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HomeMy WebLinkAboutEagle Intertie Analysis 1990Weatherization Service Areas and Service Providers Alaska Community Mat-Su Borough Development Corporation Area, South-Centri (AKCDC) Alaska (except for 3710 Woodland Drive Anchorage), Alaski Suite 2000 Peninsula, and Anchorage, AK 99517 Aleutian Islands (907) 248-2232 800-478-8080 Alaska Housing Juneau/Douglas Development Borough and Corporation (AHDC) Auke Bay 1800 Northwood Drive Juneau, AK 99801 (907) 780-4533 Municipality Municipality of Anchorage (MOA) of Anchorage, 4831 Old Seward Hwy, #104 Bird Creek, Eagle Anchorage, AK 99503 River, Peters Creek (907) 562-6360 Chugiak, Eklutna Rurat Alaska Northwest Alaska, Community Action Western Alaska, an Program (RurAL CAP) Southeast Alaska P.O. Box 200908 Anchorage, AK 99520 (907) 279-2511 800-478-7227 SIH, Inc. Fairbanks Northstai 650 21st Avenue Borough, Salcha Fairbanks, AK 99701 Fox, Esther (907) 452-5323 Tanana Chiefs Interior Alaska Conference (TCC) (Doyon Region) 201 Ist Avenue Fairbanks, AK 99701 (907) 452-8251 a AM fi il we iu yw euesv uw uuu "DEPT. OF HEALTH AND SOCIAL SERVICES P.O. 80x H.07 ti WS iit i JUNEAU, ALASKA 99811-0600 uu ey -1 1599 DIVISION OF PUBLIC ASSISTANCE ers ' Dear Concerned Agency: The 1990 Energy Assistance Program (EAP) will run from November 1, 1989, through June 30, 1990. The program serves eligible low-income Alaskan households by distributing funds or establishing credit with home heating suppliers on their behalf. The amount of EAP grants varies depending on household size, average gross monthly income, and the region of the state in which the household resides. Enclosed are new information sheets and applications. The poster you received last year remains the same, but if you need a new one let us know. Since there are changes in the new application, please destroy any old EAP applications you may have. We will not accept any prior year applications. EAP provides expedited services to eligible Cale. tf you fare clients facing a home heating crisis, call the EAP office (465-3058). EAP will accept collect calls from agencies who are aiding EAP applicants but not from applicants themselves. Please remember that an application must received no later than (fune30, 1390) in order to be ‘0 We will no long running a summer If your agency helps anyone fill out an EAP application, be sure to have the applicant provide proof of income for the 3 months prior to the month that the application is submitted. It is very important that applications contain adequate proof of income for each household member before being submitted to the EAP office in Juneau. Please inform your staff and clientele of the importance of income documentation. If an application is incomplete it will be returned or delayed, slowing eligibility determination. Copies of income verification are acceptable and all original documents sent as verification will be returned to the applicant. crisis program. If you anticipate your agency referring many clients to the program, you may request additional applications by contacting the Energy Assistance Program. Thank you for your cooperation. Sincerely, sty ete 17°" Vr Chaifn Program Coordinator Energy Assistance Program larfevor Enclosures f Fo ude beak = sth qreX - 0 ace cee Oat welee 2) amet | yeraie Ht, memes & / *y. OF HEALTH AND SOCIAL SERVICES / P.O. BOX H-07 JUNEAU, ALASKA 99811-0600 PHONE: - DIVISION OF PUBLIC ASSISTANCE / i 465-2058) THE ENERGY ASSIST/NCE PROGRAM FACT SHEET The Energy Assistance Program (EAP) jis administered in Alaska by the Department of Health and Social Services through the Division of Public Assistance. The purpose of the program is to give assistance to low-income household to offset the high costs of home heating energy. The EAP is 100 percent federally funded. The program runs from November 1 through June 30. BENEFITS The benefits given to an eligible household will be determined on the basis of that family's gross monthly income, home heating costs, housing type, and the geographic region in which it lives. Maximum grant amounts will vary in different regions of the state, ranging from $150 to $940. EAP grants are given once per program year per household. Crisis Intervention is also available. PAYMENT OF BENEFITS EAP will make payments to home heating suppliers on behalf of eligible households. Households do not have to have overdue bills to qualify. If the household's accounts are not overdue, credit will be established for home heating payments made for fuel oil, natural gas, electricity, propane, wood, coal, and other petroleum products used for home heating needs. When the grant is used up, the household's case is closed and all bills again become the household's responsibility. ELIGIBILITY Documentation of all household income for the past 3 months is required. Both home owners and renters (including those who pay for heating costs as an undesignated portion of their rent) may apply for energy assistance. Eligibility will be based on the applicant's averene gross monthly income for the 3 months prior to the month o application. Applicants with income at or below the appropriate level wi e eligible for energy assistance: Household Size Average Gross Monthly Income Gross Income for past 3 months 1 $ 994 $2,982 2 1,300 3,900 3 1,606 4,818 4 1,912 5,736 5 2,218 . 6 ,654 6 2,524 7,572 For each additional member add approximately $57, or $171 for 3 months. Any person whose application is denied or not acted upon with reasonable promptness, or whose benefits are reduced or terminated, has a right to a hearing before the Division of Public Assistance. If you desire a hearing you may request it by telephone, in person, or in writing, through the Director, Division of Public Assistance, Box H-07, Juneau, Alaska 99811. You must make your request within thirty (30) days after you are mailed a notice of a decision on your EAP case. The Division of Public Assistance is available to help you request a hearing. At the hearing you may represent yourself. You may also be represented by legal counsel (e.g., Alaska Legal Services Corporation) or by another person of your choice (e.g., friend or relative). Civil Rights The Civil Rights Act of 1974 states "No person in the United States, on the ground of race, color, or national origin, shall be excluded from participation or be denied the benefits of federal assistance." If you feel you have been discriminated against, you may file a complaint with the Division of Public Assistance or with the United States Department of Health and Human Services. APPLICANT CHECK LIST | have remembered: 0 To send proof of income (or 2 letters if | claimed little or no income) 0 To send a copy of my latest home heating bill U To read the agreement below, and sign and date my application. AGREEMENT If your household receives assistance, you must agree to the statement below. Any member of your household who deliberately breaks any rules and receives benefits to which they are not entitled will be required to repay the benefits and may be prosecuted. + l agree to notify the division of Public Assistance of any changes in address or number of household members within 10 days from the date | know of the change. + I certify that | have checked the information on the application carefully and that it is a true and complete statement of facts according to the best of my knowledge and belief. * | understand that it is against the law to make false statements and that | am subject to prosecution if | do. + |understand that a Department representative may call at my home, and may contact other people in order to verify my eligibility for assistance. | also understand that information | give may be verified by computer cross-matching with other agencies. + | authorize the Alaska Department of Labor to release to the Division of Public Assistance information about my eligibility for unemployment insurance and work credits. + lL authorize the Division of Public Assistance to communicate with my vendor(s) and other agencies on my behalf as it relates to the Energy Assistance Program. + | understand that my household can submit only one application for Energy Assistance per year. Furthermore, | certify that this is the only application submitted from or on behalf of my household. SIGNATURE OF APPLICANT WITNESS IF SIGNED WITH AN "X" TODAY'S DATE FEE AGENT AND OFFICE USE ONLY CHECKLIST: | have seen or included: ( Proof of 3 months income for every adult who has received income and an explanation for every unemployed adult. (J Complete housing and heating information and copies of recent bills. C) Client's signature and date. + | certify that | have checked the information on the application carefully and that it is a true and complete statement of facts according to the best of my knowledge and belief. + | understand that it is against the law to make false statements and that | am subject to prosecution if | do. + | understand that if this application is not complete to the best of my ability, | may not be paid. FEE AGENT SIGNATURE DATE PRINT NAME DAYTIME PHONE ADDRESS ADDITIONAL INFORMATION (if you need more space, attach another piece of paper.) REGIONAL OFFICES: 1990 ENERGY ASSISTANCE PROGRAM APPLICATION NOVEMBER 1, 1989 to JUNE 30, 1990 Anchorage 274-0583 Fairbanks 451-2806 Wasilla 373-2244 Kenal 262-9032 Cray AS dadiice Froula P.O. Box H-07, Juneau, Alaska 99811-0641 Phone: (907) 465-3058 Applications must be received or postmarked by June 30, 1990. PLEASE PRINT NEATLY APPLICANT INFORMATION ia OF HEAD OF HOUSEHOLD BIRTHDATE SOCIAL SECURITY NO. MAILING ADDRESS: OCCUPATION CITYNVILLAGE ZIP CODE DAYTIME OR MESSAGE PHONE STREET ADDRESS: AS HEAD OF HOUSEHOLD, DID YOU WORK OR RECEIVE INCOME DURING THE 3 MONTHS PRIOR TO THE MONTH OF APPLICATION? YES NO BIRTHDATE Applicants must contact the Energy Assistance Program with any change of address. OTHER HOUSEHOLD MEMBERS RELATIONSHIP TO APPLICANT (Wife, child, etc.) DID PERSON HAVE INCOME IN LAST 3 MONTHS? SOCIAL SECURITY NO. YES NO YES NO YES NO YES NO YES NO YES NO YES NO YES NO YES NO oo loo bo fo oo |oo|o0 jooloo Racial-Ethnic Heritage of Head of Household (OPTIONAL): UO White 0 Hispanic 0 AK Native or American Indian OD Asian or Pacific Islander 0 Black O Other Are you or anyone in your household: Age 60 OF OVEF ......sesssssesssessesseeeeeseesteeeeseeneeneenees OYes CINo Legally handicapped .........ssssscesesesseeseesneeneenenees OYes CINo Are you or anyone in your household receiving: Foodstamps.. .. OYes ONo AFDC—Aid to Families w/ Dependent Children. [1] Yes CINo Supplemental Security Income... - Social Security. Adult Public Assistance Veteran's Benefits Are there any other persons living at this residence who are not listed above?.................. L¥es [No Is there more than one household living at this residence? . . OYes CINo If you checked "yes" in either question above, you must answer the housesharing question in the residence information section of this application. Are any of the adults in your household eligible to receive energy assistance from a tribal or native organization in your area? .............eeeeeeeeee LJ¥es [No If you checked “yes,” has your household applied for energy assistance from that organization? ... Yes CINo Are any of the members of your household legal aliens admitted under Section 245A (amnesty) or 210A (replenishment (before deductions) (before deductions) 1 $ 994 $2,982 2 1,300 3,900 3 1,606 4,818 4 1,912 5,736 5 2,218 6,654 6 2,524 7,572 If more than six, for each additional household member add $57 per month or $171 for 3 months. REPORTING HOUSEHOLD INCOME You must report and provide proof of any income received by any member of your household for the 3 months prior to the month of application. For example, if you apply anytime in May, you must report any income received for the months of February, March and April. YOUR APPLICATION WILL BE DELAYED OR DENIED IF YOU DO NOT INCLUDE PROOF OF ALL INCOME RECEIVED BY ALL HOUSEHOLD MEMBERS FOR THE 3 MONTHS PRIOR TO THE MONTH OF APPLICATION. Examples of income include, but are not limited to, wages from employment; self-employment income; Social Security benefits and Supplemental Security; public assistance such as AFDC, OAA, APD; child support; pensions; unemployment benefits; rental or interest income; and so on. Examples of proof income include, but are not limited to, wage stubs or a letter from your employer, award letters, direct deposit slips, copies of checks, profit-loss statement for self-employment (listing all income received and reasonable business expenses forthe 3 month period.) Please explain any gaps in receipt of the income described below. INCOME CODES (WA) Wages (Ul) Unemployment Insurance (SE) Self Employment (Tl) Tips or Gratuities (VB) Veteran's Benefits (Dl) Dividends & Interest (AFDC) AFDC (APA) Adult Public Assistance-OAA,APD,AB (PE) Pension (other than Veteran's Benefits) (SSA) — Social Security (Rl) Rental Income (SL) Student Loans (SSI) Supplemental Security (CS) — Alimony and Child Support (SG) Student Grants (GR) General Relief (WC) Worker's Compensation (OT) Other (please explain) “---- ome oe eee eee = ———— pee 0 1-3 attached units O Duplex O Trailer (35 ft. or more or with O Pick-up camper 0 4or more attached units lean-to for living space) Boat 0 Group home 0 Hospital Nursing home Pioneer Home O Military housing O Tent* Boarding home* Hotel or motel* *Please provide proof of 2 months' residence. Do you own your home? [] YES [JNO OR = are you O buying O renting O paying space rent How much do you pay each month?. How many bedrooms? RENTERS/HOUSESITTERS (if you are housesitting, please provide proof that you are paying heating costs.) OWNER, LANDLORD, OR MANAGER NAME Do you pay for heat? What is the main source of heat for your residence? Is your rent subsidized by: [J ASHA O HUD 0 Section 8 OOFHA OD Other OD Not subsidized HOUSESHARING: List the names of other roommates or households living at this residence but not included on this application, and describe how expenses are shared. REPORT ALL GROSS INCOME RECEIVED BY ALL MEMBERS OF YOUR HOUSEHOLD DURING THE 3 MONTHS PRIOR TO THE MONTH OF APPLICATION. NAME TYPE OF INCOME GROSS INCOME FORM OF PROOF FOR OFFICE USE (USE ABOVE INCOME CODES)| FOR3 MONTHS | SENT WITH APPLICATION ONLY HEATING AND ELECTRIC INFORMATION IN CASE YOU ARE IN DANGER OF RUNNING OUT OF FUEL OR BEING DISCONNECTED, contact your local Public Assistance Office, Fee Agent or the Energy Assistance program immediately. WARNING: Continue to pay your bills. Due to mail and processing time, it may be 30 days until your application is processed. If your bills are overdue, contact your heat or utility provider to set up a payment plan or budget billing plan. Let them know that you have applied for energy assistance. What is the main FUEL type used to heat your home? ATTACH COPIES OF RECENT HEAT AND ELECTRIC BILLS TO THIS APPLICATION. Failure to send copies of heat and electric bills or the name of your vendor may result in delayed processing or denial of your application. ESTIMATED | AVERAGE AMOUNT OF NAME OF SUPPLIER ACCOUNT NUMBER NAME APPEARING ON BILL YEARLY FUEL] — BILL _IN CURRENT EXPENSE WINTER MOS. BILL NAME OF YOUR FUEL COMPANY | | NAME OF YOUR ELECTRIC COMPANY* | *Under normal circumstances, very little of your grant will be used to pay electric expenses unless you have electric heat, since the focus of this program is to offset the high cost of home heat. COMMENTS REGARDING YOUR NEED FOR ENERGY ASSISTANCE: (Attach additional sheet if necessary.) Total income for 3 months Verified countable income IF YOU ARE CLAIMING LITTLE OR NO INCOME and not receiving FS, AFDC, or APA, please provide two (2) letters from anyone living outside your household who knows your situation, stating how you are meeting Wths. Males (o~ cep elias as dd yon ss ; oats far — tecertly prepa, td ~ & hy i ee Matt am Od Bs Tach oally Yukon Sevvizn — Porm Chasrtirtn a wot 4 eter OPG+R ~ Aes Dom Potés — pis (ihe 57) — 2226 af 22(7o QFE Yo -m/le -—wtia Ticktok Yves ae PEED Doawe bree boc le [Bees ) tor’ 1@ Accte /] YO wake Aire ~ Bie Meant Ve] maey Yt te od Rect + PR a ee 2 0 (Zeshe — dneprde Ash w FES tr a rot Proc ban roG? oF! 4-9 Maske Are hin, SS 0 aa A eh 6 alb> * Ldewata. sou gfe cia ~ crs cars ie Freight — — Saeed avail be. Sp freigh® collek uel - Pearebl ate [WO T4104 Ab will call chm Tamives (30 IF > Ach Pay of Ped fect chow Pickep tA 4) Poot £8 AK AR eg es fody Ming cA rs ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 5/11/90 Director of Rural Programs Thru: Dick Emerman Senior Economist From: Steve Stassel Engineering Analyst Subject: Update to Eagle-Eagle Village Intertie PCE Rate Analysis This memorandum is to provide updated information to the Eagle-Eagle Village Intertie PCE Rate Analysis memo dated 4/9/90. Additional information has been provided by Eagle Village that allows a more accurate analysis of their current power production costs and the effect of purchasing their power from Eagle Power Co. The results of this additional information are: 1) The intertie remains economic over a 30 year useful life. 2) Eagle Village’s FY90 Third quarter apparent system losses are 49.4%. Based on these losses, Eagle Village’s FY89 generation was 89,609 kWh. 3) Eagle Village’s cost of electricity in FY89 would have increased $18,471 (from $24,737 to $43,208) had they purchased their electricity over the intertie at $.38/kWh. 4) If Eagle Village’s apparent system losses are entirely a result of mechanical and electrical inefficiencies (i.e., no unmetered loads), their out-of-pocket cost of electricity would have increased $.4165/kWh sold, for a net-increase of $18,471. 