February 28, 2011
Monday PM

This is in response to the question by Pete Ellis regarding revenue opportunity to sell energy to the cruise ship industry in Ketchikan. I have reviewed the existing cruise ship schedules, and energy these ships use when at dock in Ketchikan. The collective cruise ship summer energy use in Ketchikan is approximately 35,000,000 kWh of energy each year. At a sales price of 10 cents/kWh, this would be $3.5 million per year in gross revenue.

If this energy could be supplied with excess hydropower, this would be a net benefit to Ketchikan. If this energy were supplied with energy purchased outside the region at lower cost, this could be a net benefit to Ketchikan. If this were to be supplied with diesel-fired generation, the revenue would not even cover half the cost of diesel.

Two solutions should be looked at. The first is to develop more hydropower energy and sell excess energy that these hydropower resources provide in the summer months to the cruise ship industry. The second is to connect Southeast Alaska to the North American grid through BC, with the proposed AK/BC Intertie. This would allow the purchase of energy from outside the region to sell to businesses and residents in the region. Actually both of these solutions should be done, which would help the cruise ship industry as well as Ketchikan.

Providing energy and heat from diesel is yesterday's technology and has no future as world demand for this fuel will certainly drive up its cost.

Thom Fischer
www.tollhouseenergy.com
Bellingham, WA

About: "President of renewable energy development company. Engineer performing economic evaluation on energy projects, including hydropower projects."

Received February 27, 2011 - Published February 28, 2011

Related Viewpoint:

Open Letter to Ketchikan City Manager: Ketchikan Cruise Ship Power Opportunities By Pete Ellis

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