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<br />~ <br /> <br />~. <br /> <br />APPENDIX C <br />CITY OF LOVELAND HYDROELECTRIC PLANT <br /> <br />~ <br /> <br />ECONOMIC ANALYSIS <br />Operating Costs <br />Per city records, cost of operating and maintaining powerplant and dam were $29,596 <br />in 1975. Escalating to 1979 at 6%/yr., = 1.24 x 29,596 = $36,700/yr. - not considering <br />reduction due to unattended operation. USSR data indicates about 50% reduction for <br />unattended operation giving 36,700/2 = $19,000/yr. <br /> <br />Replacement <br /> <br />6Y,% interest rate - 40 yr. life <br /> <br />i\ti <br /> <br />N = $1 x <br />II + rln-1 <br /> <br />r <br /> <br />1 6.5 <br />- x <br />- (1,065)40_1 <br /> <br />6065 <br />12.416-1 <br /> <br />.00569 <br /> <br />--X; <br /> <br />Assume capital cost would be $3,000,000 <br /> <br />I nterest on investment - (grant.not applicable) <br /> <br />$ <br /> <br />o <br /> <br />Annual installment to replace - 6.5%, 40 yr. life <br />= 3,000,000 x .00569 = <br /> <br />17,100 <br /> <br />Annual operating cost - unattended <br /> <br />19,000 <br /> <br />Total annual cost <br /> <br />36,100 <br /> <br />~ <br />r. <br />L <br /> <br />r <br /> <br />Cost of alternate purchased power - <br />6,190,000 kwh. x 22.9 mills/kwh. = <br /> <br />141,750 <br /> <br /> <br />Annual surplus <br /> <br />$ 105,650 <br /> <br />.,-, <br /> <br />- <br /> <br />C.1 <br />