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The T I M E Plan: BBCAT's draft 20-year energy plan for Tallahassee, November 2005

Tallahassee Initiative for Managing Energy

A Clean Energy Plan for the City’s Future

 

Big Bend Climate Action Team

with

Clean Air Coalition

Heart of the Earth

21 November 2005

“Keep our money and jobs in town, keep electric bills down.”

Introduction

The Big Bend Climate Action Team (BBCAT) formed in May, 2005 before any mention of a coal plant for Tallahassee had been made. Its mission was to engage Tallahassee in the worldwide effort to abate climate change by planning a clean energy future for the City. BBCAT stated its intent to maximize the use of conservation and renewable energy sources in Tallahassee’s energy resource mix in two ways:

A.  By participating with both staff and commissioners in planning the City’s future energy resource mix.     

B.  By supporting the City’s climate-friendly initiatives, for example by helping to promote efficiency and renewable-energy programs.

To that end, we connected with staff of the City Electric Department, which was working on its 20-year plan for meeting Tallahassee’s energy needs (the “Integrated Resource Plan”). Staff welcomed our input and we formed two committees. One was to work on a renewable-energy part of the department’s efforts. The other was to work on the Integrated Resource Plan.

Within a few days after adopting these goals, we learned that Tallahassee had been invited to join as one-fifth partner with more than a dozen other Florida utilities to build an 800-megawatt coal-burning power plant, the North Florida Power Project, probably in Taylor County east of the City. Coal emits more global-warming carbon dioxide per unit of energy than any other fuel and is a major contributor to climate change, so BBCAT added to its mission statement:

C.  By opposing the City’s climate-hostile initiatives, for example its proposed partnership in a big coal plant in nearby Taylor County. Since then, throughout the summer and into the fall, BBCAT has found it necessary repeatedly to turn from its main goal of working to develop a clean energy plan for the City and instead to become engaged in opposing the coal plant plan per se.

It became one of our goals to insist upon holding a city-wide referendum to permit citizens to vote yes or no on the coal plant. The City Commission agreed in July to hold a referendum by mail-in ballot in the fall, with ballots going out on October 27 and due back in by November 17.

The City Commission also voted, however, to spend $3.6 million to “keep a place at the table” by taking the first, tentative step towards becoming a partner in the NFPP. (That investment has since almost doubled.) At the same time, at the urging of BBCAT, the Commission instructed Staff to “collaborate with the Big Bend Climate Action Team” in developing the Integrated Resource Plan for the City and allocated $250,000 to involve clean-energy consultants in the process.

BBCAT continued meeting with staff through the summer and made some progress both in learning how the planning process works and in proposing some modifications to the plan to reduce expenditures and shift the City’s energy resource plan toward alternative energy resources that are cleaner than coal. By fall, however, the effort to work together was faltering. Both Staff and BBCAT had become very busy. Meetings had become difficult to arrange. Discussions of alternatives were inadequate and BBCAT went ahead on its own to develop a clean energy plan for the City.

It seems important, now, to release our plan. It is important to let citizens and staff and commissioners see that it is, indeed, possible to develop an energy resource plan for the City of Tallahassee that involves no coal and greatly enhances development of alternative energy sources. With further discussion and research, and with renewed cooperation among citizens, staff, and commissioners, it should become possible to reach agreement on an energy plan for the City’s future that everyone can support with confidence and pride.

Caveats: First, it is the City’s job to plan to meet Tallahassee’s future energy needs. Our purpose is to ensure that the City adopts these two guiding principles in planning:

Fully identify and first target all the efficiency that will meet the City’s energy needs at a cost that is less than the cost of generating and delivering energy; and  

Increase the renewable energy resources in the City’s plan year by year so as to reach at least 12% of total energy resources by 2025

Our intent in this paper is to show one way in which this can be done.

Second, we are releasing this plan before it is altogether mature. We expect to keep modifying it in small ways as time permits us to refine the calculations and enter new, more current information. We do not, however, expectit to change in any substantial way.

