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HomeMy WebLinkAboutTurning on the Lights, A Guide to Electrical Projects for Village Leaders in Rural Alaska 1987TURNING ON THE LIGHTS A GUIDE TO ELECTRICAL PROJE FOR VILLAGE LEADERS IN RURAL ALASKA - DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS OFFICE OF ENERGY PROGRAMS TURNING ON THE LIGHTS A GUIDE TO ELECTRICAL PROJECTS FOR VILLAGE LEADERS IN RURAL ALASKA STATE OF ALASKA STEVE COWPER, GOVERNOR i] DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS OFFICE OF ENERGY PROGRAMS ii This publication was developed and printed through the support of the U.S. Department of Energy, Energy Extension Service Grant No. DE-FG51-80CS69081. The opinions, findings and conclu- sions expressed in this publication are those of the author and are not necessarily those held by the State of Alaska or the U.S. Department of Energy. Frank D’Elia Program Manager and Principal Author State Energy Conservation Program Published January 1987 Acknowledgements We would like to express our appreciation to those persons and organizations who have devoted some of their time to review and draft materials which have led to this final product. Alaska Power Authority Terri Gibbs, Peter Hansen, Jerry Larson, Tanzeem Rizvi and Susan Rogers Alaska Public Utilities Commission Alaska Village Electric Cooperative Mark Teitzel Chugach Electric Association Dora Gropp, Robert Martin Department of Community and Regional Affairs Steve Baden, Mike Black, Midge Clouse, Gloria Carrizales, Pauline Valha, Wayne Longacre, Ike Waits and Butch White Dryden and LaRue Bob Dryden Thomas Humphrey PE Company Tom Humphrey Kinetic Energy Systems Clarissa Quinlan Tanana Chiefs Conference Jeff Weltzin In addition to these individuals, portions of this guide came from two other publications: Electrification Projects through the Grant Process for Small Alaskan Communities — A Training Manual, by the Consortium for Alaska Municipal Training, February 1985. The Planning, Installation and Maintenance of Low-Voltage Rural Electrification Systems and Subsystems, by Volunteers in Technical Assistance, Inc., April 1969. Editorial and graphic support for this publication was provided by C-graphics under contract to the Department of Community and Regional Affairs. iti iv Before you begin... Electrical generation is not something we think about every day. We use electric lights, electric TVs and electric refrigerators, but the wires and poles and generators that make these things work are often taken for granted. Asacommunity leader, you may have found a growing need among your people for more electricity. Perhaps the lack of available electric power has kept a local business from expanding and adding new jobs for village workers. Or, a group of homes located a mile down river may want to hook up to the community power system. Possibly there are times in your community when the demand for electricity is too great, and the whole system shuts down as a result. These are all good reasons to consider adding to or improving your community electrical system. State energy agencies and professional consultants and engineers can help you plan, design and construct your power project. But it is important that you and other community leaders understand the process leading up to the actual construction, as well as how to operate and administer the electrical system after the project is complete. This handbook will give you an introduction to electrification in rural Alaska, as well as a step-by- step guide to planning, constructing and running your electrical project. Although it is directed toward diesel electric generation, all local energy sources and alternatives to diesel generation should be considered when your community assesses its energy needs. What’s involved? Your electrification project can include installing a complete system of generators, powerhouse, wires, poles and meters, or simply replacing worn or incorrectly sized equipment. Whichever it is, you as a community leader, along with the residents of your village, will have to answer some basic questions before you can begin the project. These answers will help you drawa picture of your community’s energy use today and your needs for the future. And, they'll help you understand the choices you have for meeting those needs. What will it cost? Some of the choices before you will concern costs. Rural power is expensive, usually not less than 30 cents per kilowatt hour (kwh) without state subsidy programs. A typical village resident will use about 330 kwh per month, at a cost of $99 or more, unsubsidized. In your village, residents can choose to help out with the planning, building and operating of the system. The amount, quality and attitude of the help you provide can make the difference between a successful electrical system and one that is costly and plagued with problems. And involving the people from the start is often the key to getting their cooperation and help later on. Village electrification projects involve much work and money on everyone's part. But villages throughout Alaska have found they can, with technical assistance, plan, build and operate their own electrical projects. By working through the steps in this guide book, you can, too. Contents Acknc ywledgement S) Before you begin Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Planning your project Feasibility studies Hiring a project or construction consultant Options for financing your project Building your electrification project Running your electrical utility Community electrical conservation programs Appendices... More information... I: Il. III. IV. V. VI. VII. Directory of helping agencies Other publications to explore Sample Energy Needs Assessment form Model electrical utility ordinance Safety Maintaining and operating your electrical systems Recognizing trouble State of Alaska audit requirements, 2AAC 45.010 49 Chapter 1: Planning your project Before you can build a new system, buy equipment or put up new poles, you'll need to bring together information about the community's present use of electricity, needs for the future and projected costs. Doing this before you buy or build will help you avoid buying the wrong type of equipment, or adding too big or too smalla generator, or finding out afterwards that power will be too expensive for most people in the village to afford. Once you gather the information, you'll have a complete picture of the local electrical situation. And you'll be organized to talk to state agencies about getting technical help or funding. Another benefit of planning: By acting on the information you gather, you may be able to reduce the impact of rising energy costs. For example, if you can show how much power is being used and how much it costs, village residents may decide to start an energy conservation program to cut back on the amount of power used and thus cut residents’ electric bills. How do we plan? There are three basic parts to planning your electrical project: the energy needs assessment, the energy plan and a feasibility study. Of the three, the feasibility study is by far the most detailed. The first two are discussed in this chapter; the feasibility study is in Chapter 2. What is an energy needs assessment? When you gather information about your community’s energy situation, you are doing an energy needs assessment. You'll need to ask four basic questions: e What is our existing electrical capacity? ¢ How is power presently used? ¢ What will we need in terms of electricity in two years? In five years? In ten years? ¢ What local resources are available? Some communities conduct their own energy assessments; some ask state agencies or private consultants to do a needs assessment for them. Others use a combination of these two methods, doing most of the work themselves but asking for technical help on parts of it. The needs assessment can be a very simple study or it can be very complex. One of the easiest ways to gather the needed information is to ask residents, through an electrical needs survey, what they need. The electrical needs survey is discussed later in this chapter. PLANNING YOUR PROJECT UT] [ML A Miia LLL ZILLI 1 2 PLANNING YOUR PROJECT When you've gathered your information, you'll write up a final report to show what you've found. Among other things, this report will list all the existing sources of electricity and their conditions. For example, schools in many communities have their own electric generators. Sometimes these supply power for the village as well as the school. Perhaps in your community, however, the equipment is old and in need of repair or replacement. This type of information should be included in your needs assessment. Another type of information you'll put in the report concerns the number of residents qualified to work on the project. Are there residents who can help build it or help operate and maintain it after it’s built? Can your community afford to hire or train people to do these jobs? Or, will there be residents who will volunteer their time to get the system started? Gearing up: Who should help? Before you begin, there are several things to keep in mind. First, as many citizens as possible should be involved in determining what your community needs because an electrification project will affect everyone in the community. Explaining the reason for the energy needs assessment is the first step in getting people involved. They should be told why the information is needed and what it will be used for. They should be invited to offer help, comments or suggestions, and they should be kept informed of what you find out. Involving residents in this process of evaluation allows them to state their feelings about energy. In some communities where citizens were not invited to help in the decision making, minor problems with the electrical system have caused major upsets. Unpleasant situations sometimes can be avoided by seeking citizen input and acting on it. Next, it is important that community leaders understand their role in the process. They are the leaders. State and federal energy agencies. can give technical assistance and provide guidelines and funding, but it is up to your local officials to decide what will work in your community. Local leaders will have a much better understanding of the local situation than anyone else. They will be responsible for beginning the planning process, approving a plan of action and putting that plan into place. How do we get started? You may want to use some or all of the ideas mentioned here to begin your planning process. Feel free to change or add to these ideas to come up with ones that fit your particular community. 1. Appoint an energy coordinator. One way to get started is to appoint an energy coordinator who will then be responsible for calling meetings, seeking technical assistance and generally helping with any other tasks that need to be done. Someone suchas the city administrator can take on this role, or you can find a willing person in the community. The person chosen should be concerned about the community's energy problems and able and willing to offer his or her time to help solve the problems. Once a coordinator has been appointed, community leaders should provide him or her with PLANNING YOUR PROJECT clear direction concerning the information or issues they want addressed and then allow the coordinator to do his job without interference. The coordinator should report progress to community leaders on a regular basis. 2. Appoint an energy advisory committee. In addition to appointing a coordinator, community leaders may want to appoint an energy advisory committee. This group would work closely with the coordinator to carry out tasks identified by community leaders. Appointing an advisory committee reduces the amount of work the coordinator would be required to do alone. The advisory committee approach has another advantage: It allows for more points of view. When appointing the committee, leaders should try to include a cross section of community opinion. Village elders should also be included. It may be a good idea to appoint a community leader as amember. This will ensure that leaders are kept up to date on how the committee is progressing. All members appointed should be concerned about the community's energy problems. They should be willing and able to devote time to solving the problems. 3. Talk to other communities about energy problems. There may be other villages near yours which have gone through this process before and can offer you guidance. Assessing your needs: The work begins How do you find out what your village needs? There are a variety of ways to come up with useful information about what your electrical needs are. Depending on what your coordinator and advisory committee recommend, you might conduct a formal house-to-house survey of the power now being used, or call a village meeting to ask residents what is needed. Through experience, your village leaders or advisory committee might already have an understanding of how much electricity is needed for the future. Or, perhaps you'll come up with another means of deciding what your community’s energy needs are. All these methods are acceptable. If you decide to conduct a formal survey, what can it tell you? ¢ If your community does not have an electrical system, the survey could be written to gather opinions of citizens about the type of system they want and the amount of electricity the community might be expected to use. ¢ If your community is planning to expand the present system, the survey might be written to gather opinions about the current system, what needs to be done to improve it and the amount of electricity that would be needed from an expanded system. e Even if you have no plans to upgrade your present system, the survey could be used to learn how citizens feel about the utility. A sample electrical energy survey is provided in Appendix III. If you decide to write your own survey, you can ask for assistance from the Alaska Power Authority or other energy agencies. R ZS Commit meet’s todoy 3 4 PLANNING YOUR PROJECT Creating an energy plan After you've taken stock of your present power system and your current and future needs and written a needs assessment report, you'll develop an energy plan based on what you've found out. Your plan can be a simple one-page report that explains what the expected energy needs will be in two years, in five years, or in ten years, and how the community will meet those needs. For example, power may now go to only one part of the village. The needs assessment may show that people in homes in another part of town want electricity. The energy plan would tell what steps are needed to supply power to that part of town and when they should be done. Your energy plan will be one of a kind, tailored to your community’s situation. You might want to include a map showing proposed locations of new storage buildings, powerhouse or rights-of-way for new power lines. Keep in mind throughout your work that the Alaska Power Authority and other agencies can give you assistance if you have problems or if you're just not sure how to proceed. For more help... For additional information and technical assistance concerning energy needs assessments and energy plans contact the Alaska Power Authority, the Alaska Department of Community and Regional Affairs; Rural Alaska Community Action Program or the Alaska Public Utilities Commission (see Appendix I, Directory of helping agencies). Nearby local utilities and regional nonprofit Native associations also can help. Local Energy Needs What do we really need? Technical Assistance Do we need outside help? Community Involvement Keep everyone informed!!! Short Term Goals What shall we do now? Long Term Goals What would we like to have? Follow Through Make the plan work! PLANNING YOUR PROJECT Energy Planning Tips Give thoughtful consideration to your local situation, then outline what the community thinks its energy needs are. Contact agencies outside your community to ask their help when you run into