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HomeMy WebLinkAboutSoldotna Sports Complex Status Reports, Trip Reports, & Field Notes 1989 City of Soldotna QS © 177 North Birch @ Soldotna, Alaska 99669 @ Phone: 262-9107 January 25, 1989 Peter Hansen RECEIVE Alaska Power Authority \LE Box 190869 Anchorage, Alaska 99519 en 6 P3:00 89 «JAN 26 Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Peter: I am forwarding review comments received from David Bredin of Enstar Natural Gas Company regarding this subject. Sincerely, ee Richard Underkofler Soldotna City Manager Attachment (1) cc: Mayor & Members of the Soldotna City Council Rink, Inc. c/o Harris Anderson Ron Rainey, Homer Electric Association David Bredin, Enstar Natural Gas Company - Soldotna Waukesha Alaska, Corp. - Anchorage ENSTAR wo 1AR Natural Gas Company a. ey A DIVISION OF SEAGULL ENERGY CORPORATION 36225 Kenai Spur Highway Soldotna, Alaska 99669 (907) 262-9334 FAX (907) 264-3752 January 19, 1989 REC JAN . <3 1989 Mr. Rich Underkofler City of Soldotna 177 N. Birch Soldotna, AK 99669 Re: Central Peninsula Sports Center Cogeneration Proposal Dear Rich: I have reviewed the cogeneration proposal from Waukesha Alaska for the Central Peninsula Sports Center and can verify the following parameters pertaining to natural gas as being correct: Present Gas Consumption 615000 Cubic ft/Month Gas Consumption Converted 842466 BTU/Hr Natural Gas Cost -0028071 $/Cubic Ft Gas - BTU/Cubic Ft 1000 BTU/Cubic Ft Current Monthly Utility Cost to Purchase 665350 BTU/HR (gas) Boiler Energy Cost $1363 Additional Makeup Gas Cost AVG $363 Cogeneration System Cost of Production for 665350 BTU/HR Engine Fuel Costs $2859 Additional Makeup Gas Cost AVG $363 NOTE: Engine fuel costs calculated at gas costs as of date of report and per manufacturer’s fuel consumption calculations. ENSTAR raised its Gas Cost Adjustment as of the first of the year by $.0455 per thousand cubic feet (Mcf). With that increase, our large commercial, or "C" rate became $2.8526/Mcf (up 1.6%). There is also a monthly customer charge of $40.00 for each "C" customer. We anticipate filing for a general rate increase precipitated by Chugach Electric Association’s leaving our system to obtain gas service directly from a gas producer. The increase request is estimated to be 2% to 4% over our current rates and would be subject to approval by the Alaska Public Utilities Commission. ENSTAR’s gas supply contracts are indexed to the price of crude and fuel oil. An increase or decrease in oil prices should generally result in an increase or decrease to our customers, but not of the same magnitude. The cost of gas makes up only 60% of the total retail cost to our large commercial customers. We do expect oil prices, and therefore our natural gas supply prices, to increase over the long term. We would expect the same of electric prices due to the same indexing to energy prices. The proposal submitted by Waukesha is very interesting and I highly recommend you pursue their suggestion for having a professional engineer do a detailed analysis. Anchorage International Airport recently had a cogeneration feasibility study performed by USKH Engineers in Anchorage. RSA Engineering and MacInnes, Mattson, Baker Consulting Engineers in Anchorage also have local cogeneration analysis experience. You may want to contact one of them for additional information. Should you have any additional questions don’t hesitate to call. Sincerely, ENSTAR Natural Gas Company David W. Bredin Southern Division Manager cc: Ron Page Dan Dieckgraeff City of Soldotna GEES @ 177 North Birch @ Soldotna, Alaska 99669 @ Phone: 262-9107 January 20, 1989 np heres Peter Hansen Alaska Power Authority "9 ANS re Box 190869 OF JAN 24 P3 ‘56 4; € Anchorage, Alaska 99519 i Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Peter: I wish to thank you for offering to assist with the technical evaluation of the proposal we've received to install a cogeneration system at Soldotna's Central Peninsula Sports Center. Per your request, I am enclosing copies of utility billings from Homer Electric Association (HEA) and Enstar Natural Gas Company for the 1988 calendar year. I am also enclosing a copy of the review comments received from HEA dated January 16, 1989. HEA has concluded that the proposal is a "break even proposition at best". Would you mind serving a role as an "independent arbitrator"? As to your questions regarding the characteristics of the heating systems, please call Harris Anderson, Manager of the Sports Center. Anderson's phone number is 262 3150. If you need to make an on-site inspection of the facility to facilitate the analysis, we would be willing to underwrite your travel expenses. Sincerely, ae Richard Underkofler Soldotna City Manager