.6 $6,037.76 $6,037.76
May-15 3200.94 $8,280.03 85,147 $9,031.13 $17,311.16
Apr-15 4717.5 $10,653.69 77,978 $8,475.50 $19,129.19
Mar-15 5438.5 $12,404.72 84,901 $9,632.71 $22,037.43
Feb-15 5011.9 $11,219.01 44,310 $9,893.92 $21,112.93
Jan-15 4246.7 $8,320.79 163,126 $16,607.19 $24,927.98
Dec-14 244,288 $24,005.87 $24,005.87
Nov-14 307,846 $29,814.20 $29,814.20
Oct-14 220,050 $21,610.74 $21,610.74
Sep-14 208,690 $20,629.05 $20,629.05
Aug-14 216,694 $21,358.29 $21,358.29
Jul-14 193,842 $19,387.43 $19,387.43
Jun-14 254,746 $24,692.59 $24,692.59
24963.14 $56,916.00 2,101,618 $215,138.62 $272,054.62
Gateway Recreation Center
gallons Cost kWh cost total
Jun-15 496 $1,282.86 $1,282.86
May-15 1119.5 $2,870.05 37,740 $3,630.86 $6,500.91
Apr-15 1205.9 $3,238.11 35,342 $3,421.40 $6,659.51
Mar-15 1750 $3,987.42 39,424 $3,756.89 $7,744.31
Feb-15 1570.2 $3,311.49 48,068 $4,543.54 $7,855.03
Jan-15 1633.4 $3,338.48 42,788 $4,069.93 $7,408.41
Dec-14 1701.3 $4,457.21 40,548 $3,869.00 $8,326.21
Nov-14 1480.4 $4,443.08 48,109 $4,550.04 $8,993.12
Oct-14 1111.2 $3,433.76 41,306 $3,931.35 $7,365.11
Sep-14 1053.3 $3,740.89 40,744 $3,911.60 $7,652.49
Aug-14 1270.7 $4,312.56 44,744 $4,270.40 $8,582.96
Jul-14 1313.3 $4,476.80 35,862 $3,468.04 $7,944.84
Jun-14 47,142 $4,479.86 $4,479.86
15705.2 $42,892.71 501,817 $47,902.91 $90,795.62
Exist Quantity Unit Proposed QUnit Displacement unit Unit Price Total Cost Oil Wood Total Notes Facility Btu/hr
SMS, Valley Park, Rec Center, Aquatic Center 24,870,000 btuh
Fuel Usage 75,000 gallon gallon 75,000.00 gallon Calculated
Electrical Usage 4,542,000 kwh kwh 4,542,000.00 kwh Calculated
Pellets 2,203 Tons (2,203.00)Tons Calculated
O&M Regular (Annual Basis)
Total O&M 500 4,500 (4,000.00)#REF!
KGBSD Maintenance Facility 300,000 btuh
Fuel Usage 3,927 gallon 416 gallon 3,511.00 gallon Calculated
Electrical Usage 1,545 kwh 5,421 kwh (3,876.00)kwh Calculated
Pellets 34 Tons (34.00)Tons Calculated
O&M Regular (Annual Basis)
Daily Observation 30 hours $38.50 $1,155.00 30 hours $38.50 $1,155.00 0.00 hours $38.50 $0.00
Parts 150 LS $150.00 $150.00 300 LS $300.00 $300.00 (150.00)LS -$150.00 ($150.00)$150 $150 $300
Monthly Inspection 18 hours $38.50 $693.00 33 hours $38.50 $1,270.50 (15.00)hours $38.50 ($577.50)9 24 $33
Annual Maintenance 8 hours $38.50 $308.00 16 hours $38.50 $616.00 (8.00)hours $38.50 ($308.00)4 12 $16
Pump Maintenance 4 hours $38.50 $154.00 12 hours $38.50 $462.00 (8.00)hours $38.50 ($308.00)
Total O&M $2,460.00 $3,803.50 ($1,343.50)
25,170,000
Existing Proposed Difference
Fuel Usage 78,927 416 Fuel Usage 78,511
Electrical Usage 4,543,545 5,421 Electrical Usage 4,538,124
Pellets 0 2,237 Tons -2,237
Non-Annual O&M $2,960 $8,303.50 -$5,344
Values taken from R&M calculations given in
the Cost Benefit Analysis for the Bear Valley
Central Heat Plant.
