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COMMENTS OF CENTRAL NEBRASKA PUBLIC POWER AND <br />IRRIGATION DISTRICT <br />CEN -18 <br />.P <br />v <br />replacement of power from the Gerald Gentleman Station, one <br />of the cheapest in NPPD's current mix.'!/ <br />Obviously, shutting down the hydroelectric units alone <br />did not lead to the extensive changes in the expansion plan; <br />it simply tipped the economic balance enough for NPPD to <br />make different decisions about replacing other costly <br />units.1V Therefore, FERC Staff should not attribute all of <br />the added value to the hydroelectric units. Two rough <br />corrections are proposedm' to eliminate the system -wide <br />added value from the "net economic value" assigned to the <br />Projects. First, the value of capacity added for the years <br />2008 -2011 in excess of the 118 MWh associated with the <br />Projects should be subtracted from the net value attributed <br />to the hydros. The surplus economic value associated with <br />the added capacity is $94.5 million in 1994 dollars; <br />assuming an 80/20 split between the Projects and allocating <br />80% to Project No. 1417, the net economic value of the <br />Project falls from $115.4 million to $39.8. <br />Second, the value of surplus energy added for those <br />years should be subtracted. That corresponds to <br />approximately $14.9 million in 1994 dollars. Assuming an <br />80/20 percentage split between the Projects, the net <br />Axelrod, Economic Analysis at B. <br />M/ Id <br />u/ Id. at 9. <br />- 45 - <br />RESPONSES TO CENTRAL NEBRASKA PUBLIC POWER AND <br />IRRIGATION DISTRICT <br />CEN -18 The economic analysis has been thoroughly revised in keeping with current <br />commission procedures. <br />