Common use of Hydro Turbine Pilot Project Clause in Contracts

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 In December 2011, San Gabriel received a 50-percent design report from NLine Energy, Inc. which superseded the previous feasibility study provided in San Gabriel’s Supplemental Testimony.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 and annual acre-feet is provided in Table 3. TABLE 2 – HYDRO TURBINE PROJECT ENGINEER’S ESTIMATE OF PROBABLE COST (December, 2011) Mobilization, Bonds, Insurance 1 LS $20,000 $20,000 Traffic Control 1 LS $1,200 $1,200 Site Grading 1 LS $2,500 $2,500 5 foot Retaining Wall 1 LS $12,000 $12,000 Subtotal = $35,700 24" Fittings 6 EA $1,200 $7,200 24" Cement Lined & Fusion Epoxy coated Steel Pipe 15 LF $295 $4,425 24" Intake and Discharge Manifolds 2 LS $15,000 $30,000 16" fittings & couplings 10 EA $950 $9,500 16" Cement Lined & Fusion Epoxy coated Steel Pipe 30 LF $210 $6,300 24" isolation valve 2 EA $8,000 $16,000 Misc gauges, minor piping 1 LS $9,500 $9,500 1500 gallon Surge Tank 1 LS $12,000 $12,000 Subtotal = $94,925 Canyon Hydro (Deming, WA): 4 cfs and 8 cfs units (95 kW and 215 kW) delivered 1 LS $262,107 $262,107 Turbine/Generators/ Swithcgear/controls Installation 1 LS $75,000 $75,000 Start up & Training Services 5 days $2,500 $11,400 SalesTax $5,565 Subtotal = $348,507 Electrical Controls & SCADA 1 LS $75,000 $75,000 Site electrical 1 LS $45,000 $45,000 SCE tie-in costs 1 LS $75,000 $75,000 Subtotal = $195,000 Metal 625 SF $80 $50,000 Foundation structure (concrete) 18 CY $750 $13,500 HVAC 1 LS $8,500 $8,500 Roofing, doors & Misc supports 1 LS $25,000 $25,000 Subtotal = $97,000 15% Construction Contingency Costs (excl. Canyon Hydro Equipment and Sales Tax) = $75,519 Engineering LS $88,342 Project/Const Mgmt LS $88,342 Bonds & Insurance AC $30,916 Admin / Legal LS $26,511 Permitting LS $14,039 Subtotal = $248,150 15% Contingency $37,222 Developer Fee $215,080 Current Design (December 2011) based on 50-percent specifications and Canyon Hydro bid: In Operation for 6 months / year In Operation for 9 months / year Turbine/ Generator units in Operation Instantaneous Flow Rate (cfs) Instantaneous Flow Rate (MGD) Annual Acre-Feet (AFY) Annual Acre-Feet (AFY) 95 kW unit only 4 cfs 2.59 MGD 1,448 AFY 2,172 AFY 215 kW unit only 8 cfs 5.17 MGD 2,896 AFY 4,344 AFY Both units 12 cfs 7.76 MGD 4,344 AFY 6,516 AFY 162 kW unit 6.9 cfs 4.46 MGD 4,995 AFY (In Operation for 12 months / year) RESOLUTION: DRA agrees that San Xxxxxxx should be authorized to proceed with the proposed Hydro Turbine Pilot Project as a Tier 3 Advice Letter project at a forecasted cost of $1,353,000 with the expectation that San Xxxxxxx will also diligently pursue a U.S. Treasury Department grant and the Commission’s Self-Generation Incentive Program (“SGIP”) in an effort to reduce this project’s capital cost. The U.S. Treasury Department grant program under Section 1603 of the American Recovery and Reinvestment Act of 2009, if received, is expected to fund approximately $405,900 based on 30% of the final capital costs of the project currently estimated to be $1,353,000. In addition, the Commission’s SGIP grant, if received, is expected to offset the project’s capital cost by an additional $193,750 in year one of operation and $48,438 annually thereafter over the remaining four years of the program. The SGIP program is a five-year payment plan and calculated based on the name- plate generation capacity of the turbines multiplied by $1.25 per Watt. The name- plate capacity of this project is 310 kW, resulting in a total grant of $387,500, with 50 percent of the amount disbursed in the first year of operation and the remaining 50 percent disbursed evenly over the next four years. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Hydro Turbine Pilot Project (2012) $1,385,000 (Advice Letter) $1,385,000 (Advice Letter) $0 $1,385,000 $1,353,000 (Advice Letter) REFERENCES: Exhibit SG-5 (XxXxxxxx), pp. 27-33; Exhibit SG-15 (XxXxxxxx); Exhibit DRA-1 (Xxxxxxxxx), pp. 7-52 to 7-57; Exhibit SG-18 (XxXxxxxx), pp. 18-24.