Values Taken from AEE Alternative Energy
Study. See pages 6 & 9-10 of Operations &
Maintenance Facility Life Cycle Cost Analysis
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 43 of 44 7/8/15
EXHIBIT D: RESOLUTION FROM GOVERNING BODY
Resolution 2610 - A Resolution of the Assembly of the Ketchikan Gateway Borough,
Alaska, Authorizing Application for and Acceptance of a Grant from the Alaska Energy
Authority (AEA) for Installation of the Biomass Heating System at Ketchikan High School
and Pre-Feasibility Studies for Various Other Borough Facilities under Round IX of the
Renewable Energy Fund Grant Program.
a 1,
A. WHEREAS, the Renewable Energy Grant Fund was created in 2008 by the Alaska
State Legislature to provide funding for renewable energy projects that can
provide economic benefit and local energy sources to Alaska communities; and
B. WHEREAS, the Ketchikan Gateway Borough is committed to developing a stable
local energy conduit and reduce the use of fossil fuel within the Ketchikan
Gateway Borough through the installation of biomass-fired space heating
systems; and,
C. WHEREAS, there is a present need for forest product industry development
within the Ketchikan Gateway Borough and the development of a biomass-fired
heating system for the Ketchikan High School and other Borough-owned
facilities would support this development by driving local demand for biomass
products; and
D. WHEREAS, in 2012, CTA Architects Engineers and Lars Construction
Management Service conducted the Pre-Feasibility Assessment for Integration
of Wood-Fired Heating Systems funded by the Alaska Energy Authority and U.S.
Forest Service for the School District, showing support for a wood biomass
heating system at the Ketchikan High School; and
E. WHEREAS, the Ketchikan High School is presently under contract for the design
and engineer of a biomass heating system intended to supplement the present
oil fired heating boilers as the lead heating system; and
F. WHEREAS, the Assembly has directed staff in the 2014 policy session to study
renewable energy heating opportunities for the Gateway Aquatic Center and
other borough facilities; and
G. WHEREAS, the Ketchikan Gateway Borough owns a number of facilities on the
west side of Schoenbar Road, including Schoenbar Middle School, the Ketchikan
Resolution No. 2610 Page 2
Gateway Borough School District Maintenance Facility, the Gateway
Recreation/ Gateway Aquatic Center, and Valley Park School; and
H. WHEREAS, locating a central heating plant to serve the Borough-owned
schools and recreation facilities on the Schoenbar Road property may provide
the most economical opportunity to install a central biomass fueled heating
system; and
I. WHEREAS, supplementing with biomass energy would help preserve
hydroelectric resources. As stated in the Southeast Integrated Resource Plan, all
of the region's hydroelectric supplies are threatened by runaway load growth
brought about by rapidly increasing oil prices, which are stimulating a dramatic
shift to electric heat. If this load growth continues, Ketchikan Public Utilities will
have little choice but to increase rates to match the price of heating oil, thus
tethering the electric rates to the future price of oil; and
J. WHEREAS, the Borough is presently pursuing economic development
opportunities such as the construction of a mill by Heatherdale on Gravina
Island for the processing of ore from the Niblack Mine. Such opportunities
require a reliable source of energy at a reasonable cost. The proposed wood
biomass heating systems upgrades appear to be particularly promising in terms
of conserving the future electrical needs of Ketchikan; and
K. WHEREAS, biomass energy production offers abundant opportunities to create
new, economically rewarding and environmentally sustainable year-round jobs
in Ketchikan sourcing energy from local sources, and will keep local dollars
circulating within Ketchikan's economy, and
L. WHEREAS, as the biomass energy industry matures in Ketchikan, there is every
reason to expect broader benefits to the community. Residents and facility
owners will have one more option for heating their homes/facilities, hopefully at
a lower cost than the currently available options; and
M. WHEREAS, while the Alaska Energy Authority favorably considers applications
that commit the applicant to providing matching funds for the completion of a
project, but such a pledge is not a requirement of the Renewable Energy Fund
program.