a problem. State and federal agencies can help you ask the right questions and ask ail the questions that need to be answered. Involvement is the best policy. The best energy plan is one in which everyone in the community has had a chance to participate. As you develop your plan, set some short-term goals that people can do right away. The plan is more likely to succeed if something, such as an energy conservation program, can be started immediately. Otherwise, it may become just another study that’s put on the shelf and never used. Setting long-term goals helps you plan for the future. It also helps you recognize and head off energy problems before they happen. Put your newly-created plan into action right away. Whether it involves more information gathering in the community, finding funding sources or beginning an energy conservation program, get started now. 5 Chapter 2: Feasibility Studies You've assessed your needs, both present and future, and drawn up a plan to show where you want to go in terms of electrical power. Now, how do you get there? It’s not yet time to bring out the shovels. First, you'll have to see if your project is feasible. What is a feasibility study? If your electrical project is built, will your community be able to afford the cost of power? This question must be looked at carefully before you proceed with your project. The word “feasible” means “capable of being done and carried out.” The feasibility study is a technical report that looks at what you want to do, considers your options and weighs the advantages, disadvantages and costs of each. It has many more details than your energy plan. Recommendations in the feasibility study will help you decide the best way to build your project. They should tell you: © what types of systems and equipment are available and which would best meet your community’s needs; ¢ where, when and how the system should be installed; ¢ which alternative energy sources might be feasible; © what size and type of generators and other equipment are needed, and whether heat recovery from the generators is feasible; and ¢ how much fuel storage capacity the community should have to support the system. The study should include cost estimates for equipment and materials; construction and installation; transportation; fuel and operation for each year of the project’s expected life; and expected repair and maintenance. These cost estimates should be looked at closely before you decide to go ahead with your project. If the projected cost to electric customers is so high no one can afford to pay their bills, you should not undertake the project. It may be difficult to drop it after you've spent a lot of time on your planning, but it is better to decide this early, rather than to build a project your community cannot afford. Who should do the feasibility study? The State of Alaska administers a Rural Electrification Feasibility Program through the Alaska Power Authority. Through this program, trained professionals help communities to do feasibility studies at no cost to the community. Communities may request that the Alaska Power Authority help them in this area. The power authority's work is scheduled on a first- come, first-served basis, so communities sometimes have to wait for this help. FEASIBILITY STUDIES SSESSMENT <5 aS, scattered information to make a picture of the local situation. THE = PLAN -..complete with geals and options for achieving them. Which is the best woy ? What can we afford 7 How canwe get the most for our money? 7 8 FEASIBILITY STUDIES @ & a Allow | kw eer nouse =}. oO ody ys) 4watts per square Colt school building 2-3 uy for each commercial building EQUALS ESTIMATED SIZE OF MAIN GENERATOR, NEEDED foR YOUR VILLAGE You also may hire an engineering firm specializing in electrical work to do your feasibility study. Keep in mind, however, that you will be paying for their work. Whichever way you decide to handle it, community leaders and other village residents should understand what is involved in a feasibility study and why it is important. What will the feasibility study tell us? The written feasibility report will cover a variety of topics. Some of them will be new to you. The following information will help you better understand your completed feasibility study report. 1. Generators: How many? How big? Your feasibility study will probably recommend two or, preferably, three generators, depending on the size of the community. Using three smaller generators, rather than one big one, gives you a system that is more flexible, more reliable and more economical. Each generator should be big enough to generate “essential” power for the community. For example, providing for emergency lighting, telephones, refrigerators and freezers could be the level of service your community feels is the bare minimum it can get by with. This is called your essential power need. Generally, only one of your generators needs to be large enough to provide power for the whole community. The other should be large enough to supply essential power during an emergency or when the first generator is shut down for maintenance or repairs. The smaller generator also should be used during minimum-demand times such as during the night or in summer when less energy is used. Your completed feasibility study may recommend adding more generating capacity than you actually need today. For new electrical systems, there is generally a three-year growth period in electrical demand once the residents become accustomed to the convenience of electricity. People will naturally buy freezers, refrigerators, television sets, appliances and tape recorders. The proper-size generation system for your community today could be too small in a few years. Some communities may have outgrown their existing electrical systems. They may need to buy new generators either because their existing system is too small or because an old generator needs to be replaced. For these communities, the feasibility study will explain what equipment should be added and whether the older equipment can be used for back up. The feasibility study for a new electrical system will consider how to meet the highest — or peak — demand efficiently, at the least cost. In every community, electricity use varies from hour to hour throughout the day. During the day or early evening when everyone is cooking, watching television and talking on the radio, the demand for power will be at its peak. A 150- kw generator may not be enough to handle the load. But at night, when few people are up using lights or appliances, a 25-kw generator may be perfectly adequate. It is not economically sound to buy a single generator big enough to handle your peak demand, since the peak does not last long and much of the energy would go to waste at other times of the day or night. The solution is to use two or three generators of different sizes. Used separately or in combinations of two or three, these units should be able to meet your changing power demands without generating much more electricity than your village needs. Oversizing or undersizing generators — using large ones when smaller ones would meet the demand, or using smaller ones which could easily be overloaded — will lead to maintenance and operation problems. For communities with existing electrical service, the easiest way to estimate how big a generation system you need is to take amp readings on your existing generator and at each of the customer's meters to determine your actual electrical load. Then add on an estimate for new demand. For communities considering installing new electrical systems, one way to figure the size of your main generator is this: Estimate a load of one kw for each house in the village. If you plan to replace the present generator at the school, add the number of kw the school now generates. For example, if the village has 30 homes and a school with a 25-kw generator, the load would be 55 kw. Stores or other commercial buildings can be estimated at 2 or 3 kw, possibly more if they are large. This method of estimating your need will give you some rough information to take to a consultant for final analysis. 2. The powerhouse: What to consider? The powerhouse is a fire-safe building large enough to hold the generators and other equipment. It should have room for a fuel day-tank and safe storage for lubricants and tools. Land must be made available for the building and for bulk storage tanks. The state fire marshall must review and approve all construction and renovation projects. Costs for constructing a power house vary widely. Some villages have used old buildings, reinforcing them to support the generator weight. They also have used volunteer labor. Asa result, the village powerhouse cost very little. Other villages have used all new materials and minimum wages for village workers to build the powerhouse at an average cost of $40 to $50 per square foot. A generator module package is a very economical alternative to building a permanent powerhouse. This is a portable metal building, like a trailer, specifically designed and built FEASIBILITY STUDIES Use small gener ator(s) with the main rene to mee Maxi mum demand. Main 9 for enerator sized baseload demand. Should be enough for normal enerator alone | itl aie DURING A SAMPLE 24 HOURS] [sneratog dene: times (night, summer). or to run the essentials duri Q main generator failure or repairs. 9 10 FEASIBILITY STUDIES to house a set of generators and the necessary switchgear. These portable powerhouses are available in various sizes and do not require a lot of on-site preparation. The pre-packaged units require a piece of heavy equipment to position them on-site. They usually come equipped with a fire-protection system. 3. Distributing the power: Poles or underground? Soils subject to frost and permafrost make installing poles and burying lines directly in the ground difficult or impossible in many villages. The alternative is a surface utilidor system such as those used by Alaska Village Electric Cooperative in some areas. (You cannot, however, use these in areas that often have floods). Each village must consider its own unique situation and come up with a distribution system that matches its needs. The utilidor has a poor performance and maintenance record. More proven systems of poles or underground wiring have good performance and maintenance records. Almost any soil problem will increase the cost of your distribution system. For example, if flooding conditions make it necessary to use poles, and if the soil is frost-susceptible, then larger poles will be needed. Special equipment (power augers) will be required to install them properly to limit frost jacking. A village with 50 to 70 houses should expect to spend $100,000 to $400,000 for an adequate distribution system. 4. Fuel: Always the biggest cost Alternative sources of energy suchas wind power and water power should be considered by communities building electrical systems or adding on to their existing systems. These methods can provide very inexpensive power, once initial construction costs are paid. Yet, even though the cost of diesel fuel is higher than the cost of wind or water power, you will probably find diesel the most practical power source for your village. Expect that fuel will ultimately be the largest cost of electrification, and that no matter what the cost, it must be paid year after year if you want electricity. The cheapest way to buy fuel is in bulk quantities. This means bulk storage facilities must be available. The feasibility study will consider how big the tanks should be and recommend the type of tank your community should use. An 18-month supply of fuel is considered essential for villages in rural Alaska, where timely deliveries depend so much on the weather. The feasibility study should note that the first time a village purchases fuel the cost will cover this “extra” fuel. After the first year, your yearly fuel order can match your estimated need, and the six-month “cushion” you purchased to begin with will keep you from running out of fuel if you go over your estimate or if the next delivery is delayed. There also must be a way to transfer the fuel to the bulk storage tanks and from there to the power plant, a way that will work in both winter and summer. Your feasibility study should consider ways to cut fuel costs. One way is to coordinate your purchase of fuel with one or more nearby communities, or with schools or other large energy consumers in your area. Cooperative buying can lower the overall cost to each participant. For example, in the Lake Iliamna area, several communities coordinated their purchase of diesel fuel. This large-quantity purchase helped save 10 cents per gallon on fuel costs. Your savings on a similar buying plan could be applied to other utility expenses or to reduce the overall cost of electricity to consumers. You should also consider establishing regional distribution centers for diesel fuel. Instead of having large storage facilities in each individual community, the regional center would act as a warehouse for a number of smaller communities in the area. Year-round access for delivery of fuel is an important consideration for a regional distribution site. FEASIBILITY STUDIES a aS ie Ha See eee eet 2.3 gallons per hour ©.5 gallons pec houc 4 a 4.0 gailons/ hour fi ms HOW MUCH FUEL DOES YOUR GENERATOR NEED? How much fuel will your generator use? This drawing shows how much fuel is used each hour if your generator is running at its best. You can roughly figure out how much fuel will be used in a year by multiplying the above rates by 8,760, the number of hours ina year. Keep in mind, however, that generators are not used at full power all day long, so your consumption will actually be from 25 percent to 40 percent less. 5. Maintenance: Keeping equipment up will save money Maintaining your electrical system will help prevent problems. Lack of proper maintenance will lead to major failure of the diesel generators and the distribution system and can bring on a Crisis situation. Just as paying for fuel is considered a necessary cost of supplying electricity, paying for proper maintenance also should be considered part of the cost. Besides discussing the expense of replacing worn or damaged parts, your feasibility study also should consider these costs of maintenance: e Wages — Someone must keep track of the operating time of each machine. They must change oil and filters and perform routine or minor maintenance. In addition, they must periodically overhaul the generator and sometimes completely tear it down to make sure that the generator operates efficiently for its full life span. ¢ Training — The person who operates your generators and other equipment must be trained to do so. Most communities provide for training through the manufacturer before the electrical equipment is installed. You also may want to pay for additional training, perhaps once a year, after the system is in place. 11 12. FEASIBILITY STUDIES To keep maintenance costs down, communities within the same region should consider sharing a “troubleshooter.” This specially-trained person would be called in when extensive repairs or overhauls were needed. Routine and minor maintenance would still be done by village personnel who would require less training. This type of arrangement would have other advantages. It would encourage the purchase of common systems within regions, increase the availability of spare parts, and reduce the overall cost of maintenance and repair. In order to do this, however, you would have to purchase the same type of system as the other communities. 6. House Wiring: Who pays? In larger communities, the customer is responsible for his own home's interior wiring. The utility company furnishes all equipment including the meter on the house. In many villages, however, the situation is very different. Houses are usually not wired, and many villagers cannot afford to have them wired properly. If these villagers are to be customers, they will probably need funding assistance and help in wiring their homes. ZZ eka Caw arg Your feasibility study should consider this problem because it could become a major cost of electrifying your village. 