Cost of New Sources of Power
According to the Energy Information Administration, a new hydroelectric power source is
one of the most affordable new sources of power. The chart below shows the national average initial cost per kWh to bring on a new source of power.
Hydroelectric Saves Aspen Money Over Time
The proposed Castle Creek Energy Center would provide a long-term financial benefit to the community through a time tested technology. What's more, the CCEC will be a community asset - fully owned by the community after debt retirement. Thanks to past City Council foresight, the Ruedi hydroelectric facility saves Aspen Electric $627,000 per year compared to the purchase of equivalent quantities from the City's outside power provider, the Municipal Energy Association of Nebraska (MEAN).
Project Budget
Many of the expenses associated with the CCEC were necessary in order to construct an emergency drainline for the water plant's Thomas Reservoir. The remaining project expenses cover the structure to house the turbine, the tailrace, and the FERC licensing process. The tailrace is required to complete the emergency drain line regardless of whether energy production occurs (visit the Infrastructure page to see why).
Castle Creek Energy Center vs. Purchased Power (Projected)
The graph below shows that over the 75-year life of the CCEC, the average cost savings to Aspen Electric will be $504,900 per year. The red line indicates the price of purchased power (with a projected increase of 2% per year), and the blue line indicates the price of energy from CCEC (taking into account the project's "slow start", debt service, and 2% per year operational cost inflation post debt retirement).
The purple and green lines represent the 75-year cost averages of purchased power (purple) and CCEC power (green).
Rate of Return
Review these 9 Financial Rate of Return Scenarios for the Castle Creek Energy Center.
Contact
For questions and comments, please send us an email at ccec@ci.aspen.co.us or call 970-920-5110.