HomeMy WebLinkAboutAPP_13002-REFRnd13GoodnewsBayWindApplicationSeptember 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: Goodnews Bay 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 Goodnews Bay.
With funding obtained through AEA's program, we propose to analyze wind data collected by AEA in
2018, 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 Goodnews Bay. The
effort would culminate in a Concept Design Report, including an alternatives evaluation and conceptual
design, which could be used to seek future construction funding.
AVEC is seeking $128,250 from AEA under this proposal and would provide a 5% cash match of $6,750
for this work.
Please do not hesitate to contact Mr. Button or my staff if you have questions.
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
Goodnews Bay 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
Goodnews Bay 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
Goodnews Bay 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.
Goodnews Bay 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 Goodnews Bay is located on the north shore of Goodnews Bay at the mouth of Goodnews
River. It is 116 air miles south of Bethel, 110 miles northwest of Dillingham, and 400 miles west of
Anchorage. It lies at approximately 59.12 North Latitude and -161.59 West Longitude (Sec. 21,
T012S, R073W, Seward 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 Goodnews Bay, Alaska (population of 283 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
Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Alaska Village Electric Cooperative, Inc. (AVEC) is requesting $128,250 and will provide a match of
$6,750 to conduct a wind power feasibility and conceptual design project for the community of
Goodnews Bay. AVEC, with the cooperation of the community, proposes to assess the feasibility of
wind resources suited to provide power to the community and to prepare a conceptual design of a
wind facility.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
AVEC proposes to analyze wind data collected by AEA in 2018, complete a reconnaissance-level
geotechnical effort, and work with the community to determine the feasibility, location, turbine
type, and conceptual design of a wind project in Goodnews Bay. The effort would culminate in a
Concept Design Report (CDR), including an alternatives evaluation and conceptual design, that could
be used to seek future construction funding.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
Round 9 Goodnews Bay Wind Energy
Feasibility and Conceptual Design
Project
956 Not funded n/a
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Grant Application – Standard Form
Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and
Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed
project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add
additional rows as needed.
Task
# Milestones Tasks Start
Date
End
Date Deliverables
1 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 complete a wind
resource report using raw wind
data collected in Goodnews Bay
by AEA in 2018.
Under this milestone, a
preliminary geotechnical analysis
would be done in October 2021.
This work will help to guide later
design work.
Sep 15,
2021
Oct 31,
2021
Wind Resource
Analysis
Report and
Preliminary
Geotechnical
Report
3 Identification of
land and
regulatory issues
Based on 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
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
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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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 desires.
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 single-
phase electric system in
Goodnews Bay. the
reconnaissance level
geotechnical study will support a
conceptual design and cost
estimate, which will be included
in the CDR.
Sep 1,
2022
Nov 1,
2022
Concept
Design Report
and Cost
Estimate
8 Detailed
economic and
financial analyses
AVEC would conduct an
economic and financial analysis
to determine potential final
design and construction,
operating and maintenance
costs, user rates, and other fiscal
components for the project. This
analysis will be included 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 of the project.
Sep 15,
2022
Dec 15,
2022
Section in the
CDR
10 Final report and
recommendations
AVEC will combine all of the
memoranda and reports written
for the project in a final report
for submission to AEA. The Final
CDR to include the following
information:
Sep 15,
2022
Dec 31,
2022
Final
Conceptual
Design Report
Renewable Energy Fund Round 13
Grant Application – Standard Form
Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
AEA 21010 Page 7 of 39 7/20/2020
• 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
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $128,250
Cash match to be provideda $6,750
In-kind match to be provideda $0
Energy efficiency match providedb $0
Total costs for project phase(s) covered in application (sum of
above)
$135,000
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 ($6,750) of the total cost ($135,000) of the Goodnews
Bay 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. Should the
project experience a funding issue, AVEC will seek alternative funding or allocate a larger cash match
contribution.
