PRELIMINARY FINDINGS TURBINE FEASIBILITY/SITING EVALUATION Dartmouth Wastewater Treatment Plant/DPW 687 Chase Road South Dartmouth, MA INTRODUCTION Atlantic Design Engineers, LLC (Atlantic) has completed an initial feasibility assessment for potential wind turbine installations at the Dartmouth Wastewater Treatment Plant (WWTP) and DPW sites in South Dartmouth, Massachusetts. The Dartmouth WWTP and DPW are located on neighboring parcels of town owned property, consisting of a total of 136.9 acres. The southern most portion of the town property receives the most favorable wind on this parcel. The intent of this report is to evaluate commercial wind generation potential at the locations described herein. Specific objectives of our work to date included the following: Prepare compiled plans of the potential wind turbine project property and surrounding areas depicting existing conditions, approximate property lines and wind turbine siting constraints. Complete wind resource evaluations, turbine siting evaluation and a preliminary commercial wind energy production review for the site. Perform a conceptual review and develop recommendations for on-site turbine sizing, power generation and turbine preliminary siting options. Complete a preliminary review to confirm there are no potential or significant FAA/MAC hazards posed by the potential WWTP turbine site. Perform a preliminary economic analysis and cost/benefit review for the WWTP site, including projected permitting and engineering expenses, project capital expenditures for both turbine procurement, installation and on-site/utility interconnections, and projected financial revenues Prepare an Initial Wind Turbine Site Evaluation Report based on preliminary findings presenting results of all work performed including the conceptual wind turbine site models, wind maps and data, and other supporting documentation from the completed work Town of Dartmouth - Water Pollution Control Facility Turbine Feasibility/Siting Evaluation January 7, 2009 – Page 2 WIND SOURCE REVIEW/TURBINE EVALUATION The table below provides relevant dimensional data for three potential wind turbine models that Atlantic reviewed as prospective wind turbines for the Town of Dartmouth WWTP/DPW site. Table 1 Turbine Characteristics MODEL Overall Height (TIP OF BLADE) Hub Height Rotor Diameter Blade Sweep Clearance (From Grade) AAER A-1650 Vestas V82 1.65MW AAER A-2000 389‟ 398‟ „ 466‟ 263‟ 263‟ 328‟ 253‟ 269‟ 276‟ 136‟ 128‟ 190‟ Atlantic used the AAER A-1650, the Vestas V82, and the AAER A-2000 wind turbines for the purposes of completing the energy production modeling and financial analyses herein. These turbines are intended to be representative of the moderate wind regime class (International Electrotechnical Commission class II or III) of 80 to 100 meter hub height wind turbines rated between 1.5-2.0 megawatts of rated capacity available from turbine vendors such as Fuhrlander, Vestas and General Electric. Turbine availability, costs, and delivery timeline are subject to change, thus, these aspects should be continually evaluated throughout the project lifespan. Atlantic completed a wind resource review using Mass GIS, the New England Wind Map and AWS Truwind wind data. Wind speeds selected for the energy production estimates were based upon a correlation of the former Dartmouth Landfill Sodar data (See Appendix H for details) and our predictive wind mapping for the property. Met tower data was not incorporated due to concerns with the low wind speed measurements at 50 meter height and extremely high wind shear levels identified. These measurements may have been, in our opinion, influenced by the proximity of high trees in the area surrounding the met tower. Accordingly, the predictive wind speed of 6.7 meters per second, in our opinion, is a conservative approach and, accordingly generates a high confidence level in the predictive energy output. 2 Town of Dartmouth - Water Pollution Control Facility Turbine Feasibility/Siting Evaluation January 7, 2009 – Page 3 The key factors from our assessment are summarized as follows: Table 2 Energy Production Estimate for Sample Turbines Number of Turbines Turbine Model Hub Height (M) Wind Speed (m/sec) Operating Turbine Capacity Factor (%)* Energy Delivered (kWh/Year) 1 1 1 2 2 AAER A-1650 Vestas V82 AAER A-2000 AAER A-1650 Vestas V82 80 80 100 80 80 6.3 6.3 6.7 6.3 6.3 27% 30% 30% 27% 30% 3,994,000 4,289,000 5,399,000 7,828,000 8,579,000 2 AAER A-2000 100 6.7 30% 10,581,000 These projected capacity factors are higher than the currently operating turbines at the Massachusetts Maritime Academy, Hull Landfill (Hull Wind II) and Portsmouth Abbey but are consistent with the Hull High School (Hull Wind I) operating data. Key factors for capacity factor, in our opinion, are proper turbine siting, turbine height selection, appropriate turbine selection for the site-specific wind regime, and blade swept area. Key aspects of this location that are favorable for wind turbines are as follows: The site is located in South Dartmouth with an adequate wind regime at the installation heights of 80 to 100 