%0 Book
%I Alaska Energy Authority, Susitna-Watana Hydroelectric Project
%D 2012
%C Anchorage
%G English
%B Susitna-Watana Hydroelectric Project document ;
%T Susitna-Watana hydro cost of power : Alaska Energy Authority compares estimates to Dr. Colt's report.
%U https://www.arlis.org/docs/vol1/Susitna2/1/SuWa113.pdf
%X In a recent discussion paper, Dr. Steve Colt calculates the retail cost of power from Susitna-Watana Hydro during the first year of operation at a much higher rate than the Alaska Energy Authority (AEA). An analysis reveals that almost the entire discrepancy between AEA and Dr. Colt's estimates come from three critical assumptions: capital cost of the project, rate structure, and cost of debt. This brief report outlines each of these assumptions and demonstrates why AEA's analysis is more accurate. The report addresses one assumption at a time, walking through three steps to full correction. In order to compare like costs, this paper focuses on the wholesale cost of power from Susitna-Watana Hydro. Dr. Colt estimates this to be $0.34 per kWh (Dr. Colt then adds $0.06 for distribution costs to estimate a retail rate of $0.40).