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09 Attachment J Cost Analysis
Hoonah City Schools Cost Analysis Spreadsheet, Fuel Oil vs. Wood ChipsAttachment JHoonah, Alaska Date(Revision Date): November 9, 2009 EXISTING CONDITIONS Existing Fuel Type:Fuel Oil Current Annual Fuel Cost:$5.35 3-year Annual Average Fuel Usage:50,000 Annual Heating Costs:$267,500ENERGY CONVERSION (to 1 mmbtu, or 1 dka)Current Annual Fuel Volume (btu):6,934,500,000 Assumed efficiency of existing heating system (%):75% Net Annual Fuel Usage (btu):5,200,875,000 WOOD FUEL COSTWood Chips$/ton: $60.00 Assumed efficiency of wood heating system (%): 75% PROJECTED FUEL USAGEAssumed btu content of wood fuel 3000 Tons of wood fuel to create net equivalent of 100% annual heating load1,40024 ton chip van loads58 Project Capital Cost $3,652,680 Project Financing InformationPercent Financed0%Est. Pwr Use 40,000 kWhAmount Financed $0 Elec Rate $0.50 /kWhAmount of Grants $3,652,680 Interest Rate 5.00%Term 10Annual Finance Cost (years) $0 22 (years)Inflation 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$5.35 50000 gal $267,500 $280,875 $294,919 $309,665 $325,148 $341,405 $358,476 $376,399 $395,219 $414,980 $435,729 $457,516 $480,392 $504,411 $529,632 $675,959 $1,101,066Displaced 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)$60.00 90% 1400 tons $75,600 $77,868 $80,204 $82,610 $85,088 $87,641 $90,270 $92,978 $95,768 $98,641 $101,600 $104,648 $107,788 $111,021 $114,352$132,565 $178,156Small load existing fuel (10% of total heat rqmnt)$5.35 10% 5000 gal $2,675 $2,809 $2,949 $3,097 $3,251 $3,414 $3,585 $3,764 $3,952 $4,150 $4,357 $4,575 $4,804 $5,044 $5,296 $6,760 $11,011Additional Operation and Maintenance Costs$2,000 $2,050 $2,101 $2,154 $2,208 $2,263 $2,319 $2,377 $2,437 $2,498 $2,560 $2,624 $2,690 $2,757 $2,826 $3,197 $4,093Additional Operation and Maintenance Costs First 2 years$1,200 $1,260Additional Electrical Cost $0.50 $20,000 $21,000 $22,050 $23,153 $24,310 $25,526 $26,802 $28,142 $29,549 $31,027 $32,578 $34,207 $35,917 $37,713 $39,599 $50,539 $82,323Annual Operating Cost Savings$166,025 $175,888$187,614 $198,652 $210,290 $222,562 $235,499 $249,138$263,513 $278,665 $294,634 $311,462 $329,193 $347,876 $367,559 $482,898$825,484Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow166,025 175,888 187,614 198,652 210,290 222,562 235,499 249,138 263,513 278,665 294,634 311,462 329,193 347,876 367,559 482,898 825,484Cumulative Cash Flow166,025 341,913 529,528 728,179 938,469 1,161,031 1,396,530 1,645,668 1,909,181 2,187,847 2,482,480 2,793,942 3,123,135 3,471,011 3,838,570 6,010,423 12,578,924Benefit Cost Ratio0.05 0.09 0.14 0.20 0.26 0.32 0.38 0.45 0.52 0.60 0.68 0.76 0.86 0.95 1.05 1.65 3.44Simple Payback: Total Project Cost/Year One Operating Cost Savings:Additional Power Use