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St. Paul Correspondence 1986
Pribilof School District District Office Building Benver 6. Bowen, Superintendent Bick E. Luthi, Principal St. George School aR ES Ain St Boul, Alaska sacca + A WAR a Aer Board of Hducation 7 John R. Merculief, President 86 FEB 18 P4 06 Alexis Prokopiof, Bice President Mike Zacharof, Seeretary/Creasurer Anbdronik Rashevarof, Jr., Member Carol A. Melovidov, Wember January 30, 1986 Mr. Peter N. Hansen, Rural Systems Engineer Alaska Power Authority 334 West 5th Avenue, 2nd Floor Anchorage, Alaska 99501 Dear Mr. Hansen: The Pribilof School District Board of Education and I have reviewed the proposed agreement for the St. George waste heat project. We jointly concluded that it is a good agreement except in the area of maintaining a constant temperature for waste heat delivered the St. George School and the ten year obligation to pay LGM LE» I have taken the liberty of having my secretary type the agreement with the only changes being the addition of paragraph ClO, renumbering of other paragraphs and correcting the official name of the District. I have signed the included documents in behalf of the Pribilof School District. We are anxious to get this project operational. If you have further questions or concerns, please let me know immediately. Sincerely, Denver G. Bowen Superintendent Enclosures DGB:tdk We never give up helping our children - our most precious natural resource. ) PROJECT AGREEMENT This agreement between the City of St. George, The Pribilof School District, and the Alaska Power Authority outlines the responsibilities of the parties involved and the procedures to be followed in connection with design, construction, and start-up of the St. George Waste Heat Project. It is recognized by all parties of this Project Agreement that the Alaska Power Authority has no economic interest in this project and that the Owners of this project are the City of St. George and the Pribilof School District. It is also recognized by all parties of this Project Agreement that all funding for the procurement, shipment, and installation of all details of this project will by provided by the City of St. George and the Pribilof School District. The Alaska Power Authority will: Al. Perform a detailed review of the existing site conditions. A2. Design the Power Plant Waste Heat Recovery system with connection to three generators. This design will include all piping details for the generator cooling system. A3. Design a system to provide heat directly to the School boiler system, and to the Shop adjacent to the Power Plant. A4. Assist in the identification of equipment suppliers and help coordinate the procurement and shipment of equipment and materials for the project. AS. Be available for consultations in reference to practical details of the construction of the system. A6. Perform at least two on-site inspections during the construction period in order to assure correct installation. A7. Assist in start-up and run-in procedures and operator training as needed. A8. Provide a brief operations and maintenance manual for the system. The City of St. George will: Bl. Secure all necessary access and Rights of Way to City of St. George owned or operated property for the construction of this project. B2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. B3. Purchase and install all waste heat recovery equipment in the Power Plant as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Flat plate heat exchanger Circulating pump Expansion tank Amot valve on waste heat piping Amot valve on generator coolant piping All necessary piping as shown on drawings All necessary electrical connections Remote horizontal core radiator with controls Remote vertical core radiator with controls The portion to be completed by the City of St. George includes the wall penetration through the Power Plant wall facing the School. B4. If it is decided by the City of St. George to connect the Shop to the waste heat recovery system, then to purchase and install all waste heat recovery equipment as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Unit heaters All necessary piping All necessary electrical connections All necessary control valves B5. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. B6. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. B7. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. B8. Continue the provision of heat to the Pribilof School District for at least one year past the date at which the payment for heat delivered during the previous calendar year becomes due regardless of any dispute between the parties over such payment. The yearly payment for waste heat will be calculated using the following methodology: 1. The amount of waste heat delivered to the Pribilof School District during a specific year shall be considered to be equal to the difference between the School’s fuel consumption during that year and the average consumption during the last three years prior to the installation of the waste heat system. 2. The amount to be paid by the Pribilof School District shall be the number of gallons saved (as determined in Section B7, item 1) times the average fuel price per gallon as paid by the Pribilof School District for fuel delivered into the School’s tank in St. George times 0.5. The amount to be paid for waste heat delivered as calculated by the methodology described above shall be payable in full no later than 60 days after the end of the Pribilof School District’s fiscal year. BO. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on City of St. George owned or operated property or in any City of St. George owned or operated structure over the life of the project for performance monitoring. such system monitoring may include system shutdown for not more than 5 hours per year. B10. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. The Pribilof School District will: cl. Secure all necessary access and Right of Ways to Pribilof School District owned or operated property for the construction of this project. C2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. C3. Purchase and install all waste heat recovery equipment between the existing School heating system and the Power Plant wall penetration as described in section B3 of this Project Agreement. The installation is to be made as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Arctic pipe from the Power Plant to the School Heat exchanger in School boiler room Danfoss control valve in school boiler room 2 ea. new circulating pumps in school boiler room General piping in School boiler room Glycol for waste heat system and School boiler system c4. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. c5. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. C6. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. C7. Pay the City of St. George for waste heat received in accordance with Section B7 of this Project Agreement. c8. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on Pribilof School District owned or operated property or in any Pribilof School District owned or operated structure over the life of the project for performance monitoring. Such system monitoring may include system shutdown for not more than 5 hours per year. co. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. clo. In the event that the city of St. George fails to provide sufficient waste heat to heat the St. George School to a temperature of 60 __grees Fahrenheit for five _-osnsecutive school days, the school district may terminate this agreement without liability. Miscellaneous Provisions: Dil. Assignment of authority: The City of St. George and the Pribilof School District assign to the Alaska Power Authority full authority over all engineering decisions in connection with initial study, design, start-up, and run-in of this project. D2. Declaration of Cooperation The parties of this Project Agreement agree to make every reasonable effort to promote timely completion of this project within the 1986 construction season through responsiveness and cooperation. At the request of any one party Project Meetings with the parties of this Project Agreement will be held within 7 calendar days of the receipt of such request by the other parties. The party or parties requesting project meetings will pay all expenses incurred in connection with such meetings. D3. Limitations to Alaska Power Authority Expenses: Unless otherwise approved by the Alaska Power Authority Board of Directors, the Alaska Power Authority will not be committed to expend more than $15,000 on tasks outlined in this Project Agreement. D4. Limitations to Pribilof School District Expenses: The Pribilof School District will not be committed to expend more than $17,000 on this project. The above Project Agreement has been reviewed, agreed to, and executed by the following parties: Alaska Power Authority Robert D. Heath Date Executive Director City of St. George Richard Wilson Date City Manager Pribilof School District ate Denver G.Bowen Superintendent PROJECT AGREEMENT This agreement between the City of St. George, The Pribilof School District, and the Alaska Power Authority outlines the responsibilities of the parties involved and the