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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. 192,000 T Annual, 100/yr rotation - state lands only
(DNR)
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 6 Diesel Gensets (list attached)
ii. Rated capacity of generators/boilers/other 6910 kW (total of 6 units)
iii. Generator/boilers/other type Diesel CAT
iv. Age of generators/boilers/other 2-24 years old
v. Efficiency of generators/boilers/other 13%-14% (AP&T records)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $416,896 (2.4￠/kWh)
ii. Annual O&M cost for non-labor $322,341 (1.8￠/kWh)
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] 17,403,748 kWh generated 2008
ii. Fuel usage
Diesel [gal] 1,268,323 gallons used in 2008
Other $4,116,465 spent on fuel in 2008
iii. Peak Load 2 MW
iv. Average Load 1.3 MW
v. Minimum Load .9 MW
vi. Efficiency 13%-14% (AP&T records)
vii. Future trends Growth projected
d) Annual heating fuel usage (fill in as applicable) (Unmeasured; needs study)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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
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]
1,944 kWh + 9.6 MMBtu/hr net usable heat
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 15,552,000 kWh (assuming 8,000 hours)
ii. Heat [MMBtu] 76,800 MMBtu/hr of net usable heat (assuming 8,000 hrs)
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons] 12,000 BDT (24,000 Green Tons)
iv. Other
4. Project Cost
a) Total capital cost of new system $15,300,000
b) Development cost $4,700,000
c) Annual O&M cost of new system $585,000 labor and non-labor
d) Annual fuel cost 24,000 Green Tons x $47/T=$1,128,000
(12,000 Dry Tons) Cost quote from DNR
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 95% of diesel = 1,205,000 gallons
ii. Heat To be determined
iii. Transportation N/A
b) Price of displaced fuel 1,205,000 gal x $3.29 = $3,964,450 (2008 costs)
c) Other economic benefits Local jobs, reduced wildfire risk, lower power costs
d) Amount of Alaska public benefits Lower Power Cost Equalization (PCE)
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.67
Payback 8.9 years
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09
There are 6 gensets in the Tok diesel power plant that supply electricity to all four communities,
as follows:
Unit #3 = CAT Model D3516, 1320 kW, Purchased / Installed 1999
Unit #4 = CAT/KATO Model 3516, 1135 kW, Purchased / Installed 1989
Unit #5 = CAT/KATO Model 3516, 1135 kW, Purchased / Installed 1995
Unit #7 = CAT Model C175-16, 1800 kW, Installed 2007 (is on loan from CAT as a test unit)
Unit #8 = CAT/KATO Model D3508, 440 kW, Purchased / Installed 1985
Unit #9 = CAT/KATO Model 3512C, 1050 kW, Purchased / Installation in progress 2008
The Project will reduce the cost of generation by AP&T, and the savings would be passed on to
AP&T’s customers in Tetlin, Tok, Tanacross and Dot Lake who presently pay $0.47 per kWh
(excluding PCE).
Glen D. Martin, Project Manager
Alaska Power & Telephone Company
Corporate Headquarters
P.O. Box 3222
Port Townsend, WA 98368
(360) 385-1733 x122
(360) 385-7538 fax