Wednesday, July 11, 2012

Upper Lynn Canal Power

Considering current electric power needs and reasonable future power needs for the upper Lynn Canal.

We are currently have 5 MW peak load which will grow. Haines is estimated to need 6.4 MW in 10 years. Now we need to look at the fact that due to pollution cruise ships are going to need shore power. AP&T estimates 7 - 12 MW per ship. Skagway often has 4 ships and at times 5 ships. Haines currently has 1 large ship per week and expects more.

If we use the low estimate of 7 MW for those 6 ships that is 42 MW. Now add the estimated 6.4 MW for Haines, that brings us to 48.4 MW. We still need to power Skagway which currently uses about 3.3 MW, that brings us to 51.7 MW. Would expect Skagway to grow at least 2.7 MW in 10 years, bringing us to 54.4MW.

If you add up ALL the hydro sources in upper Lynn Canal there is not near enough power. Then add the hundreds of millions of dollars it would cost to build them all there is no way the customers could pay for it.

Now if we look at this a different way we can make it ALL work. Keep in mind we have a cable between Haines and Skagway that will handle 20 MW. If the West Creek project is built in Skagway it’s estimated to produce 25 MW. That would be at least 10 years away at best. But at least it’s a financially valid project. Till then we in Haines could go to natural gas turbines to produce power. Most likely to start with that would come to Haines as LNG. We have the space to safely store LNG where Skagway does not. By using 5 MW turbines which cost $3 million each we could increase power as it becomes needed. We would be able to help Skagway with their estimated need through the under sea cable. Considering Skagway currently has about 5 MW of hydro power and West Creek will provide 25 MW totaling 30 MW. We could easily provide the needed extra through the cable.

By using 5 MW gas turbines we could incrementally increase or decrease power as needed. Thus not wasting fuel or making excess pollution.

Figuring all the above in time we might have 4 of the 5 MW gas turbines at about $12 million investment. Considering they would be purchased incrementally the rate to the customer should be kept low.

Let us remember Alaska law requires power utilities provide; Adequate, Available, Affordable power.

Thank you for reading;

Bill Kurz

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