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HomeMy WebLinkAboutAPP_13001-REF Round 13 Standard Appilcation - NETC - 28Sept2020Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 1 of 51 9/28/2020 Application Forms and Instructions This instruction page and the following grant application constitutes the Gr ant Application Form for Round 13 of the Renewable Energy Fund (REF). A separate application form is available for projects with a primary purpose of producing heat (see Request for Applications (RFA) Section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the RFA and both application forms is available online at: www.akenergyauthority.org/what-we-do/grants-loans/renewable-energy-fund-ref-grants/2020-ref- application. What follows are some basic information and instructions for this application:  The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year solicitation cycle with an opt-out provision in the second year of the cycle .  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases (e.g. final design, construction) for the same project may be submitted as one application.  If you are applying for grant funding for more than one ph ase of a project, provide milestones and grant budget for each phase of the project (see Sections 3.1 and 3.2.2).  In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 Alaska Administrative Code (ACC) 107.605(1).  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted . Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, business and operation plans, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application.  If you have additional information or reports you would like the Aut hority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web l inks, in Section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource-specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round 13 RFA.  In the Sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed.  If you need assistance with your application, please contact AEA’s Grants Manager Karin St. Clair by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 2 of 51 9/28/2020 REMINDER:  AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application.  In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by AEA. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential, it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 3 of 51 9/28/2020 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) Nushagak Electric & Telephone Cooperative Tax ID # 92-0177246 Date of last financial statement audit: April, 2020 Mailing Address: Physical Address: Box 350 557 Kenny Wren Rd Dillingham, AK 99576 Dillingham, AK 99576 Telephone: Fax: Email: 907-842-5251 907-842-2799 rhimschoot@nushagak.coop 1.1 Applicant Point of Contact / Grants Manager Name: Robert Himschoot Title: CEO/GM Mailing Address: Nushagak Electric & Telephone Cooperative Box 350 Dillingham, AK 99576 Telephone: Fax: Email: 907-843-0954 907-842-2799 rhimschoot@nushagak.coop 1.1.1 Applicant Signatory Authority Contact Information Name: Robert Himschoot Title: CEO/GM Mailing Address: Nushagak Electric & Telephone Cooperative Box 350 Dillingham, AK 99576 Telephone: Fax: Email: 907-842-5251 907-842-2799 rhimschoot@nushagak.coop 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Bobby Armstrong 907-842-5251 907-842-2799 barmstrong@nushagak.coop Angelita Venua 907-842-5251 907-842-2799 avenue@nushagak.coop Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 4 of 51 9/28/2020 1.2 Applicant Minimum Requirements Please check as appropriate. If applicant s 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 # 45 ☐ 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 AEA 21010 Page 5 of 51 9/28/2020 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Nuyakuk River Hydroelectric Project (Run of River Project) 2.2 Project Location 2.2.1 Location of Project – Latitude and longitude (preferred), street address, or community name. Latitude 59.910807 North Longitude 158.118627 West The proposed Project would be located on the Nuyakuk River approximately 60 miles north of Dillingham, AK (pop. 2,364). The Project is located within the watershed that drains the eastern side of the Wood River Mountains. The Project site is inside the current Wood -Tikchik State Park boundary by approximately 4 miles. The Project’s river intake would divert water from the Nuyakuk River, above Nuyakuk Falls, located about 4.6 river miles downstream from the Tikchik Lake outlet to the powerhouse located at the base of Nuyakuk Falls, at approximately river mile 5.3. From the Project site, the Nuyakuk River runs approximately 40 miles before converging with the Nushagak River, which continues to Bristol Bay. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Koliganek, New Stuyahok, Ekwok, Aleknagik, Dillingham, Levelock 2.3 Project Type 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) Dispatchable renewable heat, Broadband ☐ 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 Desig n ☐ Construction Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 6 of 51 9/28/2020 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. The proposed Project is a new 10 -12 MW run of river hydropower project consisting of an intake structure, power conduit, powerhouse forebay, powerhouse, and tailrace channel approximately 4 miles downstream of the Tikchik Lake outlet above a natural falls on the Nuyakuk River. Power from the Project would be available to the customers of the Cooperative and potentially other areas in the region. The renewable power provided by the Project would represent a significant improvement in the current distribution system and minimize the reliance of local communities on fossil fuels as their primary source of electricity. Currently, the population that w ould be served by this Project relies wholly on diesel generation, which is barged upstream through the Nushagak River drainage to requisite locations. The reduction (or elimination) of water transport of fuels will reduce the potential for negative enviro nmental impacts due to spills. The primary industry in the Project service area is related to commercial harvest and processing of salmon. The long -term demand for more reliable, efficient, and cost -effective renewable electric power, dispatchable renewable thermal heat, high-speed broadband, along with the likely limited resource impacts makes this Project a highly viable opportunity. Initially this project will replace up to 1.5 million gallons of diesel fuel annually , eventually up to 2.5 million gallons per year of diesel fuel will be replaced with renewable hydro energy which will provide electric power, heating, or thermal conversion to other useful energy needs. We believe the combination of renewable energy and increased broadband access will provid e the basis for economic and social improvement and growth in the region for generations to come. 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. REF funding will be applied to Phases II and III of this Project. Phase II will include the FERC Integrated Licensing Process (ILP) Study Seasons 2021, 2022, with the completion milestone identified as filing the 2022 Study Season Report for FERC Project No. 14873 in the Fall of 2022 and NETC Board action to continue Project work. Specific REF Grant Allocation spending will include: Ice Processes Study, Initial Geotechnical Study (Phase II), Preliminary Design and Engineering and Land Access and Use Agreements. The overall Phase II cost estimate is $1,175,000. Phase III will culminate with the Project being ―shovel ready‖. Shovel ready will include final design and engineering, operational planning including environmental & natural resource management plans, Land use authorizations, water rights authorization, FERC Operating License and financial agreements including Project construction funding and energy sales agreements. Specific REF Grant Allocations will be used for Aquatics Studies, and Engineering, the Milestone for Phase completion will be the Operating Permit Application for FERC Project No. 14873 in the Fall of 2023. The overall Phase III cost estimate is $11,105,000. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 7 of 51 9/28/2020 2.6 Previous REF Applications for the Project See Section 1.15 of the RFA for the maximum per project cumulative grant award amount Round Submitted Title of application Application #, if known Did you receive a grant? Y/N Amount of REF grant awarded ($) No previous REF applications for this Project SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Task # Milestones Tasks Start Date End Date Deliverables Phase II Task 1 2022 Study Season Report/NETC Board action to continue Project Study: Water Quality Assessment - Dissolved Oxygen and Water Temperatures 8/1/21 12/31/22 Study Report Phase II Task 2 2022 Study Season Report/NETC Board action to continue Project Study: Flow Duration Curve Assessment 8/1/21 12/31/22 Study Report Phase II Task 3 2022 Study Season Report/NETC Board action to continue Project Study: Future Flows Assessment 8/1/21 12/31/22 Study Report Phase II Task 4 2022 Study Season Report/NETC Board action to continue Project Study: Ice Processes Assessment 8/1/21 12/31/22 Study Report Phase II Task 5 2022 Study Season Report/NETC Board action to continue Project Study: Botanical and Wetlands Survey 8/1/21 12/31/22 Study Report Phase II Task 6 2022 Study Season Report/NETC Board action to continue Project Study: Recreation and Aesthetics Study/Noise Study 8/1/21 12/31/22 Study Report Phase II Task 7 2022 Study Season Report/NETC Board action to continue Project Initial Geotechnical Study 8/1/21 12/31/22 Study Report Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 8 of 51 9/28/2020 Task # Milestones Tasks Start Date End Date Deliverables Phase III Task 1 FERC Operating License Application Study: Fish Species Abundance and Distribution Near the Project Area 8/1/21 12/31/23 Study Report Phase III Task 2 FERC Operating License Application Study: Nuyakuk Falls Fish Passage Study 8/1/21 12/31/23 Study Report Phase III Task 3 FERC Operating License Application Study: Fish Entrainment and Impingement Study 8/1/21 12/31/23 Study Report Phase III Task 4 FERC Operating License Application Study: Assessment of False Attraction at the Tailrace Fish Barrier 8/1/21 12/31/23 Study Report Phase III Task 5 FERC Operating License Application Design & Engineering 8/1/21 12/31/23 Engineering/Design documents 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 $ 2,000,000 Cash match to be provideda $10,280,000 In-kind match to be provideda $ Energy efficiency match providedb $ Total costs for project phase(s) covered in application (sum of above) $12,280,000 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. Nushagak has spent $578,624 to complete Phase I and an additional $81,193 on Phase II tasks to date. The Board has approved a capital spending budget for this Project of $1,300,000 total. The remaining $640,183 is secured in sinking funds invested. The remaining $9,670,000 needed to complete Phase II and Phase III will come from a combination of direct allocations from the State of Alaska, grant funding programs through Denali Commission, USDA /RUS, BIA Indian Energy, DOE Indian Energy, and further Nushagak Electric & Telephone Cooperative capital investment through debt service obligations. Phase II is the larger funding issue, because grant programs at USDA/RUS, BIA and DOE do not allow funding for feasibility studies. Meetings with all of the agencies listed indicate strong interest in funding once a FERC Operational Permit is issued, a milestone for Phase III completion. a Attach documentation for proof (see Section 1.18 of the Request for Applications) Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 9 of 51 9/28/2020 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. Cost overruns/shortfalls will be met with additional capital spending by NETC. NETC has an adequate line of credit with NRU/CFC to cover these contingencies. Current unencumbered line of credit is $6,600,000 3.2.3 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Indicate if the costs were actual or estimated. Reconnaissance Actual $578,624 Feasibility and Conceptual Design Estimated $ 1,175,000 