Marketing the Klamath Falls Geothermal District Heating system
- Geo-Heat Center, Klamath Falls, OR (United States)
The Klamath Falls Geothermal District Heating system was completed in 1981 and, until 1992, there was no formal marketing plan for the system. This lack of marketing and the system history of poor availability combined to reduce or eliminate interest in connecting on the part of local building owners and it served only the original 14 government buildings connected at start up. The revenue from these buildings, however, did not cover the entire cost of operating the system. As a result, the city was faced with a difficult decision - develop the revenue required to make the system self-supporting or shut it down. As a result, a marketing strategy for the system was developed. A flat rate was developed in which the rate is negotiable, but for most customers approximates 50% of the gas bill. In addition, the flat rate reduced customer retrofit costs because it is not necessary to buy a meter. Finally, the flat rate is a guaranteed value for the first 10 years of the contract. To reduce retrofit costs, the new marketing plan eliminates the requirement for a customer heat exchanger. New customers are now connected directly into the distribution system with district loop water used as the building heating medium. The state operates two programs which have been used in the marketing plan. The first of these is available only to taxable entities and is referred to as the Business Energy Tax Credit (BETC). This program offers business a 35% tax credit on the costs associated with connection to the geothermal district heat system (retrofit, design, permits, etc.). The second state program is the Small Energy Loan Program (SELP). This program will loan the entire cost of the energy project to the customer. The new marketing strategy for the Klamath Falls system has concentrated on offering the customer an attractive and easy to understand rate structure, reduced retrofit cost and complexity for this building along with an attractive package of financing and tax credits. 1 tab.
- OSTI ID:
- 5318648
- Journal Information:
- Geo-Heat Center Quarterly Bulletin; (United States), Vol. 15:1; ISSN 0276-1084
- Country of Publication:
- United States
- Language:
- English
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Marketing the Klamath Falls Geothermal District Heating system
Marketing the Klamath Falls geothermal district heating system
Related Subjects
GEOTHERMAL DISTRICT HEATING
MARKETING
GEOTHERMAL HEATING
RATE STRUCTURE
GEOTHERMAL SYSTEMS
OPERATING COST
FINANCIAL ASSISTANCE
KLAMATH FALLS
OREGON
RETROFITTING
SALES
TAX CREDITS
COST
DEVELOPED COUNTRIES
DISTRICT HEATING
FINANCIAL INCENTIVES
FINANCING
HEATING
KGRA
NORTH AMERICA
USA
150500* - Geothermal Energy- Economics
Industrial
& Business Aspects