OpalcoGram #

OPALCOGRAM 107
1/20/94

Doug Bechtel

Several months ago, I talked about the Distributed Utility Study that Bonneville Power Administration was doing for OPALCO. The theory of the study is that a large number of small generation units might be a more cost-effective solution than one big power plant or buying power from BPA.

I have seen a preliminary of the draft final report, and the study basically found that, as expensive as we think it is, power from Bonneville is relatively inexpensive when compared to the cost of building our own generation facilities. I don’t think the study adequately addresses all of the potential options.

The study did have some interesting results. First and foremost, the study found that by installing load management equipment to turn off water heaters or electric heat for a few minutes during our peak load period, we would significantly reduce the amount we pay Bonneville. This might also help defer major investments in submarine cables and transmission lines.

The study also suggested that there may be a role for large wind turbines to generate electricity. I am not convinced that San Juan County has the kind of wind needed to make the turbines cost effective, but we are going to install some anemometers to update the wind information that was gathered several years ago. When I compare San Juan County to those places in California with lots of windmills, I don’t think we have the same kind of wind, but at the same time, I don’t want to leave that stone unturned in case there is good wind.

I have also come to the conclusion that OPALCO needs to do some work on its own. I think that there are many places in San Juan County where we can generate small amounts of power on a renewable basis. We have been talking about several of these within OPALCO for the last several years. It is just hard to find the time and money to investigate these small projects to see if they really do have a role in OPALCO’s energy future. I recently read a study by the Sacramento Municipal Utility District (SMUD) which provided an outstanding road map for that utility to move into the future. SMUD is involved in photovoltaic, fuel cells, wind, geothermal and so on. Their 1993 budget for these projects was over $10 million - more money than OPALCO makes in an entire year. I don’t think our program has to be as big or as sophisticated as the SMUD program. I do think we need to identify and build something during 1994 that will generate power on a renewal basis and at a reasonable cost. I think once we get past the first step, succeeding projects will be easier.

If you have any ideas on small (inexpensive) projects that would generate energy, drop me a note and let me know. I am certain that there is something out there that is just right for OPALCO. Our job is to find it and get it done. It will be interesting to see what ideas our members can come up with.

Doug Bechtel


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