7. Adding it all up To help you understand how much your electrical system will cost, here is an example of what a typical village of 30 homes might pay to run an electrical system on a yearly basis: ¢ A 30-home village with a 50-kw generator will need 33,000 gallons of diesel fuel to begin with (an 18-month supply). At a cost of $1.20 per gallon, the village would pay more than $40,000 for fuel delivered to the community. This means the village must take in $2,222 each month just to pay for fuel ($40,000 divided by 18 months). _ © The village would pay about $10,000 per year in wages for someone to run the system. = @ Maintenance and lubrication would average $4,000 a year. ORAG GE Altogether, this adds up to $40,666 per year (12/18 of $40,000 = $26,666; + $10,000 + $4,000). The village would need $3,388 per month, or $112 per family, to maintain the barest of operations. If the costs of the building, generators, fuel storage and distribution system were to be paid back (such as you would do if you pay back a loan), the cost of a village electrical system might be prohibitive. 8. Are there ways to cut costs? Efficiency for diesel generators used only to produce electricity varies between 25 percent and 35 percent. This means approximately 65 percent to 75 percent of the diesel fuel’s Re and HOUSING FEASIBILITY STUDIES = 13 potential energy is lost or wasted through hot exhaust gases, the generator’s cooling system, radiant heat from the engine itself, and from conversion of diesel fuel to electricity. A method to capture some of this lost energy is to use a waste heat recovery system. Your feasibility study should consider this money-saving process. The most common method of heat recovery is to use the generator’s cooling system to heat nearby buildings or to heat tap water that comes out of faucets. Some communities use waste heat for heating schools and other community buildings. One village heats a community greenhouse with waste heat. Waste heat recovery systems work best when the building to be heated is close to the powerhouse. The size of the diesel generator also is important, since it will only produce a certain amount of waste heat while operating. A waste heat recovery system can increase the overall efficiency of the diesel generator system to more than 60 percent. lai SS =Some of the =— o- oct 4 uel energy that is2 FN fo Gmeirclly won Crees wasies 75%, the cooling of the | \system canbe fue\'s revered for oe other uses evergy Ugh through a exnaue fadiant SE ey ete. ) ve HE Ale =EXCHANGE - SYSTEM SPACE. HEAT -TO OTHER, BUILDINGS Se For more help. . : For additional Ri cstion and technical assistance concerning electrical feasibility studies, contact the Alaska Power Authority, the Alaska Department of Community and Regional Affairs or Rural Alaska Community Action Program (see Appendix I, Directory of helping agencies). Me COST PER HOUSEHOLD e FOR HAVING ELECTRICITY NUMBER oF ab DISTRIBUTION HOUSEHOLDS AVAILABLE TO THE VILLAGE i SYSTEM INTHE VILLAGE FEASIBILITY STUDIES 14 HIRING A PROJECT OR CONSTRUCTION CONSULTANT Chapter 3: Hiring a project or construction consultant This isla aes sabe ilieselinct sings ba echloviing dex deldbiieabenl said electrical system. The amount of time required of a consultant the scope of the project, such as whether it will be a whole new « syetentr wnupgrade of an exiting system. Who should we hire to help? Once the community decides what the project will involve, it should seek the help of a consultant to design and manage the project during construction or installation. Some communities have their own engineers who can be responsible for the design and construction management of the project. This community engineer should have an electrical engineering background and design experience relating to power generation and distribution systems. If there is no one with this experience in the community, then an advertisement should be issued to request these services. The request, or solicitation, would be similar to those you write for any capital construction project and would be placed in newspapers or trade journals. Include a complete description of the project, availability of local resources (labor and expertise), the date and time to respond by, address and person to submit to, and where additional information can be obtained. You also may want to state what funds are available and any time schedule which must be kept. Your solicitation package should be as complete as possible and should contain: 1. project location; 2. contact person and how to contact him or her; 3. response date and the place where response should be submitted; 4. general background information about the project, such as what it is for, what the location is like, and any previous work which has been done; 5. acomplete description of what the project is to accomplish and what is involved in accomplishing it, such as obtaining rights-of-way, clearing land, constructing generator powerhouse and related distribution system, the number and types of buildings to be connected to the system, names of consultants who will be responsible for the design, construction, and/or construction management of the project; 6. resources available in or near the project area, such as labor and level of expertise, local trees suitable for poles; equipment on hand; 7. funding sources, if available (you also could decide to ask for research on potential funding sources as part of the services the consultant will perform); . proposed schedule of completion and/or payment schedule (if known); . request for references and history of experience with similar type projects; . proposed budget for accomplishing the project, timeline and how they intend to accomplish it. ooo 15 16 HIRING A PROJECT OR CONSTRUCTION CONSULTANT GENERATOR Requesting a consultant in this way allows you to compare proposals from several consultants. Both ability to perform the required work and fees for performing the work should be examined. Responses to the solicitation should indicate the consultant’s cost of services, what will be provided, references, recommended payment schedule, and a recommended delivery schedule. The consultant should provide, under contract, an analysis of the existing system, a tentative system design (if none exists) and estimated cost. Other things the consultant should provide: an estimate of the utility rate schedule, estimate of the amount of electrical use at that rate, and sources of potential financing (if none are available or sufficient). Have an attorney look at the contract After the responses are received and reviewed and a consultant is selected, contact the consultant and make arrangements for an initial meeting to discuss any differences between their proposal and your request. A contract must be agreed on and signed by both parties. It is advisable to have an attorney draw up a contract or review the consultant’s form contract. (Consultants or suppliers often have a standard form contract for providing services. However, this form is not necessarily written in the best interest of the village.) Having the community’s attorney, or an engineer or someone from the Alaska Power Authority, check the contract will help ensure the community will receive the services it intended to receive and not something else. For more help... For additional information and technical assistance concerning hiring consultants, contact the Alaska Department of Community and Regional Affairs or the Alaska Power Authority (see Appendix I, Directory of helping agencies). : HIRING A PROJECT OR CONSTRUCTION CONSULTANT SYSTEM DESIGN How. much will it cost? Should be reviewed by ALASKA Powem AuTwouTy I technical and ‘ mca asib, ft *complate Ast ebution What will you pay your consultant? Circumstances vary from one rural Alaskan village to the next. Similarly, the fees villages pay to consultants will vary. The only way to accurately estimate costs is on a case-by-case basis, but this diagram will give you an idea of what costs are involved. The Alaska Power Authority can also provide assistance in preliminary evaluation, writing request for proposals, assisting in selection of a consultant, and review of draft reports. This 17 18 HIRING A PROJECT OR CONSTRUCTION CONSULTANT service is generally at no cost to the village, but is very dependent on the current workload and budget of the rural technical assistance program at the Alaska Power Authority. The Alaska Power Authority also may help a village prepare an invitation to bid a construction project, assist with construction management and inspections, or assist the village in purchasing their own materials and force accounting the project. OPTIONS FOR FINANCING YOUR PROJECT Chapter 4: Options for financing Once you've figured out what type of project will meet your community’s electrical needs, you will need to estimate how much it will cost and look for ways to pay for it. The community will not necessarily have to pay all of the cost of the project. However, any money your community can provide will show its commitment to the project and could help in obtaining other funds. A few funding sources are described in this chapter, but you are not limited to these. What will it cost? Before you can look for money to fund a project, the project’s scope and cost must be determined. A list of materials, labor and related costs should be assembled. The Alaska Power Authority or your professional consultant will do most of this work, but community leaders should understand what is involved. Overhead costs for construction management, inspection and administration should be included. Materials may include poles, electrical transformers, meters, disconnect switches or circuit breakers, generators, switchgear, splice kits, tools to install the system, basic inventory supplies and diesel fuel. If the project involves a new system, then bulk fuel tanks and the initial purchase of diesel fuel should be included along with lube oil, coolant, filters and other stock items. Costs for materials can be determined by contacting various suppliers. Labor costs should include those for constructing the system or project, as well as those for ordering materials and delivering them to the project site. Some training of workers also may be necessary. Labor costs may vary depending upon how the project is funded. In some cases, federal Davis-Bacon wage scales may apply. Other funding sources may allow local labor rates, union rates or voluntary laiyor. Before you look for funding outside the community, you should decide what can be done locally to pay for the project. This will determine how much more money you need to obtain. Your contribution to the project could be made up of money or volunteer project workers. Or, the community might be able to loan equipment, tools, supplies, or other support. Where will the money come from? Once the cost of the project has been determined, the community will have to look at ways of funding the project. Most communities in Alaska turn to their state legislator first to find funds for local projects. Legislative funding for community projects depends on the availability of state funds, which, in turn, depends on the fluctuating price of oil, Alaska’s main source of income. UF: me 19 20 OPTIONS FOR FINANCING YOUR PROJECT SOURCES OF FUNDING THE FEDERAL GOVERNMENT? YOUR COMMUNITY RURAL ELECTRIFICATION ADMINISTRATION (REA) Provides loans to REA-chartered utili- 1 ties for construction of electrical ae | tion, transmission and distribution tines. \ ‘= oe ANI THE STATE OF ALASKA THE ALASKA POWER ss ‘ AUTHORITY (APA) cop Community can sup- POWER DEVELOPMENT FUND Betas Ply — volunteer labor, gail ps equipment, tools and Provides assistance for construction or acqui- sition of power projects approved by the state legislature. Projects are owned by the state. Rates are determined by the APA. Refer to AS 44.83.177-384. POWER PROJECT LOAN FUND Electric utilities, subdivisions of state govern- ment, regional electric authorities, regional or village corporations and nonprofit marketing cooperatives are eligible to receive loans for small scale power production and conserva- tion facilities, bulk fuel storage, transmission and distribution projects and potable water projects. SEO CANTEeR DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS — An electric utility which has an Alaska DIVISION OF MUNICIPAL AND Public Utilities certificate for its area & REGIONAL ASSISTANCE may receive a loan to extend service to at lenet tires Guntomersl Provides Rural Development Assis- tance grants of up to $100,000 to com- munities for projects to increase em- ployment or promote economic develop- ment. OPTIONS FOR FINANCING YOUR PROJECT If direct legislative grants are not available, several state programs currently help communities fund electrical and power projects. They include: 1. Power Development Fund 2. Power Project Loan Fund 3. Rural Electrification Revolving Loan Fund 4. Rural Development Assistance Grants In addition, the Power Cost Equalization Program helps customers pay for their electricity after the utility is built (see Chapter 7), and the federal Rural Electrification Administration (REA) Assistance Program provides loans for the construction of electrical generation, transmission and distribution lines (see chart page 20). One thing that could affect where your community gets money is utility ownership. This handbook has been developed to guide community leaders in their pursuit of an electrifica- tion project. But the electrical system also could be owned privately or as a cooperative. Be sure to check each funding source to see if your community’s type of ownership is eligible for funds. 