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HomeMy WebLinkAboutAPP_13003-REFRnd13KotlikWindApplicationSeptember 28, 2020 Karin St. Clair, Grants Manager Alaska Energy Authority ALASKA VIlLAGE ELECTRIC COOPERATIVE, INC. 813 West Northern Lights Boulevard Anchorage, Alaska 99503-2495 Attn: Renewable Energy Fund Grant Program Round 13: Kotlik Wind Energy Feasibility Study and Conceptual Design Project Dear Ms. St. Clair and Review Panel: The Alaska Village Electric Cooperative, Inc. (AVEC) respectfully submits the enclosed application for grant funds available through the Renewable Energy Fund Grant Program. The project would involve completing a wind feasibility analysis, resources assessment, conceptual design, and obtaining permits for a wind energy project in Kotlik. With funding obtained through AEA's program, AVEC would install a wind meteorological (met) tower and complete geotechnical work. The work will involve obtaining a letter of non-objection for placement of the wind tower and geotechnical fieldwork, permitting, transporting, and installing a met tower, studying the wind resource for one year, and conducting a geotechnical investigation to determine the soil conditions and needed engineering at the site. A conceptual design report will be created based on the outcome of the met tower recordings and geotechnical investigation . AVEC is seeking $237,500 from AEA under this proposal and would provide a 5% cash match of $12,500 for this work. Please do not hesitate to contact Mr. Button or my staff if you have questions. Sincerely, ~(1vft0; Meera Kohler President and CEO enclosures 4831 Eagle Street • Anchorage, Alaska 99503-7497 • Phone (907) 561-1818 • In State (800) 478-1818 • Fax (907) 563-9304 Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 1 of 39 7/20/2020 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) Alaska Village Electric Cooperative, Inc. Tax ID # 92-0035763 Not-for-Profit Date of last financial statement audit: December 2018 Mailing Address: Physical Address: 4831 Eagle Street 4831 Eagle Street Anchorage, AK 99503 Anchorage, AK 99503 Telephone: Fax: Email: 907.561.1818 800.478.1818 fbutton@avec.org 1.1 Applicant Point of Contact / Grants Manager Name: Title: Forest Button Manager; Project Development and Key Accounts Mailing Address: 4831 Eagle Street Anchorage, AK 99503 Telephone: Fax: Email: 907.646.5961 866.561.2388 fbutton@avec.org 1.1.1 Applicant Signatory Authority Contact Information Name: Title: Meera Kohler President and CEO Mailing Address: 4831 Eagle Street Anchorage, AK 99503 Telephone: Fax: Email: 907.565.5351 907.562.4086 mkohler@avec.org 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: n/a Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 2 of 39 7/20/2020 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 # 169 , 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 www.akenergyauthority.org/what-we- do/grants-loans/renewable-energy-fund-ref-grants/2020-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) Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 3 of 39 7/20/2020 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Kotlik Wind Energy Feasibility and Conceptual Design Project 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 Manager Karin St. Clair by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Latitude 63.034170 North Longitude 163.553330 West The city of Kotlik is located on the east bank of the Kotlik Slough, 35 miles northeast of Emmonak in the Yukon-Kuskokwim Delta. The city is 165 air miles northwest of Bethel and 460 air miles from Anchorage. Kotlik is located at approximately 63.034170 North Latitude and –163.553330 West Longitude. (Sec. 25, T028S, R026W, Kateel River Meridian.) 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The project will benefit the community of Kotlik, Alaska (population of 637 as of 2018). 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 Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 4 of 39 7/20/2020 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. Alaska Village Electric Cooperative, Inc. (AVEC) is requesting $237,500 and will provide a match of $12,500 to conduct a wind power feasibility and conceptual design project for the community of Kotlik. AVEC, with the cooperation of the community, proposes to assess the feasibility of wind resources suited to provide power to the community and to prepare a conceptual design of a wind facility. 2.5 Scope of Work Provide a short narrative for the scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. AVEC proposes to install and operate a meteorological (met) tower, collect a nd analyze wind data, analyze complete a reconnaissance-level geotechnical effort, and work with the community to determine the feasibility, location, turbine type, and conceptual design of a wind project in Kotlik. The effort would culminate in a Concept Design Report (CDR), including an alternatives evaluation and conceptual design, that could be used to seek future construction funding. 2.6 Previous REF Applications for the Project See Section 1.15 of the RFA for the maximum per project cumulative grant award amount Round Submitted Title of application Application #, if known Did you receive a grant? Y/N Amount of REF grant awarded ($) Round 6 Kotlik Wind Energy Feasibility and Conceptual Design Project 949 Not funded n/a Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 5 of 39 7/20/2020 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 Project scoping and contractor solicitation AVEC would select contractor(s) for the wind feasibility study, geotechnical analysis, CDR, and permitting immediately following AEA’s authorization to proceed. Aug 1, 2021 Aug 15, 2021 Contracts/task Orders 2 Detailed resources assessment AVEC would purchase or refurbish (as appropriate), ship, and install a met tower to bring online promptly in fall 2021. AVEC will identify a met tower site and obtain a letter of non- objection from the landowner, along with any other approvals from permitting agencies before the grant is awarded to expedite the start of data collection. AVEC would operate and monitor the met tower for one year, after which it will be dismantled. A wind resource report is to be drafted immediately following completion of data collection. Under this milestone, a preliminary geotechnical analysis would be done in October 2016. This work will help to guide later design work. Sep 15, 2021 Oct 31, 2021 Wind Resource Analysis Report and Preliminary Geotechnical Report Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 6 of 39 7/20/2020 3 Identification of land and regulatory issues AVEC would obtain a letter of non-objection for the placement of the met tower and geotechnical work. Based on the outcome of the wind study and meteorological data analysis, AVEC would identify a site for constructing wind infrastructure and initiate negotiations for site control for turbine(s) placement. Sep 1, 2021 Jun 1, 2022 Site Control Agreement for Met Tower Section in the CDR 4 Detailed analysis of current cost of energy and future market AVEC would analyze the existing and future energy costs and markets in Goodnews Bay. The information would be based on AVEC records and community plans. A community meeting would help determine future energy markets. Information regarding energy markets would be incorporated into the CDR. Feb 1, 2022 Mar 30, 2022 Section in the CDR 5 Assessment of alternatives AVEC would review turbine types and turbine locations to determine a recommended location and turbine system best suited for local conditions and community preferences. May 1, 2020 Sep 30, 2022 Section in the CDR 6 Conceptual business and operations plan This work is not needed. As an established and successful utility in rural Alaska, AVEC successfully operates wind projects and provides power to customers in numerous villages. n/a n/a n/a 7 Conceptual design report and costs estimate AVEC would examine various wind turbines to determine the best suited system to fit the lower energy demand and existing energy generation system in Kotlik. The reconnaissance level geotechnical study will support a conceptual design and cost Sep 1, 2022 Nov 1, 2022 Conceptual Design Report and Cost Estimate Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 7 of 39 7/20/2020 estimate which will be included in the CDR. 8 Detailed economic and financial analyses AVEC would conduct an economic and financial analysis to be conducted by examining potential final design and construction, operating and maintenance costs, user rates, and other fiscal components. This analysis will included be in the CDR. Jun 1, 2022 Aug 30, 2022 Section in the CDR 9 Permitting and environmental analysis AVEC would research and conduct consultations with agencies to determine needed environmental permits for construction the project. Sep 15, 2022 Dec 15, 2022 Section in the CDR 10 Final report and recommendations AVEC would combine all of the memoranda and reports written for the project in a final report for submission to AEA. The Final CDR will include the following information: • Wind Resource Analysis • Site Control Agreements • Existing and Future Energy Costs and Markets Analysis • Economic and Financial Analysis • Wind to heat agreements, if feasible • Geotechnical Report • Conceptual Design Report and Cost Estimate, including turbine evaluation Sep 15, 2022 Dec 31, 2022 Final Conceptual Design Report Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 8 of 39 7/20/2020 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 $237,500 Cash match to be provideda $12,500 In-kind match to be provideda $0 Energy efficiency match providedb $0 Total costs for project phase(s) covered in application (sum of above) $250,000 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. AVEC will commit a 5% cash contribution ($12,500) of the total cost ($250,000) of the Kotlik Wind Feasibility Study. 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. AVEC does not anticipate any cost increases or shortfalls in funding, basing the project budget on years of experience conducting feasibility studies for comparable communities in Alaska. However, cost overruns do happen – particularly in rural Alaska where extreme weather or logistical obstacles beyond AVEC’s control can increase the justified cost estimates. Should the project experience a funding issue, AVEC will seek alternative funding or allocate a larger cash match contribution. As AVEC has done in the past, it will cover any cost increase or shortfall in funding necessary to complete a started project. 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 $0 Feasibility and Conceptual Design Estimated $250,000 Final Design and Permitting Estimated $350,000 Construction Estimated $2,500,000 Total Project Costs (sum of above) Estimated $3,100,000 Metering/Tracking Equipment [not included in project cost] Estimated $400-1000 (dependent on results of feasibility study) Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 9 of 39 7/20/2020 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) Assuming wind energy proves to be a viable local energy resource and following successful completion of the Kotlik Wind Feasibility Study, AVEC will proceed with seeking funding for final design and construction for the project. Although the proposed feasibility study and CDR will be used to determine type, size, and number of turbines needed and subsequent costs, AVEC anticipates that final design and construction of a wind energy system in Kotlik will cost $350,000 and $2.5 million respectively, for a total capital cost of approximately $3.1 million. Recognizing the trend AEA has established for encouraging other-than-REF funds for construction phase projects, AVEC will research and apply for federal grants or grant/loan funds for the construction phase of this project. It is possible that the funding could come from a USDA Rural Utilities Service program , or another state or federal grant program. AVEC expects to provide a 10% cash match for the final design and construction phases of the Kotlik wind project. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 10 of 39 7/20/2020 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 Manager Karin St. Clair by email at grants@akenergyauthority.org or by phone at (907) 771-3081. 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 1. Project scoping and contractor solicitation Aug 15, 2021 $2,850 $150 Cash $3,000 2. Detailed resources assessment Oct 31, 2021 $33,250 $1,750 Cash $35,000 3. Identification of land and regulatory issues Jun 1, 2022 $7,600 $400 Cash $8,000 4. Detailed analysis of current cost of energy and future market Mar 30, 2022 $7,600 $400 Cash $8,000 5. Assessment of alternatives Sep 30, 2022 $7,600 $400 Cash $8,000 6. Conceptual business and operations plan Oct 31, 2022 $2,850 $150 Cash $3,000 7. Conceptual design report and costs estimate Nov 1, 2022 $ -- $ -- -- $ -- Geotech $39,900 $2,100 Cash $42,000 Concept Design $91,200 $4,800 Cash $96,000 8. Detailed economic and financial analyses Aug 30, 2022 $16,150 $850 Cash $17,000 9. Permitting and environmental analysis Dec 15, 2022 $11,400 $600 Cash $12,000 10. Final report and recommendations Dec 31, 2022 $17,100 $900 Cash $18,00 TOTALS $237,500 $12,500 $250,000 Budget Categories: Direct Labor & Benefits $15,200 $850 Cash $16,000 Travel & Per Diem $16,150 $850 Cash $17,000 Equipment $16,150 $850 Cash $17,000 Materials & Supplies $ -- $ -- -- $ -- Contractual Services $190,000 $10,000 Cash $200,000 Construction Services $ -- $ -- -- $ -- Other $ -- $ -- -- $ -- TOTALS $237,500 $12,500 $250,000 Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 11 of 39 7/20/2020 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. AVEC based the proposed project budget for this grant application and estimates for subsequent phases on experiences. AVEC has successfully completed wind resource feasibility studies and wind energy infrastructure projects in multiple remote Alaskan communities, including comparable projects in St. Mary’s and Mountain Village. Costs for final design and construction are based on lessons learned from recent projects including St. Mary’s, Stebbins, and Bethel. In addition, AVEC’s ample in-house knowledge of rural Alaska construction projects, wind turbine technologies, logistics, and the existing wind and c onstruction market have helped to determine potential future costs. 