Enclosures (2) cc: Mayor & Members of the Soldotna City Council Rink, Inc. c/o Harris Anderson Ron Rainey, Homer Electric Association David Bredin, Enstar Natural Gas Company - Soldotna Waukesha Alaska, Corp. - Anchorage Homer Electric Association, Inc. CENTRAL PENINSULA SERVICE CENTER 280 AIRPORT WAY . POUCH 5280 ¢* KENAI, ALASKA 99611 © (907) 283-5831 January 16, 1989 0 JAN 18 1989 Mr. Rich Underkofler City Manager City of Soldotna 177 N. Birch Street Soldotna, AK 99669 Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Rich: We are in receipt of your letter of December 26, 1988, with attached information from Waukesha Alaska Corp. regarding a cogeneration installation at Central Peninsula Sports Center. Their information is a cursory analysis of what they claim could be potential savings for energy costs at the Sports Center. Their analysis appears to be based on annual averages for electric and natural gas usage and the use of one gas engine generator to serve the load and possibly another for standby. While their analysis on first glance looks attractive and claims major energy cost savings, it is deficient on some rather important points. For this reason, we prepared an analysis for our own based on the electrical usage for the calendar year 1988. This analysis is attached for your review, and we are available to assist you in evaluating this project. We noted the following items that merit further review and discussion. First, one generating unit of the size specified would not have handled the peak loads experienced at the Sports Center the last three months of 1988. The unit specified is rated 250 Kw. A review of the enclosed analysis reveals that this peak load was exceeded in eight of the twelve months. Therefore the basic investment shown is deficient to serve the electrical load requirements. It is my understanding that Waukesha based their analysis on limited load monitoring information, rather than a twelve month usage history. The second important point is that the twelve month usage history reveals a very poor "Load Factor". This is a measure of the efficiency of the use of a demand metered service. This low Load Factor adversely affects your costs from Homer Electric and would also adversely affect the operating costs of a cogeneration installation. You may be able to realize some immediate savings without making any major investments if you could plan your operation to significantly cut your monthly peak demands. Page 2 City of Soldotna The third important point is that while their analysis mentioned the level of investment necessary to meet the demand, their bottom line monthly operating costs and payback calculation did not include any capital costs, only fuel and maintenance. Are we to assume that the City will have no capital costs for this installation? A true cost comparison is not possible unless capital costs are included. The fourth consideration should be the amount of money Waukesha has allocated for O & M. It appears from our experience that $810 per month for O & M is extremely low. You may want to check with other generation operators such as the oil companies to get a more realistic figure for this factor. Our analysis indicates that a cogeneration installation at the Sports Center would result in minimal, if any, savings if the full cost of the installation is included. Basically, our analysis is very close to the Waukesha analysis for the monthly operating costs excluding capital costs (HEA $4097 WAI $4032). When capital costs are factored in the annual cost is very near that for present gas plus electric costs (cogen. $95,925 present gas plus electric $98,719). Given some inaccuracies of estimating, we consider this a break-even proposition at best. At least there doesn't appear to be any large savings for rapid amortization of an adequate investment. To answer some other questions posed by your letter, we offer the following. If you indeed did install a cogeneration installation and desired to have Homer Electric provide standby power, it would be available at our fully allocated demand cost of $16.54/Kw. For standby to handle your largest demand of 333Kw this would amount to $5,508/month or $66,094/annually. This probably would not be the most economical alternative, but standby from some source would be necessary. As to what the five year outlook for your electric costs will be, we are now in the process of commissioning an effort to do some long range cost forecasting. This information should be available some time before mid-year. Until this becomes available we don't want to speculate on the outcome. We will pass this information to you when it becomes available. HEA is willing to work with the City administration and council to review any proposals such as