 

Meeting Tallahassee’s Energy Needs

Quality. Any energy plan must first and foremost supply energy reliably and safely. Second, it must do so at a reasonable, and maximally stable, cost. To support both reliability and cost stability, diversity of energy resources is key.

Quantity. If no energy resources were added to the City’s resource mix, the City projects that it would, within 20 years, fall short of meeting demand plus the required 17% planning margin by 282 megawatts (MW), as shown in the graph that follows. One benchmark is the first year in which energy supply falls short of demand (plus margin). That year is 2011, and the shortfall is 12 MW. Another benchmark is the year in which the City falls short by more than 150 MW, the energy the proposed coal plant would deliver. That year is 2016, the 11th year of the 20-year plan. The year-by-year shortfalls are shown below:

Coal Plant Plan. As a one-fifth partner in the proposed 800-MW coal plant, the City would be entitled to 160 MW of its power, of which 10 MW would be needed to generate the energy and 150 MW would flow to Tallahassee along about 60 miles of transmission lines. Of the $360,000,000 to be spent by the City, the breakdown is:

            Cost to build transmission lines                  $60,000,000     

            Construction cost                                        $200,000,000

            Pollution controls                                        $100,000,000

These amounts would not be paid off in 20 years, because most likely the City would finance the coal plant over a 30-year span of time. At the end of 20 years, the City would have paid $390 million in principal and interest, and there would be $162 million still to pay.

A quality energy-supply plan has to be, above all, reliable and reasonable in cost, and to achieve these characteristics it should rely on a diversity of energy resources. It should also be environmentally clean. Advocates of the coal plant plan say that the plant would be reliable, providing electricity for the City for decades to come. Regarding cost, coal prices are lower than those of natural gas at present, and natural gas prices have risen dramatically in recent years. Coal would lower fuel costs and would also add diversity to the City’s fuel mix, helping to stabilize electric rates. Moreover, the coal plant would be one of the cleanest of its kind, meeting all federal and state emissions standards.

Concerns about the Coal Plant Plan. Those who oppose the coal plant do so for many reasons. The reliability of the supply is not guaranteed, given that disruptions of both delivery and transmission can occur due to hurricanes and sabotage. Its safety is not guaranteed, because this coal plant entails significant pollution problems. Current emissions standards are weak for three major pollutants (sulfur dioxide, nitrogen oxides, and particulate matter), are completely inadequate for mercury, and are nonexistent for carbon dioxide. The cost of coal compares favorably with natural gas now, but the city’s own projections show that natural gas prices are presently at a peak and will drop through 2015. Similarly, the U.S. Department of Energy’s projections show natural gas prices at a peak, dropping through 2010. And while it is true that coal would add diversity to the City’s fuel mix, it is just another fossil fuel like natural gas, and does nothing to reduce reliance on fossil fuels in general. At the end of 20 years, the City would still be 97% percent dependent on fossil fuels and would be burning more of them than it is doing now.

TIME Plan, A Clean-Energy Alternative. “TIME” stands for “Tallahassee Initiative for Managing Energy.” We urge that Tallahassee take a leadership role in managing its own energy locally, rather than relying on a power plant that is sixty miles away and mostly under the control of other utilities. Our plan also offers reliability. It is a much cleaner and safer alternative than burning coal, and it will reduce the costs of electricity increasingly, year by year. All fossil fuel prices are expected to rise for the foreseeable future, whereas many clean energy prices are falling. The TIME plan introduces true diversity into the City’s energy resource mix by adding significant quantities of two other kinds of resources: energy efficiency, and renewable energy. At the end of 20 years, Tallahassee would be only 67% dependent on fossil fuels.