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 and annual acre-feet is provided in Table 3. TABLE 2 – HYDRO TURBINE PROJECT ENGINEER’S ESTIMATE OF PROBABLE COST (December, 2011) Mobilization, Bonds, Insurance 1 LS $20,000 $20,000 Traffic Control 1 LS $1,200 $1,200 Site Grading 1 LS $2,500 $2,500 5 foot Retaining Wall 1 LS $12,000 $12,000 Subtotal = $35,700 24" Fittings 6 EA $1,200 $7,200 24" Cement Lined & Fusion Epoxy coated Steel Pipe 15 LF $295 $4,425 24" Intake and Discharge Manifolds 2 LS $15,000 $30,000 16" fittings & couplings 10 EA $950 $9,500 16" Cement Lined & Fusion Epoxy coated Steel Pipe 30 LF $210 $6,300 24" isolation valve 2 EA $8,000 $16,000 Misc gauges, minor piping 1 LS $9,500 $9,500 1500 gallon Surge Tank 1 LS $12,000 $12,000 Subtotal = $94,925 Canyon Hydro (Deming, WA): 4 cfs and 8 cfs units (95 kW and 215 kW) delivered 1 LS $262,107 $262,107 Turbine/Generators/ Swithcgear/controls Installation 1 LS $75,000 $75,000 Start up & Training Services 5 days $2,500 $11,400 SalesTax $5,565 Subtotal = $348,507 Electrical Controls & SCADA 1 LS $75,000 $75,000 Site electrical 1 LS $45,000 $45,000 SCE tie-in costs 1 LS $75,000 $75,000 Subtotal = $195,000 Metal 625 SF $80 $50,000 Foundation structure (concrete) 18 CY $750 $13,500 HVAC 1 LS $8,500 $8,500 Roofing, doors & Misc supports 1 LS $25,000 $25,000 Subtotal = $97,000 15% Construction Contingency Costs (excl. Canyon Hydro Equipment and Sales Tax) = $75,519 Engineering LS $88,342 Project/Const Mgmt LS $88,342 Bonds & Insurance AC $30,916 Admin / Legal LS $26,511 Permitting LS $14,039 Subtotal = $248,150 15% Contingency $37,222 Developer Fee $215,080 Current Design (December 2011) based on 50-percent specifications and Canyon Hydro bid: In Operation for 6 months / year In Operation for 9 months / year Turbine/ Generator units in Operation Instantaneous Flow Rate (cfs) Instantaneous Flow Rate (MGD) Annual Acre-Feet (AFY) Annual Acre-Feet (AFY) 95 kW unit only 4 cfs 2.59 MGD 1,448 AFY 2,172 AFY 215 kW unit only 8 cfs 5.17 MGD 2,896 AFY 4,344 AFY Both units 12 cfs 7.76 MGD 4,344 AFY 6,516 AFY 162 kW unit 6.9 cfs 4.46 MGD 4,995 AFY (In Operation for 12 months / year) RESOLUTION: DRA agrees that San Xxxxxxx should be authorized to proceed with the proposed Hydro Turbine Pilot Project as a Tier 3 Advice Letter project at a forecasted cost of $1,353,000 with the expectation that San Xxxxxxx will also diligently pursue a U.S. Treasury Department grant and the Commission’s Self-Generation Incentive Program (“SGIP”) in an effort to reduce this project’s capital cost. The U.S. Treasury Department grant program under Section 1603 of the American Recovery and Reinvestment Act of 2009, if received, is expected to fund approximately $405,900 based on 30% of the final capital costs of the project currently estimated to be $1,353,000. In addition, the Commission’s SGIP grant, if received, is expected to offset the project’s capital cost by an additional $193,750 in year one of operation and $48,438 annually thereafter over the remaining four years of the program. The SGIP program is a five-year payment plan and calculated based on the name- plate generation capacity of the turbines multiplied by $1.25 per Watt. The name- plate capacity of this project is 310 kW, resulting in a total grant of $387,500, with 50 percent of the amount disbursed in the first year of operation and the remaining 50 percent disbursed evenly over the next four years. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Hydro Turbine Pilot Project (2012) $1,385,000 (Advice Letter) $1,385,000 (Advice Letter) $0 $1,385,000 $1,353,000 (Advice Letter) REFERENCES: Exhibit SG-5 (XxXxxxxx), pp. 27-33; Exhibit SG-15 (XxXxxxxx); Exhibit DRA-1 (XxxxxxxxxRasmussen), pp. 7-52 to 7-57; Exhibit SG-18 (XxXxxxxx), pp. 18-24.