this that may be offered. As Page 3 City of Soldotna already mentioned, it appears that control of demand through load control equipment may be the most cost effective way for the City and/or the operators of the Sports Center to control electric costs. Sincerely, | Ron Rainey VAL Central Peninsu District Manager SPORTCTR.RR:ss Attachment Homer Electric Association, Inc. CENTRAL PENINSULA SERVICE CENTER 280 AIRPORT WAY . POUCH 5280 ¢* KENAI, ALASKA 99611 © (907) 283-5831 January 27, 1989 Mr. Peter Hansen ‘89 JAN 30 P3:45 Alaska Power Authority Box 190869 Anchorage, AK 99519 Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Mr. Hansen: We received a copy of the request from Rich Underkofler to evaluate the cogeneration proposal for the Central Peninsula Sports Center. When you make your evaluation, please keep in mind that the proposal from Waukesha did not include sufficient capacity to carry their entire load and figures would have to be adjusted to include stand-by power from HEA or a backup unit furnished by the Sports Center. Sam Matthews, Manager of Engineering at HEA, has developed most of the figures we have used, so should you need additional information, please call him on 235-8167 or contact me at 283- 5831. Ne LBP faeree Ron Rainey LZ Central Peninsula strict Manager SPORTSCT.RR:ss cc: B. Kent Wick, HEA General Manager Sam Matthews, HEA Manager of Engineering Rich Underkofler, City Manager, City of Soldotna ’ City of Soldotna January 11, 1989 Brent Petrie U \ > Director of Agency Operation JANL7 1989 Alaska Power Authority ALASKA POWER Box 190869 AUTHORITY Anchorage, Alaska 99519 Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Brent: In follow-up to our recent phone conversation, I am enclosing some material I've received from Waukesha Alaska, Corp. regarding a proposal to install a cogeneration system at Soldotna'’s Central Peninsula Sports Center. This proposal was secured by Rink, Inc., our management contractor at the Sports Center. Rink, Inc. has requested funding in Soldotna's capital budget for next year to install a cogeneration system. Capital costs for installing the cogeneration unit are assumed to be $200,000. The calculations indicate that the investment could pay for itself in 4.9 years, if amortized at 7% per annum. Thereafter, cogeneration could save about $48,000 (1988 dollars) per year in gas and electric costs at the Sports Center. I would appreciate your review of this proposal as it may relate to other cogeneration projects the Alaska Power Authority has designed and built. We are thinking of handling this as a design/build project, so I am particularly interested in getting your ideas as to what should be included in the "performance specifications". Any suggestions regarding systems which have not worked for you would also be appreciated. You indicated that all the money APA presently has available for cogeneration projects has been spoken for. Is there a chance that you might be able to provide a loan or grant in your next fiscal year or sometime thereafter? Are projects of this sort eligible for assistance from the Power Authority? Thanks for your interest and help. Sincerely, 268. ULE ie a Richard Underkofler Soldotna City Manager Z Enclosures (2) cc: Rink, Inc. c/o Harris Anderson WAUKESHA ALASKA, CORP. 1301 HUFFMAN ROAD » P.O. BOX 111098 » ANCHORAGE, ALASKA 99511 & PHONE: (907) 345-6800 Telex: 902-5204 Cnn os a President: ROGER R. HAXBY, B.M.E., P.E. December 27, 1988 Central Peninsula Sports Center PO Box 3399 Soldotna, Alaska. 99669 Attn: Harris Anderson Dear Harris Subject: Cogeneration System for the Sports Arena | spoke with Rich Underkofler last week regarding the cogen job for the sports center. He said that he had presented the city council with the idea of cogeneration for the sports center, and that they were very receptive to the idea. He turned my results over to HEA for their comments, to see if they will provide better rates overall to the city. | suspect that better rates are probably not an option. But hopefully this will get pushed through HEA fora swift decision, good or bad. Rich indicated that he was going to get the project rolling for a design build scope of supply, with an Anchorage engineer. As we had discussed previously, we will need to get several things inserted into the specification. They are as follows: Maximum engine speed 1800 RPM Minimum engine displacement 1096 cubic inches Maximum full load BMEP 145 psi Full load exhaust emissions NOx-4 g/hph CO-2 g/hph HC(non methane)-29/hph Generator temperature rise 80 degrees C Generator set rating Prime power with 10% overload capability Engine to be supplied with an automatic lube oil changing system, to change the lube oil while the engine is operating. Bypass lube oil filters