The annual cost increases from $7,800 for Mill A to $54,300 for Mill 

 F. On a per ton basis, the cost decreases from a high of $1.44 for Mill A 

 to $6.00 for Mill F. The administrative personnel costs are summarized 

 in Table 9. 



Utility Costs 



Utility cost tiems include electricity, water, and fuel. The use data 

 and cost information were obtained from mills, engineering estimates 

 and secondary sources. Costs are shown in Table 10. 



1. Electricity — Electricity costs for the model mills are deter- 

 mined by estimating the kilowatt hours consumed per day and applying 

 a cost per kilowatt hour. Kilowatt hours are derived by determining 

 the number of horsepower hours per day times a conversion factor of 

 0.746. Motors under 100 horsepower are further adjusted by a factor of 

 0.85 because of reduced efficiency in smaller horsepower motors. Pellet 

 mill motors are treated differently since the above method did not pro- 

 vide satisfactory solutions in comparison to available data. These motors 

 consume 70.4 kilowatt hours per machine-hour for each 100 horsepower 

 of rating. 



Observed mills in New England paid between 2.8 and 3.0 cents a 

 kilowatt hour. A rate of 2.8 cents per KWH was adopted for the model 

 mills. On a per ton basis, the cost decreases over the range of mill sizes 

 considered from 60.3 cents for Mill A to 49.6 cents for Mill F. 



2. Water — Water requirements for the model mills are based on 

 boiler and employee consumption. An average of 34.5 pounds of water 

 is used for each boiler horsepower-hour and 100 gallons per day per 

 employee. 



Water consumption varies from 29,500 cubic feet per year for Mill 

 A to 341,000 cubic feet for Mill F. The cost, based on a local rate^, de- 

 creases from 1.42 cents per ton of feed for Mill A to 0.67 cents for Mill F. 



3. Fuel — Fuel requirements for the model mills are based on 

 steam usage for heating certain areas of the mills, the fat, and for pellet- 

 ing. Fuel consumption for heating space and fat is estimated at from 7.7 

 to 80.7 gallons per day depending on the mill size. Pelleting requires 

 1.86 gallons of fuel for each ton of feed pelleted. Total fuel consumption 

 varies from 41.5 to 644.8 gallons per day for the range of mill sizes con- 

 sidered. 



Each mill has a fuel storage capacity equivalent to approximately 

 the requirements of ten operating days. On this basis, only Mills D, E, 

 and F are able to receive truck-load quantities of fuel. 



All mills use No. 5 fuel oil which is purchased locally. Mills pur- 

 chasing less than truckload quantities are assumed to pay 10 cents per 

 gallon while other mills receive a truckload quantity discount of one 

 cent per gallon. On a per ton basis, the cost decreases moderately over 

 the range of mill sizes considered from 20 cents a ton for Mill A to 17 

 cents a ton for Mill F. 



7 $30.60 first 10,000 cu. ft. plus 17c/100 cu. ft. for all additional, semiannually. 



23 



