HomeMy WebLinkAboutPoint MacKenzie Solar 2021.11.09 REF Round 14 Standard Application Form (Final) SignedRenewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 1 of 33 11/16/2021
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round 14 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/2021-
REF-Application.
What follows are some basic information and instructions for this application:
• The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year
solicitation cycle with an opt-out provision in the second year of the cycle.
• 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 14 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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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)
Point MacKenzie Solar
Tax ID #
Date of last financial statement audit:
Mailing Address: Physical Address:
9033 Washburn St Lot 1 David Bruce Ring Subdivision
Anchorage AK 99502
Telephone: Fax: Email:
907-317-5882 fthoerner@gmail.com
1.1 Applicant Point of Contact / Grants Coordinator
Name: Fred Thoerner Title: President
Mailing Address:
9033 Washburn St
Anchorage AK 99502
Telephone: Fax: Email:
907-317-5882 fthoerner@gmail.com
1.1.1 Applicant Signatory Authority Contact Information
Name: Fred Thoerner Title: President Point MacKenzie Solar LLC
Mailing Address:
9033 Washburn St
Anchorage AK 99502
Telephone: Fax: Email:
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
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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 #______, or
☒ An independent power producer in accordance with 3 AAC 107.695 (a) (1)
CPCN #______, or Point MacKenzie Solar LLC - 10118545
☐ 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/2021-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.
Point MacKenzie Solar
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 Longitude
[Other description of location]
Lot 1 David Bruce Ring Subdivision - Point MacKenzie - Alaska
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Point MacKenzie - Anchorage
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
☒ Feasibility and Conceptual Design ☒ Construction
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
This will be a Solar PV Facility, with installed capacity of 5.9 MW, highly reliable and most available
in the summer months, with 500 MWh average to be delivered each month. A 6 MegaWatt DC/5
Megawatt AC utility-scale solar farm is planned for the proposed system. The system will be
interconnected to the CEA power grid via a medium-voltage line extension to the site feeding the
two Y-Y 2.5 MVA transformers. Each of the two transformers will feed one of the two 4,000 Amp
service MDP’s with backfeed rated circuit breakers for collecting solar inverters. The 5 Megawatt
of AC rated inverters will be interconnected to the MDP’s by 480V 3 phase. The solar inverters will
collect the 6 MegaWatt of 480 Watt solar modules for conversion to AC power. The solar modules
will be mounted in a fixed position on a ground-mounted racking system positioned in rows to
maximize the use of the land available for the greatest overall efficiency. The DC wiring will be
operating at approximately 1,200 Volts DC per string providing 6 million KWh annually.
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.
• Phase 1 Initial Design and Interconnection Study, 1 year Grant Funds
• Phase 2 Engineering, Procurement and Construction 1 year
• Phase 3 Interconnection – 6 months
• Full Commercial Operation Date March 1, 2025
Cost Description Cost/watt Actual Cost
Module $0.50 $2,937,600.00
Inverters $0.07 $411,264.00
Pile, Pile driving and Clearing $0.13 $747,520.00
Structural Balance of System $0.13 $763,776.00
Electrical Balance of System $0.19 $1,116,288.00
Installation labor and equipment $0.15 $881,280.00
EPC Overhead $0.09 $528,768.00
Permitting Cost $0.01 $58,752.00
Interconnection Fee $0.14 $800,000.00
Transmission Line $0.02 $117,504.00
Developer Overhead/financing $0.11 $646,272.00
Contingency $0.03 $176,256.00
EPC/Developer Profit $0.04 $235,008.00
TOTAL $1.60 $9,420,288.00
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
N/A
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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 Initial Design and
Interconnection
Study
08/22 12/22
2 Engineering,
Procurement and
Construction
Module $0.50
$2,937,600.00
Inverters $0.07
$411,264.00
Pile, Pile driving and
Clearing $0.13
$747,520.00
Structural Balance of
System $0.13
$763,776.00
Electrical Balance of
System $0.19
$1,116,288.00
Installation labor and
equipment $0.15
$881,280.00 1/23 11/23
3 3 Interconnection Connect to Grid 1/24 6/24
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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 $ 1,000,000
Cash match to be provideda $
In-kind match to be provideda $ 250,000
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$ 9,420,288.00
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.
Property for project is acquired estimated value $220,000.00
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.
Contingency funds of $176,256 are calculated in project cost estimate.