are also required. Engine supplier to be licensed distributor of the product for the State of Alaska. Subject to verification. The lower the BMEP, the longer the engine will last. The above BMEP just about identical to other larger Waukesha engines at 900 RPM. Exhaust emissions requirements are coming to Alaska, and will be enforced by the EPA. The above exhaust emission levels are requirements in California, and will meet future requirements for Alaska. The generator temperature rise specified, is for prime power, 24 hours per day. There is more copper in this generator compared to a generator with a 105 degree C rise. This will give you a longer service life at minimum extra cost(perhaps $700) a Alas Copco DmEEstTz SL ANE Equipment POWER SYSTEMS ENGINEERING & FABRICATION #® Machinery Sales = Rental ® Lease ® Service | would appreciate your assistance in getting these items into the specification. They will assure long term operation without environmental hassles, and will keep your service requirements to a minimum. Please call me if you have any questions. Very truly yours John E Haxby ce: File #2055 CPSC Folder HD20 JEH e ‘ WAUKESHA ALASKA, CORP. 1301 HUFFMAN ROAD « P.O. BOX 111098 ANCHORAGE, ALASKA 99511 & PHONE: (907) 345-6800 Telex: 902-5204 Ts Sen. nh President: ROGER A. HAXBY, 8.M.E., PE. December 14, 1988 City of Soldotna 177 North Birch Street Soldotna, Alaska. 99669 REE IVEDOEC 16 1089 Attn: Richard Underkofler Dear Mr Underkofler Subject: Cogeneration for Central Peninsula Sports Center Our ref: File #2055 Thank you for attending the Rink, Inc board meeting last night to hear the presentation on cogeneration for the Sports Center. | am enclosing an updated runout of the cogeneration savings calculations, correcting the average monthly demand charges to their actual figures. Average electrical energy costs, from page three, is $4,854/month. Average demand costs, from page three, consists of Electrical Demand Costs of $666 plus Avg Addit. Demand Cost of $786, for a total average monthly demand of $1,452. Total existing gas and electricity costs for the sports center average $8,032/month at the most recent gas and electric rates in effect in Soldotna. Cogeneration system costs, to duplicate the above, amount to $4,032/month. The system would create an estimated average savings of $4,000/month. Amortizing the installed equipment cost of $200,000 at 7% interest, with a monthly payment of $4,000, the principal amount would be paid off in 4.9 years. This information is reflected on page three of the calculations. | would highly recommend that the city or sports arena hire a competent engineer to recompute and confirm the figures that | have provided. | am available to meet with the city council to answer questions and also to meet with your engineers. Please feel free to contact me if you have any questions or need additional information. Very truly you / EHaxby | ' General Manager cc: Central Peninsula Sports Center-Harris Anderson BEE A Bian Compressed EET Presa Equipment POWER SYSTEMS ENGINEERING & FABRICATION ® Machinery Sales = Rental = Lease * Service Estimated Cogeneration Calculations VGF18GL Waukesha Alaska Corporation-(907)345-6800 Project Name: Central Peninsula Sports Center Today's Date December 14, 1988 Salesman: John E Haxby Site Conditions Present Gas Consumption 615000_ Cubic Feet/Month Gas Consumption Converted 842466 Btu/Hr Base Electrical Load(Monthly) 81000. KWH Base Electrical Load(Est) Peak Electrical Load Hours/Day Operation Days/Year Operation Demand Charge Electrical Charge Natural Gas Cost Altitude Ambient Temperature Minimum Exhaust Temp Specific Heat, Cp Boiler Efficiency Installation/Acess. Costs Gas-Btu/Cu Ft Maintenance Cest Estimate Assumed Finance Rate Generator Set Parameters Engine Speed Number of Units Baseload Type Engine Family 111 KW 242 KW 24. Hours 365. Days 6 _ $/KW 0.0599 $/KWH 0.0028071. $/Cubic Foot 8:0 _ Fest 60 Degrees F 350 Degrees F 0.255 Btu/Ibm-R 75% 100 % 1000 _ Btu/Cubic Ft 0.91. $/KWH 7% 1800 RPM Thermal MLP-$9.29 CEA-$8.33 MLP-$.0398 CEA-$.03531 Generator Set Model Selection Waukesha Modei VGF18GL Rated KW @ Std Conditions 111. KW KW Supplied 111 KW Dispiacement, Cubic In. 1096 CID BMEP 64 PSI Generator Set Base Price 100000 Fuel Consumption 1395200 Btu/Hr Heat Rejection, JW 375000. Btu/Hr Heat Rejection Intercooler 42900 Btu/Hr Heat Rejection Lube Oil 105000 Btu/Hr Heat Rejection Radiated 89000 Btu/Hr Exhaust Heat Rejection 262000 Btu/Hr Exhaust Air Flow 1064 CFM Exhaust Temperature 935. Degrees F Induction Air Flow 371. CFM System Calculations Exhaust Heat Recovery 195550 Btu/Hr Total Heat Recoverable 665350 Btu/Hr Recoverable Energy Effic 47.7 % Shaft Efficiency 27.1 % Total System Efficiency 74.8 % Qualified Facility Efficiency $1.0 %(42.5% Minimum) Estimated Radiation(Incl Gen) 111723.92 B8tu/Hr Addit. Makeup Gas Cost AVG 363 Total Energy Costs 8032 Current Monthly Utility Costs to Purchase 111 KWand 665350.07 Btu Electrical Energy Costs 4854 $ Electrical Demand Costs 666 $ Avg Addit. Demand Cost 786 $ Boiler Energy Costs 1363 $ $ $ Cogeneration System Cost of Production for 111 KWand 665350.07 Btu Installed Equipment Costs 200000 $ Engine Fuel Costs(Monthly) 2859 $ Est Maint. Costs(Monthly) 810 $ Addit. Makeup Gas Cost AVG 363 $ Total Monthly Costs 4032 $ Cogeneration System Savings 4000 $/Month Simple Payback Assuming Interest Rate of 7 % 4.9 Years Important Note The above results represent, for preliminary information purposes only, calculations involving certain estimated and assumed variables with respect to a generally proposed Project. Prior to any purchase of a cogeneration system, a prospective customer, or his authorized representative, should compute or confirm the above results in light of the entire project, as THE ABOVE RESULTS ARE NOT WARRANTED, EXPRESSLY OR IMPLICITLY, AS TO COMPLETENESS, ACCURACY, OR FITNESS. Date: 2/1/89 To: Brent N. Petrie f Director of Agency Operations 4 | I Through: Donald L. Shira { Director. Program Development & Facilities Operations Jerry Larson Manager of Rural - From: Peter N. Hansen WW Rural Systems Engineer Subject: Letter to the City of Soldotna ref. cogeneration project. Please find attached for your review and comment a draft letter with my initial findings. Meceinse ck lack, H [Po Me February 1, 1989. Mr. Richard Underkofler — City Manager City of Soldotna 177 North Birch Soldotna, Ak. 99669 Reference: Cogeneration proposal for the Central Peninsula Sports Arena. Dear Mr. Underkofler: : ) fle Ph your Argus orl engziuesring ¢ YoSF bomen svreconel - Thank-you for—giving-me—an-opportunityto—provide-you with —an _impartial—evaluation—of-this-proposal.. As you may know, the Alaska Power Authority has actively been promoting co-generation systems in Rural Alaska for several years and we have designed and built such systems in more than 20 different communities. There is nothing exotic about the methods and materials utilized, and properly designed, built, and maintained, such systems should provide substantial benefits over a number of years. APprgrs In reviewing this proposal, it was-ebvieus that the estimated savings had been calculated using average values for heating and power demands, and this always tends to provide a somewhat optimistic estimate of the potential benefits. Consequently, our "Computerized Waste Heat Utilization Simulation Program" was adapted to this project in order to compare actual demands to availability of power and heat in one hour increments over the entire year. Also, the proposal did not address issues such as the disposal of excess power and heat and part load fuel economy. The proposal anticipates 100% availability of the unit; yet it should be noted that any outage lasting longer than 15 minutes would have a significant impact on the economic benefits in the month, during which the outage occured. Compared to the proposal, these factors reduced the estimated benefits substantially, and while the project still appears to be feasible, it no longer appears to be the obvious choice. In order to find the most economic method of operating the proposed system, Homer Electric Association was contacted, and it was learned that a new rate structure will be proposed to the Alaska Public Utilities Commission within a few weeks. This rate structure will address some of the provisions in the existing rate structure, which in reality makes id possible to utilize HEA as a very inexpensive source of peak load capacity. While no details have been provided about specific changes in the rate structure, it is rather obvious that the proposed changes will have a negative effect on a project of this type. In order to determine the most economic methods in which to deal with the high energy costs for this facility, it is proposed that the following be done: 1. A cursory energy audit should be performed on the facility. by— __ Power Authority staff or others., This audit should establish the ~~ potential for reductions in demand and consumption of both power and heat through other means. Also, this audit should address the compatability of the existing systems to a co-generation system. 2. Once HEA’s new rate structure is known, the project should be re- evaluated using realistic values for future demand and consumption of both power and heat. The optimum size of the unit should be established through simulation and other issues such as insurance, environmental concerns, and realistic operating and maintenance procedures and expenses should be investigated. 