Malibu Hydro...Financial and Amortization                                  To index

This web site has been developed for a camp I love and a ministry I believe in. It is provided to inform interested persons on the technical aspects of this project. As I am not on staff or involved with the camps financial operations, I can't comment much on this area. What follows is some basic general information. Please contact Malibu directly if you wish details on this subject matter.

1. Present operating costs - updated March 2008
Most of ths web site was written in 2000 to 2003, to aid in fund raising for the project. As of March 2008, the price for a gallon of diesel fuel in the USA is now $ 4 per gallon, or about $ 1 per liter. This would translate into much higher operating costs if Malibu was still on diesel generators. It would appear we built the hydro plant just in time.

The annual fuel bill for diesel is in the order of 100,000 dollars as of 2000. The increase in transport vehicle fuel prices as of May 2001 will have an effect on Malibu's diesel fuel oil as well. One can only speculate what the future will bring.

2. Maintenance costs
Existing diesels require servicing, overhauls and oil changes. Cost figures are available for this aspect. Hydro systems of this nature require periodic greasing of bearings and also inspection and cleaning of the penstock intake. There is virtually no operating cost.

3. Project budget
The estimate for the project is Cdn$ 2,850,000 for a fully engineered turn-key system. No doubt there will be opportunity for Malibu to contribute labor, with Malibu also providing accommodation and some transportation.

4. Amortization
This hydro plant has the capability to produce 600 kW of electricity continually! If this was to be generated by diesel engines, the annual cost of this amount of power would be a staggering $ 1,051,200.00 based on a fuel cost of $0.20 per kWh. There are few things in life that pay a return as fast as an efficient hydro plant running continuously into a heavy load which would otherwise be powered by diesel engines. As there is generally very little cost in running a hydro system, savings are realized immediately.

5. Funding
This project has been made possible by donations from private and corporate sources. This writer is not involved in the financial proceedings of the Malibu Club and can therefore not really comment on such matters.