| Crown Hill Farm: small hydro pioneer |
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In 2001, Lucien and Juliette Gunderman became pioneers in the micro-hydroelectric field when they developed and began operating Oregon’s first new licensed hydroelectric facility in 20 years. The Gundermans operate Crown Hill Farm, an 800-acre operation that includes sheep, cattle, hay, and timber near McMinnville, Oregon.
For the original project, Lucien took advantage of two existing ponds that store irrigation and livestock water from several small streams and springs on the property. He installed piping from the ponds to deliver water to two turbines in a powerhouse next to Baker Creek.
“The turbines have a total capacity of 30 kilowatts,” explains Lucien. “Several people told me not to skimp on turbine capacity.”
In 2005, Lucien constructed an additional storage pond on the west side of the property and piped the pond water to a new powerhouse. A small turbine in the west powerhouse develops enough power to run a pump which pumps water to the main storage reservoir, supplementing the volume of water available for power generation by the original project. The second system is self-sufficient, using only water power to run the turbine, pump, and a small generator that supplies power for the control system.
Lucien reports that the permitting process was challenging, with 21 agencies being able to comment on his project, but hopes that his experience will make inroads for other producers interested in small hydropower developments. He worked with several state and federal agencies, as well as the local utility, McMinnville Water and Light. The power generated by the facility feeds into the community power grid, and the Gundermans receive credit from McMinnville Water and Light for each kilowatt hour of electricity produced.
“They’ve told us that our facility has improved the quality and consistency of electricity delivered to the local area, and especially our neighbors,” Lucien reports. “In our agreement with McMinnville Water and Light, all power produced onsite is fed back into the grid, and metered in the process. A credit is issued for the generated power, which offsets our usage. If there is more generation than usage during the month, the excess is rolled forward, and credited as needed when generation is not possible, or there is not enough generation to cover the usage. As utility rates for power go up, it helps the project pay for itself more quickly.”
The Gundermans received a tax credit for 35% of the eligible costs of the hydropower projects from the Oregon Department of Energy (note: this credit was raised to 50% in 2007). “The Oregon Department of Energy was very helpful and willing to incorporate as many of our costs as possible into the credit,” Lucien reports. The credit is based on the percent of the project costs that can be recovered in a 15-year period. From that amount, producers now receive a 50% credit.
The Gundermans are looking at the feasibility of bringing in other sources of water from other areas on the farm. If feasible and cost effective, they plan to build an additional storage pond and pipe that water to the main powerhouse as well. Lucien continues to work on improvements to the system to refine and improve overall efficiency.
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