HomeMy WebLinkAboutAPPLICATION - TDX Adak REF Round 15 Standard Application Form - Final draftRenewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 1 of 43 10/04/2022
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round 15 of the Renewable Energy Fund (REF). A separate application form is available for
projects with a primary purpose of producing heat (see Request for Applications (RFA) Section
1.5). This is the standard form for all other projects, including projects that will produce heat and
electricity. An electronic version of the RFA and both application forms is available online at:
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2022-
REF-Application.
What follows are some basic information and instructions for this application:
● If you are applying for grants for more than one project, provide separate application forms for
each project.
● Multiple phases (e.g. final design, construction) for the same project may be submitted as one
application.
● If you are applying for grant funding for more than one phase of a project, provide milestones
and grant budget for each phase of the project (see Sections 3.1 and 3.2.2).
● In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 Alaska
Administrative Code (ACC) 107.605(1).
● If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases are
completed and funding for an advanced phase is warranted. Supporting documentation may
include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof
of site control, utility agreements, business and operation plans, power sale agreements,
relevant data sets, and other materials. Please provide a list of supporting documents in
Section 11 of this application and attach the documents to your application.
● If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed. Please provide a
list of additional information; including any web links, in Section 12 of this application and attach
the documents to your application. For guidance on application best practices please refer to
the resource-specific Best Practices Checklists; links to the checklists can be found in the
appendices list at the end of the accompanying REF Round 15 RFA.
● In the Sections below, please enter responses in the spaces provided. You may add additional
rows or space to the form to provide sufficient space for the information, or attach additional
sheets if needed.
● If you need assistance with your application, please contact AEA’s Grants Coordinator by email
at grants@akenergyauthority.org or by phone at (907) 771-3081.
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Grant Application – Standard Form
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REMINDER:
● AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be
subject to disclosure requirements under the act if no statutory exemptions apply.
● All applications received will be posted on the Authority web site after final recommendations
are made to the legislature. Please submit resumes as separate PDFs if the applicant would
like those excluded from the web posting of this application.
● In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by AEA. If you want
information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their application.
o Receive concurrence from the Authority that the information will be kept confidential. If
the Authority determines it is not confidential, it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
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Grant Application – Standard Form
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion.
Name (Name of utility, IPP, local government, or other government entity)
TDX Adak Generating, LLC (TAG)
Tax ID # 26-3779676
Date of last financial statement audit: May 1, 2022
Mailing Address: Physical Address:
3601 C Street, Suite 1000 3601 C Street, Suite 1000
Anchorage, AK 99503 Anchorage, AK 99503
Telephone: Fax: Email:
907-762-8450 907-562-0387 info@tdxpower.com
1.1 Applicant Point of Contact / Grants Coordinator
Name: Title:
John Lyons President
Mailing Address:
3601 C Street, Suite 1000-50
Anchorage, AK 99503
Telephone: Fax: Email:
907-762-8478 907-562-0387 jlyons@tdxpower.com
1.1.1 Applicant Signatory Authority Contact Information
Name: Title:
John Lyons President
Mailing Address:
3601 C Street, Suite 1000-50
Anchorage, AK 99503
Telephone: Fax: Email:
907-762-8478 907-562-0387 jlyons@tdxpower.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Loren Jalbert 208-375-5323 n/a ljalbert@tdxpowerservices.com
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1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements, the application
will be rejected.
1.2.1 Applicant Type
☒ An electric utility holding a certificate of public convenience and necessity under AS 42.05
CPCN #_684_____, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1)
CPCN #______, or
☐ A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
Additional minimum requirements
☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate yes by checking the box)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate yes by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-
Fund/2022-REF-Application (Any exceptions should be clearly noted and submitted with the
application.) (Indicate yes by checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Hydroelectric Power Adak - Feasibility and Conceptual Design
2.2 Project Location
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information, please contact
AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771-
3081.
Latitude 51.843106 Longitude -176.670155
Adak, formerly Adak Station, is located on Adak Island, in the Aleutian Island chain of Alaska. Adak
is 1,200 miles southwest of Anchorage, Alaska. Adak is considered a subpolar oceanic climate,
which has moderate temperatures, high winds, significant precipitation, and frequent cyclonic
storms. Average annual precipitation is 65.6 inches, concentrated in the fall and winter. Snowfall
averages nearly 100 inches per winter season. With 263 rainy days per year, Adak is the second
highest number of rainy days for any inhabited locality in the U.S. after Hilo, Hawaii.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The City of Adak, Alaska will be the beneficiary of the project and benefits will flow to all power
consumers through cost-based rates.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding heat-only)
☒ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☐ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance ☐ Final Design and Permitting
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☒ Feasibility and Conceptual Design ☐ Construction
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Hydroelectric Power Adak – Feasibility and Conceptual Design proposes to complete a
detailed feasibility study on three hydroelectric project options, and dependent on those results, a
conceptual design, and lastly, begin permit consultations for a hydroelectric turbine. The ultimate
goal of this work is to install a hydroelectric power system on Adak which should reduce the
dependence on expensive transported diesel fuel for local power generation. A previous
Reconnaissance report, completed by Hatch in 2013, listed several options for installing a
hydroelectric turbine. This Hatch report identifies two specific options we would like to investigate
further with this detailed feasibility study. Both options utilize the existing water infrastructure
connected to Lake Bonnie Rose (a dam and 10-inch domestic water pipeline). However, this
existing water infrastructure (dam and pipeline) was installed by the military over 60 years ago and
has had little maintenance. Therefore, if the existing infrastructure does not have the integrity to
support a 20-year project, a third option explores the economics and feasibility of installing a new
dam and penstock, potentially also providing water to the city. Based on the existing pipeline
diameter, head, and flow conditions from Lake Bonnie Rose, the estimated power production is 89
kW – 440 kW, which corresponds to 26 -100% of the total community load currently served by
TAG. TAG, the electric utility on Adak, will work with the City of Adak and other stakeholders to
provide lower cost electricity to the island. Hydroelectric Power Adak – Feasibility and
Conceptual Design will ultimately require a detailed engineering design, final permitting, and
construction, which is considered the next phase of this project.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
Adak’s original powerplant was designed and installed when the Island was populated by
the US military, which provided power to 6,000 residents and military sized operations and
equipment. The US miliary left Adak in 1997, resulting in a significant decline in population
and power demand and until 2020, the powerplant remained unchanged. That original
system was grossly oversized and had significant line loss. In 2019, TAG received USDA
High Energy Cost Grant (HECG) funding to downsize and relocate the powerplant and
partially upgrade transmission equipment, upgrades which should reduce the operations
and maintenance costs and the line loss. Currently, the remaining USDA HECG funding
provides over 49% match to this grant application. This new powerplant equipment is in
alignment with the current community demand (population of 180) and is designed to
incorporate renewable energy power systems. This powerplant and transmission line work
should be completed in 2023, which means TAG will be ready to effectively integrate a
hydroelectric power system shortly afterwards.
The feasibility study proposed here will be conducted in alignment with the HATCH
February 2013 and/or McMillen September 2013 reports. This project’s proposed feasibility
study gathers current hydrology, infrastructure status, and load data, and conducts an
economic assessment and energy modeling to investigate three options for hydroelectric
power generation. This economic assessment and energy modeling will determine which
option makes most economic sense, which could entail spending money on an inspection
of the existing water infrastructure that, at a minimum, needs to support a hydroelectric
project for 20 years. Typically, hydroelectric projects have a 50-year project life. However, a
20-year renewable energy project life was selected for this study since the existing dam and
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pipeline have been in operation for over 20 years. If the current physical or projected
conditions of the existing infrastructure (dam or penstock) or estimated repair costs are too
extensive to support a 20-year project, we will investigate the next highest scored option
from the HATCH or the McMillen report for consideration and feasibility.
Option 1 (Option 8 in Hatch report) proposes to install one to three hydro turbines into the
existing 10-inch domestic pipeline (from Lake Bonnie Rose to the City), and the power
generated would be transmitted using TAG’s transmission line to end users. Option 1
configuration is estimated to generate up to 100 kW, which would not produce enough
power to meet the existing community demand but would meaningfully reduce annual
diesel fuel consumption. Option 2 (Option 10 in Hatch report) proposes to extend the
existing 10-inch water pipeline, roughly 2,100 feet, establishing a penstock from Lake
Bonnie Rose to Lake Mitt (the pipeline would tee at the PRV House #1 to continue to
provide the city with domestic water), and installing one to three hydroelectric turbines that
would discharge into Lake Mitt. Option 2 configuration is estimated to generate up to 440
kW, which would produce enough power to meet the community load plus extra. For Option
2, it is already established that the TAG transmission line would need to be extended
several miles to connect power generated to end users. Option 3 will explore economic
costs and feasibility for installing a new dam and penstock for hydroelectric power
generation ideally providing enough power to meet the current community demand, and
potentially domestic water supply to the City of Adak as well as any transmission line
extensions (the water resource could be Lake Bonnie Rose, Lake De Marie, Lake Heart,
Lake Betty or Moffett Creek) because of failing existing infrastructure.
