Hydro Turbine Pilot Project. ISSUE: San Xxxxxxx proposed to construct an in-conduit hydroelectric generating station as a pilot-project with NLine Energy, Inc. to demonstrate the viability of converting hydraulic pressure differential to clean renewable electrical energy. In its Application, San Xxxxxxx sought Commission approval of the project and authorization to file an Advice Letter to recover all reasonable, recorded costs of the pilot project, at that time estimated to total $1,813,000. San Gabriel revised this request in Supplemental Testimony following completion in August 2011 of the feasibility study performed by NLine Energy, Inc., which estimated a reduced total cost of $1,385,661. The hydroelectric station would be located at San Gabriel’s Sandhill Water Treatment Plant. Power generated at this facility would offset nearly all of the on-site power load from the Sandhill Plant, with excess energy exported to the power grid. XXX recommended that the Commission not authorize San Xxxxxxx to file an advice letter for the $1,385,661 associated with the project, based on its concerns as to the proposed size of the turbine/generator unit (162 kW) and the related assumption of 5,000 acre-feet per year (“AFY”) of purchased water from Inland Empire Utilities Agency (which would require a constant flow of 6.9 cubic feet per second (“cfs”) and a daily Sandhill Water Treatment Plant capacity usage of 4.46 MGD). In December 2011, San Gabriel received a 50-percent design report from NLine Energy, Inc. which superseded the previous feasibility study provided in San Gabriel’s Supplemental Testimony. The 50-percent design report included further design work and removed the previous assumption of 5,000 AFY of purchased water from Inland Empire Utilities Agency, and instead included a range of possible flows from approximately 2,000 to 5,000 AFY using two turbines operating part-time (6 to 9 months of the year). Upon receiving the 50-percent design report, San Xxxxxxx submitted a request for bids for a turbine/generator in-conduit hydroelectric project equipment package. The winning bid, from Canyon Hydro in Deming, Washington, included two turbines (95 kW and 215 kW) sized for instantaneous flow rates of 12 cfs combined or 4 cfs and 8 cfs independently. San Xxxxxxx provided DRA a revised cost estimate based on the 50-percent design report and a firm bid from Canyon Hydro, totaling $1,353,000, as shown in Table 2. A summary of the expected flow options with unit conversions from cfs to MGD an...