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 $135,000
Final Design and Permitting Estimated $365,000
Construction Estimated $2,500,000
Total Project Costs (sum of above) Estimated $3,000,000
Metering/Tracking Equipment [not included in
project cost]
Estimated $400-1,000 (dependent on
results of feasibility study)
Renewable Energy Fund Round 13
Grant Application – Standard Form
Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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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 Goodnews Bay 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 Goodnews Bay will cost
$365,000 and $2.5 million respectively, for a total capital cost of approximately $3 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 Goodnews Bay wind project.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail
your proposed project’s total budget. Be sure to use one table for each phase of your project, and
delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
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 $1,900 $100 Cash $2,000
2. Detailed resources
assessment Oct 31, 2021 $9,500 $500 Cash $10,000
3. Identification of land and
regulatory issues Jun 1, 2022 $4,750 $250 Cash $5,000
4. Detailed analysis of current
cost of energy and future
market
Mar 30, 2022 $4,750 $250 Cash $5,000
5. Assessment of alternatives Sep 30, 2022 $4,750 $250 Cash $5,000
6. Conceptual business and
operations plan Oct 31, 2022 $1,900 $100 Cash $2,000
7. Conceptual design report
and costs estimate Nov 1, 2022 $ -- $ -- -- $ --
Geotech $23,750 $1,250 Cash $25,000
Concept Design $55,100 $2,900 Cash $58,000
8. Detailed economic and
financial analyses Aug 30, 2022 $9,500 $500 Cash $10,000
9. Permitting and
environmental analysis Dec 15, 2022 $6,650 $350 Cash $7,000
10. Final report and
recommendations Dec 31, 2022 $5,700 $300 Cash $6,00
TOTALS $128,250 $6,750 $135,000
Budget Categories:
Direct Labor & Benefits $9,500 $500 Cash $10,000
Travel & Per Diem $9,500 $500 Cash $10,000
Equipment $9,500 $500 Cash $10,000
Materials & Supplies $ -- $ -- -- $ --
Contractual Services $99,750 $5,250 Cash $105,000
Construction Services $ -- $ -- -- $ --
Other $ -- $ -- -- $ --
TOTALS $128,250 $6,750 $135,000
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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3.2.4 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
AVEC based the proposed project budget for this grant application and estimates for subsequent
phases on past experience successfully completing wind resource feasibility studies and wind energy
infrastructure projects in remote Alaskan communities, including Mekoryuk and Toksook Bay.
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 construction
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, and 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 the State of Alaska’s
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
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large portion of their budgets. AVEC member communities expect status updat es 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 Directors 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 Accounting Department, all
expenditures are coded to budget categories and assigned to appropriate work orders. T he Projects
Development and Key Accounts Department, particularly its Project Manager, Assistant Project
Manager, and Senior Accountant are primarily responsible for all grant reporting.
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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 reason able,
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 an d 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 acc ounting
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 expense s (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).
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SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an
attachment to your application. In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information. If the
applicant does not have a project manager indicate how you intend to solicit project management
support. If the applicant expects project management assistance from AEA or another government
entity, state that in this section.
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.
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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, Project 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 coordinate 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 the 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 Goodnews Bay
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
Contractors for this project would include:
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• 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:
- 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
- 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:
“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
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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.
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SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. For pre-construction applications, describe the resource to
the extent known. For design and permitting or construction projects, please provide feasibility
documents, design documents, and permitting documents (if applicable) as attachments to this
application (See Section 11). Likelihood of the resource being available over the life of the project.
See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional
guidance.
According to existing knowledge and wind feasibility studies conducted for comparable
communities in the Lower Kuskokwim region, it is assumed Goodnews Bay is rated as a class 4 wind
regime. Based on initial review of AEA’s 2018 wind data collected in Goodnews Bay, the met tower
was placed in a location with class 3 wind. The purpose of the feasibility study is to fully analyze the
existing data to determine the wind energy potential in the community. See the attached wind data
report in Tab G.
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 Toksook Bay, Quinhagak, and Mekoryuk. Barging
in diesel fuel is the primary source of energy, 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
No permits are required for the proposed feasibility phase on this project.
FAA Air Navigation Hazard Permitting. After the turbine location and type have been selected, AVEC
would seek a no-hazard determination from FAA for the potential turbines. 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.
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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 for the potential turbines. A finding letter stating that the project
would not be expected to impact threatened or endangered species or birds would be drafted and
submitted to the USFWS once AVEC is assured design and construction of this project is funded. It
is expected that AVEC would receive concurrence from the Service within one month.
Clean Water Act (Section 401) Permit: Because many locations within Goodnews are wetlands, it is
possible that a wetlands permit would be needed from the U.S. Army Corps of Engineers (Corps) for
geotechnical work, and 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 any potential wind turbines. Should the
proposed feasibility study prove that wind energy is a viable resource in Goodnews Bay, AVEC will
consult with local municipal and other landowners in Goodnews Bay to select a site and to obtain
site control. A letter of non-objection will be sought from the corporation or city, depending on
location. Starting with a community meeting, 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.
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.
Weather: Weather could delay geotechnical fieldwork; 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 is delayed.
Turbine Selection: Since Goodnews Bay has a single-phase system, AVEC will have to identify a
suitable turbine that has never been employed in an AVEC village. This will involve AVEC managers
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consultants, and the community working together to determine the best choice for the community’s
system.