The information gathered from this feasibility study should be sufficient to develop
conceptual design (30% design) of a hydro turbine install. Conceptual design will identify
site location, and equipment type and sizing for hydroelectric power generation. The project
concludes with initiating permit consultations/applications with appropriate agencies. Task
specific items for this project include the following:
● Verification of annual hydrology data
● Verification of annual load demand
● Community out-reach to identify rehabilitation efforts for water and energy usage
● Economic analysis and energy modeling to identify need to either inspect the condition of
the existing 10-inch pipeline and dam or pursue project with new dam and penstock,
transmission line inventory and extension/connection review
● Feasibility Study to understand the technical and economic viability of three project models,
including excess hydroelectric generating opportunities and environmental flow restrictions
● Conceptual design, theoretical system design (mechanical and electrical), turbine selection,
confirmation of production output, cost estimate and initial construction estimate
● Finalize site selection and site control
● Initial permitting consultations and permit applications; resource evaluation, identify
permitting requirements, perform aquatic field investigations and other required permitting
analysis required for applications.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
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Grant Application – Standard Form
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Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
Round 9 Hydro Power Generation ADAK 1245 N $0
Round 5 Adak Hydroelectric Feasibility Study 891 N $0
Round 2 Adak Diesel Hybrid 315 Y $85,835
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and
Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed
project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add
additional rows as needed.
Task # Milestones Tasks
Start
Date
End
Date Deliverables
1.1
(Kickoff)
Grant in
place, project
kick off
meeting
Kickoff meeting
7/1/23 7/30/23
Signed grant
agreement
Signed contract
2.1
(Feasibility;
data
collection)
Verify
hydrology
data, and
load data,
community
outreach
Collect annual
hydrology data from
several water
resources
Collect annual load
data
Connect with
community members
and identify water and
energy usage
rehabilitation efforts 8/1/23 10/31/23
1 year of
hydrology data
1 year of peak and
average load data
List of known
areas of potential
improvement on
water and energy
usage
2.2
(Feasibility;
analysis)
Technical
feasibility
study for
existing dam
and water
pipeline
conditions,
economic
analysis, and
energy
modeling
Economic assessment
and evaluation of
existing Lake Bonnie
Rose dam and 10-inch
water pipeline
condition to support
20-year hydro turbine
project
Cost analysis and
feasibility for new
install of dam and
penstock
(replacement)
identify environmental
flow restriction
Energy modeling and
economic assessment
to determine viability
of three options
11/1/23 6/30/24
Go/no go decision
dependent upon
Engineering Firm
analysis and
recommendation
of existing dam
and pipeline
condition.
Discussion with
Adak Energy
Team to determine
path forward.
Final report
Go/no go decision
on project
approach.
Discussion with
Adak Energy
Team
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3.1
(Conceptual
design; initial
design and
cost
estimates)
Site
selection,
equipment
sizing and
selection,
power output
verification,
initial design
(mechanical
and
electrical),
transmission
line
connection,
cost estimate,
Confirm hydroelectric
turbine size,
conceptual design,
develop project cost
estimates, provide
project capacity
secure site location for
hydro turbine
Transmission line
inventory and
extension/connection
review
7/1/24 12/31/24
Signed Site
Control
Agreement
System
Specifications,
hydro turbine
sizing and cost
estimate, and any
additional
transmission
equipment and
route
30% design
drawings
(mechanical and
electrical)
3.2
(Conceptual
design;
permitting)
Agency
permit
consultations
Initial agency
consultations
identify permitting
requirements, perform
aquatic investigations
and other required
permitting analysis
required for
applications. 7/1/24 12/31/24
Project is ready to
apply for all
necessary permits
3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $ 497,650
Cash match to be provideda $247,075
In-kind match to be provideda $ 0
Energy efficiency match providedb $ 0
Total costs for project phase(s) covered in application (sum of
above)
$ 744,725
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Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
TDX was awarded AEA REF Round 9 funding to investigate further the feasibility for hydroelectric
power generation, but returned all of the funding and did not pursue the project at that time
because between the time of application and award it was determined that Adak’s powerplant
would need significant upgrades before it could effectively integrate any renewable energy system.
Since then, TDX Adak Generating has secured funding to upgrade the powerplant with the design
criteria to incorporate renewable energy systems and is currently installing that powerplant.
TAG was awarded $3 million from USDA High Energy Cost Grant funding to complete upgrades to
the Adak powerhouse and distribution network/equipment. This USDA funding is already secured,
and the project is more than 70% complete. Part of this funding has already been spent on Adak
power plant equipment and upgrades. The remaining funding, over $736,000, will be used in the
summer and fall of 2023 to install the updated powerplant and controls that will support the
integration of renewable energy systems, and part of this remaining funding ($247,075) will serve
as cash match for this project. While the upgraded power plant is instrumental in lowering the cost
of energy in Adak the price of diesel is still expensive in this remote area. Therefore, completing
this project would provide renewable energy data and information to TAG to continue the effort to
reduce the cost of energy for the residents and businesses of Adak. Timing of the final
construction of the power plant is a good fit for the timing of a REF grant. Should one of the
hydroelectric projects discussed in this application prove viable, TAG is committed to seeking
additional State and Federal grant funding and loans to complete the project through final design
and construction. Another source of funding being investigated is investment tax credits.
a Attach documentation for proof (see Section 1.18 of the Request for Applications)
b See Section 8.2 of this application and Section 1.18 of the RFA for requirements for Energy Efficiency
Match.
3.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The proposed project tasks do not typically encounter cost overruns. Cost overruns are more likely
in construction, equipment, and shipping. While the likelihood of cost increases or shortfalls in
funding are small for this feasibility/conceptual design project, TAG would utilize their existing line
of credit and/or apply for other additional grant funding if additional funds were required.
3.2.3 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual
costs for completed phases. Indicate if the costs were actual or estimated.
Reconnaissance [Actual/Estimated] $ 0
Feasibility and Conceptual Design [Estimated] $ 744,725
Final Design and Permitting [Actual/Estimated] $ 0
Construction [Actual/Estimated] $ 0
Total Project Costs (sum of above) Estimated $ 744,725
Metering/Tracking Equipment [not included in project
cost]
Estimated $ 0
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
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● State and/or federal grants
● Loans, bonds, or other financing options
● Additional incentives (i.e. tax credits)
● Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
Depending on the results of this work the next phase would be to complete final design, permitting,
and construction. TAG will pursue funding for this next phase from state and federal grants and
loans and will investigate investment tax credits. Note that in table 3.2.3 above we did not include
estimated costs for Final Design and Permitting and Construction because it is not clear which
option may be chosen.
3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail
your proposed project’s total budget. Be sure to use one table for each phase of your project, and
delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA’s Grants Coordinator by email at
grants@akenergyauthority.org or by phone at (907) 771-3081.
