Document - 2nd Review of the Economics of Restoring Hydropower at Enloe Dam on the Similkameen River

Abstract

The updated economic analysis by Rocky Mountain Econometrics concludes the following: 1) Construction costs continue to increase. RME estimates that inflation will drive Enloe’s cost to about $40 million and above in subsequent years. 2) Enloe dam will, depending on the amount of water dedicated to minimum instream flows over the falls, lose between $1.1 million and $1.5 million for each year the project operates. A loss of $25 to $41 on every MWh of electricity it produces. 3) OPUD will see operating income of only $2.1 million each year. With operating costs totaling $3,193,696 it will cost OPUD $1.1 million more each year to operate the Enloe Project than it would cost to purchase the power on the open market. Additionally, the project is a poor long-term investment. At the end of year 40, when the original loan for the project is paid off, accumulated losses plus interest will have grown to nearly $170 million, more than four times the original construction cost. At that time, Enloe will be losing about $10 million per year and the net present value will never generate a profit.

Description

Economic analysis of the costs and rate payer exposure of restoring hydropower at Enloe Dam.

Document Information

Filename - 2nd Review of the Economics of Restoring Hydropower at Enloe Dam on the Similkameen River1350.pdf

Size - 758.10KB

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