5) If Eagle Village’s actual line-losses are only 10%, and the additional 39.4% system losses are captured by additional metering, their out-of-pocket cost of electricity would have increased $.0409/kWh sold, for a net-increase of $3,297. (This assumes all currently unmetered loads are PCE eligible kWh.) Due to the substantial difference in the increase in Eagle Village’s out-of-pocket costs as a result of these different assumptions, it is recommended that a datalogger be installed in Eagle Village’s laundromat to record the kWh consumption over a one week period. This information can then be used to determine the impact on Eagle Village’s annual cost of power as a result of the intertie. ANALYSIS As mentioned in the previous memo, Eagle Village installed a totalizing kWh meter in late December 1989. Information was recently provided by Eagle Village to the PCE program for the period 12/26/89 through 3/26/90. During this period Eagle Village generated 16,894 OI 44.470, and a Tuel erliciency OF 5.20 K WN SOld/galion. The following analysis is divided into two cases that demonstrate the impact on the cost of electricity had Eagle Village purchased their electricity over the proposed intertie in FY89. The first case assumes that all system losses are due to inefficiencies in Eagle Village’s electrical system, and there are no unmetered loads. The second case assumes that actual line losses are 10%, and the additional 39.4% system losses are due to unmetered loads. In this case, all unmetered loads are assumed to be PCE eligible kWhs. Table 1 shows Eagle Village’s and Eagle Power’s power production costs for FY89 (as reported to the PCE program) and their respective PCE rates and annual subsidies. Table 1 FY89 PCE Data Eagle Village Eagle Power Co. kWh sold 44,346 kWh kWh sold 455,776 kWh Fuel Consumed 9,350 gal Fuel Consumed 41,085 gal Fuel Efficiency 4.7 kWh sold/gal Fuel Efficiency 11.1 kWh sold/gal Current Fuel Price $1.07/gal Current Fuel Price $.917/gal Fuel Cost $10,005 Fuel Cost $37,687 Non-Fuel Cost $14,732 Non-Fuel Cost $103,196 Fuel cost/kWh $.2256/kWh sold Fuel cost/kWh $.0827/kWh sold Non-fuel cost/kWh $.3322/kWh sold Non-fuel cost/kWh $.2264/kWh sold Total cost/kWh $.5578/kWh sold Total cost/kWh $.3091/kWh sold PCE Rate $.4180/kWh sold PCE Rate $.2129/kWh sold Eligible kWh 40,213 kWh Eligible kWh 291,287 kWh PCE Subsidy $16,809 PCE Subsidy $62,015 CASE 1: If we assume that Eagle Village’s system losses of 49.4% was constant over the entire FY89 fiscal period, then Eagle Village generated 89,609 kWh. At Eagle Power’s proposed wholesale rate of $.38/kWh, it would have cost Eagle Village $34,051 to purchase this electricity over the intertie. This is more than three times greater than Eagle Village’s cost of fuel to produce this power. (On the other hand, Eagle Village’s non-fuel costs would have declined an estimated $5,575 due to reduced O&M and repair costs as a result of the intertie.) Since Eagle Village’s PCE rate is at the maximum of $.418/kWh, any net-increase in the cost of producing electricity would not be subsidized by the PCE program. Therefore, Eagle Village’s out-of-pocket cost of electricity would have increased $.4165/kWh sold - from $.1788 to $.5953/kWh sold. (Out of pocket costs are defined as the annual cost of electricity minus the annual PCE subsidy.) Table 2 illustrates the effect on Eagle Village’s FY89 power production costs and PCE rate incorporating the above assumptions. Eagle Village (Self Generation) Purchase Power rate = $.38/kWh, & 49.4% syste m losses Eagle Village (with Intertie) kWh generated 89,609kWh kWh sold 44,346kWh kWh sold 44,346 kWh Fuel Consumed 9,350 gal Purchased Power 89,609 kWh Fuel Efficiency 4.74 kWh/gal sold Fuel Efficiency N/A Current Fuel Price $1.07/gal Current Fuel Price N/A Fuel Cost $10,005 Power Cost $34,051 Non-Fuel Cost $14,732 Non-Fuel Cost $9,157 Fuel cost/kWh $.2256/kWh sold Power cost/kWh $.7678/kWh sold Non-fuel cost/kWh $.3322/kWh sold Non-fuel cost/kWh $.2065/kWh sold Total cost/kWh $.5578/kWh sold Total cost/kWh $.9743/kWh sold PCE Rate $.4180/kWh sold PCE Rate $.4180/kWh sold Eligible kWh 40,213 kWh Eligible kWh 40,213 kWh PCE Subsidy $16,809 PCE Subsidy $16,809 CASE 2: Eagle Village has recently confirmed that their laundromat is not metered. Since data is not available regarding the annual consumption of the laundromat, or possible additional unmetered loads, Eagle Village’s actual line-losses are assumed to be 10%, with the additional 39.4% losses due to unmetered loads. Based on this assumption, Eagle Village’s "actual" kWh sold in FY89 (reported kWh sold plus unmetered kWh), would have been 80,648 kWh had all loads been metered. If we also assume all currently unmetered loads are PCE eligible, the "actual" eligible kWh sold would have increased to 76,515 kWh. Table 3 illustrates the effect on Eagle Village’s and Eagle Power’s FY89 power production costs and PCE rates incorporating the above assumptions. Table 3 Purchase Power rate = $.38/kWh 10% line-losses (all unmetered loads are PCE eligible kWh) Eagle Village (Self Generation) Eagle Village (with Intertie) Eagle Power Co. (with Intertie) kWh sold 80,648 kWh kWh sold 80,648 kWh kWh sold 545,385kWh Fuel Consumed 9,350 gal Purchased Power 89,609 kWh Fuel Consumed 49,178 gal Fuel Efficiency 8.6 kWh/gal Fuel Efficiency N/A Fuel Efficiency 11.1kWh/gal Current Fuel Price $1.07/gal Current Fuel Price N/A Current Fuel Price $.917/gal Fuel Cost $10,005 Power Cost $34,051 Fuel Cost $45,096 Non-Fuel Cost $14,732 Non-Fuel Cost $9,157 Non-Fuel Cost $108,511 Fuel cost/kWh $.1240/kWh Power cost/kWh $.4222/kWh Fuel cost/kWh $.0827/k Wh Non-fuel cost/kWh $.1827/kWh Non-fuel cost/kWh $.1135/kWh Non-fuel cost/kWh $.1990/kWh Total cost/kWh $.3067/kWh Total cost/kWh $.5357/kWh Total cost/kWh $.2817/kWh PCE Rate $.2106/kWh PCE Rate $.4180/kWh PCE Rate $.1868/kWh Eligible kWh 76,515 kWh Eligible kWh 76,515 kWh Eligible kWh 300,287kWh PCE Subsidy $16,117 PCE Subsidy $31,983 PCE Subsidy $56,099 Included in the first column of table 3 are the calculated power production data and PCE costs for Eagle Village for FY89. It is assumed that all unmetered loads are eligible kWh. Thus, had Eagle Village metered all loads, their eligible kWh would have been 76,515 kWh. Comparing column 1 in Tables 1 & 3, the total cost/kWh for FY89 was actually $.3067/kWh "sold", rather than the reported $.5578/kWh sold; and the PCE rate should have been $.2106/kWh "sold", rather than $.418/kWh sold. Although the eligible kWh would have increased 90% (from 40,213 to 76,515 kWh), the projected annual PCE subsidy would have been $692 less due to the reduced PCE rate. Intertie: Included in the second column of table 3 are the calculated power production data and PCE costs for Eagle Village had they purchased their electricity in FY89 over the intertie. Comparing Eagle Village’s PCE subsidy in Table 1 with this data indicates that the subsidy would have increased $15,174 (from $16,809 to $31,983), as a result of the additional eligible kWh. But, since the cost of electricity would have increased $18,471, the net out-of-pocket cost of electricity would have increased $3,297, or $.0409/kWh sold. Included in the third column of table 3 are the calculated power production data and PCE costs for Eagle Power as a result of Eagle Village purchasing their electricity from Eagle Power. Comparing Tables 1 & 3, Eagle Power’s FY89 PCE rate would have decreased from $.2129/kWh sold to $.1868/kWh sold. This is due to the reduction in Eagle Power’s non-fuel cost/kWh sold as a result of the increased kWh sold to Eagle Village. This reduced PCE rate for Eagle Power would have resulted in a savings to the PCE program of $5,916. Net Effect to the PCE Program: At the proposed purchased power rate of $.38/kWh, the PCE program would have incurred a net increase of $9,258 had Eagle Village purchased their electricity from Eagle Power in FY89. This is equal to the increased PCE subsidy to Eagle Village of $15,174 minus the reduced subsidy to Eagle Power of $5,916. CONCLUSIONS Had Eagle Village purchased their electricity from Eagle Power at $.38/kWh in FY839, their cost of electricity would have increased $18,471. Depending on the actual line-losses (and additional eligible kWh realized by metering all loads), Eagle Village’s out-of-pocket cost of electricity would have increased between $.0409/kWh sold and $.4165/kWh sold. This corresponds to an out-of- pocket cost increase to Eagle Village between $3,297 and $18,471. Due to the vast difference between the results of these two cases, additional data should be collected regarding laundromat consumption and additional unmetered loads at Eagle Village. It seems unlikely that the proposed intertie would be used if the result was an increase in out-of- pocket costs to Eagle Village. cc: Gary Smith Dale Rusnell Pat Woodell Sue White ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 5/16/90 Director of Rural Programs From: Steve Stassel 0) Engineering Analyst 4 ‘5 Sue write}. be Special Assistant to Executive Director Subject: Eagle-Eagle Village Trip Report Sue White and I flew to Eagle, AK May 15, 1990 to discuss with the Eagle Village Council and Eagle Power Co. the impact of the proposed intertie on their PCE rates and power production costs, install a datalogger on Eagle Village’s laundromat, and determine if the intertie is what Eagle Village wants. Sue and I departed Anchorage for Fairbanks at 6:35 a.m. on Alaska Airlines and arrived at approximately 7:30 a.m. We flew Frontier Airlines from Fairbanks to Eagle, leaving Fairbanks at approximately 9:30 a.m. and arriving at Eagle at 10:45 a.m. Ralph Helmer of Eagle Power met us at the airport and transported us to Eagle Village for our meeting with the Village Council. While in Eagle Village, Mr. Helmer provided assistance in connecting an AEA datalogger to the laundromat. This was done to provide additional information on the electrical consumption of the laundry facility to be used in determining Eagle Village’s correct PCE rate and actual power production costs. (The laundromat is currently unmetered. Agency staff estimates that this facility potentially consumes as much power annually as all of the metered loads in the village.) Sue and I met with the Village Council at 11:30 a.m. The council members attending were: Howard David-Chief, Richard Silas-Second Chief and acting utility manager, Oliver Lyman, Mathew Malcolm, Joanne Beck, Bertha Ulvi. We discussed the present condition and the long term goals of the utility. Howard David informed us that the 55 kW John Deere genset had recently been overhauled and the 30 kW John Deere genset is in working order. The fuel system does not leak, but is not properly diked. The power house is of wood frame construction and attached to the laundromat, which represents a fire hazard. The distribution system is in need of upgrade and repair. Their long-term goals are: Upgrade their distribution system including new poles and lines. Relocate the power house away from the village and upgrade to standby capacity. Intertie Eagle Village’s distribution system to Eagle Power’s generation system and eliminate the need to generate their own power. I explained that by not metering the laundromat, the residential customers had been paying for its electricity through their electric bills. We also discussed the impact of not metering the laundromat on their PCE rate and apparent power production costs, and the importance of metering the laundromat and paying its bills for it to be eligible for PCE assistance. Howard David agreed that facilities should be used to pay for the electricity consumed. Richard Silas, acting utility manager, expressed concern over shutting off power to his neighbors for failure to pay their electric bills. Sue and I explained that it is necessary for utility customers to pay for their electricity in order to be eligible for the PCE program, and that free electricity is not PCE eligible. The Eagle Village utility has sent setters to its customers explaining that power will be shut off for failure to pay, but this has achieved little success since most residents make their money during the summer fire fighting season. Our response to this was that customers should make a good faith effort to pay what they can afford monthly, but must bring their past due payments current in the Summer when money is available. Sue will send a copy of a letter used by the Venetie utility with good results. We distributed the Draft Power Sales Agreement and Project Agreement for their review, and suggested they have their attorney review them. Sue informed the Council that the money for the intertie was available, but the legislature did not appropriate the funds to rebuild their distribution system. However, since their distribution system and power house are health and safety concerns, the Energy Authority would provide the funds necessary to relocate the power house and upgrade their distribution system. Sue informed them that the distribution upgrade and power house relocation would be accomplished with local labor. I requested that someone record the totalization meter reading in the power house at least twice a day, and that at the end of the week Ralph Helmer would remove the meter and ship it back to us. I also made sure that they realized since we had to remove the electrical panel cover to hook-up the meter, that no one should be allowed to disturb the meter for risk of electric shock. At 1:30 p.m., Mr. Helmer returned to pick us up. We requested that if they had any additional questions they call the Energy Authority collect, and that we would get back to them with the results of metering the laundry when the information is available. Mr. Helmer gave us a short tour of his electric system and the city of Eagle. We discussed the proposed wholesale rate of $.38/kWh with him and requested a copy of the agreement he has with the school district. Ralph informed us that he had expected to have a rate decrease from $.40 to $.38/kWh for residential customers this year but was uncertain if, or when, this would occur. His present agreement with the school does not include a formula for rate increases. Our flight back on 40 Mile Air arrived 30 minutes early, so we had to cut short our meeting and return to the airport. We left copies of the Draft Power Sales Agreement and Project Agreement with Ralph and requested he review them. Ralph assured us that either he or one of his sons would return our datalogger to us at the end of the week. Sue and I departed Eagle at approximately 2:15 p.m. and arrived in Fairbanks at 3:30 p.m. We made the 4:00 p.m. Alaska Airlines flight to Anchorage, and arrived in Anchorage at approximately 5:00 p.m. ISS cc: Gary Smith Dale Rusnell Pat Woodell ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 5/31/90 Director of Rural Programs From: Steve Stassel XY Engineering Analyst~/ Subject: Eagle Village Laundromat Metering Results A BMI datalogger was installed at the Eagle Village laundromat on May 15, 1990 to determine the number of kWh the laundromat consumed over a five day period. The Utility was requested to record the master meter reading twice a day during this same period. This was done so that the laundromat’s consumption as a percent of total electricity generated could be determined. The meter was disconnected and returned to the Energy Authority on May 22. Upon inspection, it was found that the paper on the strip chart recorder had jammed late on the 15th, and the diskette failed to record data after 11:00 a.m. on the 16th. Therefore, only 24 hours of data was obtained. According to this data, the laundromat consumed 32.5 kWh out of a total of 126 kWh generated. This corresponds to 25.8% of the total kWh generated. Further review of the datalogger information demonstrates that the laundromat consumption was relatively flat over the twenty four hour period. The average kWh consumed per hour was 1.35 kWh. The maximum hourly consumption was 1.957 kWh and the minimum was 1.041 kWh. The majority of the readings were between 1.1 and 1.4 kWh/hr. Based on the load data obtained (15 Minute Demand kW/hr and kWh consumed/hr), it is apparent that the laundromat did not experience very high use during the 24 hour period monitored. The combination of minimal use and short duration of data obtained leads to the conclusion that the laundromat’s annual consumption as a percent of total kWh generated is likely to be higher than the 25.8% recorded. Information provided in the Eagle-Eagle Village Intertie Update memo dated May 11, 1990, demonstrated that the apparent system losses in Eagle Village have been almost 50% during the first quarter of 1990. It is a conservative estimate that at least one-half of these apparent system losses are due to the laundromat’s consumption. How much of the other half of the apparent system losses are due to the laundromat, station service, additional unmetered loads, and actual line losses is uncertain. /SS ce: Dick Emerman Gary Smith Dale Rusnell Pat Woodell Sue White ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 5/31/90 Director of Rural Programs From: Steve Stassel Xn Engineering Analyst~/ Subject: Eagle Village Laundromat Metering Results A BMI datalogger was installed at the Eagle Village laundromat on May 15, 1990 to determine the number of kWh the laundromat consumed over a five day period. The Utility was requested to record the master meter reading twice a day during this same period. This was done so that the laundromat’s consumption as a percent of total electricity generated could be determined. The meter was disconnected and returned to the Energy Authority on May 22. Upon inspection, it was found that the paper on the strip chart recorder had jammed late on the 15th, and the diskette failed to record data after 11:00 a.m. on the 16th. Therefore, only 24 hours of data was obtained. According to this data, the laundromat consumed 32.5 kWh out of a total of 126 kWh generated. This corresponds to 25.8% of the total kWh generated. Further review of the datalogger information demonstrates that the laundromat consumption was relatively flat over the twenty four hour period. The average kWh consumed per hour was 1.35 kWh. The maximum hourly consumption was 1.957 kWh and the minimum was 1.041 kWh. The majority of the readings were between 1.1 and 1.4 kWh/hr. Based on the load data obtained (15 Minute Demand kW/hr and kWh consumed/hr), it is apparent that the laundromat did not experience very high use during the 24 hour period monitored. The combination of minimal use and short duration of data obtained leads to the conclusion that the laundromat’s annual consumption as a percent of total kWh generated is likely to be higher than the 25.8% recorded. Information provided in the Eagle-Eagle Village Intertie Update memo dated May 11, 1990, demonstrated that the apparent system losses in Eagle Village have been almost 50% during the first quarter of 1990. It is a conservative estimate that at least one-half of these apparent system losses are due to the laundromat’s consumption. How much of the other half of the apparent system losses are due to the laundromat, station service, additional unmetered loads, and actual line losses is uncertain. ISS cc: Dick Emerman Gary Smith Dale Rusnell Pat Woodell Sue White ALASKA ENEKGY AUTHORITY To: Dave Denig-Chakroff Date: 5/31/90 Director of Rural Programs From: Steve Stassel XR Engineering Analyst Subject: Eagle Village Laundromat Metering Results A BMI datalogger was installed at the Eagle Village laundromat on May 15, 1990 to determine the number of kWh the laundromat consumed over a five day period. The Utility was requested to record the master meter reading twice a day during this same period. This was done so that the laundromat’s consumption as a percent of total electricity generated could be determined. The meter was disconnected and returned to the Energy Authority on May 22. Upon inspection, it was found that the paper on the strip chart recorder had jammed late on the 15th, and the diskette failed to record data after 11:00 a.m. on the 16th. Therefore, only 24 hours of data was obtained. According to this data, the laundromat consumed 32.5 kWh out of a total of 126 kWh generated. This corresponds to 25.8% of the total kWh generated. Further review of the datalogger information demonstrates that the laundromat consumption was relatively flat over the twenty four hour period. The average kWh consumed per hour was 1.35 kWh. The maximum hourly consumption was 1.957 kWh and the minimum was 1.041 kWh. The majority of the readings were between 1.1 and 1.4 kWh/hr. Based on the load data obtained (15 Minute Demand kW/hr and kWh consumed/hr), it is apparent that the laundromat did not experience very high use during the 24 hour period monitored. The combination of minimal use and short duration of data obtained leads to the conclusion that the laundromat’s annual consumption as a percent of total kWh generated is likely to be higher than the 25.8% recorded. Information provided in the Eagle-Eagle Village Intertie Update memo dated May 11, 1990, demonstrated that the apparent system losses in Eagle Village have been almost 50% during the first quarter of 1990. It is a conservative estimate that at least one-half of these apparent system losses are due to the laundromat’s consumption. How much of the other half of the apparent system losses are due to the laundromat, station service, additional unmetered loads, and actual line losses is uncertain. /SS cc: Dick Emerman Gary Smith Dale Rusnell Pat Woodell Sue White ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 6/14/90 Director of Rural Programs From: Steve Stassel Ve Engineering Analyst Subject: Eagle Village-Eagle Power Intertie SUMMARY 1) Both Eagle Village and Eagle Power are prepared to sign the Power Sales Agreement (PSA). 