Description
This paper provides a simple analysis of the cost of the proposed Susitna-Watana hydroelectric project from a ratepayer perspective, using data current as of June 2013. The Susitna Case 1 assumptions include a capital cost of 5.19 billion 2012 dollars, 100% debt financing at 5.0%, and an on-line date of 2024. Under these assumptions plus others described below, the production cost of Susitna power in 2024 would be 13 cents per kilowatt-hour (kWh) and the cost at a Railbelt customer’s meter would be about 18 cents per kWh.1 By comparison, if natural gas is available to electric utilities in year 2024 at a price of about $9.50 per million btu, and ignoring potential carbon taxes, then the production cost and retail cost of power from a new combined cycle gas turbine going online in 2024 would be about 11 cents and 16 cents per kWh, respectively.
Publication Date
4-17-2013
Keywords
costs, hydropower, energy, power
Recommended Citation
Colt, Steve, "Susitna-Watana Cost of Power Analysis" (2013). Reports. 241.
https://scholarworks.alaska.edu/uaa_iser_reports/241
Handle
http://hdl.handle.net/11122/11992