Action Strategy

Goal: OC = Organizational Capacity

Strategy OC1 Low-Head Hydropower Turbine in St Anthony

Background/Concept: Rocky Mountain Power has not generated electricity from the St. Anthony diversion for three years, since the turbine shaft failed. The utility has a FERC license to operate this facility. The turbine has a 500kw nameplate rating and runs with a high load factor. The FERC license requires that certain things are done to mitigate environmental issues, e.g. ditches are patrolled to rescue stranded fish when irrigation ditch diversions halt in the fall. In addition the diversion canal is owned by the Egin Bench Canal Company. The utility would need to rebuild about 120 feet of wooden flume before re-operating the turbine. Replacing the trash rack with new plastic ones may help with frazil ice problems. The idea is for Fremont County to obtain title from the utility, finance the re-development of the facility, and contract to sell the power locally. This would make use of a rare renewable energy source, and provide cash flow to finance other community development projects for years to come.

Here’s a rough idea of the economics: A 500ks turbine operating 75% of the time at full capacity would generate (500kw x 8,760 hr/yr x 75%) 3,251,250 kwh, The current Idaho Public Utilities Commission rate for PURPA Qualified Facilities (which this turbine is) is 6.274 cents/kwh. This generates $203,100 per year. One could sell the green tags for this renewable energy to an interested buyer for about one-half cent per kwh, generating another $16,250. Thus. There is roughly $219,450 of cash flow each year to cover loan repayment on a facility improvement loan. At 4.5%, this could provide payments on a loan as high as $4.5 million. If grants can be obtained to cover part of the facility improvement, so much the better. It may also be possible to increase power generation with newer technology turbines. In any case, the county would end up with a valuable resource generating cash flow to finance other economic development projects or programs.

Potential Partners:  Fremont County – may have the best standing to apply. It has an engineer on staff who could help develop the proposal and oversee the projects construction and operation. The utility has an interest in building a working relationship with the county, as it has other activities in the county.  USDA-RD – Hydropower does not qualify under Sect. 9006 Rural Energy Guaranteed Loans, but under its Community Facility program, it may be eligible for low interest loans or partial grants.  Idaho Department of Water Resources and US Dept of Energy has a Clean Renewable Energy Bond program that offers financing to sustainable energy projects like this.  Rocky Mountain Power Blue Skies Program – The utility occasionally makes grants to entities within its service area that are working on sustainable energy projects. Grants up to $50,000 are available on a competitive granting basis. This project would be eligible.  The Development Company (ECIPDA), could potentially arrange financing through its revolving loan fund or elsewhere.  Fall River Electric Cooperative could be a potential partner or buyer of the power depending on Rocky Mountain’s preferences. Potential Resources: Roger Raeburn is the Rocky Mountain Power engineer (503.813.6667, [email protected] ) who is reviewing the St. Anthony turbine. He has made his analysis and has forwarded it to the corporate decisionmakers. If they agree to dispose of the unit (as I believe he has recommended), then Rocky Mountain Power would entertain proposals for others to acquire it. If the County signs a confidentiality agreement, they would share their data on the turbine, its generating history, and the FERC licensing agreements. Egin Bench Canal Co. may also be interested. Concerns:

Ranking Score Plausibility (To what degree will a success fix the problem? i.e. size of 5 community reward) Score 1-10 Feasibility (Can we access the resources to succeed? i.e. probability of 6 success) Score 1-10 Community Readiness (Score 1-5; 1=Not Ready, 5= Very Ready) 4 Total Score = Plausibility x Feasibility x Community Readiness 120 Action Steps a. Push roger Raeburn and Rocky Mt Power for a decision, and keep On-going articulating the County's interest in the project. b. If a go, Marla Vik can contract with an appropriate engineer to analyze Not Done turbine replacement and project costs c. Assuming feasibility, build ownership, management, and marketing Not Done partnerships with USDA-RD, IDWR, Fall River Electric, etc d. Not Done e. Not Done