Permitting: 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 conduct 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
During the final design and permitting phases, once the wind project is better scoped, AVEC would
work with agencies to address the following environmental issues:
Threatened or endangered species. The U.S. Fish and Wildlife Service would be consulted to ensure
that installation of the wind project would have no effect on threatened or endangered species,
particularly Steller’s eiders, which are listed under the Endangered Species Act. If clearing is required
for the installation of the turbines, 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 wind project is placed in designated wetlands, 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.
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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 wind project would be located so as not to interfere with
current telecommunication services.
Aviation Considerations. 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 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 Goodnews Bay consists of 3 diesel generators in a single-
phase electrical system: 175 kW Allis Chalmers 685I; 250 kW Cummins LTA10; and 236kW Detroit
Diesel S60K4. During times of decreased demand, the smaller generators are utilized to reduce fuel
consumption. Individual generator efficiency is not tracked, but the aggregate diesel generator
efficiency in 2019 was 13.80 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.
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5.4.2 Existing Energy Generation Infrastructure and Production
In the following tables, only fill in areas below applicable to your project. You can remove extra
tables. If you have the data below in other formats, you can attach them to the application (see
Section 11).
5.4.2.1 Existing Power Generation Units
Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum
operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset
controllers, hours on genset
Unit 1: Diesel generator, Allis Chalmers 685I, 175 kilo-watt (kW), 1200 RPM, mechanical fuel
injection (FI), 27,000 hours
Unit 2: Diesel generator, Cummins LTA10, 250 kW, 25-50 kW, 1800 RPM, mechanical FI, 63,000
hours
Unit 3: Diesel generator, Detroit Diesel S60K4, 236 kW, 25-50 kW, 1200 RPM, electronic FI,
9,000 hours
Unit 4:
Unit 5:
Unit 6:
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
Yes, approximately 4,500 gallons to the
community washeteria and clinic
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 Goodnews Bay power plant generates at 120/240V single phase. There are three manually
operated fused switches that distribute power from the main bus. Two switches feed individual
75KVA, single phase, step-up transformers to provide 7200V grndy distribution. One switch provides
a direct feed of 120/240V single phase for distribution close to the power plant including service to
the washeteria and multi-purpose building. All distribution is overhead.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project) n/a
5.4.2.4 O&M and replacement costs for existing 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 an AVEC
aggregate number
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5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System)
Use most recent year. Replace the section (Type 1), (Type 2), and (Type 3) with generation
sources
Month Generation
(Diesel)
(kWh)
Generation
(Type 2)
(kWh)
Generation
(Type 3)
(kWh)
Fuel
Consumption
(Diesel-
Gallons)
Fuel
Consumption
[Other]
Peak
Load
(kWh)
Minimum
Load
(kWh)
(assuming
½ average
load)
January 71,565 5,234 160.0 48.10
February 64,642 4,653 153.0 48.10
March 66,278 4,864 147.0 44.54
April 64,139 4,595 152.0 44.54
May 58,117 4,226 137.0 39.06
June 45,315 3,309 80.0 31.47
July 45,436 3,378 73.0 30.54
August 49,933 3,789 96.0 33.56
September 63,384 4,457 106.0 44.02
October 60,824 4,357 95.0 40.88
November 63,230 4,365 103.0 43.91
December 75,617 5,498 123.0 50.82
Total 728,480 52,725 160.0 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, Goodnews Bay’s population has grown by about 3% in the last 10 years
(pop. 243 in 2010 to pop. 284 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 Goodnews Bay 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.
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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, resources assessment,
and conceptual design to assess the possibility of using wind power in Goodnews Bay. In every
deployment the integration of intermittent generation to the energy grid is a key component to a
successful project. The existing Goodnews Bay generation and distrib ution system is small, single
phase and manually operated. 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.
Integration plan: The wind turbines would need to interconnect with the existing diesel po wer plant
and single-phase system. 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 diesels-
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 Goodnews Bay.
Civil infrastructure: Assuming wind energy proves a viable resource in Goodnews Bay, 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.
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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 TBD
2 Wind 100 TBD TBD TBD 20 TBD
3 Wind 100 TBD TBD TBD 20 TBD
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.
A wind energy system in Goodnews Bay will be designed to operate with the existing diesel
generation system. The existing generation system will operate at a lower capacity to supplement
wind energy depending on fluctuations in available wind. Making wind generation the primary
energy source would likely require upgrades to the existing diesel generation and distribu tion
systems. It is expected that 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; however, the feasibility study will help to identif y system alternatives.