2) Eagle Power and Eagle Village have agreed on a purchased power rate of $.38/kWh. 3) The purchased power rate and rate increase language need to be included in PSA. 4) The poles are enroute and will arrive in two weeks. Eagle Power needs to begin right-of-way clearing immediately. 5) I requested Mr. David and Mr. Helmer to contact the Energy Authority no later than Thursday June, 21st for a status report. I received a telephone call Monday, June 11th from Howard David, Chief of Eagle Village. He informed me that he has talked with Ralph Helmer of Eagle Power and they have no problems with the Power Sales Agreement and have agreed on a purchased power rate of $.38/kWh. Mr. David would like to sign the agreement and get started on the project. I asked Mr. David if his attorney had reviewed the agreement and made any recommendations for changes. He has FAXed the agreement to his attorney and is waiting to hear from them. Although his attorney has not commented on the agreement, Mr. David wants to sign. I contacted Mr. Helmer to see if he had any concerns on either the Power Sales Agreement or the Project Agreement. He informed me that he was prepared to sign both agreements and begin the project as soon as possible. Mr. Helmer did have two suggestions regarding the term of the Power Sales Agreement and the parameters for rate changes. He prefers a term of more than one year, up to ten years. This is to minimize the administrative burden of renegotiating the Power Sales Agreement (PSA) annually. Also, the language that Mr. Helmer and Mr. David have discussed for rate changes would tie the PSA tariff to Eagle Power’s current Commercial Customer tariff. In this way, any changes in rate structure would be across the board for large consumers of power. (Currently, Mr. Helmer believes that his Commercial Customer tariff with the school is an open-ended contract and does not have any language regarding parameters for rate changes. He also said that the rate has not changed in years, and that his Residential Customer tariff was in the process of being reduced from $.40 to $.38/kWh.) an at Po yee SU pe ene eee Stes nn Re nanetee Pree RAR what the Energy Authority requires prior to final payment, but says he can "live" with the present language. His second concern is regarding the clause that states he can’t bill for work completed prior to signing of the Project Agreement. He does not know if he can complete the job this year if he doesn’t get started immediately. The poles for the project left Seattle this week and should be in Eagle in two weeks. Mr. Helmer says he needs to begin right-of-way clearing now to be ready to install the poles upon arrival. ISS cc: Dick Emerman Gary Smith Dale Rusnell Pat Woodell Sue White John Bulkow Hans Jensen $/15190 Engle Village DAS Line Ju mer 116i // ide Za 4sy L ae f4uzy sfc 11. 39 Zzys4o S/ai/¥@ se @ B-Prrn [ele Se CBA10rp~ 1343 bow | oer a ee F > Bit heres x. @ MY 1eYo e a bork Contin pr I (1.58 (3s) gf, ee (25° Frou fr t - c OES thas RO Vhs SO Pee SF] bg Fee Wile = C% Chesi) =. $34 xr nS ee eee FiBsy fies ee VED oe ee ; AES —_ CO Ta Naa Auto | BF feloh NeXuor a Ea foe of cweorig ey) — BHO + bow fick. pr be Atpea Do due /12 ( shpack on (fs Sea.) dele : be |Opok, sim ah a ae aa hare heqen Pot c oe bows npe! je? fg 7. (EPR ad LR vectors, Pt bao ty | ok a SE eas ela ace _ Apt es capt gee ee St WL cad Ts his. ein ete ye Pus ae ne’ Pr S aba Agr Contract No. EAGLE POWER COMPANY PROJECT AGREEMENT PURPOSE AND DESCRIPTION This Agreement entered into this day of ,is between the ALASKA ENERGY AUTHORITY (Energy Authority) an POWER COMPANY (Eagle Power). The Agreement provides a Grant-in-Aid of Construction to Eagle Power on behalf of the Eagle Village IRA Council for the purpose of building a single-phase, 7.2 kV transmission line extension to connect Eagle Power’s existing service area to Eagle Village Energy Systems’ distribution system. Performance of this Agreement is contingent upon approval of a Power Sales Agreement between Eagle Power and Eagle Village. The Power Sales Agreement will provide for the sale of wholesale power by Eagle Power to Eagle Village through a transmission line extension approximately 1.4 miles long. Eagle Power Company is a private utility serving the community of Eagle, and holds Certificate of Public Convenience and Necessity Number 335 from the Alaska Public Utilities Commission (APUC). Eagle Village Energy Systems is a private utility, owned and operated by the Eagle Village IRA Council. Eagle Village Energy Systems does not have an APUC Certificate. At this time, Eagle Village owns and operates its own power plant, and the intertie with Eagle Power would allow this plant to be converted to a standby mode as Eagle Village would meet 100% of its future power requirments through wholesale purchases on the line. Neither utility is currently regulated by the APUC other than to meet requirements for participation in the Power Cost Equalization Program. Article A. ALASKA ENERGY AUTHORITY COVENANTS The Energy Authority will: 4. Subject to appropriation and availability, provide Eagle Power with a grant-in-aid of construction not to exceed $36,000 for construction of the project. 2. Assist Eagle Power and Eagle Village in completing negotiations and approval of a Power Sales Agreement. 3. Upon receipt of an invoice requesting payment, provide funds to Eagle Power to cover the cost of construction in the following manner: (a) | 25% advance payment for purchase of Project materials and initial labor costs. The advance payment will be made upon approval of DRAFT this Agreement and the Power Sales Agreement between Eagle Power and Eagle Village. (6) 50% interim payment upon substantial completion of the Project. Interim payment will be made upon inspection of the Project by the Energy Authority, and determination that it is constructed in compliance with the provisions outlined in Article B, Paragraph 6 of this Agreement. (c) 25% final payment upon completion and demon- stration of the the Project’s succesful operation. Successful operation is defined as continuous operation for a period of at least 30 days. 4. have the right to inspect, in such manner and at all reasonable times all activities of Eagle Power related to Eagle Power’s performance under this Agreement. Such right of examination shall include inspection of Eagle Power’s offices or plant. Article B. EAGLE POWER COMPANY COVENANTS Eagle Power Company will: le Prior to beginning construction, negotiate and sign a Power Sales Agreement with Eagle Village Energy Systems. Construction will not commence unless this Agreement is signed by both parties. 2: Expend construction funds only for the purposes provided for under this Agreement. 3. Prior to initiating construction of the transmission line, sign a Power Sales Agreement with Eagle Village. 4. Provide all engineering services necessary for the complete engineering design of the project. 5. Within 30 days after the date of execution of this Agreement, prepare and submit to the Energy Authority, two copies of complete plans,specifications, drawings, maps, staking sheets and other documents required for the construction of the Project. 6. Design the Project to comply with the applicable standards for distribution systems. Eagle Power shall further design the Project to minimize the cost of construction and to be as maintenance-free as economically possible. DRAFT Te Design and construct the line to meet or exceed the 1990 edition of the National Electric Safety Code (NESC). 8. Obtain all rights-of-way, easements and permits required for construction and operation of the Project. Permits should be obtained and maintained in a manner consistent with established utility practices. Where practical, Eagle Power will use permits and rights-of-way on state lands or within Alaska Department of Transportation rights-of-way. 9. Complete all work under this Agreement prior to September 30, 1990. 10. Bill the Energy Authority for the percentage payments described in Article A, Paragraph 3, but not in excess of actual costs of construction. Any funds determined to be in excess of actual expenditures must be refunded to the Energy Authority. Pursuant to Article C, Paragraph 4, grant expenditures are subject to the State Single Audit Act. 11. Make every effort to hire local residents to work on the construction of this project. 12. | Account for funds received under this Agreement as contributions- in-aid of construction and, therefore, refrain from including those funds in future rate base calculations. 13. _ Within 15 days after issuance of a Notice of Project Completion by the Energy Authority, sign an acknowledgement of Project completion or identify, in writing, any specific work items that Eagle Power considers incomplete. 14. | Upon project completion, accept complete responsibility for ownership, operation and maintenance of the transmission line and related facilities. Article C. MUTUAL COVENANTS The Energy Authority and Eagle Power Company agree to the following: 1. Indemnification. _ Eagle Power Company shall indemnify, save harmless and defend the Energy Authority, its officers, agents, servants, and employees from all liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the indemnifying party, its officers, agents, servants, or employees or anyone directly or indirectly employed by it in ‘the performance of this Agreement. The labor and manpower assistance provided by Eagle Power shall be considered the officers, agents, servants, or employees of Eagle Power for purposes of construing these indemnification provisions. 2. Rights to Rescind Grant_and Terminate Agreement. Eagle Power acknowledges the right of the Energy Authority to rescind funds authorized by DRAFT this Agreement and to terminate this Agreement without payment of liquidated damages to Eagle Power if it is determined by the Energy Authority to be in the best interest of the State to do so, if funds are no longer available, or for cause. For the purposes of this paragraph, "cause" is defined as the provision of incorrect or misleading information by Eagle Power or Eagle Power’s failure to provide information that, in the opinion of the Energy Authority, is a material fact that would have influenced Energy Authority actions. Under these conditions, Eagle Power waives any right of recourse and will reimburse the Energy Authority for all funds Eagle Power has received according to this Agreement plus all costs, including attorneys’ fees, incurred by the Energy Authority to perfect its claim or collect those funds. 3. Availability of Funding. Eagle Power acknowledges that this Agreement is subject to availability of money from the State of Alaska or other sources to finance performance under this Agreement. If funding is withdrawn, reduced, or limited in any way after the effective date of this Agreement and before the completion of performance, the Energy Authority may terminate the Agreement without incurring liquidated damages. The Energy Authority may, in its discretion, renegotiate the terms of this Agreement to comply with any new funding limitations or conditions. 4. Audit Requirements. This Agreement is subject to the audit requirements of Title 2, Chapter 45 (Grant Administration) of the Alaska Administrative Code (AAC), commonly referred to as the "Single Audit Regulation." 5. Parties not Being Agents of Each Other It is agreed that the Parties, their officers, agents, servants and employees shall act in an independent capacity and not as agents of the other parties in the performance of this Agreement. 6. Disputes. Either party to this Agreement may bring an action against the other party in the superior court for the State of Alaska to resolve a dispute arising under this Agreement. Any lawsuit involving this Agreement shall be heard by the superior court, Third Judicial District at Anchorage. All legal costs, including attorneys’ fees not otherwise provided for in this Agreement, shall be allocated pursuant to Alaska Civil Rule 82. 7. Rights of Other Parties. It is the intent of the parties that this Agreement confer no rights on any third parties. 8. Binding Effect. This Agreement and all of its terms, covenants, conditions and appendices represent the entire agreement and shall extend to and be binding upon the respective heirs, executors, administrators, grantees, successors and assigns of the parties to this Agreement. 9. Severability. If any section, paragraph, clause or provision of this Agreement or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section, paragraph, clause or provision or any part thereof so adjudicated to be invalid had not been included herein. 10. Declaration of Public Benefit. The parties acknowledge that the Project is to be constructed for the benefit of the general public and will not deny any person use of Project facilities or use of power produced from Project facilities due to race, religion, color, sex, or national origin. 11. Notices. Any notice required of either party shall be in writing and, unless receipt of such notice is expressly required by the terms of this Agreement, shall be deemed served when deposited in the mail in a sealed envelope, with sufficient first class postage affixed, and addressed to the appropriate party. The notices shall be sent to each party’s place of business, which in the case of the Energy Authority shall be: Robert E. LeResche, Executive Director Alaska Energy Authority P.O. Box 190869 Anchorage, Alaska 99519-0869 907) 561-7877 and in the case of Eagle Power Company shall be: Mr. Ralph Helmer, General Manager Eagle Power Company Box 6 Eagle, Alaska 99738 DRAFT THIS AGREEMENT has been reviewed, agreed to, and executed by the following parties: for the ALASKA ENERGY AUTHORITY by (Signature) (Date) (Name Printed) (Title) STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT ) as foregoing Agreement was acknowledged before me this 1990,by ithe of the Alaska Energy Authority, a public corporation of the State of Alaska, on behalf of the corporation. day Notary Public, State of Alaska My Commission Expires: Assistant Attorney General DRAFT for the EAGLE POWER COMPANY by (Signature) (Date) (Name Printed) (Title) STATE OF ALASKA ) ss. FOURTH JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this day of , 1990 by Ralph Helmer, General Manager of the Eagle Power Company. Notary Public, State of Alaska My Commission Expires: DRAFT Contract No. EAGLE VILLAGE ENERGY SYSTEMS EAGLE POWER COMPANY POWER SALES AGREEMENT THIS POWER SALES AGREEMENT, entered into this day of : 1990, between EAGLE POWER COMPANY (Eagle Power) and EAGLE VILLAGE ENERGY SYSTEMS (Eagle Village), outlines the responsibilities of the parties in connection with the sale of firm power by Eagle Power to Eagle Village. This Power Sales Agreement represents the entire agreement between the parties and may only be modified by the mutual consent of all parties, in writing. Article A. EAGLE VILLAGE ENERGY SYSTEMS COVENANTS Eagle Village Energy Systems will: 1. Grant all necessary access for Eagle Power, its consultants and contractors toiproperty owned or operated by Eagle Village as necessary for the construction, operation and maintenance of the facilities necessary for Eagle Power’s performance under this Power Sales Agreement. 2 Except for sales taxes in force at the time of entering into this Power Sales Agreement, refrain from levying any taxes or fees, and refrain from requiring payment for any licenses, permits, or certificates of any kind for any purpose from any vendor, consultant, contractor, or any other entity involved with any phase of the Power Sales Agreement. 3. For the purpose of this Power Sales Agreement, agree not to assert tribal sovereignty as a defense against enforcement of Eagle Village’s financial or other obligations under this Power Sales Agreement. 4. After this Power Sales Agreement is signed by Eagle Power’s authorized officer, pass a Village Council Resolution in which this Power Sales Agreement is recognized and agreed to as being the sole governing contract for the sale of power to Eagle Village by Eagle Power. 5. Operate and maintain Eagle Village’s power system in accordance with prudent utility standards, and in the event this is not done, agree to hold Eagle Power harmless for any legal action resulting from deviation from these standards. 