21 22 OPTIONS FOR FINANCING YOUR PROJECT Pulling it all together .. . Now, you need to prepare a package to approach others for funding. In your funding package you will be trying to convince someone that your project is a worthwhile investment, as well as necessary to the community. In some instances, you will need to convince them that you can pay back a loan. Your funding package should contain some basic parts, including these: 1. Application (if required or necessary) 2. Background (include energy needs survey/study) 3. Scope 4. Cost 5. Funding sources 6. Project revenue The application If you are applying to a specific program, be sure to obtain an application along with any specific requirements, application deadlines and the amount of funds available. The application package should contain the name of a contact person who can help you complete the application and answer any questions you have about the information requested. This agency person is not responsible for completing the application for you. If you have a lot of problems completing the application, make an appointment with the responsible agency person to sit down and go over the entire application. In some instances, it may be appropriate to have your consultant complete the application for you. The background The background section of most applications is where you should describe what the existing situation is and how the project will benefit the people it is to serve. You should talk about the economic impact and social improvements which will be possible due to this project. For example, a construction project using local labor will bring money into the community. What are the possibilities of creating new jobs when construction is completed? With the availability of affordable electricity, how would the lifestyles of residents improve? Would homes and gathering places become more safe or more comfortable with improved interior and exterior lighting, or with the availability of power for modern amenities such as toasters, freezers, personal computers, washers and dryers? BACKGROUND Power needs APPLICATION OPTIONS FOR FINANCING YOUR PROJECT The scope The scope of the project should describe what the project is all about, how it will be accomplished, and what the time line is for completing the project. This section is the “meat” of your proposal and should be as complete as possible. Give a complete list of the costs involved. You should tell how you intend to pay for the complete project and what would happen if you did not receive any additional funding from the source you are submitting the application to. Project revenue The project revenue section should describe the operation and maintenance of the completed project. This should include labor, materials, administration, cost of diesel fuel, training of personnel, repayment of debt, and all other associated costs for the operation of the project. In addition, you should project the expected revenue from the selling of electricity. You also may want to address estimated growth in the area and increased electrical demand. Meeting the deadline If the application contains a deadline, be sure to submit your package within the specified time period. If you submit your package by mail, send it certified return-receipt-requested. This way you will know the date and person receiving your package in case of any questions. Go ahead and check After your application is submitted and sufficient time has passed, contact the agency to make sure they received your package. Talk to the person in charge of the program and ask if everything is in order with your application. You may also ask about their schedule for reviewing applications and notifying applicants of the results of the review. Submitting requests to your legislator If you are submitting your funding proposal to your state legislator, much of this same information will be required. Contact your legislator beforehand to solicit his or her guidance in submitting your request. If your request is funded, it will most likely be in the form of a legislative grant which you will not be required to pay back. The state agency which normally administers these grants is the Department of Community and Regional Affairs. Even though your grant comes through a direct appropriation, the department will require you to supply much of the same information needed for a funding application. Contacting department personnel as soon as you put in your request to your legislator may help smooth out any problems once your proposal is funded. 23 24 OPTIONS FOR FINANCING YOUR PROJECT | BUILDING YOUR ELECTRIFICATION PROJECT = 25 Chapter 5: Building your electrical project Project administration: What’s included? To carry out a project in an orderly and efficient manner, you'll need to complete a fairly standard list of tasks. The best way would be to do them generally in the order given below. Set up a project time schedule A project time schedule is a calendar that specifies when events should begin and when they will be finished. The schedule may be set by the community, or by the contractor hired to design and build the project. The time schedule should include every action that must be done to carry out the project. You may not know for sure the exact date you'll receive funding. If this is the case, use an approximate date to begin planning your time schedule. Fill in the exact dates after your funding comes through. Schedules from one project to the next will vary greatly. The realities of construction in rural Alaska — short construction season and long lead time necessary to get materials to the site — must be accounted for. Signing the contract with the funding agency Even after your community has received notice that funds are to be awarded, you must wait for an executed grant agreement or contract before beginning any work or incurring any expenses. Some funding agencies will not allow funds to be used to repay money that was spent on a project before the contract was signed. Both you and the funding agency will sign the grant agreement or contract. Be sure you understand what the document says. It should state how the agency expects you to spend the money. If the contract does not cover something you want in the project, contact the agency to make sure the item is covered. If there is any doubt that something is allowed, always contact the funding agency before proceeding. Otherwise, your community may end up footing the bill for that item. x SIM[ TW] TIF |S Mich ; isa 15 signe ae Fee fo amy Raye} iw 7 le je 0 i ele aps Bi tede 3 AUGUST 2 VROUM, EPTEMBE! 26 i BUILDING YOUR ELECTRIFICATION PROJECT | Sn rar rr se eee Obtaining site control Site control simply means you have proof the land on which your project is to be built belongs to the community, or the community has a lease on the property for at least as long as the expected life of the project. Some agencies require proof of site control before they will sign a grant or contract. Others may sign the grant or contract but will not release any money to the community until site control is documented. Site control also includes power line easements or rights-of-way, which give the community access to the property where power lines are located. This must be completed before construction begins. Rights-of-way provide the utility permanent access to the distribution system so that maintenance and repairs can be performed as necessary. Filing an environmental impact statement An environmental impact statement is required by some funding agencies. An impact statement also may be required if a project is within certain state- or federally-controlled areas, such as a wildlife refuge. The impact statement is used to show how your project might affect the environment, including air quality, wetlands, water quality, noise levels, fish and wildlife. Some agencies require an impact statement before funding a project. Others may sign the grant or contract but will not release money until the impact statement is approved. Selecting a contractor Because electrification is a highly specialized field, your community may need help from professionals. You've already selected an electrical engineering firm to design your project (see chapter 3). In addition, you will likely hire an electrical construction company to build it. You may want to draw up an agreement, in writing, with the construction firm stating that local people will be hired to do all nontechnical work. Either the electrical engineer or the construction firm should be hired to inspect and approve construction and make sure work is done correctly. Some communities may not have personnel or residents with enough time or experience to administer the project. If enough money is available, a construction management firm may be hired to advertise for engineering or construction firms, order materials and supplies, and take care of all project bookkeeping and reports. A management firm can do as little or as much as a community wants done. If you decide to contract for construction management, you should be sure your contract holds the firm accountable for proper construction of the system. The Alaska Power Authority may be able to provide assistance with construction management. BUILDING YOUR ELECTRIFICATION PROJECT = 27 Purchasing equipment and supplies Purchasing equipment and supplies is not easy and should not be taken for granted. Most communities will turn to professionals — an engineering firm, a construction company, a project management firm or the Alaska Power Authority — for help in ordering supplies. Much of the material used in electrical projects cannot be purchased “off the shelf” but must be ordered from special suppliers. Some items, such as transformers or generators, require considerable lead time to receive. It may be necessary to shop around to find other equipment and supplies. Generators are not small purchases, and serious thought is required before ordering them. It is important to begin purchasing equipment well in advance of shipping time so that all materials and equipment can be shipped at the same time. If one needed part does not arrive, project completion can be delayed until the next construction season. Shipping materials and supplies Many stories can be told about lost items or materials that were still at a shipping point when acommunity project was ready to start. After your supplies have been ordered, you or your engineer, contractor or project manager will need to give special attention to their shipping. Shipping orders should be placed with the carrier as far in advance as possible. Once arrangements are made, do not take for granted that the shipment will arrive on time. Keep in touch with suppliers to make sure items are delivered to the carrier. Then contact the carrier to make certain all items have arrived and will be delivered. If materials and supplies are to be transferred from one carrier to another, contact both carriers to make sure everything is in order. This may sound like a lot of unnecessary work, but it will help assure that the community receives the materials and supplies it ordered. Bookkeeping and record keeping procedures Records of all transactions relative to a project should be kept in one file so that everything relating to the project can be found in one place. All important correspondence and papers, such as contract, agreement and forms, should be in these files. Keeping financial records up to date and in order is a must. You will want to open a separate banking account for the project and keep all information in a separate ledger or in a separate area of the general ledger. This will make it easier to keep track of and account for funds. Project reporting Most funding agencies require communities to file periodic reports telling about the progress of a project and how much money has been spent on it. Each agency has its own requirements for reporting, and each provides information which should explain what is needed. It is important to follow the agency's directions concerning reporting and to send in all reports on time. 28 BUILDING YOUR ELECTRIFICATION PROJECT Dealing with the funding agency It is important to keep in contact with the funding agency. If the community needs information concerning the project, or if you receive information from the agency that you do not understand, do not ignore it. Contact agency personnel and make sure you understand them and they understand what you are doing. Closing out the project Once a project is completed, most agencies require you to fill out certain forms and send them in with some project records. This should be no problem if you've kept good files and bookkeeping records. After providing what the agency wants, keep all records for at least three years. Although the project is complete, further questions may be asked, or your project might be one that the agency will want to audit. If you receive state financial assistance, you may be required to conform to the single-audit requirement (see Appendix VIII, State of Alaska audit requirements, 2 AAC 45.010). S Pi When Sae Sen Free For more help... For additional information and technical assistance on building your electrical project contact the Alaska Department of Community and Regional Affairs (see Appendix I, Directory of vA helping agencies). as RUNNING YOUR ELECTRICAL UTILITY — 29 Chapter 6: Running your electrical utility Helse: at oghe fame orkid peal An electrical system is a public utility — a service provided by and administered by a community. To manage utility, you must follow certain rules and regulations to be sure the y by by everyone who uses the electricity. You should set up your manage- nt procedures before the utility begins operating. What is involved in administering an electrical utility? Before you can begin to administer your new electrical system, your community must pass a law, or ordinance, allowing it to do so. Cities in Alaska have been given the “power,” or right, to provide electricity by Alaska Statute Title 29, Sec. 29.35.010(9), municipal facilities and services. Facility power is a legal term used in Title 29 to mean the community's “power” or legal ability to provide a service and to operate an electrical “facility.” Your community's new law should state that the community accepts the facility power (from the state) to provide electricity. The ordinance should include things that are required to carry out the power (of providing electricity) and to operate the (electrical) facility. See Appendix IV for ‘a model electrical utility ordinance. Your community does not have to be formally organized under Title 29 to operate a public utility. However, if you serve 10 or more customers, you must obtain a Certificate of Public Convenience and Necessity from the Alaska Public Utilities Commission (APUC). The certificate gives the utility authority to operate and to collect fees. To obtain a certificate, you must apply to the commission and show there is a public need for electrical service. You also must show the community is fit, willing and able to operate the utility. The APUC also sets regulations for public utilities. Some public utilities may be given exemptions to APUC requirements, depending on such things as how they are organized, how large their service area is, how much generating capacity they have and how much revenue they bring in. For more detailed information, refer to Alaska Statute 42.05 or contact the APUC. A tariff, as defined by the APUC, means: “a rate, charge, toll, rule or regulation of a utility relating to services furnished by the utility relating to services to the general public for compensation . . .” (AS 42.05.701). The tariff describes how the utility will operate; what the costs are to the customer; the area where the utility will operate, and how the utility will coordinate with other utilities within the same area. Your community may want to set up a w/ity board to run your electrical public utility. If so, you'll have to pass an ordinance explaining what the board's powers and duties are. Title 29, Sec. 29.20.310, gives communities the power to set up utility boards. Saya: %o, Sh Pil. ae 30 RUNNING YOUR ELECTRICAL UTILITY WHAT To INCLUDE IN AN ORDINANCE a checklist Ad National (3 Betriea ae an National Electrical Sofety Code Application U meee municipality Complete’ UO U4 ilty deposit established Amourt $ TC) Connection Service arranged, Fee? # OO Meters How many 2 “SSS — Service: nee homes, Commercial buildings C1 Disconnection of service rules established. Reconnection fee DD Naintenance arran ged : What should be included in an electrification ordinance? The model electrification ordinance in Appendix IV will help you understand how your ordinance should look. Some of the things you must address in your new law include: ADOPTION OF THE NATIONAL ELECTRICAL CODE AND NATIONAL ELECTRICAL SAFETY CODE The National Electrical Code (for interior wiring) and the National Electrical Safety Code (for utilities) are published by the National Fire Protection Association and the Institute of Electrical and Electronic Engineers. These codes describe how electrical systems should be constructed, altered and repaired. They also set standards for installation of electrical wiring, devices and equipment. Your community should adopt the codes by reference. This means they will be made a part of the ordinance just as if they were written into it. (Because of their length, it would be impractical to actually include them in the law.) By adopting these codes the community ensures that work on the electrical system — the power plant and distribution system as well as interior wiring — complies with standard and acceptable safety practices. Before you adopt the codes, ask your electrical engineer or the Alaska Power Authority to help you determine if there are any parts of the code that do not apply to your community. You can then omit these sections when you adopt the codes. APPLICATION FOR SERVICE Before a consumer receives electricity, the village should require a written application to be filled out with the name(s) of the person(s) requesting the service, the building(s) served, and any other information necessary to collect payment for the service. UTILITY DEPOSIT Along with the application for electric service, the person applying