WAPA Generator Leas...
 

WAPA Generator Lease ... A Good Deal ???  

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Lucy
Posts: 297
 Lucy
(@Lucy)
Advanced Member
Joined: 11 years ago

I must be missing something here or is someone taking advantage of the crisis situation?

http://stthomassource.com/content/news/local-news/2012/02/15/wapa-leasing-generator-aid-st-thomas-power-plant-repairs

This is a 25 MWe gross combustion turbine. Selling price is about $450 per kWe of capacity.

25,000 kWe x $450 = $11.25M to buy it versus $14.6M to lease it for 1.5 years

Assuming it runs 24/7 the whole time. 1.5 x 365 x 24 x 22,000 kWe (net) = 289,080,000 kWe-Hrs

Cost of the lease per kWe-Hr = $14,600,000.00 / 289,080,000 kWe-Hr = $0.05 per kWe-Hr just for the equipment

The article mentions "Hodge said that last year the PSC authorized a temporary 2.3 cent per kilowatt hour rate increase so WAPA can pay for the lease, but because the temporary new generating unit is more efficient than WAPA's units, which are both decades-old and badly in need of extensive maintenance, the generator lease should be cost-neutral to customers, as fuel savings counterbalance the upfront costs."

If this is such a great deal, why not make it permanent?

12 Replies
DaChief
Posts: 129
(@DaChief)
Advanced Member
Joined: 8 years ago

Lucy;
From my research, $300 per kw for a Frame 5/ Frame 7 22.5 MW for a USED unit- generally refurbished. An entire power plant of this size is about 2000 to 3000 per KW. Let's say we get it slightly cheaper

Therefore-

Option 1-

Purchase a used but refurbished unit at $6,750,000
Transport it here- $500,000
Connect it- $675,000
Other Fees- $100,000
So- total $8,025,000

Option 2-

Purchase a new one- 36,500,000
Total now 38,675,000

So, we're spending in the neighborhood of 18 million to lease a machine that's within 50% of the cost of renewal...THIS IS JUST ONE MORE REASON TO PRIVATIZE WAPA.....

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vasecs
Posts: 175
(@vasecs)
Advanced Member
Joined: 9 years ago

When you have no cash and "Slave to the Lender", you must bend over and grin!! 😮

It is the old monthly payment plan and never get the deed! Texas Contract.......

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Lucy
Posts: 297
 Lucy
(@Lucy)
Advanced Member
Joined: 11 years ago

Chief - we have been saying the same thing for some time .... maybe someone of influence will notice. We need a 3rd party to run the utility like a for-profit business.

Here is a recent (2010) forecast for GTs and there is a lot of good stat.s on the GE LM2500

http://www.forecastinternational.com/samples/F649_CompleteSample.pdf

Even for a new plant in simple-cycle configuration, the total cost should be between $600 and $800 per kWe of capacity. This is on a greenfield site, so all the auxiliaries and construction would be included. But we are talking just a jet engine with a generator. No waste heat boiler or STG, etc.

WAPA would be better off as you said, buying used-refurbished.

See the LM2500 PE, model MDW (Looks NEW) on this page that sold for $6,850,000. That's $303 per kWe for 22.6 MWe of capacity.

http://www.generatormart.com/lm2500-by-descending-kw-1.shtml

http://www.generatormart.com/200801260041433345.shtml

Reply
vasecs
Posts: 175
(@vasecs)
Advanced Member
Joined: 9 years ago

I must be missing something here or is someone taking advantage of the crisis situation?

http://stthomassource.com/content/news/local-news/2012/02/15/wapa-leasing-generator-aid-st-thomas-power-plant-repairs

This is a 25 MWe gross combustion turbine. Selling price is about $450 per kWe of capacity.

25,000 kWe x $450 = $11.25M to buy it versus $14.6M to lease it for 1.5 years

Assuming it runs 24/7 the whole time. 1.5 x 365 x 24 x 22,000 kWe (net) = 289,080,000 kWe-Hrs

Cost of the lease per kWe-Hr = $14,600,000.00 / 289,080,000 kWe-Hr = $0.05 per kWe-Hr just for the equipment

The article mentions "Hodge said that last year the PSC authorized a temporary 2.3 cent per kilowatt hour rate increase so WAPA can pay for the lease, but because the temporary new generating unit is more efficient than WAPA's units, which are both decades-old and badly in need of extensive maintenance, the generator lease should be cost-neutral to customers, as fuel savings counterbalance the upfront costs."

If this is such a great deal, why not make it permanent?

lucy, you are a smart guy.....let me ask some dumb questions please;
1. If you were to pipe natural gas to STX, where might it come from?
2. Is it an option to drill for natural gas/oil off STX or where it might be located? Do we know if it is out there?
3. How do you force the Fed's to take over this bullshit from the idiots that mis-manage WAPA? I mean the Fed's own this island and should be making the rules....right?
4. How screwed up can one island be?? This is incredible! PEOPLE WAKE UP! GET OFF YOUR NO TAN ASS'S!!

Reply
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