6. Agree to purchase all power for all Eagle Village utility customers from Eagle Power at the rate of per kilowatt hour. This rate will be adjusted each year, based on the cost of fuel oil to Eagle Power OR OTHER FORMULA AGREED UPON BY THE PARTIES). The anniversary date of this Power Sales Agreement and the annual rate review date shall be one in the same. DRAFT s Power Sales Agreement Page 2 of 5 PUT FORMULA HERE description of tariff formula agreed upon by the two parties (FUTURE RATES) Kilowatt hour use will be determined by reading a meter placed between the termination of Eagle Power’s extended system and Eagle Village’s distribution system. Eagle Power will complete a meter reading on the last day of the month. 7. Agree to pay for all power purchased from Eagle Power no later than 30 calendar days from receipt of invoice. 8. Agree to pay interest of 1.5% per month on all amounts not paid within 30 calendar days of receipt of invoice from Eagle Power. 9. Agree that Eagle Power shall stop selling and providing electricity to Eagle Village if payment is not made within 45 calendar days of receipt of invoice from Eagle Power. Article B: © EAGLE POWER COMPANY COVENANTS Eagle Power Company will: 1. Operate and maintain the transmission line in strict compliance with the 1990 and subsequent editions of the National Electric Safety Code (NESC). In the event this is not done, agree to hold Eagle Village Energy Systems harmless for any legal action resulting from deviation from these standards. 2. Agree to provide all the power needed by the City at the rates established in Article A, Paragraph 6, pursuant to the conditions of this Agreement. Power will be single phase, 60-Hertz, AC, at the delivery voltage specified in contract number between Eagle Power and Alaska Energy Authority. 3. Account for the transmission line construction funds received under contract number with the Alaska Energy Authority as contributions-in-aid of construction and not include these funds in rate base calculations that affect the cost of wholesale power to Eagle Village. 4. Bill Eagle Village Energy Systems monthly, based on meter readings and at rates referenced in Article A, Paragraph 6. 5. In the event that Eagle Village fails to comply with the terms of the Power Sales Agreement, disconnect service at the metering point described in Article A, Paragraph 6. DRAFT eng se ores et vay) Sy Seer amiga: eee weirs! Power Sales Agreement Page 3 of 5 Article C: MUTUAL COVENANTS Eagle Power Company and Eagle Village Energy Systems agree to the following: 1. Terms of Power Sales Agreement: This Power Sales Agreement is effective at the date and time service is initiated on the transmission line. The Power Sales Agreement expires on (PARTIES AGREE ON DATE). 2. Each party shall, insofar as practical, agree to protect, operate and maintain its system and facilities so as to avoid disturbances which might cause impairment to services of the system of the other party. 3. The power sold pursuant to this Agreement is firm power, and, therefore, not subject to interruption, reduction or suspension for any reason without notice, and such interruption, reduction or suspension will be accomplished at the sole discretion of Eagle Power Company. 4. For purposes of ownership, operation, maintenance and responsibility for the parties’ respective electrical systems, shall be considered the point at which the two systems are divided. 5: Indemnification: (a) Eagle Power and Eagle Village shall indemnify, save harmless and defend the other party to this Agreement, its officers, agents, servants and employees from liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the indeminifying party, their officers, agents, servants, or employees or anyone directly or indirectly employed by it in the performance of this Agreement. With respect to Article A, Paragraph 5, Eagle Village shall hold Eagle Power harmless for any legal action resulting from deviation from prudent utility standards. (b) All actions or claims, including costs and expenses, resulting from injuries or damages sustained by any person or property arising directly or indirectly from the performance of this Agreement which are casued by the joint negligence of the Parties to this Agreement shall be appropriated on a comparative fault basis. 6. Parties not Being Agents of Each Other: It is agreed that the parties, their officers, agents, servants and employees shall act in an independent capacity and not as agents of the other parties in the performance of this Agreement. it Disputes: Either party to this Agreement may bring an action against the other party in the Superior Court of the State of Alaska to resolve a dispute arising under this Agreement. Any lawsuit involving this Agreement shall be heard by the Superior Court, Judicial District at Anchorage. All legal costs, including attorney’s fees not otherwise provided for in this Agreement shall be allocated pursuant to Alaska Civil Rule 82. oR Power Sales Agreement Page 4 of 5 8. Rights of Other Parties: It is the intent of the parties that this Agreement confer no rights on any third parties. 9. Binding Effect: This Agreement and all of its terms, covenants, conditions and appendices represent the entire Agreement and shall extend to and be binding upon the respective heirs, executors, administrators, grantees, successors and assigns of the parties to this Agreement. 10. | Severability: If any section, paragraph, clause or provision o Agreement or any agreement referred to in this Agreement shall be final adjudicated by a court of competent jurisdiction to be invalid ord the remainder of this Agreement shall be unaffected by suctyadjusdicatio all the remaining provisions of this Agreement shall remain in full force as if such section, paragraph, clause or provision or any part thereof so adjudicated to be invalid had not been included herein. 11. Notices: Any notice required of either party shall be in writing and, unless receipt of such notice is expressly required by the terms of this Agreement, shall be deemed served when deposited in the mail in a sealed envelope, with sufficient first class postage affixed, and addressed to the appropriate party. The notices shall be sent to each party’s place of business, which is as follows: in the case of Eagle Power Company: Mr. Ralph Helmer, General Manger Eagle Power Company Box 6 Eagle, AK. 99738 in the case of Eagle Village Energy Systems: Mr. Howard David, Chief Eagle Village IRA Council General Delivery Eagle Village, AK 99738 rower Dales Agreement Page 5 of 5 THIS AGREEMENT has been reviewed, agreed to, and executed by the following parties: for EAGLE VILLAGE ENERGY SYSTEMS by (Signature) (Date) (Name Printed) (Title) STATE OF ALASKA } ss FOURTH JUDICIAL DISTRICT ) The foregoing Agreement was ackopdwiedged before me this day of ,1990 by : the : Notary Public, State of Alaska My Commission Expires: for EAGLE POWER COMPANY by (Signature) (Date) (Name Printed) (Title) STATE OF ALASKA ss. FOURTH JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this day of , 1990 by Ralph Helmer, General Manager of the Eagle Power Company. Notary Public, State of Alaska My Commission Expires: NR AFT Bs Steve Cowoer Governc’ Alaska Energy Authority A Public Corporation June 26, 1990 Mr. Howard David, Chief Eagle Village IRA Council General Delivery Eagle Village, AK 99738 Dear Chief Howard: Based on your discussions with Eagle Power Company about the proposed Power Sales Agreement, we have made the changes in wording you and Eagle Power Company have requested. These changes are outlined below: 1) Article A, Paragraph 6 The rate of 38 cents per kilowatt hour was added, and the rate was tied to Eagle Power’s rate for other commercial customers in the event that there is a future rate change 2) Article B, Paragraph 6 Eagle Power Company is required to notify Eagle Village of any rate change 30 days before that rate would be put into effect 3) Article C, Paragraph 1 The agreement ending date was set at June 30, 1996 4) Article C, Paragraph 4 The dividing point between the two systems was established for purposes of ownership and other responsibilities I am enclosing three copies of the revised power sales agreement for your final review. We urge you to have your attorney review this agreement and make sure that your interests are protected. Although we have assisted you in drafting the agreement, we cannot take legal responsibility for any problems you may have after it is signed. If you decide to proceed with the agreement as is, I would appreciate your sending me one signed and notarized original for my files. — PO. Box AM Juneau, Alaska 99811 (907) 465-3575 = BA Ray 140NRAO TNA East Tuidar Paad Ancharanea Alacka OO540.NRAO (ON7) 5AA.7277 I have also enclosed a page from the Alaska Administrative Code that talks about your duty to notify the Alaska Public Utilities Commission when entering into a power sales agreement with a non-regulated utility. Alc. g with this is a suggested format for a letter to the Commission. If you have any questions or would like to discuss any of these documents, please contact Pat Woodell at 261-7243. / Pincerey j ff f i; / / Vt J fre Af a. wry NGe Ah po David eee Director/Rural Programs Enclosures as stated BU-5Z21 -yOOY- AK ALM & + ib) A utility shall design, construct, and maintain generation, transmission, and distribution facilities in conformance with the state minimum electrical safety standards as adopted in AS 18.60.580 (c) A utility shall normally maintain generating capacity supple- mented by the electric power regularly available from other sources, sufficient to meet all reasonable demands for service and provide a reasonable reserve for emergencies. In addition to any other standards imposed by the commission, noninterconnected utilities shall main- tain, at a minimum, adequate reserve capacity to cover the loss of thé utility's largest generating unit. Generating capacity assigned to interruptible customers may be considered for reserve capacity deter- mination (d) Before entering into a contract with a regulated utility for the purchase of energy, including electrical energy or capacity, natural or manufactured gas, diesel oil or gasoline, or any other fuel source, for a term exceeding 12 months, a utility shall request commission ap- proval in accordance with 3 AAC 48.200 — 3 AAC 48.390 and provide the following information: (1) a copy of the proposed contract; (2) the load forecasting data that justifies the need for the con- tract: and (3) documentation that the proposed contract is the most feasible means available to the utility for meeting the forecasted load. (e) Upon entering into a contract with a nonregulated utility, other than a contract with a qualifying facility as defined in 3 AAC 50.820 (11), for the purchase of energy, including electrical energy or capac- ity, natural or manufactured gas, diesel oil or gasoline, or any other fuel source, for a term exceeding 12 months, a utility shall file with the commission the following information: (1) a copy of the contract; (2) the load forecasting data which justifies the need for the con- tract: and (3) documentation that the contract is the most feasible means available for meeting the forecasted load. (Eff. 1/1/87, Register 100) Authority: AS 42.05.141 AS 42.05.291 AS 42.05.151 AS 42.05.691 3 AAC 52.475. MAINTENANCE AND TESTING STAN- DARDS. (a) A utility shall adopt and pursue a maintenance program of periodic tests, inspections, and field maintenance to achieve effi- cient operation of its system so as to permit safe, adequate, and reli- able service at all times. Each utility shall maintain reasonable records indicating compliance with this subsection. (b) A utility with generating facilities shall maintain for each gen- erating station a station log that must include the following informa- tion: 499 June 26, 1990 Mr. Mike Tavella Utilities Engineer Alaska Public Utilities Commission 1016 West 6th Avenue, Suite 400 Anchorage, Ak. 99501 Dear Mr. Tavella: This letter is written in response to 3 AAC 52.475, which requests that a utility entering into power sales agreement with a non-regulated utility provide the Commission with a copy of their contract. Accordingly, I am enclosing a copy of our signed agreement with Eagle Power Company. Although our agreement is not based on the load forcasting data justification that is referenced in the Alaska Administrative Code, the agreement will provide many benefits to Eagle Village Energy Systems. I have listed some of the highlights of this agreement below: 1) Under this new agreement, Eagle Power Company will provide firm power to Eagle Village Energy System, and the village’s current plant will be used to provide standby capacity 2) There will be improved reliability and quality of power to Eagle Village 3) The agreement will result in reduced operations and maintenance costs and improved air quality, because the existing plant will operate only on standby. The agreement will also reduce Eagle Village’s bulk fuel storage spill risks and potential for fire hazards. 4) There will be reduced fuel requirements for both systems, as Eagle Power’s plant will be operating at a higher load factor It is our intention to begin purchasing power from Eagle Power Company upon completion of the intertie between Eagle Power’s existing distribution system and Eagle Village. Eagle Power will complete construction of the line this summer under a separate agreement with Alaska Energy Authority. I will be happy to answer any questions you might have about our plans. Please call me at our Council office (547-2271). Sincerely, Howard David, Chief Eagle Village IRA Council Enclosure as stated cc: Mr. Ralph Helmer, Eagle Power Company ke Alaska Energy Authority A Public Corporation March 9, 1990 Mr. Howard David, Chief Eagle Village IRA Council General Delivery Eagle Village, Alaska 99738 Subject: Power Cost Equalization Payments Dear Mr. David: Following your March 1, 1990 ene conversation with Cheryl Young, Power Cost Equal ization / ts i - | : fl is3> to ensure that un utility. has sufficient cash flow to operate and Maintain the power plant. However, all future payments will remain in suspense until we receive written clarification from your office on the status of very significant amounts owed to the utility by its customers. As stated in our December 19, 1989 letter (copy attached), we continue to support the Village Council's efforts to collect past due balances from your customers. However, despite the utilities efforts the customer accounts have wat oe Gubstaatiakler bec. and the Village Council has not yet demonstra e Energy Authority that the utility is not donating power to the village residents. The Energy Authority understands that some customers may not be able to pay the entire amount due at one time because your customer billings have accumulated over a substantial period of time. We do however expect that payments are substantial enough to reduce the total balance owed. As stated earlier, future PCE payments to the utility will be kept in suspense until we receive the following clarification from your office: OD. Evidence that ‘prudent utility management practices are in zi place to collect the monies due to the utility from its customers on a regular basis; = PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 X PO. Box.190869 701 East Tudor Road =Anchoraae, Alaska 99519-0869 (907) 561-7877 =a= 2. Copy of Eagle Village Energy System's Policy regarding: a. The handling of the utility's bad debt; Based upon the information provided we will determine the eligibility of Eagle Village Energy Systems or part of its customers, to continue receiving PCE entitlements. If you have questions concerning this request please call me or Cheryl Young at 561-7877. Sincerely, Youie Ula Glokia Manni, Director Accounting & Administration CY:GM:it Attachment as stated cc: Robert E. LeResche, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority G. Susan White, Alaska Energy Authority Cheryl Young, Alaska Energy Authority 3 AAC 52.470 ALASKA ADMINISTRATIVE CODE 3 AAC 52.470 months, or the period during which the most recent customer of record received service through the meter, whichever period is less. (e) If the meter of a residential or small commercial customer is tested and found to have under-registered the amount of energy or power delivered, a utility may not charge the customer for any underbillings unless there is evidence of meter or electric service tam- pering by the customer. If the meter of a wholesale, large power, or large commercial customer is tested and found to have unde: regis- tered the amount of energy or power delivered, a utility may charge the customer for underbillings for usage for no more than the four previous months unless there is evidence of meter or electric service tampering by the customer. (f) A utility shall test a meter upon request of a customer, and may charge the customer for the meter test according to its effective tariff. However, the utility may not charge the customer for the meter test if the meter is found to over- or under-register by more than two percent and there is no evidence of meter or electric service tampering by the customer. (g) Meters and associated service switches must be installed in a location where the meters will be readily and safely accessible for reading, testing, and inspection, and where such activities will cause the least interference and inconvenience to the customer. The cus- tomer shall provide sufficient and proper space for installation of meters, at a suitable and easily accessible location without cost to the utility. (h) If where the meter or service line location on the customer’s premises is changed at the request of the customer or is changed as a result of alterations to the customer’s premises, the customer shall provide and have installed at his or her expense all wiring and equip- ment necessary for relocating the meter and service line connection, and the utility may charge for moving the meter and service line. (Eff. 1/1/87, Register 100; am 9/15/88, Register 107) Authority: AS 42.05.141 AS 42.05.331 AS 42.05.151 AS 42.05.341 AS 42.05.291 AS 42.05.351 Editor’s notes. — Copies of 3 AAC 32. Public Utilities Commission 420 “L” 140 — 3 AAC 32.610, mentioned in 3 AAC — Street, Suite 100, Anchorage, Alaska 52.465(c), are available from the Alaska 99501. 3 AAC 52.470. ENGINEERING STANDARDS; ENERGY PURCHASE CONTRACTS. (a) A utility shall construct, maintain, and operate its plant in accordance with accepted engineering prac- tices to reasonably assure service reliability, service quality, and the safety of persons and property. 