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Wyandotte Geothermal Utility

Wyandotte Geothermal Utility. Pamela Tierney, Energy Services Program Manager. Overview of Wyandotte Municipal Services. Provides Water, Electric, Cable, Internet & VOIP Water Utility Formed in 1889; Approx 10,000 customers; $4 Million Annual Revenue Electric Utility

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Wyandotte Geothermal Utility

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  1. Wyandotte Geothermal Utility Pamela Tierney, Energy Services Program Manager

  2. Overview of Wyandotte Municipal Services • Provides Water, Electric, Cable, Internet & VOIP • Water 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

  3. Why Geothermal? Why Wyandotte? Overview / Market Status Just Get Started / Barriers to Adoption Options for Overcoming Barriers Pieces of the Process Lessons Learned Project Management

  4. Why Did WMS Start a Geo-Utility? • Is a dispatchable renewable energy source • Improves system load factor – base load/peaks • Energy Efficiency / Lowers customer’s energy costs • Economic development

  5. Improves System Load Factor

  6. Helping Lower Customer’s Energy Costs • Current Incentives in Wyandotte • 30% Federal Tax Credit • $1,000/ton Rebate from WMS • 1.99% APR Unsecured Loans Available • Other Programs Offered • Home Energy Audits – Encourage Overall Home Performance; Insulation, Air Sealing, EE Equipment • Suite of Other Rebates & Incentives

  7. Lowers Customer’s Energy Costs

  8. Lowers Customer’s Energy Costs

  9. Economic Development • HVAC Contractors / On-going Contractor Support • Drilling contractors • Pipe Manufacturers • Equipment Distributors/Manufacturers • Parts & Maintenance Suppliers • Crane Operators – Commercial Installations • WMS/City staff • Purchases made locally in Wyandotte – lunch, supplies, etc.

  10. Market & Status • Many GSHP manufacturers • IGSHPA Certification • Conventional HVAC vs. Geothermal debate • Engineering the project • Quality drillers • Making the economics work

  11. WMS Wanted to Remove Barriers • Space Constraints In Urban Areas • Low Market Awareness Among Consumers / No sizzle • The Need for Ground Loop Adds Cost, Complexity & Risk • Codes for Proper Design/Installation of Ground Loop • Requires Installation Specific Design/Load calculations & Engineering • Ground Loop Repair & Maintenance Challenges

  12. How the Geo-Utility was Structured • Wyandotte Geo-Utility provides the ground loop • 300 ft. vertical bores; one per home on average • 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 (tonnage) of systems installed • Customer responsible for internal system /connection

  13. Rate Structure & Customer Options • Residential Rate • Wyandotte drills & owns bore field • $26.75 per ton + $4.50 monthly customer charge • Maintenance Rate • Property 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 property • No involvement by WMS; no costs paid to WMS

  14. Revenue Generation Potential • Bore field (Well) installation permit fee • $200 for first well • $25 for each additional • Potential Tax Revenue with Public Ownership • Capitalized system; depreciation taken • 30 year average payback on bore field infrastructure • Geothermal Electric Rates – under review • Renewable Energy Credits (RECs) potential

  15. Pieces of the Project/Process to Become a Customer • Customer - Internal Design, GSHP & Horizontal Connection • Decides which rate option works for them • Signs a Service Agreement • Obtains system quotes and hires a contractor to install GSHP and horizontal connection – IGSHPA certified recommended • WMS – Bore field including engineering/design • Locate well on plot plan • Contract driller • Driller will get permit from City and call Miss DIG • Complete bore field and install service valves • City – inspects internal and external systems

  16. What Wyandotte Installations Look Like

  17. 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/sulphur • Fractured Limestone • Consumes water and grout

  18. Drilling Experience – Not Always Pretty

  19. Drilling Experience – Not Always Pretty

  20. Current Status • 56 installations already in the planning/design stage or completed • 25 new residential installations • 20 retrofit residential installations • 4 commercial installations • 2 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

  21. Lessons Learned • New 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

  22. Lessons Learned • Project 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

  23. Lessons Learned • Big difference in bore field drillers • Drillers competent to different depths • Valve boxes - Compression fitting vs. poly fused valves • Cost overruns on grout/drilling if fractures are hit • Type of grout • Glycol % • Pressure testing – leaving valve boxes exposed; coordinating efforts with GSHP contractor • Pinched pipes or damage to well or compression fittings on valves

  24. Lessons Learned • Trenching 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.

  25. Q&A? Thank you Pamela Tierney ptierney@wyan.org

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