NOW, THEREFORE, IN CONSIDERATION • THE ABOVE FACTS, IT IS RESOLVET;
BY THE ASSEMBLY OF THE KETCHIKAN GATEWAY BOROUGH as follows:
Section 1. The Ketchikan Gateway Borough Assembly hereby authorizes the
Borough Manager to apply for, accept, be the contact point for, and commit the
Borough to the obligations of a grant from the Alaska Energy Authority (AEA) through
the Renewable Energy Grant Fund Round IX to construct a biomass boiler at Ketchikan
Resolution No. 2610 Page 3
High School and design the Borough Recreation and Schools Central Heating Plant,
with the total grant funds requested to be $1,508,018 as follows:
Project Request
Kayhi Biomass Heating Construction 1,288,018
Ketchikan Gateway Borough Recreation and Schools Central Heating Plant Design 220,000
Section 2. The Ketchikan Gateway Borough certifies that it is in compliance with
applicable federal, state, and local laws, including existing credit and tax obligations.
Section 3. The Assembly hereby declares its strong commitment to completing
these projects and to accomplish the objectives set out in the recitals.
Section 4. Effective Date. This resolution shall be effective upon adoption.
ADOPTED and EFFECTIVE this 8th day of September, 2015.
David Landif, Borough Mayor
ATTEST. •
Kacie Paxton, Borough Clerk
APPROVED AS TO FORM-
zu
lo
I eo:'gl71
Scott A. Brandt-Erichsen, Borough Attorney
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 44 of 44 7/8/15
EXHIBIT E: FINANCIAL ANALYSIS
Benefit/Cost scenario developed by the Ketchikan Gateway Borough based upon information
provided by R&M Engineering – Ketchikan, Inc. per the Bear Valley Central Heat Plant conceptual
design and economics data provided by Alaska Energy Authority.
Renewable Energy Fund Economic Benefit-Cost Analysis Model - Diesels ON
Project Description Comments: (Please assign comment ID and hyperlink next to applicable column/row)
Community ID
Nearest Fuel Community (non-railbelt only)1
Region 2
RE Technology 3
Project ID 4
Applicant Name 5
Project Title 6
7
Results 8
NPV Benefits $4,158,133.18 9
NPV Capital Costs $2,031,431
B/C Ratio 2.05
NPV Net Benefit $2,126,702
Performance Unit Value
Displaced Electricity kWh per year -
Displaced Electricity total lifetime kWh -
Displaced Petroleum Fuel gallons per year 209,900
Displaced Petroleum Fuel total lifetime gallons 3,988,100
Displaced Natural Gas mmBtu per year -
Displaced Natural Gas total lifetime mmBtu -
Avoided CO2 tonnes per year 2,130
Avoided CO2 total lifetime tonnes 40,479
Proposed System Unit Value
1 Capital Costs $2,200,000$
Project Start year 2017
2 Project Life years 20
Displaced Electric kWh per year
3, 4 Displaced Heat gallons displaced per year 209,900
Renewable Generation O&M $ per year 28,600
Electric Capacity kW -
Electric Capacity Factor %-
Heating Capacity Btu/hr 11,794,000
Heating Capacity Factor %95
Total Other Public Benefit 2015$ (Total over the life of the project)0
Base System - Non-Railbelt Only
Size of impacted engines (select from list)$/kWh
Diesel Generator O&M 361-600kW 0.107$
Applicant's Diesel Generator Efficiency kWh per gallon
Total current annual generation kWh/gallon
Diesel Generation Efficiency 12.50
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Annual Cost Savings Units 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 PV
Entered Value Project Capital Cost $ per year -$ 660,000$ 1,540,000$ -$ -$ $2,031,431