Phase 1 — Reconnaissance
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project. See
Sections 2.3 thru 2.6 of the
RFA )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ 0 $ 0 $ 0
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Phase 2 — Feasibility and Conceptual Design
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Sections 2.3 thru 2.6 of
the RFA )
$ $ $
Project Management 12/31/2024 $ 15,000 $ 0 $ 15,000
Grant Administration 12/31/2024 $ 6,000 $ 0 $ 6,000
Procurement 10/31/2023 $8,000 $ 0 $8,000
Travel to Adak 6/30/2024 $15,650 $0 $15,650
Conduct analysis, gather
current conditions 6/30/2024 $80,000 $0 $80,000
Final report 6/30/2024 $8,000 $0 $8,000
Collect hydrology data 10/31/2023 $ 50,000 $ 0 $ 50,000
Collect load data 10/31/2023 $ 25,000 $ 0 $ 25,000
Community outreach 10/31/2023 $ 18,000 $ 0 $ 18,000
Economic assessment;
pipeline extension and any
transmission inventory and
required changes
6/30/2024 $ 56,000 $ 0 $ 56,000
Energy modeling and final
report 6/30/2024 $ 20,000 $ 0 $ 20,000
Equipment sizing 12/31/2024 $ 10,000 $ 0 $ 10,000
Project cost and construction
estimate 12/31/2024 $ 20,000 $ 22,600 $ 20,000
Confirmation of production
outputs 12/31/2024 $ 10,000 $ 0 $ 10,000
Site control agreement 12/31/2024 $ 8,000 $ 20,000 $ 8,000
Diesel integration/ mechanical
& electrical integration 12/31/2024 $ 20,000 $ 204,475 $ 20,000
Permitting consultations 12/31/2024 $ 30,000 $ 0 $ 30,000
Field work for permitting 12/31/2024 $ 90,000 $ 0 $ 90,000
Permit final status 12/31/2024 $ 8,000 $ 0 $ 8,000 $
TOTALS $ 497,650 $ 0 $ 497,650
Budget Categories:
Direct Labor & Benefits $46,000 $ $ 46,000
Travel & Per Diem $15,650 $ $15,650
Equipment $0 $ $0
Materials & Supplies $ 0 $ $
Contractual Services $ 436,000 $ $ 436,000
Construction Services $ 0 $ $ 0
Other $ $ $
TOTALS $ 497,650 $ 247,075 $ 744,725
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Phase 3 — Final Design and Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Sections 2.3 thru 2.6 of
the RFA )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ 0 $ 0 $ 0
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Phase 4 — Construction
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Sections 2.3 thru 2.6 of
the RFA )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ 0 $ 0 $ 0
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3.2.4 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
This project cost estimates are based on AEA REF Round 9 application, AEA recommendations,
and information provided by the HATCH report (February 2013). Additionally, an inflation factor of
2% for years 2015 – 2020 was applied to the previous estimates as well as an 8% inflation factor
for year 2021. Finally, these values were “ground truthed” with our understanding of industry
standard typical costs for these activities as TDX has developed several hydro projects in Alaska
and the Lower 48.
3.3 Project Communications
3.3.1 Project Progress Reporting
Describe how you plan to monitor the progress of the project and keep AEA informed of the status.
Who will be responsible for tracking the progress? What tools and methods will be used to track
progress?
Project performance reports will be completed by comparing accomplishments to the tasks stated
in this application and the final grant agreement throughout the project timeline. The project
performance report will identify completed tasks submitted, with supporting documentation, as well
as identify objectives for the next reporting period. We will hold monthly update meetings and
include the AEA Project Manager in these meetings for regular, streamlined communications.
Detailed project status reports will also be completed quarterly, and project deliverables will be
presented to AEA at the end of each project phase. John Lyons will oversee all portions of this
project with TDX staff support. As well, TDX plans to subcontract project management to
DeerStone Consulting, who will be responsible for oversight and providing the detailed progress
reports and ensure all milestones are being met and communicated to all necessary parties. Dr.
Brian Hirsch, DeerStone Consulting, will be responsible for overseeing these activities and
providing progress reports.
Once data collection has commenced, evaluation of energy and economic values of the
hydroelectric project options against energy demand and diesel consumption can begin and the
diesel system performance will be continuously monitored for at least one year. The feasibility
reports will be shared with all project stakeholders as part of the go/no go decisions on the project
direction and submitted to AEA upon completion. Design reviews will be held with all stakeholders.
If the project were to fall behind schedule, the project performance report will discuss the
problems/delays that may affect completion of the project. Solutions to project delays will be
discussed in the report and with an AEA project manager. If any changes to the scope are
necessary, TAG will obtain prior written approval from AEA. We do not anticipate any project
delays or changes since we have qualified and experienced personnel for managing this project.
When all tasks are completed and administrative actions related to tasks are completed, we will
submit a final report to AEA for review and comment. The project will be considered closed after
AEA accepts the expenditure of funds and associated documentation, and the final project report.
3.3.2 Financial Reporting
Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
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that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
Over the last 17 years, TDX has maintained a client list in the public and private sectors that
require robust accounting protocols and controls to ensure fiscal accountability and efficiency.
These clients have come to rely on TDX to develop, implement, and operate reliable, cost-effective
solutions using diesel, natural gas, and/or renewable energies. TDX has 8a subsidiaries, and TDX
Power can also sole source contract directly with federal agencies. TDX is currently performing
several projects through this vehicle such as power line construction for the US Army Corps of
Engineers and power plant monitoring for Naval Facilities Engineering Command in Pearl Harbor,
Hawaii. Over the past 2 years, 8(a) government contracting has totaled over $10 million combined.
TAG will work with AEA to monitor project performance and the use of grant funds, as required
under the grant agreement. We will rely on the grant agreement between AEA and TAG for
formatting and due date requirements. TDX’s employee, William Couwenberghe, TDX Corporate
Controller, will be responsible for developing financial status reports. William has over 25 years of
experience with corporate financial accounting and will coordinate with John Lyons and TAG to
verify charges before allocating them to this grant funding. Expectations of third-party contractors
and consultants will be clearly outlined in written agreements with each entity before work is
approved to start. TDX has managed federal and state grant awards before and is familiar with
generally accepted accounting principles, checks and balances, among staff and leadership, and
will apply these practices to this project. This knowledge and experience will prevent overhead
expenses or any other unallowed costs from being charged to the grant funding.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an
attachment to your application. In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information. If the
applicant does not have a project manager indicate how you intend to solicit project management
support. If the applicant expects project management assistance from AEA or another government
entity, state that in this section.
Dr. Brian Hirsch, DeerStone Consulting, under subcontract to TAG, will be responsible for
managing this project and providing progress reports to AEA. Dr. Hirsch has worked in rural Alaska
and other remote locations on diesel-based renewable energy microgrids for over 25 years. Prior
to founding DeerStone Consulting, he served as an elected Board Member for Homer Electric
Association; led the National Renewable Energy Laboratory’s Alaska Initiative for over six years;
worked across Southeast Asia, Canada, lower 48 US, Mexico, and Central America; and consulted
for numerous non-profits and Tribal organizations. Dr. Brian Hirsch can be contacted at
4.1.2 Project Accountant
Indicate who will be performing the accounting of this project for the grantee. If the applicant does
not have a project accountant indicate how you intend to solicit financial accounting support.
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TDX employee, William (Bill) Couwenberghe, will be responsible for the accounting portions of this
project. Bill will coordinate with John Lyons and TAG to develop financial status reports and submit
required reporting to AEA. Bill is a certified public accountant and holds chartered global
management accountant credentials. Bill has worked with the TDX accounting system for over 10
years and has more than 25 years of experience with all financial accounting operations and
analysis. Mr. Couwenberghe can be reached at 907-250-5682.
4.1.3 Expertise and Resources
Describe the project team including the applicant, partners, and contractors.
For each member of the project team, indicate:
● the milestones/tasks in 3.1 they will be responsible for;
● the knowledge, skills, and experience that will be used to successfully deliver the tasks;
● how time and other resource conflicts will be managed to successfully complete the task.
If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts.
John Lyons, TDX Power and TAG President, will set up the kickoff meeting and monitor the
progress of the project. Mr. Lyons has extensive knowledge and experience with power systems
and necessary work to improve the economic conditions of Adak, Alaska. Mr. Lyons initiated a
team called Adak Energy Team, which meet quarterly to discuss issues and projects within Adak.
Each entity brings its own industry expertise to the group. This team will work with TAG on the
go/no go decisions within this project.
Loren Jalbert, Director of Engineering at TDX Power, will contribute to equipment sizing and type,
verify production output, and lead the development of the project cost and construction estimate.
Dr. Brian Hirsch, DeerStone Consulting, will be the Project Manager. He will manage this project
and write the RFP for the economic assessment and energy modeling contractual services. Dr.
Hirsch, along with support from other technical staff at DeerStone Consulting, will perform
community outreach, shepherd site control agreement, identify permitting requirements, and initiate
agency consultations.
Canyon Hydro has worked with TDX Power previously and will contribute to the engineering and
configuration of the conceptual design. Mike Maloney with Canyon Hydro has over 30 years of
experience in product application, equipment design and electrical engineering. Mike received his
undergraduate degree from Washington State University.
The remaining tasks will be assigned to a third-party contractor(s): gather hydrology data, and load
data, complete economic assessment and energy modeling, cost analysis of inspecting existing
dam and pipeline or install new dam and pipeline and any transmission line connection extensions,
identify environmental flow conditions, conceptual design.
Adak Energy Team is made up of TDX Power, the City of Adak, Aleut Enterprises, and the Aleut
Corporation, and the Aleutian-Pribilof Island Association (APIA). These entities and their Board of
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Directors provide key expertise and institutional knowledge. They meet and discuss projects and
local issues within Adak to verify alignment with each entity and ultimately to continue to provide a
wholesome and healthy economic future for Adak. Collectively, the Adak Energy Team will serve
as an informal Advisory Board and will contribute to the go/no go decision making.