The TIME plan has five parts, and all can be launched immediately:

            1. Energy efficiency and conservation

            2. Clean biomass

            3. Distributed generation (using natural gas)

            4. Solar water-heating program

            5. Solar electricity

PART ONE OF THE TIME PLAN: ENERGY EFFICIENCY & CONSERVATION

Energy efficiency and conservation are the cleanest and least costly of the energy resources that are available to reliably meet the City’s growing needs. In any energy plan, these resources should always be evaluated first and all resources should be selected that cost less to save a watt or watt-hour than it would cost to generate a watt or watt-hour.

Energy efficiency gets the same, or more, electrical work done using less electricity. Motors that run more smoothly, light bulbs that burn brighter and at the same time cooler, buildings that are more comfortable and require less air conditioning are examples of energy efficiency at work. Conservation means a slightly different thing, simply not wasting energy. Turning off unneeded lights or turning off the air conditioner when no one is at home are examples of conservation. From here on, we will refer to both energy efficiency and conservation simply as “efficiency.”

We are impressed with the example of the Texas utility, Austin Energy. Austin Energy has made its citizens aware that efficiency is a resource, just as natural gas or coal is, because like a penny, a watt saved is a watt earned. The use of efficiency to meet energy needs, therefore, is a means of generating energy.

Using a broad range of efficiency devices and programs, Austin Energy has, over the past twenty years, “built” a “conservation power plant” with a 600 MW capacity. If Tallahassee were to match Austin’s level of achievement for its size, our city could, in the next twenty years, build an “efficiency power plant” of its own. This power plant would have a capacity of 150 MW, the same number of megawatts intended for the proposed coal plant. Of this, about 26 MW would be available by 2012, the year the projected coal plant might begin to operate. It would take longer to ramp the efficiency program up to full capacity but the other four parts of the TIME plan would cover all energy shortfalls meanwhile.

Few people have any idea how tremendous is the potential for making a city’s energy use more efficient. The principles can be applied to enterprises of every size, from installing efficient little light bulbs to building whole industrial parks and apartment complexes. The ingredients of efficiency programs include not only devices and services but loans, rebates, community education, builder training, assistance in marketing, and more.

The Big Bend Climate Action Team has proposed numerous efficiency initiatives to the City. If adopted, an aggressive efficiency program would cost less to create, and save more on fuel, than would the proposed coal plant. Here is a summary of our calculations for the two alternatives over the 20-year planning period (details of our assumptions and calculations are in the Appendix, Part A):

__________________________________________________

            Efficiency program:

                       Cost of program                         $120 million

                       Fuel costs avoided                    $250 million

            Coal plant plan:

                       Cost to build                               $390 million*

                       Fuel costs avoided                    $114 million

 __________________________________________________

*This $390 million represents the principal and interest paid over the first

20 years of a 30-year loan for $360 million at 3.5%. At the end of the 20

years, a balance of $162 million would still remain to be paid.

 __________________________________________________

           

To a considerable extent, energy generated by efficiency tends to “stick,” although there is some slippage. Insulation, once installed, remains and does its job with little decline in performance. Efficient light bulbs have long lives and most remain in place for many years, but when replacing them, users may backslide and install incandescent bulbs again, losing the earlier efficiency gain. Efficiency programs whose benefits do persist deliver energy savings year after year without requiring the burning of any additional fuel.

While saving more than $250 million from the TIME program’s efficiency program alone, Tallahassee could also be saving millions more from its other programs.

PART TWO: CLEAN BIOMASS GENERATION

The term biomass refers to organic materials of all kinds, from cornstalks and tree trimmings to garbage. Clean biomass includes only clean organic materials such as wood. Leon County is one of the top-rated counties in the southeast for potential power generation from clean, woody biomass. (A reason this biomass is considered clean is that it emits no sulfur, 70% less nitrogen oxide, and 91% less mercury than coal per unit of electricity produced.)

Among possible sources of woody biomass supply are roadside wood waste, tree trimmings, trees thinned from forest land, scrap untreated lumber, and trees cleared from development sites. Supplemented by a constantly replanted crop of fast-growing trees, these sources could produce a reliable supply of biomass that could flow in a steady stream to two or three or more biomass plants.

