I.1 Project Name

OCEAN MOTION – Combined Energy System (CES)

I.2 Technology employed

Ocean Wave Energy Conversion – patented hydro-dynamic seawater pump (OMI WavePump)

I.3 Fuel Type

None

I.4 Specific Site (for determining transmission requirements and avoided costs). Attach documents to support site acquisition.

No specific site identified – CES can be deployed underneath a suitable pier or off-shore platform

I.5 Unit Capacity Net (MW) (to utility system)

Corresponding Gross (MW) – 50 MW for 35 pump system

Minimum – Output is easily varied from 0 to Maximum

Emergency capacities do not apply.

The OMI CES design and development is based on a simple, positive displacement hydrostatic seawater pump that is driven directly by ocean waves.  A scale model of the pump has been built to demonstrate it operation and development of a larger scale pump is needed to validate / test the calculated pump parameters in various wave conditions and pump farm configurations.  The scale model (approximately 1/10^th scale) single pump validation test will be followed up by a prototype installation at a suitable site.  Power Unit capacity is a function of the OMI WavePump which drives the production components of the OMI CES.  All of the production components are commercially produced items which would be sized to correspond to the pump capacity.  System capacity is determined by the following factors:

1.     Wave height

2.     Pump / system design – diameter, buoyancy/ballast, number of pumps, generator size (and if incorporated, sizes of filteration and electrolysis units).

Normal and emergency operating capacity is limited to the design of the generating units and flow / pressure capacities of the OMI WavePump farm.  Output is easily varied and for systems integrated with water filtration and hydrogen generation, the CES can be controlled to produce the product with the highest demand and revenue (electricity, water or hydrogen).  For this proposal, prototype parameters based on limited testing and calculations are provided for consideration:

Combined Energy System Specifications

The table below lists the estimated performance specifications for each of the products that the combined energy system is designed to produce.  These values are based on the following conservative assumptions used in the OMI Business Plan (page 63):

1.        WavePump size – 26 inch diameter

2.        Wave action – 9 foot swell with 10 second intervals

3.        WavePump output 1,900 GPM ea. & 11,000,000 GPD for 4 pump pilot system

4.        RO Filtration 40% efficiency using approx. 1000 psi WavePump output pressure

Electricity      Based on a production sized system output ranges from 5 to 50 megawatt

Water (RO)    4 pump pilot system – 4.4 million gallons per day or 13 acre ft per day; 35 pump production system – 29 million gallons per day or 90 acre ft per day

Hydrogen              Based on a production sized system output approximately 573 gallons / hour liquid hydrogen.

I.6 In-Service Date(s) (month & year). Attach a detailed schedule to support the in-service date

December 2006 – Prototype system could be in production within two years per the OMI Business Plan (page xx).  If a suitable location was located beneath a pier, the schedule could be significantly shortened. 

I.7 Estimated Plant Service Life Years

The OMI CES is expected to perform at design capacity for at least 20 years.  The utility production equipment, which includes the hydro-turbine electrical generator, RO filtration unit and hydrogen generation unit are readily available components with proven service records.  The OMI WavePump design is simple with only a couple of moving parts to maintain.  The pump is expected to operate in harsh environments with minimal affect from wear since the design does not require close tolerances be maintained.  Routine maintenance and upgrades are simplified by incorporating a quick-disconnect WavePump connection which allows individual pump change-outs without interrupting system operation.  The WavePump design also incorporates a “safe-mode” which floods the buoyancy vessel during storm conditions to protect the system.  This feature protects the most vulnerable component of the system and ensures the pump’s planned service life.

I.8  Power Purchase Agreement Duration Years (As a normal practice, Power Purchase Agreement Duration should not exceed the Estimated Plant Service Life.)

A Power Purchase Agreement would be sought for a duration that would provide for investor pay back with an agreed to return on investment (ROI).  The OMI CES profit produced from revenue is expected to pay off the investors in the first five years of operation with electric power alone.  Potable water sales would increase revenue and pay off could be up to two years earlier.  If hydrogen generation was incorporated and distribution / usage were developed, profit from this revenue would increase ROI in future years while further reducing petroleum dependencies.

I.9 Interconnection point, metering location, required modifications to ECO/HELCO/MECO system to integrate proposed NUG project

No specifics have been established for connection of the OMI CES into the ECO/HELCO/MECO system.  OMI site selection would include the available service delivery for electricity, water and hydrogen as part of the CES installation.  If a suitable pier were used for a prototype, electrical / water service would be metered to the ECO/HELCO/MECO and local water systems and provide these utilities to the immediate area.

