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Wyandotte Geothermal Utility Pamela Tierney, Energy Services Program Manager.

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Presentation on theme: "Wyandotte Geothermal Utility Pamela Tierney, Energy Services Program Manager."— Presentation transcript:

1 Wyandotte Geothermal Utility Pamela Tierney, Energy Services Program Manager

2 Overview of Wyandotte Municipal Services Provides Water, Electric, Cable, Internet & VOIP Water Utility Formed in 1889; Approx 10,000 customers; $4 Million Annual Revenue Electric Utility Formed in 1892; Approx 12,000 customers; $44 Million Annual Revenue Cable Utility Formed in 1981; Approx 8,500 customers; $10 Annual Revenue

3 Why Geothermal? Why Wyandotte? Overview / Market Status Just Get Started / Barriers to Adoption Options for Overcoming Barriers Pieces of the Process Lessons Learned Project Management

4 Why Did WMS Start a Geo-Utility? Is a dispatchable renewable energy source Improves system load factor – base load/peaks Energy Efficiency / Lowers customer’s energy costs Economic development

5 Improves System Load Factor

6 Helping Lower Customer’s Energy Costs Current Incentives in Wyandotte 30% Federal Tax Credit $1,000/ton Rebate from WMS 1.99% APR Unsecured Loans Available Other Programs Offered Home Energy Audits – Encourage Overall Home Performance; Insulation, Air Sealing, EE Equipment Suite of Other Rebates & Incentives

7 Lowers Customer’s Energy Costs Inputs - Wyandotte Home - Geothermal vs. Conventional Calculation for Tons = 2 Conventional - Annual CostsGeothermal Utility - Annual Costs Year ElecNat GasMaint Total Ops CostElecGUCust ChrgMaint Total Ops CostAnn SaveCum Save 1 $521$1,030$210$1,761$679$282$54$53$1,067$694 2$542$1,071$218$1,832$706$288$54$55$1,102$729$1,423 3 $564$1,114$227$1,905$734$293$54$57$1,138$767$2,190 4 $586$1,159$236$1,981$764$299$54$59$1,176$805$2,995 5 $610$1,205$246$2,060$794$305$54$61$1,215$846$3,841 6 $634$1,253$255$2,143$826$311$54$64$1,255$888$4,728 7 $659$1,303$266$2,228$859$318$54$66$1,297$932$5,660 8 $686$1,356$276$2,318$893$324$54$69$1,340$977$6,637 9 $713$1,410$287$2,410$929$330$54$72$1,385$1,025$7, $742$1,466$299$2,507$966$337$54$75$1,432$1,075$8, $771$1,525$311$2,607$1,005$344$54$78$1,480$1,127$9, $802$1,586$323$2,711$1,045$351$54$81$1,530$1,181$11, $834$1,649$336$2,820$1,087$358$54$84$1,582$1,237$12, $868$1,715$350$2,932$1,130$365$54$87$1,636$1,296$13, $902$1,784$364$3,050$1,175$372$54$91$1,692$1,357$14,935

8 Lowers Customer’s Energy Costs Gas Service Fee $ Gas Rate $ 1.06 CCF/Ton 0.12 Electric Rate $ per KwhGeo Htg COP 4 Customer Charge $ 4.50 Geothermal monthly rate $ per ton Annual hrs heating 2600 Cost $25,400 Annual hrs cooling 1450 Simple payback 21 years Inflation, elec, gas, maint 4.00% Rebates -$2,000 Inflation GU 2.00% 30% tax credit -$8, Hot water add for gas 0.35 Reduced cost $14, Conv A/C kW/Ton 1.35 Adjusted payback 14.5 years Geo AC kW/Ton 0.75 Possible Rebates and tax credits that may be available in Wyandotte

9 Economic Development HVAC Contractors / On-going Contractor Support Drilling contractors Pipe Manufacturers Equipment Distributors/Manufacturers Parts & Maintenance Suppliers Crane Operators – Commercial Installations WMS/City staff Purchases made locally in Wyandotte – lunch, supplies, etc.

