As noted in Exhibit 23 the inclusion of DDT&E costs can have a significant impact on per unit costs. In the four examples for which DDT&E costs are provided, the total (undiscounted) amounts range from $44.0 billion to almost $71 billion. For the three Boeing examples, which all assume 62 satellites providing 620 gigawatts of energy to earth, the impact of DDT&E is to add approximately 3-5 mills/kWh in cost. The impact would undoubtedly be even more substantial if a smaller production run and gross output were assumed (the projected 620 gigawatts represents more than 1.2 times the total electrical energy output of the U.S. in 1974). The impact of spreading DDT&E over a smaller base is clearly shown in the ECON example which, with the smallest total DDT&E budget, shows the greatest incremental impact at over 8 mills/kWh since this cost is spread over only 235 GW. In a parallel calculation ECON indicates that at 109 satellites with 545 GW total output, the total cost would decline to approximately 31 mills/kWh indicating an incremental DDT&E impact of approximately 4 mills/kWh. The references provide only two examples of any formal treatment of DDT&E, Boeing (A17) and ECON (All). Only ECON illustrates the parametric treatment described in the conceptual cost model equation. (The Boeing example assumes a fixed production run of 62 satellites.) A graphic depiction of this approach has been excerpted from the ECON study and is shown in Exhibit 25. A textual description of the graph and its implication is quoted from page 127 of the study. "Figure 3.44 provides an economic analysis of the payback of the $44 billion development program. The analysis presumes that the total development burden is borne by the SSPS program, an assumption which is not, in our opinion, justified. "One x-axis (abscissa) is "time" in calendar years. A second x-axis indicates the cumulative number of 5,000 MW SSPS units operational at the beginning of the indicated year. The buildup—two per year until 2000, then four per year until 2025—would provide at least 10 percent of the United States incremental generation demand. "The y-axis (ordinate) is generation costs in mills/kWh of alternative (terrestrial) systems. The range of costs resulting from the Berkley/
RkJQdWJsaXNoZXIy MTU5NjU0Mg==