3. Assuming that the project still appears feasible, a set of technical specifications and enforceable performance specifications should be developed and additional proposals should be solicited. 4. Such proposals should be evaluated based on technical as well as economic parameters and, assuming that a favorable proposal is identified, a design-build type contract should be developed in order to avoid any confusion about project responsibility. 5. Prior to any contract being signed, Enstar Natural Gas Company and Homer Electric Association should be invited to comment on _ the proposed project in its final form and should be given an opportunity to offer amendments to existing delivery contracts as alternatives to this project. While this project certainly is exciting and could offer significant benefits to the City of Soldotna, I would advige against making any decisions without reviewing all aspects and alternatives carefully. The Alaska Power Authority will be available to offer limited assistance in this process, and please do not hesitate to contact me with any comments and suggestions to this letter. Sincerely, _— Peter N. Hansen, P.E. Rural Systems Engineer or Brent N. Petrie Director of Agency Operations. April 12, 1989. Mr. Richard Underkofler City Manager City of Soldotna 177 North Birch Soldotna, Ak. 99669 Reference: Cogeneration proposal for the Central Peninsula Sports Arena Dear Mr. Underkofler: Please find attached a brief staff report regarding the feasibility of the proposed cogeneration facility for the Central Peninsula Sports Arena. While the installation may be feasible, it appears that it would be prudent to investigate alternative measures in order to reduce the energy expenses for this facility. Demand charges are obviously a heavy burden on the operating budget, and it would be our recommendation to undertake a program aimed at reducing these charges through demand management and conservation, We appreciate the opportunity to assist you; if there is anything else we can do for you or if you have any questions in regards to this report, please do not hesitate to contact me. Sincerely, ff Lhe ea Brent N. Petrie Director of Agency Operations Attachment as stated. PNH: BNP: aa 5512/956/1 City of Soldotna GEES 0 177 North Birch @ Soldotna, Alaska 99669 @ Phone: 262-9107 April 19, 1989 Brent N. Petrie Alaska Power Authority Box 190869 ALASKA POW, Nic Anchorage, Alaska 99519 AUTHORITY Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Brent: I've received your report reviewing the feasibility of cogeneration at our Sports Center and wish to thank you for assisting with the assessment. This proposal involved technical and economic parameters which were difficult for me to understand, but I found your report to be quite well done in terms of helping to comprehend what needs to be done. Please give my compliments to your staff. I hope to secure authorization to retain an engineer to follow-up on the energy conservation measures you have suggested. By a copy of this letter, I am forwarding copies of your report to all of the persons who have expressed interest in the cogeneration proposal. Thanks much! Sincerely, Ve Richard Underkofler Soldotna City Manager cc: Mayor & Members of the Soldotna City Council Rink, Inc. c/o Harris Anderson Ron Rainey, Homer Electric Association David Bredin, Enstar Natural Gas Company - Soldotna Waukesha Alaska, Corp. - Anchorage Tim Huber, Peninsula Clarion XC. D. Skee PR Hawn R. Weude Petes- 7 i ra City of Soldotna J Ah @QRGREEEAS © 177 North Birch @ Soldotna, Alaska 99669 @ Phone: 262-9107 April 19, 1989 P [= e Ez ) VE D Brent N. Petrie Alaska Power Authority API R21 1989 Box 190869 ALASKA POWie Anchorage, Alaska 99519 AUTHORMWEA Re: Cogeneration Proposal for Central Peninsula Sports Center Dear Brent: I've received your report reviewing the feasibility of cogeneration at our Sports Center and wish to thank you for assisting with the assessment. This proposal involved technical and economic parameters which were difficult for me to understand, but I found your report to be quite well done in terms of helping to comprehend what needs to be done. Please give my compliments to your staff. I hope to secure authorization to retain an engineer to follow-up on the energy conservation measures you have suggested. By a copy of this letter, I am forwarding copies of your report to all of the persons who have expressed interest in the cogeneration proposal. Thanks much! Sincerely, Va, Richard Underkofler Soldotna City Manager cc: Mayor & Members of the Soldotna City Council Rink, Inc. c/o Harris Anderson Ron Rainey, Homer Electric Association David Bredin, Enstar Natural Gas Company - Soldotna Waukesha Alaska, Corp. - Anchorage Tim Huber, Peninsula Clarion XG F tawwenw RP. tudw—