Tuesday, 29 January 2008

Hydro Math

Looks like Hydro has inked a Howard Stern-like $1billion contract to sell power to Minnesota. I guess Bob Brennan had better get on the horn and find somebody to build the Wuskwatim dam.

Just doing a little math here ... $1 billion over 15 years for 250 megawatts = $267k per megawatt-year or about $30 per MW-hr. That's a bargain, compared to the $40 cited here, but I guess you need to cut a deal if you want to secure your customer for the long-term. I hope that's indexed for inflation.

Hydro isn't saying what the surplus will be sold for, but even at $30/MW-hr, that works out to between $7.4 mil and $14.7 mil in annual line losses from the west-side Bipole III route. Think about it ... we could build a waterpark with a few years of that money.


PolicyFrog said...

You've got mad skillz with the calculator. Nice catch on the line loss figures.

cherenkov said...

Thank you sir.

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