Electric Cost Savings $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Heating Cost Savings $ per year -$ -$ -$ 324,651$ 352,371$ 358,416$ 392,780$ 407,214$ 430,544$ 432,798$ 457,782$ 463,369$ 492,915$ 502,935$ 538,097$ 555,267$ 599,569$ 628,461$ 687,793$ 734,701$ 818,608$ 909,903$ (173,665)$ (30,455)$ $4,158,133
Entered Value Other Public Benefits $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Total Cost Savings $ per year -$ -$ -$ 324,651$ 352,371$ 358,416$ 392,780$ 407,214$ 430,544$ 432,798$ 457,782$ 463,369$ 492,915$ 502,935$ 538,097$ 555,267$ 599,569$ 628,461$ 687,793$ 734,701$ 818,608$ 909,903$ (173,665)$ (30,455)$ $4,158,133
Net Benefit $ per year -$ (660,000)$ (1,540,000)$ 324,651$ 352,371$ 358,416$ 392,780$ 407,214$ 430,544$ 432,798$ 457,782$ 463,369$ 492,915$ 502,935$ 538,097$ 555,267$ 599,569$ 628,461$ 687,793$ 734,701$ 818,608$ 909,903$ (173,665)$ (30,455)$ $2,126,702
Electric Units 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 PV
Renewable Generation kWh per year - - - - - - - - - - - - - - - - - - - - - - - -
Entered Value Scheduled replacement(s)$ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Renewable O&M - Annual marginal change $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Entered Value Renewable Fuel Use Quantity (Biomass)green tons - - - - - - - - - - - - - - - - - - - - - - - -
Entered Value Renewable Fuel Cost $ per unit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Total Renewable Fuel Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Proposed Generation Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Fossil Fuel Generation kWh per year - - - - - - - - - - - - - - - - - - - - - - - -
Fuel Price $ per gallon 4.50$ 4.57$ 4.64$ 4.74$ 4.85$ 4.97$ 5.08$ 5.20$ 5.32$ 5.45$ 5.58$ 5.71$ 5.85$ 5.99$ 6.13$ 6.28$ 6.42$ 6.58$ 6.73$ 6.88$ 7.05$ 7.22$ 7.39$ 7.39$
Fuel Use gallons per year - - - - - - - - - - - - - - - - - - - - - - - -
Base Generation Avoided Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0
Heating Units 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 PV
Renewable Heat gallons displaced per year - - 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 - -
6 Entered Value Renewable Heat Scheduled Repairs $ per year 11,000$ 11,000$ 11,000$ 11,000$ 11,000$ 11,000$ 11,000$ 11,000$ 11,000$ 11,000$ $93,832
5 Entered Value Renewable Heat O&M $ per year 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ 22,000$ $339,131
7 Entered Value Renewable Fuel Use Quantity (Biomass)green tons 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203 2,203
Entered Value Renewable Fuel Cost $ per unit 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 281.60$ 288.36$ 295.28$ 302.37$ 309.62$ 317.05$ 324.66$ 332.45$ 340.43$ 348.60$ 356.97$ 365.54$ 374.31$ 383.29$ 275.00$ 275.00$
Total Renewable Fuel Cost $ per year -$ -$ -$ 605,825$ 605,825$ 605,825$ 605,825$ 605,825$ 620,365$ 635,254$ 650,500$ 666,112$ 682,098$ 698,469$ 715,232$ 732,397$ 749,975$ 767,974$ 786,406$ 805,280$ 824,606$ 844,397$ 605,825$ 605,825$
Proposed Heat Cost $ per year -$ -$ -$ 638,825$ 627,825$ 638,825$ 627,825$ 638,825$ 642,365$ 668,254$ 672,500$ 699,112$ 704,098$ 731,469$ 737,232$ 765,397$ 771,975$ 800,974$ 808,406$ 838,280$ 846,606$ 866,397$ 638,825$ 627,825$ $12,325,797
Fuel Use gallons per year - - 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 209,900 - -