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 [Estimated] $ See above
Feasibility and Conceptual Design [Estimated] $ See above
Final Design and Permitting [Estimated] $ See above
Construction [Estimated] $ See above
Total Project Costs (sum of above) Estimated $ 9,420,288
Metering/Tracking Equipment [not included in project
cost]
Estimated $
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.
• 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)
Tax incentives of 26%, 100% Bonus Depreciation, in addition to the Alaska Energy Authority
(AEA), Power Project Fund (PPF) loan program and the Renewable Energy Fund (REF).
Gross System Cost: $9,420,288
Federal Tax Credit (26%): $2,449,274100% Bonus Depreciation: $2,164,838
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Net System Cost: $4,806,176
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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 )
$ $ $
Interconnection Study 11/22 $ 25,000 $ $
Integration Study 11/22 $ 25,000 $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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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 )
$ $ $
$ $ $
Feasibility Study $ 25,000 $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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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 )
$ $ $
Permitting Cost $58,752 $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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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 )
$ $ $
Pile, Pile driving and
Clearing $ $ $747,520.00
Structural Balance of
System $ $ $763,776.00
Electrical Balance of System $ $ $1,116,288.00
Installation labor and
equipment $ $ $881,280.00
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $ 3,500,000.00
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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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.
Alaska Solar
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?
Fred Thoerner will responsible tracking progress and reporting to AEA.
Checklists, photo documentation, Excel Spreadsheets.
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
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
Only applicable costs will requested for reimbursement
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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.
Mike Kuchar of Kuchar Construction
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.
Lucas Parker of Kuchar Construction
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.
Fred Thoerner – Acquire Land
Alaska Solar - Initial Design and Interconnection Study
Kuchar Construction – Procurement and Construction
Chugach Electric – Integration – Connect to Grid
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
Local labor will be utilized – Kuchar Construction will hire additional crew.
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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.
The solar inverters will collect the 6 MegaWatt of 480 Watt solar modules for conversion to AC
power. The solar modules will be mounted in a fixed position on a ground-mounted racking system
positioned in rows to maximize the use of the land available for the greatest overall efficiency. The
DC wiring will be operating at approximately 1,200 Volts DC per string providing 6 million KWh
annually
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.
Solar will be most abundant in summer months. A crew will regularly sweep snow from panels in
winter to increase production.
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
Point MacKenzie Solar will abide by all federal, state, and local regulators
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.
Fred Thoerner, President of PMS LLC is the sole owner in fee of Lot 1 David Bruce Ring
Subdivision. This land consists of 33 acres located adjacent to the CEA Substation at Point
MacKenzie. An additional 14 acres to the north are also available for future expansion. Access in
winter is done from the CEA High Voltage Power line easement to and from Point MacKenzie
Road. No Lease Required. Access is also available from the beach of Cook Inlet as the land is
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waterfront. There are no zoning requirements for the land, as well as no covenants or restrictions
to hinder 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.
Interconnection will be difficult to the High Voltage Power Lines, but not impossible. More detail will
be provided with an Integration Study. The power provided by the sun will be based on daylight
and intensity. More sun is available in the summer months than in winter. Solar is known for low
maintenance, but we would have a plan in place with people ready to work in case of a loss of
power.
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
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and describe other potential barriers
No threatened or endangered species will be impacted, with no habitat issues and no wetlands, no
archaeological resources, no aviation impacts, no visual impacts, and no land development
constraints. No other environmental risks, as Solar is a clean renewable energy.
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
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current voltage, frequency, and outage issues across system. See the “Understanding the Existing
System” section of the appropriate Best Practice Checklist for additional guidance.
Chugach Electric Association Transfer Substation in area. The high voltage lines will require a
transformer to be able to connect to solar facility and provide power to low voltage lines connected
to residents of Point MacKenzie.
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:
Unit 2:
Unit 3:
Unit 4:
Unit 5:
Unit 6:
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.
Interconnection Study will determine.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Average
annual
efficiency
Year
Installed
Hours
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).
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
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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 (Type
1)
(kWh)
Generatio
n (Type 2)
(kWh)
Generatio
n (Type 3)
(kWh)
Fuel
Consumptio
n
(Diesel-
Gallons)
Fuel
Consumptio
n
[Other]
Pea
k
Loa
d
Minimu
m Load
January
February
March
April
May
June
July
August
Septembe
r
October
November
December
Total
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
August
September
October
November
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
iii. Replacement schedule and cost for
existing units
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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.