should pay the city a deposit. The amount of the deposit may vary. Usually it should equal average charges for a one- or two-month period. The purpose of the deposit is to cover unpaid bills if a con- sumer leaves town without paying. Most of the time the city will refund the money to the customer when a consumer wants the service stopped. Because the deposit money technically belongs to the customer, the city must pay them a reasonable rate of interest on the deposit. This is explained more fully in Title 29, Sec. 29.33.070. CONNECTION SERVICE A fee is usually charged to connect a meter to the electrical system or to restore electricity to a meter that has been cut off. The fee is usually not large, but it should be high enough to cover the expense and time required to perform the service. For example, Matanuska Electric Association charges customers in Palmer $60 to connect to the electrical system. This includes a $40 deposit, which is refundable, a $5 membership fee and a $15 administration fee. METERING Meters should be used to measure how much electricity is used by each customer. Meters should be owned and controlled by the city. Your ordinance should include a section making it against the law to tamper with a meter. RATES AND CHARGES FOR SERVICE Your city council must set the rates charged for electricity. Rates may not be set or changed without a public hearing, and proper notice of the public hearing must be given. This is explained more fully in Title 29, Sec. 29.35.070. DISCONNECTION OF SERVICE If aconsumer does not pay his or her electrical bill, the city should disconnect service to the consumer. The ordinance should explain the time requirements and method for paying delinquent bills. If service is cut off, a reconnection fee should be charged when the customer asks that service begin again. RUNNING YOUR ELECTRICAL UTILITY 31 MAINTENANCE OF THE ELECTRICAL SYSTEM Gu IDELINES The city should maintain the electrical system up to where electricity goes into a consumer’s established for: building or equipment. From that point, any electrical problems should be the responsibility of the consumer. EXTENSION OF SERVICE TO OTHER BUILDINGS Electrical cords or wires extended from one building or place to another should not be allowed without written permission from the city. DEFACING, BREAKING INTO, OR TAMPERING WITH ELECTRICAL | § SRT UTILITY PROPERTY : L] Extension of It should be against the law to damage any part of the electrical system. service LIABILITY OF CITY FOR DAMAGE The city should not be liable for any damage to property except when the damage is due to ni Defac ing a 40 the negligence of the city. oa bie or Ta PENALTY with uti fit Asection of the ordinance should set penalties for violating provisions of the electrical utility proper ty : ordinance. O Liability for damages What is a utility board? [id ea ee A utility board has five members. The board can either be appointed by the chief executive “or Violation (mayor) and confirmed by the city council or be elected at an annual election. If board & ordinance. members are elected, their terms can be from two to four years. Your ordinance should set the length of terms. This is explained more fully in Title 29, Sec. 29.20.310. What does a utility board do? State law allows cities to decide the board’s powers and duties. In most cases, a utility board manages the operation of the city’s electrical utility or other utilities. In some cities, the board only advises the council concerning utility operations. The power it has depends on what the city wants the board to do. How do you start a utility board? Utility boards must be created by adopting an ordinance, or local law, establishing a board. The ordinance should: © state that the board will have five members; © state whether the board will be appointed or elected and what the term of office will be; © state when and where the board will meet; and © state the board’s powers and duties. Power Cost Equalization Program: What is it? The State of Alaska provides, through General Fund appropriations, the Power Cost Equalization Program (PCE). The program became effective in 1984, replacing the Power Cost Assistance Program which had been active since 1981. 32 RUNNING YOUR ELECTRICAL UTILITY The intent of the PCE program is to provide customers of rural electrical utilities with rates that are comparable to those in Anchorage, Fairbanks and Juneau. This base rate, or entry rate, has been established at 8.5 cents per kwh. The PCE rate for a utility is calculated by first determining the covered costs per kwh, subtracting 8.5 cents per kwh from this cost, and finally multiplying this result by 0.95. The consumer pays the remaining amount of the actual cost. The PCE rate which is established for each rate category applies only to the first 750 kwh per month of consumption for each customer. For community facilities, PCE is applied to the first 70 kwh per month per resident. To be eligible for PCE, a utility must: ¢ provide the information required for the APUC to certify the rates and amount of subsidy; have residential consumption of less than 7,500 *mwh (or 15,000 mwh if serving two or more communities) during calendar year 1983 and each year thereafter; ¢ use diesel-fired generators to provide more than 75 percent of its electrical generation during calendar year 1984 and thereafter have had at least 25 percent of its customers petition for PCE if the utility itself has not voluntarily requested PCE support. As of September 1986, PCE has been provided to 165 rural communities. The rate of subsidy is from 2.99 cents per kwh in Pelican to as high as 41.8 cents per kwh in Allakaket, Nikolai and others. A total of 28 regulated and 69 unregulated utilities are participating in the PCE program. In order to participate in the program, the utility must complete the necessary forms and supply specific cost information on its operation. Information requested includes costs for personnel, oil and oil filters, emergency repairs, accounting and fuel, as well as total kwh generated and sold to customers. Basically, these are all the costs associated with providing electricity to the community. A worksheet showing how one village calculated the PCE rate is shown on page 33. Application forms are submitted to the Alaska Public Utilities Commission. After approval is granted, monthly and annual reports are submitted to the Alaska Power Authority. *mwh = megawatt hour. 1 megawatt hour = 1,000 kilowatt hours = 1,000,000 watt hours RUNNING YOUR ELECTRICAL UTILITY 33 This worksheet gives you an indication of the type of information you should be able to collect and provide to the APUC for participation in the Power Cost Equalization program. The form you will be required to fill out, however, is more detailed. PCE Cost Information Stevens Vilage Energy Systm Bwer Prantd sialic oT (Mepis % Whe /es (le pron'ths) Maintenance: Total Expenses WS, 290.00 F$%.97 423.13 Emergency Repairs ... Bookkeeping and Billing: Bookkeeper —~-—+$—+$—+——————————— Accounting and Billing Supplier _ Non Fuel Total _ _ Fuel: 220, 728 gals #1 diesel Gee! x $/5/ per gala B30 ,393 28 Grand Total Total kwh sold: 7%, 857 kwh Cost per kwh: B00, 40%.of _ _ 92 FS7 kwh ~ 60.55 cen’s per kwh Day-to-day operations The daily operation of the utility to ensure reliable power to the community should be fairly routine. Someone within the community should be responsible for the overall operation of the utility. Daily operation should be divided into three areas: ¢ administration © operation © maintenance Administration involves the personnel, accounting, ordering supplies, record keeping, billings, collections, training and so on. Ensuring compliance with local, state, and federal laws also comes under administration. Operation involves monitoring and maintaining the generator(s), switchgear, and related fuel system in order to meet the community’s electrical demand at all times. 34. RUNNING YOUR ELECTRICAL UTILITY Maintenance can be broken into two areas: maintenance of the building (power plant) itself and maintenance of the electrical distribution system. Maintenance of the building and the utility property is just like taking care of your home, school, or other building. The building itself should be kept in good condition so that everything in it will be properly protected from the weather. The interior of the building also should be properly maintained to provide clean, safe working conditions. For more help. . . For additional information or technical assistance on running your electrical utility, contact the Alaska Power Authority, Alaska Public Utility Commission or the Alaska Department of Community and Regional Affairs (see Appendix I, Directory of helping agencies). COMMUNITY ELECTRICAL CONSERVATION PROGRAMS — 35 Chapter 7: Community electrical conservation programs How do you start a community energy conservation program? Community leadership is the key to beginning an energy conservation program. Local government leaders must involve citizens at the beginning stages of a community energy conservation program. One of the best ways to do this is to get community organizations to cooperate in developing and carrying out this program. How do you convince people that conserving energy is worthwhile? Community leaders need to educate and motivate citizens to understand what conservation can do for them personally and for the community. Here is a list of facts that can be used to help people understand the importance of energy conservation: © Conservation is the cheapest “energy.” Based on national energy use habits, about half of the energy Americans use is wasted. Lights are left on when no one is ina room; television and radios blare in empty houses, refrigerator doors are held open while electrically-cooled air is allowed to escape. Conservation is not actually a source of energy. It can, however, save a family and community many dollars. © Most of the money spent on energy goes outside your community. By conserving energy, more money is available for families to buy other goods and services, and more dollars stay in town. 85* of every dollar Spent on electricity goes 36 COMMUNITY ELECTRICAL CONSERVATION PROGRAMS ¢ Energy costs will rise. Freight rates, fuel rates, and equipment costs will continue to push up prices. And the state Power Cost Equalization Program, which now helps keep rural electrical rates down, could sometime in the future be discontinued by the legislature. Conserving energy now will save money today and will save even more in the future when costs rise and if the Equalization Program is discontinued. ¢ If your community is reaching the power capacity of your generators, conservation could bring energy use down far enough so you could avoid upgrading your generating equipment. ¢ The practice of energy conservation is a good way to teach children in your community to be responsible and thrifty and not to be wasteful. These habits could carry over into other areas of everyday living, such as saving money for something they really want or need, rather than spending it as soon as it is in their pockets. What kinds of energy conservation programs could a community adopt? Information programs Contact other nearby communities and arrange a joint meeting of community leaders in one of the communities. At this meeting, each community could share information about its local power situation and gather ideas from other villages. In order to conserve, leaders of communities may want to discuss joint purchases of fuel, sharing transportation costs or other ways to help each other to conserve more effectively than would be possible by one community alone. New standards for construction One way to encourage energy conservation is for communities to adopt the state's new energy-saving standards. The Alaska Energy Conservation Standard for New Residential Buildings was recently adopted by the state. This new standard sets the amount of insulation needed in a new house for the walls, roof, floor, windows and doors. It also has requirements and suggestions for other energy-saving practices to be followed when building a new home. This standard will be required of all housing constructed with state financial assistance after January 1, 1988. Low-income weatherization Participating in the low-income weatherization program will allow low-income families to upgrade their existing homes. Eligible weatherization measures include insulating, caulk- ing, weatherstripping, replacing windows, installing storm windows, thermal doors and vapor barriers, and modifying heating systems. Energy-efficient appliances In the last few years, manufacturers of electrical appliances and light bulbs have introduced new energy efficient products to the public. Promoting their use will help conserve energy. COMMUNITY ELECTRICAL CONSERVATION PROGRAMS For example, there are light bulbs available which use only 25 percent of the electricity that a standard incandescent light bulb would use. These new light bulbs and fluorescent light bulbs can be used in the same light sockets as standard light bulbs. They distribute the same amount of light and last ten times longer. Although they generally cost more, the energy savings they achieve will more than pay for the added cost. Appliances such as refrigerators and freezers are being manufactured to use less energy than those made in the past. The new appliances sometimes use 50 percent less electricity. Again, these more energy-efficient appliances will cost more. But the energy savings outweigh the additional cost, especially since these appliances are probably the biggest electrical users in a person’s home. Energy information officer Appointing an energy information officer could help the community focus its energy conservation efforts. This person would be in charge of the conservation program and would be available to answer questions about conservation. Energy library Creating an energy section in your library would give community residents a place to find information on how to save money by using less energy. All publications received from agencies and companies could be placed in the library. Books are available that go into great detail, explaining step by step what can be done to save energy. Many provide plans and set out do-it-yourself procedures for changing things in the home and in large buildings to make them more energy efficient. Contact agencies and companies and request a list of available books. The Department of Community and Regional Affairs, Office of Energy Programs makes available to communities a large library of material. Energy fair An energy fair could be used to promote energy efficiency and to display energy efficient devices. A good time to hold one is in October, during National Energy Awareness Month. This is generally when people are preparing for winter and when they should be encouraged to make their homes warmer for the colder months ahead. For additional information, contact the Office of Energy Programs, Energy Extension Service. Education programs Contact agencies that specialize in energy matters. Request that persons who are knowledgeable in energy conservation visit the community to hold a workshop. The workshop can be held as a community meeting of all citizens. Contact the Energy Extension Service about energy education programs (see Appendix I, Directory of helping agencies). Check to see whether your local schools teach energy conservation. If you find that they do not, explain that the community has adopted an energy conservation program and ask that teachers obtain lesson plans to teach students energy conservation and its importance. 