Final Design and Permitting Estimated $11,105,000 Construction (Broken Down) Construction – Hydro facilities & Transmission to Aleknagik & Dillingham Estimated $98,000,000 Construction – Transmission to Koliganek, New Stuyahok, Ekwok, & Levelock Estimated $42,000,000 Total Project Costs (sum of above) Estimated $152,858,624 Metering/Tracking Equipment [not included in project cost] Estimated Included in construction costs 3.2.4 Funding Subsequent Phases If subsequent phases are required beyond the phases being applied for in this application, describe the anticipated source s 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, carbon credits or other renewable energy subsidies or programs that might be come available) As part of developing the Project feasibility NETC held a series of meetings in advance of initiating the FERC ILP licensing process. From October 2017 through the FERC Scoping Meeting in December of 2019 we held 92 stakeholder meetings. While most of these meetings were intended to introduce the Project and gauge support we also took the opportunity to explore funding options for Project construction. Opportunities identified include: • 12/17/2017 Met with NRUCFC, Sheldon Peterson/CEO, verbal support for debt service with an operating license • 12/17/2017 Met with USDA/RUS, Chris McLean acting administrator, also verbal support for debt service with an operating license, specific program identified, use of underutilized SUTA funds • 1/26/2018 Met with AEA/AIDEA, discussed the Renewable Energy Fund, Power Project Fund as opportunities for study or const ruction funding Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 10 of 51 9/28/2020 • 11/13/2019 Met with BIA Indian Energy & Economic Development, Jack Stevens, discussed programs including EMDP and TEDC grants that could be applied for by Tribal organizations for inter-tie transmission line build. • 11/13/2019 Met with DOE Indian Energy Director Frost, discussed several grant and technical assistance options including grant opportunities that could be applied for by Tribal organizations for inter-tie transmission line build. • Met with Denali Commission staff on multiple occasions in early 2020, Tom Wolf, Energy Program Manager, and Janet Davis, Grants Management Officer. Applied for 2020 funding in January and revised in February. • Met on several occasions with State Legislative delegation and Administration. Have submitted a CAPSIS request each of the last three years. 3.2.5 Budget Forms Applications MUST include a separate worksheet for each project phase that was identified in Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project’s total budget. Be sure to use one table for each phase of your project, and delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA ’s Grants Manager Karin St. Clair by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Phase 1 — Reconnaissance Milestone or Task Anticipated Completion Date RE- Fund Grantee Matching Source of Matching Funds: TOTALS Grant Funds Funds Cash/In- kind/Federal Grants/Other State Grants/Other Acquisition of Park Access Legislation and Public Outreach Expense $ $32,615 Cash $32,615 Site logistics & transportation $ $46,159 Cash $46,159 Survey/Field work $ $156,523 Cash $156,523 Preliminary Permit Application 6/11/2018 $ $20,000 Cash $20,000 Prepare Preliminary Application Document (PAD) & Notice of Intent (NOI) 10/8/2019 $ $40,000 Cash $40,000 FERC Scoping Process 3/18/2020 $ $20,000 Cash $20,000 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 11 of 51 9/28/2020 Proposed Study Plan (PSP) Development 4/16/2020 $ $60,000 Cash $60,000 FERC Regulatory Process Management 4/16/2020 $ $80,000 Cash $80,000 Conceptual Project Design 2/1/2020 $ $50,000 Cash $50,000 Initial Economic Feasibility Assessment 10/8/2019 $ $30,000 Cash $30,000 Project Kickoff Meeting with Agencies 11/18/2019 $ $20,000 Cash $20,000 Project Management (Nushagak Coop). $ $23,327 Cash $23,327 TOTALS $ $578,624 $578,624 Budget Categories: Direct Labor & Benefits $ $23,327 $23,327 Travel & Per Diem $ $76,159 $76,159 Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $446,523 $446,523 Construction Services $ $ $ Other Public Outreach $ $32,615 $32,615 TOTALS $ $578,624 $578,624 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 12 of 51 9/28/2020 Phase 2 — Feasibility and Conceptual Design Milestone or Task Anticipated Completion Date RE- Fund Grantee Matching Source of Matching Funds: TOTALS Grant Funds Funds Cash/In- kind/Federal Grants/Other State Grants/Other Final Milestone for this Phase are Study Reports for the tasks and the 2022 Study Season Report, Board for review/action $ $ Phase II Task 1: Study: Water Quality Assessment - Dissolved Oxygen and Water Temperatures 12/31/2022 $35,000 $10,000 Cash $45,000 Phase II Task 2: Study: Flow Duration Curve Assessment 12/31/2021 $105,000 $20,000 Cash $125,000 Phase II Task 3: Study: Future Flows Assessment 12/31/2021 $90,000 $10,000 Cash $100,000 Phase II Task 4: Study: Ice Processes Assessment 12/31/2021 $40,000 $10,000 Cash $50,000 Phase II Task 5: Study: Botanical and Wetlands Survey 12/31/2022 $170,000 $30,000 Cash $200,000 Phase II Task 6: Study: Recreation and Aesthetics Study/Noise Study 12/31/2022 $35,000 $10,000 Cash $45,000 Phase II Task 7: Initial Geotechnical Study 10/1/2021 $525,000 $75,000 Cash $600,000 Project Management and Outreach (Nushagak Coop.) 6/30/2024 0 $10,000 Cash $10,000 TOTALS $1,000,000 $200,000 $1,200,000 Budget Categories: Direct Labor & Benefits $ $10,000 $10,000 Travel & Per Diem $ $25,000 $25,000 Equipment $ $35,000 $35,000 Materials & Supplies $ $25,000 $25,000 Contractual Services $1,000,000 $55,000 $1,055,000 Construction Services $ $ $0 Other $ $ 0 TOTALS $1,000,000 $175,000 $1,175,000 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 13 of 51 9/28/2020 Phase 3 — Final Design and Permitting Milestone or Task Anticipated Completion Date RE- Fund Grantee Matching Source of Matching Funds: TOTALS Grant Funds Funds Cash/In- kind/Federal Grants/Other State Grants/Other Final Milestone for this Phase are Study Reports and the FERC Operating License Application for the tasks and a ―Shovel Ready‖ project $ $ $ Phase III Task 1: Study: Fish Species Abundance and Distribution Near the Project Area 12/31/2023 $500,000 $300,000 Cash $800,000 Phase III Task 2: Study: Nuyakuk Falls Fish Passage Study 12/31/2023 $100,000 $100,000 Cash $200,000 Phase III Task 3: Study: Fish Entrainment and Impingement Study 12/31/2023 $100,000 $100,000 Cash $200,000 Phase III Task 4: Study: Assessment of False Attraction at the Tailrace Fish Barrier 12/31/2023 $100,000 $150,000 Cash $250,000 Study: Caribou Population Evaluation 12/31/2023 0 $75,000 Cash 75000 Study: Cultural Resources Subsistence Study 12/31/2023 0 $100,000 Cash 100000 Study: Cultural Resources Section 106 Evaluation 12/31/2023 0 $300,000 Cash $300,000 Study: Recreation Inventory by Season 12/31/2023 0 $200,000 Cash $200,000 Phase III Task 5: Engineering & Legal, resulting in an Engineer Procure Construct (EPC) contract and financial agreements 12/31/2023 $200,000 $800,000 Cash $1,000,000 Land Access and Use Agreements 12/31/2023 $0 $200,000 Cash $200,000 Site/Study Permitting 12/31/2023 0 $250,000 Cash $250,000 Economic and Financial Analysis 12/31/2023 0 $100,000 Cash $100,000 FERC/Regulatory Process Management and License Application Preparation 6/30/2024 0 $2,000,000 Cash $2,000,000 Project Management and Outreach (Nushagak Coop.) 6/30/2024 0 $60,000 Cash $60,000 Secondary Geotechnical Study 12/31/2026 $0 $1,300,000 Cash $1,300,000 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 14 of 51 9/28/2020 Engineering Design 12/31/2026 0 $2,300,000 Cash $2,300,000 Permits & Consultation 12/31/2026 0 $200,000 Cash $200,000 Preparation of Environmental/Natural Resource Management Plans 12/31/2026 0 $1,000,000 Cash $1,000,000 Land Use Authorization 12/31/2026 0 $500,000 Cash $500,000 Financing and Energy Agreements 12/31/2026 0 $ $ Adjudication of Water Right 12/31/2026 0 $50,000 Cash $50,000 Project Management (Nushagak Coop.) 12/31/2026 0 $20,000 Cash $20,000 TOTALS $1,000,000 $10,105,000 $11,105,000 Budget Categories: Direct Labor & Benefits $ $80,000 $80,000 Travel & Per Diem $ $260,000 $260,000 Equipment $ $500,000 $500,000 Materials & Supplies $ $ $ Contractual Services $1,000,000 $9,265,000 $10,265,000 Construction Services $ $ $ Other $ $ $ TOTALS $1,000,000 $10,105,000 $11,105,000 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 15 of 51 9/28/2020 Phase 4 — Construction Milestone or Task Anticipated Completion Date RE- Fund Grantee Matching Source of Matchin g Funds: TOTALS Grant Funds Funds Cash/In - kind/Fe deral Grants/ Other State Grants/ Other (List milestones based on phase and type of project. See Sections 2.3 thru 2.6 of the RFA ) $ $ $ EPC Construction Services 12/31/2028 $ $129,000,000 Cash $129,000,000 Environmental Monitoring & Reporting 12/31/2028 $ $8,000,000 Cash $8,000,000 Permit Reporting 12/31/2028 $ $3,000,000 Cash $3,000,000 Project Management (Nushagak Coop) $ $125,000 Cash $125,000 TOTALS $ $140,125,000 $140,125,000 Budget Categories: Direct Labor & Benefits $ $125,000 $125,000 Travel & Per Diem $ $5,000,000 $5,000,000 Equipment $ $25,000,000 $25,000,000 Materials & Supplies $ $5,000,000 $5,000,000 Contractual Services $ $5,000,000 $5,000,000 Construction Services $ $100,000,000 $100,000,000 Other $ $ $ TOTALS $ $140,125,000 $140,125,000 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 16 of 51 9/28/2020 3.2.6 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. The costs associated with Phase II through IV of this Project were developed with NETC’s project consultant, McMillen Jacobs Associates, and reflects their experience in like kind hydroelectric development in the State of Alaska. In the past 10 years, McMillen Jacobs Associates has worked on over 15 hydroelectric projects in Alaska, with services including feasibility assessments, engineering, design-build construction, natural resource study program management, and FERC licensing, relicensing, license amendments, and license implementation and compliance. McMillen Jacobs recently assisted Homer Electric Association (Kenai Hydro, LLC) with the acquisition of an original license for the Grant Lake Hydroelectric Project (FERC No. P -13212), including all phases of license application preparation, natural resource study program management, and engineering design. The Grant Lake project received a FERC operating license in August 2019 and project generation is expected to begin in 2024 following a 2 -year construction period. 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? NETC will provide quarterly and annual progress reports to AEA. These reports with contain both specific grant expenditures and overall Project progress including intra-milestone Project advances. In addition, NETC will provide AEA copies of the FERC required annual/seasonal reports and the go/no go Board actions associated with these reports. Documents that mark the individual completion of Tasks and Phases that lead to the FERC Operating Permit Application will also be posted to the Project website, https://www.nuyakukhydro.com/ and to the FERC document portal using the identifier for this Project P-14873, https://elibrary.ferc.gov/eLibrary/search 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. NETC utilizes holistic accounting National Information Solutions Cooperative (NISC) software that includes project work order line item and categorical expenditures. NETC will provide these reports to AEA quarterly and annually. In the past 10 years NETC has su ccessfully completed reporting for two USDA/RUS HECG Grants along with a previous AEA REF Grant. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 17 of 51 9/28/2020 SECTION 4 – QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Include resumes for known key personnel and contractors, including all functions below, as an attachment to your application . In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Project management duties for Phases II and III will be contracted to McMillen Jacobs Associates to build on Project development accomplished in Phase I. In addition Project management support will be provided by Mr. Bobby Armstrong, NETC’s Electric Operations Manager. 