procedures to be followed in connection with design, construction, and start-up of the St. George Waste Heat Project. It is recognized by all parties of this Project Agreement that the Alaska Power Authority has no economic interest in this project and that the Owners of this project are the City of St. George and the Pribilof School District. It is also recognized by all parties of this Project Agreement that all funding for the procurement, shipment, and installation of all details of this project will by provided by the City of St. George and the Pribilof School District. The Alaska Power Authority will: Al. Perform a detailed review of the existing site conditions. A2. Design the Power Plant Waste Heat Recovery system with connection to three generators. This design will include all piping details for the generator cooling system. A3. Design a system to provide heat directly to the School boiler system, and to the Shop adjacent to the Power Plant. A4. Assist in the identification of equipment suppliers and help coordinate the procurement and shipment of equipment and materials for the project. AS. Be available for consultations in reference to practical details of the construction of the system. A6. Perform at least two on-site inspections during the construction period in order to assure correct installation. A7. Assist in start-up and run-in procedures and operator training as needed. A8&. Provide a brief operations and maintenance manual for the system. The City of St. George will: Bl. Secure all necessary access and Rights of Way to City of St. George owned or operated property for the construction of this project. B2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. B3. Purchase and install all waste heat recovery equipment in the Power Plant as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Flat plate heat exchanger Circulating pump Expansion tank Amot valve on waste heat piping Amot valve on generator coolant piping All necessary piping as shown on drawings All necessary electrical connections Remote horizontal core radiator with controls Remote vertical core radiator with controls The portion to be completed by the City of St. George includes the wall penetration through the Power Plant wall facing the School. B4. If it is decided by the City of St. George to connect the Shop to the waste heat recovery system, then to purchase and install all waste heat recovery equipment as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Unit heaters All necessary piping All necessary electrical connections All necessary control valves B5. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. Bo. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. B7. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. B8. Continue the provision of heat to the Pribilof School District for at least one year past the date at which the payment for heat delivered during the previous calendar year becomes due regardless of any dispute between the parties over such payment. The yearly payment for waste heat will be calculated using the following methodology: 1. The amount of waste heat delivered to the Pribilof School District during a specific year shall be considered to be equal to the difference between the School’s fuel consumption during that year and the average consumption during the last three years prior to the installation of the waste heat system. 2. The amount to be paid by the Pribilof School District shall be the number of gallons saved (as determined in Section B7, item 1) times the average fuel price per gallon as paid by the Pribilof School District for fuel delivered into the School’s tank in St. George times 0.5. The amount to be paid for waste heat delivered as calculated by the methodology described above shall be payable in full no later than 60 days after the end of the Pribilof School District’s fiscal year. BO. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on City of St. George owned or operated property or in any City of St. George owned or operated structure over the life of the project for performance monitoring. such system monitoring may include system shutdown for not more than 5 hours per year. B1O. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. The Pribilof School District will: cl. Secure all necessary access and Right of Ways to Pribilof School District owned or operated property for the construction of this project. C2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. C3. Purchase and install all waste heat recovery equipment between the existing School heating system and the Power Plant wall penetration as described in section B3 of this Project Agreement. The installation is to be made as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Arctic pipe from the Power Plant to the School Heat exchanger in School boiler room Danfoss control valve in school boiler room 2 ea. new circulating pumps in school boiler room General piping in School boiler room Glycol for waste heat system and School boiler system c4. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. c5. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. C6. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. c7. Pay the City of St. George for waste heat received in accordance with Section B7 of this Project Agreement. c8. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on Pribilof School District owned or operated property or in any Pribilof School District owned or operated structure over the life of the project for performance monitoring. Such system monitoring may include system shutdown for not more than 5 hours per year. co. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. clo. In the event that the city of St. George fails to provide sufficient waste heat to heat the St. George School to a temperature of 60 degrees Fahrenheit for five consecutive school days, the school district may terminate this agreement without liability. Miscellaneous Provisions: Di. Assignment of authority: The City of St. George and the Pribilof School District assign to the Alaska Power Authority full authority over all engineering decisions in connection with initial study, design, start-up, and run-in of this project. D2. Declaration of Cooperation The parties of this Project Agreement agree to make every reasonable effort to promote timely completion of this project within the 1986 construction season through responsiveness and cooperation. At the request of any one party Project Meetings with the parties of this Project Agreement will be held within 7 calendar days of the receipt of such request by the other parties. The party or parties requesting project meetings will pay all expenses incurred in connection with such meetings. D3. Limitations to Alaska Power Authority Expenses: Unless otherwise approved by the Alaska Power Authority Board of Directors, the Alaska Power Authority will not be committed to expend more than $15,000 on tasks outlined in this Project Agreement. D4. Limitations to Pribilof School District Expenses: The Pribilof School District will not be committed to expend more than $17,000 on this project. The above Project Agreement has executed by the following parties: Alaska Power Authority Robert D. Heath Executive Director City of St. George Richard Wilson City Manager Pribilof School District Denver G.Bowen Superintendent been reviewed, agreed to, Date Date te AO, 1986 and PROJECT AGREEMENT This agreement between the City of St. George, The Pribilof School District, and the Alaska Power Authority outlines the responsibilities of the parties involved and the procedures to be followed in connection with design, construction, and start-up of the St. George Waste Heat Project. It is recognized by all parties of this Project Agreement that the Alaska Power Authority has no economic interest in this project and that the Owners of this project are the City of St. George and the Pribilof School District. It is also recognized by all parties of this Project Agreement that all funding for the procurement, shipment, and installation of all details of this project will by provided by the City of St. George and the Pribilof School District. The Alaska Power Authority will: Al. Perform a detailed review of the existing site conditions. A2. Design the Power Plant Waste Heat Recovery system with connection to three generators. This design will include all piping details for the generator cooling system. A3. Design a system to provide heat directly to the School boiler system, and to the Shop adjacent to the Power Plant. A4. Assist in the identification of equipment suppliers and help coordinate the procurement and shipment of equipment and materials for the project. A5. Be available for consultations in reference to practical details of the construction of the system. A6. Perform at least two on-site inspections during the construction period in order to assure correct installation. A7. Assist in start-up and run-in procedures and operator training as needed. A8. Provide a brief operations and maintenance manual for the system. The City of St. George will: Bl. Secure all necessary access and Rights of Way to City of St. George owned or operated property for the construction of this project. B2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. B3. Purchase and install all waste heat recovery equipment in the Power Plant as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Flat plate heat exchanger Circulating pump Expansion tank Amot valve on waste heat piping Amot valve on generator coolant piping All necessary piping as shown on drawings All necessary electrical connections Remote horizontal core radiator with controls Remote vertical core radiator with controls The portion to be completed by the City of St. George includes the wall penetration through the Power Plant wall facing the School. B4. If it is decided by the City of St. George to connect the Shop to the waste heat recovery system, then to purchase and install all waste heat recovery equipment as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Unit heaters All necessary piping All necessary electrical connections All necessary control valves BS. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. B6. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. B7. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. B8. Continue the provision of heat to the Pribilof School District for at least one year past the date at which the payment for heat delivered during the previous calendar year becomes due regardless of any dispute between the parties over such payment. The yearly payment for waste heat will be calculated using the following methodology: 1. The amount of waste heat delivered to the Pribilof School District during a specific year shall be considered to be equal to the difference between the School’s fuel consumption during that year and the average consumption during the last three years prior to the installation of the waste heat system. 2. The amount to be paid by the Pribilof School District shall be the number of gallons saved (as determined in Section B7, item 1) times the average fuel price per gallon as paid by the Pribilof School District for fuel delivered into the School’s tank in St. George times 0.5. The amount to be paid for waste heat delivered as calculated by the methodology described above shall be payable in full no later than 60 days after the end of the Pribilof School District’s fiscal year. BO. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on City of St. George owned or operated property or in any City of St. George owned or operated structure over the life of the project for performance monitoring. such system monitoring may include system shutdown for not more than 5 hours per year. B10. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. The Pribilof School District will: cl. Secure all necessary access and Right of Ways to Pribilof School District owned or operated property for the construction of this project. C2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. C3. Purchase and install all waste heat recovery equipment between the existing School heating system and the Power Plant wall penetration as described in section B3 of this Project Agreement. The installation is to be made as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Arctic pipe from the Power Plant to the School Heat exchanger in School boiler room Danfoss control valve in school boiler room 2 ea. new circulating pumps in school boiler room General piping in School boiler room Glycol for waste heat system and School boiler system c4. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. C5. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. C6. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. C7. Pay the City of St. George for waste heat received in accordance with Section B7 of this Project Agreement. C8. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on Pribilof School District owned or operated property or in any Pribilof School District owned or operated structure over the life of the project for performance monitoring. Such system monitoring may include system shutdown for not more than 5 hours per year. co. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. clo. In the event that the city of St. George fails-.to provide sufficient waste heat to heat the St. George School to a temperature of 60 degrees Fahrenheit for five consecutive school days, the school district may terminate this agreement without liability. Miscellaneous Provisions: DiI. Assignment of authority: The City of St. George and the Pribilof School District assign to the Alaska Power Authority full authority over all engineering decisions in connection with initial study, design, start-up, and run-in of this project. D2. Declaration of Cooperation The parties of this Project Agreement agree to make every reasonable effort to promote timely completion of this project within the 1986 construction season through responsiveness and cooperation. At the request of any one party Project Meetings with the parties of this Project Agreement will be held within 7 calendar days of the receipt of such request by the other parties. The party or parties requesting project meetings will pay all expenses incurred in connection with such meetings. D3. Limitations to Alaska Power Authority Expenses: Unless otherwise approved by the Alaska Power Authority Board of Directors, the Alaska Power Authority will not be committed to expend more than $15,000 on tasks outlined in this Project Agreement. D4. Limitations to Pribilof School District Expenses: The Pribilof School District will not be committed to expend more than $17,000 on this project. The above Project Agreement has been reviewed, agreed to, executed by the following parties: Alaska Power Authority Robert D. Heath Executive Director City of St. George Richard Wilson City Manager Pribilof School District Denver G.Bowen Superintendent Date Date and PROJECT AGREEMENT This agreement between the City of St. George, The Pribilof School District, and the Alaska Power Authority outlines the responsibilities of the parties involved and the procedures to be followed in connection with design, construction, and start-up of the St. George Waste Heat Project. It is recognized by all parties of this Project Agreement that the Alaska Power Authority has no economic interest in this project and that the Owners of this project are the City of St. George and the Pribilof School District. It is also recognized by all parties of this Project Agreement that all funding for the procurement, shipment, and installation of all details of this project will by provided by the City of St. George and the Pribilof School District. The Alaska Power Authority will: Al. Perform a detailed review of the existing site conditions. A2. Design the Power Plant Waste Heat Recovery system with connection to three generators. This design will include all piping details for the generator cooling system. A3. Design a system to provide heat directly to the School boiler system, and to the Shop adjacent to the Power Plant. A4. Assist in the identification of equipment suppliers and help coordinate the procurement and shipment of equipment and materials for the project. AS. Be available for consultations in reference to practical details of the construction of the system. Ao. Perform at least two on-site inspections during the construction period in order to assure correct installation. A7. Assist in start-up and run-in procedures and operator training as needed. A8. Provide a brief operations and maintenance manual for the system. The City of St. George will: Bl. Secure all necessary access and Rights of Way to City of St. George owned or operated property for the construction of this project. B2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al1-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. B3. Purchase and install all waste heat recovery equipment in the Power Plant as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Flat plate heat exchanger Circulating pump Expansion tank Amot valve on waste heat piping Amot valve on generator coolant piping All necessary piping as shown on drawings All necessary electrical connections Remote horizontal core radiator with controls Remote vertical core radiator with controls The portion to be completed by the City of St. George includes the wall penetration through the Power Plant wall facing the School. BA. If it is decided by the City of St. George to connect the Shop to the waste heat recovery system, then to purchase and install all waste heat recovery equipment as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Unit heaters All necessary piping All necessary electrical connections All necessary control valves B5. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. Bo. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. B7. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. B8. Continue the provision of heat to the Pribilof School District for at least one year past the date at which the payment for heat delivered during the previous calendar year becomes due regardless of any dispute between the parties over such payment. The yearly payment for waste heat will be calculated using the following methodology: 1. The amount of waste heat delivered to the Pribilof School District during a specific year shall be considered to be equal to the difference between the School’s fuel consumption during that year and the average consumption during the last three years prior to the installation of the waste heat system. 