The Power of Water. January 2010

Transcription

1 The Power of Water January 2010

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4 The Power of Water January 2010 Existing Hydroelectric Facility Locations with Hydroelectric Potential KEY FACTORS Elevation Drop Amount of Flow kwh Pricing Cost of Project Other Benefits Potential Partners Funding Sources Interconnection

5 The Power of Water January 2010 Putting the Financial Pieces Together At 10,000 How much power can be generated? h * Q * 85% / 11.8 = kilowatts capacity kilowatts * Days of Operation * 24 = kwh How much money can be generated? Kwh * $.06 = $ per year generated How much financing can that fund? $ per year generated annual costs = payment capacity 6% financing over 20 years How much to build the facility? Pipe costs, building, turbine-generator-switch How close to utility for interconnection? Do you know what FERC means? Do you know anyone at your state PUC? What is the zoning of your potential site? Does this thing generate positive cashflow?

6 The Power of Water January 2010 Tax Credits State and Federal Business Energy Tax Credit ODOE Calculate 30% of 85% of your project cost Production Tax Credits with Private Partners Funding Opportunities Where s the Sugar? Energy Trust of Oregon Utility Incentives Renewable Energy Loan Programs Clean Renewable Energy Bonds (CREBs) Other grant sources for renewables? Rural development Regional Infrastructure funds

7 The Power of Water January 2010 Any water conservation? Identify Other Benefits Conserved water for instream or additional lands to irrigate Any O&M costs eliminated? Any cost savings to someone else? Pressurized water to patrons that reduces pumping No need for bridges on new road being planned Any benefits to someone else? Piped waterway now creates opportunity for trails Easement reduction provides more developable land

8 The Power of Water January 2010 JUNIPER RIDGE HYDRO 2.5 Miles Main Irrigation Canal 9 Steel Pipe 20 cfs Conserved Water Savings 3.3 MW Generating Capacity 5 MW built capacity $24 MM Project Costs Multiple Benefits & Beneficiaries, & Funding Sources Capability to pipe upstream 4 miles and add 4 MW of power Each mile of additional pipe generates 10 cfs for instream

9 The Power of Water January 2010 JUNIPER RIDGE HYDRO Total Project Costs - $24MM Pipe, excavation, fill, clearing, landscaping Mobilization, insurance, bonds Inlet structure, trash rack, energy dissipation system Turbine, generator, switch gear & installation The building, landscaping, lighting Grid interconnection Development costs legal, permits, licensing, design Debt service and major mechanical reserves Financing costs, construction period insurance Environmental Impact mitigation Add 10-15% contingency Regulatory surprises other factors out of your control

10 The Power of Water January 2010 JUNIPER RIDGE HYDRO Total Financing - $24MM BETC $ 4,365,000 ETO $ 1,000,000 OWEB, BOR, CWSRF $ 6,250,000 COID Cash Equity $ 2,289,000* Total $13,904,000 Remainder $10,096,000 Whose your daddy? ODOE $10,946,000 Small Energy Loan Program (SELP) 18 Year long-term loan 5-9% Rate of Return to COID

11 The Power of Water January 2010 ALTERNATIVE STRUCTURES Private Party Financing It s all about financial rate of return Rate of return expectations higher than for municipal entity Income taxes & property taxes Incentives available to private party PTCs and depreciation Contract and performance driven Ownership Structure Private ownership for range of years Ownership flips to Municipal Entity Municipal entity usually operates and maintains Oregon Public Sector Statutes Limitations apply and Project Agreement structure important

12 The Power of Water January 2010 FRUITS FROM THE EFFORT Siphon Power Plant Fully owned by COID On line producing revenue since 1989 Funded through ODOE SELP Debt obligation paid off in 2014 Total revenue to date $39MM Average revenue per year $2MM Average surplus to COID per year $400K Offsets assessment increases to patrons Funds irrigation infrastructure capital projects After debt paid off annual surplus to be $1.5MM+

13 JUNIPER RIDGE PROJECT

14 JUNIPER RIDGE PROJECT

15 JUNIPER RIDGE PROJECT

16 TIME FRAME: October 6, 2009 Construction Begins April 1, 2010 Piping Complete September 6, 2010 Hydroelectric Complete & Online MANUFACTURERS: James Leffel & Company, Ohio NW Pipe Company, Oregon Ideal Electric Company, Ohio JOBS: 115 Jobs Created or Sustained TOTAL PROJECT COST: $24,000,000

17 WATER: 19.6 CFS of Water Permanently into The Deschutes River Improved Water Quality (river temperature decreases) POWER: 13 Million KWH of Green Power Produced Per Year Which annually displaces 4,550 tons of carbon dioxide produced by Coal Plants and 2,600 tons of carbon dioxide produced by Natural Gas 1,300 Homes will receive electricity from this project

18 STATE OF OREGON Department of Energy Department of Environmental Quality Oregon Watershed Enhancement Board DESCHUTES RIVER CONSERVANCY U.S. BUREAU OF RECLAMATION ENERGY TRUST OF OREGON CITY OF BEND PELTON FUND Portland General Electric/ Confederated Tribes of Warm Springs

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