meters, in our opinion, and is suitable for commercial turbine operation. The average projected wind speed at a height of 100 meters ranges from 6.75 meters per second along the western boundary of the locus parcel to 6.85 meters per second along the eastern border of the property. The WWTP property borders the undeveloped land to the north and northeast, giving the site significant property line setback distances for a turbine. Based upon our experience on other projects, in our opinion, noise impacts from turbine operation are expected to conform to noise requirements of the State of Massachusetts and will be significantly below the 10 db increase at the property line standard. The noise impacts are expected to be minimal due to siting distance from residences, predominant wind direction and existing tree cover on the property between the proposed turbine site and the residential properties. This is further supported by our experience on noise studies completed in similar turbine projects in other communities. The project is expected to have a moderate visual impact on the surrounding residential properties. The elevations of homes in the area are in the same or similar range as the proposed turbines locations and are located 1,000 feet or more away 3 Town of Dartmouth - Water Pollution Control Facility Turbine Feasibility/Siting Evaluation January 7, 2009 – Page 4 from the turbine. The turbines have been sited to minimize or eliminate off-site shadow flicker impacts. The distance from the closest Municipal Airport (New Bedford Municipal Airport) is greater than five (5) statute miles to the North Northeast. It is anticipated the FAA and MAC are likely to give the wind turbine a “No Presumed Hazard to Air Navigation”. The Town of Dartmouth has a Wind Turbine Bylaw in place, with an established procedure for utility–scale turbine approval/permitting. The concerns and constraints identified with this location with respect to wind turbine installations are as follows: There may be negative response/concerns from the residential neighbors in direct line of sight from the turbine. Some of the residential properties surrounding the site will be subject to various degrees of shadow flicker. As the project moves forward shadow flicker issues and potential impacts should be fully evaluated and reviewed with the residential neighbors that may be impacted to determine the best mitigation approach. Due to the extent of wetlands on the property, project permitting, survey, and construction budgets have been developed accordingly. The wind resource assessments (Met tower and SODAR) completed to date have shown relatively high wind shear levels. These shear factors should be incorporated into the final turbine model selection. CAPITAL CONSTRUCTION COSTS For purposes of this initial assessment, the following projected construction costs have been estimated: Table 3 Estimated Construction Costs Number of Turbines Vendor Hub Height in meters Preliminary Cost Estimate 1 1 1 2 2 2 AAER A-1650 Vestas V82 AAER A-2000 AAER A-1650 Vestas V82 AAER A-2000 80 80 100 80 80 100 $ 4,444,000.00 $ 4,444,000.00 $ 5,508,000.00 $ 8,407,000.00 $ 8,406,000.00 $10,529,000.00 4 Rated Machine Capacity (kilowatts 1,650 ) 1,650 2,000 3,300 3,300 4,000 Cost/kWh of Rated Capacity $2,690.00 $2,690.00 $2,750.00 $2,550.00 $2,450.00 $2,630.00 Town of Dartmouth - Water Pollution Control Facility Turbine Feasibility/Siting Evaluation January 7, 2009 – Page 5 For this assessment, Atlantic used the following financial assumptions for the turbine project financial analyses; 15 year debt term, 7% interest rate, 0% down. Renewable Energy Credits and ISO New England Forward Capacity Market payments were also included (Please see contents of Appendix A for more details). A detailed line item cost estimate for each model included in Appendix B, Cost Analysis, of this Report. Please note these are preliminary estimates based upon our best estimates for anticipated site-specific development costs. We have included a rough estimate of on-site utility interconnect costs which will require further assessment if the Town of Dartmouth elects to proceed with a wind turbine for this site. These budget costs should be re-evaluated and refined as the project moves forward. PROJECT COST/BENEFIT ANALYSIS Based upon the preliminary wind assessment checklist and supplemental information provided by Ron DiPippo, Chairman, Alternative Energy Committee and David Hickox. Department of Public Works Superintendent, the current cost of energy to the Town of Dartmouth DPW/WWTP is 15.78 cents per kilowatt hour for energy. This includes a waste water treatment plant/sewer system electrical demand of 3,437,560 kWh/per year at a cost of $531,026.62 and a water distribution system electrical demand of 1,991,152 kWh/year at a cost of $325,855.38. Cumulative Electrical Production Costs The cumulative cost review is a projection of the total cost per kWh generated by each individual machine over the anticipated 25 year project life span.