Installation of a 300-kW wind turbine capacity system in Goodnews Bay is anticipated to supply
most of the local energy demand, requiring minimal contributions from the existing diesel-
powered system. If the project is constructed, AVEC anticipates excess energy to be available in
the system given current power demands and will use the proposed feasibility study and
conceptual design report to identify wind to heat potential in the proposed system. AVEC has
existing recovered heat agreements in place with the Native Village of Goodnews Bay to provide
heat to community buildings, and intends to investigate the potential for wind to heat
opportunities through this project.
The proposed system will not alter the heating system or transportation needs. Goodnews Bay will
be primarily dependent on heating oil for home heating and diesel and gasoline fuel for
transportation needs.
The primary anticipated effect of the proposed system is a decreased use of diesel fuel for
electrical power generation. Also, the power generator use in Goodnews Bay would be decreased,
thereby decreasing generator operations and maintenance costs, enabling generators to last
longer and need fewer overhauls.
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5.4.5.1 Expected Capacity Factor 24%
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Month Generation
(Proposed
System -
Wind)
(kWh)
Generation
(Type 2 -
Diesel)
(kWh)
Generatio
n
(Type 3)
(kWh)
Fuel
Consumption
(Diesel-
Gallons)
Fuel
Consumption
[Other]
Secondary
load
(kWh)
Storage
(kWh)
January 52,500 19,065 1,381
February 52,500 12,142 880
March 52,500 13,778 998
April 52,500 11,639 843
May 52,500 5,617 407
June 52,500 0 (minimal) 0 (minimal)
July 52,500 0 (minimal) 0 (minimal)
August 52,500 0 (minimal) 0 (minimal)
September 52,500 10,884 788
October 52,500 8,324 603
November 52,500 10,730 777
December 52,500 23,117 1,675
Total 630,000 115,296 8,352
5.4.5.3 Annual Heating Fuel Consumption (Proposed System) n/a
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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.
$31,500 (construction project phase based on
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
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 ($) 2.92
Annual Units 8,352
Total Annual
cost ($)
24,389
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.
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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. No O&M costs are anticipated
during the feasibility phase of this project. 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 $0.50 per kWh.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
45,652 913,043
Anticipated Fuel Displaced for Heat
(gallons)
0 (TBD) 0 (TBD)
Total Fuel displaced (gallons) 45,652 913,043
Anticipated Diesel Fuel Displaced for Power
Generation ($)
107,679 (first year)
122,650 (average)
2,453,007
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 $107,679 $2,453,007
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 appli cation.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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The purpose of the proposed feasibility study and CDR is to assess technical and economic viability
of wind infrastructure in Goodnews Bay
The installation of a 300-kilowatt (kW) capacity system in Goodnews Bay is estimated to project
produce 630,00 kilowatt hours (kWh) annually. Based on this assumption, the possible
displacement of diesel fuel used for electricity generation would be an estimated 45,652 gallons
per year. Using AEA’s community fuel oil price projections, this project could save $107,679 during
the first year of operation. Over the life of the project, the estimated savings would be $2,453,007.
Please see the attached economic evaluation model in Tab G.
. 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 econo mically
viable system for wind energy in Goodnews Bay. AVEC anticipates that a 300-kW wind energy
system has the potential to supply the most of the existing energy demand in Goodnews Bay.
AVEC also anticipates the proposed system will have the capacity to provide wind to heat capacity
when excess energy is in the system. More information and analysis are needed to determine all
project benefits.
Goodnews Bay 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 $0.54 per kilowatt hour (kWh) as of
March 2020. This far exceeds the national benchmark. The residents of Goodnews Bay 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 Goodnews Bay’s
dependence on the PCE program. Un-subsidized energy costs are expected to decrease for
residents and commercial entities in Goodnews Bay, 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.
Goodnews Bay is a traditional Yup’ik Eskimo village with most residents supported by subsistence
activities. The high cost of energy is an extreme hardship for the low-income families of Goodnews
Bay, even considering PCE credits. Long-term positions are limited to positions with the city, tribe,
school, and few local businesses. According to 2018 American Community Survey 5-year
estimates, only 43.8% of the population was actively employed, with 41.1% living below the
poverty level. The median household income was $35,500, far below the median household
income for all Alaska. Reducing the reliance on diesel fuel power generation will provide long -term
socio-economic benefits to village households.
The Goodnews Bay Community Plan identifies 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
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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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.
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 Quinhagak, Toksook Bay, and
Mekoryuk.
AEA projections suggest the cost of fuel in Goodnews Bay to increase for the foreseeable future,
suggesting costs for continued dependence on diesel powered electricity in Goodnews Bay 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 ($)
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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
Data from this project will provide important information regarding wind resources in rural Alaska
to be applied in future projects.