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? AVEC has systems in place to accomplish reporting requirements successfully. AVEC has received funding and successfully administered grants from AEA, Denali Commission, US Department of Agriculture, US Department of Energy, completing more than 100 major projects in its service area over the last 20 years. The project will be managed out of AVEC’s Projects Development Department. For financial reporting, the Projects Development Department’s accountant, supported by the Administrative Services Department, will prepare financial reports. The accountant will be responsible for ensuring that vendor invoices and internal labor charges are documented in accordance with AEA guidelines and are included with financial reports. AVEC has sophisticated systems in place for accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. AVEC will require that monthly written progress reports be provided with each invoice submitted from primary contractor(s). The progress reports will include a summary of tasks completed, issues or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project progress reports will be collected, combined, and supplemented as necessary and forwarded as one package to the AEA project manager each quarter. Because AVEC is responsible to its member communities and a board of directors, staying on schedule and within budget is essential. This project will result in clean, renewable energy from a wind farm and decreasing electricity costs for two rural, isolated, and impoverished communities. AVEC’s member communities are very interested in this project because their energy costs can be a Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 12 of 39 7/20/2020 large portion of their budgets. AVEC member communities expect status updates on village projects, including when and what work will occur, who will be involved, and when it will be completed. Community members are also able to contact AVEC’s CEO and Board of Dire ctors directly if they have an inquiry or concern about a project. An independent auditor’s report on compliance for each major federal program and report on internal control over compliance required by Title 2 CFR 200 (Uniform Guidance) for AVEC in 2019 did not identify any deficiencies in internal control the auditor considered to be a material weakness. In addition, the independent auditor’s report on compliance with aspects of contractual agreements and regulatory requirements for AVEC in 2019 stated that nothing indicated AVEC failed to comply with the terms, covenants, provisions, or conditions of loans, grants, and security instruments as specified in 7 CFR part 1773. Quarterly face-to-face meetings will occur between AVEC and AEA to discuss the status of all projects funded through the AEA Renewable Energy Grants program. Individual project meetings will be held, as required or requested by AEA. Forest Button will be responsible for tracking progress of project communications and Meera Kohler, AVEC’s President and CEO, may be contacted as an alternative manager. 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. AVEC’s accounting system consists of software, procedures, and controls driven by the daily inputs and other actions of competent employees throughout the organization. The software is comprised of a comprehensive suite of Daffron-brand modules including accounting (payables/payroll/general ledger), work orders, purchase orders, customer service and billing, and warehouse/inventory. Some ancillary functions are accomplished on spreadsheets with data downloaded from the various Daffron modules. Procedures and controls include but are not limited to adequate separation of duties, manager-level approval of all expenditures, CEO-level approval of all major expenditures, a formal purchasing system (including purchase orders) for acquisition of materials and components, and a formal contracting system for acquisition of contractual services (consultants, construction contractors, etc.). Accounts payable are processed and recorded by the AVEC Account ing Department, all expenditures are coded to budget categories and assigned to appropriate work orders. The Projects Development and Key Accounts Department, particularly its Project Manager, and its Senior Accountant; are primarily responsible for all grant reporting. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 13 of 39 7/20/2020 AVEC’s team, with years of experience and knowledge of managing AEA-funded project costs and grant reimbursements, has a system in place for ensuring that only costs that are reasonable, ordinary, and necessary are charged to a project, and that only costs that are eligible are submitted for reimbursement. First, AVEC’s Project Manager (PM) is responsible for determining whether costs are appropriate and acceptable. The PM reviews all invoices from contractors and vendors and all in-house labor and equipment charges. Second, the Projects Development and Key Accounts Department Manager (DM) reviews costs associated with outsourced services, including consultant and contractor invoices, to ensure that the charges are reasonable. The DM also reviews his department’s staff labor charges (timesheets) to the project. Third, the Operations and Engineering Department Managers review all in-house labor (timesheets) and expense reports for their respective departments to make sure that the charges are acceptable. Finally, the Projects Development and Key Accounts Department Senior Accountant, while preparing AEA financial reports and reimbursement requests, provides a review of both outsourced and in -house charges to determine whether they are allowable costs. The Senior Accountant is very experienced with REF grant reporting and grant agreements and understands what costs would be accepted by AEA. AVEC has systems in place to keep unacceptable overhead costs from being charged to and reimbursed through the REF Grant Fund Program. Upon project initiation, an AVEC work order number is created to track all project labor and expenses. AVEC staff and contractors reference this number on all timesheets and invoices when working on the project, ensuring that project costs are known. Purchase orders are universally used to establish spending limits for purchases of materials, which are then monitored by the Accounting Department through the enterprise accounting system. Task orders and contracts are universally used to establish spending limits for purchases of contractual services, which are then monitored by the Projects Development and Key Accounts Department utilizing spreadsheets. Direct labor expenses (gross payroll) are tracked separately from overhead costs including employee benefits and payroll taxes. Once labor hours have been calculated, overhead including employee benefits and payroll taxes are applied in a separate transaction on the work order. AVEC and AEA have an agreed rate cap for employer costs of payroll, consisting only of employee benefits and payroll taxes. AVEC can ensure that only allowable costs would be requested for reimbursement because the direct labor and indirect/overhead costs are separate transactions (and thus the indirect/overhead amounts can be easily omitted from reimbursement), and because the allowable rate has been established and agreed upon (and thus can be easily included for reimbursement). Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 14 of 39 7/20/2020 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. Forest Button is the Project Manager and has served as manager of the Projects Development Department for AVEC since 2016 where he leads a team focused on stabilizing the cost of energy in rural Alaskan villages through improved power plant efficiency, wind and other renewable power generation, and interties between villages. Previously, Mr. Button worked as a project manager under contract to AVEC. He was responsible for the management of the design and construction of capital projects and has 25 years of experience managing construction projects throughout Alaska. Mr. Button has a degree in Mining Engineering from the University of Alaska, Fairbanks. 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. Debbie Bullock is the Project Accountant and is the Manager of Administrative Services at AVEC. Ms. Bullock has been employed with AVEC since 1993 and is responsible for all administrative and financial records. She is responsible for preparing grant reports, Regulatory Commission of Alaska rate filings, financial forecasts, budgets and PCE reports, as well as overseeing the day-to-day office operations. Ms. Bullock has worked for previous employers as an office manager, bookkeeper, and held a tax internship where she prepared individual, partnership, and corporate tax returns. Ms. Bullock has a BBA in accounting and has attended various specialized training programs in her area of expertise including National Rural Electric Cooperative Association’s management internship program. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 15 of 39 7/20/2020 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. AVEC would use a project management approach that has been used to successfully design and construct wind turbines throughout rural Alaska: a team of AVEC staff and external consultants. AVEC staff and their role on this project includes: • Meera Kohler, President and Chief Executive Officer, would act as Project Executive and will maintain ultimate programmatic and financial authority. • Forest Button, Manager, Community Development and Key Accounts, would lead the project management team consisting of AVEC staff, consultants, and contractors . Mr. Button will be the program manager for this project and will assign project manager resources to implement the project. He will also be responsible for reporting directly to AEA on the status of the project. Together with his group, Forest would coor dinate the wind data analysis, geotechnical work, conceptual design, and the concept design report. • Daniel Allis, Manager of Operations, would provide oversight and input in planning for construction, distribution, and energy generation components of th e project. • Bill Stamm, Manager of Engineering, would provide technical assistance and information on the existing power system, possible issues, and project study needs. • Debbie Bullock, Manager of Administrative Services, would provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. • Anna Sattler, Community Liaison, would communicate directly with Kotlik residents to ensure that the community is informed. It is likely that one of AVEC’s in-house contractors would lead the work. They would be responsible for: • Obtaining site control/access and permits for geotechnical work • Selecting, coordinating, and managing the wind resource, geotechnical, engineering, and permitting consultants and ensuring that deliverables are on time and within budget • Develop the existing and future energy costs and markets information and the conceptual business and operating plan • Working to develop the economic and financial information Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 16 of 39 7/20/2020 Contractors for this project would include: • Wind Resource Consultant: AVEC currently has an on-call contract with V3 Energy, LLC for wind resource studies and reports. Doug Vaught’s (V3’s owner) resume is attached. V3 would: - Consult on the installation, operation and maintenance of the tower - Draft the wind resource report • Geotechnical consultant: AVEC would select and employ an experienced geotechnical consultant who would: - Conduct a reconnaissance level geotechnical and natural hazards field study and report of the project area • Engineering consultant: AVEC would select and employ an engineering consultant who would: - Provide conceptual design and engineering specifications for the wind turbines • Environmental Consultant: AVEC currently has an on-call contract with Solstice Alaska Consulting, Inc. for environmental permitting. Robin Reich’s (Solstice’s president) resume is attached. Solstice would: - Consult with agencies - Develop and submit permit applications for the met tower - Document permit needs and environmental requirements for a future wind project Selection Process for Contractors: The geotechnical and engineering consultant selection would be based upon technical competencies, past performance, written proposal quality, cost, and general consensus from an internal AVEC technical steering committee. The selection of the consultant would occur in strict conformity with AVEC’s procurement policies, conformance with OMB circulars, and DCAA principles. Resumes for all key staff, partners, and consultants can be found attached in Tab A. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. Recognizing that local labor is good for communities and families, AVEC uses local labor whenever possible for daily operations and special projects. Local wages circulate, often multiple times, within the community thereby benefitting the community as a whole. AVEC is very proud of its training program wherein power plant operators are trained by an itinerant training supervisor who travels continuously to AVEC communities and works one-on-one with the operators as needed and throughout the year. It is typical that local labor saves money as demonstrated when comparing local labor wages against imported labor wages, travel, and per diem. Therefore, AVEC addresses local labor in its bid documents as appropriate and allowed by law. For example, part of the Contractor’s Responsibilities in the Emmonak wind project bid documents says: Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 17 of 39 7/20/2020 “Local Labor and Local Firms Participation Goal: The participation goal for this project has been established as a percentage of the total dollar amount awarded to the successful bidder in the amount of 20% to local labor and local firms. The successful bidder shall provide the Owner documentation to demonstrate compliance with this goal. If this goal cannot be reached and good faith efforts were demonstrated through documentation to the Owner, the Owner has the right to issue a variance to this section.” Also, from the New Stuyahok power plant bid documents: “Use of Local Labor and Local Firms: To the maximum extent practicable, CONTRACTOR shall accomplish the Project using local labor and Alaska firms.” Assuming the proposed wind feasibility study shows wind to be a viable resource in Goodnews Bay, AVEC will include language similar to above in the construction bid documents and contract. In most AVEC communities, the power plant operators are employees of their city government. Through a contract process, AVEC reimburses the city for the wages and fringe benefits of the power plant operators. During project feasibility, design, and construction phases, plant operators provide necessary assistance; typically, with tasks like taking photographs, changing met tower sim cards, and hosting and assisting engineers and others coming into the community for project work. AVEC intends to hire a local contact to maintain the met tower and periodically download d ata. Assuming the proposed wind feasibility study shows wind to be a viable resource in Kotlik, AVEC will require the selected construction contractor to use local labor. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 18 of 39 7/20/2020 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. According to existing knowledge and wind feasibility studies conducted for comparable communities in the Lower Kuskokwim region, it is assumed Kotlik is rated as a class 4 wind regime. The purpose of the feasibility study is to collect local wind data and conduct a thorough analysis to determine the wind energy potential in the community. 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. Wind energy has proven a viable energy resource in multiple AVEC communities with similar environmental and climate conditions, including Bethel and Mountain Village. Barging in diesel fuel is the primary source of local power, which is costly. Other alternative energy resources (solar, hydro, and geothermal) are not anticipated to be as cost effective or viable as wind energy. 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 FAA Air Navigation Hazard Permitting: The met tower placement would be selected based on airspace availability and limitations to meet the FAA’s Notice Criteria. If the project proves to be feasible, AVEC would seek a no-hazard determination from FAA for the potential turbines after the turbine location and type have been selected. AVEC would do this early in the process to ensure that adequate time and resources are allocated to this effort. It is expected to take about 3 months to obtain the FAA determination for the turbines. Endangered Species Act/Migratory Bird Treaty Act Consultation: Consultation with the U.S. Fish and Wildlife Service (USFWS) in compliance with the Endangered Species Act and Migratory Bird Treaty Act would be required to install the met tower. A finding letter stating that the project would Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 19 of 39 7/20/2020 not be expected to impact threatened or endangered species or birds would be drafted and submitted to the USFWS once AVEC is assured the design and construction of this project is funded. It is expected that AVEC would receive concurrence from the Service within one month. The authorization would be issued prior to initiating met tower work in September 20 21. Clean Water Act (Section 401) Permit: Because many locations within Kotlik are wetlands, it is possible that a wetlands permit would be needed from the U.S. Army Corps of Engineers (Corps) for to install the met tower and to conduct geotechnical work. Based on an expected limited footprint, a “Nationwide Permit” would be sought for the effort. The application/preconstruction notice would be submitted to the Corps once funding is assured. 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. AVEC has not determined a location for the placement of the met tower. AVEC will consult with the local municipality and other land owners to select a site and to obtain site control for placement of the met tower and conducting geotechnical fieldwork. A letter of non-objection will be sought from the corporation or city, depending on location, after project funding is assured. Starting with a community meeting to announce that the project has been funded, AVEC’s community liaison will lead the effort to gain site control. Since the major landholders support the project (see attached letters of support, Tab B), site control is not expected to be an obstacle to the placement of the met tower and conducting geotechnical fieldwork. 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. Site Control/Access: Sometimes site control for the placement of met towers or turbines is difficult; however, because the community supports the project (letters of support have been received from all community entities), it is not expected that gaining site control would be difficult. Turbine Selection: AVEC will have to identify a suitable turbine which will involve AVEC managers, consultants, and the community working together to determine the best choice for the community’s system. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 20 of 39 7/20/2020 Weather: Weather could delay geotechnical fieldwork and/or the erection of the met tower; however, experienced consultants and contractors, familiar with Alaskan weather conditions, would be selected. It is unlikely that a delay in the total project schedule would occur if the fieldwork or erection of the met tower is delayed. It is possible to erect the met tower during winter months. The met tower would be installed to handle Kotlik’s winter weather conditions. The met tower would be monitored by local AVEC personnel to ensure the met tower is up and functioning properly throughout the year. Permitting: Permits for the met tower would be acquired, including approvals for the Federal Aviation Administration and the U.S. Fish and Wildlife Service. AVEC would hire an environmental consultant familiar with permitting wind projects in Alaska. Early consultation with agencies would occur in order to flesh out location, natural and social environment, specific species, and mitigation issues. The consultant would work openly with the agencies and co nduct studies as appropriate. 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 Threatened or endangered species: The U.S. Fish and Wildlife Service would be consulted to ensure that installation of a met tower would have no effect on threatened or endangered species. If clearing is required for the installation of the met tower, it would be timed to avoid impacts to migratory birds in compliance with the Migratory Bird Treaty Act. Habitat issues: During permitting, the project team would work with agencies to ensure that the project would not impact any State refuges, sanctuaries or critical habitat areas, federal refuges or wilderness areas, or national parks. Wetlands and other protected areas: If the met tower or wind project location are proposed in a designated wetlands area, a U.S. Army Corps of Engineers’ wetlands permit would be secured. Archaeological and historical resources: Compliance with the National Historic Preservation Act and consultation with the State Historic Preservation Officer would be conducted prior to construction of the wind turbines. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 21 of 39 7/20/2020 Land development constraints: No land development constraints are currently identified; however, if any should arise, AVEC will work with the appropriate agencies to ensure the project is in compliance. Telecommunications interference: The met tower and wind project location would be placed in a location that would not interfere with the telecommunications service. Aviation considerations: Met tower placement would be selected based on airspace availability and limitations to meet the FAA’s Notice Criteria. The wind project location would be selected based on airspace availability and limitations to meet the FAA’s Notice Criteria, and a no-hazard determination would be sought from the FAA as soon as the wind project location has been finalized. Visual, aesthetics impacts: If final data supports placement of wind turbines, AVEC will conduct community meetings to discuss visual impacts and how they could be mitigated. 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. The existing power generation system in Kotlik consists of 4 diesel generators in a three -phase electrical system: two 350 kilo-watt (kW) Cummins K19G2 1200 and two 500 kW Cummins K19G4 1800. The plant operator selects which engine to run and manually controls which engine(s) are on line. The most efficient available engine is used to meet the load. All engines were installed in 2001. Individual generator efficiency is not tracked, but the aggregate diesel generator efficiency in 201 9 was 12.89 kilo-watt hours per gallon (kWh/gallon). The plant has an underground fuel supply line from the new consolidated bulk fuel storage tank facility to a 4,000-gallon day tank. 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 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). Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project Unit 1: Diesel generator, Cummins K19G2, 350 kilo-watt (kW), 50 kW min, 1200 RPM, mechanical fuel injection (FI), 40,000 hours, installed 2001 Unit 2: Diesel generator, Cummins K19G2 ,350 kW, 50 kW min, 1200 RPM, mechanical FI, 48,000 hours, installed 2001 Unit 3: Diesel generator, Cummins K19G4, 500 kW, 50 kW min, 1800 RPM, mechanical FI, 42,000 hours, installed 2001 Unit 4: Diesel generator, Cummins K19G4, 500 kW, 50 kW min, 1800 RPM, mechanical FI, 46,000 hours, installed 2001 Unit 5: Unit 6: Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) No 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 Kotlik Power plant generates at 277/480V three phase. There are three breakers that distribute power from the main bus to three, single-phase step up transformers rated at 167KVA each. The distribution voltage is 7200/12470 grndy. All distribution is overhead. There is three-phase distribution through the main part of town that feed the school, the water plant, and the fish plant. There are also single-phase radial lines that go into residential areas. 5.4.2.3 Existing Thermal Generation Units (if applicable to your project) n/a 5.4.2.4 O&M and replacement costs forexisting units i. Annual O&M cost for labor ii. Annual O&M cost for non-labor iii. Replacement schedule and cost for existing units Power Generation Thermal Generation $28,000 Based on AVEC aggregate number AEA 21010 Page 22 of 39 7/20/2020 Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 23 of 39 7/20/2020 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 Generation (Diesel) (kWh) Generation (Type 2) (kWh) Generation (Type 3) (kWh) Fuel Consumption (Diesel- Gallons) Fuel Consumption [Other] Peak Load (kWh) Minimum Load (Assume d ½ Average Load) January 195,029 14,610 424.0 48.10 February 178,333 13,340 389.0 48.10 March 177,538 13,360 359.0 44.54 April 169,998 13,320 343.0 44.54 May 161,684 12,830 389.0 39.06 June 138,815 11,110 270.0 31.47 July 140,606 15,260 309.0 30.54 August 141,511 11,020 315.0 33.56 September 159,439 11,700 313.0 44.02 October 164,080 11,710 330.0 40.88 November 171,881 12,450 334.0 43.91 December 211,448 15,850 327.0 50.82 Total 2,010,362 156,560 341.8 41.63 5.4.2.6 Annual Heating Fuel Consumption (Existing System) n/a 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. Based on U.S. Census data, Kotlik’s population has grown by about 7% in the last ten years (pop. 601 in 2010 to pop. 649 in 2019), suggesting trends in energy demands for the existing diesel generator system could possibly increase, although not substantially. Currently there are no known plans for other population or energy increase drivers (fish processing plant, platinum mining, etc.); however, additional information will be gathered during CDR phase to more accurately determine future trends. Diesel energy costs in Kotlik are high and require subsidizing power costs through Alaska’s Power Cost Equalization program. Since energy demand could moderately increase in the foreseeable future, wind energy development could be used to reduce the cost of energy and offset energy production from diesel fuel. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 24 of 39 7/20/2020 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. Renewable energy technology: AVEC plans to conduct a feasibility analysis, resource assessment, and conceptual design to assess the possibility of using wind power in Kotlik. In every deployment the integration of intermittent generation to the energy grid is a key component to a successful project. This feasibility study is intended to determine how a wind energy project could be properly integrated in to the existing power system and have a meaningful impact on diesel consumption or if a larger project including necessary system upgrades would be recommended . If the wind resource proves suitable and funding is obtained, wind turbines would be installed to serve the community. Currently, AVEC anticipates that a 300-kW capacity system could be installed; however, this study will assist in determining the best wind energy generation alternative. Proposed capacity/capacity determination: The purpose of this work is to gather background information to plan a future alternative energy facility. Anticipated capacity and generation would be examined to determine the best turbine option and number, secondary load options, and control schemes for the community. The impact on heat recovery would also be considered to determine the best capacity options for the community. Integration plan: The wind turbines would need to interconnect with the existing diesel powe r plant. Secondary load control could dispatch boilers or charge energy storage systems as required to use excess wind energy. Depending on the complexity of the proposed system, the diesel generators would continue running at minimum levels, or be allowed to go diesel-off. Conceptual design, to be completed as a part of this project, would detail how power from a wind turbine would be integrated and delivered into the existing system in Kotlik. Civil infrastructure: Civil infrastructure access to a met tower to be included in implementation of the proposed feasibility study. Assuming wind energy proves a viable resource in Kotlik, access roads to and pad foundation support for wind turbines will be included in the concept design and subsequent final design and construction phases of the project. Backup/supplemental system: The existing power plant with diesel fuel generators and the existing power distribution system will be maintained to provide for the full power needs of the community. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 25 of 39 7/20/2020 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 1 Wind 100 TBD TBD TBD 20 2023 2 Wind 100 TBD TBD TBD 20 2023 3 Wind 100 TBD TBD TBD 20 2023 5.4.4.2 Proposed Thermal Generation Units (if applicable) n/a 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 wind turbines would need to interconnect with the existing diesel power plant. Secondary load control would be studied to determine whether dispatch boilers could be installed to use excess wind energy while allowing the diesel generators to continue running at efficient levels. Conceptual design, to be completed as a part of this project, would detail how power from a wind turbine would be integrated and delivered into the existing system in Kotlik. A wind energy system in Kotlik will be designed to operate with the existing diesel generation. The existing system will operate at a lower capacity to supplement wind energy depending on fluctuations in available wind. Wind will be the primary energy source and contribute significantly to the existing energy system, but the diesel generators will remain online to ensure consistent energy access during wind fluctuations and function as a backup should wind energy go offline at any point. The proposed system will not alter the heating system or transportation needs. Kotlik will be dependent on heating oil for home heating, and diesel and gasoline fuel for transportation needs. The anticipated effect of the proposed system is a decrease use of fuel for electrical power generation. Also, the power generator use in Kotlik would be decreased, thereby decreasing generator operations and maintenance costs, enabling generators to last longer and need fewer overhauls 5.4.5.1 Expected Capacity Factor 24% Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 26 of 39 7/20/2020 5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System) Month Generation (Proposed System - Wind) (kWh) Generation (Type 2 - Diesel) (kWh) Generation (Type 3) (kWh) Fuel Consumption (Diesel- Gallons) Fuel Consumption [Other] Secondary load (kWh) Storage (kWh) January 52,500 142,529 11,055 February 52,500 125,833 9,760 March 52,500 125,038 9,699 April 52,500 117,498 9,114 May 52,500 109,184 8,469 June 52,500 86,315 6,695 July 52,500 88,106 6,834 August 52,500 89,011 6,904 September 52,500 106,939 8,295 October 52,500 111,580 8,655 November 52,500 119,381 9,260 December 52,500 158,948 12,329 Total 630,000 1,380,362 107,070 5.4.5.3 Annual Heating Fuel Consumption (Proposed System) n/a 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. $700 (this phase) $31,500 (construction project phase from AVEC’s own data-based estimation of $0.050/kWh for wind energy) 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. $ n/a 2. Hours diesel OFF/year: n/a 3. $ n/a Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 27 of 39 7/20/2020 5.4.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of operation - 2024) Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood Other Unit cost ($) 3.27 Annual Units 107,070 Total Annual cost ($) 350,119 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. Because this project involves feasibility, geotechnical and conceptual design work only, no meter would be installed. AVEC installs meters on all renewable projects (primarily wind turbines) and will install a meter turbine for this wind energy construction project. Metering equipment specifications and costs would be determined during the proposed conceptual design work and subsequent final design project phases. When this project is constructed, it is likely that the meter would be an Elster 16s (part number ZD3300K0082). This meter costs about $400. 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 As a cooperative, AVEC pools O&M costs of all member communities. Based on existing wind turbines, current annual O&M costs are approximately $28,000. kWh. The met tower would require monthly monitoring and data management. It is expected that this would cost $700 total for the year that the met tower is erected. The cost would be funded by this grant. If the turbines prove feasible, their maintenance would be funded by AVEC’s general operating costs. If the turbines prove feasible, their maintenance would be funded by AVEC’s general operating costs. Estimated O&M costs for the proposed wind project are $31,500 based on AVEC’s rate of $0.50 per kWh. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 28 of 39 7/20/2020 SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power Generation (gallons) 43,448 868,960 Anticipated Fuel Displaced for Heat (gallons) 0 (TBD) 0 (TBD) Total Fuel displaced (gallons) 43,448 868,960 Anticipated Diesel Fuel Displaced for Power Generation ($) 116,984 (first year) 132,957 (average) 2,659,140 Anticipated Fuel Displaced for Heat ($) 0 (TBD) 0 (TBD) Anticipated Power Generation O&M Cost Savings 0 0 Anticipated Thermal Generation O&M Cost Savings n/a n/a Total Other costs savings (taxes, insurance, etc.) 0 0 Total Fuel, O&M, and Other Cost Savings $116,984 $2,659,140 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 www.akenergyauthority.org/What-We-Do/Grants- Loans/Renewable-Energy-Fund-REF-Grants/2020-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 purpose of the proposed feasibility study and CDR is to assess technical and economic viability of wind infrastructure in Kotlik. The installation of a 300-kilowatt (kW) capacity system in Goodnews Bay is estimated to produce 630,00 kilowatt hours (kWh) annually. Based on this assumption, the possible displacement of diesel fuel used for electricity generation would be approximately 43,448 gallons per year. Using AEA’s community fuel oil price projections, this project could save $116,984 during the first year of operation. Over the life of the project, the estimated savings would be $2,659,140. Please see the attached economic evaluation model in Tab G. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 29 of 39 7/20/2020 While the AEA evaluation model indicates the proposed project may not pay for itself in a 20 -year life span, AVEC intends to utilize this intermediate phase of the project to identify an economically viable system for wind energy in Kotlik. Savings could b e enhanced with a possible phased capacity expansion following the initial design and installation of the proposed 300 kW system. A 300 -kW wind energy system will only supply a portion of the existing energy demand in Kotlik. Assuming wind proves to be a viable resource and the proposed 300 kW system is installed, AVEC will consider expanding upon the proposed system to meet a larger share of local energy demand. More information and analysis are needed to determine all project benefits. Kotlik qualifies for Alaska’s power cost equalization program, providing economic assistance to communities with high energy costs and subsidized energy rates up to 500 kWh. The average annual price for residential electricity without PCE is $0.57 per kilowatt hour (kWh) as of March 2020. This far exceeds the national benchmark. The residents of Kotlik would benefit from this project as it would mitigate the volatile energy costs found in rural Alaska. Immediate savings from this project will directly benefit AVEC and reduce Kotlik’s dependence on the PCE program. The high cost of energy is an extreme hardship for the low-income families of Kotlik, even considering PCE credits. Un-subsidized energy costs are expected to decrease for residents and commercial entities in Kotlik, providing immediate savings. Reduced energy costs for non-PCE community institutions may allow for increased or improved community or social services. Similarly, reduced energy costs for other non-PCE commercial energy customers such as stores that might pass along savings to residents. The primary source of income for the majority of Kotlik is from commercial fishing for herring and salmon. All fish processing is currently done in other communities. Local infrastructure offers limited jobs at the Kotlik School, the Kotlik City and Utilities offices, the Tank Farm, the Village Corporation office, health clinic, HeadStart, tribal councils, the U.S. Postal Service, and the two stores located in Kotlik. Subsistence living combined with job scarcity is reflected in a high unemployment rate, approximately 36.2%, and low median household income of $38,750 (based on 2018 American Community Survey 5-year estimates). The Kotlik Community Development Planning Board has identified many critical and long-term needs of the community. Many community-use buildings are old and heating them is inefficient. The high cost of electricity is a constraint to fulfilling the needs of maintenance, repair and development within the community. Stabilizing the rising costs of energy production would ease the burden felt by the residents and allow for progress in achievement of community goals. Sources: Kotlik Community Development Plan, Alaska Community Database Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 30 of 39 7/20/2020 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 Economic risks from this project are primarily from the high startup costs, and economic viability is dependent on successful implementation and operation of wind energy infrastructure over a 20- year lifetime. Wind energy has proven an economically viable option for multiple communities in the lower Yukon-Kuskokwim region, including the nearby villages of Stebbins and Saint Mary’s. AEA projections suggest the cost of fuel in Kotlik to increase for the foreseeable future, suggesting costs for continued dependence on diesel powered electricity in Kotlik could become prohibitive. With implementation of wind energy, energy costs will likely stabilize and help to ensure jobs in the community and a reliable energy market. Success of this project is dependent on maintenance of the existing energy infrastructure and the distribution system. AVEC has a complete and thorough process for tracking and maintaining energy infrastructure in all 58 communities the cooperative serves. 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. Not applicable to this project. 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 ($) Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 31 of 39 7/20/2020 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 Other public benefits from the proposed project include p roviding a reliable renewable resource would benefit all of Alaskans as it mitigates potential hazardous environmental incidents that could threaten water and land resources. Implementing wind infrastructure and reducing dependency on diesel powered electricity will reduce the potential for fuel spills or contamination, improve air quality, and decrease reliance on fossil fuels. Wind energy supports the Kotlik Community Vision: “Protect subsistence, the environment and our Culture while improving our livelihood.” Data from this project will provide important information regarding wind resources in rural Alaska to be applied in future projects. Kotlik is an isolated village that relies on air transportation for many essential resources. Reliable electric service is essential to maintaining vital navigation aids for the safe operation of aircraft. Runway lights, automated weather observation stations, VASI lights, DME’s and VOR’s are all powered by electricity. This project could lead to lower airport operating costs. Emergency medical service (EMS) is provided in a health clinic by a health aide and a Kotlik volunteer fire and EMS response team. Medical problems and emergencies must be relayed by telephone or by some other communication means for outside assistance , requiring electricity. Operation of the health clinic and medical equipment is also dependent on an affordable electric service, which a wind system in Kotlik could provide. Like all of Alaska, Kotlik is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting. Outside lighting greatly improves the safety of village residents. This project could help reduce the costs associated with lighting the community, which could leave more funds available for other community programs and infrastructure. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 32 of 39 7/20/2020 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 As a local utility that has been in operation since 1968, AVEC is completely able to finance, operate, and maintain this project for the design life. AVEC has capacity and experience to operate this project. AVEC has operating wind projects throughout the state and is very familiar with planning, constructing, operating, and maintaining wind systems. See section 10 for a complete discussion of AVEC’s success with similar or related long-term operations. AVEC has a large and geographically diverse staff capable of operating and maintaining energy infrastructure. Immediate tasks during this project phase include operation and maintenance of the met tower, coordinated between AVEC and a local-hire technician. AVEC will follow established and proven protocols for training existing and future employees to operate and maintain the proposed system. Throughout AVEC’s time as a leading energy cooperative, AVEC has had success with training and onboarding for multiple comparable wind energy infrastructure projects in Alaska. See section 4 for a detailed discussion of key personal assigned to ensure successful completion of this project. AVEC will used tracking protocols already in practice to track necessary supplies for the proposed feasibility study and conceptual design report, along with any subsequent project phases. Should wind power prove a viable resource in Kotlik and AVEC successfully implements wind energy infrastructure, local wind turbine(s) would be incorporated into AVEC’s established and proven power plant operation and maintenance system. Local plant operators provide daily servicing. AVEC technicians provide periodic preventative or corrective maintenance and are supported by AVEC headquarters staff, purchasing, and warehousing. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 33 of 39 7/20/2020 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. AVEC has well established and proven processes in place to account for operation and capital costs, setting rates, ensuring revenue is collected, and maintaining financial sustainability of infrastructure over their operational lives. The costs of operations and maintenance of the proposed project would be funded through ongoing energy sales. Different turbines have different operating costs; however, using AEA’s default cost of O&M for rural wind energy, estimated O&M for this project is would cost $31,500 annually (assuming AVEC’s own justified standard of $0.050/kWh for wind energy). Commitment to reporting the savings and benefits: AVEC is fully committed to sharing the savings and benefits information accrued from this project with its member owners and with AEA. 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) Given that this project is in the concept design stage, revenue and incentives are unknown. Tax credits are not expected to be beneficial to the project due to AVEC’s status as a non-profit entity. Nonetheless, in addition to saving the direct cost of fuel, AVEC could sell green tags from the project. 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. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 34 of 39 7/20/2020 Identification of potential power buyer(s)/customer(s): AVEC, the existing electric utility serving Kotlik, is a member-owned cooperative electric utility and owns and maintains the generation, fuel storage, and distribution facilities in the villages it serves. No power purchase or sales agreements would be needed for this project. Kotlik has approximately 120 households and a health clinic, city office, school, and water treatment plant/washeteria, which purchase power from AVEC. Potential power purchase/sales price: At this point in project development, the potential power price and rate of return on the project is unknown. Work done under this grant would determine this information. 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. AVEC will take steps to prepare a met tower for delivery and identify a location for its installation before the AEA REF Grant is to be awarded to ensure project readiness. AVEC has term agreements with engineering and wind consultants, which will allow work to begin on the wind analysis and CDR quickly. FAA permitting process is to be completed by the time this grant is awarded. Once funding is known to be secured, AVEC would seek a lease for the met tower, and begin the environmental permitting process. AVEC would seek contractors to install the met tower and complete the geotechnical work once the grant agreement is in place. Met tower installation and geotechnical work would occur before winter. Work that can be completed before the wind study is completed would occur over the winter, including analysis of current cost of energy and future market, and the economic and financial analyses. Once the wind study is completed, the conceptual design and permitting would occur. The geotechnical work would be completed under the direction of the engineering consultants, which have completed this type of work in the past. This would enable the geotechnical field effort to occur before winter. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 35 of 39 7/20/2020 Furthermore, Kotlik residents are energized by the idea of a wind project in their community and are prepared to work with AVEC on land agreements. With the wind analysis, geotechnical data, and site selection in hand, completion of the CDR would be seamless. No other grants have been secured for this work in the past. . 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. Not applicable to this project 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 July 20, 2020. Please note that letters of support from legislators will not count toward this criterion. The community is very committed to moving this project forward and fully supports evaluating wind energy as a viable option for sustainable energy infrastructure in the community. Letters of support for this project have been received from the City of Kotl ik, the Kotlik Yupik Corporation and the Tribal Councils of Kotlik. Letters of support can be found under Tab B. 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. AVEC has been providing electrical services to rural, isolated, and economically-disadvantaged Alaskan communities since 1968. The Cooperative began with three communities and a very small staff, and has steadily grown to the impressive non-profit organization it is today, with 58-member villages. AVEC started out with loans from the USDA RUS, and became a Denali Commission partner in 2001. AVEC now has over 90 employees. There are generation technicians, linemen, managers, engineers, expediters, and others in its central office in Anchorage, and plant operators within member communities. With the signatures on this application, AVEC certifies that it is a legally incorporated, non-profit entity eligible to receive federal grant funding for the proposed project. Documentation of incorporation is available upon request. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 36 of 39 7/20/2020 AVEC has the largest geographic service area of any retail electric cooperative in world. It has demonstrated non-stop dedication to bringing stable and efficient sources of electricity to homes, schools, clinics, water and sewer systems, businesses, and communications infrastructure in its member villages. AVEC operates 170 diesel generators throughout its service area and purchases over 8 million gallons of fuel annually. The generators produce electric power for member communities, running a cumulative total of more than 375,000 hours per year. In 2019, AVEC generated 119 million kWh in power sales. Each of AVEC’s 58 villages conducts an annual village meeting for the express purpose of electing a delegate to represent their community at AVEC’s Annual Cooperative M eeting held in Anchorage each March. At the Annual Meeting, the delegates discuss AVEC business and elect members to serve on the seven-member board of directors. AVEC and the local governments operate as a partnership. Under operating agreements with all member communities, local control is exercised. The village governments hire the plant operators and oversee the day -to-day operation of power generation plants. The AVEC Board of Directors and staff are committed to the on -going effort of increasing the efficiencies and effectiveness of power-producing facilities and distribution lines in all member villages. They believe that by improving the power generation and distribution in each community, they are helping to improve the future of all impacted residents. Since 2000, AVEC has reliably and responsibly spent over $295 million of grant funds and its own money to construct over 120 major projects. This includes 35 bulk fuel tank farm upgrades or replacements, 18 new diesel-fired power plants, 7 standby backup power plants, 10 recovered heat systems, 14 wind farms (32 total wind turbines), 8 village-to-village interties, 1 photovoltaic (PV) solar array, and 31 other generation and distribution upgrades. Funding for these projects has come from the Alaska Energy Authority ($38 million), the Denali Commission ($223 million), USDA RUS direct awards ($13 million), USDE Office of Indian Energy ($3 million), other grants ($17 million), and AVEC matching contributions ($31 million). AVEC has been awarded over 35 AEA grants, details for these grants are attached in Tab G. Renewable Energy Fund Round 13 Grant Application – Standard Form Kotlik Wind Energy Feasibility and Conceptual Design Project AEA 21010 Page 37 of 39 7/20/2020 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. Not applicable to this project. SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Tab A – Resumes Tab B – Letters of Support Tab C – Heat Tab D – Authority Tab E – Election Application Tab F – Certification Tab G – Additional Materials (REF Round 13 Economic Evaluation Model; AVEC AEA Grant Summary) Page 38 of 39 Page 39 of 39 Tab A Resumes V3 Energy, LLC Douglas Vaught, P.E. 19211 Babrof Drive Eagle River, AK 99577 USA tel 907.350.5047 email dvaught@mtaonline.net Consulting Services : • Wind resource analysis and assessment, including IEC 61400-1 3 rd ed. protocols • Wind turbine siting, FAA permitting, and power generation prediction • Wind-diesel power plant modeling and configuration design • Cold climate and rime icing environment analysis of wind turbine operations • Met tower/sensor/logger installation and removal (tubular towers 10 to 60 meters in height) Partial List of Clients: • Alaska Village Electric Cooperative • NANA Pacific, LLC • enXco Development Corp. • Bristol Bay Native Corp. • Naknek Electric Association • Kodiak Electric Association • Barrick Gold • Alaska Energy Authority • North Slope Borough • Manokotak Natives Ltd. Representative Projects: • Alaska Village Electric Cooperative. Site selection, FAA permitting, met tower installation, data analysis/wind resource assessment, turbine energy recovery analysis, rime icing/turbine effects analysis, powerplant system modeling. Contact information: Brent Petrie, Key Accounts Mgr, 907-565-5358 • Kodiak Electric Association. Met tower installation, data analysis and modeling for Alaska’s first utility scale turbines (GE 1.5sle) on -line July 2009. Contact information: Darron Scott, CEO, 907 -486-7690. • NANA Pacific, LLC. Site reconnaissance and selection, permitting, met tower installation, wind resource assessment and preliminary power system modeling for Northwest Arctic Borough villages and Red Dog Mine. Contact information: Jay Hermanson, Program Manager, 907-339-6514 • enXco Development Corp. Met tower installation documentation, site reconnaissance , analysis equipment management for utility-sca le wind projects, including Fire Island near Anchorage. Contact information: Steve Gilbert, Alaska Projects Manager, 907-333-0810. • Naknek Electric Association. Long -term wind resource assessment at two sites (sequentially), including site selection, met tower installation, data analysis, turbine research, performance modeling, and project economic analysis. Contact information: Donna Vukich, General Manager, 907-246-4261 • North Slope Borough (with Powercorp Alaska, LLC). Power system modeling, site reconnaissance and selection, FAA permitting, wind turbine cold climate and icing effects white paper. Contact information: Kent Grinage, Public Works Dept., 907-852-0285 Recent Presentations: • Wind Power Icing Challenges in Alaska: a Case Study of the Native Village of Saint Mary’s, presented at Winterwind 2008, Norrköping, Sweden, Dec. 8, 2008. Tab B Letters of Support City of Kotlik P.O. Box 20268 Kotlik, AK 99620-0268 September 2, 2020 Meera Kohler, President and CEO Alaska Village Electric Cooperative (AVEC) 4831 Eagle Street Anchorage, AK 99503 Regarding: Letter of Support for Kotlik Wind Power Feasibility Project Dear Ms. Kohler, The City of Kotlik understands that AVEC is preparing an Alaska Energy Authority