HomeMy WebLinkAboutTDX Power AEA Grant Application Adak Hydro
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round VIII of the Renewable Energy Fund. A separate application form is available for projects with
a primary purpose of producing heat (see 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 Request
for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/REFund8.html.
• If you need technical assistance filling out this application, please contact Shawn Calfa, the
Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.
• If you are applying for grants for more than one project, provide separate application forms for
each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide milestones
and grant budget for each phase of the project.
• 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 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.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed.
• In the sections below, please enter responses in the spaces provided, often under the section
heading. You may add additional rows or space to the form to provide sufficient space for the
information, or attach additional sheets if needed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority 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.
• In accordance with 333 (b) Applicants may request trade secrets or proprietary company data
be kept confidential subject to review and approval by the Authority. If you want information is
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.
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
TDX Power, Inc
Type of Entity: Fiscal Year End:
Corporation September 30
Tax ID # 92-0167220
Tax Status: x For-profit ☐ Non-profit ☐ Government (check one)
Date of last financial statement audit: September 30, 2013
Mailing Address: Physical Address:
615 E 82nd Avenue, Suite 200, 615 E 82nd Avenue, Suite 200,
Anchorage AK 99518 Anchorage AK 99518
Telephone: Fax: Email:
907 762 8450 907 562 0387
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Title:
Kord Christianson President, TDX Power
Mailing Address:
615 E 82nd Avenue, Suite 200,
Anchorage AK 99518
Telephone: Fax: Email:
907 762 8450 907 562 0387 kord@tdxpower.com
1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
☐ A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
X 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 by checking the box)
X 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 by checking the box)
X 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 http://www.akenergyauthority.org/REFund8.html.
(Any exceptions should be clearly noted and submitted with the application.) (Indicate by
checking the box)
X 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)
SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Adak Hydroelectric Feasibility Study – Phase II
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA
at 907-771-3031.
Adak is the southern-most community in Alaska, on the latitude of Vancouver Island in Canada. The
former Navy Air Facility Adak is located off the Alaskan mainland near the center of the Aleutian
chain, approximately 1,200 miles west-southwest of Anchorage, Alaska. Flight time to Anchorage is
three hours. Adak Island’s coordinates are latitude 51°53‟0" N, at longitude 176° 38‟46" W. The
Bering Sea surrounds the island to the north and the Pacific Ocean to the south. Adak is located in
the Aleutian Islands Recording District. The area encompasses 122.4 sq. miles
of land and 4.9 sq. miles of water.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Adak, Alaska
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding heat-only)
X Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☐ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance ☐ Final Design and Permitting
X Feasibility and Conceptual Design ☐ Construction
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
The project builds on existing reconnaissance level engineering work recently completed for a
hydroelectric power plant in Adak, and makes use of Adak’s existing infrastructure such as dams,
access roads, and possibly an existing penstock. The reconnaissance studies show that a
series of alpine lakes in the immediate vicinity of the city have the potential to displace the diesel
power plant as the primary energy source for Adak. Resource availability, engineering
considerations, land ownership and permitting issues were all considered. The diesel power plant
would still be required for backup, and would be available to parallel with the hydroelectric facility
during high load conditions. TDX‟s engineering feasibility studies will focus on two areas;
• Quantifying the hydroelectric potential. Work will include a detailed mapping and hydrology
studies, a permitting evaluation including onsite studies and agency consultations, assessment of
alternatives, a detailed cost analysis for the selected project and development timeline; and,
• Interconnection requirements for integration with the utility, including analysis and selection of
optimum generator and hydro-turbine size, type, and configuration; identification of requirements for
paralleling switchgear and controls, and all other major power system components
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, local jobs created, etc.)
TDX and its subsidiary TAG are at a crossroads, considering various options for renewal or
replacement of the existing power plant. Concurrent development of a hydroelectric plant could
impact the size of diesel gensets, selection of switchgear and other controls equipment, and urgency
of the project. Now is the time to advance design of a hybrid power system in Adak in order to
maximize operating efficiency in the years to come.
A hydroelectric-diesel hybrid power system would stabilize the cost of power for all of TAG‟s
ratepayers. Further, by replacing the grossly oversized diesel power plant, the hydroelectric facility
would provide a safer, more reliable power source for the community. The project has the potential to
help revitalize the community of Adak by eliminating one of the major hurdles to commercial
investment in the region – high, volatile energy prices.
Adak’s electricity rates are among the highest in the state, currently $1.394/kWh, including the
COPA. The commercial demand rate is $130.38/kw of demand.
A back pressure hydroelectric power project could reduce the 217,500 gallons of diesel used in 2013
by TAG by up to 30%. These drastic fuel savings would result in substantial savings to TAG
ratepayers and to the State of Alaska through reduced PCE payments. In 2013, the State contributed
$330,916.00 to TAG‟s ratepayers through the PCE program.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and
source of other contributions to the project.
