city of poughkeepsie led street lighting may 5, 2014
TRANSCRIPT
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CITY OF POUGHKEEPSIE LED STREET LIGHTING
May 5, 2014
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Preliminary Project Economics
1 Total Project Summary
Proposed LED Project includes the following: LED Street Lighting Upgrades
LED Traffic Signal Upgrades – 93 Intersections
Purchase Price of Existing Lights from Central Hudson for
$327,522 –
City is negotiating pricing
Security Deposit on Attachment of Lights to
Central Hudson Utility Poles of $149,500
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Preliminary Project Economics
2
Summary Preliminary LED Project Economics Estimated Project Cost $5,547,811
Annual Energy Savings 2,158,160 kWh
Annual Energy Cost Savings $165,675
Annual O&M Savings $265,346
Total Cost Savings (First Year) $431,021
Annual Payment $399,232
Simple Payback Period 12.2 years
Net Present Value (NPV) $2,032,647
Return on Investment (ROI) 36.48%
Savings over 25 Years $5,378,471
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Preliminary Project Economics
3 Cash Flow
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Guaranteed Cost Savings Net Annual Costs Cash Flow
Cash FlowSavings & Debt Service
BAN Interest Rate 1.75% BOND Interest Rate 3.75% Term of 20 Years
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Preliminary Project Economics with Rate Increase
4
Summary Preliminary LED Project Economics Estimated Project Cost $5,547,811
Annual Energy Savings 2,158,160 kWh
Annual Energy Cost Savings $248,594
Annual O&M Savings $265,346
Total Cost Savings (First Year) $513,940
Annual Payment $399,232
Simple Payback Period 10.3 years
Net Present Value (NPV) $3,015,315
Return on Investment (ROI) 54.35%
Savings over 25 Years $8,411,244
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Preliminary Project Economics with Rate Increase
5 Cash Flow
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Guaranteed Cost Savings Net Annual Costs Cash Flow
Cash FlowSavings & Debt Service
BAN Interest Rate 1.75% BOND Interest Rate 3.75% Term of 20 Years
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Comparison of Rate Increase
6
Description Current Rate W/ Rate Increase Estimated Project Cost $5,547,81
$5,547,811
Annual Energy Savings 2,158,160 kWh
2,158,160 kWh
Annual Energy Cost Savings $165,675
$248,594
Annual O&M Savings $265,346
$265,346
Total Cost Savings (First Year) $431,021
$513,940
Annual Payment $399,232
$399,232
Simple Payback Period 12.2 years 10.3
years
Net Present Value (NPV) $1,603,168
$3,015,315
Return on Investment (ROI) 28.90% 54.35%
Savings over 25 Years $5,378,471
$8,411,244
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Comparison of Rate Increase
7
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 $-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
Annual Cost to Operate Street Lights Before and after Rate Increase
Annual Costs After Project Annual Costs w/o Project
Annual Costs After Project w/ Rate Increase Annual Costs w/o Project w/ Rate Increase
Years
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Next Steps
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Project Next Steps
8
Council Approval of Project Central Hudson License Agreement – City Needs to
Finalize the Terms of the Agreement with Central Hudson Authorize Prototype of Different Manufactures to be
Installed and Finalize Fixture Selections
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Project Schedule
9
May 5th, 2014 Presentation to the Common Council
May 5th, 2014 Council Resolution to Approve Project and Financing
August 15, 2014 Estimated Start of Construction
August, 2015 Measurement And Verification
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Questions & Discussions
Thank you.Wendel Energy Services, LLC
Joseph DeFazio, PE, Vice President of Energy ServicesSam Marotta, CEM, CMVP, BEAP, Project Lead
716.688.0766