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Revised: 5/9/2005 Prepared by Ray Kreig for Chugach Consumers
SOUTHERN INTERTIE COST-BENEFIT: TWO REPORTS PREPARED BY DECISION FOCUS - AERONOMICS ONE MONTH APART;
ONE PUBLIC - ONE KEPT CONFIDENTIAL (until 12/6/02)
WHY ARE THEY SO DIFFERENT?
TABLE 1-11 - NET PRESENT WORTH OF BENEFITS FOR THE PROJECT
Decision Focus, Inc. - Aeronomics, Update and Reevaluation of the Economic Benefits of Southern Intertie Project.  March 9, 1998.		 WHERE DO THE BENEFITS OF THE SOUTHERN INTERTIE COME FROM?
Decision Focus, Inc. - Aeronomics, Ratepayer Impacts of Proposed Transmission Projects Final Report.  February 16, 1998.  CONFIDENTIAL (until 12/6/02)
Category Updated Value
(millions of 1997 $)		 Category Railbelt Benefits
(million $ NPV)
Capacity sharing 20.9    
Economy energy transfer 37.8 Transfer Payments-Energy and Spin 0
Transfer Payments-Capacity 0
Life Extension 0
Reliability 49.4 Reliability Benefits 24.42
Spinning reserve sharing 9.3 Energy+Spinning Reserve 15.48
Reduced line maintenance 4 Reduced Reconstruction Costs on Existing Line 3.01
Avoid minimum CT generation on Kenai (*) 10.7 Avoided and Deferred Generation 4.18
Avoid not loading line during bad weather/construction (*) 11.4 Avoid Zero Loading for Maintenance 4.76
Avoid Zero Loading for Other Reasons 4.85
Total Benefits 143.5
DFI:  "We believe [this study] to be much more accurate."
Total Benefits
56.7
Total Cost** 124.1 Total Cost** 124.1
Net Benefits after costs 19.4 Net LOSS -67.4
Notes:

* Asterisks indicate benefits not considered in 1989 due to different assumptions for system operating parameters prior to completion of the Bradley Lake Hydroelectric Project.
For source see page 1-29 of:		 SOURCE: p. 30 of Samuelson, R., Hass, S., and Chugach Electric Association, 2002, Ratepayer Impacts of Proposed Transmission Projects Final Report; Includes Chugach Electric Association's Comments: DFI-Aeronomics, [6 p.], 75 p. [marked "Client Confidential"].  NOTE: Released by vote of Chugach Board on 11/20/02. First available 12/6/02 with 6-page transmittal memo and newly added "Chugach Review Comments" imprinted throughout the 75 page original document dated 2/16/98.
http://www.usda.gov/rus/water/ees/pdf/sip-Chapter1.pdf   http://www.chugachconsumers.org/Lib/Int/DFI.98-2-16.htm
** Source for Total Cost: http://www.chugachconsumers.org/Lib/Int/SouInt.Cost-Ben.htm
MORE INFORMATION: http://www.chugachconsumers.org/SI.htm