37 38 COMMUNITY ELECTRICAL CONSERVATION PROGRAMS Electric Appliance Consumptions — One Time Use Average Watts COOKING Oven conventional 3500 self-cleaning 4000 self-clean use 4000 Range top 6” element 1600 8” element Bs 2100 Microwave 650 Slow cooker 75 Toaster oven 1200 Coffee maker 1650 Toaster 1100 Blender oe = 350 KITCHEN CLEANUP if ey , iE Dishwasher (inc. hot water) ts WR 1200 Trash compactor 1 ee ALT 400 Food disposer eR 400 FOOD PRESERVATION Freezer (15 cu. ft.) frost-free 4400 conventional 340 Refrigerator (14-16 cu. ft.) frost-free 615 conventional 325 LAUNDRY Washer (motor & water) hot wash/warm rinse 500 hot wash/cold rinse 500 warm wash/warm rinse 500 warm wash/cold rinse 500 cold wash/cold rinse 500 Clothes dryer 5000 Iron 1200 WATER AND LIGHT Water heater (all uses) standard 4500 with R-11 wrap 4500 Lighting incandescent 100 fluorescent 40 ENTERTAINMENT Radio 60 Phonograph 120 TV (solid state) black/white 50 color 100 *The cost per KWH, for the calculations here, is .12. It is the average of all the rates on the rate sheet. Amount of Use 1hr. 1hr. 1 clean 15 min. 15 min. 20 min. 8 hrs. 1hr. 1 pot 3 min. 3 min. 1 load 1 load 5 min. 24 hrs. 24 hrs. 24 hrs. 24 hrs. 1 load 1 load 1 load 1 load 1 load 45 min. 1 hr. 24 hrs. 24 hrs. 1 hr. 1 hr. lhr. 1hr. 1hr. hr. *One Time Operating Cost -06 ell -50 .04 .06 .02 -08 .08 -02 01 (negligible) -50 (negligible) 04 -60 -40 62 -38 1.28 5 -87 -50 -04 -50 09 01 02 -01 02 COMMUNITY ELECTRICAL CONSERVATION PROGRAMS Average Amount Watts of Use HEAT Small portable heater 1200 Lhr. HEALTH AND BEAUTY HAIR DRYER Hair dryer 1200 15 min. Curlers 400 30 min. Heating pad 65 1 hr. Blanket 190 8 hrs Water bed | no thermostat 400 with thermostat 370 4 _ MISCELLANEOUS Sewing machine 100 Lhr. Vacuum cleaners 630 Lhr. Clock 2 24 hrs. *The cost per KWH, for the calculations here, is .12. It is the average of all the rates on the rate sheet. Source: Alaska Energy Education Series — Efficient Uses of Electricity, October 1984 Community projects First, the utility itself should be sure it is doing all it can to promote energy efficiency. How? By buying properly-sized generators, by setting up effective maintenance and operation plans, by buying fuel in bulk and by recovering waste heat. Either the local government or a community organization may sponsor an energy conservation poster contest. The contest may be limited to children or divided into different age groups, including adults. The posters can be displayed in various buildings within the community. Prizes can be awarded for the most original and practical way of conserving energy. A contest can be conducted to create a local energy conservation mascot and slogan, much like the owl and slogan, “Give a hoot, don't pollute.” A good way to get energy conservation results in a short period of time might include conducting a contest during a one- or two-month period to see which household could decrease its electric bill or fuel consumption the most. Some rules would need to be set. For example, contestants would need to prove they were home during the contest period. The city of St. Paul conducted a successful, inexpensive contest recently. These are only a few suggestions for a community that wants to adopt a community energy conservation program. The program does not cost the community any money, but it can save a lot. *One Time Operating Cost 14 -04 -03 -02 -09 1.20 62 -01 -08 -01 39 40 COMMUNITY ELECTRICAL CONSERVATION PROGRAMS For more help... For additional information or technical assistance about energy conservation programs, contact the Alaska Department of Community and Regional Affairs, Office of Energy Programs; Rural Alaska Community Action Program; or the Cooperative Extension Service (see Appendix I, Directory of helping agencies). APPENDIXI 41 Appendix I: Directory of helping agencies Alaska Department of Commerce and Economic Development (state agency) Alaska Power Authority (APA) P.O. Box 190869, Anchorage, Alaska 99510-0869. (907) 561-7877 Alaska Electric Power Statistics - Updated by APA onan annual basis, this report summarizes electric generation information throughout the state. Power Cost Equalization Program — This program subsidizes rural utilities by lowering power rates for local utility customers. Customers in turn are billed the lower power rates. Power Development Fund — APA provides funds for the construction of projects (identified in reconnaissance and feasibility studies) that are approved by the legislature. The projects are owned by the state and the resulting power rates are determined by APA or the Alaska Public Utilities Commission. Power Project Loan Fund — This program provides loans to communities and utilities for electric power project development and potable water supply development. The community, after construction of the project, has to repay the loan, typically at municipal interest rates. Rural Electrification Revolving Loan Fund — The purpose of this revolving loan fund is to finance the extension of existing electric service to three or more new customers. Rural Technical Assistance — APA provides assistance to communities in response to requests by letter. Assistance includes: needs assessment, electrical system design, waste heat system design, equipment specifications and bid document preparation, construction management of locally-built projects, equipment purchasing and other help as needed. Alaska Public Utilities Commission (APUC) 429 L Street, Suite 100, Anchorage, Alaska 99501. (907) 276-6222 Regulation, Certification, Rate Approval, Hearings — The commission is responsible for all public utilities, except municipal utilities, across the state. It also assists utilities on management and financial matters, along with certifying utilities. Also, APUC provides information on the Public Utilities Regulatory Policy Act (PURPA) and regulations on cogeneration and small power production. Division of Investments 3601 C Street, Suite 740, Anchorage, Alaska 99503. (907) 562-3779 Bulk Fuel Revolving Loan Fund — This loan fund assists communities in the purchase of fuel oil in bulk quantities. 42 APPENDIX I Department of Community and Regional Affairs (state agency) Division of Community Development (DCD), Block Grant Administrator P.O. Box B.C., Juneau, Alaska 99811. (907) 465-4890 Community Development Block Grants — The Division operates this federally-funded program to meet the special capital project and planning needs (including energy-related projects) of Alaskan communities. Community Services Block Grants — The division administers the federally-funded block grants through the nonprofit mandated agencies of RurAL CAP and SEACAP. The purpose of the block grants is to reduce and prevent poverty through community education, advocacy and service delivery activities. Office of Energy Programs 949 E. 36th Avenue, Suite 403, Anchorage, Alaska 99508. (907) 563-1955 Low Income Weatherization Program — This is a combined federal and state program to assist low-income households to purchase and install energy conservation materials for improving the energy efficiency of their homes. Institutional Building Conservation Program — This program assists schools and hospitals to improve the energy efficiency of their buildings by offering technical analysis and energy conservation improvements. Energy Extension Service — This is a joint federal and state effort to provide energy information, education and technical assistance to all Alaska residents. State Energy Conservation Program — This federal-funded program is directed by the division as an ongoing effort to implement energy conservation programs. Its main emphasis is on establishing thermal and lighting standards of privately-owned buildings. Municipal and Regional Assistance Division 949 E. 36th Avenue, Suite 404, Anchorage, Alaska 99508. (907) 561-8586 Rural Development Assistance Grants — The division administers a grant program to rural communities for projects (energy included) that will increase employment or promote economic development. Alaska Department of Environmental Conservation (DEC) (state agency) PO. Box O, Juneau, Alaska 99811. (907) 465-2653 Waste Oil Utilization — The DEC provides technical assistance to rural communities interested in waste oil recovery programs. DEC also can assist communities in setting up collection networks and selecting waste oil-fired boilers. Alaska Department of Health & Social Services (DHSS) (state agency) Division of Public Assistance P.O. Box H-07, Juneau, Alaska 99811, (907) 465-3058, or 500 Gambell Street, Anchorage, Alaska 99501. (907) 274-6524 or (907) 338-2433. Energy Assistance Program — This federally-funded program distributes funds to help low-income families pay heating bills. Alaska Department of Military Affairs (state agency) Emergency Response Program 3601 C Street, Suite 620, Anchorage, Alaska 99503. (907) 266-1370 Emergency Response Program — In an emergency situation, the department will implement and coordinate state disaster relief activities, including fuel supplies. APPENDIXI 43 Alaska Department of Natural Resources (DNR) (state agency) Division of Mining and Geology PO. Box 7016, Anchorage, Alaska 99510. (907) 561-2020 Resource Inventory and Mapping Program — This program will systematically evaluate and map the state’s resources to provide the public, state, and local governments with information concerning their resources. This evaluation also will analyze the geological hazards and engineering geology conditions of the state. Alaska Office of the Governor (state agency) PO. Box A, Juneau, Alaska 99811. (907) 485-3500 Fuel Contingency Fund — Provides funds to the community for emergency fuel purchases and power outages due to catastrophes. American Public Power Association (nonprofit organization) Publications Department 2301 M Street, NW, Washington, D.C. (202) 775-8300 Provides information on operating a utility “with the customer in mind.” Cooperative Extension Service (See listing under U.S. Department of Agriculture) Electrical Power Research Institute (EPRI) (nonprofit organization) Communications Division P.O. Box 10412, Palo Alto, California 94303 This organization carries out research for improving electric power production, distribution and utilization. The range of its work includes fossil and nuclear power plants, transmission and distribution technology, new forms of clean fuels, new energy sources such as solar and fusion, energy resources and environmental problems connected with electric power technology. National Consumer Cooperative Bank Region VIII (nonprofit) Market Place North Building, Room 150 2001 Western Avenue, Seattle, Washington 98121. (206) 243-4115 The Bank Fund — This bank offers loans to existing co-ops which have a sound financial and organizational structure. Co-ops that borrow from this fund become stockholders in the bank. Development Corporation — The bank makes loans and repayable equity advances to cooperatives with a low- income membership and no financial history and/or other high-risk factors. Technical Assistance — The bank will provide co-ops with assistance in management, organizational structure, financial planning, marketing and accounting. 44 APPENDIX I Rural Alaska Community Action Program (RurAL CAP) (nonprofit organization) 327 Eagle Street, Anchorage, Alaska 99501. (907) 279-2511 Rural Weatherization Program — RurAL CAP assists low-income households to weatherize their homes. These federal funds are distributed through the Division of Community Development, Department of Community and Regional Affairs. Advocacy Program — RurAL CAP advocacy program has four parts: 1) legislative and regulatory advocacy for rural communities; 2) research on rural energy problems and issues and rural community energy education; 3) energy planning; and 4) technical energy assistance. These advocacy program funds are Community Service Grants that are distributed through the Division of Community Development, Department of Community and Regional Affairs. SEACAP (nonprofit organization) PO. Box 449, Juneau, Alaska 99802. (907) 586-1990 Same programs as RurAL CAP. SEACAP assists the rural communities south of Yakutat in Southeast Alaska. All of the energy programs listed with the RurAL CAP are also operated or implemented by SEACAP. Tanana Chiefs Conference, Inc. (nonprofit Native organization) 201 First Avenue, Doyon Building, Fairbanks, Alaska 99701. (907) 452-8251 Tanana Chiefs Energy/Water Resource Programs — The Tanana Chiefs Conference has several energy programs available to its 43 villages in the Doyon Region. These programs include audit work, technical energy assistance, water appropriation and water permitting, bulk fuel storage program, waste heat recovery projects and various village electrification projects. University of Alaska (state university) Arctic Environmental Information and Data Center (AEIDC) 701 A Street, Anchorage, Alaska 99501, (907) 279-4523 Energy Research and Information Gathering — The AEIDC researches and collects information on the social and economic impacts of energy. The information is available to the Cooperative Extension Service, state agencies, nonprofit organizations, local governments and the general public. U.S. Department of Agriculture (federal agency) 14th and Independence Avenues, Washington, D.C. 20250 REA Operations Field Office, (907) 345-5329 (Anchorage) REA Assistance Program — REA makes loans or loan guarantees to nonprofit and cooperative associations, public bodies, and other electric utilities. These loans finance the construction and operation of electric generation, transmission and distribution lines to provide rural electric services. Energy Resource Conservation Program — Section 121 — REA is permitted to delay repayment of the principle on existing loans to electrical cooperatives who then make loans to their customers to finance energy conservation measures. Cooperative Extension Service (federal, state and local agency) University of Alaska-Fairbanks, 403 Salcha, Fairbanks, Alaska 99775. (907) 474-7201 2221 E. Northern Lights Blvd., Suite 240, Anchorage, Alaska 99508. (907) 279-5582 The Cooperative Extension Service is a joint federal, state and local effort to provide energy education, literature and technical services to the residents of Alaska. Extension field offices are located throughout the state. Also, extension agents are available to travel to rural communities to give technical assistance. U.S. Department of Energy (federal agency) PO. Box 2525, Butte, Montana 59702-2525. 800-428-2525 (toll-free number 7 a.m. to 4 p.m. Alaska time) National Appropriate Technology Assistance Service (NATAS) — provides general information, engineering and scientific technical assistance concerning energy-related appropriate technologies. U.S. Department of Housing and Urban Development (HUD) (federal agency) Community Planning and Development Division 701 C Street, Box 64, Anchorage, Alaska 99513. (907) 271-4183 Community Development Block Grant Program — These federal grants are awarded directly to local government units or Alaska Native Tribal Councils to meet the needs (including energy needs) of the community. Housing Division 701 C Street, Box 64, Anchorage, Alaska 99503. (907) 271-4183 HUD.