$ 85,000.00 is required to complete a next step in the feasibility study pre CDR of a hydroelectric-
diesel hybrid power system. This alternative utilizes the city water source to develop a powerhouse at
pressure reducing valve #1 (PRV-1) and is requesting the funding from the Alaska Energy Authority
(the Authority) with a TDX Power match. Other contributions to the investment in Adak‟s
hydroelectric potential includes the following:
• Aleut Corporation conducted hydrology surveys
• City of Adak has invested in dam safety and maintenance
• Navy invested heavily installing dams, roads and power distribution infrastructure
TDX Power and the Alaska Energy Authority have invested in a reconnaissance study
2.7 COST AND BENEFIT SUMMARY
Include a summary of grant request and your project’s total costs and benefits below.
Costs for the Current Phase Covered by this Grant
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $ 85,000.00
2.7.2 Cash match to be provided
2.7.3 In-kind match to be provided $
2.7.4 Other grant funds to be provided $
2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 85,000.00
Other items for consideration
2.7.6 Other grant applications not yet approved $
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost
Summary from Cost Worksheet, Section 4.4.4, including
estimates through construction.
$ 1.2-1.4m
2.7.8 Additional Performance Monitoring Equipment not
covered by the project but required for the Grant
Only applicable to construction phase projects
$
2.7.9 Estimated Direct Financial Benefit (Savings)
The economic model used by AEA is available at
www.akenergyauthority.org/REFund8.html. This
economic model may be used by applicants but is not
required. Other economic models developed by the
applicant may be used, however the final benefit/cost
ratio used will be derived from the AEA model to ensure
a level playing field for all applicants.
$ 715,000/year ( Fuel
Savings)
2.7.10 Other Public Benefit
If you can calculate the benefit in terms of dollars please
provide that number here and explain how you
calculated that number in Section 5 below.
$ N/A
SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a resume
and references for the manager(s). In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application. 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.
John Lyons will be the Project Manager. Mr. Lyons resume is attached to this application
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project
along with estimated start and end dates for each of the milestones and tasks. Please clearly identify
the beginning and ending of all phases of your proposed project.
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks
Start
Date
End
Date
Project scoping, solicit consultants, gather
resources
July
2015
August
2015
Confirm the previously identified land
and regulatory issues, collect
hydrology and electrical load data.
Sept
2015
Nov
2015
Pre-feasibility study, including the items
listed above as well as detailed energy
resource analysis, detailed analysis of
existing and future energy costs and
markets, and an assessment of the
alternatives. Dec 2015
Delivera
ble
Permitting site visit and findings. Review
concept based on environmental findings.
Perform design analysis and detailed cost
estimate for the proposed alternative.
Develop detailed economic and financial
analysis, conceptual business and
operations plan. Jan 2016
March
2016
Final Feasibility Study, including all
items mentioned above as well as
recommendations
April
2106
Delivera
ble
3.3 Project Resources
Describe the personnel, contractors, personnel or firms, equipment, and services you will use to
accomplish the project. Include any partnerships or commitments with other entities you have or
anticipate will be needed to complete your project. Describe any existing contracts and the selection
process you may use for major equipment purchases or contracts. Include brief resumes and
references for known, key personnel, contractors, and suppliers as an attachment to your application.
TDX Power will use internal personnel to manage the project and perform electrical and mechanical
engineering tasks. The TDX team will conduct the following:
• analyze and define appropriate interconnection requirements; and,
• evaluate and specify size, type of generation, switching, communications and system controls
equipment required for an integrated hydro-diesel hybrid power system.
TDX is committed to working with the local stakeholders, including the Aleut Corporation, and the
City of Adak.
Resumes of key personnel are attached.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status. Please
provide an alternative contact person and their contact information.
TDX Power‟s Project Manager will provide direct oversight of all aspects of the project and will
provide monthly or quarterly status reports by email (or other method allowed by the Authority, if
email is not available) to the Authority’s Project Manager.
The report will update the Authority on the Project’s progress, regulatory and compliance issues,
possible delays, and grant expenditures during the quarter. The Progress Reports will summarize, in
one or two pages, the progress made on grant tasks during the previous period and identify any
difficulties in completing tasks or meeting goals or deadlines. TDX will also include with the report
copies of any work products due to the Authority during this period.
3.5 Project Risk
Discuss potential problems and how you would address them.
The project is low-risk, in terms of budget, timeline, and product.
Typically, maritime weather and the remote location are primary project risks in Adak and
surrounding areas. However, since the project is only planned through the feasibility phase, minimal
equipment or logistical challenges are expected.
Local stakeholders, the Aleut Corporation and the City of Adak support renewable energy
development and will endeavor to create an atmosphere of success. If any unidentified conflicts
arise the TDX Project Manager will immediately address all concerns and communicate possible
resolutions with all stakeholders and the Authority.