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 soli cit financial accounting support. Project accounting for Phases II and III will be provided by NETC’s in -house accounting department led by Senior Accountant Angelita Venua. In addition NETC will undergo yearly third party audits. 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 task s;  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. Applicant: Nushagak Electric and Telephone Cooperative (NETC) is a member-owned Cooperative providing electric and telecommunications services in rural Alaska. Offices and power production facility are in Dillingham, Alaska. NETC’s electric division generates and distributes electric service to the communities of Dillingham and Aleknagik and has been providing distributed electric energy to these communities since 1965. NETC has 11.2 MW of diesel generation capacit y with 1,475 metered customers. For all Phases/Milestones: NETC will be responsible for Project outreach, Project finance, Project accounting and supporting Project management. Direct milestone responsibility in Phase II and Phase III includes: Economic and Financial Analysis, Project Management and Outreach, Land Access and Use Agreements, and Site/Study Permitting. NETC personnel are all residents of Bristol Bay and have extensive western Alaska logistical knowledge. Scheduling and other resources will be process-driven and goal-oriented. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 18 of 51 9/28/2020 Contractors: McMillen Jacobs Associates will provide consulting services to the applicant, including regulatory services, RFP development and contractor selection and Project Management. McMillen Jacobs will also act as general Project manager through Phases II and III with overall responsibility to maintain both the FERC ILP timeline and reporting and also meet REF Grant funding timelines and Project update reporting. Phase II direct milestone responsibilities inclu de: Water Quality Assessment - Dissolved Oxygen and Water Temperatures, Flow Duration Curve Assessment, Ice Processes Assessment, Botanical and Wetlands Survey, Preliminary Design & Engineering, FERC/Regulatory Process Management and License Application Pr eparation. R2 Resource Consultants: R2 has extensive hydroelectric licensing experience including six projects in Alaska. They will provide fish passage and aquatics consulting. They will be responsible for Phase II and Phase III studies including: Fish Species Abundance and Distribution Near the Project Area, Nuyakuk Falls Fish Passage Study, Fish Entrainment and Impingement Study, Assessment of False Attraction at the Tailrace Fish Barrier Cultural Resources Consultants: CRC has extensive background in cultural resource study and evaluation. They will provide the Project with their experience in developing and completing our cultural resource based Phase II and Phase III studies: Recreation and Aesthetics Study/Noise Study, Cultural Resources Subsistence Study, Cultural Resources Section 106 Evaluation, and Recreation Inventory by Season . Initial Geotechnical Study: NETC, through McMillen Jacobs, has submitted an RFP and received three responses for this study. We are evaluating the responses and expect to award the Phase II work in 2020 for 2021 work and completion. NOAA/NMFS: NMFS recommended the Future Flows Assessment during the study plan development process. We have engaged with them in a collaborative effort to complete this Phase II study. Alaska Department of Fish & Game: We are engaging in a collaborative effort with ADF&G to extend existing ADF&G programs to complete the Caribou Population Evaluation and the Cultural Resources Subsistence Phase II and Phase III Study. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. NETC and McMillen Jacobs will continue to use local resources for logistical support and encourage the use of local resources to complete the contracted studies where the exper tise exists locally. The power plant operations personnel will be trained from NETC existing power plant operational personnel, all local. Additional necessary personnel will be hired locally through our local hire initiative. Transmission line operations will be handled by NETC’s current distribution line crew. Additional workforce will be developed through our apprentice program. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 19 of 51 9/28/2020 SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability 5.1.1 Assessment of Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application (See Section 11). Likelihood of the resource being available over the life of the project . See the ―Resource Assessment‖ se ction of the appropriate Best Practice Checklist for additional guidance. The primary mode of operation for this Project will be level control, whereby outflow is balanced to inflow. The Project is conceived as a run-of -river project, with no large storage component. As such, power production will mimic some fraction of total river inflow to the Project site. Mean daily discharge in the Nuyakuk River is presented, based on USGS gaging data available at station 15302000 located near the outlet of Nuyakuk Lake. From the figure, it is clear that the period of high flow in the river occurs between early summer and early fall. For the remainder of the year, the river is running at near baseflow conditions. Because the Project will operate in run- of -river mode, sizing the generating units should be done to either 1) optimize power production during a specific time of year (e.g. during the winter months) or 2) produce power more or less evenly throughout the year. Under the current Project conceptualization, units have been sized to provide a stable amount of power from month to month while attempting to minimize overall capital costs associated with the hydroelectric units, tunnel(s), and other Project components. When powerhouse flows do not match the system loads, grid system electricity will have to be supplemented with existing diesel generation. This will most likely be in the winter months when the amount of water available to the powerhouse is less than the power demand would require. The transmission grid will therefore have five diesel generation power plants tied together to complete the electric grid system. The existing power plant in Dillingham has the ability to provide energy for all six villages serviced by the transmission system throughout the year, except for the month of July. This gives NETC the ability to feed the system from different sources as needed for load or maintenance. NETC intends to optimize hydro generation unit design for high efficiencies during winter low flow periods. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 20 of 51 9/28/2020 The Project will have an installed total capacity of 10 to 12 MW and is based on the configuration discussed above. Energy production also assumes the Project configuration described above, with a single 30-ft diameter tunnel servicing the three units over a distance of 600 feet. For those months in which the total available inflow to the powerhouse is less than the total powerhouse flow capacity, a minimum instream flow of 1,000 cfs is assumed to pass downstream, while the remainder is passed through the powerhouse to generate electricity. The predicted average annual energy from the Project is 55,300 MWh representing a plant factor of 63%. Estimates will be Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 21 of 51 9/28/2020 revised once instream flow studies are completed, and any flow accretions below Nuyakuk Lake are determined. 5.1.2 Alternatives to Proposed Energy Resource Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. The current distributed electrical energy d emand in the communities is met through diesel generation; the no action alternative would be continued diesel generation. This is the basis for our financial modeling. There have been other alternatives explored including wind and an alternate hydroelect ric site; NETC (Grant/Elva Hydro 2009, Wind Integration Study 2009) BBNC (Wind Feasibility Study 2005). These were determined disadvantageous to the current diesel generation when evaluated and were not pursued past the feasibility study. The proposed Project has potential short and long term financial, energy resiliency and environmental advantages over the no action alternative. It has financial, maintenance, reliability, production and longevity advantages over the other alternatives studied. At a community level a seasonal lower cost source of dispatchable renewable heat along with year round high speed broadband will enhance community sustainability and positively impact local economies. 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 NETC worked directly and intensively with the Alaska State Legislature to develop SB91 which allows for the requisite natural resource and engineering assessment activities and FERC regulatory processes that need to be conducted for an ultimate project feasibility determination. SB91 was unanimously passed by the Alaska State Legislature in 2019 allowing for the comprehensive evaluation of the site. NETC acquired a Special Use Permit from ADNR, Division of Parks & Outdoor Recreation on April 1, 2020 (Permit #LAS 33198). The permit authorizes temporary use of the project site to conduct scientific research, including geotechnical investigations, land surveying, and bathymetric surveying. The permit includes provisions for the installation of a man camp that will be used to house Project personnel on site. The permit is effective May 1, 2020 through May 1, 2023. NETC will continue to engage with all requisite agencies to obtain additional permits for conducting natural resource studies and engineering evaluations , as needed. NETC is currently in the process of developing natural resource study methodologies, and once study plans are finalized NETC will coordinate with requisite agencies to obtain all required permits prior to initiating studies and on - site engineering assessments. NETC anticipates applying for all additional study-related permits needed from state and federal agencies in 2021, following the issuance of FERC’s Study Plan Determination. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 22 of 51 9/28/2020 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. The Project site is on a bluff on the south bank of the Nuyakuk River adjacent to Nuyakuk Falls, within Wood-Tikchik State Park. The Project site is currently undeveloped with the exception of a portage trail used by boaters to bypass the Falls. As discussed above, SB91 provides NETC with permission to comprehensively study the site for hydroelectric project development. NETC is currently establishing a man camp at the site for use in housing personnel during the assessment through construction phases of the Project as described in Section 5.1.3. The proposed Project boundary consists of 2,860.60 acres which includes a 75 -ft buffer around all Project facilities and on either side of the proposed transmission line. The Alaska Department of Natural Resources (ADNR) manages a total of 1,666.57 acres (58.3 percent) of proposed Project lands. Of this, 265.85 acres (9.3 percent) is land within Wood -Tikchik State Park. Native lands total 707.39 acres (24.7 percent) of proposed Project lands. The remainder of proposed Project lands are owned or managed by the Bureau of Land Management (BLM) (357.08 acres or 12.5 percent) and private or municipal entities own an additional 129.56 acres (4.5 percent). NETC plans to work collaboratively with all landowners to obtain right -of -way as needed to install transmission lines from the Project site to distribution locations. 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 mo st 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. NETC has gone to significant effort to avoid technical risks associated with this project by engaging in early consultation with stakeholders and agencies and by taking a collaborative approach with all stakeholders. Stakeholders have been engaged from the initial feasibility stages of the Project, and as discussed in Section 3.2.4, 92 stakeholder meetings were held between October 2017 and December 2019. NETC voluntarily held a Project Kickoff Meeting in November 2019 in advance of the FERC Scoping Meeting for the specific purpose of engaging both public and agency stakeholders early in the licensing process. Currently, NETC is initiating virtual meetings to maintain open communication and a collaborative working relationship with stakeholders un til a time when in-person meetings and site visits are possible. Geotechnical information about the Project site has not been collected thus far and is required to avoid technical risks during Project design. To date, geologic reconnaissance has been limi ted to review of geologic maps for the Project vicinity and aerial photographs of the proposed intake, powerhouse, tunnel, and tailrace sites. During the Geotechnical Studies (Initial and Secondary), NETC will collect data necessary to confirm the conceptual design layout and support the engineering design development of the Project. The Initial Geotechnical Study is a preliminary site Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 23 of 51 9/28/2020 investigation to assess rock quality at the proposed facilities and confirm project feasibility. The Secondary Geotechnical Study will provide geotechnical data for the final design of the proposed facilities. Obtaining necessary water appropriation for hydroelectric generation and Project design that is protective of fisheries are expected to be the primary challenges assoc iated with this Project. A robust natural resource study program has been developed in order to thoroughly investigate all potential Project effects to natural resources. The results of the natural resource study program and associated engineering assessments will inform final Project engineering and design. NETC has retained FERC regulatory support and engineering services from McMillen Jacobs Associates, a firm with experience designing and licensing new hydroelectric projects within the State of Alaska. McMillen Jacobs Associates staff will assist NETC with the licensing and engineering aspects of the Project in order to minimize risks to Project development, including securing water appropriation from ADNR. R2 Resources will be the lead on all fishery assessments throughout the natural resource study program. R2 has extensive experience conducting fishery studies in support of FERC hydroelectric project licensing, thus protecting the Project against technical risk associated with potential fishery resources impacts. 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 The Project’s comprehensive natural resource study program has been designed to evaluate potential environmental and land use issues, including: Aquatics/Fishery Resources, including Fish Passage, and Fishery-related Project Design Considerations (Entrainment, Impingement, and False Attraction to Tailrace Flows) Water Resources, including Water Quality, Ice Processes, and Future Flows Botanical/Wetlands Resources Wildlife Resources and Wildlife Habitat Cultural Resources, including Subsistence Use, Archaeological Resources, and Historical Resources Recreation and Aesthetic Resources As discussed in Section 4.1.3, Project team members have extensive Alaska expertise that has been retained to study environmental and land use issues . Each of the natural resource study areas listed above consists of one or more studies, each of which is robust and designed to investigate all aspects of Project development effects on the resource studied. The Project team Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 24 of 51 9/28/2020 consists of expertise in each resource area to ensure that study results provide detailed information regarding the nature of any environmental and land use issues that may exist. The results of the natural resource study program will allow FERC to prepare an Environmental Assessment (EA) as part of the Project licensing process. The natural resource study program and the FERC-prepared EA will identify any environmental and land issues that ma y exist as a result of Project development. Environmental Protection, Mitigation, and Enhancement Measures (PM&Es) will be identified during the FERC licensing process to address Project-related effects. 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 Pra ctice Checklist for additional guidance. NETC’s current generation capacity includes eight Caterpillar diesel generation units, totaling 11.335MW of rated capacity, with Woodward EasyGen 3000XT controllers and SCADA monitoring and control. Our power produ ction facility is continually manned 24/7/365. NETC’s system loads vary between 1.4 MW and 3 MW during 9 months of the year, September till May with very little instantaneous load variance. NETC targets generator load at 80% rated capacity, allowing for both efficiency and spinning reserve. In 2019 a total of 19.268 GWh were generated, over the last decade yearly generation has remained between 19 GWh and 20 GWh. Between June and August salmon processing pushes NETC electric load past 6MW at times. The processors also create demand variance of up 1 MW. NETC’s operators and the processors operating staff coordinate these known variances allowing for efficiency and adequate spinning reserve. Generated voltage is 4.16 kV, substation transformers convert to 7.2 kV for distribution. This is the only substation in the distribution system and is comprised of two 10 MVA transformers running parallel with the associated switchgear needed for 1:1 redundancy. NETC acts as both a Generation/Transmission Cooperative and a Distribution Cooperative providing electric service to our members in a harsh western Alaska coastal environment , from fuel delivery to member outlet. NETC computes annual outage time per member for USDA Form 7 reporting. This computation takes in t he number of outages, members affected by the outage, the amount of time service was down and cause of outage to determine the average time per year a member was out of service. NETC’s total outage time per member in 2019 was 23 minutes or 99.999956% reliability. Our five year average is 41.2 minutes per member or 99.999921% reliability. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 25 of 51 9/28/2020 5.4.2.1 Existing Power Generation Units Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset controllers, hours on genset Unit 1: Diesel/Caterpillar 3516/1130kW/565kW/1800RPM/Electronic/Woodward EasyGen 3000XT/138436 Unit 2: Diesel/Caterpillar 3512B/1050kW/525kW/1800RPM/Electronic/ EasyGen 3000XT /90405 Unit 3: Diesel/Caterpillar 3512B/1050kW/525kW/1800RPM/Electronic/ EasyGen 3000XT /75168 Unit 4: Diesel/Caterpillar 3512B/1050kW/525kW/1800RPM/Electronic/ EasyGen 3000XT /81094 Unit 5: Diesel/Caterpillar 3512C/1050kW/525kW/1800RPM/Electronic/ EasyGen 3000XT /62849 Unit 6: Diesel/Caterpillar 3512C/1050kW/525kW/1800RPM/Electronic/ EasyGen 3000XT /64330 Unit 7: Diesel/Caterpillar 3456/455kW/223kW/1800RPM/Electronic/ EasyGen 3000XT /18400 Unit 8: Diesel/Caterpillar 3608A/2250kW/1125kW/900RPM/Electronic/ EasyGen 3000XT /2562 Unit 9: Diesel/Caterpillar 3608A/2250kW/1125kW/900RPM/Electronic/ EasyGen 3000XT /2136 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. NETC’s existing electrical system is a standalone, isolated, grid consisting of a diesel power plant a single substation located adjacent to the power plant and a distribution system. This is consistent throughout the systems in the proposed Project. NETC’s distribution system has a total of 85 miles of plant. Our single substation located at the power plant consists of two 10 MVA transformers; distribution is at 7.2 kV, no transmission. 5.4.2 Existing Energy Generation Infrastructure and Production In the following tables, only fill in areas below applicable to your project. You can remove extra tables. If you have the data below in other formats, you can attach them to the application (see Section 11). Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) Yes, approximately 50,000 gallons of heating fuel oil is displaced for community public schools & community buildings along with an additional 24,000 gallons of heating fuel oil displaced for NETC facility and tank farm heat. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 26 of 51 9/28/2020 5.4.2.3 Existing Thermal Generation Units (if applicable to your project) Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Average annual efficiency Year Installed Hours 5.4.2.5 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 (Type 1) (kWh) Gene ration (Type 2) (kWh) Gener ation (Type 3) (kWh) Fuel Consumptio n (Diesel- Gallons) Fuel Consu mption [Other] Peak Load (kW) Minimum Load (kW) January 2020 1,590,147 109,978 2,830 1,665 February 2020 1,402,770 95,985 2,495 1,685 March 2020 1,335,718 93,384 2,210 1,475 April 2020 1,252,612 85,896 2,154 1,415 May 2020 1,441,690 100,687 2,910 1,410 June 2020 2,366,371 163,501 5,720 1,580 July 2020 1,812,560 125,957 5,525 1,440 August 2019 1,272,752 90,152 2,252 1,375 September 2019 1,247,318 88,438 2,160 1,380 October 2019 1,351,368 90,503 2,340 1,360 November 2019 1,389,478 97,968 2,460 1,525 December 2019 1,580,566 108,787 2,755 1,560 Total 18,043,350 1,251,236 5.4.2.4 O&M and replacement costs for existing units Power Generation Thermal Generation i. Annual O&M cost for labor $1,099,075.43 ii. Annual O&M cost for non-labor $3,408,028.28 iii. Replacement schedule and cost for existing units $25,000,000 over the next 30 years Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 27 of 51 9/28/2020 5.4.2.6 Annual Recovered Heating Fuel Savings (Existing System) Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include electric heat loads. Only include heat loads affected by the project. Month Thermal Loop Fuel Savings (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other NETC internal Thermal Loop Savings (Gallons) January 5,787 1,736 February 6,887 2,066 March 5,536 1,661 April 5,232 1,570 May 4,382 1,315 June 3,327 998 July 528 158 August 5,143 1,543 September 4,391 1,317 October 3,738 1,122 November 4,865 1,460 December 5,947 1,784 Total 55,763 16,729 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 fo recast 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. Presently hot water is recovered from diesel genset cooling systems via heat exchangers to provide heating to NETC buildings and fuel tanks along with and external thermal loop that sells distributed thermal heat to the Dillingham elementary, middle, high school, regional school office, tribal, and State facilities. Approximately 50,000 gallons of heating fuel is displaced annually for non-NETC heating use and approximately 24,000 gallons of heating fuel is displaced annually for NETC facilities and fuel tank farm heating. NETC is currently in the process of replacing and upgrading the existing thermal loop with insulated non-corrosive underground pipe, heat exchangers, VFD circulating pumps and controls to handle the existing thermal load, along with future expansion capacity to service thermal loop expansion to other commun ity (Post Office, Bristol Bay College Campus, and City of Dillingham) facilities. Funding for the current thermal heat loop is from NETC sources, funding for future thermal loop expansion and additional heat exhaust recovery is being pursued through USDA/R US High Energy Cost grant programs. If approved this expansion project when fully implemented will recover and/or displace an additional 250,000 gallons of fuel per year. The vision is that this upgraded thermal loop system can still be fully utilized once the new hydro generation facility comes on -line, either alone utilizing non-firm renewable energy, in parallel with diesel gensets, or alone with diesel gensets during winter low flow hydro generation months. It is anticipated that NETC’s Dillingham the rmal loop system will be able to utilize approximately 5 to 7 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 28 of 51 9/28/2020 GWh/year of non-firm renewable energy for heating once the hydro generation facility becomes operational. NETC’s future financial projections are a forty-year term based on the expected FERC Operational License term and resultant debt service terms. A twenty year review of kWh sales by rate class shows level annual sales with a diminishing residential sales component and an increasing large commercial sales component. At the same time peak annual demand has risen with the large commercial sale, driven by salmon processing seasonal loads. As this Project matures we will build into excess capacity through a non -firm (dispatchable) rate that will encourage space heating and energy storage invest ments (domestic hot water, ice making, EVs) As the rates are lowered through increased utilization more demand will be developed for firm power consumption. This new demand will be primarily driven by conversion of previously dispatchable loads as the firm/non-firm rates converge. As we model the cost of power production a 5% growth rate is anticipated. If a 5% growth rate is achieved we will reach the average annualized power production, less transmission loss (52.4GWh), in eighteen years at which time th e estimate cost of power production and transmission will be .14/kWh. If the annual growth rate is 3% capacity will be reached in thirty years and the cost of power production will be .15/kWh. Forty years of modeled growth and power production costs , using a 5% growth rate. The beginning annual sales reflect expected overall electric KWh sales for all communities in 2028 and do not include current heat recovery sales. Growth includes firm and dispatchable KWh sales, and heat: Year Annual Sales (GWh) Power Production Cost/kWh 2028 22.60 $0.28 2029 23.73 $0.27 2030 24.92 $0.26 2031 26.16 $0.25 2032 27.47 $0.24 2033 28.84 $0.23 2034 30.29 $0.22 2035 31.80 $0.21 2036 33.39 $0.20 2037 35.06 $0.19 2038 36.81 $0.19 2039 38.65 $0.18 2040 40.59 $0.17 2041 42.62 $0.16 2042 44.75 $0.16 2043 46.98 $0.15 2044 49.33 $0.15 2045 51.80 $0.14 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 29 of 51 9/28/2020 2046 54.20 $0.14 2047 54.20 $0.14 2048 54.20 $0.14 2049 54.20 $0.14 2050 54.20 $0.14 2051 54.20 $0.14 2052 54.20 $0.14 2053 54.20 $0.14 2054 54.20 $0.14 2055 54.20 $0.15 2056 54.20 $0.15 2057 54.20 $0.15 2058 54.20 $0.15 2059 54.20 $0.15 2060 54.20 $0.15 2061 54.20 $0.15 2062 54.20 $0.16 2063 54.20 $0.16 2064 54.20 $0.16 2065 54.20 $0.16 2066 54.20 $0.16 2067 54.20 $0.17 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. The Project will consist of a single primary development centered around a river intake/diversion located above Nuyakuk Falls and a single powerhouse facility located downstream below Nuy akuk Falls. Additional Project facilities will include a single -bore tunnel arrangement to convey water from the intake to the powerhouse, a tailrace conveyance channel to return water to t he Nuyakuk River, an airstrip with local access roads, a small building to house a maintenance shop on the lower level and an operators’ residence on the upper level, and an electrical transformer and switchyard area to step power up for high -voltage (34.5 kV) conveyance via overhead transmission to watershed communities. Overhead transmission is currently estimated to cover 140 miles according to the conceptu alized route. The Project will likely also include a lower dock facility Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 30 of 51 9/28/2020 located near the powerhou se/tailrace outlet to allow for docking of small water craft that can navigate the Nuyakuk River back to the Nushagak River. The powerhouse is conceptualized to contain three Kaplan -style reaction turbine generating units to accommodate a combined maximum design flow of approximately 7,550 cfs divided evenly among the units. This combined maximum designed flow is the 75% exceedance flow rate for the months of June, July and August, less 1,000 cfs for instream uses. The rated capacity on each unit would be approximately 3,333 kW. The gross head on the Project is approximately 26 feet, based on site surveying work that occurred in June of 2019. The proposed Project features have been developed based upon existing physical and environmental information and are conceptual in nature. As part of the FERC Operating Application pre-filing consultation process, additional information will be obtained through technical and environmental studies, and continuing research and consultation will be conducted with equipment manufacturers and resource agencies. In May 2020, site-specific topographic and bathymetric LiDAR surveys were conducted, and these data will be used in site analysis and Project design. As additional information becomes available, the design features presented below can be expected to be refined and/or modified to accommodate any changed conditions, including maintenance of instream flow requirements. SUMMARY OF PROJECT FEATURES Number of Generating Units 3 Turbine Type Kaplan (Z-style or Vertical) Runner Diameter (estimated) 17-ft Operating Speed 108.1 rpm Generator Type Synchronous Rated Generator Output Unit 1 3.33 MW Unit 2 3.33 MW Unit 3 3.33 MW Maximum Rated Turbine Discharge Unit 1 2,517 cfs Unit 2 2,517 cfs Unit 3 2,517 cfs Diversion Forebay Water Surface Elevation Minimum (Preliminary) 250.0 (ft NAVD88) Maximum (Preliminary) 265.0 (ft NAVD88) Turbine Centerline Elevation (Preliminary) 231.67 (ft NAVD88) Normal Tailwater Elevation Minimum (Preliminary) 225.0 (ft NAVD88) Maximum (Preliminary) 235.0 (ft NAVD88) Average Annual Energy (assuming 18.4 feet of net head and an average monthly intake diversion flow of 4,688 cfs or 6,287 kW) 55,300 MWh Gross Head 26 feet ± fluctuation Net Head at Maximum Rated Discharge 18.4 feet Watershed Characteristics Drainage Area 1,544 sq. mi. Maximum Basin Elevation 5,250 (ft NAVD88) Minimum Basin Elevation 248 (ft NAVD88) Mean Annual Precipitation 59.0 inches Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 31 of 51 9/28/2020 Area of Ponds or Lakes 12.4 % Nuyakuk River Diversion (All aspects to -be-determined (TBD) once bathymetry and sub -bottom profiling work is completed in 2020 and geotechnical reconnaissance work is completed) Structure Type Concrete Diversion / Low Head Weir (TBD) Structure Length 530 feet Average Monthly Water Height above Weir (Max) 3.75 feet Average Monthly Water Height above Weir (Min) 0.25 feet Crest Elevation x Water Conveyance (Pressurized Tunnel from Intake to Powerhouse) Intake Style Possibly a diversion structure feeding a concrete open channel short canal. Single canal could feed three vertical intake shafts (one per turbine unit) Typical Open Channel Allowable Velocity < 3.0 ft/sec Open Channel typical depths 10 to 15 ft Open Channel width 175 to 250-ft Tunnel Lip Elevation at Open Channel 245.0 (ft NAVD88) Tunnel Construction Type TBD once field geotechnical drilling and data are compiled Length of inclined tunnels to powerhouse ~500 to 600 feet Tunnel Velocity at Maximum Turbine Discharge ~ 10 ft/sec Single Tunnel Configuration (one feeding all three turbines) Tunnel Flow Capacity 7,550 cfs Unlined Tunnel Diameter 32-ft Final Lined Diameter 30-ft Base Elevation (Preliminary) 245.0 (ft NAVD88) Top Elevation (Preliminary) 265.0 (ft NAVD88) Powerhouse Approximate Dimensions (for three -unit powerhouse) 40 feet x 120 feet x 30 feet high Finished Floor Elevation 250.0 (ft NAVD88) Tailrace Type Open Channel Length 200 to 300 feet Typical Water Depth 8-ft +/- Typical Width 120 to 150 ft Transmission Line Type Overhead Length (to Dillingham) Approximately 60 miles Voltage 34.5 kV Access Roads (from Airstrip Runway to Powerhouse) Type Single lane gravel surfacing with turnouts Length 0.5 miles When powerhouse flows do not match the system loads, grid system electricity will have to be supplemented with existing diesel generation. This will most likely be in the winter months when the amount of water available to the powerhouse is less than the power demand would require. The transmission grid will therefore have five diesel generation power plants ti ed together to complete the electric grid system. The existing power plant in Dillingham has the ability to provide energy for all six villages serviced by the transmission system throughout the year, except for the month of July. This gives NETC the ability to feed the system from different sources as needed for load or maintenance. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 32 of 51 9/28/2020 A concrete gravity diversion structure would be constructed above the falls on the Nuyakuk River. The intake diversion would move water from the southern portion of the river above the falls into an open-channel, concrete canal to convey the diverted water inland (towards the powerhouse) a short distance. The canal is conceptualized to have a length equal to or greater than its width (L/W > 1) in order to follow appropriate hydraulic standards for splitting the water into multiple intakes. As such, the canal length would be on the order of 150 to 200 ft long. At the end of the canal would be three vertical shafts, drop-inlets, with each drop inlet feeding an independent tunne l connected to one turbine unit. The diversion and intake geometry will be advanced once field site investigations (bathymetry, sub -bottom profiling, and geotechnical drilling) are completed. In addition, two-dimensional river hydraulic modeling will be required for approximately 1,000 lineal feet above the falls to aid in proper development of the intake diversion hydraulic and structural design. It is anticipated that river hydraulic modeling and geotechnical studies will be conducted as part of the overall Project licensing study program. Each conveyance tunnel would be equipped with an isolation gate at the intake to be able to independently shut down each tunnel and corresponding turbine unit for maintenance or other emergency (e.g. turbine runaway) considerations. A canal gatehouse would be constructed with large vertical telescoping control gates that can be designed to effectively isolate one tunnel and shut off flow to that tunnel for maintenance or other reasons. The diversion structure and i ntake canal would be equipped with redundant level transmitters to continuously monitor water levels in these critical conveyance features. The inlet zone to the open channel canal would be protected by steel inclined bar -screens (with openings between bars on the order of 1 to 3 inches) to divert both ice and debris away from the open channel and downstream over the natural falls. The trash rack would be oriented parallel to river flow to maximize sweeping velocity on the rack face, thereby increasing pa ssive flushing of debris from the rack. The trash rack would be necessary to protect both the downstream telescoping vertical gates as well as the downstream turbine units. Final concept design would need to investigate whether or not an additional isolat ion bulkhead or sluice gates would be needed behind the trash rack for further safety or maintenance purposes. Assuming that a three-turbine powerhouse is the most practical and reliable configuration for power generation, the Project would be developed with either one larger water conveyance tunnel feeding all three turbine units, or three smaller diameter tunnels, with each tunnel dedicated to one turbine unit. Better system reliability and Project redundancy would be provided by an arrangement that dedicates a tunnel to each unit, but the cost of providing three tunnels could be higher than that of a single tunnel unit. Advantages of a three -tunnel project would include the following: • Ability to run two turbine units while maintenance is performed o n the other isolation gate or turbine unit. • Design of the steel tunnel liners to fit inside the excavated rock tunnels may be significantly easier with the smaller 15 -ft final steel liners than the larger and thicker requirements for the single 25-ft steel lined tunnel. If on-site geotechnical drilling and investigations show that native rock quality is poor or inconsistent, then it should be assumed that all tunnels would have to be lined with either a welded in-place steel liner (a continuous steel shell liner likely of at least 1/2 -inch thickness) or perhaps with a rock-bolt and shotcrete system to protect against the inherent structural weaknesses or deficiencies in the native rock. If steel liners are used, they would be brought in longitudinal a rc- Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 33 of 51 9/28/2020 sections and