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 Gabriel 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 and annual acre-feet is provided in Table 3. TABLE 2 – HYDRO TURBINE PROJECT ENGINEER’S ESTIMATE OF PROBABLE COST (December, 2011) Element Description Quantity Units Unit Price (installed) Total Price (installed) 7Mobilization & Site work Mobilization, Bonds, Insurance 1 LS $20,000 $20,000 Traffic Control 1 LS $1,200 $1,200 Site Grading 1 LS $2,500 $2,500 5 foot Retaining Wall 1 LS $12,000 $12,000 Subtotal = $35,700 Pipe, Valves , tanks and Fittings 24" Fittings 6 EA $1,200 $7,200 24" Cement Lined & Fusion Epoxy coated Steel Pipe 15 LF $295 $4,425 24" Intake and Discharge Manifolds 2 LS $15,000 $30,000 16" fittings & couplings 10 EA $950 $9,500 16" Cement Lined & Fusion Epoxy coated Steel Pipe 30 LF $210 $6,300 24" isolation valve 2 EA $8,000 $16,000 Misc gauges, minor piping 1 LS $9,500 $9,500 1500 gallon Surge Tank 1 LS $12,000 $12,000 Subtotal = $94,925 Turbine/Generators Canyon Hydro (Deming, WA): 4 cfs and 8 cfs units (95 kW and 215 kW) delivered 1 LS $262,107 $262,107 Turbine/Generators/ Swithcgear/controls Installation 1 LS $75,000 $75,000 Start up & Training Services 5 days $2,500 $11,400 SalesTax $5,565 Subtotal = $348,507 Element Description Quantity Units Unit Price (installed) Total Price (installed) Electrical Equipment & Tie-in to Grid Electrical Controls & SCADA 1 LS $75,000 $75,000 Site electrical 1 LS $45,000 $45,000 SCE tie-in costs 1 LS $75,000 $75,000 Subtotal = $195,000 Building and Misc Structural Metal 625 SF $80 $50,000 Foundation structure (concrete) 18 CY $750 $13,500 HVAC 1 LS $8,500 $8,500 Roofing, doors & Misc supports 1 LS $25,000 $25,000 Subtotal = $97,000 Materials/Installation Subtotal = $771,132 15% Construction Contingency Costs (excl. Canyon Hydro Equipment and Sales Tax) = $75,519 TOTAL CONSTRUCTION COST = $847,000 Non-Construction Costs Engineering LS $88,342 Project/Const Mgmt LS $88,342 Bonds & Insurance AC $30,916 Admin / Legal LS $26,511 Permitting LS $14,039 Subtotal = $248,150 15% Contingency $37,222 Developer Fee $215,080 Grand Total $1,353,000 Current Design (December 2011) based on 50-percent specifications and Canyon Hydro bid: In Operation for 6 months / year In Operation for 9 months / year Turbine/ Generator units in Operation Instantaneous Flow Rate (cfs) Instantaneous Flow Rate (MGD) Annual Acre-Feet (AFY) Annual Acre-Feet (AFY) 95 kW unit only 4 cfs 2.59 MGD 1,448 AFY 2,172 AFY 215 kW unit only 8 cfs 5.17 MGD 2,896 AFY 4,344 AFY Both units 12 cfs 7.76 MGD 4,344 AFY 6,516 AFY Previous Assumption in San Gabriel’s Application which was at issue in DRA’s Testimony and is no longer being considered by San Xxxxxxx: 162 kW unit 6.9 cfs 4.46 MGD 4,995 AFY (In Operation for 12 months / year) RESOLUTION: DRA agrees