Entered Value Fuel Cost $ per gallon 3.59$ 4.26$ 4.48$ 4.50$ 4.57$ 4.64$ 4.74$ 4.85$ 4.97$ 5.08$ 5.20$ 5.32$ 5.45$ 5.58$ 5.71$ 5.85$ 5.99$ 6.13$ 6.28$ 6.42$ 6.58$ 6.73$ 6.88$ 7.05$
Entered Value Scheduled Repairs $ per year 3,000$ 3,900$ 5,070$ 6,591$ 8,568$ 11,139$ 14,480$ 18,825$ 24,472$ 31,813$ 41,358$ 53,765$ 69,894$ 90,863$ 118,121$ 153,558$ 199,625$ 259,512$ 337,366$ 438,576$ 570,149$ $1,464,548
Entered Value O&M $ per year 16,940$ 17,347$ 17,763$ 18,189$ 18,626$ 19,073$ 19,530$ 19,999$ 20,479$ 20,971$ 21,474$ 21,989$ 22,517$ 23,058$ 23,611$ 24,178$ 24,758$ 25,352$ 25,960$ 26,584$ 27,222$ $325,983
Annual Fuel Cost $ per year -$ -$ -$ 943,536$ 958,949$ 974,408$ 995,825$ 1,018,845$ 1,042,697$ 1,067,041$ 1,091,458$ 1,117,529$ 1,144,229$ 1,171,572$ 1,199,575$ 1,228,253$ 1,257,624$ 1,287,703$ 1,318,464$ 1,348,598$ 1,380,350$ 1,412,973$ -$ -$ $14,845,340
Base Heating Cost $ per year -$ -$ -$ 963,476$ 980,196$ 997,241$ 1,020,605$ 1,046,039$ 1,072,908$ 1,101,052$ 1,130,282$ 1,162,480$ 1,197,013$ 1,234,404$ 1,275,329$ 1,320,665$ 1,371,544$ 1,429,435$ 1,496,199$ 1,572,981$ 1,665,215$ 1,776,300$ 465,160$ 597,370$ $16,483,930
33939 34957.17 36005.8851 37086.06165 38198.6435 39344.60281 40524.94089 41740.68912 42992.90979 44282.69709 45611.178 46979.51334 48388.89874 49840.5657 51335.78267 52875.85615 54462.13184 56095.99579 57778.87567
Operations and maintenance cost of $22,000 per AEA analysis - 1% of construction costKetchikan Gateway Borough
95% of fuel usage to be displaced on a yearly basis. See Bear Valley Central Heat Plant by R&M Engineering - Ketchikan, Inc.
Description
Cost to construct based upon Bear Valley Central Heat Plant by R&M Engineering - Ketchikan, Inc.
20 year lifespan is standard per AEA
1142
Ketchikan Gateway Borough
Ketchikan
Rural
Value given is based on electricity used for heating the facilities. 95% of electrical usage to be displaced on a yearly basis. Primarily this is the swimming pool. See Bear Valley Central Heat Plant by R&M Engineering - Ketchikan, Inc.Biomass
$11,000 every other year per AEA AnalysisKetchikan Gateway Borough Schools/Recreation Central Heating Plant
Green ton usage per Bear Valley Central Heat Plant by R&M Engineering - Ketchikan, Inc.
Low Fuel/High Biomass: $2.2502/gallon fuel. High potential bid price of $325/ton and inflated per CPI rate given on "Carbon Pricing" tab. B/C = (2.78)
High Fuel/High Biomass: Fuel price per tab "Diesel Fuel Prices." High potential bid price of $325/ton and inflated per CPI rate given on "Carbon Pricing" tab. B/C = (0.8)
Ketchikan Gateway Borough does not anticipate extended period of low fuel prices. Prices have fluctuated from a high of $3.55/gallon to a low of $2.00/gallon, and currently are at $2.2502/gallon over the last year.
Low Fuel/Low Biomass: $2.2502/gallon fuel, $275/ton per TFE and inflated per CPI rate given on "Carbon Pricing" tab. B/C = (1.04)
Renewable fuel increases based upon CPI rate given on "Carbon Pricing" tab as provided. Base rate is provided by Tongass Forest Enterprises fixed for the first five years: no contract has been signed to date.
Four scenarios have been examined, with B/C cases calculated:
High Fuel/Low Biomass: Given herein. Fuel price per tab "Diesel Fuel Prices." $275/ton per TFE and inflated per CPI rate given on "Carbon Pricing" tab.
Proposed - Marginal cost only
Base - Fuel and capacity cost only
Proposed
Base