Third-party contractors have not been selected, however, TAG is confident with the knowledge and
experience of each known contributing member to the project (i.e., John Lyons, Loren Jalbert,
Canyon Hydro, Adak Energy Team and DeerStone Consulting) there is sufficient knowledge and
experience to define the required tasks and manage complex contracts set up for third-party
contractors to successfully complete.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
TAG’s operational success is built from utilizing the local workforce. They have a highly skilled
crew who will be the boots on the ground for this project, including on data collection and other on-
site activities. Should this project move into the construction phase, TDX commits to providing local
job opportunities during the construction work in Adak. This will also be an opportunity to educate
the community about renewable energy production, potential storage and engage them as project
stakeholders.
SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. For pre-construction applications, describe the resource to
the extent known. For design and permitting or construction projects, please provide feasibility
documents, design documents, and permitting documents (if applicable) as attachments to this
application (See Section 11). Likelihood of the resource being available over the life of the project.
See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional
guidance.
Adak Island is located on the Aleutian Island chain of Alaska with significant mountain peaks which
collect dense snowpack each winter. The Hydroelectric Reconnaissance Study completed by
HATCH (dated Feb. 16, 2013, AEA REF Grant 2195450) showed that the island has several water
resources and penstock routes which could be developed to generate power from a hydro turbine.
The report scored all of these options based on estimated capital cost, environmental impact, and
potential energy production. The report highlighted two of the most likely projects, both of which we
are proposing to investigate in this application. The two highest scoring projects in the HATCH
report were an 89-kW hydro turbine installed in the existing 10-inch water pipeline which could
offset 760,000 kWh of the town load, resulting in diesel gen-sets supplying roughly 60% of the
power demand and hydro providing 40%. The second option constructs a longer penstock from the
same reservoir which creates a larger head, calculated to run a 440-kW hydro turbine that would
provide power for the entire town load year-round (2,000,000 kWh). Please refer to the Hatch
Report in the appendices for more detailed information on water flows. Should the existing dam
and penstock not be viable to support a 20-year (or longer) hydroelectric turbine, the feasibility
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study extends the evaluation to other lakes and penstock routes to provide renewable power to the
City of Adak.
5.1.2 Alternatives to Proposed Energy Resource
Describe the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The community goals of reducing diesel fuel use and increasing energy security can be met by
varying degrees with the following technologies:
1. Energy efficiency – power plant/system distribution and buildings
2. Diesel heating fuel reduction through renewable heating technologies
3. Low penetration solar
4. Wind energy
5. Hydroelectric projects of varying scale
Technology #1, energy efficiency for power plant, distribution and buildings, was the highest
priority for TDX – Adak when they took over the power plant in 2008. Since the powerplant was
originally designed to support an active military base, the infrastructure now is grossly oversized for
the current community loads. Line loss has exceeded 35% and diesel efficiency was about 12.86
kWh/gallon. TDX - Adak is in the final stages of replacing the power plant with a properly sized,
containerized design that will significantly improve the overall efficiency of the Adak electrical
generating system. This system is expected to be installed in 2023. We also continue to focus on
improving line loss in the distribution system, with the latest results showing that line loss has been
reduced to about 16%. Replacement of inefficient transformers and conductors, along with re-
routing and shortening the distribution system, will be expensive but necessary steps to continue
reducing line loss and improving efficiency.
For Technology option #2 – renewable heating technologies, Adak has limited local resources.
There is no viable biomass resource on the Island, so this heating technology is not an option.
Heat pumps are effective in areas with low electric costs. However, since Adak has the highest
electric rates in the state and the nation, heat pumps are currently not a feasible option.
For Technology options #3 and #4, resource assessments have been completed for Adak to
quantify solar and wind availability. Unfortunately, Adak does not have a sufficient solar resource to
result in an economically viable project. While Adak has a significant wind resource (Class 6 or
Class 7), this area experiences excessive wind speed and turbulence and current wind technology
is limited to accommodate such extremes, such that this technology is not efficient to harvest this
resource. In 2007 a tower was bought and installed on Adak and the data was to be analyzed for
the APIA Wind Technical report, however, the data card failed to log data and the wind tower fell
during a storm. In 2011, the tower was repaired, and data was successfully captured. Adak is
known for its prevalent cloud cover, frequent storms, and extremely high winds, and therefore is
not a hospitable site for wind and solar renewable energy technologies.
Technology #5, Hydroelectric, is one renewable energy resource that is abundant in Adak. Hatch
performed a reconnaissance study in 2013 that identified 13 different hydroelectric options, ranging
in size from 90kW to 460 kW. These projects were evaluated based on cost, output, and difficulty,
and two projects were standouts: The Lake Bonnie Rose PRV Replacement (89 kW) and the Lake
Bonnie Rose to Mitt Lake Hydroelectric Project (440 kW). These are the two high priority projects
we are proposing to pursue further, along with an expanded project in case the existing
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infrastructure is unable to withstand the additional strain that a hydro turbine would put on the
aging penstock and dam.
TDX is proposing to complete a feasibility study for each of these hydro projects to quantify the
economic benefits to the community for each option. At the completion of the study, one project will
be selected to move forward to the conceptual design and permitting stage. This is consistent with
previous recommendations from the Alaska Energy Authority review committee.
5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues. See the “Environmental and Permitting Risks” section of the appropriate
Best Practice Checklist for additional guidance.
● List of applicable permits
● Anticipated permitting timeline
● Identify and describe potential barriers including potential permit timing issues, public
opposition that may result in difficulty obtaining permits, and other permitting barriers
The following permits may be required for a hydroelectric system installed on Adak Island:
Wetlands permit
National Historic Preservation Act Section 106
Endangered Species Act Clearance
Essential Fish Habitat consultation
State permits: Coastal zone, fish habitat permit (title 16), water rights, land ownership,
contamination, and water quality certification.
Construction/Building permit from City of Adak
Environmental Impact Review
Reference: HATCH Report Section 5 - attached
Resource evaluation and aquatic field investigations will be completed as a part of the permitting
process. The permitting consultations will commence as soon as the location and size of the hydro
turbine is selected. Should the most economic project option utilize existing infrastructure, the
permitting timeline is anticipated to be 150 days to receive all permits. This is generally a well-
known and documented process with little risk, yet a necessary step to ensure approval of the
project from all regulatory bodies.
Potential barriers could be environmental impact if the condition of the existing infrastructure is too
deteriorated to utilize. Having to rebuild existing infrastructure would require additional
development work on this project, delaying permitting, design, and construction.
5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. Identify
potential land ownership issues, including whether site owners have agreed to the project or how
you intend to approach land ownership and access issues. See the “Site control” section of the
appropriate Best Practice Checklist for additional guidance.
Potentially a handful of sites are to be investigated for this project. Each of these sites have some
elevation and decent volume of water. The first two sites proposed entail utilizing the existing
concrete dam (coordinates 51.823344, -176.675739) at Lake Bonnie Rose and penstock (10-inch
water pipeline) to the first PRV house (coordinates 51.843106, -176.670155). This first option is to
install one hydro turbine inside the first PRV house and another at the City Water Treatment Plant
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(WTP). The second site proposes to extend the existing 10-inch penstock from the first PRV house
to Lake Mitt (coordinates 51.843369, -176.659727) and to construct a turbine house to cover the
hydro turbine. While a hydro turbine does not require much real estate, site selection criteria will
consider how much transmission line will need to be installed to connect power generated to the
existing TAG grid as well as the project’s economics and energy modeling. Other sites of potential
installations are Lake De Marie (coordinates 51.833995, -176.678774), and Moffett Creek. Aerial
maps of each site are included in this application.
The majority of land on Adak is owned by the Aleut Corporation. For many years, the Aleut
Corporation has supported these energy projects, and we do not foresee any land ownership
issues. Additionally, should the existing dam and 10-inch pipeline support a 20-year hydroelectric
project, that infrastructure is owned by the City of Adak. We have a letter of support from the City
Manager stating they will allow hydro turbine(s) to be installed on their infrastructure for the life of
the project.
5.3 Project Technical & Environmental Risk
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
● Which tasks are expected to be most challenging?
● How will the project team reduce the risk of these tasks?
● What internal controls will be put in place to limit and deal with technical risks?
See the “Common Planning Risks” section of the appropriate Best Practice Checklist for additional
guidance.
Conducting a detailed feasibility study and completing conceptual design are inherently low risk
activities if highly experienced industry professionals are performing the tasks and there is
transparent data collection and analysis. With clearly identified tasks, go/no go criteria and proven
methods of analysis, this project should not pose technical challenges per se, but for future
development of the overall project, it will be very important to perform proper analysis and provide
accurate information for cost effective decision-making.
The most challenging task is determining the integrity of the existing dam and penstock and if it
can withstand a 20-year (or longer) project. The economic assessment will be based on a dam
inspection and a determination on whether to build on existing infrastructure or to start with new
dam and penstock. (Note: the City is dependent upon this water system infrastructure and expects
to maintain this system in good working order.) The project team will reduce this technical risk by
issuing a competitive RFP process to select the most qualified structural evaluators, gathering
data, conducting an impartial analysis, and identifying economic go/no go criteria based on
community-defined goals. The economic analysis will be based on this data collection and will
guide the future path of development.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so which project
team members will be involved and how the issues will be addressed. See the “Environmental and
Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.
● Threatened or endangered species
● Habitat issues
● Wetlands and other protected areas
● Archaeological and historical resources
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● Land development constraints
● Telecommunications interference
● Aviation considerations
● Visual, aesthetics impacts
● Identify and describe other potential barriers
Threatened or Endangered species, habitat issues, wetlands or protected areas,
archaeological and historical resources: Currently, there are no known threatened or
endangered species or sensitive areas. This project studies existing infrastructure and potential
new routes however, during this project no construction activities are conducted. These topics will
be thoroughly evaluated during the permitting consultations to verify that there are no potential
issues. Past military activity on the island has resulted in many known hazards and contaminants,
and any proposed activities will take these into account, but the work proposed here will not
directly disturb or impact any of the resources or species identified.
Land development constraints: The majority of the land on Adak Island is owned by the Aleut
Corporation. Historically, the Aleut Corporation has expressed their continuous support for
developing a project that benefits the community members in Adak. Currently, there are no
identified land development constraints or identified designated or protected ground. This
information will be revisited during site selection, which is a task within this project. Archaeological
and historical resources will be evaluated within the project footprint. The principal land
development constraint is the short construction season from June through September for earth
work.
Telecommunications interference: There are no identified existing buried utilities or
telecommunications interference issues. However, this will be confirmed during the permitting
process.
Aviation considerations: There are no identified aviation considerations for the project or harvest
operations. Again, this will be confirmed during the permitting process.
Visual, aesthetics impacts: Visual aesthetics impacts should be minimal, if any transmission
lines need to be added to support this project. This will be confirmed during the permitting process.
Identify and discuss other potential barriers: There are no other potential barriers identified at
this time.
5.4 Technical Feasibility of Proposed Energy System
In this section you will describe and give details of the existing and proposed systems. The
information for existing system will be used as the baseline the proposal is compared to and also
used to make sure that proposed system can be integrated.
Only complete sections applicable to your proposal. If your proposal only generates electricity, you
can remove the sections for thermal (heat) generation.
5.4.1 Basic Operation of Existing Energy System
Describe the basic operation of the existing energy system including: description of control system;
spinning reserve needs and variability in generation (any high loads brought on quickly); and
current voltage, frequency, and outage issues across system. See the “Understanding the Existing
System” section of the appropriate Best Practice Checklist for additional guidance.
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The original power plant infrastructure on Adak was sized to support military operations and
equipment and a population of 6,000. It had two very high voltage feeds and an extensive
transmission network. Equipment was spread out across the Island to ensure redundancy should
the area become attacked. It was not designed for low cost civilian operations and long-term
maintenance. When the US Military left Adak in 1997, it created a significant power generation and
demand gap. A few years later, TAG became the local utility and has identified how to reduce line
loss and provide power to meet the current demand. TDX Power received a 2019 USDA High
Energy Cost Grant to downsize and relocate the power plant equipment and upgrade some of the
transmission equipment on Adak Island. The two generators that will power the area starting the
fall of 2023 are a Caterpillar 3456 rated for 450 kW and a Volvo Penta D16MG rated at 500 kW. It
is currently unknown the annual operations and maintenance costs for this newly installed
equipment but expected to be much less, and more reliable, than the current system. As well, the
new system will be located adjacent to Adak City Hall and will provide recovered heat from the new
diesel gen-sets to heat much of the City Hall building. As a vestige of the military era construction,
City Hall is about 70,000 square feet and much of it is currently closed down. The new generators
will allow for more of the building to be opened up for community purposes and save heating fuel.
Large-scale hydro development could similarly provide space heating when there is excess
electricity.
5.4.2 Existing Energy Generation Infrastructure and Production
In the following tables, only fill in areas below applicable to your project. You can remove extra
tables. If you have the data below in other formats, you can attach them to the application (see
Section 11).
5.4.2.1 Existing Power Generation Units
Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum
operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset
controllers, hours on genset
Unit 1: Diesel, Caterpillar 3456, 450 kW, 220 kW min.
Unit 2: Diesel, Volvo Penta, 500 kW, 220 kW min.
Unit 3:
Unit 4:
Unit 5:
Unit 6:
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
Currently there is no heat recovery
system installed as the power plant is
far from town and other buildings. The
recent powerplant upgrades are
underway which are designed to
provide heat recovery to the City Hall
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building and potentially a new WTP
facility. The powerplant heat recovery
system to the City Hall building is
planned to be completed in the Fall of
2023 and estimated to provide over
8,000,000 kWh (or 2.7 billion BTUs
annually) for heat recovery to this
building. The estimated displaced fuel
from this is 15,700 gallons of diesel.
5.4.2.2 Existing Distribution System
Describe the basic elements of the distribution system. Include the capacity of the step-up
transformer at the powerhouse, the distribution voltage(s) across the community, any transmission
voltages, and other elements that will be affected by the proposed project.
The existing transmission and distribution system were designed and installed for a military operation
and a community the size of 6,000 people, not to mention this technology developed and installed
during the Cold War. All this infrastructure is now severely degraded and has passed its useful life,
such that frequent power outages are experienced on the Island. With funds awarded from the USDA
HECG, the existing power system is currently undergoing relocation and equipment upgrades;
downsizing the system to meet current demand loads and relocating infrastructure to reduce line
loss and blackouts.
The upgraded power plant will generate 480V, 3-phase grounded wye, and distribute 13.8kV delta
and 12,470 kV wye. Parts of the transmission line have new transformers to step down the voltage
to end users. We are actively transitioning the entire distribution system to 12,470 kV with multiple
feeders from the new power plant to enhance efficiency and reliability. This will accommodate new
future renewable power systems.
Dependent on the water source, the impact of installing a hydroelectric turbine could potentially
completely shut off the diesel generators (i.e., diesel’s off) for part or much of a year. Additionally,
dependent on the water resource, a hydroelectric generator could have excess power that could be
used to offset space heating for residences, community buildings and/or businesses.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
Generatio
n unit
Resourc
e/
Fuel type
Design
capacity
(MMBtu/h
r)
Make Model Average
annual
efficienc
y
Year
Installe
d
Hours
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
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i. Annual O&M cost for labor $ n/a
ii. Annual O&M cost for non-labor $87,130 (labor and non-
labor)
n/a
iii. Replacement schedule and cost for
existing units
Install complete Fall
2023, $3,300,000 total
project cost
n/a
5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System)
Use most recent year. Replace the section (Type 1), (Type 2), and (Type 3) with generation
sources
Month Generati
on
Diesel
(kWh)
Generati
on (Type
2)
(kWh)
Generati
on (Type
3)
(kWh)
Fuel
Consumpti
on
(Diesel-
Gallons)
Fuel
Consumpti
on
[Other]
Pea
k
Loa
d
(kW
)
Minimu
m Load
January 182,171 14,518 n/a 307 220
February 171,553 13,579 n/a 307 231
March 173,087 6,097 n/a 268 209
April 192,112 13,579 n/a 283 239
May 173,994 15,291 n/a 281 210
June 167,729 14,481 n/a 284 209
July 140,534 12,479 n/a 223 170
August 148,498 11,606 n/a 232 180
Septembe
r
152,240 12,487 n/a 238 192
October 155,126 12,818 n/a 303 188
November 167,918 14,255 n/a 290 211
December 176,486 14,415 n/a 330 213
Total 2,001,4
48
155,605 n/a n/a n/a
5.4.2.6 Annual Heating Fuel Consumption (Existing System)
Use most recent year. Include only if your project affects the recovered heat off the diesel
genset or will include electric heat loads. Only include heat loads affected by the project.
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
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August
Septembe
r
October
November
December
Total
5.4.3 Future Trends
Describe the anticipated energy demand in the community, or whatever will be affected by the
project, over the life of the project. Explain how the forecast was developed and provide year by
year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal
variations, etc. that will affect the project.
The electric energy demand within Adak could increase slightly. The historical, extremely high
electricity rates on Adak have been a major complaint of the residents and business owners. As a
result, some residents purchased and currently operate their own power generators to reduce their
costs. The proposed hydroelectric project should reduce the utility rates such that these residents
who operate their own power generators may return back to the local electrical grid.
Additionally, this could create a significant reduction in utility costs that would incentivize the fish
processors/markets to return to the area and with this economic turn, the area could see a growth in
population. As well, there has been growing discussion about the military returning to Adak
considering its strategic location and/or potential for hydrogen generation to support long distance
shipping. Both of these are highly speculative but long term major opportunities that will be more
likely if there is a low energy cost and vibrant community on Adak. But currently, load continues to
drop slightly and without new fish processing or cost reductions from renewables, this trend is
expected to continue.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
● A description of renewable energy technology specific to project location
● The total proposed capacity and a description of how the capacity was determined
● Integration plan, including upgrades needed to existing system(s) to integrate renewable
energy system: Include a description of the controls, storage, secondary loads, distribution
upgrades that will be included in the project
● Civil infrastructure that will be completed as part of the project—buildings, roads, etc.
● Include what backup and/or supplemental system will be in place
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
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The proposed project will determine the most economical size and type of hydroelectric turbine to
install, how many to install and where to install them. Power generated from the hydro turbine(s) will
be connected to the existing power generation and transmission lines, operated by TAG.
Currently, three options are being investigated to reduce energy cost for Adak community members.
Option 1 retrofits the existing Pressure Reducing Valve (PRV) house #1 to a turbine house. In this
case the existing 8-inch PRV would be replaced with a hydro turbine. Option 2 expands the current
10-inch water pipeline and installs additional hydroelectric turbines in PRV House #2 and at the
discharge location of Lake Mitt. The types of turbines have yet to be determined. The feasibility study
should collect information to identify which type of turbine would be most suitable for this piping
location and meet energy demand from the community. Types of turbines to be considered are
Pelton, Francis, and Turgo. The existing dam, water pipeline, and PRV house was selected to be
utilized for this project because it already has established access (road and maintenance), the water
resource is already contained and is near the vicinity of existing transmission lines. However, if this
water infrastructure is not capable of supporting a hydroelectric turbine for 20 years, another option
will be explored.
The anticipated capacity factor will be investigated further, however, currently it is estimated the
capacity factor is 100% since the water flow from Lake Bonnie Rose and other lakes on the Island is
always available and is continuous to meet the City’s water demand. This phase of the project does
not require any civil infrastructure to complete.
5.4.4.1 Proposed Power Generation Units
Unit # Resource/
Fuel type
Design
capacity
(kW)
Make Model Expecte
d
capacity
factor
Expecte
d life
(years)
Expected
Availability
1 Hydroelectric ~90kW TBD TBD 100 20 95%
2 Hydroelectric ~440kW TBD TBD 100 20 95%
3 Hydroelectric TBD TBD TBD 100 50+ 95%
5.4.4.2 Proposed Thermal Generation Units (if applicable)
Generation
unit
Resourc
e/
Fuel type
Design
capacity
(MMBtu/h
r)
Make Model Expected
Average
annual
efficiency
Expected
life
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5.4.5 Basic Operation of Proposed Energy System
● To the best extent possible, describe how the proposed energy system will operate: When will
the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
● When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
The type of hydroelectric turbine and output is highly dependent on water resource, head, penstock
diameter and flow rate. This feasibility study with gather and assess necessary information to start
conceptual design. Ultimately, any proposed hydroelectric turbine(s) will operate when water is
flowing through the penstock. The water flowing will turn the turbine and generate varying degrees
of power. The power generated from the hydro turbine will be metered and available to consumers
as the primary source until the energy demand exceeds the turbine output, then diesel generators
will be operated to meet the remaining demand. A controller will be installed to monitor the power
generation and demand and switchgear equipment to toggle on/off as appropriate. As a backup
system, should the hydro turbine fail or need to be shut off for maintenance, then the diesel
generators will manage the entire energy demand.
5.4.3.1 Expected
Capacity
Factor
100%
The table below calculates a hydroelectric turbine with 100%
capacity factor since the maximum amount of water is always
available, which meets the current community demand, to
operate at 95% of the time, i.e., 100% capacity factor and 95%
availability. These numbers were calculated using FY 21-22
Utility Statistics from Adak.
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Month Generatio
n
(Option 2)
(up to 440
kWh)
Generatio
n
(Option 2)
(up to 440
kWh)
Generatio
n
(Option 3)
(TBD
kWh)
Fuel
Consumptio
n
(Diesel-
Gallons)
Fuel
Consumptio
n
[Other]
Secondar
y load
(kWh)
Storag
e
(kWh)
January 173,062 726
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February 162,975 679
March 164,433 305
April 182,506 679
May 165,294 765
June 159,343 724
July 133,507 624
August 141,073 580
Septembe
r
144,628 624
October 147,370 641
November 159,522 713
December 167,662 721
Total 1,901,376 7,780
5.4.5.3 Annual Heating Fuel Consumption (Proposed System)
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
Septembe
r
October
November
December
Total
5.4.6 Proposed System Operating and Maintenance (O&M) Costs
O&M costs can be estimated in two ways for the standard application. Most proposed renewable
energy projects will fall under Option 1 because the new resource will not allow for diesel
generation to be turned off. Some projects may allow for diesel generation to be turned off for
periods of time; these projects should choose Option 2 for estimating O&M.
Option 1: Diesel generation ON
For projects that do not result in shutting down
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the proposed renewable project.
$
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Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1. Annual non-fuel savings of shutting off
diesel generation
2. Estimated hours that diesel generation
will be off per year.
3. Annual O&M costs associated with the
proposed renewable project.
1. $0
2. Hours diesel OFF/year: 8,322
3. Annual O&M costs associated with the new
proposed hydro system are $135,854. Assuming the
installed hydroelectric turbines meet 95% demand,
and diesel gen‐sets are turned off, the O&M costs
for diesel gen‐sets will still be required (as back up
generation).
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
$6.2591 $ n/a n/a n/a n/a
Annual
Units
7,780 0 0 0 0
Total
Annual
cost ($)
$48,695.7
9
0 0 0 0
5.5 Performance and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
Metering equipment will be part of the control system of the selected hydroelectric project. It is
estimated that production data will be collected at 1 second intervals and monthly reports will include
all production statistics required for PCE reporting, utility financial controls, and system
troubleshooting. The newest SCADA systems gather and store high resolution data for these
purposes. Cost estimate for metering and control equipment is $150,000 to $200,000 and will be
incorporated in capital costs of the project.
5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the Request for Applications
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It is anticipated that SCADA data will be used to gather and store operations and maintenance data
required for cost and production reporting. The information will be supplied to AEA in the required
format to meet the terms of any AEA grant agreement. Once the new power plant is installed, TAG
will collect detailed production and O&M data. When the new power plant comes online a robust
model for calculating O&M expenses will be used. TAG regularly reports operational information to
AEA and the RCA and have recently reviewed of our rates and operations for RCA scrutiny. TAG
will continue with these data collection methods through our SCADA systems and reporting methods
for any future development at Adak.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit – The fuel cost in both B/C ratio calculators was updated with the
latest 2022 Adak weighted average fuel cost from the 11/08/2022 fuel receipt, $6.2591/gallon
Annual Lifetime
Anticipated Diesel Fuel Displaced for
Power Generation (gallons)
147,825 2,956,500
Anticipated Fuel Displaced for Heat
(gallons)
0 0
Total Fuel displaced (gallons) 147,825 2,956,500
Anticipated Diesel Fuel Displaced for
Power Generation ($)
$925,251 18,505,029
Anticipated Fuel Displaced for Heat ($)
Anticipated Power Generation O&M Cost
Savings
$0 $0
Anticipated Thermal Generation O&M Cost
Savings
0 0
Total Other costs savings (taxes,
insurance, etc.)
0 0
Total Fuel, O&M, and Other Cost Savings $925,251 $18,505,029
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits, and how the people of Alaska will benefit from the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and/or financing, will not be
included as economic benefits of the project.
Where appropriate, describe the anticipated energy cost in the community, or whatever will be
affected by the project, over the life of the project. Explain how the forecast was developed and
provide year-by-year forecasts
The economic model used by AEA is available at https://www.akenergyauthority.org/What-We-
Do/Grants-Loans/Renewable-Energy-Fund/2022-REF-Application. This economic model may be
used by applicants but is not required. The final benefit/cost ratio used will be derived from the
AEA model to ensure a level playing field for all applicants. If used, please submit the model with
the application.
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The economic modeling used for this application is the B/C ratio for a hydroelectric turbine which
could offset the use of the diesel gen-sets by 95% (see appendices for two B/C ratio completed for
a 440 kw and a 90 kW hydroelectric turbine projects). The “diesel fuel prices” tab in the B/C ratio
was updated with recent fuel charges ($6.2591/gallon). For a hydroelectric project which could
supply 100% of the demand 95% of the time (440 kW project), TAG estimates over a $10 million
capital cost, the O&M is estimated from the B/C calculator to be $135,854. Based on an annual fuel
cost savings of $925,251, this is a significant savings both financially and environmentally. After this
feasibility study is complete, we will have a more accurate number to work with.
The current annual non-fuel cost to operate diesel gen-sets (original configuration) is $584,114. This
number contributes to the total annual O&M costs but is not it entirely. The 440kW B/C ratio
calculated the annual O&M for the diesel gen-sets to be $87,130. TAG anticipates this cost dropping
after the new power plant equipment is installed as the original power plant needed to be upgraded
and transmission line loss will be mitigated. Should a renewable energy system be installed which
can supply 95% of the full power demand, the annual amount of diesel fuel displaced is 147,825
gallons.
Based on the output of the B/C ratio, providing over 400 kW, the 20-year project life will displace
2,956,500 gallons of diesel, anticipating fuel prices remaining at $6.2591/gallon, this results in a
lifetime cost savings of $18,505,029.
The B/C ratio for this 440-kW hydroelectric turbine is 2.43. Another B/C ratio was completed for a
hydroelectric turbine configuration which still required the use of diesel gen-sets and can be reviewed
in the appendices.
A community that is energy self-sufficient is able to supply its own needs with minimal external
assistance and is ultimately a more sustainable community. Our goal for Adak is utilizing 70%
renewable energy for electricity, heating and transportation by 2030. To achieve this goal, Adak must
capture as much hydro power as possible. Pursuing this goal will create design, construction,
management, and operation jobs, with significant ancillary benefits for the community.
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomic to operate and how the project
team will address the issues. Factors may include:
● Low prices for diesel and/or heating oil
● Other projects developed in community
● Reductions in expected energy demand: Is there a risk of an insufficient market for energy
produced over the life of the project.
● Deferred and/or inadequate facility maintenance
● Other factors
At over $3.00/kWh, Adak has among the highest electric rates in the State of Alaska and the nation.
Economic risks for a renewable energy project are very low. This feasibility project will perform a
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detailed financial analysis to select the project that best improves the economics for the City of Adak.
While fuel prices are at near historic highs at the moment, they rarely drop very much in Adak as the
shipping and bulk fuel storage components of fuel costs are stubbornly high because of its
remoteness and aging infrastructure. Hence the economic calculations associated with cost savings
from fuel displacement are very robust. There is a potential for a continued decline in energy
demand, but this risk is higher if we do nothing to reduce electricity costs through fuel displacement
from renewables. In other words, the economic risk is much higher if we do nothing than if we invest
in a renewable energy system that reduces electricity costs. If we can effectively lower our costs,
there will be increased demand. Deferred and/or inadequate facility maintenance is also a risk that
is reduced by TAG being pro-active and inspecting the existing infrastructure and making a decision
based on its long-term viability or alternatively, building new infrastructure if necessary. This
feasibility study will specifically mitigate this risk.
In general, the biggest economic risk is for TAG to do nothing to reduce the dependence on imported
diesel fuels and reduce electric rates to consumers. Fish processors have already left the community.
Commercial businesses struggle with extremely high electric rates, and the population is at risk of
decline and people are unable to afford to live in Adak. A hydroelectric project that can reduce the
cost of energy in Adak is imperative to the survival of the community.
6.1.4 Public Benefit for Projects with Direct Private Sector Sales
For projects that include direct sales of power to private sector businesses (sawmills, cruise ships,
mines, etc.), please provide a brief description of the direct and indirect public benefits derived from
the project as well as the private sector benefits and complete the table below. See Section 1.6 in
the Request for Applications for more information.
N/A
Renewable energy resource availability (kWh per month)
Estimated direct sales to private sector businesses (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales for use by the Alaskan public (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
6.2 Other Public Benefit
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
● The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can
be used for other purposes
● The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
● The project will solve other problems for the community (waste disposal, food security, etc.)
● The project will generate useful information that could be used by the public in other parts of the
state
● The project will promote or sustain long-term commercial economic development for the
community
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1. The project will reduce the cost of electricity substantially and thus provide economic relief
to Adak community members. Because the current electric rates are extremely burdensome
to commercial entities, a reduction in rates could result in significant jobs growth with the
potential return of fish processors to the community. Fish processors employed hundreds of
people in the past, and there was a trickledown effect on other businesses as a result of
this industry. At a minimum, reducing residential rates will be a substantial benefit to the
community even if new fish processors do not return to the island.
2. The project will provide a major contribution toward making the island independent of
imported energy and all the associated disadvantages (weather, barge schedule, storage
limitations on the Island, etc.)
3. Hydroelectric generators are highly reliable and require little maintenance. This will reduce
the risk of power outages.
4. This project will provide more incentive to maintain existing infrastructure. This project will
share infrastructure with the community water supply, including the road to the Lake Bonnie
Rose dam and the water supply pipeline. By using this infrastructure for water and energy,
maintenance will be a high priority and costs will be spread over multiple public services.
5. If the most feasible option is to extend the penstock for Option 2 or install a new dam and
pipeline this infrastructure may support an additional road/trail or transmission line.
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
At a minimum for construction projects, a business and operations plan should be attached and the
applicant should describe how it will be implemented. See Section 11.
7.1.1 Operation and Maintenance
Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed
project for its expected life
● Provide examples of success with similar or related long-term operations
● Describe the key personnel that will be available for operating and maintaining the
infrastructure.
● Describe the training plan for existing and future employees to become proficient at operating
and maintaining the proposed system.
● Describe the systems that will be used to track necessary supplies
● Describe the system will be used to ensure that scheduled maintenance is performed
TDX Adak Generating LLC is a regulated electric utility with a proven track record to own and
operate power generation and distribution systems successfully since ownership in 2008. TAG has
all administrative and financial resources to successfully incorporate and operate hydroelectric
turbines. The local workforce in Adak will operate and maintain any hydroelectric equipment.
TAG and TDX Power are current on all loans and required reporting to state and federal agencies.
Initial reports indicate the water resource of Lake Bonnie Rose is sufficient to provide stable flow
rates equating to stable power production throughout the year.
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More broadly, TDX Power owns and operates and maintains four different remote electric utilities
across Alaska, including our North Slope Generating gas facility at Deadhorse, providing reliable
service to the oil and gas industry, as well as Sand Point Generation, which provides electric utility
service to the community of Sand Point and commercial fish processors there. We have clearly
demonstrated our ability to sustainably own, operate, and maintain remote electric utilities and
renewable energy resources such as Vestas wind turbines on St Paul Island.
7.1.2 Financial Sustainability
● Describe the process used (or propose to use) to account for operational and capital costs.
● Describe how rates are determined (or will be determined). What process is required to set
rates?
● Describe how you ensure that revenue is collected.
● If you will not be selling energy, explain how you will ensure that the completed project will be
financially sustainable for its useful life.
The City of Adak is TAG’s largest customer, so the City’s sustainability is paramount to ensure
TAG’s financial sustainability. The City’s governing body is a member elected Council with an
elected City Manager. This body meets regularly and is fiscally responsible for the City’s
operations, including running and maintaining the sewer and water system for the community. The
City’s most recent annual financial audit shows combined accounts receivable between
“Governmental” and “Business-type” activities in excess of a million dollars and managing
combined infrastructure and capital assets.
As the regulated local electric utility, TAG sets electric rates based on annual expenses including
fuel and non-fuel costs. Annual reports are submitted to the RCA for review and rates are
submitted for review and approval by the RCA. TAG successfully bills and receives payments
monthly from its commercial and residential customers on Adak. TAG also files monthly PCE
reports and receives PCE payments to subsidize the cost of diesel fuel in the community. Fuel and
non-fuel costs are tracked through our accounting system and are reported to, and approved by,
the RCA. We painstakingly review these via rate cases every 3-5 years. TAG ensures revenue is
collected in part by terminating service to customers who do not pay their bills. In general, we have
a very low delinquency rate.
The Federal Government and State of Alaska recognize the City of Adak as evidenced by
numerous federal and state funding agreements, awards, and other cooperative agreements. TDX
Power is currently managing a US Department of Energy grant award (HECG) and has
successfully closed out previous AEA and state awards.
The City’s financial management system is on an accrual basis and then at the end of the year
applies Modified Accrual for federal reporting and government accounting. The City provides
annual financial reports and has an independent audit performed. As well, each month the City
Council convenes and reviews monthly “Budget to Actuals” provided by the City Manager.