Because it is continuously supplied from new growing matter, biomass counts as a renewable energy resource. Biomass “burning” is pollution-controlled, unlike open wood burning, and technologies for extracting energy from biomass also have developed that involve still cleaner chemical methods such as anaerobic fermentation or pyrolysis. These processes yield useful byproducts such as dry ice and fertilizer.

Our estimates indicate that Tallahassee could realistically have a 20-MW biomass generating capacity by 2012 and 50 MW by 2025, the end of the 20-year planning period. Costs of energy generated from biomass are lower than from any fossil fuel, even coal (see Appendix, Part B)

PART THREE: DISTRIBUTED GENERATION (NATURAL GAS)

This element of the TIME plan relies on a fossil fuel, natural gas, but uses it as efficiently as possible. Distributed generation entails building appropriately sized power plants physically close to sites of high demand. Plants at such sites can deliver considerably more energy to end users than can distant power plants, particularly if there is a need for heating and/or cooling of nearby buildings. Energy is delivered to points of use with few or no losses in transmission. Distributed generation plants can be run during the day to serve daytime needs, and during the night, when demand is less, to make heat or ice for the next day’s climate control, refrigeration, and other purposes. Because more of the energy generated is used to do work, big fuel savings are achieved. Fuel costs may be halved by distributed generation. (A 10-MW distributed generation plant relieves the central power plant from having to produce 20 MW.)

Many places around Tallahassee are suitable for distributed generation: Innovation Park, Florida State and Florida A&M universities, Tallahassee Community College, Governors Square Mall, Tallahassee Mall, and the downtown and edge-of-town government centers. If all of these sites were to be served this way, Tallahassee could reduce its energy demand by 160 MW or more. Because, however, planning time is needed to coordinate with partners and to accommodate their timing, we estimate the City’s potential savings from distributed generation may be as low as 10 MW by 2012 and 30 by 2025.

PART FOUR: SOLAR WATER-HEATER PROGRAM

Like clean biomass, solar heat (solar thermal energy) keeps coming day after day and so is considered a renewable resource. During parts of the day when the air is clear and the sun is high, Tallahassee receives a powerful dose of solar thermal energy.

Many of Tallahassee’s residences have roofs that are oriented properly and are not shaded, so they are suitable for solar water heaters. The electric utility of Lakeland, Florida has a solar water-heating program similar to the one proposed here, which is proving cost-effective both for the city and for residents.

We propose that Tallahassee mount a solar water-heating program to cut demand. This plan entails installing 20,800 solar water heaters, starting with 200 in 2006 and escalating to 1,200 per year from 2012 on.

Half of these water heaters, or 10,400, would be City-purchased, installed, metered, and maintained. For these, the City would pay the purchase price and benefit from the energy savings produced by having the sun, rather than fossil fuel, heat homeowners’ water. Homeowners would benefit by having these water heaters installed at no cost to them and by being given a fixed, rate, lower than the rate for heating with electricity, for the energy used to heat their water.

The other 10,400 water heaters would be purchased, installed, and maintained by homeowners who want to own their own systems and who can take advantage of the big federal tax credits being offered in 2006-2007 for solar equipment. We suggest that the City offer a rebate of an additional $500 to further promote the program. The City would benefit by being relieved of demand on its power plants; residents would benefit from having water heating that is largely free, but is also reliable thanks to either electric or gas backup heating on days of high homeowner use or low solar insolation.

The finances of this program work out well. Solar thermal energy is cost effective today. Payback times are usually shorter than ten years and can be shorter than five years. The costs to the City are more than compensated for by avoided fuel costs, especially if the fuel is natural gas.