seem-welded both longitudinally and horizontally inside the tunnel. Once the steel liners are placed inside the tunnel, the annular void space between the liner and the native rock would be pressure grouted with structural non -shrink grout mixes designed to be pumped and flow through annular spaces. If on-site geotechnical investigations show that native rock is of high enough quality and consistent enough through the tunnel alignment zone, then it may be possible to omit the need for an i nterior steel liner or rock-bolt and shotcrete liner system. This configuration would provide a large economic benefit to the Project. Detailed on-site geotechnical investigations, including field drilling and logging, will be used to clarify the design needs of the conveyance tunnels. If a single conveyance tunnel system is pursued for the Project design, it will be necessary to provide a trifurcation design near the outlet to the tunnel and prior to the powerhouse. The trifurcation would be designed of steel pipe and would divide the flow to the three Kaplan units with their horizontal spiral cage inlet configurations. Geometric symmetry would be required to ensure an equal division of flow to the three units when all units are in operation. The l ow system net heads (estimated at 26 feet or 11 psig (pounds per square inch, gage)) and lack of much external groundwater or other external loading conditions suggest that the structural design and resulting plate thickness of a steel pipe trifurcation sy stem should not be very thick. However, both handling and site-specific seismic considerations will be taken into account in the final trifurcation design. If three separate conveyance tunnels are pursued for the Project, then the trifurcation structure c an be eliminated from the Project. The powerhouse would be located on the south bank of the Nuyakuk River near the base of the falls. The powerhouse is estimated to be approximately 40 feet wide by 120 feet long by 30 feet high to accommodate three of th e Kaplan vertical shaft turbine units. The powerhouse would have a large underground foundation that houses the entrance cage to the runner along with the impeller section of each turbine unit. The main superstructure above ground would be a pre - engineered metal building anchored to a concrete foundation. The powerhouse concept is to contain three vertical shaft Kaplan -type turbine/generator units with a rated capacity of 3,333 kW for each unit at a design flow of approximately 2,516 cfs per unit, and associated switchgear and controls. The centerline of the turbine and generator units would be approximately 232 feet above mean sea level (msl). The tailwater elevation at the powerhouse would range from approximate elevations 225 feet above msl to 235 fe et above msl depending upon output level. Final values for these elevations will be determined once the site topographic and bathymetric surveys are completed in 2020. The turbines would be designed to operate at high efficiencies over a range of flows f rom the maximum of 2,516 cfs to a minimum of around 755 cfs depending on conditions. The tailrace would be an open rectangular concrete channel approximately 200 feet long and120 to 150 feet wide to convey water back to the Nuyakuk River. The tailrace outlet to the river would be designed to reduce velocities relative to the natural river velocities in the discharge zone. This will help prevent native anadromous fish from being attracted to the Project discharge flow instead of the natural river channe l flow pathways. In addition, the need for vertical picket barriers or other such fish barrier protection measures on the outlet of the Tailrace will need to be evaluated during Project development. The switchyard at the powerhouse will consist of a pad -mounted disconnect switch (i.e., breaker) and a pad-mounted step-up transformer. An overhead 34.5 kV transmission line would run from Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 34 of 51 9/28/2020 the powerhouse switchyard approximately 60 miles to a point of interconnection with the NETC electrical system. A right-of -way would be established along the proposed transmission line. This route would be used to construct the transmission line, then serve as a land -based right of way for the Project site. The route would incorporate setbacks from main waterways and alig nment changes to minimize visual impacts. The transmission line poles would be designed as tangent line structures located approximately every 300 feet on center. Transmission line design will also incorporate the latest raptor protection guidelines. Collision avoidance devices will be installed on the line at appropriate locations to protect migratory birds. The Project would be constructed over a 24 -month timeframe after the issuance of the Project license. Construction would begin in the spring w ith the clearing of a right-of -way along the transmission corridor and the construction of the localized access road at the Project works on the river. A majority of the large equipment necessary to construct Project infrastructure would be barged up the river and stored at the site during construction activities. An airstrip would be constructed adjacent to the Project site to allow air transport of equipment, materials, and manpower to support construction activities. A fully equipped man camp would be erected for the Project construction staff. Portable generation facilities would provide power for the construction work and man camp facilities. Initially, temporary cofferdams would be constructed at the intake and powerhouse tailrace channel exit zon e into the river. This would allow the intake structure, power conduit, and powerhouse construction to advance simultaneously to maximize the work completed during a summer construction season. The intake and power conduit would be completed first, with the powerhouse structure completed immediately following. The generation equipment would be installed, and the balance of plant construction advanced during the winter months. The diversion structure and tailrace channel would be the last components cons tructed followed by removal of the river cofferdams. These work activities would be completed in the last season followed by startup, commissioning, and initiation of commercial power generation. 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 Water 3333 Kaplan Style 65% 40+ 99% 2 Water 3333 Kaplan Style 65% 40+ 99% 3 Water 3333 Kaplan Style 65% 40+ 99% Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 35 of 51 9/28/2020 5.4.4.2 Proposed Thermal Generation Units (if applicable) Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Expected Average annual efficiency Expected life 5.4.5 Basic Operation of Proposed Energy System  To the best extent possible, describe how the proposed energy system will operate: When will the system operate, how will the system integrate with the existing system, how will the control systems be used, etc.  When and how will the backup system(s) be expected to be used See the ―Proposed System Design‖ section of the appropriate Best Practice Checklist for additional guidance. The primary mode of operation for this Project will be level control, whereby outflow is balanced to inflow. The Project is conceived as a run-of -river project, with no large storage component. As such, power production will mimic some fraction of total river inflow to the Project site. Mean daily discharge in the Nuyakuk River is based on USGS gaging data available at station 15302000 located near the outlet of Nuyakuk Lake. From the figure, it is clear that the period of high flow in the river occurs between early summer and early fall. For the remainder of the year, the river is running at near baseflow conditions. Because the Project will operate in run-of-river mode, sizing the generating units should be done to either 1) optimize power production during a specific time of year (e.g. during the winter months) or 2) produce power more or less evenly throughout the year. Under the current Project conceptualization, units have been sized to provide a stable amount of power from month to month while attempting to minimize overall capital costs associated with the hydroelectric units, tunnel(s), and other Project components. Average monthly power generation under this ope rational configuration is shown. During periods when system firm power loads exceed hydro capacity, electric generation and spinning reserve needs will be met with an economic dispatch model that will utilize th e least cost generation option first. This will likely be NETC’s diesel generation plant initially. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 36 of 51 9/28/2020 5.4.3.1 Expected Capacity Factor 63% Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 37 of 51 9/28/2020 5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System) – Year 1 Month Generation (Proposed Hydro System) (MWh) Gener ation (Diesel Genset (MWh) Generatio n (Type 3) (kWh) Fuel Consumptio n (Diesel- Gallons) Fuel Consumptio n [Other] Secondar y load (kWh) Storag e (kWh) January 2,390,000 February 1,970,000 March 1,710,000 April 1,690,000 May 4,800,000 June 15,400,000 July 13,400,000 August 8,800,000 September 7,890,000 October 7,560,000 November 5,000,000 December 3,220,000 Total 73,830,000 5.4.5.3 Annual Heating Fuel Consumption (Proposed System) – Year 1 Month Recovered Genset Heat – Dillingham Thermal Loop Non-firm Electricity – Dillingham Thermal Loop Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other January February March April May June July August September October November December Total Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 38 of 51 9/28/2020 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 dies el 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. $ 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. $3,135,771 (40 year average) 2. Hours diesel OFF/year:6600 3. $2,726,036 (40 year package) 5.4.7 Fuel Costs Estimate annual cost for all app licable fuel(s) needed to run the proposed system (Year 1 of operation) Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood Other Unit cost ($) $2.48 Annual Units 1,558,733 Total Annual cost ($) $3,846,725 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Sect ion 3.15 of the Request for Applications. Metering and automatic data logging of all key operational and performance metrics will be incorporated into final system design to comply with all AEA, FERC, and USDA/RUS reporting requirements. Because Broadband fiber will be incorporated into transmission line cables a real -time fiberoptic based industrial dispatch and control system will be capable of controlling, monitoring and metering Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 39 of 51 9/28/2020 firm and non-firm electric system loads. This incorporated industrial fiber control system will provide a long-term robust, reliable, and cost-effective control, dispatch, monitoring, and metering system. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data , including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications SCADA, metering and automatic data logging of all key operational and performance metrics wil l be incorporated into final system design along with an asset management system to track and document maintenance costs, history, and performance to comply with all AEA, FERC, and USDA/RUS reporting requirements. ` SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime (40 years) Anticipated Diesel Fuel Displaced for Power Generation (gallons) 1,500,000 60,000,000 Anticipated Fuel Displaced for Heat (gallons) 58,033 25,743,923 Total Fuel displaced (gallons) 1,558,000 85,743,923 Anticipated Diesel Fuel Displaced for Power Generation ($) $3,846,725 $262,174,217 Anticipated Fuel Displaced for Heat ($) $253,569 $10,142,783 Anticipated Power Generation O&M Cost Savings $2,812,835 $112,513,399 Anticipated Thermal Generation O&M Cost Savings Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings $6,913,129 $384,830,399 Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 40 of 51 9/28/2020 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 leve l playing field for all applicants. If used, please submit the model with the application. The Nuyakuk River Hydroelectric Project will provide an alternative to diesel power production for six Bristol Bay communities, initially lowering the cost of powe r production and eventually significantly lowering the cost of power production as the investment matures. Two main drivers in the increasing value of this Project when compared with the diesel alternative; load growth up to the power production limits and the effects of inflation on fuel costs. As the cost of power lowers for these communities they will be less reliant on PCE, possibly eliminating the need, benefitting the State and all Alaskans. Completion of this Project will also bring a level of energy security and self -sufficiency to the communities served. There are risks in fuel delivery including low water grounding in the river system and leaks during transfer that will be mitigated by the lessoning dependence on generator fuel and space heating diesel. Financial forecasting was developed by evaluation of NETC RUS form 7 reporting, NETC replacement schedule/cost estimation from recent power plant investment and community PCE reporting. The spreadsheet used to forecast has several user defined in puts including initial Project capitalization costs and reinvestment cycle, existing power plant reinvestment costs and cycle, interest rates for capital debt service, inflation rates and expected growth. Actual power production O&M cost were used as legacy system baseline and Project O&M costs where estimated based on operational expectations. The spreadsheet will be included with this application, the forty year cost estimate and selected inputs: Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 41 of 51 9/28/2020 User Input Year Diesel Hydro cost/KWH cost/KWH Hydro debt service Initial 2028 0.31$ 0.28$ Interest rate 2 2029 0.32$ 0.27$ Term in years 40 2030 0.33$ 0.26$ Capital cost 151,000,000.00$ 2031 0.33$ 0.25$ Grants 20,000,000.00$ 2032 0.34$ 0.24$ Total cost 131,000,000.00$ 2033 0.35$ 0.23$ 2034 0.36$ 0.22$ Diesel debt service Initial 2035 0.36$ 0.21$ Interest rate 1.97 2036 0.37$ 0.20$ Term in years 30 2037 0.38$ 0.19$ Capital cost 13,500,000.00$ 2038 0.39$ 0.19$ Grants -$ 2039 0.40$ 0.18$ Total cost 13,500,000.00$ 2040 0.41$ 0.17$ 2041 0.42$ 0.16$ Hydro debt service 1st Reinvest 2042 0.43$ 0.16$ Interest rate 2 2043 0.44$ 0.15$ Term in years 40 2044 0.45$ 0.15$ Capital cost 12,000,000.00$ 2045 0.46$ 0.14$ Grants -$ 2046 0.47$ 0.14$ Total cost 12,000,000.00$ 2047 0.48$ 0.14$ 2048 0.49$ 0.14$ Diesel debt service 1st Reinvest 2049 0.50$ 0.14$ Interest rate 2 2050 0.51$ 0.14$ Term in years 30 2051 0.52$ 0.14$ Capital cost 20,000,000.00$ 2052 0.53$ 0.14$ Grants 5,000,000.00$ 2053 0.55$ 0.14$ Total cost 15000000 2054 0.56$ 0.14$ 2055 0.57$ 0.15$ Diesel debt service 2nd Reinvest 2056 0.58$ 0.15$ Interest rate 2 2057 0.60$ 0.15$ Term in years 30 2058 0.62$ 0.15$ Capital cost 45,000,000.00$ 2059 0.63$ 0.15$ Grants 10,000,000.00$ 2060 0.65$ 0.15$ Total cost 35000000 2061 0.66$ 0.15$ 2062 0.68$ 0.16$ Rate of inflation 2.50%2063 0.69$ 0.16$ 2064 0.71$ 0.16$ MWH Consumption Diesel 20328 2065 0.73$ 0.16$ Growth Diesel 0.05%2066 0.74$ 0.16$ 2067 0.76$ 0.17$ MWH Consumption Hydro 22600 Growth Hydro 5.00% Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 42 of 51 9/28/2020 6.1.3 Economic Risks Discuss potential issues that could make the project uneconomic to operate and how the project team will address the issues. Factors may include:  Low prices for diesel and/or heating oil  Other projects developed in community  Reductions in expected energy demand : Is there a risk of an in sufficient market for energy produced over the life of the project .  Deferred and/or inadequate facility maintenance  Other factors The largest economic risk to this Project is the cost of construction, estimated at approximately $153 million. The two largest drivers in the cost of construction are the penstock construction cost at the power plant and the transmission plant build. The cost of constructing the penstock will be determined by the quality of the substrate at the site. NETC has released undertaken a RFP process for geotechnical study services in 2021. The results of this study will have significant bearing on the cost of penstock construction and the overall cost of construction. By completing this study early in the process NETC will gain cr itical information for financial feasibility assessment. The transmission line costs, and in particular the cost to access the smaller communities, is being mitigated by evaluating build alternatives such as emerging pole placement technology and carbon f iber core conductors that would allow for fewer pole placements and higher reliability. NETC has also met with Tribal grant funding representatives from the Department of Energy and Bureau of Indian Affairs Indian Energy Programs. The Project was well received and NETC will work with the Tribal organizations in these communities to apply for these funds when appropriate. NETC will continue it’s 55 year history of successful power plant operations by providing 24/7 operators onsite, operator training, ope rational maintenance and appropriate system reinvestment. While other investments in renewable may impact the current load, NETC knows of none currently in development and no local resource that would replace base load capacity as this Project does. 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 bene fits derived from the project as well as the private sector benefits and complete the table below. See Section 1.6 in the Request for Applications for more information. N/A Renewable energy resource availability (kWh per month) Estimated direct sales to private sector businesses (kWh) Revenue for displacing diesel generation for use at p rivate sector businesses ($) Estimated sales for use by the Alaskan public (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 43 of 51 9/28/2020 6.2 Other Public Benefit Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category. Some examples of other public benefits include:  The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes  The project will result in a direct long -term increase in jobs (operating, supplying fuel, etc.)  The project will solve other problems for the community (waste disposal, food sec urity, 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 Broadband Deployment The Project will include a fiber optic communications build that will have the ability to extend the existing fiber network to these communities. NETC has contracted for 100GB/s of Direct Internet Access on completion of the fiber build, equivalent to over 200 times the existing bandwidth to these communities. Achieving Urban standards of Broadband access will improve quality of life by providing access to E-commerce, employment opportunity, governmental functions including access to elected representation, education, ne ws, entertainment and social media. Improved Broadband access will allow modernization of workforce tasks by allowing better access to cloud-based services, secure data storage and training opportunities. Increased Broadband access will allow businesses and job seekers better access to opportunities and markets Economic benefit of lower electric rates Mature hydroelectric generation has several examples of rural communities providing service at, or better than, urban rate equivalency. Examples include C ordova, Kodiak, Sitka, Valdez, Ketchikan There are hydroelectric facilities in Alaska that have been providing power for over 100 years Current PCE urban averaging is .19/kW h. That rate applied to the communities served by this Project has significant yearly savings averaged over the last five years  Savings to the communities combined averages $3,632,155/year (non PCE customers)  Savings to the State in avoided PCE payments $1,289,290/year (2019 AEA PCE reports) Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 44 of 51 9/28/2020 SECTION 7 – SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. At a minimum for construction projects, a business and operations plan should be attached and the applicant should describe how it will be implemented. See Section 11. 7.1.1 Operation and Maintenance Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed project for its expected life  Provide examples of success with similar or related long -term operations  Describe the key personnel that will be available for operating and maintaining the infrastructure.  Describe the training plan for existing and future employees to become proficient at operating and maintaining the proposed system.  Describe the systems that will be used to track necessary supplies  Describe the system will be used to ensure that s cheduled maintenance is performed Nushagak Electric Association was incorporated in March of 1964, and became Nushagak Electric Cooperative with an amendment to the art icles of incorporation in September of 1972. It became Nushagak Electric and Telephone Cooperative with articles of consolidation in May of 2002. NETC has successfully operated power production and distribution over the last 55 years under Certificate of Public Convenience and Necessity providing distributed electric service to the communities of Dillingham and Aleknagik. NETC will maintain this new infrastructure under the same systems of management and control methodology, using contemporary technology, w hich has been proven successful since operations began in 1964. Robert Armstrong, Electric Operations Manager, general project oversight and schedule maintenance. Bob started in electric utilities in 1980, became a Journeyman Lineman in 1986, Lead Lineman in 1995 and Line Superintendent in 2001. He became a District Manager in 2010. Bob brought his accumulated experience, 35 years, to NETC in 2015 as the Electric Operations Manager. Jim Denslinger, Power Plant Supervisor, project quality control and integration. Jim has 17 years of operational experience in this power plant, including all aspects of plant maintenance and repair. Bernie Venua, Power Plant technician, project quality control and integration. Bernie has 22 years of operational experience in this power plant, including all aspects of plant maintenance and repair. In addition to these key individuals, NETC’s power plant staff includes six operator -mechanics with a combined 98 years of service. The plant is staffed around the clock, every day of the year. Operational supplies will be tracked through our existing software platform, provided and supported by National Information Solutions Cooperative (NISC). Daily and Monthly PM checks will be developed through the engineering process in con sultation with vendors for best practices. We will train NETC’s existing power plant operators and mechanics on these new Preventative Maintenance and expected Corrective Maintenance procedures. We will integrate the data collection and review from the PM and CM procedures into the existing processes. Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 45 of 51 9/28/2020 7.1.2 Financial Sustainability  Describe the process used (or propose to use) to account for operational and capital costs.  Describe how rates are determined (or will be determined). What process is required to set rates?  Describe how you ensure that revenue is collected.  