3 AAC 52.475 CoMMERCE AND Econ. Dev. 3 AAC (b) A utility shall design, construct, and maintain gene transmission, and distribution facilities in conformance with tk minimum electrical safety standards as adopted in AS 18.6 (c) A utility shall normally maintain generating capacity mented by the electric power regularly available from other s sufficient to meet all reasonable demands for service and pr reasonable reserve for emergencies. In addition to any other stz imposed by the commission, noninterconnected utilities shal tain, at a minimum, adequate reserve capacity to cover the los utility’s largest generating unit. Generating capacity assis interruptible customers may be considered for reserve capacit; mination. (d) Before entering into a contract with a regulated utility purchase of energy, including electrical energy or capacity, na manufactured gas, diesel oil or gasoline, or any other fuel sour term exceeding 12 mont ility shall request commiss i — 3 AAC 48.390 and e following information: (1) a copy of the proposed contract; (2) the load forecasting data that justifies the need for | tract; and (3) documentation that the proposed contract is the most means available to the utility for meeting the forecasted (e) Upon entering into a contract with a nonregulated utilit than a contract with a qualifying facility as defined in 3 AAC (11), for the purchase of energy, including electrical energy o ity, natural or manufactured gas, diesel oil or gasoline, or a1 fuel source, for a term exceeding 12 months, a utility shall { the commission the following information: (1) a copy of the contract; (2) the load forecasting data which justifies the need for tract; and (3) documentation that the contract is the most feasibl available for meeting the forecasted load. (Eff. 1/1/87, Regi: Authority: AS 42.05.141 AS 42.05.291 AS 42.05.151 AS 42.05.691 3 AAC 52.475. MAINTENANCE AND _ TESTING DARDS. (a) A utility shall adopt and pursue a maintenance of periodic tests, inspections, and field maintenance to achi cient operation of its system so as to permit safe, adequate, | able service at all times. Each utility shall maintain re records indicating compliance with this subsection. (b) A utility with generating facilities shall maintain for e erating station a station log that must include the following tion: 3 AAC 52.470 ALASKA ADMINISTRATIVE CODE 3 AAC 52.470 months, or the period during which the most recent customer of record received service through the meter, whichever period is less. (e) If the meter of a residential or small commercial customer is tested and found to have under-registered the amount of energy or power delivered, a utility may not charge the customer for any underbillings unless there is evidence of meter or electric service tam- pering by the customer. If the meter of a wholesale, large power, or large commercial customer is tested and found to have unde: regis- tered the amount of energy or power delivered, a utility may charge the customer for underbillings for usage for no more than the four previous months unless there is evidence of meter or electric service tampering by the customer. (f) A utility shall test a meter upon request of a customer, and may charge the customer for the meter test according to its effective tariff. However, the utility may not charge the customer for the meter test if the meter is found to over- or under-register by more than two percent and there is no evidence of meter or electric service tampering by the customer. (g) Meters and associated service switches must be installed in a location where the meters will be readily and safely accessible for reading, testing, and inspection, and where such activities will cause the least interference and inconvenience to the customer. The cus- tomer shall provide sufficient and proper space for installation of meters, at a suitable and easily accessible location without cost to the utility. (h) If where the meter or service line location on the customer’s premises is changed at the request of the customer or is changed as a result of alterations to the customer’s premises, the customer shall provide and have installed at his or her expense all wiring and equip- ment necessary for relocating the meter and service line connection, and the utility may charge for moving the meter and service line. (Eff. 1/1/87, Register 100; am 9/15/88, Register 107) Authority: AS 42.05.141 AS 42.05.331 AS 42.05.151 AS 42.05.341 AS 42.05.291 AS 42.05.351 Editor’s notes. — Copies of 3 AAC 32. Public Utilities Commission 420 “L” 140 — 3 AAC 32.610, mentioned in3 AAC — Street, Suite 100, Anchorage, Alaska 52.465(c), are available from the Alaska 99501. 3 AAC 52.470. ENGINEERING STANDARDS; ENERGY PURCHASE CONTRACTS. (a) A utility shall construct, maintain, and operate its plant in accordance with accepted engineering prac- tices to reasonably assure service reliability, service quality, and the safety of persons and property. 3 AAC 52.475 CoMMERCE AND Econ. Dev. 3 AAC (b) A utility shall design, construct, and maintain gene transmission, and distribution facilities in conformance with tk minimum electrical safety standards as adopted in AS 18.6 (c) A utility shall normally maintain generating capacity mented by the electric power regularly available from other s sufficient to meet all reasonable demands for service and pr reasonable reserve for emergencies. In addition to any other stz imposed by the commission, noninterconnected utilities shal tain, at a minimum, adequate reserve capacity to cover the los utility's largest generating unit. Generating capacity assis interruptible customers may be considered for reserve capacit; mination. (d) Before entering into a contract with a regulated utility purchase of energy, including electrical energy or capacity, na manufactured gas, diesel oil or gasoline, or any other fuel sour term exceeding 12 months, a utility shall request commiss proval in accordance with 3 AAC 48.200 — 3 AAC 48.390 and the following information: (1) a copy of the proposed contract; (2) the load forecasting data that justifies the need for | tract; and (3) documentation that the proposed contract is the most means available to the utility for meeting the forecasted (e) Upon entering into a contract with a nonregulated utilit than a contract with a qualifying facility as defined in 3 AAC (11), for the purchase of energy, including electrical energy 0 ity, natural or manufactured gas, diesel oil or gasoline, or a1 fuel source, for a term exceeding 12 months, a utility shall { the commission the following information: (1) a copy of the contract; (2) the load forecasting data which justifies the need for tract; and (3) documentation that the contract is the most feasibl available for meeting the forecasted load. (Eff. 1/1/87, Regi: Authority: AS 42.05.141 AS 42.05.291 AS 42.05.151 AS 42.05.691 3 AAC 52.475. MAINTENANCE AND TESTING DARDS. (a) A utility shall adopt and pursue a maintenance of periodic tests, inspections, and field maintenance to achi cient operation of its system so as to permit safe, adequate, able service at all times. Each utility shall maintain re records indicating compliance with this subsection. (b) A utility with generating facilities shall maintain for e erating station a station log that must include the following tion: 3 AAC 52.470 ALASKA ADMINISTRATIVE CODE 3 AAC 52.470 months, or the period during which the most recent customer of record received service through the meter, whichever period is less. (e) If the meter of a residential or small commercial customer is tested and found to have under-registered the amount of energy or power delivered, a utility may not charge the customer for any underbillings unless there is evidence of meter or electric service tam- pering by the customer. If the meter of a wholesale, large power, or large commercial customer is tested and found to have unde: regis- tered the amount of energy or power delivered, a utility may charge the customer for underbillings for usage for no more than the four previous months unless there is evidence of meter or electric service tampering by the customer. (f) A utility shall test a meter upon request of a customer, and may charge the customer for the meter test according to its effective tariff. However, the utility may not charge the customer for the meter test if the meter is found to over- or under-register by more than two percent and there is no evidence of meter or electric service tampering by the customer. (g) Meters and associated service switches must be installed in a location where the meters will be readily and safely accessible for reading, testing, and inspection, and where such activities will cause the least interference and inconvenience to the customer. The cus- tomer shall provide sufficient and proper space for installation of meters, at a suitable and easily accessible location without cost to the utility. (h) If where the meter or service line location on the customer's premises is changed at the request of the customer or is changed as a result of alterations to the customer's premises, the customer shall provide and have installed at his or her expense all wiring and equip- ment necessary for relocating the meter and service line connection, and the utility may charge for moving the meter and service line. (Eff. 1/1/87, Register 100; am 9/15/88, Register 107) Authority: AS 42.05.141 AS 42.05.331 AS 42.05.151 AS 42.05.341 AS 42.05.291 AS 42.05.351 Editor's notes. — Copies of 3 AAC 32. Public Utilities Commission 420 “L” 140 — 3 AAC 32.610, mentioned in3 AAC — Street, Suite 100, Anchorage, Alaska 52.465(c), are available from the Alaska 99501. 3 AAC 52.470. ENGINEERING STANDARDS; ENERGY PURCHASE CONTRACTS. (a) A utility shall construct, maintain, and operate its plant in accordance with accepted engineering prac- tices to reasonably assure service reliability, service quality, and the safety of persons and property. 3 AAC 52.475 COMMERCE AND Econ. Dev. 3 AAC (b) A utility shall design, construct, and maintain gene transmission, and distribution facilities in conformance with tk minimum electrical safety standards as adopted in AS 18.6 (c) A utility shall normally maintain generating capacity | mented by the electric power regularly available from other s sufficient to meet all reasonable demands for service and pri reasonable reserve for emergencies. In addition to any other stz imposed by the commission, noninterconnected utilities shal tain, at a minimum, adequate reserve capacity to cover the los utility’s largest generating unit. Generating capacity assig interruptible customers may be considered for reserve capacit: mination. (d) Before entering into a contract with a regulated utility purchase of energy, including electrical energy or capacity, na’ manufactured gas, diesel oil or gasoline, or any other fuel sour term exceeding 12 months, a utility shall request commiss proval in accordance with 3 AAC 48.200 — 3 AAC 48.390 and the following information: (1) a copy of the proposed contract; (2) the load forecasting data that justifies the need for 1 tract; and (3) documentation that the proposed contract is the most means available to the utility for meeting the forecasted (e) Upon entering into a contract with a nonregulated utilit than a contract with a qualifying facility as defined in 3 AAC (11), for the purchase of energy, including electrical energy 0 ity, natural or manufactured gas, diesel oil or gasoline, or ar fuel source, for a term exceeding 12 months, a utility shall f the commission the following information: (1) a copy of the contract; (2) the load forecasting data which justifies the need for tract; and (3) documentation that the contract is the most feasibl: available for meeting the forecasted load. (Eff. 1/1/87, Regis Authority: AS 42.05.141 AS 42.05.291 AS 42.05.151 AS 42.05.691 3 AAC 52.475. MAINTENANCE AND _ TESTING DARDS. (a) A utility shall adopt and pursue a maintenance | of periodic tests, inspections, and field maintenance to achi cient operation of its system so as to permit safe, adequate, : able service at all times. Each utility shall maintain rei records indicating compliance with this subsection. (b) A utility with generating facilities shall maintain for e erating station a station log that must include the following tion: u 7 meting oa irfeNer ao 4 fr PesT REED. Pes7z- BIR Zr ere me te- "ner DRY - mer ts Ceol | mig w/ EP mete, || —/4 ViIST - x0 ) prob! tr comnsdbre dst Pt hefne 75 Max po bs pr dt ? i o> ss ee. Ask Sb_ Gre | Dw” Scope LA Rm Ome fr fO4 “amonce nog Me " | LORE: Scie Patt Sats. Seal | KELEVANL INFORMATION - EAGLE VILLAGE ENERGY SYSTEMS PCE - 6/30/89 Staff recommends acceptance of the utility's filing with the following exceptions 1. Eight adjustments to non-fuel costs (See Appendix 2) 2. One adjustment to fuel costs Observations: (* indicates conditions for next filing) 3. The filing was timely but incomplete. The original of the accounts extended check register was enclosed. Staff copied and returned the original, at the same time requesting clarification of some entries. Working from the register it was possible for Staff to categorize and calculate account totals and to complete the filing. 4. Eagle Village Energy Systems eligible costs and average class rates both exceed the maximum levels allowable for PCE. 5. Generation efficiency is 1.23 below the 10/1/90 minimum standard established by the Commission. 6. Assuming the 1990 efficiency of 6.0, the eligible costs less 8.5 cents (.4261) would still exceed the .4180 maximum PCE level allowed. > || G |\ ce EAGLE VILLAGE ENERGY SYSTEMS POWER COST EQUALIZATION CALCULATION FOR PERIOD ENDING June 30, 1989 . Total KWH Generated . Total KWH Sold (Appendix 2) . Total Non-Fuel Costs (Appendix 2) - Non-Fuel Cost/KWH (C / B) . Total Fuel Costs (Appendix 2) . Fuel Costs/KWH (E / B) . Eligible Costs/KWH (D + F) . Eligible Cost/KWH (G) Less 8.5 cents/KWH . Lesser of (H) or 44 cents/KWH . Average Class Rates (Appendix 3) ALL Prior Commission Approval 6/30/88 Utility Request 6/30/89 APPENDIX 1 Staff Recommended 6/30/89 54,022 235292 $0.4312 13,997 $0.2591 $0.6903 $0.6053 $0.4400 $0.4650 Class Power Cost Equalization Per KWH Payable by AEA . Lesser of: (I) x 95%, or (J) $0.4180 44,267 18,214 $0.4115 9,290 $0.2099 $0.6213 $0.5363 $0.4400 $0.4650 $0.4180 14,732 $0.3328 9,940 $0.2246 $0.5574 $0.4724 $0.4400 $0.4650 $0.4180 (I. oO ae aS NX — PENDIX 2 Q/ EAGLE VILLAGE ENERGY SYSTEMS Of 2s SCHEDULE OF ELIGIBLE POWER COSTS, SALES AND ICIENCY FOR PERIOD ENDING June 30, 198 SS ' NOTE: See Appendix 2A for instructions and detail. — nats ri 'N) Prior Commission Per Staff Per Approval Utility Adjustments /| Staff Non-Fuel Costs: 6/30/88 6/30/89 | 6/30/89 . Personnel Costs 14,523 5,100 (1,100) {1} 233 ey 6,733 - Power Plant Parts & Supplies 1,806 1,269 90 {3} 1,359 - Repairs and Maintenance 4,862 105535 (4,000) (4} 30 {5} (300) {6} (655) {7} 5,610 . General and Administrative 2,101 1,060 (280) {8} 780 . Depreciation 250 250 . Interest Expense . Other (Describe) Total Non-Fuel Costs 235292 18,214 (3,482) 14,732 Fuel Costs: Gallons Consumed for Electric Generation 14,430 9,290 9,290 . Price of Fuel:(cts per gal.) Weighted Average . Most Recent Price $1.070 $0.970 $1.000 0.07 {9} ,¢$1.070 > Date Purchased 5/3/89 : . Total Cost of Fuel (I x J or K) 13,997 9,290 9,940 . KWH Sales 54,022 44,267 44,267 . Efficiency (0 / I) 3.74 4.77 4.77 {10} APPENDIX 2 EAGLE VILLAGE ENERGY SYSTEMS Page 2 of 2 SCHEDULE OF ELIGIBLE POWER COSTS, SALES AND EFFICIENCY FOR PERIOD ENDING June 30, 1989 Footnotes Appendix 2 {1} Adj. to Total Compensation (Personnel Cost) to reflect actual costs (filing) $5,100 - $4,000 (Staff) = $1,100 {2} Adj. to add payroll taxes not included in Total Compensation {3} Adj. to include additional freight costs (Staff) $314.65 - 224.80 (filing) = $89.85 {4} Adj. to amortize December 1988 generator overhaul 5,000/2.5 yr. = 2,000 per yr. * 2 yr. remaining = 4,000 {5} Adj. for omitted Casual Labor (Staff) $110 - $80 (filing) = $30 {6} Adj. to remove unpaid portion of contract maintenance (filing) $4,800 - $4,500 (Staff) = $300 {7} Adj. to remove Non-recurring oi] spill cleanup casual labor expense {8} Adj. to remove unaccounted for per diem (filing) $760 - $480 (Staff) = $280 {9} Adj. to reflect most recent cost of fuel {10} Commission minimum standard for 1990 is 6.0 Alternate Form Appendix 2A Page 1 of 2 q : HG & 4 4-<) 3 fpf — > UTILITY NAME: Cagle YUE OS yt? DETAIL SCHEDULE OF ELIGIBLE POWER COSTS ™ 6 TEST PERIOD NOTE: Attach additional sheets if more room is needed for detail. NON-FUEL COSTS Personnel Costs Compensation Employee Name Job Description Current-Wage During - A Hour/Month) - Tes riod_. hbo, Stoves Warde oh KE ED 2) Hoxsfhin [dyn freer [7a 0d OF he aly Yeo, oF 3) Liana [itussed Pi ; OTC “400.00 4) A escee, Z ——- - 5) ee A. Total Compensation During Test Period (Add 1-5) 7 : B. Employer Portion of Payroll Taxes(ESC,FICA,FUTA) [ra | Cc. Other (Describe) —_ TOTAL Pers. Costs (To Alt. Form Appdx. 2, Line A) Lo Leones Power Plant Parts and Supplies D. Lube Oil 44 ZO E. Oil Filters/Fuel Filters [ £25 F. Small Tools (Under $200) G. Other (Describe) nee oe Blue et Yseid ri Sie aie. Thargicn “ mn Sup plid, ; TOTAL Parts & Supply (To Alt Form Appdx. 2, Line B) Repairs and Maintenance a _ H. Amortization of Major Overhauls - Bn bach Bentiat nt g 600, Ou I. Emergency Repairs a -_, moe J. Routine Maintenance Sul-Crctrate: Marl C04 m = I RPO.0U. K. Other (Describe) Chia 1AAD ath prpah i daugth aS Sa Yeu te Any . TOTAL Repair & Maint.(To Alt Form Appdx. 2, Line c) _/@352.5. 00> General and Administrative L. Outside Professional Services Kerman h SOUVe Ws. ‘ 36,.O@ M. Insurance N. Office Supplies — S440? >2*« Lyet, [xe 0. Office Rent— Pnromsr Ge 6%: Toric. [= P. Travel - P ae Q. Other (Describe) Jade n.- Lusk 102 tangy ai Lr fOrtiia Bet — eee TOTAL Gen. & Admin. (To Alt Form Appdx. 