2. The amount to be paid by the Pribilof School District shall be the number of gallons saved (as determined in Section B7, item 1) times the average fuel price per gallon as paid by the Pribilof School District for fuel delivered into the School’s tank in St. George times 0.5. The amount to be paid for waste heat delivered as calculated by the methodology described above shall be payable in full no later than 60 days after the end of the Pribilof School District’s fiscal year. BO. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on City of St. George owned or operated property or in any City of St. George owned or operated structure over the life of the project for performance monitoring. such system monitoring may include system shutdown for not more than 5 hours per year. B10. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. The Pribilof School District will: Cl. Secure all necessary access and Right of Ways to Pribilof School District owned or operated property for the construction of this project. C2. Provide transportation, lodging and limited man power assistance to Power Authority Personnel on site as requested in connection with performance of Power Authority responsibilities as described in sections Al~-A8. Transportation to/from St. George will be paid by the Alaska Power Authority. C3. Purchase and install all waste heat recovery equipment between the existing School heating system and the Power Plant wall penetration as described in section B3 of this Project Agreement. The installation is to be made as specified and shown on the design drawings as delivered by the Alaska Power Authority. This responsibility will be limited to the following items: Arctic pipe from the Power Plant to the School Heat exchanger in School boiler room Danfoss control valve in school boiler room 2 ea. new circulating pumps in school boiler room General piping in School boiler room Glycol for waste heat system and School boiler system c4. In case any error, ambiguity, or other discrepancy is found on the design drawings as delivered by the Alaska Power Authority during the construction process, immediately stop all work on the items in question and notify the Alaska Power Authority that clarification or correction is needed. c5. Hold the Alaska Power Authority harmless for any and all claims against the Alaska Power Authority arising from and directly caused by actions in connection with the Alaska Power Authority’s involvement in this project, unless such claims are caused by gross negligence by the Alaska Power Authority. C6. Operate and maintain the system for at least 10 years from date of start up in accordance with the Operations and Maintenance Manual as delivered at project completion by the Alaska Power Authority. c7. Pay the City of St. George for waste heat received in accordance with Section B7 of this Project Agreement. c8. Secure access for Alaska Power Authority personnel or consultants on contract to the Alaska Power Authority to any part of the waste heat recapture system located on Pribilof School District owned or operated property or in any Pribilof School District owned or Operated structure over the life of the project for performance monitoring. Such system monitoring may include system shutdown for not more than 5 hours per year. co. On request provide Alaska Power Authority personnel access to and copies of any information or document related to any phase of this project over the life of the project from the date of signature on this Project Agreement. clo. In the event that the city of .St. George fails to provide sufficient waste heat to heat the St. George School to a temperature of 60 degrees Fahrenheit for five consecutive school days, the school district may terminate this agreement without liability. Miscellaneous Provisions: Di. Assignment of authority: The City of St. George and the Pribilof School District assign to the Alaska Power Authority full authority over all engineering decisions in connection with initial study, design, start-up, and run-in of this project. D2. Declaration of Cooperation The parties of this Project Agreement agree to make every reasonable effort to promote timely completion of this project within the 1986 construction season through responsiveness and cooperation. At the request of any one party Project Meetings with the parties of this Project Agreement will be held within 7 calendar days of the receipt of such request by the other parties. The party or parties requesting project meetings will pay all expenses incurred in connection with such meetings. D3. Limitations to Alaska Power Authority Expenses: Unless otherwise approved by the Alaska Power Authority Board of Directors, the Alaska Power Authority will not be committed to expend more than $15,000 on tasks outlined in this Project Agreement. D4. Limitations to Pribilof School District Expenses: The Pribilof School District will not be committed to expend more than $17,000 on this project. The above Project Agreement has been reviewed, agreed to, and executed by the following parties: Alaska Power Authority Robert D. Heath Date Executive Director City of St. George Richard Wilson Date City Manager Pribilof School District Quin M bower fondue 20,1196. Denver G.Bowen Superintendent ee : i Bat City of St. George St. George Island, Alaska 99660-7 RECEIVED Made aet es AUG 1984 Mr. Larry Crawford ' ‘R AUTECRITy Executive Director Alaska Power Authority 334 W. 5th Ave, 2nd Floor Anchorage, AK 99501 RE: Waste Heat, Wind and Industrial Park Requirements Dear Larry: In discussions with Brent Petrie St. George has become aware of the availability of assistance from the Authority. ’ i The City of St. George has recently been formed to take over the electricity system left by the National Marine Fisheries Service upon its withdrawal from St. George last October. The system has good points and bad ones. Our analysis resulted in raising electric rates substantially. We are looking for alternative sources of energy: 1. Waste heat is only partially utilized at this time on one of the generators. We need an analysis of the potential and assistance in implementation from your APA program. 2. The prospective harbor at Zapadni Bay is five miles from the Village and will require growing electric power supplies from both waste heat if available and base generation where necessary. We need to know which way to turn, given various alternative development patterns which may come to pass. Our construction camp, fishing enterprises and public water supply system in Zapadni are in need of power this summer and fall. 3. Wind energy experimentation may even have some potential for St. George's conditions (steady winds and good mechanical maintenance record). Would you advise us as to how to approach this potential source without sacrificing the well heeled diesel generation system now in place. We are interested in supplementing, not necessarily displacing, the present system until we are sure about it. We would appreciate knowing how the Authority can help St. George in the near future. ncerely, - Wilson ase D City Administrator cc: Mayor Max Malavansky whit 1689 C Street, #220 Anchorage, Alaska 99501 Telephone 90£2#6/2700 Council rf City of St. George St. George Island, Alaska 99660-7 Phone (907) 859-2263 April 2, 1985 Robert Heath Executive Director Alaska Power Authority 334 W. Sth Anchorage, AK 99501 RE: St. George Waste Heat Dear Mr. Heath: The City of St. George is trying to reduce energy costs to the community, including the St. George School, by capturing waste heat from its power plant generation. , With the assistance of your staff, Mr. Peter Hansen, we have determined the system requirements for St. George Island and have identified the following needs: Design review through the Rural Technical Assistance Program, by City of St. George personnel with guidance from Mr. Hansen. Technical assistance during the construction phase by APA staff. \ t Purchase of eauipment including heat exchangers, piping, pumps, and other accessories. This package will be matched with the new baseload 150Kw generator we are installing in July, 1985 and will link the three standby generators as well. The work will be done with inhouse expertise on a force account basis in order to save funds and assure local staff has necessary expertise to maintain the system for greatest long term efficiency. To do this we are requesting $50,000 in financial assistance for the purchase oi equipment. We appreciate the Power Authority providing the necessary technical support. Vee" Richard G. Wilson City Administrator ce: layor and Council Leland Dishnan, Pribilof Islands School District intendent. ard} W Ke 1689 C Street, #220 Anchorage, Alaska 99501 Telephone 907-276-2700 - 276-5027 City of St. George St. George Island, Alaska 99660-7 Phone (907) 859-2263 April 2, 1985 Robert Heath Executive Director Alaska Power Authority 334 W. Sth Anchorage, AK 99501 RE: St. George Waste Heat Dear Mr. Heath: The City of St. George is trying to reduce energy costs to the community, including the St. George School, by capturing waste heat from