If you will not be selling energy, explain how you will ensure that the completed project will be financially sustainable for its useful life. Nushagak Electric and Telephone Cooperative have provided electric service to the communities of Dillingham and Aleknagik, Alaska since 1964. The cooperative has grown to meet the increasing distributed electric needs of the communities served, from total production of 5.5MW h’s and a peak load of 1.5 MW in 1978 to 17.66 GW h’s and a peak of 6.3 MW in 2019. In meeting this growing expectation, NETC has consistently managed operations to provide reliable service while trying to minimize the economic impact to our members. NETC operations include electric, telephone and cable TV, divisions I, II and III respectively. Revenues are generated for each of these services under a cooperative structure, striving to maintain a 1.50 TIER. Two in-house accountants and a bookkeeper manage grant funds and financial reporting for NETC. Grant accounting is audited annually by a third party. Angela Venua, Senior Accountant, and Robert Himschoot, CEO/GM, will have responsibility for fiduciary concerns, project accounting, and financial reporting. NETC retains a third -party audit on an annual basis; currently Aldrich CPA’s and Advisors, LLP, are under contract. Angela Venua, Senior Accountant, project accounting, financial reporting and compliance. Angela has been with NETC for 17 years, where she became Senior Accounta nt in 2015. Angela holds a Bachelor’s in Accounting and is a RUS Borrower Accountant through the USDA Graduate School. NETC will complete a cost-of -service study (―COSS‖) that allocates the electric utility costs of Nushagak Electric & Telephone Cooperative (―NETC‖) to the various rate classes. Costs will be based on the current budget but normalized for a full year interest and depreciation expenses as well as other costs anticipated in the near future. Although NETC’s electric rates are not regulated by the Regulatory Commission of Alaska (―RCA‖), the analysis will use the standards developed within the industry. Revenue collection will be completed through our existing software platform provided by NISC. We have successfully used this platform for revenue collection across all our services since 2015. The platform includes an online payment option. 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) Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 46 of 51 9/28/2020  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) The Project will have a small but immediate reduction on rates across all rate classes, and a larger reduction as the Project matures, consistent with the reduction in power production costs modeled earlier in the application (6.1.2). NETC has contracted supplemental heat sales since 1986. The revenue is generated based on BTU consumption with the revenue model. NETC would continue selling thermal heat at a competitive discount compared to conventional/heating fuel pricing. Additional revenue, not modeled in the financial forecasting, would come from monetizing the Broadband bandwidth derived from this Project. NETC also provides Broadband services and has all the necessary technical, operational and financial mechanisms to market this capacity. NETC’s study area includes the communities of Dillingham, Aleknagik, Manokotak, Clark’s Point, Ekuk and Portage Creek. NETC’s Broadband product is available in Dillingham, Aleknagik and Clark’s Point with a total of 811 su bscriptions. This capacity expansion would allow for expansion of service to Manokotak, Ekuk and Portage Creek including the seasonal commercial and sports fishing industry. 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. Currently there are no Power Purchase agreements modeled for this Project. Power sales to communities can be handled as Large Commercial rate class sales. NETC currently sells power to the Bristol Bay Area Health Corporation (BBAHC) under this arrangement. BBAHC owns and maintains its own distribution system, energy and demand are metered at a system demarca tion point. This mechanism lends to COSS rate making by taking into account capital investment through grant funds allocated to individual communities. 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: Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 47 of 51 9/28/2020  The phase(s) that must be completed prior to beginning the phase(s) pro posed 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. NETC has completed Phase I with the submission of the FERC ILP Scoping Documents. It has initiated Phase II through the FERC ILP Study Plan development process. Although the ILP is currently in Abeyance due mainly to COVID related delays it is NETC’s plan to continue study plan development through a series of virtual meetings in the fall/winter of 2020 and reinitiate the ILP March allowing for a summer 2021 study season. In preparation for Phase II field study work NETC and McMillen Jacobs have identified and engaged partners and contractors for the 2021 field work including R2 Resource Consultants, Cultural Resources Consultants (CRC), Quantum Spatial, ADF&G and NOAA NMFS. We have also engaged an RFP process for 2021 geotech work, having reviewed responses and will award later this fall for a July 2021 contract. NETC worked directly and intensively with the Alaska State Legislature to d evelop SB91 which allows for the requisite natural resource and engineering assessment activities and FERC regulatory processes that need to be conducted for an ultimate project feasibility determination. SB91 was unanimously passed by the Alaska State Le gislature in 2019 allowing for the comprehensive evaluation of the site. NETC acquired a Special Use Permit from ADNR, Division of Parks & Outdoor Recreation on April 1, 2020 (Permit #LAS 33198). The permit authorizes temporary use of the Project site to conduct scientific research, including geotechnical investigations, land surveying, and bathymetric surveying. The permit includes provisions for the installation of a man camp that will be used to house Project personnel on site. The permit is effective May 1, 2020 through May 1, 2023. NETC will continue to engage with all requisite agencies to obtain additional permits for conducting natural resource studies and engineering evaluations, as needed. NETC is currently in the process of developing natural resource study methodologies, and once study plans are finalized NETC will coordinate with requisite agencies to obtain all required permits prior to initiating studies and on - site engineering assessments. NETC anticipates applying for all additional study -related permits needed from state and federal agencies in 2021, following the issuance of FERC’s Study Plan Determination. 8.2 Demand- or Supply-Side Efficiency Upgrades If you have invested in energy efficiency projects that will have a positive impac t 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, Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 48 of 51 9/28/2020 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. As the Project becomes better defined efforts will be made to encourage Village/Tribal organizations to pursue Energy Conservation Measures (ECM’s) at all locations that might incorporate any new dispatchable thermal heating devices that utilize excess renewable hydroelectricity. 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 . After two years of desktop Project feasibility studies and over ninety Project outreach meetings, in October of 2019, NETC filed our Pre Application Document initiating the FERC Inte grated Licensing Process (ILP) timeline. Recently NETC received letters and resolutions stating concern for the effects of COVID-19 and the Bristol Bay fishing season on the ability to effectively participate in the licensing process study plan development, specifically the aquatics and fish passage studies that all consider paramount. Initially, these entities requested a delay of 12 months to the ILP schedule. NETC received these correspondences during the last week of May from five regional entities, Bristol Bay Economic Development Corporation, Bristol Bay Native Association, Bristol Bay Area Health Corporation, Bristol Bay Housing Authority and United Tribes of Bristol Bay. On June 8th NETC received a copy of a consistent resolution passed by the Wood Tikchik Management Council at their meeting on May 27th. While NETC does not agree with all the conclusions in these correspondences, we do respect the entities and want to address their concerns. NETC consulted with FERC on June 2nd regarding these topics which lead to a request for an Abeyance (a suspension of the schedule) to the ILP timeline. The request was submitted June 7th and approved by FERC on June 9th. During this Abeyance the ILP timeline is suspended and will be reinitiated when NETC resub mits a Proposed Study Plan. During this Abeyance it is NETC’s intent to create an Aquatics Resources Working Group, inviting subject matter technical experts to participate in evaluating and creating Aquatics and Fish Passage studies. It is also NETC’s in tent to hold additional in-person public meetings as soon as it is safe to do so. It is our hope that this voluntary effort will alleviate the concerns expressed. NETC also received several Resolutions of support during our Public outreach process. The letters of concern requesting NETC to apply for an Abeyance, NETC’s response letter and the letters of support will be included with the application. SECTION 10 – COMPLIANCE WITH OTHER AWARDS Identify other grants that may have been previously aw arded 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 . In November of 2009 NETC received grant # 2195419 from the AEA REF. The award amount was $4,031,500 of which $1,898,233.19 was expended for the study of Grant and Elva lake hydro potential. When project feasibility was evaluated after the 2013 study season and the project was Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 49 of 51 9/28/2020 terminated the remaining $2,133,266.82 was returned to the Fund. The Grant was closed out in August of 2014. 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. Documents that mark the individual completion of Tasks and Phases that lead to the FERC Operating Permit Application will also be posted to the Project website, https://www.nuyakukhydro.com/ and to the FERC document portal using the identifier for this Project P-14873, https://elibrary.ferc.gov/eLibrary/search Supporting documentation for Phase I, desktop feasibility:  Pre Application Document for FERC Project P-14873 (Nuyakuk Hydro)  Scoping Document 1 and 2 for FERC P -14873  Proposed Study Plan for FERC P-14873 SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration.  Grant Application Authorization Resolution  Certificate of Compliance  Application Signature Pages  Articles of Incorporation (1964)  Articles of Consolidation (2001)  Certificate of Public Convenience and Necessity (2002)  Growth Tracking  Financial Forecasting  Fuel Cost 2008_2020  Nuyakuk Power Projections  Abeyance Correspondence o Letter of Concern BBEDC o Letter of Concern BBAHC o Letter of Concern UTBB o Resolution BBNA o Resolution WTSP Council o ADF&G Abeyance Letter of Support o NETC FERC P-14873 Abeyance Request o FERC Abeyance Approval  Support o Aleknagik Support Resolution o BBNA Support Resolution o NEA Support Resolution o Curyung Support Resolution o Dillingham Support Resolution SECTION 13 – AUTHORIZED SIGNERS FORM Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 50 of 51 9/28/2020 Community/Grantee Name: Nushagak Electric & Telephone Cooperative Regular Election is held: Annually, last election April 2020 Date: 9/28/2020 Authorized Grant Signer(s): Printed Name Title Term Signature Robert Himschoot CEO/GM Signature page included with Section 12 documents I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/community/municipal official) Printed Name Title Term Signature Pete Andrew President, Board of Directors 2020-2022 Signature page included with Section 12 documents Grantee Contact Information: Ma iling Address: Box 350 Dillingham, AK. 995765 Phone Number: 907-842-5251 Fax Number: 907-842-2799 Email Address: rhimschoot@nushagak.coop Federal Tax ID #: 92-0177246 Please submit an updated form whenever there is a change to the above information. SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION Renewable Energy Fund Round 13 Grant Application – Standard Form AEA 21010 Page 51 of 51 9/28/2020 SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant’s Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers pe r application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 9 . C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that:  Commits the organization to provide the matching resources for project at the match amounts indicated in the application.  Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant.  Provides as point of contact to represent the applicant for purposes of this application.  Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Robert Himschoot Signature Signature page included with Section 12 documents Title CEO/GM Date 9/28/2020