2, Line D) 4, 04 97..5.2- Losses = 49.4% 1/90-3/90 PCE ECONOMIC ANALYSIS Village: Eagle Village kWh Sold FY89: 44346 kWh* Eagle Power rate,$/kWh 0.3800 Date: March 28, 1990 Elec Generated: 89609 kWh, (incl 49.4% loss) Construction Cost: $O Elec. Increase: 0.00% Net Benefit: $132,391 Fuel Effy FY90: 4.74 kWh/gal* New Effy: 0 4.74 kWh/gal Present Value Current Scenario: $0 Fuel Price: 1.063 $/gal** Present Value PCE Scenario: $132,391 Fuel Price Increase 0.00% Discount Rate: 3.00% Max Construction Cost: $132,391 — SCENARIO NEW a SCENARIO ($) (s cue (gal_ saved) ba iat ($) ($s voll (gal_saved)|($ saved Investment Year 0} $0 $0 Savings: 0 $0 $0 0 $0 $0 0 $0 $0 “ 0 $0 $0 x 0 $0 $0 & 0 $0 $0 0 $0 $0 “ 0 $0 $0 0 0 $0 $0 Savings: 0 $0 $0 NOTES: CURRENT SCENARIO No Capital Cost Incurred There are no fuel savings NEW PROJECT SCENARIO Capital Cost is included in Eagle Power analysis Generating fuel efficiency from FY89 PCE data Fuel (gallons saved) is equal to FY89 kWh sold divided by fuel efficiency Fuel ($ Saved) is based on FY90 $/gallon and gallons of fuel saved O&M ($ saved) for diesel backup are estimated at 80% of FY89 O&M costs Maximum Construction Cost is equal to the Construction Cost minus the Present Value Current Scenario plus the Present Value PCE Scenario * From FY89 PCE data ** 9/29/89 APUC PCE rate filing Dana 1 PCE RATE ANALYSIS |APUC/PCE CURRENT |NEW PROJECT SCENARIO Capital Cost: $0 IDATA FY89 | SCENARIO PCE ($) PCE ($) |CAPITAL($) PCE ($) Simple Payback, years #DIV/0! Investment Year $0 $0 $0 $0 Benefit Cost Ratio: #01V/0! Savings: ($16,809) ($16,809) ($16,809) " ($16,809)| ($16,809) ($16,809)| Maximum Cost for 10yr Payback:[ $0 | " ($16,809)| ($16,809) ($16,809) " ($16,809)| ($16,809) ($16,809) " ($16,809)| ($16,809) ($16,809) " ($16,809)| ($16,809) ($16,809) " ($16,809)] ($16,809) ($16,809) " ($16,809)] ($16,809) ($16,809) * ($16,809)| ($16,809) ($16,809) Savings: ($16,809)| ($16,809) ($16,809) APUC/PCE DATA, FY89 ($168, 090)[ ($168,090) __—=——$0_ | ($168,090) CURRENT SCENARIO, FY90 NEW PROJECT SCENARIO, FY90 Purchased Elec. Cost: $34,051 Fuel Cost: $9,940 Fuel Cost: $9,945 Fuel Cost: $0 Kwh Sold: 44,267 Kwh Sold: 44,346 Kwh Sold: 44,346 Non- fuel Cost: $14,732 Non- fuel Cost: $14,732 Non- fuel Cost: $9,157 Kwh Sold: 44,267 Kwh Sold: 44,346 Kwh Sold: 44,346 PCE Rate: 0.4180 PCE Rate: 0.4181 PCE Rate: 0.4180 Elec Cost: 0.5573 Elec Cost: 0. Elec Cost: a. Elig. Kwh Sold: 40,213 Elig. Kwh Sold: 40,213 Elig. Kwh Sold: 7213 PCE Total Costs: $16,809 PCE Total Costs: $16,809 PCE Total Costs: $16,809 NOTES: PCE Annual Savings: New Proj vs. APUC/PCE Cs] PCE Annual Savings: New Proj vs. Current Ls] APUC/PCE DATA, FY89 Fuel Cost, Non-fuel Cost, and Kwh Sold are from the latest APUC PCE rate filing Eligible Kwh Sold is from the annual AEA FY89 PCE report CURRENT SCENARIO ic! /gal, est so Non- Lier Cost includes eee DATA aon suet cose a depreciation and interest expense for the new equipment Eligible Kwh sold is from the annual AEA Fy89 FCE-repore-PeUs S32 NEW PROJECT SCENARIO ~rurctnsed electricity astinated-trowtih-sold-in-turseot Scanacie-ptrTE~ fit sap + 49,4 Fuel cost is zero Non-fuel Cost is from the latest APUC PCE rate filing minus 80% of FY89 O&M kWh sold is same as in Current Scenario Eligible Kwh Sold is from the annual AEA FY89 PCE report PEUS—5;325—Wh. low CURRENT SCENARIO NON-FUEL COSTS Non-Fuel Cost: $14,732 Capital Cost: $0 Depreciation Term: 10 yrs Depreciation and Interest Expense $0 per year Interest Rate: 7.00% Real Interest Rate: 3.00% Inflation Rate: 3.90% Non-fuel Cost plus depreciation and interest expense: $14,732 per year Losses = 49.4% 1/90-3/90 PCE ECONOMIC ANALYSIS Village: Eagle Village kWh Sold FY89: 80648 kWh*(44267 act sold) Eagle Power rate,$/kWh 0.3800 Date: March 28, 1990 Elec Generated: 89609 kWh, (incl 10% losses) Construction Cost: $0 Elec. Increase: 0.00% Net Benefit: $132,690 Fuel Effy FY90: 8.6 kwh/gal** New Effy: 0 8.6 kWh/gal Present Value Current Scenario: $0 Fuel Price: 1.063 $/gal*** Present Value PCE Scenario: $132,690 Fuel Price Increase 0.00% Discount Rate: 3.00% Max Construction Cost: $132,690 CURRENT SCENARIO NEW PROJECT SCENARIO ($) ($ saved) |(gal_saved)| ($ saved) ($) ($ saved) |(gal_saved)|($ saved) Investment Year $0 $0 0 $0 0 Savings: $0 $0 0 $0 9,389 “ $0 $0 0 $0 9,389) “ $0 $0 0 $0 9,389) " $0 $0 0 $0 9,389) “ $0 $0 0 $0 9,389) “ $0 $0 0 $0 9,389) “ $0 $0 0 $0 9,389) " $0 $0 0 $0 9,389) " $0 $0 0 $0 9,389) Savings: $0 $0 0 $0 9,389 Pp gers Pn $47,558 [ $85, 132 | NOTES: CURRENT SCENARIO No Capital Cost Incurred There are no fuel savings NEW PROJECT SCENARIO Capital Cost is included in Eagle Power analysis Generating fuel efficiency based on 9 month FY90 data Fuel (gallons saved) is equal to est'd FY90 kWh gen'd divided by fuel efficiency Fuel ($ Saved) is based on FY90 $/gallon and gallons of fuel saved 0&M ($ saved) for diesel backup are estimated at 80% of FY89 O&M costs Maximum Construction Cost is equal to the Construction Cost minus the Present Value Current Scenario plus the Present Value PCE Scenario * Est'd from ratio kWh gen'd 1/90-4/90 & kwh sold 1/90-4/90, times first 9 mo kWh sold FY90, times 9/12 mo FY89 data ** Efficiency of 7.4 kWh sold/gal estimated from first 9 months FY90 data and est of kwh generated *** REA FY 90 PCE data Investment Year Savings: Savings: APUC/PCE DATA, FY89 Fuel Cost: $9,940 Kwh Sold: 44,267 Non-fuel Cost: $14,732 Kwh Sold: 44,267 PCE Rate: 0.4180 Elec Cost: 0.5573 Elig. Kwh Sold: 40,213 PCE Total Costs: $16,809 NOTES: APUC/PCE DATA, FY89 PCE RATE ANALYSIS axats [1480903] cate0- sean] —— so] 13190, 509) CURRENT SCENARIO, FY90 Fuel Cost: Kwh Sold: Non- fuel Cost: Kwh Sold: PCE Rate: Elec Cost: Elig. Kwh Sold: PCE Total Costs: PCE Annual Savings: New Proj vs. APUC/PCE CURRENT |NEW PROJECT SCENARIO SCENARIO |APUC/PCE Year [DATA FY89 | PCE ($) | PCE ($) [CAPITAL(S) | PCE ($) | $0 ($19,035) ($19,035) ($19,035) ($19,035) ($19,035) ($19,035) ($19,035) ($19,035) ($19,035) ($19,035) $9,980 80,648 $14,732 80,648 0.2103 0.3064 76,515 $16,095 ($2,226) Fuel Cost, Non-fuel Cost, and Kwh Sold are from the latest APUC PCE rate filing Eligible Kwh Sold is from the annual AEA FY89 PCE report CURRENT SCENARIO Fuel Cost is based on WEIGHTED AVERAGE fuel effic'y OF 7.6 kWh/gal, Capital Cost: $0 Simple Payback, years 0.00 Benefit Cost Ratio: #D1V/0! Maximum Cost for 10yr Payback: | ($29,401) NEW PROJECT SCENARIO, FY90 Purchased Elec. Cost: $34,051 Fuel Cost: $0 Kwh Sold: 80,648 Non- fuel Cost: $9,157 Kwh Sold: 80,648 PCE Rate: 0.4180 Elec Cost: 0.5358 Elig. Kwh Sold: 45,538 PCE Total Costs: $19,035 PCE Annual Savings: New Proj vs. Current est'd kWh sold, and $/gallon for fuel Non-fuel Cost includes APUC/PCE DATA Non-fuel cost PLUS depreciation and interest expense for the new equipment kWh sold is est'd from the ratio of kWh gen'd 1/90-4/90 and kWh sold 1/89-4/89, multiplied by total kWh sold in FY89 Eligible Kwh Sold is from the annual AEA FY89 PCE report PLUS 5,325 kWh NEW PROJECT SCENARIO Purchased electricity estimated from kWh sold in Current Scenario plus 10% Fuel cost is zero Non-fuel Cost is from the latest APUC PCE rate filing minus 80% of FY89 O&M kWh sold is same as in Current Scenario Eligible Kwh Sold is from the annual AEA FY89 PCE report PLUS 5,325 kWh CURRENT SCENARIO NON-FUEL COSTS Non-Fuel Cost: $14,732 Capital Cost: $0 Depreciation Term: 10 yrs Interest Rate: 7.00% Real Interest Rate: 3.00% Inflation Rate: 3.90% Depreciation and Interest Expense Non-fuel Cost plus depreciation and interest expense: $14,732 per year $0 per year PCE ECONOMIC ANALYSIS Village: Eagle Power Elec. Sold FY89: 455776 kwh* Construction Cost: $75,000 Date: March 28, 1990 Eagle Vill kWh sold: 80648 kWh*** Elec. Sold to Eagle: 89609 kWh, (incl 10% losses) Net Benefit: HH Elec. Increase: 0.00% Fuel Effy FY89: 11.1 kWh/gal* Present Value Current Scenario: ($33,981) New Effy: 0 11.1 kWh/gal Present Value PCE Scenario: ($138,205) Fuel Price: 0.917 $/gal** Fuel Price Increase: 0.00% Max Construction Cost: ($29,224) Discount Rate: 3.00% CURRENT SCENARIO NEW PROJECT SCENARIO Capital Capital Fuel ($) g ($) ($_ saved) |(gal_saved)|($ saved) Investment Year: $0 0 $0 | ($75,000) $0 Savings: ($35,000) 0 $0 ($7,410) " 0 $0 ($7,410) . 0 $0 ($7,410) . 0 $0 ($7,410) " 0 $0 ($7,410) i 0 $0 ($7,410) " 0 $0 ($7,410) " 0 $0 ($7,410) " 0 $0 ($7,410) Savings: 0 $0 $0 ($7,410) 0 $0 | ($75,000)[ $0 [ -80802] ($74,095) so] cs75,000[ TY 863, 205) NOTES: CURRENT SCENARIO There are no Capital Costs There are no fuel savings NEW PROJECT SCENARIO Capital Cost includes the estimated cost of $30,000 towards intertie construction Generating fuel efficiency is 11.09 Kwh/gal Fuel (gallons) is based on the generation efficiency and kWh sold to Eagle Village at 95% availability Fuel ($) is based on FY90 $/gallon and gallons of fuel consumed to produce power for Eagle Village O&M costs savings are assumed negligible Maximum Construction Cost is equal to the Construction Cost minus the Present Value Current Scenario plus the Present Value PCE Scenario * FY89 PCE data ** 3/31/89 APUC PCE rate filing, updated 9/24/89 *** Imputed based on 10 year weighted average fuel efficiency of 7.6 kWh sold/gal, and gallons of fuel consumed in FY8 PCE RATE ANALYSIS JAPUC/PCE CURRENT |NEW PROJECT SCENARIO Capital Cost: $75,000 IDATA_FY89 | SCENARIO | PCE ($) | PCE ($) |CAPITAL($) | PCE ($) | Simple Payback, years: 8.98 Investment Year: Benefit Cost Ratio: 114 Savings: as Maximum Cost for 10yr Payback: | $83,534 " " " " " " " Savings: Total: [¢$631, 194] ($644,521)] ($75, 000)] ($560,987) APUC/PCE DATA, FY89 CURRENT SCENARIO, FY90 NEW PROJECT SCENARIO, FY90 Fuel Cost: $37,363 Fuel Cost: $37,687 Fuel Cost: $45,096 Kwh Sold: 448,932 Kwh Sold: 455,776 Kwh Sold: 545,385 Non- fuel Cost: 103,196 Non-fuel Cost: $107,210 Non- fuel Cost: $108,511 Kwh Sold: 448,932 Kwh Sold: 455,776 Kwh Sold: 545,385 PCE Rate: 0.2167 PCE Rate: 0.2213 PCE Rate: 0.1868 Elig. Kwh Sold: 291,287 Elig. Kwh Sold: 291,287 Elig. Kwh Sold: 300,287 PCE Total Costs: $63,119 PCE Total Costs: $64,452 PCE Total Costs: $56,099 PCE Annual Savings: NOTES: New Proj vs. Current APUC/PCE DATA, FY89 Fuel Cost, Non-fuel Cost, and Kwh Sold are from the latest APUC PCE rate filing Eligible Kwh Sold is from the annual AEA FY89 PCE report CURRENT SCENARIO Fuel Cost is calculated based on CURRENT generating fuel efficiency, kwh sold, and $/gallon for fuel Non-fuel Cost includes APUC/PCE DATA Non-fuel cost PLUS depreciation and interest expense for the new equipment Kwh Sold is from annual AEA FY89 PCE report Eligible Kwh Sold is from the annual AEA FY89 PCE report NEW PROJECT SCENARIO Fuel Cost is calculated based on fuel efficiency, kwh sold(including kWh sold to Eagle Village,) and fuel $/gallon Non-fuel Cost is from the latest APUC PCE rate filing Kwh Sold is from annual AEA FY89 PCE report plus kWh sold to Eagle Village Eligible Kwh Sold is from the annual AEA FY89 PCE report (plus 750x12mo=9000kWh) CURRENT SCENARIO NON-FUEL COSTS Non-Fuel Cost: 103,196 Capital Cost: 45000 Depreciation Term: 10 yrs Depreciation and Interest Expense $5,315 per year PCE Scenario @ $45K Interest Rate: 7.00% Depreciation and Interest Expense $4,014 per year Current Scenario Real Interest Rate: 3.00% (for 35k in year 2) Inflation Rate: 3.90% $107,210 current scenario Non-fuel Cost plus depreciation and interest expense: $108,511 pce scenario Pane ? ee ———— Dialga mobi 3lze/70 =) 16897 kom f jo tated m (2/23/89 Pom? “12/22/85 - 3/eco ented | Se eel fen sued ei Sel fed aa : i bexeeo “& (2lah- i U38 C536. BO ee Ue/90 WO sgt p42 24- 3 Gp 2694 UF TEO S55" 224 ll Be 31/26. (464 33/0 WO 2.07 4.66 SSSO bud (E394 ZEz0X 3.26 oY Y (so | 9 33/3 = 12996 bow seed 527.3% Wee le = YY Ee SOLD ] qr FYSt, Ani-Sne = (tb6% en lalaales - Weefpo = 9SSBQ buy cory sks Y9.9% lesses Me 8 MIP ero 747 12/22/94 < 19389 Ker seed g at bon cn O33 Helge bol pe <5 80 = Jo 3 Ja Y = = [27734 bw Il ARS Sere Art - Re We 19.6% 7 oy ome Sener | KYO) + ATGR3G = 46 [4 2Y he ECONUP2.XLS,5/10/90,10:48 AM I INTERTIE AVOIDED COSTS ] INTERTIE INCURRED COSTS Eagle Power - Eagle Village Intertie EAGLE VILLAGE AVOIDED EAGLE POWER | INTERTIE DIESEL TOTAL Transmission Length (miles): 1 DIESEL ELECTRIC FUEL FUEL NON ~- FUEL ANNUAL NON- FUEL BACKUP INCURRED CAPITAL | CONSUMPTION | CONSUMPTION cost Cost cost cost Cost cost (Kwh Sold) (GALLONS) ($) ($) (kWh) ($) Construction Cost (1990 $): $75,000 ($) (w/10% loss) (0% FUEL) On-line year: 1991 Construction Period (yrs): 1 0 0 0 0 -35000 0 0 0 0 0 0 0 Discount Rate: 3.00% 0 0 0 0 Inflation Rate: 0.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EAGLE POWER : 0 0 0 0 Fuel Effcy (kWh sold/gal): 11.09 0} 0 0 0 Fuel Cost ($/gal): $0.917 0 0 0 0 Non-fuel Costs: 0 0 0 0 0 0 0 0 0 O&M Costs ($): 0.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EAGLE VILLAGE: 0 0 0 0 Eagle Village FY89 Energy(Kwh): 80648) 0 0 0 0 Annual Energy Growth (%): 0.00% 0 0 0 0 Fuel Efficiency (kWh gen/gal): 8.625 0 0 0 0 Fuel Cost ($/gal): $1.07 0 0 0 0 Avoided Non-fuel Cost ($/yr): $5,575 0 0 0} 0 0 0 0} 0 line losses 10% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0} 0 Total: -35,000 2,419,440 280,515 300,151 167,256 432,407 Total: 2,688,267 242,405 222,285 0 0 0 222,285 Present Value: $272,388 Present Value: $145,229 BENEFIT/COST RATIO: 1.70 PRESENT VALUE AVOIDED COSTS: PRESENT VALUE OF INCURRED COSTS: Intertie Net Benefit $127,159 Table 1 INTERTIE AVOIDED COSTS INTERTIE INCURRED COSTS Eagle Power - Eagle Village Intertie EAGLE VILLAGE AVOIDED EAGLE POWER INTERTIE DIESEL TOTAL Transmission Length (miles): DIESEL ELECTRIC FUEL NON ANNUAL NON~ FUEL O&M BACKUP INCURRED CAPITAL | CONSUMPTION | CONSUMPTION cost COSTS cosT cost (Kwh Sold) | (GALLONS) ($) (kWh) ($) ($) Construction Cost (1990 $): $75,000 ($) (w/10% loss) (5% FUEL) On-line year: (895% avail) Construction Period (yrs): 0 9290 74524 0 0 -35000 9290 74524) 0 0 0 9290 74524) 0 0 Discount Rate: 0 9290 74524) 0 0 Inflation Rate: 0 9290) 74524) 0 0 0 9290) 74524 0 0 0 9290 74524) 0 0 0 9290) 74524 0 0 EAGLE POWER =: 0 9290 74524 0 0 Fuel Effcy (kWh sold/gal): 0 9290) 74524 0 0 Fuel Cost ($/gal): 0 9290; 74524 0 0 Non- fuel Costs: 0 9290) 74524 0 0 0 9290) 74524 0 0 O&M Costs ($): 0 9290) 74524 0 0 line losses 0 9290) 74524) 0 0 0 9290) 74524 0 0 0 9290) 74524 0 0 EAGLE VILLAGE: 0 9290) 74524) 0 0 Eagle Village FY89 Energy(Kwh): 0 9290 74524 0 0 Annual Energy Growth (%): 0 9290 74524 0 0 Fuel Efficiency (kWh gen/gal): 0 9290) 74524 0 0 Fuel Cost ($/gal): 0 9290 74524) 0 0 Avoided Non-fuel Cost ($/yr): 0 9290) 74524 0 0 0 9290) 74524 0 0 0 9290 74524) 0 0 0 9290 74524) 0 0 0 9290) 74524) 0 0 0 9290) 74524 0 0 0 9290; 74524 0 0 0 9290 74524) 0 0 Total: -35,000 278,692 298,201 167,256 430,457 Total: 2,235,730 Present Value: $271,114 Present Value: $130,523 BENEFIT/COST RATIO: 1.87 PRESENT VALUE AVOIDED COSTS: PRESENT VALUE OF INCURRED costs: [$130,523 | Intertie Net Benefit $140,591 Table 1 ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 4/09/90 Director of Rural Programs Thru: Dick Emerman iar ff’ Senior Economist From: Steve Stassel Engineering Anal Subject: Eagle-Eagle Village Intertie PCE Rate Analysis INTRODUCTION The proposed Eagle Power-Eagle Village intertie is a single phase, 7.2 kV transmission line approximately 1.4 miles long connecting the existing Eagle Power distribution system with the Eagle Village powerhouse. The estimated cost of construction is $40,000. There is a proposal to relocate the Eagle Village powerhouse and upgrade their distribution system. However, this analysis encompasses only the merits relative to the intertie. EXECUTIVE SUMMARY The concept of connecting Eagle Village and Eagle Power with an intertie is an attractive one. Comparing FY89 PCE data, Eagle Power’s power production cost is almost 45% less than Eagle Village’s, due to lower fuel prices and better fuel efficiency. However, the reliability of the PCE data for Eagle Village is questionable. The possibility exists that Eagle Village’s poor efficiency is due to unmetered loads. In order to provide an idea of the impact unmetered loads could have on the feasibility of the intertie, two cases were analyzed: Implied kWh and Estimated kWh Scenario’s. The assumptions used in the Implied kWh Scenario are: 1) Eagle Village’s fuel efficiency will be 7.6 kWh sold/gallon (based on a 10 year average of the PCE efficiency standards effective October 1990.) 2) FY89 kWh consumed (sold) are 71,060 kWh (based on FY89 gallons of fuel and 7.6 kWh/gallon.) 3) All additional kWh consumed (sold) (i.e. above 44,346 reported for FY89) are PCE eligible kWh The assumptions used in the Estimated kWh Scenario are: 1) Eagle Village’s fuel efficiency will be 5.3 kWh sold/gallon (calculated from actual kWh generated in the first quarter of 1990 and FY89 reported PCE data.) and 5.3 kWh/gallon.) 3) All additional kWh consumed (sold) (i.e. above 44,346 reported for FY89) are PCE eligible kWh. These two cases were selected to provide best and worst case scenario’s with which to compare the available PCE data. An analysis of the economics, and the power production and PCE costs was performed for both cases. The results of the economic analysis are: -For all cases, the intertie is economic over a 30 year useful life. This assumes that the rates charged by Eagle Power would be low enough to capture all of Eagle Village’s power requirements. The results of the PCE analysis are: -At Eagle Power’s proposed rate of $.38/kWh, Eagle Village’s real cost of electricity could increase between 34% and 58%. -To ensure that Eagle Village’s out of pocket costs do not increase as a result of the intertie, the purchased power rate could be no greater than $.155/kWh for the first case and $.32 for the second case. -For the first case: at a purchased power rate of $.38/kWh, the PCE program would incur a net increase of $3,752/year. At $.155/kWh, the PCE program would incur a net savings of $10,300/year. -For the second case: at $.38/kWh and $.32/kWh, the PCE program would incur a net savings of $2,304/year. As a result of this analysis the following recommendations are made: -Additional load data is required to determine more accurately the existing efficiency of Eagle Village power production, and the impact of the intertie on their power costs. This data will be available next year as a result of the totalization meter installed in December 1989. -The intertie should not be built unless Eagle Village’s out of pocket costs either remain constant or are reduced by: a) negotiating a purchased power rate substantially less than $.38/kWh b) eliminating both Eagle Village’s fuel and non-fuel costs Without such prior arrangements, the State risks building an intertie that may rarely be used despite its attractive underlying economics. Table 1 includes data from both the Alaska Public Utilities Commission (APUC) and the Energy Authority’s PCE program. This data is used as the basis of comparison with the two projected scenarios included in tables 2 & 3. Table 2 includes the projected power production costs and PCE rates based on incorporating an implied fuel efficiency to determine the actual kWh sold. Table 3 includes the projected power production costs and PCE rates based on an estimated kWh sold. The reasons these two scenarios were selected are: 1) Effective October 1990, PCE regulations mandate that utilities participating in the PCE program must meet certain fuel and line-loss efficiency standards. Currently, according to reported data, Eagle Village does not meet these standards. Therefore, the efficiency standards will be used to calculate Eagle Village’s PCE rate. This will reduce Eagle Village’s PCE rate and annual PCE subsidy. 