that San Xxxxxxx should be authorized to proceed with the proposed Hydro Turbine Pilot Project as a Tier 3 Advice Letter project at a forecasted cost of $1,353,000 with the expectation that San Xxxxxxx will also diligently pursue a U.S. Treasury Department grant and the Commission’s Self-Generation Incentive Program (“SGIP”) in an effort to reduce this project’s capital cost. The U.S. Treasury Department grant program under Section 1603 of the American Recovery and Reinvestment Act of 2009, if received, is expected to fund approximately $405,900 based on 30% of the final capital costs of the project currently estimated to be $1,353,000. In addition, the Commission’s SGIP grant, if received, is expected to offset the project’s capital cost by an additional $193,750 in year one of operation and $48,438 annually thereafter over the remaining four years of the program. The SGIP program is a five-year payment plan and calculated based on the name- plate generation capacity of the turbines multiplied by $1.25 per Watt. The name- plate capacity of this project is 310 kW, resulting in a total grant of $387,500, with 50 percent of the amount disbursed in the first year of operation and the remaining 50 percent disbursed evenly over the next four years. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Hydro Turbine Pilot Project (2012) $1,385,000 (Advice Letter) $1,385,000 (Advice Letter) $0 $1,385,000 $1,353,000 (Advice Letter) REFERENCES: Exhibit SG-5 (XxXxxxxx), pp. 27-33; Exhibit SG-15 (XxXxxxxx); Exhibit DRA-1 (Xxxxxxxxx), pp. 7-52 to 7-57; Exhibit SG-18 (XxXxxxxx), pp. 18-24. I. WORKING CASH ALLOWANCE ISSUE: Xxx Xxxxxxx’x forecast for Working Cash was $3,284,225 for Test Year 2012-2013 and $3,626,467 for Test Year 2013-2014, based on the same methodology that San Xxxxxxx has used in past rate cases in accordance with Standard Practice U-16. (This forecast did not include San Gabriel’s separate calculation of Operational Cash Requirements totaling $28,000, which DRA did not dispute.) DRA’s Working Cash forecast was $718,690 for both test years, based on a five-year average. The City’s forecast was $1,670,379, which was calculated by dividing the net lead-lag days in the test year by 365 days and multiplying the result by the test year expenses. RESOLUTION: San Gabriel and DRA agree that an estimate of Working Cash of $1,600,000 for the Test Year and Escalation Years would be reasonable in the context of a broader resolution of capital investment forecasts. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Working Cash Allowance – TY 2012-2013 $3,284,225 $3,284,225 $718,690 $2,565,535 $1,600,000 REFERENCES: Exhibit SG-3 (Batt), pp. 7-12; Exhibit DRA-1 (Merida), pp. 9-1 to 9- 2; Exhibit CF-1 (Ramas), pp. 32-36; Exhibit SG-16 (Batt), pp. 1-3; Exhibit SG-28 (Lead/Lag Workpapers).