-FHA Insured Mortgage Program — This agency allows homeowners who have HUD-FHA mortgages to increase their mortgage amount up to 20 percent of the prevailing local limit to cover the cost of solar or wind energy improvements. HUD homeowners are urged to compare HUD-FHA mortgage rates with those of other loan programs (which are likely to have better rates). Farmers Home Administration (FHA) P.O. Box 819, Palmer, Alaska 99645. (907) 745-4273 Home Improvement and Repair Program — FHA provides loans and grants to assist rural residents in home repair and weatherization. Homeowners must be 62 years or older and unable to pay for repairs on their homes. U.S. Department of Treasury (federal agency) Internal Revenue Service, Box 1500, Anchorage, Alaska 99510 (907) 276-1040. (Outside Anchorage, Zenith 3700) Residential Energy Conservation & Renewable Resource Tax Credit — Individuals are allowed tax credit of 15 percent of the first $2,000 spent on items to conserve energy. The renewable resource tax credit is 40 percent of th first $10,000 spent on solar-, geothermal- or wind-powered equipment. These credits apply only to the principal residence of the homeowner. APPENDIX I 45 Appendix II: Other publications to explore American Public Power Association, Publications Department, 2301 M Street, N.W., Washington, D.C. 20037, (202) 775-8300. © Safety Manual for an Electric Utility © Model City Charter Provisions for a Department of Public Utilities © Retail Rate Design for Publicly Owned Electric Systems For a complete list of publications, write to the above address for a catalog. U.S. Department of Agriculture, Rural Electrification Administration, ASD-SSMS, Room 0186-South Building, 14th and Independence Avenue, S.W., Washington, D.C. 20250. ¢ REA Bulletin No. 43-5, “List of Materials Acceptable for Use on Systems of REA Electrification Borrowers,” price $20. ¢ REA Bulletin No. 50-3, “Specifications and Drawings for 12.5/7.2-kv Line Construction,” price $5. ¢ REA Bulletin No. 160.2, “Mechanical Design Manual for Overhead Distribution Lines,” price $7. For a complete list of publications, write to the above address for the current index of REA Electric Publications. Western Area Power Administration, PO. Box 3402, Attn: A1100, Golden, Colorado 80401. © Power System Safety Manual The Department of Community and Regional Affairs, Office of Energy Programs, maintains an energy library which has reference materials available on electrification systems and energy efficient construction, including Energy for Alaskans — A Resource Directory. APPENDIX II 47 APPENDIX III 49 Appendix ITI: Sample Energy Needs Assessment form 1. Type of Building: RESIDENTIAL COMMERCIAL OFFICE SCHOOL INDUSTRIAL OTHER 2. Location of Building: 3. What type of energy is currently available at this building and how much is used annually: A. Oil Gallons B. Propane Gallons or pounds G: Wood Cords D. Electric KWH ___ E. Other What is it? How much? 4. For each of the energy sources checked above, how much does each one cost annually and what is it used for? A. $. per year; B. $ per year; C. $. per year; D. $ per year; E. $ per year; 5. Of the energy sources listed in question 3 which is not currently available, would you like to have available and to do what? 50 APPENDIX III 6. Are there any types of energy sources not listed in question 3 which should be considered and for what purpose? 10. HL, 12; Are you aware of any new buildings or businesses which are being planned or considered for our community? No Yes Do you know who we can contact for detailed information? Name: Address: Phone: . Are you aware of any potential change in your energy consumption? No Yes Which type of energy will be affected and what type of change do you think will happen? If you have electricity, how is it provided? Personal Generator Private If you have your own generator: BOOMS What type is it? Utility Community Utility What size unit? KW What type of fuel does it use? Diesel Do you provide electricity to others? How many hours do you run it per day? U1 No Gas Yes Do you use it each day throughout the year? If no, describe the periods when you use your generator: No Yes What type of electrical appliances and equipment do you use? If you do not currently have electricity available, are you interested in having electricity available? No Yes. If your answer is yes, would you prefer a Privately owned utility or a Community owned utility APPENDIX III 13. What type of electrical appliances and equipment do you think you would use if electricity were available? 14. Is there anything else that you would use electricity for? 15. Do you think that outside area lighting should be provided? No Yes 16. Would you be willing to be a member of an energy advisory committee? No Yes; please give your: Name: Address: Phone: Thank you for your time and comments. Feel free to attach additional sheets of paper, if necessary, to provide complete information. 51 APPENDIXIV 53 Appendix IV: Model Electric Utility Ordinance This model electric utility ordinance applies to a community-owned and -operated utility. AN ORDINANCE CREATING RULES AND REGULATIONS FOR FURNISHING CITY ELECTRICITY AND SETTING RATES AND CHARGES FOR THE CITY OF WHEREAS, it is necessary to set rules and regulations in order to provide electrical services to all citizens of the city of ; and WHEREAS, it is necessary to set rates for electricity and rules for the collection of revenues for this service; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF SECTION 1. NATIONAL ELECTRICAL CODES ADOPTED. a. The 19_____ editions of the NATIONAL ELECTRICAL CODE and NATIONAL ELECTRICAL SAFETY CODE are hereby adopted as the minimum standards for the installation of all electric wiring, devices, and equipment in the city, except as otherwise specifically provided in this ordinance, and are hereby made a part of this ordinance as fully and to the same extent as if copied herein in full. b. In the event of any conflict between this ordinance and state law and the provisions of the NATIONAL ELECTRICAL CODE and NATIONAL ELECTRICAL SAFETY CODE, the provisions of this ordinance or state law shall prevail. SECTION 2. APPLICATION FOR SERVICE Written application for electrical service shall be made to the city upon forms furnished by the city. The application shall state the name and the address of the applicant and such other information as the city may request. SECTION 3. UTILITY DEPOSIT a. Along with the application for electrical service, the applicant shall pay the city a deposit in the amount of $, b. Any deposit made to the city by any applicant is held by the city until the applicant’s utility service is terminated. Upon termination of service, the applicant shall be entitled to a refund of the deposit plus interest, as established by the city council. SECTION 4. CONNECTION SERVICE The city shall install and maintain all service connections from the main electrical lines to the customer’s meter, and it shall be unlawful for any other person or persons to repair or renew service from the main electrical lines to the meter. SECTION 5. METERING Meters shall be required to measure the consumption of each utility service furnished by the city. a. All meters connected with the city’s electrical system shall remain under the direct control of the city. b. It shall be unlawful for any person other than those authorized by the city to connect, disconnect, move or tamper with any meter. SECTION 6. RATES AND CHARGES FOR SERVICE The city council shall fix and approve the rates charged by the electrical utility. It shall be unlawful for any city officer or employee to assess or charge for services rendered at any rate other than the rate so fixed and approved. Rates for electricity are as follows: Private homes Commercial buildings 54 APPENDIX IV SECTION 7. DISCONNECTION OF SERVICE a. Inthe event that any consumer of utility service furnished by the city does not pay the rates and charges on the due date, the city shall have the authority to disconnect or terminate, or cause to be disconnected or terminated, electrical service furnished to a consumer. b. Any consumer of utility service furnished by the city whose utility services have been disconnected or terminated for nonpayment of the rates and charges owed may have utility services resumed by paying all rates, charges and penalties due the city by the consumer and, in addition, a reconnection fee of SECTION 8. MAINTENANCE OF THE ELECTRICAL SYSTEM The city shall constantly inspect all parts of the electrical system and maintain it in good condition, and shall keep in good repair at all times for constant service all electrical lines, transformers, machinery and all other electrical fixtures and property. SECTION 9. EXTENSION OF SERVICE TO OTHER PREMISES After electricity is introduced into a building or upon any premises, the same shall not be extended by an electrician or other person to any other premises for additional fixtures without the written permission of the city. SECTION 10. DEFACING, BREAKING INTO OR TAMPERING WITH ELECTRICAL UTILITY PROPERTY a. It shall be unlawful for any person in any manner to deface the buildings, walls, machinery or fixtures connected with or pertaining to the city electrical system. b. It shall be unlawful for any person to break, damage or tamper with any part of the electrical system of the city for any purpose whatsoever, or in any manner to intentionally interfere with or prevent the running and operation of the system. SECTION 11. LIABILITY OF CITY FOR DAMAGES The city shall not be liable for any damage to property of any consumer of any electrical utility service furnished by the city, except when such damage is due to the negligence of the city. SECTION 12. PENALTY Any person or persons violating any provision of this ordinance shall be deemed guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not more than $_________. Each action in violation of any of the provisions set forth shall be deemed a separate offense. APPENDIX V_ 55 Appendix V: Safety Electric Shock An electric circuit is a path through which electric current flows. When a person’s body becomes part of a circuit, current will flow through their body. This current may: ¢ Knock the person unconscious. © Give the person a bad burn. © Stop the person’s breathing. © Stop the person’s heart. Safety precautions Electricity cannot be seen, smelled or heard, so it is impossible to tell whether a wire has one volt running through it, 1,000 volts, or no voltage at all. You should treat every electric wire as if it were dangerous. Before approaching any electric wire, first study the whole electric system to see how this particular wire is connected and, if possible, measure the voltage and current in the wire with a voltmeter and an ammeter. The following “do's” and “don'ts” if carefully observed, should prevent accidents: ¢ Always disconnect the electric wire from the source of current and voltage before working on it. ¢ Always use a test light, a voltmeter, or an ammeter to determine whether the line has a voltage in it and how much the voltage is. ¢ Always wear dry gloves when approaching any electric wire. ¢ Always pull the disconnected end of an electric wire well away from the source of current to create an air gap. ¢ Never touch an electric wire when your feet are in water or on wet ground. Never let one of the three wires in a three-phase circuit touch the ground or touch one of the other wires. This sort of contact will create an electric arc and intense heat. ¢ Neverwork ona line which has more than 250 volts running through it from line-to-ground or from phase- to-phase. Never replace a fuse without disconnecting all appliances and motors connected to the line. © Never use metal tools or wear metal jewelry (rings, I.D. bracelets, etc.) around electric wires. Always use tools with wooden, plastic, or insulated hand grips. 56 APPENDIX V Rescue and first aid techniques Rescue When someone touches a “live” wire and becomes part of an electrical circuit, the victim first must be rescued, or freed from any contact with the “live wire.” He must then be promptly treated with first aid. But be very carefullest you be shocked, too. Never approach or touch the victim unless you are positive he is not in contact with the electric current. Be especially careful if he is lying in a puddle of water or on wet ground. Always pull or push the victim free of the “live wire” or wet ground with a dry nonconductor, such as wooden board, a rope, clothing, or lineman’s rubber gloves. Never try to pull the victim free of the “live wire” or wet ground with your bare hands, a piece of metal, or anything wet. If the victim has been suffocated by gas, smoke or fumes, move him into fresh air before beginning first aid. First aid Once the victim is free of the “live wire,” look at his eyes to see if the pupils are dilated, and check his pulse at either the wrist or neck. If the pupils are dilated or enlarged and there is no heartbeat, begin closed chest heart massage immediately. Check the victim’s breathing. If the breathing has stopped, start mouth-to-mouth vescue breathing at once. Do not delay, do not stop to call for help, have someone else call a doctor. If someone else is nearby, use him or her. Tell them to: © Call a doctor, nurse or health aide. © Loosen the victim’s clothing. © Cover the victim to keep him/her warm and comfortable. Continue rescue breathing until natural breathing starts again, but stay with the victim. Breathing may stop again and rescue breathing should be started once again. Do not stop the rescue breathing if natural breathing does not begin again. Keep it up until the victim is pronounced dead by a health professional (and the American Red Cross recommends three checks for death by a health professional at 10-minute intervals) or until rigor mortis sets in. Keep the victim lying down and well covered. Keep him or her warm and quiet until a doctor advises that he/she may move, sit or stand. Grounding Grounding means connecting a wire or piece of equipment to the earth. This is done by connecting the wire, or equipment to be grounded, to a copper rod that has been driven at least eight feet into the earth. Generally, the earth is an adequate conductor and current will flow through it. Electrical systems are grounded to prevent the dangers of electrical shock and fire e All electrical systems should have one grounded wire. e All equipment cases and covers should be grounded. ¢ All pipes, structural steel, and other conductive paths should be grounded. ¢ All of these must be connected together or grounded to the same place. When short circuits occur, or when a device is connected from an energized wire to the ground, the grounding wire provides a means of completing the path for the current. This completed path will allow excessive current to flow which will blow one of the fuses, thus removing the current and the danger. The grounded wire of the system must never be fused, for if this fuse should blow, the entire system would no longer be grounded, and considerable danger could be present. Distribution systems should be connected to a grounding electrode every 300 feet to maintain an adequate “ground.” Generating equipment, like all other equipment, must be grounded. APPENDIX VI 57 Appendix VI: Maintaining and operating your electrical system Guidelines for proper maintenance Just as you need a plan for deciding what to build, you'll need a plan for making sure your electrical system is properly taken care of. The Alaska Power Authority or your electrical engineer can help you with these steps. 1. Prepare a schedule of preventive maintenance procedures necessary to insure an efficient system. In the schedule, identify: procedure, frequency, tools and/or materials required, steps to follow, precautions to be taken. Establish rules/procedures for locating and correcting faults in the distribution system. Prepare an operation manual for instructing workers in these procedures. Identify workers to be responsible for various maintenance functions. Soha Train workers to carry out their assigned tasks properly. 6. Decide where to house maintenance tools and replacement parts. Troubleshooting Things can go wrong with an electrical system just as they can with an automobile or snowmobile. Therefore, to keep the electrical system operating after the installation is completed, you must be able to troubleshoot. Troubleshooting means figuring out why the system is not operating as it should be. The problem could be very obvious, such as a break in one of the distribution lines, or it could be not so obvious, such as a worn out generator part or a malfunctioning circuit breaker. Troubleshooting has three basic parts: 1. Recognize the existence of trouble. 2. Determine the type and location of the trouble. 