2) Information provided by Eagle Power indicates that the laundromat in Eagle Village is not metered. Unmetered loads artificially reduce the apparent fuel efficiency, increase the PCE rate, and increase the apparent cost of producing power. If Eagle Village purchases its power from Eagle Power, they will incur the cost of electricity that is currently provided for "free" to loads that are unmetered. Table 1 includes information from the PCE program from FY89 for Eagle Village and Eagle Power. Included is the reported kWh sold and the fuel consumed in FY89. Eligible fuel costs are calculated based on the fuel consumed and the fuel price from the most recent APUC PCE rate filings. The non-fuel costs are also from the most recent APUC rate filings. This information is used to determine the current cost/kWh of electricity and PCE rates. Table 1 FY89 PCE Data Eagle Village Eagle Power Co. kWh sold 44,346 kWh kWh sold 455,776 kWh Fuel Consumed 9,350 gal Fuel Consumed 41,085 gal Fuel Efficiency 4.7 kWh sold/gal Fuel Efficiency 11.1 kWh sold/gal Current Fuel Price $1.07/gal Current Fuel Price $.917/gal Fuel Cost $10,005 Fuel Cost $37,687 Non-Fuel Cost $14,732 Non-Fuel Cost $103,196 Fuel cost/kWh $.2256/kWh Fuel cost/kWh $.0827/kWh Non-fuel cost/kWh $.3322/kWh Non-fuel cost/kWh $.2264/kWh Total cost/kWh $.5578/kWh Total cost/kWh $.3091/kWh PCE Rate $.4180/kWh PCE Rate $.2213/kWh Eligible Kwh 40,213kWh Eligible Kwh 291,287kWh PCE Subsidy $16,809 PCE Subsidy $64,452 This scenario assumes that Eagle Village’s poor fuel efficiency is due to unmetered loads. Actual kWh "sold" are calculated from the fuel consumed in FY89 and an implied fuel efficiency of 7.6 kWh/gallon. The results are tabulated in Table 2. According to FY89 PCE data (refer to Table 1), Eagle Village consumed 9,350 gallons of fuel to sell 44,346 kWh of electricity. This equates to 4.7 kWh sold/gallon. Effective October 1990, Eagle Village must meet the minimum fuel efficiency standard of 6 kWh sold/gallon. If they don’t meet this requirement, the APUC will impute this standard in calculating their PCE rate. This will reduce Eagle Village’s eligible costs and therefore their PCE rate. As the PCE subsidy is reduced, Eagle Village’s out of pocket cost of electricity will increase. According to information from Eagle Power, the laundromat at Eagle Village is unmetered. Since their total kWh generated in FY89 is not available, it is impossible to determine the number of kWh generated but not sold. Therefore, it is possible that Eagle Village’s poor fuel efficiency is entirely the result of unmetered loads (less an assumed line loss of 10%). If this is the case, the actual kWh "sold" (or consumed) could be substantially higher. Using an implied fuel efficiency of 7.6 kWh sold/gallon (based on a ten year weighted average of the efficiency standards), and the fuel consumed in FY89 (9,350 gallons), Eagle Village had the potential of selling 71,060 kWh in FY89. Table 2 Implied Scenario Purchase Power rate = $.38/kWh Eagle Village (Self Generation) Eagle Village (with Intertie) Eagle Power Co. (with Intertie) kWh sold 71,060kWh ~=kWhsold 71,060kWh = kWhsold 534,732kWh Fuel Consumed 9,350 gal Purchased Power 78,956 kWh Fuel Consumed 48,205 gal Fuel Efficiency 7.6 kWh/gal Fuel Efficiency N/A Fuel Efficiency 11.1kWh/gal Current Fuel Price $1.07/gal Current Fuel Price N/A Current Fuel Price $.917/gal Fuel Cost $10,005 Power Cost $30,003 Fuel Cost $44,204 Non-Fuel Cost $14,732 Non-Fuel Cost $9,157 Non-Fuel Cost $108,511 Fuel cost/kWh $.1408/kWh Power cost/kWh $.4222/kWh Fuel cost/kWh $.0827/kWh Non-fuel cost/kWh $.2073/kWh Non-fuel cost/kWh $.1289/kWh Non-fuel cost/kWh $.2029/kWh Total cost/kWh $.3481/kWh Total cost/kWh $.5511/kWh Total cost/kWh $.2856/kWh PCE Rate $.2500/kWh PCE Rate $.4180/kWh PCE Rate $.1906/kWh Eligible Kwh 66,927 kWh Eligible Kwh 66,927 kWh Eligible Kwh 300,287kWh PCE Subsidy $16,729 PCE Subsidy $27,784 PCE Subsidy $57,229 Self Generation: In Table 2, it is assumed that all unmetered consumption is eligible kWh. Thus, if Eagle Village metered all loads, the eligible kWh would increase 26,714 kWh, from 40,213 kWh to 66,927 kWh. Both the fuel and non-fuel costs would remain the same, but since the kWh sold increased from 44,346 kWh to 71,060 kWh, their "actual" cost/kWh of producing reduced from $.4180 to $.2500/kWh sold. Although the eligible kWh would increase 60%, the reduced PCE rate would offset any increase in PCE payments. In fact, the projected annual PCE subsidy to Eagle Village would be reduced $80, from $16,809 to $16,729. Intertie: Assuming a 10% line loss, Eagle Village would have to purchase 78,956 kWh from Eagle Power. Eagle Power has proposed a purchased power rate of $.38/kWh. At this rate, Eagle Village would incur a cost of $30,003. This is three times greater than their cost of fuel to produce the electricity. Assuming that non-fuel costs are reduced from $14,732 to $9,157 (as a result of reduced O&M and repair costs), the non-fuel cost would be $.1289/kWh sold. Eagle Village’s total cost per kWh sold would be $.5511/kWh ($.4222/kWh plus $.1289/kWh.) Their PCE rate would increase to the cap of $.4180/kWh and the projected PCE subsidy would be $27,784 (this is a $10,975 increase compared to their current projected subsidy of $16,809.) Eagle Village’s out of pocket costs would increase from the current $7,863 to $11,376 (out of pocket costs are defined as the annual cost of electricity minus the annual PCE subsidy.) In order for their out of pocket costs to remain the same, the purchased power rate would have to be approximately $.155/kWh. Eagle Power’s projected PCE rate is $.2213/kWh (from Table 1.) However, their PCE rate would decrease to $.1906/kWh if Eagle Village purchases 78,956 kWh via the intertie. The reduced PCE rate for Eagle Power would result in a savings to the PCE program of $7,223. Net Effect to the PCE Program: At the proposed purchased power rate of $.38/kWh, the PCE program would incur a net increase of $3,752/year. This is equal to the increased annual PCE subsidy to Eagle Village of $10,975 minus the reduced subsidy to Eagle Power of $7,223. At the purchased power rate of $.155/kWh (required for Eagle Village’s out of pocket costs to remain constant), the PCE program will save approximately $10,300/year. Estimated kWh Scenario This scenario assumes that Eagle Village’s poor fuel efficiency is due to a combination of unmetered loads, unaccounted for fuel loss, and mechanical inefficiencies. FY89 kWh generated is estimated from the kWh generated from December 23, 1989 (when a totalization meter was installed) to March 23, 1990, multiplied by the ratio of total kWh sold in FY89, divided by the kWh sold during the same period the previous year (kWh generated 12/23/89 to 3/23/90 divided by kWh sold 1/89 through 3/89 times total kWh sold in FY89.) Actual Kwh "sold" is estimated by assuming a line loss of 10% (kWh generated times .90). Self Generation: In Table 3, the actual kWh that would have been sold had all loads been metered is estimated at 49,671 kWh. Both the fuel and non-fuel costs would remain the same, but since the kWh sold increased from 44,346 kWh to 49,761 kWh, their "actual" cost/kWh of producing electricity would decrease from $.5578/kWh to $.4374/kWh. The calculated fuel efficiency is 5.3 kWh sold/gallon (49,761 kWh/9350 gallons). This fuel efficiency is less than the required standard. Therefore, the implied efficiency of 7.6 kWh/gal is used in This results in an increase from 40,213 kWh to 45,538 kWh. ‘he PCE rate is reduced from $.418 to $.3348/kWh and the annual PCE subsidy is reduced from $16,809 to $15,244. Table 3 Estimated Scenario Purchase Power rate = $.38/kWh Eagle Village (Self Generation) Eagle Village (with Intertie) Eagle Power Co. (with Intertie) kWh sold 49,671kWh kWhsold 49,671kWh = kWhsold 510,966kWh Fuel Consumed 6,536 gal Purchased Power 55,190 kWh Fuel Consumed 46,033 gal Fuel Efficiency 7.6 kWh/gal _— Fuel Efficiency N/A Fuel Efficiency 11.1kWh/gal Current Fuel Price $1.07/gal Current Fuel Price N/A Current Fuel Price $.917/gal Fuel Cost $6,993 Power Cost $20,972 Fuel Cost $42,212 Non-Fuel Cost $14,732 Non-Fuel Cost $9,157 Non-Fuel Cost $108,511 Fuel cost/kWh $.1408/kWh Power cost/kWh $.4222/kWh Fuel cost/kWh $.0827/kWh Non-fuel cost/kWh $.2966/kWh Non-fuel cost/kWh $.1659/kWh Non-fuel cost/kWh $.2124/kWh Total cost/kWh $.4374/kWh Total cost/kWh $.5881/kWh Total cost/kWh $.2951/kWh PCE Rate $.3348kWh PCE Rate $.4180/kWh PCE Rate $.1995/kWh Eligible Kwh 44,538 kWh Eligible Kwh 45,538 kWh Eligible Kwh 300,287kWh PCE Subsidy $15,244 PCE Subsidy $19,035 PCE Subsidy $59,922 Intertie: Assuming a 10% line loss, Eagle Village would have to purchase 55,190 kWh from Eagle Power. At $.38/kWh, they would incur a cost of $20,972. This is twice the cost of fuel to produce the electricity. Again assuming that non-fuel costs are reduced only $5,575, the non-fuel cost would be $.1659/kWh sold. Eagle Village’s total cost per kWh sold would be $.5881/kWh ($.4222/kWh plus $.1659/kWh.) Their PCE rate would increase to the cap of $.4180/kWh and the projected PCE subsidy would be $19,035 (this is $2,226 more than their current projected subsidy of $16,809.) Eagle Village’s out of pocket costs would increase from the current $7,863 to $11,094. In order for their out of pocket costs to remain the same, the purchased power rate would have to be approximately $.32/kWh. Eagle Power’s PCE rate would decrease from $.2213 to $.1995/kWh sold if Eagle Village purchases 55,190 kWh via the intertie. The reduced PCE rate for Eagle Power would result in a savings to the PCE program of $4,530. Net Effect to the PCE Program: At the proposed purchased power rate of $.38/kWh, the PCE program will save an estimated $2,304/year. This is equal to the increased annual PCE subsidy to Eagle Village of $2,226 minus the reduced subsidy to Eagle Power of $4,530. At a purchased power rate of $.32/kWh (required for Eagle Village’s out of pocket costs to remain constant), the savings to the PCE program will also be $2,304/year. This is because the PCE cap is reached at a purchased power cost of $.3065/kWh. CONCLUSIONS According to available data, the concept of connecting Eagle Village and Eagle Power Co. via an intertie is attractive. However, the available data may be misleading due to unmetered loads at Eagle Village. Unmetered loads affect the feasibility of the intertie by providing false information for comparison. In the case of self-generation, unmetered loads: 1) increase the "apparent" cost of providing power 2) increase the PCE rate 3) reduce the "apparent" fuel efficiency As a result of the unmetered loads, it is impossible to determine the real cost/kWh of producing power at Eagle Village . If Eagle Village does purchase their power via the intertie, the possibility exists that the cost of the purchased electricity could exceed their avoided costs by 50%. This could increase the cost of power to their customers substantially. Eagle Village installed a totalization (kWh generated) meter in late December of last year. Over the next few months, information will be collected that will provide a more accurate determination of the number of kWh consumed by unmetered loads. In addition, data loggers could be installed at the laundromat to provide additional information. With a better estimate of actual kWh consumed, a more accurate analysis can be performed to determine the feasibility of the intertie. ISS cc: Gary Smith Dale Rusnell Lec ea fee Steyh 4 c7R/o | 30 FISCAL FISCAL PERIOD YE. AR * 1.2.0 EAGLE CAONAUERWN * Subsubtotal * ** Subtotal ** © we éeis EAGLE VILLAGE CONOVUFWN= * Subsubtotel * ** Subtotal ** SSSSSSSSSSSS SSSSSSSSSSSS COMMUNITY POPULATION 185 185 185 185 185 185 185 185 185 174 174 174 DATE POPUL CERTIFIED 12/01/86 12/01/86 12/01/86 12/01/86 12/01/86 12/01/86 12/01/86 12/01/86 12/01/86 01/01/88 01/01/88 01/01/88 12/23/86 12/23/86 12/23/86 12/23/86 12/23/86 12/23/86 12/23/86 12/23/86 02/23/86 02/23/86 02/23/86 02/23/86 FY89 # OF RESID. CusT 81 85 81 81 B2az3g8 18 18 18 18 18 18 18 18 18 18 18 18 ALASKA POWER AUTHORITY POWER COST EQUALIZATION MONTHLY PCE STATISTICS REPORT SUT ULS TY SURear¥ # OF # OF — CURRENT COMMER. COMMUN. FUEL FUEL TOTAL CUST FACIL. PRICE CONSUMED FUEL COST 38158 31038.84 3 4 0.9930 3040 301 & 38 4 0.9930 3423 330 34 6 1.1510 3100 $40.00 37 4 1.1500 3428 3472.56 36 4 1.1500 3669 3716.70 35 4 1.1510 3925 3976.02 36 4 1.1510 3898 3948.67 37 4 1.1510 3162 3203.11 37 4 1.1500 3830 3933.41 38 4 1.1510 3350 3440.45 38 4 0.9270 3330 3086.91 36 4 0.9650 2930 2716.11 41085, “31493.96 41085 BUDE 447% 0 a ) 690 690.00 0 3 0.9300 390 — 390.00 0 3 0.0000 910 910.00 0 3 0.0000 960 960.00 0 3 1.0000 590 590.00 0 3 0.0000 990 990.00 0 3 0.0000 740 740.00 0 3 0.0000 810 810.00 0 3 0.0000 820— 820.00 0 3 1.0000 710 710.00 0 3 1.0700 780 — 834.60 0 3 1.0700 960 960.00 9350 9404.60 9350 9404.60 R3B FAPCER13 FAPCEFO4 TOTAL MONTHLY OPERATING KWH EXPENSE GENERAT 158844 .16 420641 9050.00 37440 9300.00 41760 8950.00 38880 9650.00 44350 9150.00 47808 0.00 50400 9885.00 50976 13300.00 10032 10230.00 48672 9350.00 42048 9050.00 41472 8800.00 35424 106715.00 489262 106715.00 489262 Silo 1200.00 2061 1200.00 2232 1200.00 4651 1200.00 5144 1200.00 2989 1200.00 5565 1200.00 4340 1200.00 5053 1200.00 3603 1200.00 3208 1200.00 2921 619.00 2592 13819.00 44359 13819.00 44359 (a) (b) MONTHLY TOTAL KWH TOTAL KWH KWH SOLD ELIG. RESID. ELIG. COMMR. 403329 128459 58175 31500 12302 10055 36486 12588 10858 33859 11196 9756 38672 11111 12235 42195 12225 13386 44623 13737 13259 45216 14466 13361 36850 11222 11198 42931 12187 12394 37210 10867 12207 35932 13168 10511 30502 11229 10919 455776 146298 140139 455776 ~ Yyoyyt46298 140139 a(l.a faou [aR 2061 f 1786 0 2232 6 1162 0 4651 > 0 0 0 0 0 0 0 0 0 0 0 (c) TOTAL KWH ELIG. FACIL. 5191 207 226 270 377 428 517 637 674 486 266 293 4850 EEE 28.06 852 540 228 (a+ b+c) TOTAL KWH ELIGIBLE 191825 22564 23672 21222 23723 26039 27465 28344 23057 25255 23560 23945 22441 291287 291287 1786 1162 3463 2989 4264 5053 3603 3173 2921 2579 40213 40213 2/zo/e0 Lage Vilage : ‘i8 " bvw Crd i2/e3/¢2 - s/e3/0 = (6/74 kon BesH Sezd 1 (2¢ - “/e4 = La996 : EO 16/7Y¥ = 129796 - 1, 244S5Y kvxwt Sord FY E93 = .f137C eee. ted FY 93S YV39e # h24ysY = [S35 170 ko, Asstmng 10% lessees: Tiled niles [enw Seed FYS = SS, /FO K.70= 49,67) KO ~~, ALASKA ENERGY AUTHORITY To: Dave Denig-Chakroff Date: 4/09/90 Director of Rural Programs yew Thru: Dick Emerman we” Senior Economist Vi From: Steve Stassel Engineering Anal Subject: Eagle-Eagle Village Intertie PCE Rate Analysis INTRODUCTION The proposed Eagle Power-Eagle Village intertie is a single phase, 7.2 kV transmission line approximately 1.4 miles long connecting the existing Eagle Power distribution system with the Eagle Village powerhouse. The estimated cost of construction is $40,000. There is a proposal to relocate the Eagle Village powerhouse and upgrade their distribution system. However, this analysis encompasses only the merits relative to the intertie. EXECUTIVE SUMMARY The concept of connecting Eagle Village and Eagle Power with an intertie is an attractive one. Comparing FY89 PCE data, Eagle Power’s power production cost is almost 45% less than Eagle Village’s, due to lower fuel prices and better fuel efficiency. However, the reliability of the PCE data for Eagle Village is questionable. The possibility exists that Eagle Village’s poor efficiency is due to unmetered loads. In order to provide an idea of the impact unmetered loads could have on the feasibility of the intertie, two cases were analyzed: Implied kWh and Estimated kWh Scenario’s. The assumptions used in the Implied kWh Scenario are: 1) Eagle Village’s fuel efficiency will be 7.6 kWh sold/gallon (based on a 10 year average of the PCE efficiency standards effective October 1990.) 2) FY89 kWh consumed (sold) are 71,060 kWh (based on FY89 gallons of fuel and 7.6 kWh/gallon.) 3) All additional kWh consumed (sold) (i.e. above 44,346 reported for FY89) are PCE eligible kWh The assumptions used in the Estimated kWh Scenario are: 1) Eagle Village’s fuel efficiency will be 5.3 kWh sold/gallon (calculated from actual kWh generated in the first quarter of 1990 and FY89 reported PCE data.) and 5.3 kWh/gallon.) 3) All additional kWh consumed (sold) (i.e. above 44,346 reported for FY89) are PCE eligible kWh. These two cases were selected to provide best and worst case scenario’s with which to compare the available PCE data. An analysis of the economics, and the power production and PCE costs was performed for both cases. The results of the economic analysis are: -For all cases, the intertie is economic over a 30 year useful life. This assumes that the rates charged by Eagle Power would be low enough to capture all of Eagle Village’s power requirements. The results of the PCE analysis are: -At Eagle Power’s proposed rate of $.38/kWh, Eagle Village’s real cost of electricity could increase between 34% and 58%. -To ensure that Eagle Village’s out of pocket costs do not increase as a result of the intertie, the purchased power rate could be no greater than $.155/kWh for the first case and $.32 for the second case. -For the first case: at a purchased power rate of $.38/kWh, the PCE program would incur a net increase of $3,752/year. At $.155/kWh, the PCE program would incur a net savings of $10,300/year. -For the second case: at $.38/kWh and $.32/kWh, the PCE program would incur a net savings of $2,304/year. As a result of this analysis the following recommendations are made: -Additional load data is required to determine more accurately the existing efficiency of Eagle Village power production, and the impact of the intertie on their power costs. This data will be available next year as a result of the totalization meter installed in December 1989. -The intertie should not be built unless Eagle Village’s out of pocket costs either remain constant or are reduced by: a) negotiating a purchased power rate substantially less than $.38/kWh b) eliminating both Eagle Village’s fuel and non-fuel costs Without such prior arrangements, the State risks building an intertie that may rarely be used despite its attractive underlying economics. Table 1 includes data from both the Alaska Public Utilities Commission (APUC) and the Energy Authority’s PCE program. This data is used as the basis of comparison with the two projected scenarios included in tables 2 & 3. Table 2 includes the projected power production costs and PCE rates based on incorporating an implied fuel efficiency to determine the actual kWh sold. Table 3 includes the projected power production costs and PCE rates based on an estimated kWh sold. The reasons these two scenarios were selected are: 1) Effective October 1990, PCE regulations mandate that utilities participating in the PCE program must meet certain fuel and line-loss efficiency standards. Currently, according to reported data, Eagle Village does not meet these standards. Therefore, the efficiency standards will be used to calculate Eagle Village’s PCE rate. This will reduce Eagle Village’s PCE rate and annual PCE subsidy. 