Goodnews Bay 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 Goodnews Bay
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 Goodnews Bay could provide .
Like all of Alaska, Goodnews Bay is subject to long periods of darkness. Reliable electric service is
essential for the operation of home lighting, streetlights, and security lighting. Outside lig hting
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.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
At a minimum for construction projects, a business and operations plan should be attached and the
applicant should describe how it will be implemented. See Section 11.
7.1.1 Operation and Maintenance
Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed
project for its expected life
• Provide examples of success with similar or related long-term operations
• Describe the key personnel that will be available for operating and maintaining the
infrastructure.
• Describe the training plan for existing and future employees to become proficient at operating
and maintaining the proposed system.
• Describe the systems that will be used to track necessary supplies
• Describe the system will be used to ensure that scheduled maintenance is performed
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. 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 Goodnews Bay 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.
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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 (based on AVEC’s own justified estimation 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.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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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.
Identification of potential power buyer(s)/customer(s): AVEC, the existing electric utility serving
Goodnews Bay, 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.
Goodnews Bay has approximately 67 households and multiple municipal and community buildings
including a health clinic, 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.
With a year of wind data previously collected by AEA in Goodnews Bay, this project very ready to
move forward with analysis once funding is secured. AVEC has term agreements with engineering
and wind consultants, which will allow work to begin on the wind analysis and CDR quickly.
The geotechnical work would be completed under the direction of the engi neering consultants,
which have completed this type of work in the past. This would enable the g eotechnical field effort
to occur before winter.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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Furthermore, Goodnews Bay 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 Goodnews Bay, the Native
Village of Goodnews Bay, and Kuitsarak, Incorporated. 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.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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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.
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 Meeting 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.
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Goodnews Bay Wind Energy Feasibility and Conceptual Design Project
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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 – Electronic Application
Tab F – Certification
Tab G – Additional Materials (2018 AEA Wind Data Report; 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
NATIVE VILLAGE OF GOODNEWS BAY
TRADITIONAL VILLAGE COUNCIL
P.O. BOX 138
September 1, 2020
GOODNEWS BAY, ALASKA 99589
Phone: (907) 967-8929 Fax: (907) 967-8330
E-mail address: goodnews907@hotmail.com
Meera Kohler, President and CEO
Alaska Village Electric Cooperative, Inc. (AVEC)
4831 Eagle Street
Anchorage, AK 99503
Regarding: Letter of Support for Goodnews Bay Wind Power Feasibility Project
Dear Ms. Kohler,
The Native Village of Goodnews Bay understands that AVEC is preparing an Alaska Energy
Authority (AEA) Renewable Energy Fund (REF) grant application to study the feasibility of
wind power in Goodnews Bay. The study will involve analyzing existing meteorological data
previously collected by AEA. This work will 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 Goodnews Bay, AVEC could seek funding to prepare a final design, obtain permits , and
construct a wind energy project.
We fully support this study and seeking funding from the State's REF grant program, as it will
help determine if wind power is a solution to high and unstable power costs in our community.
The Native Village of Goodnews Bay is willing to work with AVEC in conducting the
geotechnical survey and completing the CDR. AVEC is welcome to include this letter in the
grant application package.
Sincerely ,
September 15, 2020
City of Goodnews Bay
P .O. Box 139
Goodnews Bay, Alaska 99589-0139
PHONE : (907) 967-8614 FAX: (907) 967-8124
cityofgoodnewsbay@gmail.com
Meera Kohler, President and CEO
Alaska Village Electric Cooperative, Inc. (AVEC)
4831 Eagle Street
Anchorage, AK 99503
Regarding: Letter of Support for Goodnews Bay Wind Power Feasibility Project
Dear Ms. Kohler,
The City of Goodnews Bay understands that AVEC is preparing an Alaska Energy Authority
(AEA) Renewable Energy Fund (REF) grant application to study the feasibility of wind power in
Goodnews Bay. The study will involve analyzing existing meteorological data previously
collected by AEA. This work will 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
Goodnews Bay, AVEC could seek funding to prepare a fmal design , obtain permits, and
construct a wind energy proj ect.
We fully support this study and seeking funding from the State's REF grant program, as it will
help determine if wind power is a solution to high and unstable power costs in our community.
The City of Goodnews Bay is willing to work with AVEC in conducting the geotechnical survey
and completing the CDR. AVEC is welcome to include this letter in the grant application
package.
Sincerely,
KUITSARAK, INC.