Details of the costs and benefits of this program to the City and to homeowners are in the Appendix, Part C . In our judgment, it is well within reason to expect 4 MW from this program by 2012 and 21 MW by 2025

PART FIVE: SOLAR ELECTRICITY

Technologies for generating electricity from the sun are evolving rapidly and costs of some are declining. One technology is solar photovoltaic, or solar PV, which entails generating electricity from sunlight using panels with a silicon dioxide coating. Older PV panels were rigid panels and had to be affixed to strong mounts on roofs or scaffolds. Today’s PV panels are flexible and can be rolled out directly on roofs or even wrapped around curved surfaces. Another solar electric-generating option involves capturing the sun’s heat with a convex reflector and focusing that heat on a pipe through which oil is moving. The hot oil is then used to create steam and the steam runs generators. Many other designs are in use around the world.

We estimate that the first four parts of the TIME plan will yield savings of $146 million for the City (see Appendix, Part D ). We ask that the City keep abreast of new developments, analyze possibilities, and invest that $146 million in solar electric technology as it evolves and as costs decline. Perhaps one, perhaps several projects would be desirable. Distributed solar generation (on roofs of homes and businesses) might be appropriate, or it might be better to have a centralized solar power plant.

One possibility that offers promise is to form a public-private partnership to develop a large solar power plant consisting of PV panels on open-space land in or near Tallahassee. Centralized generation of solar electricity has several advantages:

Ground-level installation and maintenance costs less than on rooftops

Many panels at one location require fewer inverters, controllers, etc.

Electricity can flow directly to the grid with no need for battery storage                

Capacity can be expanded as costs fall                

Community pride can focus on such a power plant

By this or a combination of means, we believe it would be possible to generate a total of 40 MW or more from solar electricity by 2025.

ADVANTAGES AND SUMMARY OF THE TIME PLAN

The TIME plan offers many benefits to Tallahassee. It meets the City’s energy needs for the next twenty years with well known, established technologies. It uses only the cleanest of the fossil fuels, natural gas, uses less of it, and uses it more efficiently than at present. Over its-20 year duration, it avoids $390 million principal and interest on the coal plant and more than $325 million in fuel costs. By saving those funds, it keeps options open to seize clean-energy opportunities in coming years as their prices fall. It reduces the total polluting emissions released by Tallahassee’s power plants and the associated negative health effects.

Within the community, many economic benefits can be expected from the TIME plan. Efficiency and solar programs, especially, guarantee many local jobs such as doing service, sales, installation, and maintenance of equipment; and consulting on, designing, and marketing energy systems and green buildings. By helping incoming businesses to plan efficiency into their buildings at start-up, the program will enable them to save money on their energy bills. This economic development effect predictably attracts businesses, as has been observed in many other communities such as Portland, Sacramento, Minneapolis, and Austin.

The TIME plan’s three renewable-energy programs (biomass and both types of solar) also are forms of distributed generation in that they generate energy at locations other than at the central power plant. They therefore create local jobs operating and maintaining distributed plants and they help to “terrorist-proof” the City’s grid. They can keep operating if the central power goes down, so they can improve local electric reliability for schools, hospitals, shelters, and the like during and after severe storms. And some of them, notably metered solar water heaters, may be the only source of a revenue stream to the utility during power outages after hurricanes.

At present, the City of Tallahassee can be considered “the clean energy capitol of Florida,” because it generates no energy from coal and purchases only a little such energy. With the TIME plan meeting its energy needs in the future, the City can maintain and expand this claim and gain from it a sense of of civic pride.

Two other major advantages attend the TIME plan. One is that it greatly diversifies the City’s energy resource plan, and in a more significant way than does coal. A comparison of the two plans at the end of 20 years is shown next.

Shown at left  is what the City’s energy resource mix would look like assuming it would add only coal and natural gas to meet its needs by 2025. The City would presumably retain the small amounts of efficiency it has gained since 1996, estimated at about 20 MW, and the small amounts of renewable energy that it now has (as of 2005)−the Lake Talquin hydroelectric generating station and the solar energy installation at the Truesdell Center on John Knox Road. All the rest would be fossil fuel energy, whose costs are rising mercilessly and whose future availability is uncertain.