2) Information provided by Eagle Power indicates that the laundromat in Eagle Village is not metered. Unmetered loads artificially reduce the apparent fuel efficiency, increase the PCE rate, and increase the apparent cost of producing power. If Eagle Village purchases its power from Eagle Power, they will incur the cost of electricity that is currently provided for "free" to loads that are unmetered. Table 1 includes information from the PCE program from FY89 for Eagle Village and Eagle Power. Included is the reported kWh sold and the fuel consumed in FY89. Eligible fuel costs are calculated based on the fuel consumed and the fuel price from the most recent APUC PCE rate filings. The non-fuel costs are also from the most recent APUC rate filings. This information is used to determine the current cost/kWh of electricity and PCE rates. Table 1 FY89 PCE Data Eagle Village Eagle Power Co. kWh sold 44,346 kWh kWh sold 455,776 kWh Fuel Consumed 9,350 gal Fuel Consumed 41,085 gal Fuel Efficiency 4.7 kWh sold/gal Fuel Efficiency 11.1 kWh sold/gal Current Fuel Price $1.07/gal Current Fuel Price $.917/gal Fuel Cost $10,005 Fuel Cost $37,687 Non-Fuel Cost $14,732 Non-Fuel Cost $103,196 Fuel cost/kWh $.2256/kWh Fuel cost/kWh $.0827/kWh Non-fuel cost/kWh $.3322/kWh Non-fuel cost/kWh $.2264/kWh Total cost/kWh $.5578/kWh Total cost/kWh $.3091/kWh PCE Rate $.4180/kWh PCE Rate $.2213/kWh Eligible Kwh 40,213kWh Eligible Kwh 291,287kWh PCE Subsidy $16,809 PCE Subsidy $64,452 This scenario assumes that Eagle Village’s poor fuel efficiency is due to unmetered loads. Actual kWh "sold" are calculated from the fuel consumed in FY89 and an implied fuel efficiency of 7.6 kWh/gallon. The results are tabulated in Table 2. According to FY89 PCE data (refer to Table 1), Eagle Village consumed 9,350 gallons of fuel to sell 44,346 kWh of electricity. This equates to 4.7 kWh sold/gallon. Effective October 1990, Eagle Village must meet the minimum fuel efficiency standard of 6 kWh sold/gallon. If they don’t meet this requirement, the APUC will impute this standard in calculating their PCE rate. This will reduce Eagle Village’s eligible costs and therefore their PCE rate. As the PCE subsidy is reduced, Eagle Village’s out of pocket cost of electricity will increase. According to information from Eagle Power, the laundromat at Eagle Village is unmetered. Since their total kWh generated in FY89 is not available, it is impossible to determine the number of kWh generated but not sold. Therefore, it is possible that Eagle Village’s poor fuel efficiency is entirely the result of unmetered loads (less an assumed line loss of 10%). If this is the case, the actual kWh "sold" (or consumed) could be substantially higher. Using an implied fuel efficiency of 7.6 kWh sold/gallon (based on a ten year weighted average of the efficiency standards), and the fuel consumed in FY89 (9,350 gallons), Eagle Village had the potential of selling 71,060 kWh in FY89. Table 2 Implied Scenario Purchase Power rate = $.38/kWh Eagle Village (Self Generation) Eagle Village (with Intertie) Eagle Power Co. (with Intertie) kWh sold 71,060kWh = kWhsold 71,060kWh ~~ kWhsold 534,732kWh Fuel Consumed 9,350 gal Purchased Power 78,956 kWh Fuel Consumed 48,205 gal Fuel Efficiency 7.6 kWh/gal _—— Fuel Efficiency N/A Fuel Efficiency 11.1kWh/gal Current Fuel Price $1.07/gal Current Fuel Price N/A Current Fuel Price $.917/gal Fuel Cost $10,005 Power Cost $30,003 Fuel Cost $44,204 Non-Fuel Cost $14,732 Non-Fuel Cost $9,157 Non-Fuel Cost $108,511 Fuel cost/kWh $.1408/kWh Power cost/kWh $.4222/kWh Fuel cost/kWh $.0827/kWh Non-fuel cost/kWh $.2073/kWh Non-fuel cost/kWh $.1289/kWh Non-fuel cost/kWh $.2029/kWh Total cost/kWh $.3481/kWh Total cost/kWh $.5511/kWh Total cost/kWh $.2856/kWh PCE Rate $.2500/kWh PCE Rate $.4180/kWh PCE Rate $.1906/kWh Eligible Kwh 66,927 kWh Eligible Kwh 66,927 kWh Eligible Kwh 300,287kWh PCE Subsidy $16,729 PCE Subsidy $27,784 PCE Subsidy $57,229 Self Generation: In Table 2, it is assumed that all unmetered consumption is eligible kWh. Thus, if Eagle Village metered all loads, the eligible kWh would increase 26,714 kWh, from 40,213 kWh to 66,927 kWh. Both the fuel and non-fuel costs would remain the same, but since the kWh sold increased from 44,346 kWh to 71,060 kWh, their "actual" cost/kWh of producing AUER ULE UU BU ee UU OU UU He CM BIUIU ROE YUU LL Uae UU /Uy the reduced PCE rate would offset any increase in PCE payments. In fact, the projected annual PCE subsidy to Eagle Village would be reduced $80, from $16,809 to $16,729. Intertie: Assuming a 10% line loss, Eagle Village would have to purchase 78,956 kWh from Eagle Power. Eagle Power has proposed a purchased power rate of $.38/kWh. At this rate, Eagle Village would incur a cost of $30,003. This is three times greater than their cost of fuel to produce the electricity. Assuming that non-fuel costs are reduced from $14,732 to $9,157 (as a result of reduced O&M and repair costs), the non-fuel cost would be $.1289/kWh sold. Eagle Village’s total cost per kWh sold would be $.5511/kWh ($.4222/kWh plus $.1289/kWh.) Their PCE rate would increase to the cap of $.4180/kWh and the projected PCE subsidy would be $27,784 (this is a $10,975 increase compared to their current projected subsidy of $16,809.) Eagle Village’s out of pocket costs would increase from the current $7,863 to $11,376 (out of pocket costs are defined as the annual cost of electricity minus the annual PCE subsidy.) In order for their out of pocket costs to remain the same, the purchased power rate would have to be approximately $.155/kWh. Eagle Power’s projected PCE rate is $.2213/kWh (from Table 1.) However, their PCE rate would decrease to $.1906/kWh if Eagle Village purchases 78,956 kWh via the intertie. The reduced PCE rate for Eagle Power would result in a savings to the PCE program of $7,223. Net Effect to the PCE Program: At the proposed purchased power rate of $.38/kWh, the PCE program would incur a net increase of $3,752/year. This is equal to the increased annual PCE subsidy to Eagle Village of $10,975 minus the reduced subsidy to Eagle Power of $7,223. At the purchased power rate of $.155/kWh (required for Eagle Village’s out of pocket costs to remain constant), the PCE program will save approximately $10,300/year. Estimated kWh Scenario This scenario assumes that Eagle Village’s poor fuel efficiency is due to a combination of unmetered loads, unaccounted for fuel loss, and mechanical inefficiencies. FY89 kWh generated is estimated from the kWh generated from December 23, 1989 (when a totalization meter was installed) to March 23, 1990, multiplied by the ratio of total kWh sold in FY89, divided by the kWh sold during the same period the previous year (kWh generated 12/23/89 to 3/23/90 divided by kWh sold 1/89 through 3/89 times total kWh sold in FY89.) Actual Kwh "sold" is estimated by assuming a line loss of 10% (kWh generated times .90). Self Generation: In Table 3, the actual kWh that would have been sold had all loads been metered is estimated at 49,671 kWh. Both the fuel and non-fuel costs would remain the same, but since the kWh sold increased from 44,346 kWh to 49,761 kWh, their "actual" cost/kWh of producing electricity would decrease from $.5578/kWh to $.4374/kWh. The calculated fuel efficiency is 5.3 kWh sold/gallon (49,761 kWh/9350 gallons). This fuel efficiency is less than the required standard. Therefore, the implied efficiency of 7.6 kWh/gal is used in This results in an increase from 40,213 kWh to 45,538 kWh. The PCE rate is reduced from $.418 to $.3348/kWh and the annual PCE subsidy is reduced from $16,809 to $15,244. Table 3 Estimated Scenario Purchase Power rate = $.38/kWh Eagle Village (Self Generation) Eagle Village (with Intertie) Eagle Power Co. (with Intertie) kWh sold 49,671 kWh kWh sold 49,671 kWh kWh sold 510,966kWh Fuel Consumed 6,536 gal Purchased Power 55,190kWh — Fuel Consumed 46,033 gal Fuel Efficiency 7.6 kWh/gal_ _— Fuel Efficiency N/A Fuel Efficiency 11.1kWh/gal Current Fuel Price $1.07/gal Current Fuel Price N/A Current Fuel Price $.917/gal Fuel Cost $6,993 Power Cost $20,972 Fuel Cost $42,212 Non-Fuel Cost $14,732 Non-Fuel Cost $9,157 Non-Fuel Cost $108,511 Fuel cost/kWh $.1408/kWh Power cost/kWh $.4222/kWh Fuel cost/kWh $.0827/kWh Non-fuel cost/kWh $.2966/kWh Non-fuel cost/kWh $.1659/kWh Non-fuel cost/kWh $.2124/kWh Total cost/kWh $.4374/kWh Total cost/kWh $.5881/kWh Total cost/kWh $.2951/kWh PCE Rate $.3348kWh PCE Rate $.4180/kWh PCE Rate $.1995/kWh Eligible Kwh 44,538 kWh Eligible Kwh 45,538 kWh Eligible Kwh 300,287kWh PCE Subsidy $15,244 PCE Subsidy $19,035 PCE Subsidy $59,922 Intertie: Assuming a 10% line loss, Eagle Village would have to purchase 55,190 kWh from Eagle Power. At $.38/kWh, they would incur a cost of $20,972. This is twice the cost of fuel to produce the electricity. Again assuming that non-fuel costs are reduced only $5,575, the non-fuel cost would be $.1659/kWh sold. Eagle Village’s total cost per kWh sold would be $.5881/kWh ($.4222/kWh plus $.1659/kWh.) Their PCE rate would increase to the cap of $.4180/kWh and the projected PCE subsidy would be $19,035 (this is $2,226 more than their current projected subsidy of $16,809.) Eagle Village’s out of pocket costs would increase from the current $7,863 to $11,094. In order for their out of pocket costs to remain the same, the purchased power rate would have to be approximately $.32/kWh. Eagle Power’s PCE rate would decrease from $.2213 to $.1995/kWh sold if Eagle Village purchases 55,190 kWh via the intertie. The reduced PCE rate for Eagle Power would result in a savings to the PCE program of $4,530. Net Effect to the PCE Program: At the proposed purchased power rate of $.38/kWh, the PCE program will save an estimated $2,304/year. This is equal to the increased annual PCE subsidy to Eagle Village of $2,226 minus the reduced subsidy to Eagle Power of $4,530. At a purchased power rate of $.32/kWh (required for Eagle Village’s out of pocket costs to remain constant), the savings to the PCE program will also be $2,304/year. This is because the PCE cap is reached at a purchased power cost of $.3065/kWh. CUNLCLUSIUNS According to available data, the concept of connecting Eagle Village and Eagle Power Co. via an intertie is attractive. However, the available data may be misleading due to unmetered loads at Eagle Village. Unmetered loads affect the feasibility of the intertie by providing false information for comparison. In the case of self-generation, unmetered loads: 1) increase the "apparent" cost of providing power 2) increase the PCE rate 3) reduce the "apparent" fuel efficiency As a result of the unmetered loads, it is impossible to determine the real cost/kWh of producing power at Eagle Village . If Eagle Village does purchase their power via the intertie, the possibility exists that the cost of the purchased electricity could exceed their avoided costs by 50%. This could increase the cost of power to their customers substantially. Eagle Village installed a totalization (kWh generated) meter in late December of last year. Over the next few months, information will be collected that will provide a more accurate determination of the number of kWh consumed by unmetered loads. In addition, data loggers could be installed at the laundromat to provide additional information. With a better estimate of actual kWh consumed, a more accurate analysis can be performed to determine the feasibility of the intertie. /SS cc: Gary Smith Dale Rusnell t Paopek Cost : Ney a Zoft ate 4. CS ae ey | IL negi's 2d ae i} fo btw g x erent) eee Ht f box A SAY % — My ptinrmee yp 2 aS i i Cows, — Bor Frith like addhe, poo, Exge (2 cr ae Slop har Khrme,co Bins e@ ty g Eg Pom whips gen 'r “/90 Bo he (( Pati, felaes bait Alaska Energy Authority A Public Corporation March 9, 1990 Mr. Howard David, Chief Eagle Village IRA Council General Delivery Eagle Village, Alaska 99738 Subject: Power Cost Equalization Payments Dear Mr. David: Following your March 1, 1990 telephone conversation with Chery] Young, Power Cost Equalization Program Officer, this is to confirm that payments covering the period of October 1989 - December 1989, will be issued excluding community facilities, to ensure that the utility has sufficient cash flow to operate and maintain the power plant. However, all future payments will remain in suspense until we receive written clarification from your office on the status of very significant amounts owed to the utility by its customers. As stated in our December 19, 1989 letter (copy attached), we continue to support the Village Council's efforts to collect past due balances from your customers. However, despite the utilities efforts the customer accounts have yet to show a substantial decline, and the Village Council has not yet demonstrated to the Energy Authority that the utility is not donating power to the village residents. The Energy Authority understands that some customers may not be able to pay the entire amount due at one time because your customer billings have accumulated over a substantial period of time. We do however expect that payments are substantial enough to reduce the total balance owed. As stated earlier, future PCE payments to the utility will be kept in suspense until we receive the following clarification from your office: 1. Evidence that prudent utility management practices are in place to collect the monies due to the utility from its customers on a regular basis; = PO. Box AM Juneau, Alaska 99811 (907) 465-3575 x BO, Box 190869 704 East Tudor Road ~=Anchorage, Alaska 99519-0869 (907) 561-7877 IT 1 ed 2. Copy of Eagle Village Energy System's policy regarding: a. The handling of the utility's bad debt; b. The handling of customer accounts that are not paid on time and "disconnect" policy, if any. Based upon the information provided we will determine the eligibility of Eagle Village Energy Systems or part of its customers, to continue receiving PCE entitlements. If you have questions concerning this request please call me or Chery] Young at 561-7877. Sincerely, Youve Ua: Glokia Manni, Director Accounting & Administration CY:GM:it Attachment as stated cc: Robert E. LeResche, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority G. Susan White, Alaska Energy Authority Cheryl Young, Alaska Energy Authority MN APPENDIX 1 EAGLE POWER COMPANY POWER COST EQUALIZATION CALCULATION UPDATED FOR FUEL PURCHASE 9/24/89 Prior Commission Utility Staff Determination Request Recommendation 12/31/88 12/31/88 12/31/88 Total KWH Generated Total KWH Sold 448,932 448,932 448,932 Total Non-Fuel Costs (Appendix 2) $103,196 $103,196 $103,196 Non-Fuel Cost/KWH (C / B) 22.99 22.99 22.99 Total Fuel Costs $39,319 $37,363 $37,363 Fuel Costs/KWH 8.76 8.32 8.32 Eligible Costs/KWH (D + F) Si 75 Bars. Siew Eligible Cost/KWH (G) Less 8.5 cents/KWH 2525 22/591 22.81 Lesser of (G) or 44 cents/KWH 23725 22.81 22.81 Average Class Rates School (38-8.5) 29.50 29.50 All Others (40-8.5) 31.50 31-50 Class Power Cost Equalization Per KWH Payable by APA Lesser of: (2) eC) ck 9.5477 O(a) 22.08 21.67 2167 EAGLE POWER COMPANY SCHEDULE OF ELIGIBLE POWER COSTS, SALES AND EFFICIENCY UPDATED FOR FUEL PURCHASE 9/24/89 Prior Commission Per Determination Utility Adjustments Non-Fuel Costs: 12/31/88 12/31/88 Personnel Costs $50,078 $50,078 Power Plant Parts & Materials 2,193 2,193 Repairs and Maintenance $5,510 5,510 General and Administrative 10,302 10,302 Depreciation 25,524 25,524 Interest Expense 3,689 3,009 Other (Taxes) $5,900 $5,900 Total Non-Fuel Costs $103,196 $103,196 Fuel Costs: Gallons Consumed for Electric Generation 40,745 40,745 Most Recent Price 0.917 0.965 0.917 Date Purchased 09/24/89 Total Cost of Fuel (IxJ) $39,319 $37),363 KWH Sales 448,932 448,932 Fuel Cost Per KWH $0.0876 $0.0832 Efficiency (N/I) alles CO? Staff APPENDIX 2 Per Staff 12/31/88 $50,078 2,193 5,510 10,302 25,524 3,689 5,900 $103,196 40,745 0.917 $37,363 448,932 $0.0832 11.02 Date: Ocr_ G / 89 Utility Name: __$ Eagle Power Company Community: EAGLE Contact Name: RALPH EF. Weimer. Phone No. (Q07) 547-2206 Regional/Village Corp: School District: ALASKA GATEWAY S, Dist Utility Ownership: Private_>< _ Municipal___— Cooperative = Other A. Generation Generator #1 Generator #2 1 Manufacturer Car 1 Manufacturer Cart 2 Model 3304B 2 Model 33045 3Location _EAG LE 3 Location Eacvie 4 Nameplate Rating: 4 Nameplate Rating: 1020 __KW _<+f0 _ Volts loo. _KW _480 _ Volts 5 Installed Cost 5 Installed Cost 6 Date On-Line Oct 85 6 Date On-Line Oct 8S 7 Total Generation Hours. _| "7, 500 7 Total Generation Hours |], SOO. 8 Date Retired 8 Date Retired 9 Parallelling Switchgear CYesdr No 9 Parallelling Switchgear (Ye3or No 10 Metered esr No 10 Metered (esr No Generator #3 Generator #4 1 Manufacturer Cummins 1 Manufacturer 2 Model LetA=l0 2 Model 3locaton EAGLE 3 Location 4 Nameplate Rating: 4 Nameplate Rating: (7S KW _480 _ Volts Kw Volts 5 Installed Cost 5 Installed Cost 6 Date On-Line 6 Date On-Line 7 Total Generation Hours DZ 7 Total Generation Hours 8 Date Retired 8 Date Retired 9 Parallelling Switchgear Yes oro) 9 Parallelling Switchgear Yes or No 10 Metered Yes or No 10 Metered Yes or No B. Distribution ; System Type: Single Phase_XX_ 3-Phase_X_ Distribution Voltage (V): WZOOvV 2,400 Y 120/240v Distribution System: Underground ___——s—s«Overhead Combined X _ C. Existing Metering | # Master (Total Generation) Cesdor No « Fuel Source ; Yesvor No © Station Service (Power Plant Consumption) (Yes)or No 0. Waste Heat Recovery Installed? Yes_>¢ = No____ Operational? Yes_XX = No E. Bulk Fuel Storage Available: = =©_2R,OOO (gal) F. Are there any utility construction or replacement projects planned for the coming year? SES 2 GO kort pd 2) what's fA fy » be wed by AUC lefri 5) ud Mts wt prerae LV) wefacd bod patrd PER Arbinnd sare dy con hot fom Gritne to obtied 4 agen curtain 4 AFA hte ro Baal’. - Va cntromact metiise 4) whet 1's line less go pb Tie, vi Hoge Dis TH} he a U.K | ee voltage 5B 7-ZEV 5) pee Petra ff. EP eV o). Kae fr SP4tEV ? 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