Detailed Steam Price Calculations
February 2014
(Questions? Call 503-464-7491)
Monthly Steam Pricing
A
B
C
E
= A XC
+ B XD
D
G
Conversion
Factor
Curve
Date
Year
F
H=
E XF XG
Service Factor
MWh Lost per Thousand
% of Steam
Month
On-Peak Off-Peak % On
% Off
LBS of
Steam
Flat
from
Co-Generation
I
J= H+ I
K = 10% X J
L = J+K
O&M
Steam
Agency
including
Cost
Fee
Price
$
per
1,000
LBS of
Steam
$5.60
$5.55
$5.52
$5.51
Auxilary
Boiler
Fuel
2013 Nov
10/15/2013
$38.75
$32.50
56%
44%
$36.00
0.1016
75%
$2.74
$2.34
$5.09
$0.51
2013 Dec
11/15/2013
$39.00
$31.00
56%
44%
$35.48
0.1016
75%
$2.70
$2.34
$5.05
$0.50
2013 Jan
12/16/2013
$43.00
$34.75
56%
44%
$39.37
0.1016
75%
$3.00
$2.02
$5.02
$0.50
2014 Feb
01/15/2014
$40.00
$35.75
56%
44%
$38.13
0.1016
75%
$2.91
$2.10
$5.01
$0.50
Quarterly Steam Pricing
A
B
C
D
Curve
Month
F
G
H=
E XF XG
Conversion Factor
Service Factor
Date
Year
E
= A XC +
B XD
MWh Lost per Thousand
% of Steam
On-Peak
Off-Peak
% On
% Off
Flat LBS of Steamfrom CoGeneration
I
J = H + I K = 10% X JL
O&M
Steam
Agency
including
Cost
Fee
Auxilary
Boiler
Fuel
2013 Oct
09/15/2013
$40.75
$28.25
56%
44%
$35.25
0.1016
75%
$2.69
$2.34
$5.03
$0.50
2013 Nov
09/15/2013
$34.05
$28.75
56%
44%
$31.72
0.1016
75%
$2.42
$2.34
$4.76
$0.48
2013 Dec
09/15/2013
$37.85
$31.75
56%
44%
$35.17
0.1016
75%
$2.68
$2.34
$5.02
$0.50
2014 Jan
12/16/2013
$43.00
34.75
56%
44%
$39.37
0.1016
75%
$3.00
$2.02
$5.02
$0.50
2014 Feb
12/16/2013
$39.25
33.50
56%
44%
$36.72
0.1016
75%
$2.80
$2.02
$4.82
$0.48
2014 Mar
12/16/2013
$36.50
31.00
56%
44%
$34.08
0.1016
75%
$2.60
$2.02
$4.62
$0.46
= J+K
Price
$
per
1,000
LBS of
Steam
$5.53
$5.24
$5.53
$5.52
$5.30
$5.08
Notice of Update to Operations and Maintenance Cost
As of 1-15-2014
The calculation of the OMC is provided in Attachment 1 and effective with this posting,
replacing a preliminary calculation used for January 2014. Capital for the Reverse Osmosis
system is to be recovered over a 5 year period rather than the 40 years used in the preliminary
calculation.
Three categories of operations and maintenance (OM) costs are included in the OMC: 1) OM
costs that are common to both types of steam produced—from Unit 1 (gas turbine) cogeneration and the auxiliary boiler, 2) OM costs that are only for cogeneration, and 3) OM costs
that are only for the auxiliary boiler.
A significant item included in number three above, is the cost of gas (priced at 3.19 per mmbtu)
used to produce steam with the auxiliary boiler. These costs are summed up for steam
produced by both cogeneration and the auxiliary boiler to $.60 per thousand pounds steam and
$6.60 per thousand pounds of steam respectively. To arrive at overall OMC for steam
production, these amounts are weighted at 75% and 25% respectively to reflect expected
amounts of steam from the two sources and consistent with the Service Factor in the
Agreement. The overall OMC from these calculations is: $2.10 per thousand pounds of
steam.
Your overall steam price will be updated monthly per the applicable Agreement using the
resulting OMC. Please contact me at 503-464-7491 with questions regarding this Notice.
Attachment 1: Calculation of 2014 O & M Price
Co-Generation
Category 1: Water
$
0.27
Aux
$
0.27
Price for Makeup Water + Price for Makeup Water Chemicals +
Water Train Maintenance Cost
(=Calculations!D11)
PGE Steam Distribution System O&M / (Average Hourly Steam
Requirements x Annual Steam System Service)
Category 1: PGE Steam Distribution System O&M
$
2
Category 1: Cost Recovery of Capital Investment . $
0.03
$
0.03
(Capital Investment in Cogen Facility x Capital Recovery
Rate+RO Recovery) / (Annual Steam System Service hours x
0.27 Steam Production Capabilities
0.27
$
Subtota l Common Costs
$
0.57
$
Category 2: Steam pH control
$
0.03
Subtota l Co-Ge n Only Costs
Category 3: Other Auxiliary Boiler Operating Cost
$
0.03
0.57
(Amine Feed x Cost of Amine x Specific Gravity of Amine) /
Average Daily Steam Sales
$
0.14
((Annual Operating Cost for Aux Boiler + Annual Aux Boiler
Electrical Load x Market Price of Power (Flat))/ Annual
Average Steam Sales*.25
Annual Maintenance Cost of Aux Boiler for all Steam Production
/ (Annual Average Steam Sales*.25)
Category 3: Auxilary Boiler Maintenance
$
0.70
(Gas Commodity Price + Gas Transportation + Var Gas
Transportation) x (Gas MMbtu per 1000 LBS of Steam at Coyote
Springs) / CS Aux Boiler Efficiency
Category 3: Gas Auxilary Boiler
$
Subtota l Aux Boile r Only Costs
Total
Percent of Steam
$
0.60
75%
Weighted Contribution to O & M
$
0.45
1. Based on a gas price of:
2. Includes an annual charge of $183,944
through January 2019 (5 year recovery).
$
3.19
5.18 Gas MMbtu per 1,000 LBS of Steam at Coyote Springs=1.173
$
$
6.03
6.60
25%
$
1.65
$
Total O & M
2.10

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