Renewable Energy Fund grant application to study the feasibility of wind power in Kotlik. The study will involve installing a meteorology (met) tower and monitoring wind near the community for a year. The work would also include conducting a geotechnical study to determine ground conditions for wind power infrastructure and preparing a conceptual design report (CDR). If the proposed feasibility study shows that the wind is a viable energy resource for Kotlik, AVEC could seek funding to prepare a final design , obtain permits , and construct a wind energy project. We fully support this study , as it will help determine if wind power is a solution to high and unstable power costs in our community . The City of Kotlik is willing to work with AVEC to find a suitable site for the met tower and to assist AVEC in getting approvals for placement of the tower and conducting the geotechnical survey and CDR. AVEC is welcome to include this letter in the grant application package. Sincerely , ~-...e:_: Thomas Sinka Mayor 09-02-20;12:24 ;From: Village of Kotlik P.O. Box 20210 Kotlik, AK 99620 September 2, 2020 Meera Kohler, President and CEO Alaska Village Electric Cooperative (AVEC) 4831 Eagle Street Anchorage, AK 99503 To: 18665612388 Regarding: Letter of Support for KotHk Wind Power Feasibility Project Dear Ms. Kohler, # 1/ 1 The Village of Kotlik understands that AVEC is preparing an Alaska Energy Authority Renewable Energy Fund grant application to study the feasibility of wind power in Kotlik. The study will involve installing a meteorology (met) tower and monitoring wind ncar the community for one year. The work would also include conducting a geotechnical study to determine ground conditions for wind power infrastructure and preparing a conceptual design report (CDR). If the proposed feasibility study shows that the wind is a viable energy resource for Kotlik, AVEC could seek funding to prepare a final design, obtain permits, and construct a wind energy project. We fully support this study, as it will help determine if wind power is a solution to high and unstable power costs in our community. The Village of Kotlik is willing to work with AVEC to find a suitable site for the met tower and to assist AVEC in getting approvals for placement of the tower and conducting the geotechnical survey and CDR. AVEC is welcome to include this letter in the grant application package. Sincerely, Pauline Okitkun Administrator Kotlik Yupik Corporation P.O. Box 20207 Kotlik, Alaska 99620 (907) 899-4014 I 4634 Fax (907) 899-4528 September 1, 2020 Meera Kohler, President and CEO Alaska Village Electric Cooperative (AVEC) 4831 Eagle Street Anchorage, Alaska 99503 Re: Letter of Support for Kotlik Wind Power Feasibility Project Dear Ms. Kohler, .. · \. The Kotlik Yupik Corporation understands that AVEC is preparing an Alaska Energy Authority Renewable Energy Fund grant application to study the feasibility of wind power in Kotlik. The study will involve installing a meteorology (met) tower and monitoring wind near the community for a year. The work would also include conducting geotechnical study to determine ground conditions for wind power infrastructure and preparing a conceptual design report (CDR). If the proposal . feasibility study shows that the wind is viable energy resource for Kotlik, AVEC could seek funding to prepare a -final design, obtain permits, and construct a wind energy ' project. We fully support this study, as it will help determine if wind power is a solution to high and unstable power costs in our community. The Kotlik Yupik Native Corporation is willing to work with AVEC to find a suitable for the met tower and to assist AVEC in getting approvals for the placement of the tower and conducting the geotechnical survey and CDR. AVEC is welcome to include this letter in the grant application package. Sincerely, KOTLIK YUPIK CORPORATION ~~ General Manager Tab C Heat Project Information No information provided in this section. Not applicable to this project. Tab D Authority ALASKA VILLAGE J!!LECTP.IC COOPERATIVE, INC. Delegation• of Authority from the Board of Director• to the President & CBO I. OBJECTIVE To define the delegations of authority and responsibilities from the Board of Directors to the President and Chief Executive Officer to enable him/her to adequately direct the operations of Alaska Village Electric Cooperative, Inc. and to report to the Board on the results achieved. II. POLICY A. Planning 1. Policies To formulate, with the staff as appropriate, the policies of Alaska Village Electric Cooperative to be recommended by the President and Chief Executive Officer to the Board of Directors for their consideration. Such policies shall be reviewed by the President and Chief Executive Officer at least once a year and a recommendation made to the Board on any revisions required. 2. To develop, with the staff, the viewpoints, objectives and goals of Alaska Village Electric Cooperative and to review periodically these objectives and goals, as well as the re~ults achieved, with the Board. 3. Long and Short-Range Plans To conduct studies with the staff and outside consultants, if necessary, and recommend to the Board short and long-range plans, including plans in such areas as system studies, engineering work plans, power requirements and load forecasts, financial forecasts, energy management, member and public relations, construction, facilities, etc., and to report to the Board on results compared to such plans. 4. Membership Meetings To develop, with the staff, plans for annual and other meetings of Alaska Village Electric Cooperative, and to make appropriate recommendations to the Board. 5. Work Plans and Budgets To formulate, with the staff, annual work plans and budgets for Alaska Village Electric Cooperative and recommend them to the Board for their consideration,and to provide detailed quarterly reports on revenue, expenses and other results compared to such plans. 2001.1 AVEC -RUS Grant Application Applicant Eligibility Delegations of Author~ty from Board to President & CEO 6. Legislation To analyze and determine, with the Board and with the staff and in coordination with organizations such as Alaska Rural Electric Cooperative Association (ARECA) and the National Rural Electric Cooperative Association (NRECA), state and federal legislative and regulatory matters to be proposed, supported or opposed consistent with Cooperative goals and philosophy. B. Organization 1. Organization Structure 2. a. To periodically review activities of Alaska Village Electric Cooperative and to determine with the staff as appropriate, the organization structure best suited to carry out · the overall objectives of Alaska Village Electric Cooperative within the limitations of the budget. b. To determine, with the appropriate staff members, the need for additional positions, the transfer, reassignment, or elimination of present positions, and to effect such changes, provided they are within the limitations of the personnel costs of the approved budget. Selection of Personnel a. To develop or approve standards and qualifications for use in recruitment, transfer, and promotion of personnel. Such standards and qualifications should meet all federal and state legal requirements. b. To select, appoint, transfer, promote, demote, discipline and terminate personnel. 3. Training a. To ensure that the staff members are trained in accordance with the qualifications and requirements of their positions. b. To initiate and promote, through appropriate staff, training programs for all personnel within the limitations of the approved budget, including sending personnel to training programs outside the organization. 4. Performance Appraisals a. To appraise, at least annually, the immediate staff members and to counsel assist them to develop and improve. 2001. 2 AVEC -RUS Grant Application Applicant Eligibility performance of with them and ) ( Delegations of Authority from Board to President & CEO b. To ensure that established and adjustments for based on merit. 5. Position Descriptions a performance appraisal program is carried out for all personnel and that those outside the bargaining unit are To ensure that written position descriptions and job specifications are prepared and reviewed as necessary for all personnel. 6. Fringe Benefits To administer or approve activities and actions with respect to annual leave, holidays, and other fringe benefit programs for the personnel within established policies and within the · limitations of the budget. A report shall be presented annually to the Board or committee of the Board describing the various benefits and employee and employer contribution, if any, and what percent fringes are of payroll. 7. Consultants a. To recommend to the Board the employment of general counsel and independent auditors, and contracts and agreements for their services with the committee making an appropriate recommendation to the Board. b. To select and appoint other outside specialized consultants, and to negotiate contracts or agreements for services of such specialized consultants, within the limitations of the work plan and budget, and to advise the Board of actions taken. c. To report to the Board periodically on services provided and the fees received by principal consultants. B. Wage and Salary Administration a. To develop wage and salary policy and present it to the Board for approval. b. To determine all salaries, except the President and Chief Executive Officer's, within the Board approved wage and salary policy and within the 1imi tations of the budget. ·A report is to be provided to the Board annually on the administration of the wage and salary policy. 9. Labor Relations a. To negotiate, with or without consulting assistance, labor contracts and make appropriate recommendations to the Board. 2001.3 AVEC -RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO b. c. Operations To administer the approved labor contract and see that the appropriate supervisors understand the provisions of the contract and its administration. 1. overall Administration a. To direct the day-to-day operations and activities of Alaska Village Electric Cooperative except as specified otherwise by the By-Laws or the Board; to delegate authority to immediate staff; to authorize further delegation of authority to any level of management with full recognition that the President and Chief Executive Officer cannot be relieved of overall responsibility or accountability. b. To manage operations of Alaska Village Electric Cooperative in accordance with the policies of the Board and in accordance with policies and procedures of RUS and other lending institutions; as well as applicable federal, state, and local laws. c. To designate an appropriate person to serve as Acting President and Chief Executive Officer in an extended absence of the President and Chief Executive Officer. In case the President and Chief Executive Officer becomes incapacitated, the Assistant President and Chief ) Executive Officer shall serve temporarily as Acting ! President and Chief Executive Officer until the Board of Directors takes appropriate action, at a meeting to be convened as soon as possible. d. To ensure that staff advice and assistance is provided to the Board and its committees, and to participate in the deliberation of these committees as requested or required. e. To accept invitations to participate in or designate other staff members to participate in national, regional, state, and local meetings which further the best interests of Alaska Village Electric Cooperative, within the limitations of Board policy and the approved budget. Participation by the President and Chief Executive Officer in such activities which require considerable time over a sustained period requires the approval of the Board. The President and Chief Executive Officer's serving on the board of other organizations shall be reported to the Board. f. To serve as the authorized spokesperson for Alaska Village Electric Cooperative on matters and to keep the Board up-to-date and well informed on such matters. 2001.4 AVEC -RUS Grant Application Applicant Eligibility ( Delegations of Authority from Board to President & CEO g. The President and Chief Executive Officer shall take all necessary steps in the event that the Cooperative is served with legal process to protect all interests of the Cooperative with respect to such litigation and such matters shall be brought to the attention of the Board at the next scheduled meeting. 2. Membership Services To direct membership services in such areas as, but not necessarily confined to, public and member relations, load management, energy conservation, communications, and research as authorized by the Boatd, 3. Legislation a. To develop and carry out, in coordination with organizations such as ARECA and NRECA, and within expressed Board philosophy, a legislative program furthering Alaska Village Electric Cooperative's objectives and policies. Such a program will include, but not be limited to, research, preparation, and presentation of testimony before appropriate committees, consultation with members of Congress, the State Legislature, and state and federal administrative and regulatory agencies. b. To participate with allied groups to obtain their increased understanding and support of Alaska Village Electric Cooperative's legislative and regulator objectives and programs. 