I.10 Name of Contact

Hap Houser – CEO - OMI

OMI4US@aol.com

Dwight Houser – President - OMI

DFH007@msn.com

I.11 Conflict of Interest - list all principal parties and contractors and state any conflicts of interest they may have between this proposed project and any other alternative projects, either with a competitor or HECO/HELCO/MECO. If there are no conflicts of interest, so indicate.

There are no principle parties or contractors associated with this proposal at this time that could pose any conflicts of interest with any other alternative projects.

II.1 Full dispatchability (Unit must load follow between Normal Top Load and Minimum capacities.  Yes No  The utility will consider Qualifying Facilities without full dispatchability and will consider the degree of dispatchability in determining the value of the firm capacity. The value will depend upon the extent to which the capacity can be utilized by the utility’s system. Each respondent shall describe any operating or dispatch constraint and the source of the constraint (e.g., equipment limitations, environmental permits, fuel resource availability, or other sources). It should be noted that the constraints might impact the value of the firm capacity (if any) provided by the facility and the ability of the utility’s system to accept the capacity.

Dispatchability - the ability of a utility to control the output of a generation plant.

Operating or Dispatch Constraints:  High dispatchability – hydro-turbine generation can be controlled to follow load from zero to maximum generation capacity.  Source of energy from ocean waves is very reliable and OMI WavePump output is highly controllable.

Source of Constraints: None

II.2 Cycling capability (Complete shutdown or turn down to 0 MW net to system) on a daily basis?  Yes No 

The utility will consider Qualifying Facilities without full cycling capability and will consider the degree of cycling capability in determining the value of the firm capacity. The value will depend upon the extent to which the capacity can be utilized by the utility’s system.  Each respondent shall describe any operating or cycling constraint and the source of the constraint (e.g., equipment limitations, environmental permits, or other sources).  It should be noted that the constraints might impact the value of the firm capacity (if any) provided by the facility and the ability of the utility’s system to accept the capacity.

Operating or Cycling Constraints:  None, the OMI CES is designed to minimize maintenance operations on system performance by incorporating a ‘quick disconnect’ capability on the OMI WavePump.  This feature allows single pump change out without impacting system operations.

Source of Constraints:  None

II.3 Auxiliary Power Requirements for:

Normal Operations (from generator):  None

Normal Operating shutdown* :  None

Forced Emergency shutdown* :  None

Maintenance Outage* :  None

* net from HECO/HELCO/MECO system

II.4 Expected Capacity Factor for Each Month

Capacity Factor for the OMI CES varies little by month.  The Capacity Factor is expected to be nearly 100% because it is established by design of the WavePump.  Using the expected ocean wave specifications for a specific site, the OMI WavePump diameter and stroke dimensions are integrated with the buoyancy / ballast to produce optimum performance for year around operation.  The system operates continuously at up to 100% design capacity to produce electricity, drinking water and hydrogen gas. 

II.5 Expected Equivalent Availability Factor (NERC Definition) (annual equivalent hours available/8760) %

The OMI CES Equivalent Availability Factor is expected to be very high.  Ocean waves are very reliable and relatively constant with seasonal variations that can be anticipated.  Operational reliability for the OMI CES is expected to be very high.  The OMI WavePump incorporates a simple design that uses only a couple of moving wearable components.  It is expected to very durable in the harsh ocean environment.  Pump performance at design capacity is expected with minimal maintenance since the pump does not require close tolerances to produce high volumes and pressures.  Maintenance and upgrades are also simplified with quick-disconnect capability which eliminates system down time during single pump change outs.  System operations are curtailed during severe storms when the WavePump buoyancy vessels would be flooded to place the pump in a ‘safe mode’.

II.6 Equivalent Forced Outage Rate (NERC Definition)

(forced out hours + equivalent forced derated hours)

(forced out hrs + svc hrs + equiv. forced derated hrs during reserve shutdown) %

The OMI CES is not subject to forced outages and a Forced Outage Rate is not applicable.

II.7 Ramp rate Net (MW/minute) Gross (MW/minute) Ramp Rate

The OMI CES has not been evaluated for Ramp Rate specifications.  The hydro-turbine generator that would be used in the system is expected to be a commercially available, tested and proven design which will compare with other already performing hydro-turbine generators that operate with the high volume and pressures produced by the OMI WavePump.

II.8 Quick Load Pick-Up (QLPU)

The OMI CES has not been evaluated for QLPU specifications.  The hydro-turbine generator that would be used in the system is expected to be a commercially available, tested and proven design which will compare with other already performing hydro-turbine generators that operate with the high volume and pressures produced by the OMI WavePump.

II.9 Maintenance Outage Requirements - Specify partial and complete outage requirements in weeks for the number of years required for the cycle to repeat (For example, list time interval of major overhauls and the duration of overhauls)

The OMI CES is not subject to periodic maintenance outages where the entire system is shutdown.  Routine service and maintenance on redundant system components are designed to maintain utility output.  The utility production equipment, which includes the hydro-turbine electrical generator, RO filtration unit and hydrogen generation unit are readily available components with proven service records.  The OMI WavePump design is simple with only a couple of moving parts to maintain.  The pump is expected to operate in harsh environments with minimal affect from wear since the design does not require close tolerances be maintained.  Routine maintenance and upgrades are simplified by incorporating a quick-disconnect WavePump connection which allows individual pump change-outs without interrupting system operation.

II.10 Cold start heat input requirement in MBT

Not applicable

II.11 Hot start heat input requirement in MBTU

Not applicable

II.12 Number of hours the unit stays hot after shutdown

Not applicable

II.13 Specify all other operating constraints

The OMI CES is expected to have very few operating constraints.  Production components for RO filtration, hydro-turbine electric generation and electrolysis hydrogen generation are all commercially available with extensive operational history.  The OMI WavePump is a simple design with few moving wear parts.  The pump is expected to be very durable in the harsh ocean environment.  The most significant operating constraint is expected to be experienced during severe storms when the OMI WavePump would be placed in a ‘Safe Mode’ shutdown condition.

III.1 Capacity Charge

OMI has not established a capacity charge for contract terms.  Conservative estimates provided in the OMI Business Plan (available on request) indicate that electrical power can be produced at or below regulated market rates (.05 to .10 per kW).  The OMI CES is designed to produce potable water, electricity and hydrogen simultaneously for revenue.  Revenue from water produced is expected to be high and when hydrogen is sold, revenues will be higher.  Electricity costs are subsidized by revenues from water and hydrogen.

III.2 Energy Charge - Each respondent shall provide a formula that describes the pricing for the energy provided by the respondent’s unit as a function of unit output.

OMI has not established a specific energy charge for contract terms.  The OMI CES does not have any fuel costs.  

Variable Ops & Maintenance costs and other costs have been estimated in the OMI Business Plan (available on request).  These estimates are based on the CES producing potable water and hydrogen for sales revenue which would subsidize the electrical costs and allow for a lower electricity unit price.

III.3 Type of Capacity (firm or non-firm)  (See definition for firm capacity in Section V-A of the RE RFPP. See also Sections II.1 and II.2 of this Appendix A and response to Frequently Asked Question Q13.)

Firm capacity at CES design of 1 to 5 MW or up to 50 MW

III.4 Escalation terms (specifically state what indices to use for escalation, if any)

OMI has not established specific escalation values for contract terms.

Fuel – None  (As a normal practice, the Fuel charge is escalated using actual fossil fuel prices for fossil fuel technologies.)

III.5 Reliability terms or adjustments (if any) (Provide details on terms or adjustments)

OMI has not established specific reliability values or adjustments for contract terms. 

III.6 Options, such as black start, future fuel conversions, etc. and their pricing

OMI has not established specific options values for contract terms.  This element probably is not applicable to the OMI CES.

III.7 Payment Terms (describe when invoices will be rendered, when payments are due, period of time covered by invoice, and any other special terms regarding payments)

OMI has not established specific payment values for contract terms. 

III.8 Any other charge items from NUG to HECO/HELCO/MECO

OMI has not established any other specific charge item values for contract terms. 

III.9 Specify all other special needs and/or provisions (Use separate sheets as necessary)

OMI has not established any other specific needs and/or provisions for contract terms. 

1a. Provide respondent’s legal name, address, structure (e.g., sole ownership, corporation, joint venture, partnership, LLC, LLP, etc.), nature of business and description, number of years in business, number of permanent employees, address, federal tax identification number, legal names of parent company and/or subsidiaries, organizational structure of each entity, and state or country in which each entity was formed or incorporated.

Ocean Motion International, llc.;  (per the OMI Business Plan dated February 5, 2000)

·   -Registered in the state of Oregon on December 23, 1994 as a limited liability company.

·   -Using OMI’s patented WavePump, partnerships will be established with joint venture companies do deploy utility systems for costal communities which produce potable water, electricity and hydrogen gas at highly competitive unit prices.

1b. Provide a listing and background of officers, owners, or partners of each entity (including members of Board of Directors, persons or entities holding a 10% or greater ownership interest, general partner of a limited partnership, etc.).

OMI Key Principals:  (per the OMI Business Plan dated February 5, 2000)

Dwight F. (Hap) Houser – CEO - OMI

Ruth Houser

OMI4US@aol.com

Dwight Houser II – President - OMI

1DFH007@msn.com

1c. Provide articles of incorporation, bylaws, shareholder agreements, operating agreements and other information that describes respondent’s business practices.

OMI is licensed and registered in the state of Oregon on December 23, 1994 as a limited liability company.

1d. Provide a listing and background of project participants and management team (including those responsible for design, construction, permitting, operations and maintenance).

OMI has not established a specific management team. 

1e. Provide information on the organizational structure of the team and include any agreements, financial sheets, or other relevant information.

OMI has not established a specific management team. 

1f. Provide a listing of other renewable energy projects (facility name, location, capacity, fuel, status, and output purchaser) installed, owned or developed by project participant and management team

OMI has not deployed other renewable energy projects. 

1g. Provide a listing of other renewable energy projects (facility name, location, capacity, fuel, status, and output purchaser) operated by project participants and management team.

OMI has not deployed other renewable energy projects. 

1h. For all financed renewable energy projects installed, owned, developed, or operated by project participant and management team, identify underwriters, advisors, debt sources, etc.

OMI has not deployed other renewable energy projects. 

1i. Provide a listing of respondent contacts (name, company, telephone number, email address) for renewable projects or similar projects that are listed above.

OMI has not deployed other renewable energy projects. 

1j. Provide a listing and contact information of references that have knowledge of respondent’s experience.

OMI has not deployed other renewable energy projects. 

1k. Provide current financial statements of all entities involved as project participants or as part of the management team.  This shall include items such as audited financial statements not over 12 months old, debt ratings, annual reports, FERC Form 1, and any other applicable financial information.  If none of the above is available, respondent shall be expected to provide verifiable financial statements for the past three (3) years if available, and respondent’s Dun and Bradstreet identification number and most recent credit advisory report, where available.

Not Applicable

1l. Describe any and all completed, pending and potential litigation and regulatory proceedings that could affect the viability of the respondent’s proposal or the respondent’s financial stability, including without limitation any civil and criminal proceedings involving any principals of the respondent.

None

2a. Provide information on the magnitude and availability of resource, data collection and/or plans to collect data.

OMI does not have any specific plans to collect data.  However, this technology will continue to improve as it is expanded and re-deployed.  Operational and research data developed by OMI and supporting partners will result in continuous improvement of installed operating systems as well as all new systems.

2b. Provide information on commitments for supply and transportation of renewable resources, if applicable.

OMI does not have any specific information on commitments for supply and transportation of renewable resources.  For the OMI CES, they may not be necessary.

2c. Provide technical data on the renewable technology, including any studies or reports regarding the technology.

OMI holds a Utility Patent on it’s proprietary OMI WavePump technology.  (U.S. Patent # 5,411,377, dated 2 May 1995)

Several technical studies and reviews have been performed on the OMI WavePump and the OMI CES.  These can be provided on request.  Specifically:

·         OMI WavePump Engineering Performance Calculations

·         Academic Reviews (4)

In addition, scale (approximately 1/20^th  & 1/40^th ) models have been assembled for demonstration purposes.  The 1/20^th scale model has been tested in water with excellent results.  The next pump tests on an approximate 1/10^th scale model will demonstrate results in a wave tank.

2d. Provide information on the proposed renewable technology as used in other locations.

OMI is looking for other locations as well as financial support.

2e. Provide an update on the status of the vendor(s) of the renewable technology.

The OMI WavePump is not supported by a vendor as of yet.  All development of the pump and concept / plan has been financed by the patent holder.  All components other than the WavePump are readily available commercially produced and sold utility components.

2f. Describe conceptual designs and major equipment list.

See the attached OMI CES description sheet.

3a List all major permits required, including environmental assessments or environmental impact statements.

OMI has not developed it’s permitting requirements yet.

3b. Describe land and use rights for proposed project, such as location, ownership, current zoning, size, and cost of project site.

OMI has not developed it’s land acquisition or associated requirements yet.

3c. Provide status and copies of any agreements for any necessary land lease and easements, air and water permits, rights of way, and the like.

OMI has not developed it’s land acquisition or associated requirements yet.

3d. Describe and provide all licenses received or description of plans to obtain licenses

OMI has not acquired or developed it’s plans for  licenses or permits yet.

3e. Describe and provide all approvals required for completion of the project.

OMI has not developed it’s approval requirements yet.

3f. Describe projected emissions and waste streams, environmental impacts, including any studies or reports regarding the environmental impacts.

The OMI CES does not consume any fuels or external power and consequently produces no combustion emissions.  The RO filtration of seawater to produce potable drinking water does result in a brine effluent that would be discharged directly to the ocean with minimal impact to the waters in the vicinity of the system.  This would apply to a system deployed on an off-shore platform or a near-shore pier.  This would be reviewed during the permitting process.

3g. Describe level of community support and provide the communications plan to gain public support for the proposed project.

OMI has not developed it’s communications plan or established specific project community support.  However, during several public meetings held in California by the California Desalination Task Force, in 2003, OMI presented it’s proposal and several individuals in the meetings indicated interest.  This is being followed up on and OMI’s strategy is to establish community support at the same time as securing financial resources.

4a. Describe ability to conform to the commercial date of operation specified by Renewable Hawaii, Inc. (December 31, 2008).

OMI is confident that a production CES could be in operation by 2008.  This would involve the final testing of a 1/10^th scale pump in a wave field at the University of Oregon’s Hinsdale Test Facility in Corvallis and location of a suitable site.  Preference would be to select a pier that is near a population center on the Big Island in order to be able to connect into the community’s water and electrical distribution systems.  An existing municipal pier would be the most expedient  installation where an extension would be added or the system would be installed on and/or underneath the pier.  A small system (1 to 5 MW) may be preferable to provide electric and potable water service to a area immediate to the installation in order to demonstrate the systems capability and reliability. 

4b. Describe ability to expand at the proposed site.

The OMI CES can be easily expanded to increase capacity by adding modular units that hold WavePumps, hydro-turbine generators, RO filtration units and electrolysis generators.  Additional units can also be installed at locations near other coastal communities in order to reduce the capacity burden on existing distribution systems.

4c. Describe proposed role of Renewable Hawaii, Inc.

OMI has not developed any details regarding partnerships which would include Renewable Hawaii, Inc. in any venture yet.

4d. Provide location of known substation and transmission and distribution lines near the project location.

OMI has not developed any details related to any specific site or associated requirements yet.

4e. Identify provisions offered by the respondent for providing liquidated damages and payment for replacement power in the event of failure-to-perform by the respondent for proposals containing firm power deliveries.

OMI has not developed any details related to failure to perform yet.

4f. Describe permitting, regulatory, utility rules, and other issues which may delay or impede project completion or long-term operation.

OMI has not identified any issues that may impede plans for  licenses or permits yet.

4g. Describe any proposed subordination of Renewable Hawaii, Inc.’s rights in the event of default by the respondent to lenders.

OMI has not developed any details related to failure to perform yet.

4h. Provide project schedule with key milestones (include permitting, land lease, major equipment purchase, etc).

OMI has not developed any detailed schedules yet.

4i. Provide description of operation and maintenance (O&M) plan.

OMI has not developed any O&M Plans yet.

5a. Provide project pro forma (e.g., income statement, balance sheet and cash flow which show cost items and schedule for major equipment, electrical interconnection, and other costs).

OMI has not developed any financial plans yet.

5b. Describe the assumptions used to formulate the pro forma and pricing proposal (e.g., escalation factors, tax credits, tax rates, etc.).

OMI has not developed any product pricing plans yet.

5c. Provide proposed permanent financing approach (i.e., recourse debt, non recourse debt, common equity, preferred equity, etc.) and the extent to which financing will be provided by affiliated persons or entities.

OMI has not developed any financial plans yet.

5d. Provide proposed financing approach and schedule for project development, major equipment purchase, and construction phases, if different than the permanent financing and the extent to which financing will be provided by affiliated persons or entities.

OMI has not developed any financial plans yet.