P.O. BOX 150
RECEIVED
SEP I I 2020
GOODNEWS BAY, ALASKA 99589
Phone: (907) 967-8428 Fax: (907) 967-8226 Email: kuitsarak99589@gmail.com AVE.G,
September 8, 2020
Meera Kohler, President and CEO
Alaska Village Electric Cooperative, Inc. (AVEC)
4831 Eagle Street
Anchorage , AK 99503
Regarding: Letter of Support for Goodnews Bay Wind Power Feasibility Project.
Dear Ms. Kohler,
Kuitsarak, Inc. understands that AVEC is preparing an Alaska Energy Authority
(AEA) Renewable Energy Fund (REF) grant application to study the feasibility of
wind power in Goodnews Bay. The study will involve analyzing meteorological
data previously collected by AEA. This work will also include conducting a
geotechnical study to determine ground conditions for wind power infrastructure
and preparing a conceptual design report (CDR). If the proposed feasibili ty study
shows that the wind is a viable energy resource for Goodnews Bay, AVEC could
seek funding to prepare a final design, obtain permits, and construct a wind
energy project.
We fully support this study and seeking funding from the State's REF grant
program, as it will help determine if wind power is a solution to high and
unstable power costs in our community. Kuitsarak, Inc. is willing to work with
AVEC in conducting the geotechnical survey and completing the CDR. AVEC is
welcome to include this letter in the grant application package.
Sincerely,
KUITSARAK, INC.
Sr., President
Cc:file
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
Alaska Energy Authority's 2018 Wind Data
Page 1 of 5Summary Report: Goodnews Bay
Data Set Properties
Report Created:9/12/2018 12:43 using Windographer 4.1.9
Filter Settings:<Unflagged data>
Variable Value Variable Value
Latitude N 67° 43' 29.640"Mean temperature -5.38 °C
Longitude W 164° 26' 25.380"Mean pressure
Elevation 88 m Mean air density 1.307 kg/m3
Start date 5/9/2011 07:00 Power density at 50m 313 W/m²
End date 5/18/2012 10:00 Wind power class 3 (Fair)
Duration 12 months Power law exponent 0.601
Length of time step 10 minutes Surface roughness 4.6 m
Calm threshold 0 m/s Roughness class 5.18
Page 2 of 5Summary Report: Goodnews Bay
Wind Speed and Direction
1 o .,----------""-""""'-'-"'-""''--'-'""-''-"~==-------,_ Speed 30 m A
-Speed 30m B
8
2
0 ~~~~~~~~~~7T~~~~~~~ Jan Feb M at Apr M ay Jun Jul Aug Sep Oct ~ov Dec
0 {0---------,6----------1 r2--------1r8--------~24
Hour of Day
-Speed20 m
-Speed 30 m A
-Speed 30m B
-Speed20 m
7 r---------~~~~~----~---.
1
-A ctual dala -Best-f4 Weibulldistribut ion (k=1.62, A =6 .47 mls)
W ind Dir ection Fr equ ency
0 '
180'
Mean W ind Speed
0 '
180'
Total W ind Ene r gy
0'
-Direction 29 m
-Direction 24 m
-Spe:d 30 m A
-Speed 30m B
-Speed 20m
-Speed 30m A WPO
-Speed 30 m S WPD
-Speed 20 m WPO
Page 3 of 5Summary Report: Goodnews Bay
Wind Shear
100
so
I ,
" " 60 e
Cl
" > 0 .c
<( 4{)
J:
"' ·a;
:1:
20
0
4
3
;:
" " 8_2
ill
3:
" .... :;;
3: 0
Q.
;:
" " 0 c.
ill
0
-1
0
2.0
1.5
3: 1.0
" ....
j
0.5
0 2 4
6
Da i l
6 8
Mean Wind Speed (m/s)
12
Hour
O.O' -I--;Ja:cn::-r-;:F:ce;:-b ~-;M-;:ar::-.--,A:-:o<::-.--;~-:-,.,-y~-J,.-u"n ~--,.Ju-;I ~-A:-u-g~-S=-e-p~--.,0,-c:l,--.--:-:t<-ov--l--::D-ec~
-Measured data
-Pow er la w fit
-Log la w fit
10 12 14
-All d ata
-Jan
-Feb
-Mar
-Apr
-May
-Jun
-Jul
-Au g
-sep
-Oct
-Nov
-Dec
18 24
Power Law Exponent (us ing MoMM)
Page 4 of 5Summary Report: Goodnews Bay
Turbulence Intensity
o.e•,---------------------------~----~Tu~r~b~u~l e~n~c~e~l n~t~e~ns~i~a~t~3~0~m~---------------------------------
0.5
0.1
o.o 1o~------------,5~------------~10c-------------~1 c5------------~20~-------------2T5 ______________ 30,-J
Wind Spe ed (m/s)
0 .35.,--_________ T.!Cu!!!r~b~u~l e'-!!n~c~e~l n~t!Oe~ns~i.!I..!a!!t'-'3!!!0C!m!!_ ________ _, Turbu lence Intens ity at 30 m
0 '
-Representative Tl
-Mean TI
Std Error
-Representative Tl
-Mea nTI
0.30
~ 0.25
·;;
" ~0.20
1l
" -5 0.15
€
" ....