its power plant generation. With the assistance of your staff, Mr. Peter Hansen, we have determined the system requirements for St. George Island and have identified the following needs: Design review through the Rural Technical Assistance Program, by City of St. George personnel with guidance from Hr. Hansen. Technical assistance during the construction phase by APA staff. \ Purchase of equipment including heat exchangers, piping, pumps, and other accessories. This package will be matched with the new baseload 150Kw generator we are installing in July, 1985 and will link the three standby generators as well. The work will be done with inhouse expertise on a force account basis in order to save funds and assure local staff has necessary expertise to maintain the system for greatest long term efficiency. To do this we are requesting $50,000 in financial assistance for the purchase oi equipment. We appreciate the Power Authority providing the necessary technical support. -ae" Richard G. Wilson City Administrator cc: liayor and Council Leland Dishman, Pribilof Islands School District - eSuperintendent. XC. Ed Where's | a4 ak Goan) Ke 1689 C Street, #220 Anchorage, Alaska 99501 Telephone 907-276-2700 - 276-5027 “Poder Hanon December 5, 1985 City of St. George St. George Island Alaska, 99660-7 Attention: Mr. Richard G. Wilson Project: St. George Waste Heat Project Subject: Project Agreement Dear Mr. Wilson: Subsequent to your request of April 2, 1985 the Alaska Power Authority proceeded to assist the City of St. George with this project through the provision of a system design. Also Power Authority staff on several occasions provided technical assistance to City of St. George staff and to a City of St. George consultant as well as to Pribilof Islands School District staff. In each occasion the technical assistance was in reference to the above mentioned project. A draft Project Agreement was submitted with the system design and as it is now my understanding that construction of the waste heat recapture system is wel] under way, I would like to call your attention to this draft Project Agreement. A Project Agreement of this nature is technical assistance in order to allow the Alaska Power Authority to continue to provide the technical assistance services to the City of St. George and the Pribilof Islands School District. Please note that the purpose of this agreement is: 1. To ensure correct installation of the waste heat recapture system in a cost effective manner. 2. To facilitate optimum operation of the system in the future. ys. Te ga Alaska Power Authority liability to acceptable levels. Please note that the Alaska Power Authority is offering to provide these services at no charge to either party of the proposed Project Agreement. 213/514 rage « A slightly amended version of the draft Project Agreement has been attached for your use, Please note that this is indeed a draft; the final version would be a result of negotiations between the three parties, The Alaska Power Authority is willing to amend this Project Agreement in any way desired as Tong as the three main goals of the Project Agreement as outlined above are not jeopardized, In order to determine future Power Authority involvement in this project, I would appreciate hearing from you regarding this matter. Very truly yours, hile ON so Peter N. Hansen Rural Systems Engineer Attachment as stated PNH: it cc: Denver Bowden, Superintendent, Pribilof Island School District 2153/514 reget So Ree te SA. Pak Ta Ge stve ter awe Sia eo oN O, r+ ‘77 © _-y of St. George St. George Island, Alaska 99660-7 (@ Need re aypense fron Phone (907) 859-2263 Dec. 9, 1985 morphea Robert D. Heatt C> ir | DECEVE Executive Dire Alaska Power At Trvorg k Hn resues DEC 12.1985 334 W. 5th . t aw fA E . Anchorage, AK ! Tne. | ALASKA POWER RE: Intertie cL AUTHORITY Dear Mr. Heath: In our letter to you of July 15, 1985 we outlined the need to tie the power production in the City to the Harbor at Zapadni Bay which will have at least the minimum four customers when completed in October, 1986. Economic development is scheduled to begin upon harbor completion in late 1986 with on shore processing of cod, halibut, crab and other seafood products. The question of whether to build a new power plant for the Zapadni_ Bay Industrial Park or tie it to an enhanced City power plant seven miles away needs to be resolved with technical analysis. We therefore request: 1. Consideration of APA providing technical design assistance to address the issues that will have to be resolved. 2. Consideration of a 2% loan for the system improvements to be included in the FY 87 budget of APA. The timely creation of Alaskan jobs depends on _ power being available at the Harbor. We appreciate your consideration of this request at your earliest convenience. cc: City Council 1689 C Street, #220 Anco 6-2700 - 276-5027 City of St. George St. George Island, Alaska 99660-7 Phone (907) 859-2263 April 2, 1985 Robert Heath RECEIVE!) Executive Director Alaska Power Authority . 334 W. 5th APR 1 0 1985 Anchorage, AK 99501 RE: St. George Waste Heat Dear Mr. Heath: The City of St. George is trying to reduce energy costs to the community, including the St. George School, by capturing waste heat from its power plant generation. With the assistance of your staff, Mr. Peter Hansen, we have determined the system requirements for St. George Island and have identified the following needs: Design review through the Rural Technical Assistance Program, by City of St. George personnel with guidance from Mr. Hansen. Technical assistance during the construction phase by APA staff. Purchase of equipment including heat exchangers, piping, pumps, and other accessories. This package will be matched with the new baseload 150Kw generator we are installing in July, 1985 and will link the three standby generators as well. The work will be done with inhouse expertise on a force account basis in order to save funds and assure local staff has necessary expertise to maintain the system for greatest long term efficiency. To do this we are requesting $50,000 in financial assistance for the purchase of equipment. We appreciate the Power Authority providing the necessary technical support. 1 rely, Richard G. Wilson City Administrator cc: Mayor and Council Leland Dishman, Pribilof Islands School District Superintendent. oan W) Ke 1689 C Street, #220 Anchorage, Alaska 99501 Telephone 907-276-2700 - 276-5027 noe April 25, 1986 Mr. Denver G. Bowen Pribilof School District St. Paul, Alaska 99660 Subject: St. George School Waste Heat Project Dear Mr. Bowen: Please accept my apology for the very late reply to your letter of January 30, 1986. I have reviewed the revised Project Agreement and I do see a problem with the addition of Article C10. There will be days when the power plant does not have sufficient heat available to heat all the buildings connected to the system, especially during times with limited electrical load. Therefore, I do not find it advisable to include a provision that we know in advance cannot be met. The nature of waste heat systems on small power plants with limited electrical load is not to provide "firm heat" the same way they provide "firm power." The fact that "non-firm heat" is being delivered is, in my opinion, being compensated for through Article B8, which states that the consumer will pay only half the actual value of the heat received. (This ratio, can, of course, be changed if the con- sumer and the producer can agree hereto). Since the producer gets paid only for what is actually delivered, he is also in- terested in delivering as much heat as possible in order to recover his initial expenses. The proposed Article C19 does not provide any security for either party, whereas it provides a degree of uncertainty for the producer. It if happens that insufficient heat is available, the investments have already been made by both parties and the producer may suddenly face the threat of being unable to recover his investment through the sale of heat. T am unable to recommend to the City of St. George that the Project Agreement is signed in its present form; however, I will be happy to work with the Pribilof School District as well as with the City of St George in order to produce a realistic and fair Project Agreement. 4064/592/1 If you have any questions in regards to this project, please do not hesitate to contact me. Sincerely, (Lia IF lhe Soh coh ot Peter N. Hansen Rural Systems Engineer PNH: tg cc: Richard Wilson, City of St. George . 4064/592/2 CK mH ~.ty of St. George RECORD CoPY St. George Island, Alaska 99660-7 Phone (907) 859-2263 Dec. 9, 1985 mobert 0, neath PEGEED Executive Director Alaska Power Authority 2 334 W. 5th DEC 1 1985 Anchorage, AK 99501 ALASKA POWER RITY RE: Intertie from City to Harbor AUTHO Dear Mr. Heath: In our letter to you of July 15, 1985 we outlined the need to tie the power production in the City to the Harbor at Zapadni Bay which will have at least the minimum four customers when completed in October, 1986. Economic development is scheduled to begin upon harbor completion in late 1986 with on shore processing of cod, halibut, crab and other seafood products. The question of whether to build a new power plant for the Zapadni Bay Industrial Park or tie it to an enhanced City power plant seven miles away needs to be resolved with technical analysis. We therefore request: 1. Consideration of APA providing technical design assistance to address the issues that will have to be resolved. 2. Consideration of a 2% loan for the system improvements to be included in the FY 87 budget of APA. The timely creation of Alaskan jobs depends on power being available at the Harbor. We appreciate your consideration of this request at your earliest convenience. 1689 C Street, #220 Ancho 6-2700 - 276-5027 “LD - be What W / De : st. 27 RNC ~ ity of St. George)... St. George Island, Alaska 99660-7 : Phone (907) 859-2263 RECEIVES) JUN 26 1987 ALASKA POWER June 25, 1987 AUTHORITY Robert LeResche Executive Director Alaska Power Authority P. O. Box 190869 701 E. Tudor Rd Anchorage, AK 99519-0869 RE: City of St. George Request for Technical Assistamce Dear Bob: In discussions with staff we fimd that it would be appropriate to file loan applications for both a line extension to our new imdustrial park at Zapadmi Bay and other power projects. We will need to update the March 18, 1987 request to you to take into account the imcreased demand for service. This will require technical engineerimg assistamce from your staff to evaluate needs and prepare the necessary estimates and design documents which we as a small community cannot afford to do ourselves. With your approval, we will be meetimg with one of the staff engineers im the next few days to define the scope of this technical work. Thank you. erely yours, CORRESPONDENCE DISTRIBUTION ACTION: INFORMATION: Ris ~» Wilson. City Administrator cc: Mayor Max Malav DATE REC'D: | DATE DUE: 1689 C Street, #220 Anchorage, Alaska 99501 Telephone 907-276-2700 - 276-5027 polarconsult alaska, inc. ENGINEERS e SURVEYORS e ENERGY CONSULTANTS July 16, 1987 Alaska Power Authority P.Q. Box 190869 Anchorage, Alaska 99519-0869 Attn: Mr. Peter Hansen Rural Systems Engineer Subject: Cost Proposal For St. George Electrical Design Dear Mr. Hansen: Please reference our conversation Monday on the subject this above. We have made a cost proposal to design distribution system for the harbor. The proposal includes the addition of a materials takeoff for purchasing. also We have attached a breakdown of our estimate for the job. CAE, (ler arle Ausman Chief Energy Engineer Attachments as: 1503 WEST 33RD STREET e SUITE 310 e ANCHORAGE, ALASKA 99503 PHONE (907) 258-2420 e TELEFAX (907) 258-2419 polarconsult COST PROPOSAL FOR ST. GEORGE HARBOR DISTRIBUTION LINE DESIGN SCOPE OF WORK: The work shall consist in the design of a distribution system for the St. George Harbor. The design will be laid out on plain paper using drawings produced by others. A materials list will be provided. It is understood that the construction will be force account and will not need a high degree of specifications. In addition a field recon will be made on the potential to run a line from the harbor to the powerplant or similar location in the City proper. LABOR Ausman Field, 3 10 hr dys 3@ hours @ $68 $2040 Office 5 8 hr dys 4@ hours @ $68 $2720 Dahl Office 4 hr 4 hours @ $42 $s 168 Subtotal ] $4928 EXPENSES Air fare Penn Air Rt Anch to St. George & ret $840 Hotel & Perdiem 3 dys @ $15@/dy $450 Misc. Travel Expenses $ 5O Misc. Expenses, repro, telphone, supplies $100 Subtotal $1440 TOTAL $6368 - ~ity of St. George St. George Island, Alaska 99591-0651 Phone (907) 859-2263 Te 5 Po 859-2212 Sept. 29, 1988 Mr. Robert LeResche Executive Director Alaska Power Authority P. O. Box 190869 "AUTHORITY Anchorage, AK 99519-0869 RE: St. George Electrical System Projects Dear Bob: The City of St. George is constructing a new remote seafood industrial park at Zapadni Bay and upgrading Village facilities to basic safety standards. The Alaska Power Authority can be of critical assistance as supporting electrical systems are needed. With the help of APA's technical assistance staff (Peter Hanson) and two electrical engineering studies, IECO (1984) and Polarconsult (1987), Mayor Max Malavansky and the City Council have identified the following elements for assistance from the Authority. 1. Rural Technical Assistance (RTA) The Alaska Power Authority Board of Directors approved including St. George in the Power Project Loan Fund (PPLF) request for FY 90 in the amount of $1.5 million for transmission and distribution work. The next logical step is an engineering feasibility and preliminary design and cost estimate study this fall. In the course of that study, hopefully done by Earle Ausman of Polarconsult for continuity purposes, we anticipate that refinement of the demand and system requirements can be accomplished. In addition, the results of the study can assist the city in finalizing its grant and loan requests to the Authority. Enclosed are background engineering studies describing the following five elements. 2. Village Existing System Efficiency Project A. New 230 KV generator Funding source: PCE Utilities Efficiency Improvements. Approximate cost: $125,000 including waste heat recovery. Payback: To be analyzed under RTA. Purpose: Replaces two 1961 CAT 125 KV generators. Backup generator will be 150 KV CAT which, as the main power source currently, is presently exceeding maximum efficiency and is frequently overloaded. 1689 C Street, #220 Anchorage, Alaska 99501 Telephone 907-276-5027 Telefax (907) 278-0673 Robert LeResche Sept. 29, 1988 Page 2 B. Village distribution system safety/reliability improvements. Funding source: Rural Electrical Revolving Loan Fund (2% interest rate) Approximate cost: To be determined Payback: To be analyzed under RTA Purpose: Upgrade an old system which had been installed incrementally over the past 60 years by various Federal government representatives during the period the Island was under National Marine Fisheries Service control and ownership. The City of St. George was given responsibility for electrical service in 1983 at the time of Federal government withdrawal from the Island. Since that time the generation plant and portions of the distribution system have been improved. The rest of the system remains in essentially the same unsafe and high maintenance condition that was documented in the IECO report. On page 18 it was recommended to replace the unsafe and unreliable areas ("uptown" and "downtown") with a new 7.2 KV system. c. Fire alarm system Funding source: Rural Electrical Revolving Loan Fund Approximate cost: To be determined Payback: Safety Purpose: For situations where telephone and radio communication is interrupted or not available, a complete fire alarm box system is proposed. Robert LeResche Sept. 29, 1988 Page 3 3. New Generation and Distribution System - Harbor/Airport A. Generation Funding source: PPLF at 5% interest rate Approximate Cost: $1.4 million per Polarconsult and PN&D Customer base: Fish processors, airport, City harbormaster and docks, City shop, city bulk fuel facility, commercial/industrial firms and residential. Purpose: Respond to an industrial park development requiring an estimated 1-2 megawatts capacity. The new relocated Zapadni Bay airport (1989 construction) will require an FAA approved source of electricity to meet FAA standards. Additionally, bulk fuel storage of power plant fuel ($500,000) is included in the above estimate. The City is experiencing hardship with regard to financing electrical improvements and is utilizing grants wherever available. The City's inability to proceed with the electrical system with market rate financing is due to the precommitment of City General Obligation debt authority to the harbor construction financing. The City has no further ability to issue market rate debt instruments and therefore requests the lowest possible (5%) rate of interest allowable under law in order to make the project feasible. B. Distribution Funding source: PPLF at 5% interest rate Approximate cost: $300,000 per 1987 Polarconsult study Customer base: see above Purpose: Provide industrial park customers with service. As in the case of the generation facility, the City faces hardship in meeting market rate financing costs and requests consideration of the lowest possible interest rate (5%) allowable by law. Robert LeResche Sept. 29, 1988 Page 4 4. Intertie Between Village and Harbor/Airport Funding source: RERLF at 2% Approximate cost: $300,000 per 1987 Polarconsult study Customer base: Industrial/commercial and existing Village Payback: To be determined under RTA. If positive payback is identified, the City plans to request a grant for the Intertie Project under the PCE Utilities Efficiency Improvements program now under consideration. Purpose: City Council policy is to extend benefits to all. Economies of scale made possible by a tenfold increase in generation at the new 1-2 megawatt harbor facility should be made available to the original Village six miles away. Economies in staff overhead, cost of bulk fuel and freight are possible. In addition to substantial reduction of KwH costs to customers now receiving PCE subsidies, reliability will be a major goal through mutual backup. Summary The electrical needs of St. George's developing economy is clearly beyond the capacity of the Island to meet without assistance from the Alaska Power Authority. As we look to completion of the basic dredged harbor and airport next year, the City will be obligated to meet generation, distribution, and intertie needs as well as improving safety and efficiency in the existing village system. The first step this fall is authorization of technical assistance to provide further engineering and financial detail to these proposals. Your favorable consideration will be greatly appreciated. cerel urs, Ah) Le eee Tr dG. Wilson City Administrator CORRESPONDENGE dD ACTION: YISTRIT I TTA Enclosures NECRMS Too: cc: Mayor Max Malavansky Sue White, APA DATE REC'D: polarconsult alaska, inc. ENGINEERS ¢ SURVEYORS ¢ ENERGY CONSULTANTS February 22, 1989 City of St. George Meeting: As of this day with Alaska Power Authority Subject: Savings in State PCE costs. 