Wyandotte Geothermal Utility

Pamela Tierney, Energy Services Program Manager

Overview of Wyandotte Municipal Services

Provides Water, Electric, Cable, Internet & VOIPWater Utility

Formed in 1889; Approx 10,000 customers; $4 Million Annual Revenue

Electric Utility Formed in 1892; Approx 12,000 customers; $44 Million Annual Revenue

Cable Utility Formed in 1981; Approx 8,500 customers; $10 Annual Revenue

Why Geothermal? Why Wyandotte?Overview / Market Status

Just Get Started / Barriers to AdoptionOptions for Overcoming Barriers

Pieces of the ProcessLessons Learned

Project Management

Why Did WMS Start a Geo-Utility? Is a dispatchable renewable energy sourceImproves system load factor – base

load/peaksEnergy Efficiency / Lowers customer’s

energy costsEconomic development

Improves System Load Factor

Helping Lower Customer’s Energy CostsCurrent Incentives in Wyandotte

30% Federal Tax Credit$1,000/ton Rebate from WMS1.99% APR Unsecured Loans Available

Other Programs OfferedHome Energy Audits – Encourage Overall Home

Performance; Insulation, Air Sealing, EE EquipmentSuite of Other Rebates & Incentives

Lowers Customer’s Energy CostsInputs - Wyandotte Home - Geothermal vs. Conventional

Calculation for Tons = 2Conventional - Annual Costs Geothermal Utility - Annual Costs

Year Elec Nat Gas MaintTotal Ops

Cost Elec GU Cust Chrg MaintTotal Ops

Cost Ann Save Cum Save

1 $521 $1,030 $210 $1,761 $679 $282 $54 $53 $1,067 $694 $6942 $542 $1,071 $218 $1,832 $706 $288 $54 $55 $1,102 $729 $1,4233 $564 $1,114 $227 $1,905 $734 $293 $54 $57 $1,138 $767 $2,1904 $586 $1,159 $236 $1,981 $764 $299 $54 $59 $1,176 $805 $2,9955 $610 $1,205 $246 $2,060 $794 $305 $54 $61 $1,215 $846 $3,8416 $634 $1,253 $255 $2,143 $826 $311 $54 $64 $1,255 $888 $4,7287 $659 $1,303 $266 $2,228 $859 $318 $54 $66 $1,297 $932 $5,6608 $686 $1,356 $276 $2,318 $893 $324 $54 $69 $1,340 $977 $6,6379 $713 $1,410 $287 $2,410 $929 $330 $54 $72 $1,385 $1,025 $7,662

10 $742 $1,466 $299 $2,507 $966 $337 $54 $75 $1,432 $1,075 $8,73711 $771 $1,525 $311 $2,607 $1,005 $344 $54 $78 $1,480 $1,127 $9,86412 $802 $1,586 $323 $2,711 $1,045 $351 $54 $81 $1,530 $1,181 $11,04513 $834 $1,649 $336 $2,820 $1,087 $358 $54 $84 $1,582 $1,237 $12,28214 $868 $1,715 $350 $2,932 $1,130 $365 $54 $87 $1,636 $1,296 $13,57815 $902 $1,784 $364 $3,050 $1,175 $372 $54 $91 $1,692 $1,357 $14,935

Lowers Customer’s Energy CostsGas Service Fee

$ 15.00

Gas Rate $ 1.06 CCF/Ton 0.12

Electric Rate $

0.13309 per Kwh Geo Htg COP 4

Customer Charge $ 4.50

Geothermal monthly rate $

11.75 per tonAnnual hrs heating 2600 Cost $25,400Annual hrs cooling 1450 Simple payback 21 yearsInflation, elec, gas, maint 4.00% Rebates -$2,000Inflation GU 2.00% 30% tax credit -$8,465.82

Hot water add for gas 0.35 Reduced cost$14,934.1

8

Conv A/C kW/Ton 1.35Adjusted payback 14.5 years

Geo AC kW/Ton 0.75

Possible Rebates and tax credits that may be available in Wyandotte

Economic DevelopmentHVAC Contractors / On-going Contractor SupportDrilling contractorsPipe ManufacturersEquipment Distributors/ManufacturersParts & Maintenance SuppliersCrane Operators – Commercial InstallationsWMS/City staffPurchases made locally in Wyandotte – lunch, supplies, etc.