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 Xxx Xxxxxxx 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 Xxx Xxxxxxx 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 and annual acre-feet is provided in Table 3. TABLE 2 – HYDRO TURBINE PROJECT ENGINEER’S ESTIMATE OF PROBABLE COST (December, 2011) Mobilization, Bonds, Insurance 1 LS $20,000 $20,000 Traffic Control 1 LS $1,200 $1,200 Site Grading 1 LS $2,500 $2,500 5 foot Retaining Wall 1 LS $12,000 $12,000 Subtotal = $35,700 24" Fittings 6 EA $1,200 $7,200 24" Cement Lined & Fusion Epoxy coated Steel Pipe 15 LF $295 $4,425 24" Intake and Discharge Manifolds 2 LS $15,000 $30,000 16" fittings & couplings 10 EA $950 $9,500 16" Cement Lined & Fusion Epoxy coated Steel Pipe 30 LF $210 $6,300 24" isolation valve 2 EA $8,000 $16,000 Misc gauges, minor piping 1 LS $9,500 $9,500 1500 gallon Surge Tank 1 LS $12,000 $12,000 Subtotal = $94,925 Canyon Hydro (DemingXxxxxx, WA): 4 cfs and 8 cfs units (95 kW and 215 kW) delivered 1 LS $262,107 $262,107 Turbine/Generators/ Swithcgear/controls Installation 1 LS $75,000 $75,000 Start up & Training Services 5 days $2,500 $11,400 SalesTax $5,565 Subtotal = $348,507 Electrical Controls & SCADA 1 LS $75,000 $75,000 Site electrical 1 LS $45,000 $45,000 SCE tie-in costs 1 LS $75,000 $75,000 Subtotal = $195,000 Metal 625 SF $80 $50,000 Foundation structure (concrete) 18 CY $750 $13,500 HVAC 1 LS $8,500 $8,500 Roofing, doors & Misc supports 1 LS $25,000 $25,000 Subtotal = $97,000 15% Construction Contingency Costs (excl. Canyon Hydro Equipment and Sales Tax) = $75,519 Engineering LS $88,342 Project/Const Mgmt LS $88,342 Bonds & Insurance AC $30,916 Admin / Legal LS $26,511 Permitting LS $14,039 Subtotal = $248,150 15% Contingency $37,222 Developer Fee $215,080 Current Design (December 2011) based on 50-percent specifications and Canyon Hydro bid: In Operation for 6 months / year In Operation for 9 months / year Turbine/ Generator units in Operation Instantaneous Flow Rate (cfs) Instantaneous Flow Rate (MGD) Annual Acre-Feet (AFY) Annual Acre-Feet (AFY) 95 kW unit only 4 cfs 2.59 MGD 1,448 AFY 2,172 AFY 215 kW unit only 8 cfs 5.17 MGD 2,896 AFY 4,344 AFY Both units 12 cfs 7.76 MGD 4,344 AFY 6,516 AFY 162 kW unit 6.9 cfs 4.46 MGD 4,995 AFY (In Operation for 12 months / year) RESOLUTION: DRA agrees that San Xxxxxxx should be authorized to proceed with the proposed Hydro Turbine Pilot Project as a Tier 3 Advice Letter project at a forecasted cost of $1,353,000 with the expectation that San Xxxxxxx will also diligently pursue a U.S. Treasury Department grant and the Commission’s Self-Generation Incentive Program (“SGIP”) in an effort to reduce this project’s capital cost. The U.S. Treasury Department grant program under Section 1603 of the American Recovery and Reinvestment Act of 2009, if received, is expected to fund approximately $405,900 based on 30% of the final capital costs of the project currently estimated to be $1,353,000. In addition, the Commission’s SGIP grant, if received, is expected to offset the project’s capital cost by an additional $193,750 in year one of operation and $48,438 annually thereafter over the remaining four years of the program. The SGIP program is a five-year payment plan and calculated based on the name- plate generation capacity of the turbines multiplied by $1.25 per Watt. The name- plate capacity of this project is 310 kW, resulting in a total grant of $387,500, with 50 percent of the amount disbursed in the first year of operation and the remaining 50 percent disbursed evenly over the next four years. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Hydro Turbine Pilot Project (2012) $1,385,000 (Advice Letter) $1,385,000 (Advice Letter) $0 $1,385,000 $1,353,000 (Advice Letter) REFERENCES: Exhibit SG-5 (XxXxxxxx), pp. 27-33; Exhibit SG-15 (XxXxxxxx); Exhibit DRA-1 (Xxxxxxxxx), pp. 7-52 to 7-57; Exhibit SG-18 (XxXxxxxx), pp. 18-24.