Energy demand for Anchorage and Point Mackenzie will only increase.
Summer will be peak generation of power.
See attached proposal.
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.
See attached proposal.
5.4.4.1 Proposed Power Generation Units
Unit # Resource/
Fuel type
Design
capacity
(kW)
Make Model Expected
capacity
factor
Expected
life
(years)
Expected
Availability
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5.4.4.2 Proposed Thermal Generation Units (if applicable)
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Expected
Average
annual
efficiency
Expected
life
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.
Enough power to:
Power about 800 homes
Prevent approximately 8 million pounds per year of carbon dioxide emissions
Equivalent to taking 2,000 large cars off the road
This project interconnection location is at Point MacKenzie near the Chugach Electric Association
Substation. PMS LLC will provide 12,500 Q-Cells Q.PEAK DUO XL 480W modules with a 25-year
warranty. Our objective is to develop and maintain the largest Solar Farm in Alaska, 5MW minimum,
on 33 acres of unrestricted bluff property adjacent to the Cook Inlet on Point MacKenzie. This location
is perfect to serve Anchorage as once construction is complete, the system will be connected to the
grid at the Chugach Electric Transfer Station only a few hundred yards away. This project has the
potential to be a huge win for everyone involved as well as the environment. The point of
interconnection is the CEA Substation located at Point MacKenzie and will cost approximately
$800,000.00. Point MacKenzie Solar Concept Plan, maps, images, and spec sheets are attached.
See attached proposal.
5.4.3.1 Expected Capacity Factor %
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
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Month Generation
(Proposed
System)
(kWh)
Generation
(Type 2)
(kWh)
Generation
(Type 3)
(kWh)
Fuel
Consumption
(Diesel-
Gallons)
Fuel
Consumption
[Other]
Secondary
load
(kWh)
Storage
(kWh)
January
February
March
April
May
June
July
August
September
October
November
December
Total
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
September
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. $
2. Hours diesel OFF/year:
3. $
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
($)
Annual
Units
Total
Annual
cost ($)
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 will be provided by Chugach Electric Association
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
Point MacKenzie Solar LLC will have the latest technologies storing operations and maintenance
data. All reporting will follow requirements identified in Section 3.15 Request for Appplications.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
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6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
Anticipated Fuel Displaced for Heat
(gallons)
Total Fuel displaced (gallons)
Anticipated Diesel Fuel Displaced for Power
Generation ($)
Anticipated Fuel Displaced for Heat ($)
Anticipated Power Generation O&M Cost
Savings
Anticipated Thermal Generation O&M Cost
Savings
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings
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/2021-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.
The people of Point MacKenzie will have access to clean renewable energy with the backing of the
grid provided by Chugach electric at the same rate as residents of Anchorage.
6.1.3 Economic Risks
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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
No risks are known at this time.
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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.
See attached proposal.
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
This project will result in developing infrastructure roads, trails, and power lines for the Point
MacKenzie community.
This project will promote and sustain long commercial economic development as it will provide the
needed power for production at Point MacKenzie. The tip of Point Mackenzie currently is not
connected to the grid.
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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
1.2 MW Willow Solar Farm. They are expanding.
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.
We anticipate per MWh price will be $70.00 per MWh per year (price is negotiable). Alaska Solar
proposal is based on 5.568 cents/KWh. PMS LLC will need to negotiate an annual increase in the
utility buy back rate to offset inflation and to reflect the cost of energy to make electricity (i.e., to
reflect the eventual increase in natural gas prices). Residential utility rates have increased 4.6%
annually over the last 20 years.
6,000,000 KWh by .07 Estimated Yearly Revenue $420,000.00
A Power Purchase Agreement will be in place with CEA to insure payment.
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)
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• 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)
Electric rates for CEA customers will remain the same.
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.
All energy will be sold to CEA at agreed rate. CEA will then be able to provide power to residents
of Point MacKenzie is they so choose.
SECTION 8 – PROJECT READINESS
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.
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Please see attached proposal.
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.
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 November 16, 2021. Please note that
letters of support from legislators will not count toward this criterion.
None
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.
None
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
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In the space below, please provide a list of additional documents attached to support completion of
prior phases.
Design
Cost Estimate
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
RFP provided to Chugach Electric Association 12.17.2021
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Must be authorized by the highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
Email Address:
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
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SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
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 Fred Thoerner
Signature
Title President
Date 1/13/2022
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