* The estimated kWh production costs for the project life cycle (25 years) are shown on the following table: Table 4 Estimated Cost per Kilowatt Hour Number of Turbines Wind Turbine Model Hub Height (in Meters) Height of Turbine (Tip of Blade) 1 1 1 2 2 2 AAER A-1650 Vestas V82 AAER A-2000 AAER A-1650 Vestas V82 AAER A-2000 80 80 100 80 80 100 389‟ 398‟ 466‟ 389‟ 398‟ 466‟ 5 Estimated Realized Cost per kWh (with REC's and FCP) $0.0196 $0.0147 $0.0136 $0.0156 $0.0096 $0.0105 Estimated Raw Cost per kWh Produced (without REC‟s and FCP) $.0834 $.0777 $.0756 $.0794 $.0727 $.0725 Town of Dartmouth - Water Pollution Control Facility Turbine Feasibility/Siting Evaluation January 7, 2009 – Page 6 The amortized cost above is the total of all payments, interest, cost of planning and development, operations and maintenance for the life of the machine divided by the total amount of power (kWh) produced over the lifetime of the machine. The actual electrical production costs were developed using a Renewable Energy Credit Value of $0.044 per kWh and Forward Capacity market monthly payments from IS0-New England. The ISO forward capacity payments were calculated at $3.75 per kW of rated capacity. *The life span of a wind turbine, per wind turbine manufacturer‟s specifications, range between 20 to 25 years. There are numerous turbines still in service with life spans exceeding 25 years. At the end of the initial life cycle turbines are typically refurbished (new blades, gearbox, electronics, etc) and can either be kept in service or installed at a new site. Funding, Incentives and Financing: LORI Grant: A Massachusetts State Grant Program that distributes funding for the feasibility studies, design and construction of on-site wind turbines. The program currently requires that the applicant must consume greater than 25% of the capacity of the generation facility. Presently grant amounts for turbine feasibility studies are limited to $40,000 with an applicant cost share of 15%. Design grants are limited to $125,000 or 75% of actual costs. Construction grants are limited to $275,000, or 75% of actual construction costs. The Town of Dartmouth would be eligible for LORI funding as more than 25% of the electricity generated would be utilized on-site. Other projects we are working on are currently receiving MTC funding under the LORI program. Clean Renewable Energy Bonds (CREB’s): These are zero coupon bonds that are approved by the IRS. This bond would allow the Town of Dartmouth to issue debt for renewable energy projects at 0% interest. Conventional Municipal Bonds for Capital Construction Projects: General obligation bonds issued by municipalities for project construction financing purposes. Typical interest rates for these bonds are currently ranging from 4.0 to 4.5 percent. These bonds are for the purposes of assisting a municipality in the procurement of large and costly infrastructure projects. FINDINGS 1. In our opinion favorable siting and adequate wind resources exist for wind turbine development at the Town of Dartmouth Wastewater Treatment Plant and DPW site. 2. The Dartmouth DPW and Wastewater Treatment Plant site has an adequate wind regime and could, in our opinion, accommodate either one or two commercial grade (scale) wind turbines on 80 meter towers. A turbine over 200 feet in height will 6 Town of Dartmouth - Water Pollution Control Facility Turbine Feasibility/Siting Evaluation January 7, 2009 – Page 7 involve review and approval process (Determination of Significant Hazard) by the FAA and MAC for siting approval. 3. Turbines could be installed as net meter applications allowing the Town of Dartmouth to directly benefit from on-site avoided electrical costs. The most cost-effective turbine evaluated for the Dartmouth DPW/WWTP site (Vestas V-82 80 meter) is projected to provide 4,289,000 kWh per year of electricity. The Town of Dartmouth WWTP and DPW uses approximately 5,428,712 kWh per year on site. A single turbine, accordingly, will reduce the DPW/WWTP energy requirements by approximately 80%. 4. A second turbine installed under net metering provisions could provide electricity to any other designated electrical meters in the Town (Town Hall, School Department, etc.). 5. In order to erect the turbines the Town of Dartmouth will need a Special Permit granted by the Select Board to erect a wind turbine per the current wind energy bylaw. RECOMMENDATIONS The following recommendations are made based upon the work performed: 1. Town officials review this initial assessment report and siting recommendations for concurrence. 2. The Town of Dartmouth pursues public funding and incentives using this report as supporting documentation for feasibility financing. 3. Evaluate funding options including the MTC grant program, CREB funding sources and issuance of General Obligation Bonds, for proceeding with a single turbine project to supply net metered energy for Town of Dartmouth Wastewater Treatment Plant/DPW operations. 4. Meet with town officials to establish a public outreach program to provide public education on the project and the anticipated benefits/impacts, develop and evaluate/address the concerns of any neighborhood opposition to the project. 7