From: Kevin Muck
Sent: Thu Jan 16 11:38:47 2020
To: Gerald Fisher
Cc: Kristy Calene
Subject: Follow up information
Importance: Normal
Morning Gerald,
I just thought I would follow up, with a bit more info, that may or may not be of value to you, and how you make your decisions going forward.
The below table outlines, what we see are the direct savings to any payments made to PGE over the next ten years, either for the monthly bill, or End of Life billing on replacing HPS lights with LED’s, as they fail.
End of Life Billing (100/150W HPS Cobrahead) per Option B Failure
| $490
| ||||||||||
Year 1
| Year 2
| Year 3
| Year 4
| Year 5
| Year 6
| Year 7
| Year 8
| Year 9
| Year 10
| ||
Option B HPS Fixtures Remaining
| 339
| 332
| 326
| 319
| 313
| 306
| 300
| 294
| 288
| 283
| |
Estimated Annual HPS Failures
| 2%
| 2%
| 2%
| 2%
| 2%
| 2%
| 2%
| 2%
| 2%
| 2%
| |
Estimated Annual End of Life Invoicing
| $3,322
| $3,256
| $3,191
| $3,127
| $3,064
| $3,003
| $2,943
| $2,884
| $2,826
| $2,770
| $30,386
|
$285
| $279
| $273
| $268
| $263
| $257
| $252
| $247
| $242
| |||
Current - Annual Streetlight Billing (Lights Only)
| $69,749
| $69,464
| $69,185
| $68,912
| $68,644
| $68,381
| $68,124
| $67,872
| $67,624
| $67,382
| $685,337
|
Proposed - Annual Streetlight Billing (Lights Only - All Option A LED)
| $54,131
| $54,131
| $54,131
| $54,131
| $54,131
| $54,131
| $54,131
| $54,131
| $54,131
| $54,131
| $541,313
|
$15,618
| $15,333
| $15,054
| $14,781
| $14,513
| $14,250
| $13,993
| $13,740
| $13,493
| $13,251
| $144,025
| |
10 Year Savings with Option A LED + No End of Life Billing
| $174,411
|
The most important number is $174,411 over ten years. This is the savings to the city by going to option A led, on the remaining lights you have as option B, HPS. The assumption is that 2% of the lights fail a year, and are replaced with LED, option B lighting, and the city is billed for the End of Life billing.
So you realize a $144,025 monthly bill savings, and do not incur a $30,386 End of life billing cost (this is of course an estimate, we used 2% failure rate, as that is what we are seeing in the HPS, considering we will no longer have parts to repair them, as we move to maintaining LED only).
An additional consideration is you will have better lighting, leading to safer environment for your citizens realized in year one.
There are many instances, where I do not recommend option A lighting to a city or county, but in this case, unless you have available capital, you have a significant savings you can realize, by moving your option B lights, to option A.
Reach out if you need more discussion on this, or clarification.
Regards,
Kevin