Mammoth Lakes Moving Forward with Geothermal District Heating Geothermal Energy Conference Direct Us

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Mammoth Lakes Moving Forward with Geothermal
District HeatingGeothermal Energy
ConferenceDirect Use DiscussionOctober 8,
2008Rick Phelps, Executive DirectorHigh
Sierra Energy Foundation
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• Project description
• Project benefits
• Analytical process findings
• Key recommendations
• Current project status
• Lessons being learned

Introduction
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• To deliver geothermal heat to residents and
  businesses at economic prices
• To partner with experienced third parties to
  mitigate risk for the Town of Mammoth Lakes
• To ensure that all residents and businesses are
  fully aware of the benefits of geothermal
• To promote Mammoth Lakes Mammoth Mountain Ski
  Area as an operating green resort.

Project description
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• Reduce costs
• Residents and businesses now spend 11-13 million
  annually for heating energy and almost 100 is
  from fossil sources
• Improve the environment
• Total annual tons CO2 is in the 30,000 tons/year
  range with the bulk produced by propane
• Showcase the resort town of Mammoth Lakes.

Project benefits
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• Received GRDA grant to structure a geothermal
  heating district for Mammoth
• Marketing Research
• Operator evaluations
• Legal structures

Analytical process findings
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Market Research

• Both qualitative quantitative
• 4 Focus Groups
• 200 in-depth phone interviews.
• Findings
• Geothermal heating is highly appealing
• But perceived as complicated
• Interest in signing up declines to 2 in 10 if not
  priced lower or equal
• Third party involvement believed to be critical
  for success.

Analytical process findings
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Operator evaluations

• 9 existing entities evaluated, including both
  public and private
• Strengths and weaknesses in selling, financing,
  building, operating and services rated
• A private entity and a public entity were at the
  top of the rankings.

Analytical process findings
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Legal structures

• Joint Powers Agreement
• Town utility entity
• Town utility entity with outside contracting -
  for operations, service and financing.

Analytical process findings
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• Form a Town heating entity - powers exist under
  the California Constitution
• Contract with an outside entity to provide
  district heating expertise in design, operation
  and financing
• Contract with local water district to provide
  customer service functions.

Key recommendations
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• Working with Town, under our CEC grant, to form
  the district heating entity
• Pursuing the possibility of buying heat from the
  Mammoth Pacific geothermal plant
• Identifying well site locations on privately held
  land - with geothermal rights.

Current project status
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Geographic Overview
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SPotential heat sources
LMajor loads
One Mile
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• Pursue technical and political partnerships
• But shun the politics of energy
• Promote every step and celebrate the progress
• And release specifics ONLY when known
• Realize that the project is both tangible AND
  intangible.

Lessons being learned