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7.1.2.1 Revenue Sources
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. If there is expected to be multiple rates for electricity, such as a
separate rate for intermittent heat, explain what the rates will be and how they will be determined
Collect sufficient revenue to cover operational and capital costs
● What is the expected cost-based rate (as consistent with RFA requirements)
● If you expect to have multiple rate classes, such as excess electricity for heat, explain what
those rates are expected to be and how those rates account for the costs of delivering the
energy (see AEA’s white paper on excess electricity for heat).
● Annual customer revenue sufficient to cover costs
● Additional incentives (i.e. tax credits)
● Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
An installed hydroelectric turbine is expected to offset more than 147,000 gallons of diesel fuel
annually. As a result, the utility and its end-users expect to see a reduction in annual costs. The
current power plant upgrades are expected to lower the line loss and subsequently the utility rate.
This project will not create an additional revenue stream or other incentives for the utility but it will
result in more cash available for residents and businesses for future expansion and potentially new
revenue streams and economic development.
7.1.2.2 Power Purchase/Sale
The power purchase/sale information should include the following:
● Identification of potential power buyer(s)/customer(s)
● Potential power purchase/sales price - at a minimum indicate a price range (consistent with the
Section 3.16 of the RFA)
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant-funded project. Include letters of support
or power purchase agreement from identified customers.
The proposed hydroelectric generator will be owned, operated and maintained by TDX Adak
Generating LLC, a regulated electric utility. There will be no Independent Power Producer related
to this project. Potential customers are all residences, businesses, and the City of Adak, and future
customers potentially could be fish processors.
The sale, rate and rate of return are governed by the rules of the Alaska RCA and are subject to
approval by the Alaska RCA. Currently, utility rates in Adak are $3.30/kWh, depending on the
operations and maintenance costs. Ideally, this project will substantially reduce the utility rate.
SECTION 8 – PROJECT READINESS
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8.1 Project Preparation
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
● The phase(s) that must be completed prior to beginning the phase(s) proposed in this application
● The phase(s) proposed in this application
● Obtaining all necessary permits
● Securing land access and use for the project
● Procuring all necessary equipment and materials
Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for
each project phase. Please describe below and attach any required documentation.
TAG has completed the required Reconnaissance phase of this project to move forward to the
feasibility and conceptual design phase. The reconnaissance study by Hatch in 2013 included
initial resource descriptions including location, basin characteristics, climate and initial hydrology
data. It considered hydrological characteristics, potential energy production, equipment
requirements, and a cost estimate and economic evaluations. This Reconnaissance narrowed 13
options to the two most viable that are proposed for this Feasibility Study which utilize existing
water infrastructure. Should it not be economical to invest a 20-year project in the existing
infrastructure, this feasibility study expands and considers the next highest scored option in the
Hatch and McMillen 2013 reports.
After the successful completion of this feasibility and conceptual design, the proposed project will
pursue final design and construction should the feasibility study indicate hydroelectric generation is
technically and economically viable.
The current phases of the project (feasibility, permitting, conceptual design) could move forward
immediately after award of this grant.
No phases need to be completed before this project can start. Please refer to the attached timeline
for phases of the proposed project. Permitting consultations and permit applications will be a part
of this proposed project. It is doubtful there will be land access issues since the proposed project
intends to utilize existing dam, penstock and PRV house, all which are currently existing and
accessible by roads. However, after the feasibility study we can answer that question more
effectively. There will not be equipment or material purchased as a part of this project.
8.2 Demand- or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that will have a positive impact on the proposed
project, and have chosen to not include them in the economic analysis, applicants should provide
as much documentation as possible including:
1. Explain how it will improve the success of the RE project
2. Energy efficiency pre and post audit reports, or other appropriate analysis,
3. Invoices for work completed,
4. Photos of the work performed, and/or
5. Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
With funding from a USDA HECG funding, TAG has completed the design and procurement of a
new modular power plant that will replace the existing, grossly oversized power plant from the
military days of the Adak Base. This power plant also includes updated automatic switchgear that
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is ready for the integration of renewable energy. The installation/construction of the system will
take place during the summer and fall of 2023 and these funds will be used as match for this
application. A total of $3,300,000 has been invested in this project and $247,075 is to be spent as
cash match to this application.
Additionally, the current distribution system was designed for the much higher loads of the Adak
Base, and when the military exited Adak, the community was left with oversized transformers,
inefficient distribution lines, etc. resulting in a line loss of more than 38%. TAG has spent the last 4
years replacing transformers and the line loss has been reduced to about 16%. TAG has invested
over $300,000 in this project to date.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. Provide letters of support, memorandum of understandings, cooperative agreements
between the applicant, the utility, local government and project partners. The documentation of
support must be dated within one year of the RFA date of October 4, 2022. Please note that letters
of support from legislators will not count toward this criterion.
This project is strongly supported by the community and other stakeholders. This is evidenced by
letters of support from the City of Adak and the Southwest Alaska Municipal Conference
(SWAMC), along with DeerStone Consulting and a board resolution from TDX. TAG and the City
have signed an MOA for re-location of the power plant and use of recovered heat from the gen-
sets in City Hall but this document is more than one year old so is not included here. However, this
is a concrete demonstration of collaboration and support for reducing energy costs in the
community.
Resolution – TDX Board Member – Chris Mandregan
Letter of Support – Layton Lockett, City Manager, City of Adak
Letter of Support – Dr. Brian Hirsch, Chief Executive Officer, DeerStone Consulting
Letter of Support – Shirley Marquardt, Executive Director, SWAMC
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by AEA for this or
any other project. Describe the degree you have been able to meet the requirements of previous
grants including project deadlines, reporting, and information requests.
TDX Power competitively won a $3 million USDA High Energy Cost Grant that will downsize and
relocate the existing power plant on Adak, as well as upgrade parts of the old transmission
infrastructure. This work will size the power plant appropriately to the present community load and
significantly reduce line loss.
TDX Power competitively won a $1.2 million microgrid grant from Department of Energy (DOE) that
will help identify and control issues associated with fast, medium, and slow response renewable
dispatchable loads.
Renewable Energy Fund Round 15
Grant Application – Standard Form
AEA 23046 Page 41 of 43 10/04/2022
TDX Power successfully intertied two, 225 kW wind turbines into the City of St. Paul’s electrical
distribution diesel system and has the City’s support for microgrid implementation.
TDX Power has successfully owned and operated a single 550 kW (gross capacity) high wind
penetration, wind-diesel system since 1999. This operates >20% of the year in wind-only mode
which allows diesel-off without any electrical storage. This system supplies reliable electricity and
heat to the Business Park and industrial area next to St. Paul airport.
TDX Power received AEA REF Round 3 funding for initial feasibility analysis of this proposed
project and successfully managed the grant, conducted the work, and reported and closed out the
project.
TDX Power received EPA DERA funding in 2020 for diesel gen-set replacement and power plant
upgrades in Manley Hot Springs. This project has been successfully completed including all
reporting and financial management approved by EPA.
TDX Power recently received USDA funding in 2022 for solar PV and battery installation in Manley
Hot Springs. This project is just now beginning.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below, please provide a list of additional documents attached to support completion of
prior phases.
1. Hydroelectric Reconnaissance Study by HATCH (dated 02/16/2013, AEA REF grant #
2195450)
2. Hydroelectric Feasibility Study by McMillen (dated 09/18/2013)
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
1.Siting Maps
2.Detailed Budget
3.Team Resumes
4.2022 Adak Petroleum Fuel Invoices
5.Canyon Hydro Quote
6.B/C ratio for 100 kW hydroelectric turbine
7.B/C ratio for 440 kW hydroelectric turbine
Renewable Energy Fund Round 15
Grant Application -Standard Form
SECTION 14 -ADDITIONAL DOCUMENTATION AND CERTIFICATION
ALASKA ENERGY AUTHORITY
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A.Contact information and resumes of Applicant's Project Manager, Project Accountant(s),
key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and
3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web site.
B.Letters or resolutions demonstrating local support per application form Section 9.
C.For projects involving heat: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant's governing
body or management per RFA Section 1.4 that:
•Commits the organization to provide the matching resources for project at the match
amounts indicated in the application.
•Authorizes the Individual who signs the application has the authority to commit the
organization to the obligations under the grant.
•Provides as point of contact to represent the applicant for purposes of this
application.
•Certifies the applicant is in compliance with applicable federal, state, and local, laws
including existing credit and federal tax obligations.
E.An electronic version of the entire application on CD or other electronic media, per RFA
Section 1.7.
F.CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful and
correct, and that the applicant is in compliance with, and will continue to comply with, all
federal and state laws including existing credit and federal tax obligations and that they
can Indeed commit the entity to these obligations.
Print Name
Signature
Title
Date 12/02/2022
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