Cost of the deal to Grays Harbor ratepayers
Should the PUD buy the Cosmopolis Mill?
Using figures released to the Daily World under the Freedom of Information request
| Mill Power Requirements (MW) |
23 |
|
The Mills power requirements |
| Mill Generation (MW) |
15 |
|
The Mills Generational Capacity |
| Operating Days |
350 |
|
Number of Days of Operation |
|
|
|
|
| Power Rates |
|
|
|
| Mill Price ($/MWh) |
40 |
|
The price of Electricity to the Mill |
| Market Price ($/MWh) |
70 |
|
The "Market Price of Electricity" |
| Mill Generation Cost ($/MWh) |
70 |
|
The Cost of Generating 1 MWh of electricity at the Cosmopolis Mill |
| PUD power purchase Cost ($/MWh) |
36 |
|
The average purchase price of 1 MWh for the PUD |
| Green Tags ($/MWh) |
7.5 |
|
The price of 1MWh worth of "Green Tags" |
|
|
|
|
| Revenues |
|
|
|
| Power to Mill |
7,728,000 |
A x C x 24hr x E |
The Total price the Pulp Mill will pay for Electricity |
| Green Tags |
945,000 |
B x C x 24hr x J |
The worth of the Green tags associated with 15MW of power |
| Less reduced "surplus sales" |
(2,016,000) |
(F - E) x (A - B) x C x 24hr |
The difference between selling the BPA surplus at market rate and the amount paid by the pulp mill |
| Total Incremental Revenues |
6,657,000 |
K+M+N |
|
|
|
|
|
| Costs |
|
|
|
| Generation Cost |
8,820,000 |
B x C x 24hr xG |
The cost of power generated at the Cosmopolis Mill |
| Purchased Cost |
2,419,200 |
(A - B) x C x 24hr x H |
The cost of incremental power required at the Cosmopolis Mill |
| Total Incremental Costs |
11,239,200 |
S + T |
|
|
|
|
|
| Incremental Profit (year) |
(4,582,200) |
P - U |
The "Profit / (Loss) per year |
|
|
|
|
| Value (Perpetuity) |
(107,816,471) |
W / 4.25% |
The value of the investment |
As above using the fuel and operating costs from the 2006 Paneltech report (updated for 2008 fuel costs)
| Mill Power Requirements (MW) |
23 |
|
The Mills power requirements |
| Mill Generation (MW) |
15 |
|
The Mills Generational Capacity |
| Operating Days |
350 |
|
Number of Days of Operation |
|
|
|
|
| Power Rates |
|
|
|
| Mill Price ($/MWh) |
40 |
|
The price of Electricity to the Mill |
| Market Price ($/MWh) |
70 |
|
The "Market Price of Electricity" |
| Mill Generation Cost ($/MWh) |
95 |
|
The Cost of Generating 1 MWh of electricity at the Cosmopolis Mill |
| PUD power purchase Cost ($/MWh) |
36 |
|
The average purchase price of 1 MWh for the PUD |
| Green Tags ($/MWh) |
7.5 |
|
The price of 1MWh worth of "Green Tags" |
|
|
|
|
| Revenues |
|
|
|
| Power to Mill |
7,728,000 |
A x C x 24hr x E |
The Total price the Pulp Mill will pay for Electricity |
| Green Tags |
945,000 |
B x C x 24hr x J |
The worth of the Green tags associated with 15MW of power |
| Less reduced "surplus sales" |
(2,016,000) |
(F - E) x (A - B) x C x 24hr |
The difference between selling the BPA surplus at market rate and the amount paid by the pulp mill |
| Total Incremental Revenues |
6,657,000 |
K+M+N |
|
|
|
|
|
| Costs |
|
|
|
| Generation Cost |
11,970,000 |
B x C x 24hr xG |
The cost of power generated at the Cosmopolis Mill |
| Purchased Cost |
2,419,200 |
(A - B) x C x 24hr x H |
The cost of incremental power required at the Cosmopolis Mill |
| Total Incremental Costs |
14,389,200 |
S + T |
|
|
|
|
|
| Incremental Profit (year) |
(7,732,200) |
P - U |
The "Profit / (Loss) per year |
|
|
|
|
| Value (Perpetuity) |
(181,934,118) |
W / 4.25% |
The value of the investment |
As above using the fuel and operatings costs from the Charlestown Investments Cosmopolis analysis
| Mill Power Requirements (MW) |
23 |
|
The Mills power requirements |
| Mill Generation (MW) |
15 |
|
The Mills Generational Capacity |
| Operating Days |
350 |
|
Number of Days of Operation |
|
|
|
|
| Power Rates |
|
|
|
| Mill Price ($/MWh) |
40 |
|
The price of Electricity to the Mill |
| Market Price ($/MWh) |
70 |
|
The "Market Price of Electricity" |
| Mill Generation Cost ($/MWh) |
109 |
|
The Cost of Generating 1 MWh of electricity at the Cosmopolis Mill |
| PUD power purchase Cost ($/MWh) |
36 |
|
The average purchase price of 1 MWh for the PUD |
| Green Tags ($/MWh) |
7.5 |
|
The price of 1MWh worth of "Green Tags" |
|
|
|
|
| Revenues |
|
|
|
| Power to Mill |
7,728,000 |
A x C x 24hr x E |
The Total price the Pulp Mill will pay for Electricity |
| Green Tags |
945,000 |
B x C x 24hr x J |
The worth of the Green tags associated with 15MW of power |
| Less reduced "surplus sales" |
(2,016,000) |
(F - E) x (A - B) x C x 24hr |
The difference between selling the BPA surplus at market rate and the amount paid by the pulp mill |
| Total Incremental Revenues |
6,657,000 |
K+M+N |
|
|
|
|
|
| Costs |
|
|
|
| Generation Cost |
13,734,000 |
B x C x 24hr xG |
The cost of power generated at the Cosmopolis Mill |
| Purchased Cost |
2,419,200 |
(A - B) x C x 24hr x H |
The cost of incremental power required at the Cosmopolis Mill |
| Total Incremental Costs |
16,153,200 |
S + T |
|
|
|
|
|
| Incremental Profit (year) |
(9,496,200) |
P - U |
The "Profit / (Loss) per year |
|
|
|
|
| Value (Perpetuity) |
(223,440,000) |
W / 4.25% |
The value of the investment |