3. Correct the trouble. Precautions Always observe the safety rules. Never work ona hot system! Study and memorize the nine safety rules in Appendix V: Safety, before you start to troubleshoot any electrical difficulty. Also, carry with you a sketch of the system with the voltages and currents in each line clearly indicated. You should always know, not guess how much voltage and current is flowing, or should be flowing in a wire before you approach it. Get into the habit of saying to yourself, “This wire should have (how many) volts running in it.” 58 APPENDIX VI TRANSFORNERS: Look for... O Washout ot qround line. i oO Oil leaks. [1] Rotting ot qreund line. Scrape away Bi C1 Is the transformer the earth from around the pole at : grounded? the ground line to a depth of Zor 3 Al in¢hes. Use & short crowbar or hand : TL] Make a mechanical spike to determine depth to which EA Seliting and twisting inspection of all fot has penetrated, Ay (esp : i on pee omer Be ouble arms. © ‘Wanstormer C1 ah eSeeed the body of the pole eases. tanstorier om ee Loose, broken, or secondary wiring, im Splitting. missing pins. and lightning Frost jocking. Loose or missing Oe eter C1 Lightning damage. braces. C1 Splitting or pulling of Quy wires. LI Twisting or raking. Ground wire. (See that this wire is rigidly supported and shat it has “not been cut or injured by linemen's spurs. PE L_ Sed tot the connection between ound wire and around cod has tot been weakerted by corrosion or mechanical injury: C ie me y 1 base of pole. All Close inspection.) Sw grass, Weeds, and other flammable ynaterial should be kept cleared Chipped or broken. Poway from the base of the pole ‘for a distance of two feetto Twiked’ spans. * 1 See that the wire is clear of tree twigs , limbs, strings, etc. [1 Loose connections. L) Deloy necessary brush cutting until the autumn, except where there is dangec of the brush “fouling the lines in the interval. APPENDIX VII 59 Appendix VII: Recognizing trouble What can go wrong? No voltage If the circuit is dead and no current flows there is no voltage. This is usually caused by a blown fuse or circuit breaker, loose connection or broken wire. It also might be a failure of the generator. Fuses keep blowing or circuit breaker will not close This may be caused by an overload, that is, drawing too much current. It may be caused by a short circuit, which is a power wire touching a ground or two power wires in contact. Lights grow dim When the lights grow dim and motors will not start, it usually means that the voltage is lower than it should be. A variety of troubles can cause this problem. There may be a loose connection or an arcing switch. The wiring may be undersized or too long, causing too much voltage drop. Lights burn brightly and burn out quickly This usually means that voltage is too high. Either a generator is not regulated properly or a transformer is improperly connected. Lights flicker, motors run unevenly This may happen when a motor is started. If so it is because the motor draws more current while starting than it does while running. While it is starting the voltage drop is greater, thus causing the flicker. If the flickering continues after the motor has started, the motor may be improperly grounded. Other causes might be loose connections or too small a transformer. Connections get hot This usually means the connection is loose and is thus creating a high resistance. All electrical connections must be very tight and solid. Shocks when touching equipment This indicates that the system has not been properly grounded. Motors run in reverse or will not start This occurs in three-phase circuits and means that one or more phases are not connected (blown fuse, loose connection, broken wire, etc.) and the motor is said to be “single phasing.” Or, it can mean that the connections to the motor have been reversed. 60 APPENDIX VII How do we locate the fault? After realizing that the system is not operating properly you still need to determine the type of fault and where this fault is located. These two tasks are accomplished at the same time. The symptom observed gives clues to the type of trouble, but in most cases different faults could produce the same symptom. For example: What is the cause of no voltage? Isa fuse blown? Is there a broken wire? Is there an open connection? Is there a bad switch, transformer, or other piece of equipment, or is there a generator failure? All of these faults could produce the symptom of no voltage. As you locate the fault you are simultaneously finding out what type of fault is present. A systematic procedure must be used to find the location of the trouble. The design of an electrical system makes this fairly easy. An electrical system is like a tree. From any leaf there is only one stem, one branch, one limb, and one trunk that leads from that leaf to the roots where the energy is received from the soil. Similarly, in an electrical system there is only one branch circuit, one service entrance, one set of secondary lines, one set of distribution lines, and one set of transmission lines that lead from the load to the generator. To locate the fault start from the load that has the symptom and proceed toward the power source. At each convenient point along the system you will need to test to see if the fault exists at that point as well as at the points already checked behind it. When you find a point where the fault does not exist then work back towards the load-testing point until you find the location of the fault. Using test equipment To locate the fault in a system you must test the system for the fault at points successively closer to the power source. The maintenance or utility personnel should obtain proper training and test equipment prior to servicing electrical panels, equipment, distribution system, and any other related portions of the overall electrical system. There are various types of meters readily available which can assist you to safely determine what the cause of the problem is. Proper use of test equipment also will help in the general maintenance of your system. A few of the test meters and what they can be used for are explained in the following paragraphs. Continuity tester The continuity tester can be used to test for short circuits, grounded lines and open lines. Before making any tests disconnect the power from the lines. A continuity tester must only be used on dead lines. If there is a length of cable that you suspect to be shorted between two of the conductors, do the following: First, at the junction box at one end of the section of cable disconnect all the connections. Second, do the same at the other end of the section of cable. Third, connect the tests leads of the tester across two wires at a time. It will respond when connected to the two shorted wires. The test for a grounded line is similar to the test for shorted lines. The only difference is the test is made between one of the open lines and a ground. To test to see if you have an open line, first disconnect all power from the part of the system that is being tested. Second, at one end of the cable being tested, connect all of the wires together ina firm (but temporary) splice. Third, at the other end of the section of cable, connect the continuity tester across two lines at a time. It should respond each time as the circuit is closed at the other end. If it does not respond, then one of the two lines is open. Multimeter (volt, ohm and amp meter) A voltmeter is able to indicate how much voltage is present. An ohmmeter can be used in place of acontinuity tester, but most ohmmeters use only a very small current. On longer lengths of line or when testing a poor ground, they may not be reliable. Whenever you need to know the amount of current or voltage present at a particular point in the system, a meter should be used. It is always safest to disconnect the power when making the connections and then to reconnect the power to take the reading. However, most of these meters can be used while the system is energized as long as safety precautions are followed. APPENDIX VII 61 Correcting the problem When troubleshooting, you are only half done when you have located the trouble. You now know why there is trouble and where it is. But you must ask, “Why?” If a fuse has blown, this is the reason that there is no power. But, you must ask, “Why did the fuse blow?” Ifa wire is broken you must ask, “What caused this wire to break?” Before correcting the obvious fault, these other faults must be corrected so that the same fuse won't blow again, or the wire break again because the cause was not corrected. The specific corrections for various troubles are readily identifiable. If there is a bad connection, the connection should be opened and remade as if it were the first time it was being made. If there is a bad piece of equipment such asa switch or outlet plug, then this should be replaced. If there is a shorted cable this will need to be replaced or the circuit disconnected and not used. In most cases the skills needed to correct a trouble are the same skills needed for installation of that part of the system. APPENDIX VIII Appendix VIII: State of Alaska audit requirements, 2 AAC 45.010 ADMINISTRATION CHAPTER 45. GRANT ADMINISTRATION Section 10. Audit requirements 2 AAC 45.010 AUDIT REQUIREMENTS. (a) As part of the financial information required under AS 37.05.030, a state agency that enters into a financial assistance agreement to provide financial assistance to an entity shall, in coordination with any other state agencies providing financial assistance to that entity, submit to the Department of Administration through the state coordinating agency an audit of the recipient entity if that entity is subject to audit under (b) of this section. The audit must be conducted and submitted as described in this section. In order to ensure compliance with this subsection, the audit requirements of this section must be contained in any financial assistance agreement entered into by a state agency. (b) An entity that enters into a financial assistance agreement, or agreements, with a cumulative total of (1) $300,000 or more during a state fiscal year shall submit to the state coordinating agency, within one year after the end of the audit period, an annual audit report covering the audit period; or (2) at least $100,000 but less than $300,000 during each of two consecutive state fiscal years shall submit to the state coordinating agency (A) a biennial audit report covering the audit period, due within one year after the end of the audit period; or (B) if the recipient entity chooses, or the state requests, an annual report covering the audit period, due within one year after the end of the audit period. (c) An audit required by this section must be conducted by an independent auditor, according to the following audit standards: (1) Standards for Audit of Governmental Organizations, Programs, Activities and Functions, 1981 revision adopted by the comptroller general of the United States; or (2) generally accepted auditing standards, as accepted by the American Institute of Certified Public Accountants on July 1, 1985, for the entity being audited. (d) The audit report required under (b) of this section must address the following: (1) the systems of internal control, and whether the recipient entity has effective control over, and proper accounting for, revenues, expenditures, assets, and liabilities; (2) the systems established to ensure compliance with state statutes and regulations, and applicable financial assistance agreements, affecting the expenditure of state money, and whether the recipient entity has complied with those statutes, regulations, and agreements; (3) the recipient entity’s financial transactions, financial statements, and accounts; whether those financial statements are presented fairly in accordance with generally accepted accounting principles; and whether the financial statements contain reliable financial data presented in accordance with applicable financial assistance agreements. (e) An audit report required under (b) of this section need not evaluate the effectiveness of a program funded by state financial assistance. However, a program evaluation may be conducted or requested by the state agency which entered into the financial assistance agreement. 63 64 APPENDIX VIII (f) An audit required by this section must cover either the entire operations of the recipient entity, or at the option of that entity, only the departments, agencies, or establishments of that entity which received, expended, or otherwise administered state financial assistance during the audit period. The state coordinating agency may consider a series of audits of a recipient entity’s individual departments, agencies, or establishments for the same fiscal year as a single audit. (g) A recipient entity shall provide the state coordinating agency with sufficient copies of each audit report to allow submission of a copy to each state agency providing financial assistance to the entity. The state coordinating agency shall determine if auditing standards have been met and will forward a copy of the audit to the Department of Administration and other appropriate state agencies. The state coordinating agency shall coordinate resolution of audit exceptions and further audit work in accordance with (h) of this section. (h) Unless additional audit requirements are imposed by state or federal law, a state agency that provides financial assistance to an entity shall accept the audit required by this section in satisfaction of any other audit requirement. If additional audit work is necessary to meet the needs of a state agency, the audit work must be based on audit required by this section and be paid for by the state agency. Audit exceptions noted during an audit required by this section must be resolved by agreement between the recipient entity and the state agency responsible for the financial assistance award agreement involved. (i) A third party that receives financial assistance through a recipient entity, in an amount described in (b) of this section, is subject to the applicable requirements of the section. A recipient entity that disburses $100,000 or more in state financial assistance to a third party shall ensure that the third party complies with the requirements of this section. That recipient entity shall also ensure that appropriate corrective action is taken within six months after a state statute or regulation, or financial assistance agreement, is disclosed. (j) This section takes effect on August 1, 1985 for an entity subject to audit under (b)(1) of this section and whose fiscal year ends on or after June 30, 1986. (k) This section takes effect on July 1, 1986 for an entity subject to audit under (b)(2) of this section and whose fiscal year ends on or after June 30, 1987. (1) For purposes of this section, if an entity has not identified its fiscal year, that entity’s fiscal year is July 1 through June 30. (m) For purposes of this section, (1) “audit period” means (A) for an annual audit under (b)(1) of this section, the recipient entity's fiscal year in which the entity entered into the financial assistance agreement or agreements; (B) for a biennial audit under (b)(2)(A) of this section, the recipient entity’s two consecutive fiscal years in which the entity entered into the financial assistance agreement or agreements; (C) for an annual audit under (b)(2)(B) of this section, the recipient entity’s fiscal year in which the entity entered into the financial assistance agreement or agreements; (2) “entity” does not include the University of Alaska or any other state agency; (3) “financial assistance” means state grants, contracts, provider agreements, cooperative agreements, and all forms of state financial assistance to an entity, and includes all forms of state financial assistance provided through an entity to a third party; “financial assistance” does not include public assistance provided under AS 47; nor does “financial assistance” include goods or services purchased for the direct administration of operation of state government; for a third party, “financial assistance” does not include goods purchased from the third party by a recipient entity for the direct administration or operation of the recipient entity; (4) “state coordinating agency” means the Office of Management and Budget (OMB), Office of the Governor, or OMB’s designee. (Eff. 8/1/85, Reg. 95) Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 APPENDIX VIII 65 ZZ F elie Za I. ne We MADE tn ALASKA Printed by the Employment and Training Center of Alaska