PUB00037

• Year: 1988
• Title: Colorado Joint Planning Study Economic Potential of Pumped Storage
• CWCB Section: Interstate & Federal
• Author: Colorado Water Resources and Power Development Authority
• Description: Assessment of whether pumped storage facilities are economically attractive to Colorado utilities
• Publications - Doc Type: Water Resource Studies

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evaluation period and current interest rates as they relate to price inflation, and
provide for replacement of facilities as needed to keep the system operating. The
least-cost alternative for each. scenario for each entity modeled as a primary system
was determined using a present-worth analysis of future revenue requirements.
These results are discussed in Chapter 3.

2.4 Optimization With Pumped Storage

Once the base case studies were completed, alternative cases were run for each
utility. These cases allowed the model to select generic pumped storage unit(s) as an
alternative generation resource. The objective of the study was to provide a definitive
assessment of the economic potential of pumped storage development in the state
using a "representative" pumped storage plant. Therefore, no specific pumped
storage unit was analyzed. Instead, using industry data, the Electric Power Research
Institute (EPRI) Technical Assessment Guide, and data from the Bureau of
Reclamation files, characteristics of a generic pumped storage unit for the Colorado
area were assumed. These characteristics are listed in Table 2-5.

Table 2.5

PumDed Storace Unit Assumptions

Unit Size(1)
Storage Size(1)
Storage Efficiency(2)
Capital Cost (3)

350 MW
10 hours
72%
$1 ,000/kW
(1987)

$3.4/kW-yr.
3.4 mills/kWh

Operation and Maintenance(1)
Fixed
Variable
Unit Availability(1)
Planned (Maintenance)
Unplanned (Forced Outage)

Unit Life(1)

5.3%
5.0%

50 years

(1) EPRI Technical Assessment Guide, Exhibit B.6-3B Conventional Pumped Hydro, 1986, p.
B-121.
(2) Technical Steering Committee Decision.
(3) The $1,000 is used as a starting cost only; the actual cost at which pumped storage begins
to replace other generating atternatives is calculated after the EGEAS runs. This cost could
be greater or less than a capttal cost of $1,000/kW. Capttal costs would include direct
construction costs, transmission costs, engineering, licensing, and administrative costs,
contingencies, and interest during construction.

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