Shown at right is what the TIME plan’s energy resource mix would look like by 2025. The TIME plan adds true diversity to the City’s energy resource mix and greatly reduces the City’s dependence on natural gas. Only 67% of the City’s energy would be coming from fossil fuels as of 2025. The other 33% would be coming from energy efficiency, at a great savings in avoided fuel costs; and from renewable energy.

The other advantage of the TIME plan, and perhaps the most important of all, is that it is a climate-protection plan. The burning of fossil fuels is heating up the globe, and if fossil fuel use continues to increase according to the “business as usual” model, the consequences for our children and their children are dire. It is time to start weaning ourselves from our dependency on fossil fuels. It is time to learn how to use efficiency and renewable energy to meet large portions of our energy needs.

It is TIME.

 

Clock1130

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APPENDIX
Notes, Assumptions, and Calculations

PART A

EFFICIENCY PROGRAM:

To estimate energy amounts and costs of the efficiency program, we applied Austin’s experience to Tallahassee, adjusting for peak demand in the two cities and we assumed that Tallahassee’s existing programs had already saved 10 MW, more than the 6 MW goal projected in the latest plan.

Austin’s goal is to meet 15% of its energy needs through efficiency. If we gradually increase our efficiency to match that goal and obtain 15% of our energy needs from efficiency by 2025, that would be an average of 10% of our energy needs met from efficiency over the time period. If Tallahassee meets that goal by 2025, it will save 10% of the projected fuel costs for the 20-year period.

To estimate Tallahassee’s fuel costs, we used the City’s projections of $4.6 billion for the total cost of fuel, debt service, and operating expenses for the 20-year period using natural gas. We obtained cost estimates of $210 million from the City for the City’s alternative plan to upgrade Hopkins II and add another combined cycle generator. We estimated that debt service would be $339.5 million for a thirty-year loan on $210 million at a municipal bond rate of 3.5%. (Barry Moline of the municipal power industry said 3.5% is the going rate for municipal bonds). We subtracted the estimated $339.5 million for the cost of debt service from the total cost of the City’s all-natural-gas alternative plan. We then subtracted 10% of that amount for an estimated cost of maintenance, since maintenance on existing natural gas facilities would still be needed. The remainder from the $4.6 billion we started with is $3.8 billion for fuel costs. Avoided fuel costs for the efficiency plan are calculated as 10% of the costs of $3.8 billion in fuel costs for natural gas, or $380 million. To calculate savings for our twenty-year planning period, we used 2/3 of that amount, or $255.8 million, which we rounded to $250 million.

The City estimates that it would realize $126 million in net savings from its $360 million investment in the North Florida coal plant. Debt service on $360 million at 3.5% for 30 years is $390 million, with a balance of $162 million in principal remaining after 20 years. If we invest $120 million in improving efficiency for Tallahassee homes and businesses instead, we can save $250 million in fuel costs from that measure alone, as shown the estimate explained above. We obtained the $126 million net savings from the City’s figures for the cost difference between the total cost of the plan including the coal plant and the total cost of the plan using only natural gas, with no efficiency savings.

[Figures not included]

PART B

BIOMASS

Our data for biomass are meager. The following table shows the comparison we were able to make between the cost of biomass generation (by wood-burning) and the cost of coal generation:

Cost per MW Source of information
Biomass high estimate $55 Mark Chamlis, local biomass plant operator
Biomass low estimate $52 Mark Chamlis, local biomass plant operator
Coal $59 City Briefing Paper on NFPP, July 2005

PART C

SOLAR WATER-HEATER PROGRAM

Solar water heaters in Tallahassee are more expensive than in Lakeland, because they have to be freeze-proof. Water heaters with the needed characteristics cost about $3,500 each when purchased individually, but the City could purchase them in lots of 100 or more and take delivery in smaller batches. In talking with a local installer, we found that in lots of 100, freeze-proof closed loop systems can be purchased and installed for about $2,800 each.

