Wyandotte Geothermal Utility

Wyandotte Municipal Service

Overview of Wyandotte Municipal Services

• Provides Water, Electric, Cable, Internet, & VOIP to the citizens of Wyandotte

• Water Utility– Formed in 1889– Approx 10,000 customers– $4 Million in Annual Revenue

• Electric Utility– Formed in 1892– Approx 12,000 customers– $41 Million in Annual Revenue

• Cable Utility– Formed in 1981– Approx 8,500 customers– $9 Annual Revenue

Why Geothermal Heat Pumps?

• Refer to:Ground-Source Heat Pumps:

Overview of Market Status, Barriers to Adoption, and Options for Overcoming Barriers

US Department of Energy

Submitted by

Navigant Consulting, Inc.

February 3, 2009

WMS Wants to Remove Barriers• Space Constraints In Urban Areas• Low Market Awareness Among Consumers• The Need for Ground Loop Adds Cost, Complexity,

& Risk• Need Codes for Proper Design & Installation of

Ground Loop• Ground Loop Repair & Maintenance Challenges• Requires Installation Specific Design & Engineering

of Ground Loop

Why Does WMS Want a Geo-Utility

• Energy Efficiency• Improves system load factor• Is a dispatchable renewable energy source• Lowers customers energy costs• Economic development

Energy Efficiency

The GSHP is one of the most efficient residential heating and cooling systems available today, with heating efficiencies 50 to 70% higher than other heating systems and cooling efficiencies 20 to 40% higher than available air conditioners. That directly translates into savings for you on your utility bills. Source “International Ground Source Heat Pump Association”

Improves System Load Factor

Lowers Customers Energy CostsModel Inputs

Gas Service Fee $ 180.00 Gas Rate $ 1.06 CCF/Ton 0.12Electric Rate $ 0.12874 per Kwh Geo Htg COP 4Customer Charge $ 4.50 GU monthly rate $ 26.75 per tonAnnual hrs heating 2100Annual hrs cooling 1450Inflation, elec, gas, maint 4.00%Inflation GU 2.00%Hot water add for gas 0.35Conv A/C kW/Ton 1.35Geo AC kW/Ton 0.75

Lowers Customers Energy CostsInputs - Wyandotte Home - Geothermal vs. Conventional

Calculation for Tons = 2Conventional Geothermal Utility

Year Elec Nat Gas MaintTotal Ops

Cost Elec GUCust Chrg Maint

Total Ops Cost

Ann Save

Cum Save

1 $504 $1,168 $210 $1,882 $584 $642 $54 $53 $1,333 $549 $5492 $524 $1,214 $218 $1,957 $608 $655 $54 $55 $1,371 $586 $1,1353 $545 $1,263 $227 $2,035 $632 $668 $54 $57 $1,411 $625 $1,7604 $567 $1,314 $236 $2,117 $657 $681 $54 $59 $1,451 $665 $2,4255 $590 $1,366 $246 $2,201 $683 $695 $54 $61 $1,494 $708 $3,1336 $613 $1,421 $255 $2,289 $711 $709 $54 $64 $1,537 $752 $3,8857 $638 $1,478 $266 $2,381 $739 $723 $54 $66 $1,583 $798 $4,6848 $663 $1,537 $276 $2,476 $769 $737 $54 $69 $1,629 $847 $5,5319 $690 $1,598 $287 $2,575 $799 $752 $54 $72 $1,678 $898 $6,428

10 $717 $1,662 $299 $2,678 $831 $767 $54 $75 $1,727 $951 $7,379

Lowers Customers Energy Costs• Current Incentives in Wyandotte

– 30% Federal Tax Credit– $1,000/ton Rebate from WMS– 1.99% Unsecured Loans Available

• Also Offering Other Programs– Home Energy Audits– Suite of Other Rebates & Incentives Up to a

total of $6,000.00 per home owner

How is the Geo-Utility Structured• Wyandotte Geo-Utility provides the ground loop

– 300 ft. vertical bores, goal is to get to 600 ft.

• Ground loop located in public right of ways• WMS assumes all ground loop risks• Full shut off capacity• City passed GSHP Ordinance• Rates based on capacity of systems installed

What an Installation Looks Like

Drilling Experience• Urban Area

– Average lot width varies 40 ft. to 70 ft.

• Landscaped yards– Trees, sidewalks, driveways, curbs, porches, etc.

• Artesian Wells– Rotten egg odors

• Fractured Limestone

Rate Structure & Customer Options• Residential Rate

– Wyandotte drills & owns loop field– $4.50 monthly customer charge + $26.75 per ton

• Maintenance Rate– Property owner pays for well located in public

right of way– $4.50 monthly customer charge + $11.75 per ton

• Property owner installs loop field on their property

Rate Structure & Customer Options• Residential Rate

– Wyandotte drills & owns loop field– $4.50 monthly customer charge + $26.75 per ton

• Maintenance Rate– Property owner pays for well located in public

right of way– $4.50 monthly customer charge + $11.75 per ton

• Property owner installs loop field on their property

Process to Become a Customer• Customer

– Decide which rate option works for you– Sign a Service Agreement– Make arrangements for GSHP installation

• WMS will– Locate well on plot plan– Contract driller

• Driller will get permit from City– Complete loop and install service valves

Revenue Generation Potential

• Well installation permit fee –$200 for first well–$25 for each additional

• Potential Tax revenue with Public Ownership• 30 year payback on well infrastructure•Geothermal Electric Rates•Renewable Energy Credits (RECs)

Current Status• 52 installations already in the planning and

design stage– 25 new residential installations – 19 retrofit residential installations– 3 commercial installations– 2 new multi-family developments (20 units)– 3 Private home owners subscribed

• 18 loop fields installed• 8 Installations Complete & In Service