1. Line Across Island Previous estimate for line about $214,000 New estimate, about $330,000 Major difference increase in cable price from $0.7 to $1.50 per foot. * *7% To add the telephone will be about $75,000 We are doing a estimate to determine what it will cost if Utilities of the Northland did the work themselves. One unknown is they state that they have some work to do at St. Paul. The question is what equipment are they bringing in and how much will it cost to mobilize it to St. George. This critical information is something you could find out. With data from the estimate you will be in a position to negotiate some type of amount with the utility. It would appear that if you took on the construction and offered to do the maintenance on the transmission section. Say from town to the airport that this will allow them to give you the job without union problems. The backhoe can not be charged off only for the line across the island, it is too expensive. But with electrical plus water in town it should be paid off this year. We do not know how it would be shipped and its shipping price? There is almost 5 kw of losses in the neutral current for the town electric system. This adds up to over $7,280 in fuel per year. Or over a 20 year period it has a present worth of about $72,800. The town electrical system is one big safety hazard from the primary side to the secondary. There is no redundancy for the 7.2 kv transformer which can fail and put the system out for a long time. The breaker system in the community is dangerous with a overload in the school and elsewhere resulting in the tripping of the generator breakers. All of the breakers should be check and/or replaced in a program to bring the system to reasonable safety standards. New generator is being investigated. The question is which unit to choose. The analysis will show that the 1200 rpm is less expensive. Lighting at the airport is only an occasional 10 kV. The ADA states that only a few hundred kW are used each month. They 1503 WEST 33RD STREET e SUITE 310 e ANCHORAGE, ALASKA 99503 PHONE (907) 258-2420 e TELEFAX (907) 258-2419 polarconsult would like the power brought to the pad where the garage for the maintenance equipment will be stored. Airport construction is scheduled for 1990. However, dredging is for this year and the dredging contractor will supply his own power. He will not be in a position however to supply power to the houses, and to harbor facilities. If the initial processors do not want waste heat then it is better the main generation be in the city unless they want very large amounts of power. The final report will explore and cost this situation in some detail to help determine the best course of action. As of now it is believed a line across the island will be the most favorable means of supplying the boat harbor and the airfield. With the loads now projected with the addition of a new machine there will be sufficient capacity for this situation. The cities largest current generator is rated at 150 kW. A new machine could be 150kW or 230kW and would have superior efficiency. However, if run for a long period lightly loaded the larger machine would not be as efficient. It is believed without a detailed analysis which is most difficult without proper asbuilts that a new 7.2 kv system in town will save considerable money in losses. In addition for the services in the community should all be 220 volt so that modern appliances can be used. New services should be made of material which can stand salt spray and all old equipment should be remove as it is a safety hazard. Contacts with Trident have shown that they still contemplate the need for 1.5MW of power and will still need waste heat. What is contemplated is that a powerplant would be constructed at Zapadni Bay with sufficient capacity for the harbor, airfield, salt water, fresh water and other utility pumping and for the processors. The plant would be run by the same crew that now runs the St. George plant with some augmentation. The plant would provide power to St. George which would change the efficiency of generation from 6.6 kwh per gallon to about 13 or so kwh per gallon. This would reduce the fuel consumed almost in half or from $75,000 to about $37,000 per year. The 20 year fuel savings without escalation would be in the order of $370,000 present worth. In addition the cost of manning the plant could be prorated as well. The old plant would have to be retained for standby purposes and could be used during the colder seasons where one of the units could be base loaded to gain the waste heat. The economics have not been fully detailed out on this yet but it remains an option which will be viable depending on fuel prices and the efficiency of the equipment. For the next several years power will be needed at the Bay. This power could be provided by onsite generation which would be quite expensive. Or this power can be provided from polarconsult the City. If the City provides the power it can use the extra heat generated to displace fuel at the School which has the potential to save about $10,000 or so per year. A brief summary of some of the savings which are possible is listed below. This represents a minimum if the Trident or equivalent facility is constructed. Fuel Savings* $370,000 Labor, $10,000/yr x 10 $100,000 Ditch money, a min of $2/ft $ 60,000 Generator, for next two years $ 25,000 @ Bay Maintenance above gen $ 10,000 Extra fuel above gen over City $ 30,000 Value of extra heat in City 0 Total $595,000 Maximum construction cost $330,000 Minimum savings $265,000 *Note fuel savings based strictly on efficiency. With larger tank farm, heavier oil, direct transfer the savings can be greater. Note also the costs of construction are based on meeting "current" REA standards. If the old standards are adhered to the savings will be about $1.50 per three phase foot or $45,000. Also $60,000 represents the offered price for ditching. The quoted price for the entire job is $250,000 and excavation and backfill have to be a substantial portion of this. It is possible the City can get more than $60,000 but there will be some additional labor required in added payments by Utilities of the Northland. It is evident from the above simplified analysis that putting in a cable system across the island represents a one time opportunity to save considerable sums of money over a period of years. It will never again be somexpensive to put in the system as it is with the added income from the telephone utility. It should further be recognized that a number of excavation jobs are needed over the next several years. No single one can finance a decent backhoe but they can all in concert and will together save the community and the State and Federal governments money. Sincerely yours; Saat (pew Earle Ausman ST. GEORGE ESTIMATE, CITY STG-ESTC ITEM | NUMBER PRIMARY LOOPS, 3P| Hud-Zap Sec | Zap-Store Store-PowerP WEST LOOP Primary, 3P N. Primary, 1P N.Sec, Common N.Sec, New N.Sec, Wire S.Primary, 1P N.Sec, Common N.Sec, New N.Sec,Wire Transformers | | | | I | | | | | | | | | | | EAST LOOP | Primary, 1P | Sec, Common | Sec. New | Sec. Wire | Transformers | | | | Transformers | Hud | Store, 3P | Mach+ Blub, 3P | Carpenter | City Hall | Equip Store I Church+Whse | | | | | | | | | | Fish Process PowerHouse CONNECTIONS Houses Store Mach, Blub Hospital Sect-Zap Community Hall] School | Church-Whse | Sectionalizers| CROSSINGS | BACKHOE, 33% | BREAKERS | 1120 170 2460 1270 600 530 55 1085 600 605 275 880 1430 570 780 1410 rPOorPOCOOrPRE BPP PPRP PRO 10 0.33333 ft ft ft ft ft ft ft ft ft 25kVA 15kVA 25kVA 37.5kVA 15kVA SOkVA SOkVA 15kVA 150kVA $8.95 $5.73 $3.68 $4.94 $0.71 $5.73 $3.68 $4.94 $0.71 $1,450.00 $5.73 $3.68 $4.94 $0.71 $1,350.00 $1,450.00 $1,780.00 $1,350.00 $6,475.00 $6,475.00 $1,350.00 $8,700.00 $700.00 $2,000.00 $1,000.00 $900.00 $900.00 $900.00 $900.00 $800.00 $2,000.00 $252.00 $90,000.00 $7,000.00 $10,024.00 $1,521.50 $22,017.00 $0.00 $0.00 $11,366.50 $3,438.00 $1,950.40 $271.70 $770.35 $3,438.00 $2,226.40 $1,358.50 $624.80 $10,150.00 $0.00 $0.00 $0.00 $8,193.90 $2,097.60 $3,853.20 $1,001.10 $1,350.00 $4,350.00 $1,780.00 $0.00 $0.00 $1,350.00 $6,475.00 $6,475.00 $0.00 $0.00 $0.00 $1,350.00 $0.00 $8,700.00 $0.00 $0.00 $32,200.00 $2,000.00 $1,000.00 $900.00 $900.00 $900.00 $900.00 $800.00 $8,000.00 $2,520.00 $29,999.70 $7,000.00 acreor eu Pei - = SUBTOTAL, CONSTR SUPERVISION PerDiem Air Fare ENGINEERING CONTINGENCIES SUBTOTAL MANAGMENT, GRAND TOTAL 12% 100 0.12 Hours Dys Ea Ea CONSTR TOTAL $30.00 $100.00 $900.00 $203,253 $239,878 | 1$203,252.65 | $3,000.00 | $1,500.00 | $1,800.00 | $0.00 | $10,000.00 | $20,325.27 | | | | | $239,878 $28,785 $268, 663 ~e u- Pe 2-2 poLARCONSULT ALASKAgINC. soe aati + LEY Se 2735 East Tudor Rd. Suiteggy. SHEET NO. eo oF ‘ANCHORAGE, ALASKA 995 va (907) 561-1933 CALCULATED BY DATE. CHECKED BY DATE. ieee oe oe Coble,mat 75,000"... £260) £2,809 11,702 Coble, Log. 2&,, AGO Te gs etoneotoes te TN ado eM (2,002. type AG GOP. 8,003. pp ese ew ies oe + 4,08/ FF 4G, 000__ 60,902 4%, GEO. ENV) ZE 4ngr: 3,909 ooo i ee es Lmeate @ 6a0 son 100, [2,929 19000. - : 22 ox Gi L Pesce, salices , fools , Tet: cle 020 6,202 ii aed ited LUG SO? Freel ae 1° ! nr iy al B53, 000 Seerionw — Atpoer 7 Wiel -~ 38005 Coble | met (0,02 @ -7oo —yece /s 0 Cable Leg Q0O@ F-25" 2500 Zo52 TRencG ya i 33200 @ 44,03 AZ 4o4 Le ger 25,022 F409 ee | /B6 202 181 S02 - Pee ne ese : Lo Pe oo Ay Oa ee HUE aun ; nud ee 3 Co aa J OTR F214, COO ea | a eee ete eae 25. 