2016-05-13 / Letters

Start with some basic math, please

To the editor:

Check this math and tell me if it’s wrong, please. The significance of a correct Wright- Pierce Report of Alternatives is undeniable and important as a guide through the Federal Energy Regulatory Commission (FERC) process over the next 46 years.

To compare alternatives the costs must be projected over the same period of time. Corrections were submitted to W-P. We must get a response before we understand the cost implications to ratepayers of the Kennebunk Light and Power District and taxpayers of Kennebunk.

According to KLPD records, the total KWH generated over 13 years between 2002 through 2014 was 23,400,000 KWH. This includes the 17 months Dane Perkins was out of commission not generating electricity, after the two 100-year floods in April 2006 and May of 2007.

Using the corrected average of 1,800,000 KWH/year generated between 2002 and 2014 and using the energy portion of the electric bill at $0.07898/KWH, the district avoids approximately $142,000/year in energy purchase costs.

Alternative #1a - Seek New License: Using the corrected average KWH/year, the value of generated electricity in 2016 would equal $6,884,571 for a 46-year New License period. The (low) 2016 cost for relicensing the hydropower and saving the dams is $8,570,000.

Alternative #1a: The resulting cost to the ratepayer or Net Present Worth in 2016 equals $(1,685,418).

Alternative #4 – Cease Operation, Surrender License and Remove Dams: To make an apples to apples comparison of this alternative to Alternative #1 the costs must be extended over a 46-year period. For the first six years the dams continue to generate $881,000 of electricity. Then ceasing to generate power, the district avoided $142,000/year totals $5,680,000 for the next 40 years. This must be added to the cost for removing the hydropower dams projected by W-P at $2,322,000, with a corrected cost for removing the dams over 46 years totaling $8,002,000.

Alternative #4: The corrected cost to the ratepayer or Net Present Worth in 2016 equals $(7,121,000).

There are costs in the W-P Draft Rev. 03-22-16 Appendix I spreadsheets such as inflation that are not included here. These numbers are the basics.

Let’s start with the basics and tell me if I am wrong. Please.

Albert Kolff
Kennebunk

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