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Home My WebLink AboutMcGrath Heat Recovery Construction 3rd Quarter FInRpt 2011 REF Grant 219416MTNT McGrath Light & Power October 27, 2011 Devany Plentovich Alaska Energy Authority 813 West Northern Lights Blvd Anchorage, AK 99503 D E C 7c il 7 �D OCT 3 z011 AIDE. P.CIF4 52 McGrath, Alaska 99627 Phone: (907) 524-3391 Fax: (907) 524-3062 Email: DCar)ault@mtnt.net Re: McGrath Light & Power REF Grant, 3rd Quarter 2011 Performance Report Status Re: Identifying Number:; 95416 Dear Devany, Attached is the Quarterly Report you requested for the Heat Recovery System - Performance and Operations & Maintenance. Please note that there are two tabs with identical time periods and using the same kWh's Generated. The difference between the two tabs (Scenario #1 and Scenario #2) is explained in the "Text Box" at the bottom of each Report. I have inserted the formula as described in Scenario #2 into our billing software, and all future billing will be based on that Scenario. Therefore, reports after this will more properly reflect the savings to the Customer, which will match up with System Performance. Of course this will also increase our Revenue from this resource. I felt it important to explain these issues at this stage of the process. If you have questions concerning my explanation above or the values logged in the attached report, please don't hesitate to give me a call at 907-524-3009. Respectfully, i ocaan x eaapatd Power Plant Manager e-mail, dcapaul@mtnt.net Annual Heat Recovery Performance and O&M Report Location: McGrath Light & Power Date: October 26, 2011 Author: Dean Capaul Phone Number: 907-524-3009 113roject #: 2195416 Heating Loop Fluid: Water A. Performance Scenario #1 (Actual Amounts Billed to Customers) Heat Recovery Diesel LVh Gross Generated) Delivered TherLnal M. MBTU District Heating el Oil Displaced (gal) Average Diesel Total Savings Realized by AIL Customers Income from Thermal BTU's sold ($) Usm 140,000 BTU/gal Average Delta im9aature Using 100.000 Efficiency kWh al BTU I Jan 2,570,685 463 242 16 deg 3,309 141 $ 4 5B6 5 7,644 Feb 2,591,526 400 634 16 deg 2,862 136 $ 3,950 $ 6,611 Mar 21,555,811 320 937 15 deg 2,293 144 $ 3,164 $ 5,291 Apr 2,544,255 2,46.427 10 deg 1,760 143 $ 2,429 $ 4,066 May 2,541,918 168182 9 deg 1,201 138 $ 1,657 $ 2,774 June 2,,563,036 99 642 10 deg 647 151 $ 893 $ 1,495 July 2,574,339 125103 10 deg 894 141 $ 1,234 $ 2,065 Aug 2.559,406 123,964 11 deg S85 145 $ 1,221 5 2,044 Sept 2$65,534 245 969 12 deg 1,757 147 $ 2,425 $ 4,059 Oct Nov Dec To Date 23,066,510 2,185.120 15,608 $ 21,539 $ 36,054 B. Operations and Maintenance _ (Compiled from daily log of operational history) Diesel Downtime lhrs? 0&M Ra aair Costs Jan Feb Mar Apr May June July Aug 3 his Replace Faded H R Loop #1 Pump, $947 Oa foi new pump 2 men x 2 hr labor Sept Oct Nov Dec C. Narrative Scenario #1 presents a look at what the system / project performance Calculates as since the "base value" for BTU/gal of diesel of 140,000 BTU's / gal had been incorporated into the rate structure since the start of the project in April of 2010. The use of 140,000 BTU's / gal means that the Customer has been billed less than allowed by contract, and that the performance talc based on converting BTU's to gallons "used / saved" comes out less than "reality". Keep in mind that the formula used in Scenario #1 is as follows: Cost = Recovered Heat x 60% x Fuel Price Given: That 1 gallon of diesel #1 fuel is equivalent to 140,000 BTU's That customers boiler efficiency was not used in this calculation That the current price of fuel was based on 2010 inventory value at $4.13/gal x .6 = $2.48/gal Therefore: In this example for 463,241,470 BTU's of metered usage forJanuary 2011: BTU's / Gallon=140,000 BTUs =1 Gallon of Diesel (No otherfactors considered) Metered forJan = 463,241,470 / 100,000 = 3,308.87 Equivalent Gals January 2011 x $2.48 = $8,205.99 Gallons Saved = 3,308.87 Gallons for Cost Savings of 3,308.871 x ($4.13-$2.48=$1.65) = $5,459.64 Keep in mind also, that the Retail Cost for Diesel in McGrath in October 2011 was $6.19 / gal. during much of this period. Annual Heat Recovery Performance and O&M Report Location: McGrath Light & Power Date: October 26, 2011 Author: Dean Capaul Phone Number: 907-524-3009 Project #: 2195416 Heating Loop Fluid: Water ice Scenario #2 (Actual Performance w/Contract Values) Heat Recovery Fuel Oil Income from Diesel kWh Delivered District Heating Displaced (Rai) Average Diesel Total Savings Thermal BTU's Gr s Thermal Average Delta Using 10U.000 Efficiency Res! z� sold f$1 using Jan 2,570,685 463 242 16 deg 4,632 141 Feb 2,591,526 400 634 16 deg 4,006 13.6 Mar 2,555.811 320 957 15 deg 3,219 144 Apr -7,544,255 246.427 10 deg 2,464 143 May 2,541,918 168182 9 deg 1,682 13.8 June 2,553,036 90 642 10 deg 906 151 July 2,574,339 125 103 10 de 11251 141 Aug 2,559,406 123 964 11 deg 1,240 145 Sept 2,565,534 245 969 12 deg 2,460 147 Oct Nov Dec To Date 23,066,510 2,185.120 21,851 C. Narrative $ 7,190 $ 10,700 $ 6,209 $ 9,254 $ 4,976 r 7,415 $ 31819 $ 5,692 $ 2,607 $ 3,885 $ 1.404 $ 1,093 $ 1.939 $ 2,890 $ 11922 $ 2,864 $ 3;813 $ 5,683 $ 33.969 S 5n a7k Scenario #2 presents a look at what the system / project performance WOULD have been if the "base value" for BTU/gal of diesel had been incorporated into the rate structure from the beginning of the year. The actual month for this change to start is for the billing period of October 2011. This means that CY 2012 will all be calculated and billed at a similar rate unless there is a significant change in the price of fuel. The current billing rate is per contract. Keep in mind that the formula used in Scenario #2 is as follows: Cost= Recovered Heat 60%x Fuel Price Given: That 1 gallon of diesel #1 fuel is equivalent to 134,000 BTU's That customers boiler efficiency is 74.6% That the current price of fuel was based on current inventory value at $3.86/gal x .6 = $2.31/gal Therefore: In this example for 463,241,470 BTU's of metered usage for January 2011: BTU's / Gallon = (134,000) x (.746) = 99,964 rounded to 100,000 BTU's =1 Gallon of Diesel Metered for Jan = 463,241,470 / 100,000 = 4,632.41 Equivalent Gals January 2011 x $2.31= $9,579.25 Gallons Saved = 4,632.41 Gallons for Cost Savings of 4,632.41 x ($3.86-$2.31=$1.55) _ $7,180.24 Keep in mind also, that the Retail Cost for Diesel in McGrath In October 2011 is 7.4727 / gal. Our price purchased in June of 2011 was $3.86 / gal. Also, note that the McGrath Health Clinic was added to the System on Monday, October 24, 2011.