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HomeMy WebLinkAbout09 Attachment J Cost Analysis SpreadsheetsKenny Lake School Cost Analysis Spreadsheet #1Attachment JKenny Lake, AlaskaFuel Oil vs Pellets Based on 2009 Fuel Oil PriceDate(Revision Date): March 3, 2009 EXISTING CONDITIONS Existing Fuel Type:Fuel Oil Current Annual Fuel Cost:$3.07 3-year Annual Average Fuel Usage:18,000 Annual Heating Costs:$55,260ENERGY CONVERSION (to 1 mmbtu, or 1 dka)Current Annual Fuel Volume (btu):2,496,420,000 Assumed efficiency of existing heating system (%):80% Net Annual Fuel Usage (btu):1,997,136,000 WOOD FUEL COSTWood Pellets$/ton: $280.00 Assumed efficiency of wood heating system (%): 90% PROJECTED FUEL USAGEAssumed btu content of wood fuel 8400 btu/lb Tons of pellet fuel to create net equivalent of 100% annual heating load132.09 24 ton pellet trailer loads6 Project Capital Cost $648,284 Project Financing InformationPercent Financed0%Est. Pwr Use 8000 kWhAmount Financed $0 Elec Rate $0.28 /kWhAmount of Grants $648,284 21efd Interest Rate 5.00%Term 10Annual Finance Cost (years) $0 43 (years) take out first year extra O&M costInflation FactorsO&M Inflation Rate 2.5%Current Fuel Inflation Rate 5.0%Wood Fuel Inflation Rate 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units12345678910111213141520 30Existing Heating System Operating CostsDisplaced heating costs$3.07 18000 gal $55,260 $58,023 $60,924 $63,970 $67,169 $70,527 $74,054 $77,756 $81,644 $85,726 $90,013 $94,513 $99,239 $104,201 $109,411 $139,639 $227,458Displaced Operation and Maintenance Costs$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site, btu/lb) (90% of total heat rqmnt)$280.00 90% 132.09 tons $36,984 $38,094 $39,236 $40,413 $41,626 $42,875 $44,161 $45,486 $46,850 $48,256 $49,703 $51,195 $52,730 $54,312 $55,942 $64,852 $87,155Small load existing fuel (10% of total heat rqmnt)$3.07 10% 1800 gal $553 $580 $609 $640 $672 $705 $741 $778 $816 $857 $900 $945 $992 $1,042 $1,094 $1,396 $2,275Additional Operation and Maintenance Costs (labor cost sunk)$500 $513 $525 $538 $552 $566 $580 $594 $609 $624 $640 $656 $672 $689 $706 $799 $1,023Additional Operation and Maintenance Costs First 2 years$1,000 $1,050Additional Electrical Cost $0.28 $2,240 $2,352 $2,470 $2,593 $2,723 $2,859 $3,002 $3,152 $3,310 $3,475 $3,649 $3,831 $4,023 $4,224 $4,435 $5,660 $9,220Annual Operating Cost Savings$13,983 $15,435 $18,084 $19,786 $21,597 $23,523 $25,571 $27,747 $30,059 $32,514 $35,120 $37,887 $40,821 $43,934 $47,234 $66,932 $127,785Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow13,983 15,435 18,084 19,786 21,597 23,523 25,571 27,747 30,059 32,514 35,120 37,887 40,821 43,934 47,234 66,932 127,785Cumulative Cash Flow13,983 29,418 47,502 67,288 88,884 112,407 137,978 165,725 195,784 228,298 263,418 301,304 342,126 386,059 433,293 726,288 1,702,343Benefit Cost Ratio0.02 0.05 0.07 0.10 0.14 0.17 0.21 0.26 0.30 0.35 0.41 0.46 0.53 0.60 0.67 1.12 2.63Simple Payback: Total Project Cost/Year One Operating Cost Savings:Additional Power Use Kenny Lake School Cost Analysis Spreadsheet #2Attachment JKenny Lake, AlaskaFuel Oil vs Pellets Based on 2008 Fuel Oil PriceDate(Revision Date): March 3, 2009 EXISTING CONDITIONS Existing Fuel Type:Fuel Oil Current Annual Fuel Cost:$4.50 3-year Annual Average Fuel Usage:18,000 Annual Heating Costs:$81,000ENERGY CONVERSION (to 1 mmbtu, or 1 dka)Current Annual Fuel Volume (btu):2,496,420,000 Assumed efficiency of existing heating system (%):80% Net Annual Fuel Usage (btu):1,997,136,000 WOOD FUEL COSTWood Pellets$/ton: $280.00 Assumed efficiency of wood heating system (%): 90% PROJECTED FUEL USAGEAssumed btu content of wood fuel 8400 btu/lb Tons of pellet fuel to create net equivalent of 100% annual heating load132.09 24 ton pellet trailer loads6 Project Capital Cost $648,284 Project Financing InformationPercent Financed0%Est. Pwr Use 8000 kWhAmount Financed $0 Elec Rate $0.28 /kWhAmount of Grants $648,284 21efd Interest Rate 5.00%Term 10Annual Finance Cost (years) $0 20 (years) take out first year extra O&M costInflation FactorsO&M Inflation Rate 2.5%Current Fuel Inflation Rate 5.0%Wood Fuel Inflation Rate 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units12345678910111213141520 30Existing Heating System Operating CostsDisplaced heating costs$4.50 18000 gal $81,000 $85,050 $89,303 $93,768 $98,456 $103,379 $108,548 $113,975 $119,674 $125,658 $131,940 $138,537 $145,464 $152,738 $160,374 $204,683 $333,407Displaced Operation and Maintenance Costs$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site, btu/lb) (90% of total heat rqmnt)$280.00 90% 132.09 tons $36,984 $38,094 $39,236 $40,413 $41,626 $42,875 $44,161 $45,486 $46,850 $48,256 $49,703 $51,195 $52,730 $54,312 $55,942 $64,852 $87,155Small load existing fuel (10% of total heat rqmnt)$4.50 10% 1800 gal $8,100 $8,505 $8,930 $9,377 $9,846 $10,338 $10,855 $11,398 $11,967 $12,566 $13,194 $13,854 $14,546 $15,274 $16,037 $20,468 $33,341Additional Operation and Maintenance Costs (labor cost sunk)$500 $513 $525 $538 $552 $566 $580 $594 $609 $624 $640 $656 $672 $689 $706 $799 $1,023Additional Operation and Maintenance Costs First 2 years$1,000 $1,050Additional Electrical Cost $0.28 $2,240 $2,352 $2,470 $2,593 $2,723 $2,859 $3,002 $3,152 $3,310 $3,475 $3,649 $3,831 $4,023 $4,224 $4,435 $5,660 $9,220Annual Operating Cost Savings$32,176 $34,537 $38,141 $40,846 $43,710 $46,742 $49,950 $53,346 $56,938$60,737 $64,754 $69,002 $73,492 $78,238$83,254 $112,903 $202,668Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow32,176 34,537 38,141 40,846 43,710 46,742 49,950 53,346 56,938 60,737 64,754 69,002 73,492 78,238 83,254 112,903 202,668Cumulative Cash Flow32,176 66,713 104,854 145,700 189,410 236,152 286,102 339,448 396,385 457,122 521,876 590,878 664,371 742,609 825,863 1,327,844 2,911,038Benefit Cost Ratio0.05 0.10 0.16 0.22 0.29 0.36 0.44 0.52 0.61 0.71 0.81 0.91 1.02 1.15 1.27 2.05 4.49Simple Payback: Total Project Cost/Year One Operating Cost Savings:Additional Power Use