4. Financial a. To make expenditures in accordance with the approved budget, including approval of non-budget items up to $100,000 or all non-budgeted items which, in his judgement are vital to effect unanticipated emergency maintenance or repairs. Non-budgeted i terns exceeding $100,000 which are not items vital to effect unanticipated emergency maintenance or repairs, must be presented to the Board for approval. b. To invest or reinvest funds, cash investments when due, and cash government bonds, when and if necessary to protect Alaska Village Electric Cooperative's cash position and to carry out an effective cash management program. Investments will generally be made in CFC securities, in federal government insured or guaranteed securities or in other securities approved by the lending agencies. c. To authorize and approve the travel expenses of personnel except the President and Chief Executive Officer's on 2001.5 AVEC -RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO company business within the limitations of the budget and within established policy. Such expenses shall be supported by itemized expense accounts with receipts ,·) attached, as appropriate. Expenses of the President and Chief Executive Officer will be reviewed by the Secretary/Treasurer. d. To approve account systems, procedures, statistics, and types of reports necessary for sound financial management and to meet the requirements of lending and regulatory agencies and for necessary control information required by the Board. e. To purchase or lease all equipment, vehicles, hardware, furniture, materials, and supplies within the guidelines of the budget. All purchases shall comply with RUS policies or procedures. f. To negotiate contracts for construction in accordance with RUS procedures. The contracts will be awarded in accordance with RUS procedures so construction completed can be reimbursed from loan funds without delay. g. To execute and deliver purchase orders or contracts for projects previously approved by the Board. h. To approve and sign changes under contracts previously approved by the Board and RUS if under $50,000. Those changes in.excess of $50,000 are to be reported to the Board at the n~xt Board meeting and all changes are to be approved by RUS if appropriate. i. To authorize individual memberships in civic clubs and organizations in which he/she thinks of him/herself or staff members would be beneficial and to authorize payment· of dues by Alaska Village Electric Cooperative within the limitations of the budget. Professional registration fees will only be paid for registration in the State of Alaska, if such registration is desirable or required. j. To execute and delivery on behalf of Alaska Village Electric Cooperative agreements essential to the management of the Cooperative, such as affidavits, agreements, and leases to implement Board actions. k. To negotiate franchises and execute all petitions and documents in relation thereto; to acquire by purchase or lease all easements and power plant sites and execute, deliver and accept all documents relating thereto; to · .. execute._ ·:.:~.nd· . .-.deliver all environmental studies and report~ f · t~ :;'Iii~ke · ~pplica.:tion for all permits relating to the operations of Alaska Village Electric Cooperative's design, route, and determine the site for all facilities. 2001.6 AVEC -RUS Grant Application Applicant Eligibility ( Delegations of Authority from Board to President & CEO 1. To perform all acts necessary or incidental to the management of· the operations of Alaska Village Electric Cooperative, unless such acts are specifically reserved to the Board pursuant to law, and Articles of Incorporation, the By-Laws, or policies. 5. Controls a. Operations To submit periodic and special reports to the Board on conformity of operations with approved policies and programs; to recommend any rev1s1ons requ1r1ng Board approval and to direct any remedial action required. b. Finances To submit periodic and special financial reports to the Board to keep them informed of Alaska Village Electric Cooperative's financial position and conformance to financial plans and forecasts, and to see that all persons having access to cash or responsible for purchasing of materials are properly bonded in accordance with all requirements of the lending agencies. c. Budgets To report quarterly to the Board on revenues and expenditures compared to budget. To recommend any revisions required, and to direct any necessary remedial action. d. Annual Financial Audit To participate with the Board in the review, with the auditor present,. of the annual financial audit and management letter and to direct any remedial action required and to ensure that the management letter, along with the Audit Report, is sent to each Board member prior to the meeting at which they are to be discussed. e. Materials Management 1. To determine the amount control of all physical investment in inventories and construction needs. of and establish proper inventories to m1n1m1ze needed to meet operating 2. To ensure that a system is established to accurately account for all materials used. f. Member Complaints To submit periodically to the Board an analysis of member 2001.7 AVEC-RUS Grant Application Applicant Eligibility Delegations of Authority from Board to President & CEO g. complaints and to take any corrective action required or to recommend appropriate revisions in Board policy. Reliability of Service To submit annually to the Board a report on service reliability and any remedial action taken. h. By-Laws To report to the Board on annual review with the General Counsel of the By-Laws and to recommend any revisions required. i. Availability of Power Supply To report periodically to the Board on load growth compared to the power requirements studies and to recommend plans to meet anticipated growth to ensure an adequate and reliable supply for the members at the lowest possible cost consistent with sound business and management practices. j. Rates To continually study power and other costs compared to projections and to recommend to the Board, as far in advance as possible, any changes in retail electric rates necessary to maintain financial strength and stability and to meet all requirements of lending and regulatory agencies. k. Construction To review construction practices with appropriate staff to make sure projects are being constructed in accordance with RUS policies and procedures so that reimbursement for completed construction can be obtained promptly. 1. Internal Auditing To independently assess the adequacy, effectiveness and efficiency of the system of control within the organization and the quality of ongoing operations against policies and procedures established by management and/or the Board, and rules of RUS and other lending institutions; as well as applicable federal, state and local laws. IV. RESPONSIBILITY A. The President and Chief Executive Officer shall report to the Board periodically on how these delegations are being carried 2001.8 AVEC -RUS Grant Application Applicant Eligibility ) l ( .. ~ Delegations of Authority from Board to President & CEO Date Date B. c. ATTEST: out. Chairman of the Board shall be kept appraised of all major issues on a regular basis between all Board Meetings. The President and Chief Executive Officer may make further delegations to his staff as required. The Board is responsible for approving any changes in the delegations to the President and Chief Executive Officer. The Chairman shall be responsible for seeing that the performance of the President and Chief Executive Officer is appraised prior to his/her anniversary date each year by the Executive Committee of the Board and that a report is made at a subsequent meeting to the full Board, on the results of such appraisal, and that the results of such appraisal are discussed with the President and Chief Executive Officer. Resolution # 92-18 Resolution # 00-37 2001. 9 AVEC -RUS Grant Application Applicant Eligibility RESOLUTION 00-37 Delegations of Authority from the Board of Directors To the President & CEO .WHEREAS, the policy for delegation of authority from the Board ofDirectors to the General Manager has been reviewed; and WHEREAS, the title of General Manager has been changed to President & CEO and this change has been made in the policy noted above. NOW, THEREFORE, BE IT RESOLVED that the attached updated policy for delegation of authority from the Board of Directors to the President & CEO is approved. Certification I, Julia A. Walker, Secretary, do hereby certify that the above is a true and correct excerpt from the minutes of the meeting of the Board of Directors of the Alaska Village Electric Cooperative, Inc., 4831 Eagle Street, Anchorage, Alaska 99503, on the 5th day of May 2000, at which meeting a quorum was present. ,,,, ...... ,,, (se~ ~ELECT; ''•#. ........ ~ t-t::> .......... i9~ ,,, $ ~.··o~POfti);·. ~ \ ~~ o'(J ~ ... 0 .. = .'4C .. ~ 0:-• ~ : SEAL : :o :.. · :en: :· : =~~ : ~: .. . . ;::: .. ~ \ ;~J~ -:-. ... .·· ~ , * .. .. * .. ,, ·········· ~.., '•,, ~LAs\0' ,~ ..... lllllltatl\''' AVEC -RUS Grant Application ulia . Walker, Secretary las a Village Electric Cooperative, Inc. 2001.10 Applicant Eligibility ) ) Tab E Electronic Application Application was submitted electronically. Not applicable to this project. Tab F Certification Page 38 of 39 Tab G Additional Materials Alaska Energy Authority's 2018 Wind Data REF Round 13 Evaluation Model REF Round 13 Economic Evaluation Model AVEC AEA Grant Summary REF Round 13 Evaluation Model REF Round 13 Economic Evaluation Model Renewable Energy Fund Economic Benefit-Cost Analysis Model Project Description Community Nearest Fuel Community Region RE Technology Project ID Applicant Name Project Title Results NPV Benefits $1,792,755.22 NPV Capital Costs $2,860,481 B/C Ratio 0.63 NPV Net Benefit ($1,067,726) Performance Unit Value Displaced Electricity kWh per year 630,000 Displaced Electricity total lifetime kWh 12,600,000 Displaced Petroleum Fuel gallons per year 43,448 Displaced Petroleum Fuel total lifetime gallons 868,966 Displaced Natural Gas MCF per year - Displaced Natural Gas total lifetime MCF - Avoided CO2 tonnes per year 441 Avoided CO2 total lifetime tonnes 8,820 Proposed System Unit Value Capital Costs $3,100,000$ Project Start year 2024 Project Life years 20 Displaced Electric kWh per year 630,000 Displaced Heat gallons displaced per year Renewable Generation O&M (Electric) $ per year 31,500 Renewable Generation O&M (Heat)$ per year Diesels OFF time Hours per year Electric Capacity kW 300 Electric Capacity Factor %24% Heating Capacity Btu/hr Heating Capacity Factor %#DIV/0! Total Other Public Benefit 2020$ (Total over the life of the project)0 Base System Size of impacted engines (select from list)$/hr Diesel Generator O&M 151-360kW 9.35$ Applicant's Diesel Generator Efficiency kWh per gallon 12.84 Total current annual diesel generation kWh/gallon 2,010,362 14.50 NOTICE: By default, this sheet is locked. If you need to unlock the sheet go to "Review" in ribbon bar, select "Unprotect Sheet", then input passcode: REFRound13 Kotlik Kotlik Rural Wind AVEC Kotlik Wind Energy Feasibility Study and Conceptual Design Project Diesel Generation Efficiency 4 5 6 7 8 Annual Cost Savings Units 2020 2021 2022 2023 2024 Entered Value Project Capital Cost $ per year 250,000$ 350,000$ 2,500,000$ CALCULATION Electric Cost Savings $ per year -$ -$ -$ -$ 116,984$ CALCULATION Heating Cost Savings $ per year -$ -$ -$ -$ -$ Entered Value Other Public Benefits $ per year CALCULATION Total Cost Savings $ per year -$ -$ -$ -$ 116,984$ CALCULATION Net Benefit $ per year -$ (250,000)$ (350,000)$ (2,500,000)$ 116,984$ Electric Units 2020 2021 2022 2023 2024 Enter Value if generation changes Renewable Generation kWh per year ----630,000 Entered Value Renewable scheduled replacement(s) (Electric)$ per year REFERENCE: Cell D34 Renewable O&M (Electric)$ per year -$ -$ -$ -$ 31,500$ Entered Value Renewable Electric Other costs $ per year Entered Value Renewable Fuel Use Quantity (Biomass)green tons Entered Value Renewable Fuel Cost $ per unit CALCULATION Total Renewable Fuel Cost (Electric)$ per year -$ -$ -$ -$ -$ Proposed Generation Cost (Electric)$ per year -$ -$ -$ -$ 31,500$ REFERENCE: Cell D32 Displaced Fossil Fuel Generation kWh per year ----630,000 REFERENCE: Worksheet 'Diesel Fuel Prices'Displaced Fuel Price $ per gallon 3.13$ 3.18$ 3.27$ 3.33$ 3.42$ Enter Value if Diesels are OFF Displaced Scheduled component replacement(s) $ per year -$ -$ -$ -$ -$ CALCULATION Displaced O&M $ per year -$ -$ -$ -$ -$ CALCULATION Displaced Fuel Use gallons per year ----43,448 CALCULATION Displaced Fuel Cost $ per year -$ -$ -$ -$ 148,484$ CALCULATION Base Generation Displaced Cost $ per year -$ -$ -$ -$ 148,484$ Heating Units 2020 2021 2022 2023 2024 Entered Value Renewable scheduled replacement(s)$ per year REFERENCE: Cell D35 Renewable Heat O&M $ per year -$ -$ -$ -$ -$ Entered Value Renewable Heat Other costs $ per year Entered Value Renewable Fuel Use Quantity (Heat)green tons/kWh/etc. Entered Value Renewable Fuel Cost (Heat)$ per unit CALCULATION Total Renewable Fuel Cost (Heat)$ per year -$ -$ -$ -$ -$ CALCULATION Proposed Generation Cost (Heat)$ per year -$ -$ -$ -$ -$ REFERENCE: Cell D33 Displaced Fossil Fuel Use gallons per year ----- Entered Value Displaced Fossil Fuel Price $ per gallon Entered Value Displaced Scheduled component replacement(s) $ per year Entered Value Displaced O&M $ per year CALCULATION Displaced Fuel Cost $ per year -$ -$ -$ -$ -$ CALCULATION Base Heating Displaced Cost $ per year -$ -$ -$ -$ -$ Base Proposed Base Proposed Annual Cost Savings Units Entered Value Project Capital Cost $ per year CALCULATION Electric Cost Savings $ per year CALCULATION Heating Cost Savings $ per year Entered Value Other Public Benefits $ per year CALCULATION Total Cost Savings $ per year CALCULATION Net Benefit $ per year Electric Units Enter Value if generation changes Renewable Generation kWh per year Entered Value Renewable scheduled replacement(s) (Electric)$ per year