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Home My WebLink AboutAEA Angoon Scenery Grant Cost worksheet final Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09 Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Hydropower output 130 GWh annual= 130,000,00 kWh Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other Several in Kake, Angoon and Hoonah..all producing diesel generation. Ketchikan-7 small hydro, Bailey diesel plant ii. Rated capacity of generators/boilers/other Ketchikan hydro 33.8 MW, diesel 21.5 MW Petersburg hydro 2 MW, diesel 10 MW Wrangell hydro 0, diesel SEAPA hydro 42.5 MW Kake diesel Angoon diesel 1500kw Hoonah diesel iii. Generator/boilers/other type Varies iv. Age of generators/boilers/other Varies v. Efficiency of generators/boilers/other Hydro approx 90%, Diesel 12 to16 kWh per gallon b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor Varies by community and efficiency of utility ii. Annual O&M cost for non-labor Varies by community and efficiency of utility c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] Angoon 1, 665,526 (2008 IPEC) Hoonah 4,822,937 (2008 IPEC) Kake 2,293,885 (2008 IPEC) Ketchikan 159,729,689 (2007 KPU) Wrangell 27,477,268 (2008 TBPA) Petersburg 35,082,460 (2008 TBPA) Total =231,071,765 kWh ii. Fuel usage Diesel [gal] Ketchikan 2008 over 1,160,994 through 9-08 (source Whitman AEA grant application) 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. Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09 Angoon 2008 147,994 (Source AEA PCE program) Hoonah 2008 367,239 (Source AEA PCE program) Kake 2008 199,431 (Source AEA PCE program) Petersburg 2008 75,000 gallons (Source PMPL Ruth AEA grant application Wrangell 2008 49,285 gallons (Source WMPL) Total= 1,999,943 gallons Other NA iii. Peak Load NA iv. Average Load NA v. Minimum Load NA vi. Efficiency NA vii. Future trends NA d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] Angoon 260,522 gallons annually Hoonah 754,405 gallons annually Kake 358,810 gallons annually Ketchikan 17,339,611 gallons annually Petersburg3,808,411 gallons annually Wrangell 2,982,822 gallons annually Total 25,504,580 DATA derived from CCHRC see attached spreadsheet ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 3. 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) [kWh or MMBtu/hr] Low Impact Hydropower Institute certified Hydropower b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 130,000,000 kWh ii. Heat [MMBtu] na c) Proposed Annual fuel Usage (fill in as applicable) i. Propane [gal or MMBtu] na ii. Coal [tons or MMBtu] na Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09 iii. Wood [cords, green tons, dry tons] na iv. Other na 4. Project Cost a) Total capital cost of new system $98,626,186-(LESS 3,686,300 DEVELOPMENT COST)= $94,939,886 b) Development cost 3,686,300 c) Annual O&M cost of new system 300,000 d) Annual fuel cost 0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 1,999,943 gallons displaced annually. Based on $4.25 gallon (will be higher in 2016 completion date) npv= $8,499,757, 3%, 50 years= $218,696,741.73 These numbers are included in the above figure of 218,696741.73 BASED ON 2008 DOLLARS THE NET PRESENT VALUE OF THESE FUEL for KAKE ANGOON AND HONAH SAVINGS: npv= $2,144,248, 3%, 50 YEARS=55,170,995.01 • BASED ON 2008 DOLLARS THE NET PRESENT VALUE OF Wrangell and Petersburg FUEL SAVINGS: npv= $472,024, 3%, 50 YEARS =$12,145,066.13 ii. Heat 86% diesel heating in Kake, Angoon and Hoonah (per CCHRC 2009 Alaska Housing Assessment) 81% diesel heating in Ketchikan, Petersburg, Wrangell (Extrapolated and Based on documentation from CBJ 2007 Greenhouse Gas inventory, March 2009) 50% conservative conversion from diesel to electricity over the 50 year life of the project Angoon 130,261 gallons annually Hoonah 377,202 gallons annually Kake 179,405 gallons annually Ketchikan 8,669,806 gallons annually Petersburg 1,491,411 gallons annually Wrangell 1,904,205 gallons annually TOTAL 12,752,290 GALLONS DISPLACED ANNUALLY Assume a $4.25 per gallon rate in 2016 (conservative) Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 4 10-7-09 Npv= $54,197,232, 3%, 50 years=$1,394,481,989.19 iii. Transportation Advent of electrical vehicle conversion will displace additional fuel . Estimate is 1,000,000 gallons at $4.25 by 2016 when project comes on line Npv=$4,250,000,3%, 50 years=$109,351,497.03 b) Price of displaced fuel 2016 construction completion date $4.25 gallon conservative c) Other economic benefits Savings in State of Alaska PCE subsidies to Angoon, Kake and Hoonah PCE Subsidy per year based on 2008 IPEC subsidy for Angoon, Kake and Hoonah: $1,177,678 NPV @ 3% 50 years= $30,301,376.50 d) Amount of Alaska public benefits Reduction in unemployment, increase in standard of living, increase in SE Economic development due to low cost energy, reduction in crime and social problems associated with high unemployment and lack of economic opportunity. $1808 per ratepayer of Angoon, Hoonah, and Kake for just the increase in the standard of living by paying less for energy per year. Total benefits would take a detailed study. 6. Power Purchase/Sales Price a) Price for power purchase/sale Target:7 cents per kWh in-state. Range of final price for power purchase sale will be dependent on grant financing. Debt financing will provide a rate in a range of 7 to 11 cents per kWh. 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio ($1,722,530,228+$30,301,376.50)/$98,626,186=17.77 Payback 98,626,186/ discounted free cash flow tbd) = payback period. Highly dependent on grant, financing and loan arrangements tbd.