Minutes 01/09/1979 - Laserfiche WebLink

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.72 TUESDAY JANUARY 9, 1979 OBJECTIVE The Select Committee's objective was to: Review and evaluate R. W. Beck & Associates recommendation to install Ridgeway dam and facilities. Determine data and assumption sensitivity to changes. Recommend action to Council based on evaluation. R. W. BECK APPRAISAL REPORT, SUMMARIZED It is feasible to build a 110 foot high local material, zoned earth and rockfill embankment on the Smith River 12.5 river miles southeast of Martinsville with a powerhouse having two 8,500 kw turbine-generators and one 250 kw unit. Estimated dependable capacity is 16,560 kw at the load center with an average annual capability of 30,508,000 kwh. The 2,400 acre reservoir extends upstream 13.5 miles and would have a maximum drawdown of 11-15 feet, during one month of the 37 year period studied. (EXHIBITS 1 - 11). The Smith River water flow data from 1939 through 1977 indicates total annual energy production would vary from a low of 18.6 gwh to a high of 51.1 gwh. (EXHIBITS 3 & 6). Ridgeway would operate by computer control as a peak shaving installation having an average operating time of about 1775 of the 8760 hours per year. (EXHIBITS 12 & 13). Electric demand increases 3.8% per year and energy usage 4.5%. (EXHIBIT 14). Facility financing is assumed at 50-year, 6.25% bonds with a capital need of $39,762,000 for a $36,407,000 investment. (EXHIBIT 15). Purchased power charges, offset by Ridgeway operation, would have a demand-energy ratio of 2.7 to 1. (EXHIBIT 16). Demand and energy charges increase 127% by 1985, and an additional 99% by 1995. (EXHIBIT 17). The project will generate a surplus of $1,000 in 1986, the first year after startup, and $1,870,000 in 1995 for a ten year total of $7,930,000 savings to Martinsville vs. purchased cost of the same electrical requirement. Inflation is assumed to continue at an average annual rate of 7%. (EXHIBIT 18). In 1985 Ridgeway would produce 35% of the peak and 14% of average annual energy needs. SELECT COMMITTEE EVALUATION The Committee evaluation is made on the following premise: If the Ridgeway project was in place and paid for, similar to the existing ~furtinsville Hydro Plant, no one would recommend its removal. Therefore, can this facility be installed without financial penalty to Martinsville citizens for their own and others benefit? The rationale for our conclusion is summarized as follows, using Sections III - VIII of the Beck Report: