Utilities Generation Costs x Utilities Purchase Prices

In the Intratec Utility & Water Costs product, two types of data are presented:

1. Generation Costs: estimates of the operating costs of a unit for the utility generation
2. Purchase Prices: estimates for the values paid by an industrial customer for the utility supplied by an off-site facility

Generation Costs

The generation cost figures presented represent estimates of the operating costs of the utility system. For instance:

Cooling water generation costs include costs with clarified water make-up, chemicals and electricity required to drive cooling tower and pumps motors.
Steam generation costs include costs with fuel, boiler feed water make-up, chemicals, maintenance related to boiler operation.
Demineralized water generation costs include costs with raw water, chemicals, resins replacement and electricity.

Keep in mind that the generation costs presented do not include capital costs.

Purchase Price

The purchase price figures presented consist of estimates for the values paid by an industrial customer for the utility supplied by a typical large-scale off-site facility.

It is assumed that such utility system is part of a commodities manufacturing complex, and that the demand of such industrial customer is absorbed by the existing capacity. In this context, the industrial customer is not the owner of the utility system, in such a way that the price paid covers not only operating costs of the large-scale off-site facility (as presented in the case of generation costs), but also a return on the capital investment employed in the construction of such facility.

Updated on: 02/17/2023