3.6 Project Accountant(s)
Tell us who will be performing the accounting of this Project for the Grantee and include contact
information, a resume and references for the project accountant(s). In the electronic submittal, please
submit resumes as separate PDFs if the applicant would like those excluded from the web posting of
this application. If the applicant does not have a project accountant indicate how you intend to solicit
project management support.
Laura Bain, Controller - See attached resume
Kristin, Canaday, Accountant – See attached resume
3.7 Financial Accounting System
Discuss the accounting system that will be used to account for project costs and whom will be the
primary user of the accounting system.
The Accounting System: Viewpoint software which specializes in project cost accounting.
Primary Users: Laura Bain & Kristin Canaday
3.8 Financial Management Controls
Discuss 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
Renewable Energy Fund Grant Program.
TDX Power Finance performs GAAP accounting. All staff is very experienced in financial controls.
TDX Power has had a number of other successful grants. Because of experience with government
contracts TDX Power accounting staff has knowledge of FARS. This includes having an
understanding of what are allowable and unallowable costs. Staff will become very familiar with and
committed to the grant terms in order to adhere to the proper controls.
ECTION 4 – PROJECT DESCRIPTION AND TASKS
The level of information will vary according to phase(s) of the project you propose to undertake with
grant funds.
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 satisfied
and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss 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. 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.
Based on the results of the Adak Diesel Hybrid Reconnaissance Report hydroelectric power has the
best potential to compete with diesel generation in Adak. A series of elevated lakes near Adak were
dammed by the Navy, and Lake Bonnie Rose (surface elevation 739 feet) has an existing penstock
to town that serves as the city’s drinking water source. The topography, hydrology, and existing
infrastructure all add up to a good hydroelectric potential.
Hydroelectric technologies are commercially mature and could likely be used effectively in Adak.
Based on the existing infrastructure and the presence of lakes for storage, hydroelectric power using
the back pressure hydro replacing the PRV-1 valve has the potential to displace 30% of Adak’s diesel
fuel use.
To transport the power back to the city, a new three phase transmission line will be required from the
powerhouse to the south side of town adjacent to the small boat harbor. This transmission line is
designed to be approximately 1 .6 miles long.
Currently, there is a steel pipeline that follows this exact routing of the city's water supply pipeline.
This water supply pipeline is estimated to have been installed during World War II, with minimal
upgrades since and is reaching the end of its useful life.
One of the key benefits of this Alternative feasibility will be to determine life expectancy of the
existing line and a replacement cost of a new pipeline with a new penstock serving both the city water
supply and power production.
The new hydro electric plant will be located adjacent to the existing PRV-1 station. The hydro plant
would be connected to the existing 10 inch raw City water line that supplies water to the community
and citizens of Adak. The new hydro facility would consist of one back pressure hydro similar to the
Canyon Industries 75 kw capacity generating unit. The project takes advantage of Lake Bonnie Rose
water shed with an elevation of 739ft with storage and water shed of nearly 2 square miles to provide
water to the reservoir and lake. In order to integrate the new hydro electric plant, the diesel plant and
the TDX utility electrical network, a new transmission line will need to be installed from the PRV-1
new hydro plant, along the road, to the south side of town near the small boat harbor. If it is assumed
the powerhouse will have an operation time of 80%, the system will be capable of generating
approximately 700 MWh annually.
If Adak is expecting to attract economic growth, the hydro electric plant will save nearly 30% of the
cost to generate power on a per kWh basis as compared to
Beyond potential new businesses, current base businesses such as the fish processing plant, which is
currently dosed, are likely to come on line and use power under these costs. The fish processing plant
in the past, under a prior owner, used over a MW of power during peak periods seasonally, but
generated off line.
Renewable energy is more cost efficient than the existing diesel generating system. The price of
hydrocarbons is likely to increase in the future, which would impact the cost of operating a diesel-
based power system.
4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
The diesel generator based power plant is located on the south side of the airport opposite the
major loads. The power system was built in phases, beginning in the 1950s, to accommodate a
growing military operation. The oldest switchgear section, the “2400 Volt Bus,” contains three
(3) Caterpillar 3516 engines (Generators 3, 4, and 5), each rated at 800kW, 2400 volts. These are the
primary generators. Each genset has in excess of 30,000 hours runtime and all are due for complete
overhaul. Based on FY2010 the diesel generator sets average 9.28 kWh/gallon efficiency.
The manually controlled generator switchgear includes Woodward governors and loadshare
modules. Fuel injection is mechanical. The governors and load-share modules, circa 1982, could
potentially by reused in a new switchgear lineup, but more likely all new equipment would be
installed.
A new diesel generator set Caterpillar engine 3456 rated at 450kwe was installed in 2013. This is the
utilities primary generator set and is being operated out the old previously Navy owned power plant
ID #3. The utility is currently exploring options to move out of the old military occupied power plant
because of the ineffeicies, the high levels of environmental contaminations – oil, asbestos, lead paint,
leaking roofs etc.
The intent is to right size the new plant and equipment to meet the current conditions while providing
room for future expansion.
Distribution wiring is mainly copper. