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During the meetings with representatives of both power companies the topics discussed included the options and probable costs, and the rates for the generated power. Surprise Valley Electric was somewhat disinterested in the project and could offer only a rate of 0.03$ per kWh. They are currently servicing the Oregon Department of Corrections Facility, and indicated that if some cost support from the State of Oregon could be obtained possible higher power rates could be obtained. The Town’s proposed yearly generation output of approximately 1,000 megawatt hours is roughly the amount the correctional facility uses in a year. This is an interesting note with the heat provided to the facility by the Town, and if the Town generation could offset the power usage, the Correctional Facility could become a “Truly Green” facility. Further exploration of this concept is needed with the Department of Corrections. However this would probably result in the corrections facility paying the difference to increase the rate and long term agreements could be difficult to obtain. Meeting with PacifiCorp personnel resulted in current power sales in the 0.060 to 0.065$ range. PacifiCorp is interested in the power and has purchase procedures in place to contract with the Town. Long term twenty year agreements are required, with rate increases during the time of the agreement. The PacifiCorp option will be utilized for the analysis of this report, as it allows a definite rate which allows a cost analysis of the project. Prices paid by PacifiCorp are based on avoided costs on a fixed rate or avoided costs based on the natural gas market index. The projected peak prices based on the natural gas price index per kWh are $0.055 in 2012 to $0.069 per kWh in 2028. The peak prices are paid from the peak times of 6:00 AM to 10:00 PM Monday through Saturday except holidays. Off peak hour prices are slightly lower. These costs of course are subject to change depending on the natural gas market and may change in favor of the generator. The projected fixed avoided cost rates for purchasing power are illustrated in Table 6: Lakeview Geothermal Power Generation Facility Feasibility Study 14PDF Image | LAKEVIEW GEOTHERMAL POWER GENERATION FACILITY FEASIBILITY
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