10 Market & Status Many GSHP manufacturers IGSHPA Certification Conventional HVAC vs. Geothermal debate Engineering the project Quality drillers Making the economics work

11 WMS Wanted to Remove Barriers Space Constraints In Urban Areas Low Market Awareness Among Consumers / No sizzle The Need for Ground Loop Adds Cost, Complexity & Risk Codes for Proper Design/Installation of Ground Loop Requires Installation Specific Design/Load calculations & Engineering Ground Loop Repair & Maintenance Challenges

12 How the Geo-Utility was Structured Wyandotte Geo-Utility provides the ground loop 300 ft. vertical bores; one per home on average Ground loop located in public right of ways WMS assumes all ground loop risks Full shut off capacity City passed GSHP Ordinance Rates based on capacity (tonnage) of systems installed Customer responsible for internal system /connection

13 Rate Structure & Customer Options Residential Rate Wyandotte drills & owns bore field $26.75 per ton + $4.50 monthly customer charge Maintenance Rate Property owner buys down the rate by paying the well costs; wells located in public right of way $11.75 per ton + $4.50 monthly customer charge Property owner installs loop field on their property No involvement by WMS; no costs paid to WMS

14 Revenue Generation Potential Bore field (Well) installation permit fee $200 for first well $25 for each additional Potential Tax Revenue with Public Ownership Capitalized system; depreciation taken 30 year average payback on bore field infrastructure Geothermal Electric Rates – under review Renewable Energy Credits (RECs) potential

15 Pieces of the Project/ Process to Become a Customer Customer - Internal Design, GSHP & Horizontal Connection Decides which rate option works for them Signs a Service Agreement Obtains system quotes and hires a contractor to install GSHP and horizontal connection – IGSHPA certified recommended WMS – Bore field including engineering/design Locate well on plot plan Contract driller Driller will get permit from City and call Miss DIG Complete bore field and install service valves City – inspects internal and external systems

16 What Wyandotte Installations Look Like

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18 Drilling Experience Urban Area Average lot width varies 40 ft. to 70 ft. Landscaped yards Trees, sidewalks, driveways, curbs, porches, etc. Artesian Wells Rotten egg odors/sulphur Fractured Limestone Consumes water and grout

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21 Drilling Experience – Not Always Pretty

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23 Current Status 56 installations already in the planning/design stage or completed 25 new residential installations 20 retrofit residential installations 4 commercial installations 2 new multi-family developments (20 units) 4 Private home owners subscribed; 1 off grid 50 bore fields installed; 41 individual systems; 109 ton total capacity 31 Installations Complete & In Service

24 Lessons Learned New process – customers very dependent on our knowledge and help Continuous education process / overcoming misinformation Avoid strip heaters where possible Re-teaching old habits – set back temperatures, filters Cost analysis important – did they have A/C? Fuel type? Rate structure – what is too high? Championing total home performance prior to installing Geothermal or other renewable – insulation, air sealing, etc. Necessity of shut off ability

25 Lessons Learned Project Management important – try and cover unforeseen events – extra costs for grout, running water, odor, water sources, sewer/runoff provisions, safety, customer expectations… Big difference in GSHP contractors Does the HVAC contractor understand Geo units? Single vs. 2 stage units? Floor drains/condensate pumps? Fresh air intake into return air/motorized dampers? Air balancing/duct size

26 Lessons Learned Big difference in bore field drillers Drillers competent to different depths Valve boxes - Compression fitting vs. poly fused valves Cost overruns on grout/drilling if fractures are hit Type of grout Glycol % Pressure testing – leaving valve boxes exposed; coordinating efforts with GSHP contractor Pinched pipes or damage to well or compression fittings on valves

27 Lessons Learned Trenching vs. directional bore; piping thru the side wall of structure vs. under the footing New construction – Coordinate drilling once construction nears completion; GC lays horizontal piping GSHP should be installed in a clean area; Existing homes – directional boring; careful under footing; piping diagrams often incomplete or depth incorrect for sewer lines, etc.

28 Q&A? Thank you Pamela Tierney


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