9a0..x 850) Le Sse EEE LLG wl i TH = “ey Gee hoy 29 4 Ae =. 4,000 Ee eg ees ahora a Ext cig (+ <5 So, oe Ns). “>, 3 (A sNCOMPOBATED Wnt Ar? & = ° 5 % * ” * 4 re % v ¢ s 2 ie vt 7 ‘Centenn’™ SAINT PAUL SAINT PAUL Community A Bicentennial Bicentennial I Community July 5, 1988 Brent N. Petrie Director of Agency Operations Alaska Power Authority P.O. Box 190869 701 East Tudor Road Anchorage, Alaska 99519-0869 SUBJ: FEASIBILITY OF VINDSYSSEL PROPOSAL ALASKA POWER AUTHORITY REF: (a) APA bnp ltr dtd 6/2/88 Dear Brent: Thank you for your letter and for the work the Alaska Power Authority did in the analysis of the Vindsyssel Wind Power Generation proposal. We regretfully agree that we have come to the end of the road in trying to develop viable commercial wind power in Alaska. We appreciate the commitment made by you and your staff and also the members of the Authority Board of Directors. Will you please. convey to them this note of appreciation. I feel certain that we shall have future opportunities to work with the Authority. We have deeply appreciated all the varied assistance we have received from the Authority and its staff, of which this is only one instance. Very truly yours, THE CITY OF SAINT PAUL Nex! heen a ie: Mee £7 ° Vern C. McCorkle City Manager / : Adu Ae xc: Charles Evans, WFG w/Ref (a) VCM/ek CITY OF SAINT PAUL POUCH 1, SAINT PAUL ISLAND, ALASKA 99660 (907) 546-2331 TELECOPY (907) 546-2365 eranielal APPROVAL OF RE-ALLOCATION OF FUNDS FROM THE ST. PAUL WIND PROJECT TO THE STATE-WIDE WASTE HEAT PROGRAM A. Action Item Approval of re-allocation of funds, previously allocated to the St. Paul Wind Project, to the construction of waste heat recovery projects. B. Background An Interagency Wind Project report published in November of 1984 identified St. Paul as one of 44 sites throughout Alaska with class 6 or 7 wind areas (average wind speed greater than 15.7 mph) . Further investigations by Power Authority personnel indicated that St. Paul probably has one of the best wind resources in the State; winds are strong and persistent, yet violent storms and other severe climatic conditions are rare. During the past four years City of St. Paul and APA staffs have worked extensively to make St. Paul the site of the first Alaskan wind farm of commercial size. Based on examples from other areas of the United States it was believed that commercial quantities of wind generated electricity could be generated and sold in St. Paul at competitive prices without state subsidies of any kind. Prior to Power Authority involvement in this project, strong local interest in the utilization of wind energy had resulted in negotiations between the City of St. Paul and a potential wind farm operator. To promote the use of wind power without providing a direct subsidy, the APA Board of Directors previously granted $400,000 to the City of St. Paul for the purpose of upgrading the existing diesel generating system, thereby making the integration of a wind farm into the utility system possible. However, the termination of the tax-benefits offered to wind energy producers at the end of 1986 in conjunction with the drastic reductions in the cost of fossil fuels, made the feasibility of wind energy production questionable, even in areas with low logistic costs. The following outlines some of the efforts made by City of St. Paul and APA staffs on this project: 2/12/85 APA crew visits St. Paul to evaluate current utility systems and to meet with local officials. 5/3/85 APA Board of Directors approves a $400,000 grant to St. Paul for the purchase of diesel generators, contingent on the signing of a wind power sales agreement. 6/85 APA staff finalizes St. Paul Electric Utility Infrastructure Report. 8/16/85 Flowind and the City of St. Paul sign a wind power sales agreement. 5/19/86 APA and the City of St. Paul sign grant agreement. 7/86 APA Board of Directors approves the City of St. Paul/Flowind wind power sales agreement as a basis for disbursement of $400,000 grant. 1986-1987 Flowind fails to meets its contractual obligations; work on the proposed wind farm appears to have ceased. 2/4/87 The City of St. Paul calls APA staff to request assistance for solicitation for alternative wind power contractor. 2/6/87 APA staff submits to the City of St. Paul a detailed list of technical requirements suggested for an upcoming Request for Proposals. 3/87 Through several contacts between St. Paul and APA staffs it is requested by St. Paul that APA staff undertakes the task of formally soliciting for a new wind power contractor. 4/24/87 APA mails RFPs to more than 100 entities in the U.S. and abroad and advertices in all relevant trade magazines. 6/15/87 Deadline for submittal of proposal; only one responsible and responsive proposal is received. (Other proposals require complete control of the local utility; this has previously been rejected by the City of St. Paul.) Vindsyssel proposes to install 3 wind turbines each rated at 185 kw. The proposed cost of power is $0.20 per kwh escalating at 7% per year 6/29/87 APA staff notifies the City of St. Paul that the Vindsyssel proposal does not appear to provide any economic benefits to St. Paul. 1987/1988 Through numerous contacts between the City of St. Paul and APA staffs, it is agreed that Vindsyssel’s proposal will not be economically beneficial to St. Paul and Vindsyssel is notified accordingly. 3/14/88 Vindsyssel submits revised proposal with a proposed power cost of $0.16 per kwh, escalating at 3% per year. 4/21/88 APA staff determines that the revised Vindsyssel proposal will not provide any economic benefits to St. Paul; current avoided costs are $0.081 - $0.084 per kwh. 6/2/88 APA notifies the City of St. Paul that the revised Vindsyssel proposal still does not appear to be feasible for St. Paul and that the $400,000 previously granted cannot be made available based on this proposal. 7/5/88 The City of St. Paul agrees that it is time to terminate the efforts on this project. (Copy of letter from the City of St. paul attached.) C. Issues and Analysis kL Benefits to the City of St. Paul. The current avoided cost with the proposed wind generating facility has been calculated at 8.1 - 8.4 cents per kwh. The proposed cost of wind generated power is 16 cents per kwh with an annual escalation of 3% per year. Even using a worst case scenario with rapidly increasing costs of fossil fuel, no economic benefits can be expected for the City of St. Paul. Even if the $400,000 previously granted to the City of St. Paul is counted as a benefit, no net benefits can be expected. 2. Benefits to the State. The utilization of wind generated power in St. Paul will not produce any savings to the Power Cost Equilization Program. 3. Benefits to the State from the Statewide Waste Heat Program. This program continues to provide economic benefits and to conserve energy in rural communities. APA staff continues to improve designs and construction procedures thereby reducing the cost of waste heat recapture installations and their maintenance. Recent projects have been built at approximately 1/3 of previous cost estimates. At the same time operations and maintenance costs have been greatly reduced without any reductions in system efficiencies and capacities. Benefits to the State result in reduced PCE payments to utilities, which charge for the heat, reduced community dependence on direct State subsidies for heating costs, longer life expectancy for some State-provided heavy equipment, which is now stored and maintained in heated garages, and direct payments for heat to the APA. D. Cost. There will be no additional costs from this action. The funds proposed to be re-allocated are available from the Rural Alaska Alternative Energy Development Program appropriation; SLA 1982, Chapter 141. E. Options. 1. Approve re-allocation of $400,000 from the St. Paul Wind Project to construct additional waste heat facilities in the communities of Aniak, Gambell, and Tununak. ee Deny approval. F. Recommendation Adopt Option 1, thereby giving staff approval to re-allocate the $400,000 to the Statewide Waste Heat Program for construction of additional waste heat facilities.