0.10
0.05
0.00 -\--,--,..,-.,.-,.,..,---.-,-.,.,-~----.---~~~--.---~--~--1 Ja n Feb M.at Apr M ay Jun Ju l Aug Sep Od N-ov Dec
@
0 .15
180:-
o.30 ;-------------------------------~T~ur~b!!!u!!!l e~n~c~eC!I n!!!t~e~n~s,~· La~t~3~0umw_ __________ ~-------------------.
0.25
·~0.20
" ~
E.
1l 0.15
" " 3
~0.10 ....
0.05
o.oo'~oc---------------------,6--------------------~1c2----------------------1 Sr-------------------~24
Hour of Day
-Representative Tl
-Mean TI
Page 5 of 5Summary Report: Goodnews Bay
Data Column Properties
#
#
Label Units Height Possible
Data Points
Valid
Data Points
DRR
(%)
Mean MoMM Median Min Max Std. Dev
1 Speed 30 m A m/s 30 m 54,018 53,868 99.72 5.804 5.816 5.200 0.400 26.700 3.633
2 Speed 30 m A SD m/s 30 m 54,018 53,868 99.72 0.513 0.516 0.400 0.000 3.100 0.317
3 Speed 30 m A Max m/s 30 m 54,018 53,868 99.72 7.050 7.068 6.100 0.400 33.200 4.251
4 Speed 30 m A Min m/s 30 m 54,018 53,868 99.72 4.519 4.523 4.200 0.400 22.100 3.023
5 Speed 30 m B m/s 30 m 54,018 53,868 99.72 5.731 5.741 5.100 0.400 26.700 3.639
6 Speed 30 m B SD m/s 30 m 54,018 53,868 99.72 0.516 0.519 0.400 0.000 3.200 0.323
7 Speed 30 m B Max m/s 30 m 54,018 53,868 99.72 6.991 7.008 6.100 0.400 33.600 4.276
8 Speed 30 m B Min m/s 30 m 54,018 53,868 99.72 4.434 4.437 4.200 0.400 21.000 3.014
9 Speed 20 m m/s 20 m 54,018 26,889 49.78 4.837 4.837 3.600 0.400 24.800 4.433
10 Speed 20 m SD m/s 20 m 54,018 26,889 49.78 0.788 0.788 0.500 0.000 265.200 1.799
11 Speed 20 m Max m/s 20 m 54,018 26,889 49.78 6.895 6.895 6.100 0.400 4,528.700 28.072
12 Speed 20 m Min m/s 20 m 54,018 26,889 49.78 3.158 3.158 1.100 0.400 21.400 3.608
13 Direction 29 m °29 m 54,018 53,868 99.72 47.6 131.8 89.0 0.0 359.0 75.3
14 Direction 29 m SD °29 m 54,018 53,868 99.72 5.1 5.1 4.0 0.0 133.0 5.2
15 Direction 29 m Max °29 m 54,018 53,868 99.72 143.1 142.2 95.0 0.0 359.0 117.8
16 Direction 29 m Min °29 m 54,018 53,868 99.72 351.0 351.0 351.0 351.0 351.0 0.1
17 Direction 24 m °20 m 54,018 53,868 99.72 1.7 1.8 0.0 0.0 24.0 3.2
18 Direction 24 m SD °20 m 54,018 53,868 99.72 0.0 0.0 0.0 0.0 3.0 0.1
19 Direction 24 m Max °20 m 54,018 53,868 99.72 0.7 0.7 0.0 0.0 20.0 1.9
20 Direction 24 m Min °20 m 54,018 53,868 99.72 0.0 0.0 0.0 0.0 0.0 0.0
21 Temperature 2 m °C 2 m 54,018 53,868 99.72 -5.23 -5.38 -3.20 -48.70 28.90 15.61
22 Temperature 2 m SD °C 2 m 54,018 53,868 99.72 0.07 0.07 0.00 0.00 2.50 0.14
23 Temperature 2 m Max °C 2 m 54,018 53,868 99.72 -4.95 -5.10 -3.00 -48.50 29.30 15.59
24 Temperature 2 m Min °C 2 m 54,018 53,868 99.72 -5.45 -5.60 -3.50 -48.90 28.60 15.63
25 Air Density kg/m3 54,018 54,018 100.00 1.306 1.307 1.292 1.148 1.556 0.080
26 Speed 30 m A TI 54,018 53,868 99.72 0.11 0.11 0.09 0.00 1.20 0.09
27 Speed 30 m B TI 54,018 53,868 99.72 0.11 0.11 0.09 0.00 1.20 0.10
28 Speed 20 m TI 54,018 26,889 49.78 0.26 0.26 0.10 0.00 17.22 0.38
29 Speed 30 m A WPD W/m²54,018 53,868 99.72 315 318 91 0 12,588 712
30 Speed 30 m B WPD W/m²54,018 53,868 99.72 308 311 87 0 12,588 702
31 Speed 20 m WPD W/m²54,018 26,889 49.78 316 316 30 0 10,713 658
REF Round 13 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 $1,653,523.79
NPV Capital Costs $2,762,970
B/C Ratio 0.60
NPV Net Benefit ($1,109,446)
Performance Unit Value
Displaced Electricity kWh per year 630,000
