Marketing the Klamath Falls Geothermal District Heating System

Marketing the Klamath Falls Geothermal District Heating System

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Published: 1993

Total Pages: 33

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The new marketing strategy for the Klamath Falls system has concentrated on offering the customer an attractive and easy to understand rate structure, reduced retrofit cost and complexity for his building along with an attractive package of financing and tax credits. Initial retrofit costs and life-cycle cost analysis have been conducted on 22 buildings to date. For some, the retrofit costs are simply too high for the conversion to make sense at current geothermal rates. For many, however, the prospects are good. At this writing, two new customers are now connected and operating with 5 to 8 more buildings committed to connect this construction season after line extensions are completed. This represents nearly a 60% increase in the number of buildings connected to the system and a 40% increase in system revenue.