Costs for homeowners who choose to install their own water heaters during the tax-advantage years of 2006-2007:

Starting cost to homeowner          $2,800
Suggested rebate from the City        500
Federal tax credit                                690
Net cost to homeowner                 $1,610

This is less than half the cost, new, of such water heaters bought one by one and should provide incentives to many customers to purchase them.

 

Calculation of megawatts of demand reduction for solar water heaters:

We used figures provided by the City electric planning department that show 1 kilowatt of winter peak demand reduction per solar water heater. That translates into 20.8 MW of demand reduction by 2025 for the total number of water heaters installed.

Benefits to the City for homeowner-owned water heaters:

Each one = $2,800 (freeze-proof, installed)
2000 installed by 2012 = 2 MW winter peak demand reduction
10,400 installed by 2025 = 10.4 MW winter peak demand reduction

Energy benefits to the City for City-owned water heaters:

Each one = $500 (recommended City grant to homeowner)
2,000 installed by 2012 = 2 MW winter peak demand reduction 10,400 installed by 2025 = 10.4 MW winter  peak demand reduction

Total peak demand reduction 20.8 MW

Costs to the City:

For 10,400 City-owned water heaters, $2,800 each: about    $29.1 million
For 10,400 homeowner-owned water heaters, $500 each:      $5.2 million

Total cost to City                                                                         $34.3 million

Calculation of fuel cost savings for solar hot water heaters:

Lakeland (Fla.) Utilities has metered solar water heaters as part of their city-owned solar water heater program, and their data that shows that each unit produces an average of 2,190 kilowatt hours of energy per year. Since the peak solar availability in Lakeland is 5.9 hours, compared to 5.3 hours for Tallahassee, we calculated the expected energy gains at 1,947 annual kilowatt hours per unit, 90% of the Lakeland amount. We used the fuel cost data and projections supplied by Barry Moline of the Florida Municipal Utilities Association in July of 2005 for a low fuel cost savings estimate.

At that time, he reported that the cost of natural gas was $9.30 per million BTUs, and it was projected to rise to $14.00 per million BTUs by 2025. Converting this cost data to costs per megawatt, we estimated the fuel cost savings from the solar water heater program as $50 million over 20 years, with gradually increasing numbers of water heaters and gradually increasing prices. For the high cost estimate of $75 million, we used a cost of natural gas of $12.98 per million BTUs reported in USA today in October of 2005, and projected the same rate of increase as seen in the July projections.

Cost benefits to the City:

If fuel costs drop and then increase again to remain relatively flat over the 20-year period, fuels costs avoided will total $50 million by 2025. If fuel costs grow by 50% by 2025, fuel savings will be $75 million. Based on recent history, they could grow much more and savings will continue to accrue and grow after 2025, the end of the 20-year planning cycle. In 2025, 13,200 solar water heaters will be ten years old or less. These will continue to provide savings for many years thereafter.

(Figures not included)

 

PART C

ESTIMATE OF FUNDS AVAILABLE TO IMPLEMENT PART 5

When the first four parts of the TIME Plan are fully implemented, the City will have spent the following amounts:

    1. Efficiency                                                        $120 million

    2. Biomass                                                            $60 million

    3. Distributed generation                                   $30 million

    4. Solar water heating                                       $34 million

                                                                               --------------

TOTAL                                                                    $244 million

 

Because the proposed coal plant will not have had to be built, the plan will have elimated the expense of debt service over 20 years:

                                     Saved on the coal plant:                                 $390 million


                                     Spent on Parts 1-4 of TIME plan:                  $244 million
                                                                                                                -------------
                                     Funds remaining available for Part 5:          $146 million

PART D

FUNDING OF PART 5. SOLAR ELECTRICITY

(BBCAT never wrote up this demonstration, believing that the above calculations were sufficient to make it clear that funds would be available for a major solar-electric program)