CT2018-833 Approval Letter - Laserfiche WebLink

Home Browse Search

Southeastern Colorado Water Conservancy District Agenda Item 13a July 20-21, 2016 Board Meeting(Updated July 22, 2016) Page 4 of 6 agreement that will be in conjunction with two consecutive 10-year General Service Agreements (2018- 2028 and 2028-2038) between Colorado Springs Utilities and Fort Carson Army Base. In the event the PPA is not renewed at the end of 20 years, a revenue source would stilt exist because the Public Utilities Regulatory Policy Act would require Black Hills Energy to purchase the hydropower at its avoided cost rate. Currently that price is $0.02947 per kWh and would be sufficient to pay the annual loan payment. TABLE 1: PROJECT COST Task Cost Construction $7,300,000 Construction Contingency (-25%) $1,800,000 Equipment $6,000,000 Interconnect $1,000,000 District Support/Const Management $460,000 Subtotal 1 $16,560,000 Owner's Contingency (-4%) $660,000 Subtotal 2 $17,220,000 Previous Studies and Engineering $1,840,000 (Actual Cost) TOTAL $19,060,000 Permitting: The District was awarded a preliminary LOPP in 2012. The preliminary LOPP expires on August 27, 2016. Therefore the District will either renew the preliminary LOPP or, if the PPA and interconnection agreements have been executed by that time, apply for the final LOPP. Reclamation has completed an Environmental Assessment for the project. A Finding of No Significant Impact (FONSI) is expected to be signed in July 2016. A Pueblo County 1041 FONSI approval was obtained in December 2014 and a US Corps of Engineers 404 nationwide permit was granted for the work in the Arkansas River. Based on input from US Fish and Wildlife, there are no endangered species impacted by the Project. Schedule: The District anticipates receiving the final LOPP in September 2016. Construction is planned to occur from October 2016 through January 2018 with commissioning of the power plant in May 2018. Financial Analysis The District was originally approved for a municipal low-income interest rate of 3.25% for a 30-year term for the AVC project. However, this individual phase qualifies for CWCB's hydroelectric interest rate of 2.0% for a 30-year term. Table 2 provides a summary of the Project's financial aspects. The District has already incurred $1,840,000 in cost associated with previous studies and engineering. TABLE 2: FINANCIAL SUMMARY Total Project Cost $19,060,000 Borrowers Contribution (Actual Cost) $1,840,000 CWCB Loan Amount (-90%) $17,220,000 CWCB Loan Amount (Including 1% Service Fee) $17,392,200 CWCB Annual Loan Payment $776,560 CWCB Annual Loan Obligation (1st Ten Years) $854,216 Annual Loan Obligation per annual kilowatt hours (28 M kWh/year) $0.03 Project Cost per Megawatt (7.5 MW Facility) $2,541,333