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Electrical Power for Valdez and the Copper River Basin-1981

Electrical Power for Valdez and the Copper River Basin-1981

Electrical Power for Valdez and the Copper River Basin-1981

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Diesel costs came from historical data up throt,lgh 1979. TableVIII-4shows expenses <strong>for</strong> several years. Fuel costs per kWh generated haveaveraged almost 14 percen~ growth per year <strong>for</strong> <strong>the</strong> last 5 years; <strong>the</strong>re<strong>for</strong>e,it is assumed to continue increasing'at something above <strong>the</strong> inflationrate. The study used 5 percent <strong>and</strong> 2 percent fuel cost escalation ratesas shown in TableVIII-4A.TableVIII-5 gives a summary comparison of Allison Creek <strong>and</strong> its alternatives.ThePRT undoubtedly does not include all costs. Never<strong>the</strong>less,it seems to be <strong>the</strong> most economical. The diesel comparison value isgiven <strong>for</strong> 1979 <strong>and</strong> estimated <strong>for</strong> 1980. Figure VIII-1 graphs <strong>the</strong>serelationships. .Average RatesTables VIII-6through VIII-9 indicate project payback rates <strong>for</strong> <strong>the</strong>different alternatives. For comparison, continuation of diesel generationat 5 <strong>and</strong> 2 percent fuel escalation is shown in tables VIII-10 <strong>and</strong>VIII-lOA. The rates, summarized below, are not much different thanthose shown in Table VIII-S.45

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