REFERENCE: Cell D34 Renewable O&M (Electric)$ per year Entered Value Renewable Electric Other costs $ per year Entered Value Renewable Fuel Use Quantity (Biomass)green tons Entered Value Renewable Fuel Cost $ per unit CALCULATION Total Renewable Fuel Cost (Electric)$ per year Proposed Generation Cost (Electric)$ per year REFERENCE: Cell D32 Displaced Fossil Fuel Generation kWh per year REFERENCE: Worksheet 'Diesel Fuel Prices'Displaced Fuel Price $ per gallon Enter Value if Diesels are OFF Displaced Scheduled component replacement(s) $ per year CALCULATION Displaced O&M $ per year CALCULATION Displaced Fuel Use gallons per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Generation Displaced Cost $ per year Heating Units Entered Value Renewable scheduled replacement(s)$ per year REFERENCE: Cell D35 Renewable Heat O&M $ per year Entered Value Renewable Heat Other costs $ per year Entered Value Renewable Fuel Use Quantity (Heat)green tons/kWh/etc. Entered Value Renewable Fuel Cost (Heat)$ per unit CALCULATION Total Renewable Fuel Cost (Heat)$ per year CALCULATION Proposed Generation Cost (Heat)$ per year REFERENCE: Cell D33 Displaced Fossil Fuel Use gallons per year Entered Value Displaced Fossil Fuel Price $ per gallon Entered Value Displaced Scheduled component replacement(s) $ per year Entered Value Displaced O&M $ per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Heating Displaced Cost $ per year Base Proposed Base Proposed 9 10 11 12 2025 2026 2027 2028 119,987$ 122,164$ 124,219$ 126,155$ -$ -$ -$ -$ 119,987$ 122,164$ 124,219$ 126,155$ 119,987$ 122,164$ 124,219$ 126,155$ 2025 2026 2027 2028 630,000 630,000 630,000 630,000 31,500$ 31,500$ 31,500$ 31,500$ -$ -$ -$ -$ 31,500$ 31,500$ 31,500$ 31,500$ 630,000 630,000 630,000 630,000 3.49$ 3.54$ 3.58$ 3.63$ -$ -$ -$ -$ -$ -$ -$ 43,448 43,448 43,448 43,448 151,487$ 153,664$ 155,719$ 157,655$ 151,487$ 153,664$ 155,719$ 157,655$ 2025 2026 2027 2028 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ---- -$ -$ -$ -$ -$ -$ -$ -$ Annual Cost Savings Units Entered Value Project Capital Cost $ per year CALCULATION Electric Cost Savings $ per year CALCULATION Heating Cost Savings $ per year Entered Value Other Public Benefits $ per year CALCULATION Total Cost Savings $ per year CALCULATION Net Benefit $ per year Electric Units Enter Value if generation changes Renewable Generation kWh per year Entered Value Renewable scheduled replacement(s) (Electric)$ per year REFERENCE: Cell D34 Renewable O&M (Electric)$ per year Entered Value Renewable Electric Other costs $ per year Entered Value Renewable Fuel Use Quantity (Biomass)green tons Entered Value Renewable Fuel Cost $ per unit CALCULATION Total Renewable Fuel Cost (Electric)$ per year Proposed Generation Cost (Electric)$ per year REFERENCE: Cell D32 Displaced Fossil Fuel Generation kWh per year REFERENCE: Worksheet 'Diesel Fuel Prices'Displaced Fuel Price $ per gallon Enter Value if Diesels are OFF Displaced Scheduled component replacement(s) $ per year CALCULATION Displaced O&M $ per year CALCULATION Displaced Fuel Use gallons per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Generation Displaced Cost $ per year Heating Units Entered Value Renewable scheduled replacement(s)$ per year REFERENCE: Cell D35 Renewable Heat O&M $ per year Entered Value Renewable Heat Other costs $ per year Entered Value Renewable Fuel Use Quantity (Heat)green tons/kWh/etc. Entered Value Renewable Fuel Cost (Heat)$ per unit CALCULATION Total Renewable Fuel Cost (Heat)$ per year CALCULATION Proposed Generation Cost (Heat)$ per year REFERENCE: Cell D33 Displaced Fossil Fuel Use gallons per year Entered Value Displaced Fossil Fuel Price $ per gallon Entered Value Displaced Scheduled component replacement(s) $ per year Entered Value Displaced O&M $ per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Heating Displaced Cost $ per year Base Proposed Base Proposed 13 14 15 16 17 2029 2030 2031 2032 2033 127,975$ 129,681$ 131,275$ 132,758$ 134,132$ -$ -$ -$ -$ -$ 127,975$ 129,681$ 131,275$ 132,758$ 134,132$ 127,975$ 129,681$ 131,275$ 132,758$ 134,132$ 2029 2030 2031 2032 2033 630,000 630,000 630,000 630,000 630,000 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ -$ -$ -$ -$ -$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 630,000 630,000 630,000 630,000 630,000 3.67$ 3.71$ 3.75$ 3.78$ 3.81$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 43,448 43,448 43,448 43,448 43,448 159,475$ 161,181$ 162,775$ 164,258$ 165,632$ 159,475$ 161,181$ 162,775$ 164,258$ 165,632$ 2029 2030 2031 2032 2033 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ----- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Cost Savings Units Entered Value Project Capital Cost $ per year CALCULATION Electric Cost Savings $ per year CALCULATION Heating Cost Savings $ per year Entered Value Other Public Benefits $ per year CALCULATION Total Cost Savings $ per year CALCULATION Net Benefit $ per year Electric Units Enter Value if generation changes Renewable Generation kWh per year Entered Value Renewable scheduled replacement(s) (Electric)$ per year REFERENCE: Cell D34 Renewable O&M (Electric)$ per year Entered Value Renewable Electric Other costs $ per year Entered Value Renewable Fuel Use Quantity (Biomass)green tons Entered Value Renewable Fuel Cost $ per unit CALCULATION Total Renewable Fuel Cost (Electric)$ per year Proposed Generation Cost (Electric)$ per year REFERENCE: Cell D32 Displaced Fossil Fuel Generation kWh per year REFERENCE: Worksheet 'Diesel Fuel Prices'Displaced Fuel Price $ per gallon Enter Value if Diesels are OFF Displaced Scheduled component replacement(s) $ per year CALCULATION Displaced O&M $ per year CALCULATION Displaced Fuel Use gallons per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Generation Displaced Cost $ per year Heating Units Entered Value Renewable scheduled replacement(s)$ per year REFERENCE: Cell D35 Renewable Heat O&M $ per year Entered Value Renewable Heat Other costs $ per year Entered Value Renewable Fuel Use Quantity (Heat)green tons/kWh/etc. Entered Value Renewable Fuel Cost (Heat)$ per unit CALCULATION Total Renewable Fuel Cost (Heat)$ per year CALCULATION Proposed Generation Cost (Heat)$ per year REFERENCE: Cell D33 Displaced Fossil Fuel Use gallons per year Entered Value Displaced Fossil Fuel Price $ per gallon Entered Value Displaced Scheduled component replacement(s) $ per year Entered Value Displaced O&M $ per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Heating Displaced Cost $ per year Base Proposed Base Proposed 18 19 20 21 22 2034 2035 2036 2037 2038 135,399$ 136,559$ 137,615$ 138,567$ 139,416$ -$ -$ -$ -$ -$ 135,399$ 136,559$ 137,615$ 138,567$ 139,416$ 135,399$ 136,559$ 137,615$ 138,567$ 139,416$ 2034 2035 2036 2037 2038 630,000 630,000 630,000 630,000 630,000 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ -$ -$ -$ -$ -$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 630,000 630,000 630,000 630,000 630,000 3.84$ 3.87$ 3.89$ 3.91$ 3.93$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 43,448 43,448 43,448 43,448 43,448 166,899$ 168,059$ 169,115$ 170,067$ 170,916$ 166,899$ 168,059$ 169,115$ 170,067$ 170,916$ 2034 2035 2036 2037 2038 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ----- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Cost Savings Units Entered Value Project Capital Cost $ per year CALCULATION Electric Cost Savings $ per year CALCULATION Heating Cost Savings $ per year Entered Value Other Public Benefits $ per year CALCULATION Total Cost Savings $ per year CALCULATION Net Benefit $ per year Electric Units Enter Value if generation changes Renewable Generation kWh per year Entered Value Renewable scheduled replacement(s) (Electric)$ per year REFERENCE: Cell D34 Renewable O&M (Electric)$ per year Entered Value Renewable Electric Other costs $ per year Entered Value Renewable Fuel Use Quantity (Biomass)green tons Entered Value Renewable Fuel Cost $ per unit CALCULATION Total Renewable Fuel Cost (Electric)$ per year Proposed Generation Cost (Electric)$ per year REFERENCE: Cell D32 Displaced Fossil Fuel Generation kWh per year REFERENCE: Worksheet 'Diesel Fuel Prices'Displaced Fuel Price $ per gallon Enter Value if Diesels are OFF Displaced Scheduled component replacement(s) $ per year CALCULATION Displaced O&M $ per year CALCULATION Displaced Fuel Use gallons per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Generation Displaced Cost $ per year Heating Units Entered Value Renewable scheduled replacement(s)$ per year REFERENCE: Cell D35 Renewable Heat O&M $ per year Entered Value Renewable Heat Other costs $ per year Entered Value Renewable Fuel Use Quantity (Heat)green tons/kWh/etc. Entered Value Renewable Fuel Cost (Heat)$ per unit CALCULATION Total Renewable Fuel Cost (Heat)$ per year CALCULATION Proposed Generation Cost (Heat)$ per year REFERENCE: Cell D33 Displaced Fossil Fuel Use gallons per year Entered Value Displaced Fossil Fuel Price $ per gallon Entered Value Displaced Scheduled component replacement(s) $ per year Entered Value Displaced O&M $ per year CALCULATION Displaced Fuel Cost $ per year CALCULATION Base Heating Displaced Cost $ per year Base Proposed Base Proposed 23 24 25 26 27 2039 2040 2041 2042 2043 140,162$ 140,807$ 141,351$ 141,795$ 142,139$ -$ -$ -$ -$ -$ 140,162$ 140,807$ 141,351$ 141,795$ 142,139$ 140,162$ 140,807$ 141,351$ 141,795$ 142,139$ 2039 2040 2041 2042 2043 630,000 630,000 630,000 630,000 630,000 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ -$ -$ -$ -$ -$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 630,000 630,000 630,000 630,000 630,000 3.95$ 3.97$ 3.98$ 3.99$ 4.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 43,448 43,448 43,448 43,448 43,448 171,662$ 172,307$ 172,851$ 173,295$ 173,639$ 171,662$ 172,307$ 172,851$ 173,295$ 173,639$ 2039 2040 2041 2042 2043 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ----- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ AVEC AEA Grant Summary No.Description Notes Year Funded 2195244 Wind Turbine Foundation Design & Testing Project (DC project 27D Toksook Bay)Completed successfully; facilities now in service.2005 AES 2195281 Chevak Wind Farm Project (DC project 29E)Completed successfully; facilities now in service.2007 AES 2195383 Quinhagak Wind Farm Construction Completed successfully; facilities now in service.2008 RD1 2195384 Mekoryuk Wind Farm Construction Completed successfully; facilities now in service.2008 RD1 2195385 Toksook Wind Farm Construction Completed successfully; facilities now in service.2008 RD1 2195412 Ambler Solar PV Construction Failed early feasibility evaluation, returned bulk of funds.2008 RD1 2195413 Cosmos Hills Hydroelectric Feasibility Study Completed successfully; feasibility only.2008 RD1 2195431 Old Harbor Hydroelectric Final Design Completed successfully (design). FERC licensure in place.2008 RD1 2195432 Bethel Wind Farm Completed successfully; facilities now in service.2008 RD1 2195463 Shaktoolik Wind Construction Completed successfully; facilities now in service.2010 RD2 2195464 Teller Wind Analysis Completed successfully; feasibility only.2009 RD2 2195468 Emmonak/Alakanuk Wind Design and Construction Completed successfully; facilities now in service.2009 RD2 7030006 New Stuyahok Wind Completed successfully; feasibility only.2010 RD3 7030016 Kivalina Wind-Intertie Feasibility Analysis & Conceptual Design Completed successfully; feasibility only.2010 RD3 7040008 Stebbins Wind Feasibility Study Completed successfully; feasibility only.2011 RD4 7040014 Old Harbor Hydroelectric Project Completed successfully (design). FERC licensure in place.2011 RD4 7040017 St. Mary's/ Pitka's Point Wind Construction Completed successfully; facilities now in service.2011 RD4 7040019 Eek Wind Feasibility Completed successfully; feasibility only.2011 RD4 7040021 Marshall Wind Feasibility Completed successfully; feasibility only.2011 RD4 7040022 Scammon Bay Wind Feasibility Completed successfully; feasibility only.2011 RD4 7040030 Selawik Hybrid Wind Diesel System Turbine Upgrade Completed successfully; feasibility only.2011 RD4 7040049 Kaltag Solar Construction Completed successfully; facilities now in service.2011 RD4 7040052 Koyuk Wind Feasibility Community declined to participate. Returned funding.2011 RD4 7040053 Elim Wind Feasibility Study Completed successfully; feasibility only.2011 RD4 7050870 Surplus Wind Energy Recovery for Mekoryuk Water System Heat Completed successfully; facilities now in service.2012 RD5 7050871 Shaktoolik Surplus Wind Energy Recovery for Water System Heat Completed successfully; facilities now in service.2012 RD5 7050875 Surplus Wind Energy Recovery for Chevak Water System Heat Completed successfully; facilities now in service.2012 RD5 7050876 Surplus Wind Energy Recovery for Gambell Water System Heat Completed successfully; facilities now in service.2012 RD5 7060939 Stebbins Heat Recovery Project Completed successfully; facilities now in service.2013 RD6 7071067 Mountain Village Wind Feasibility and Conceptual Design Completed successfully; feasibility only.2014 RD7 7071068 Stebbins St. Michael Wind Energy Final Design and Permitting On track; now in final stages of completion.2014 RD7 7081118 Bethel Power Plant Heat Recovery Assessment & Conceptual Design On track to successful completion.2015 RD8 7091223 Shishmaref Wind Energy Feasibility and CDR In progress.2018 RD9 7091224 Mountain Village-St. Mary's Wind Intertie Project Completed successfully; facilities constructed. 2018 RD9 7110056 Togiak RPSU Completed successfully; facilities now in service.2017 7110082 Anvik DERA In progress and on track.2019 7210025 Holy Cross BFU Completed successfully; facilities now in service.2017 7310305 Grid Bridging System Research and Development In progress.2019