Displaced Electricity total lifetime kWh 12,600,000
Displaced Petroleum Fuel gallons per year 45,652
Displaced Petroleum Fuel total lifetime gallons 913,043
Displaced Natural Gas MCF per year -
Displaced Natural Gas total lifetime MCF -
Avoided CO2 tonnes per year 463
Avoided CO2 total lifetime tonnes 9,267
Proposed System Unit Value
Capital Costs $3,000,000$
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 13.80
Total current annual diesel generation kWh/gallon
728,000 13.80
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
Goodnews Bay
Goodnews Bay
Rural
Wind
AVEC
Goodnews Bay Wind Energy Feasibility Study and Conceptual Design Project
Diesel Generation Efficiency
4 5 6 7
Annual Cost Savings Units 2020 2021 2022 2023
Entered Value Project Capital Cost $ per year 135,000$ 365,000$ 2,500,000$
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 -$ (135,000)$ (365,000)$ (2,500,000)$
Electric Units 2020 2021 2022 2023
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 2.80$ 2.84$ 2.92$ 2.97$
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 2020 2021 2022 2023
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
8 9 10 11 12 13 14 15 16 17 18
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
107,679$ 110,494$ 112,534$ 114,460$ 116,275$ 117,981$ 119,580$ 121,073$ 122,464$ 123,752$ 124,939$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
107,679$ 110,494$ 112,534$ 114,460$ 116,275$ 117,981$ 119,580$ 121,073$ 122,464$ 123,752$ 124,939$
107,679$ 110,494$ 112,534$ 114,460$ 116,275$ 117,981$ 119,580$ 121,073$ 122,464$ 123,752$ 124,939$
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000
31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$
630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000
3.05$ 3.11$ 3.16$ 3.20$ 3.24$ 3.27$ 3.31$ 3.34$ 3.37$ 3.40$ 3.43$
-$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
45,652 45,652 45,652 45,652 45,652 45,652 45,652 45,652 45,652 45,652 45,652
139,179$ 141,994$ 144,034$ 145,960$ 147,775$ 149,481$ 151,080$ 152,573$ 153,964$ 155,252$ 156,439$
139,179$ 141,994$ 144,034$ 145,960$ 147,775$ 149,481$ 151,080$ 152,573$ 153,964$ 155,252$ 156,439$
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-----------
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
19 20 21 22 23 24 25 26 27 28
2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
126,027$ 127,017$ 127,909$ 128,704$ 129,404$ 130,009$ 130,519$ 130,934$ 131,257$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
126,027$ 127,017$ 127,909$ 128,704$ 129,404$ 130,009$ 130,519$ 130,934$ 131,257$ -$
126,027$ 127,017$ 127,909$ 128,704$ 129,404$ 130,009$ 130,519$ 130,934$ 131,257$ -$
2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 -
31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ -$
630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 630,000 -
3.45$ 3.47$ 3.49$ 3.51$ 3.52$ 3.54$ 3.55$ 3.56$ 3.57$ 3.57$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
45,652 45,652 45,652 45,652 45,652 45,652 45,652 45,652 45,652 -
157,527$ 158,517$ 159,409$ 160,204$ 160,904$ 161,509$ 162,019$ 162,434$ 162,757$ -$
157,527$ 158,517$ 159,409$ 160,204$ 160,904$ 161,509$ 162,019$ 162,434$ 162,757$ -$
2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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