GEOThermal Stuff

[pahoated]

quote:

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Originally posted by kalakoa
Geothermal is subsidized by artificial "power purchase" rate structures.

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Wrong. What you are referring to is ACC (Avoided Cost Contracting). ACC applies to all the alternative energies including solar and wind. ACC requires the utility to charge the same rate as if it was all still being produced by diesel electric generators, which is 42 cents per kilowatt-hr. The requested rate increase will take that to 45 cents per kw-hr. HELCO is saying their existing contracts had the required ACC but the state dropped the requirement last year. HELCO is renegotiating some contracts and the additional 8MW contract does not use ACC, resulting in about a $2 per month discount.

The way ACC works is that it is a kickback to the utility. HELCO negotiates for a solar farm with a private company, the private company bids industry rate, for solar about 35 cents per kw-hr, HELCO charges 42 cents/kw-hr, 7 cents/kw-hr profit. For geothermal, industry rates are about 20 cents/kw-hr, HELCO sells it for 42 cents/kw-hr, 22 cents/kw-hr profit.

ACC is not related to subsidies at all.