Market & StatusMany GSHP manufacturersIGSHPA CertificationConventional HVAC vs. Geothermal debateEngineering the projectQuality drillersMaking the economics work

WMS Wanted to Remove BarriersSpace Constraints In Urban AreasLow Market Awareness Among Consumers / No sizzleThe Need for Ground Loop Adds Cost, Complexity & RiskCodes for Proper Design/Installation of Ground LoopRequires Installation Specific Design/Load calculations &

EngineeringGround Loop Repair & Maintenance Challenges

How the Geo-Utility was StructuredWyandotte Geo-Utility provides the ground loop

300 ft. vertical bores; one per home on averageGround loop located in public right of waysWMS assumes all ground loop risksFull shut off capacityCity passed GSHP OrdinanceRates based on capacity (tonnage) of systems installedCustomer responsible for internal system /connection

Rate Structure & Customer OptionsResidential Rate

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

Maintenance RateProperty owner buys down the rate by paying the

well costs; wells located in public right of way$11.75 per ton + $4.50 monthly customer charge

Property owner installs loop field on their propertyNo involvement by WMS; no costs paid to WMS

Revenue Generation Potential Bore field (Well) installation permit fee

$200 for first well$25 for each additional

Potential Tax Revenue with Public OwnershipCapitalized system; depreciation taken30 year average payback on bore field infrastructureGeothermal Electric Rates – under reviewRenewable Energy Credits (RECs) potential

Pieces of the Project/Process to Become a Customer

Customer - Internal Design, GSHP & Horizontal ConnectionDecides which rate option works for themSigns a Service AgreementObtains system quotes and hires a contractor to install GSHP and

horizontal connection – IGSHPA certified recommendedWMS – Bore field including engineering/design

Locate well on plot planContract driller

Driller will get permit from City and call Miss DIGComplete bore field and install service valves

City – inspects internal and external systems

What Wyandotte Installations Look Like

Drilling ExperienceUrban Area

Average lot width varies 40 ft. to 70 ft.Landscaped yards

Trees, sidewalks, driveways, curbs, porches, etc.Artesian Wells

Rotten egg odors/sulphurFractured Limestone

Consumes water and grout

Drilling Experience – Not Always Pretty

Drilling Experience – Not Always Pretty

Current Status56 installations already in the planning/design

stage or completed25 new residential installations 20 retrofit residential installations4 commercial installations2 new multi-family developments (20 units)4 Private home owners subscribed; 1 off grid

50 bore fields installed; 41 individual systems; 109 ton total capacity

31 Installations Complete & In Service

Lessons LearnedNew process – customers very dependent on our knowledge

and help Continuous education process / overcoming misinformation Avoid strip heaters where possible Re-teaching old habits – set back temperatures, filters

Cost analysis important – did they have A/C? Fuel type? Rate structure – what is too high?

Championing total home performance prior to installing Geothermal or other renewable – insulation, air sealing, etc.

Necessity of shut off ability

Lessons LearnedProject Management important – try and cover unforeseen

events – extra costs for grout, running water, odor, water sources, sewer/runoff provisions, safety, customer expectations…

Big difference in GSHP contractors Does the HVAC contractor understand Geo units? Single vs. 2

stage units? Floor drains/condensate pumps? Fresh air intake into return air/motorized dampers? Air balancing/duct size

Lessons LearnedBig difference in bore field drillers

Drillers competent to different depths Valve boxes - Compression fitting vs. poly fused valvesCost overruns on grout/drilling if fractures are hitType of groutGlycol %Pressure testing – leaving valve boxes exposed; coordinating

efforts with GSHP contractorPinched pipes or damage to well or compression fittings on valves

Lessons LearnedTrenching vs. directional bore; piping thru the side wall of

structure vs. under the footing New construction –

Coordinate drilling once construction nears completion; GC lays horizontal piping

GSHP should be installed in a clean area;Existing homes – directional boring; careful under footing;

piping diagrams often incomplete or depth incorrect for sewer lines, etc.

Q&A?

Thank you

Pamela Tierneyptierney@wyan.org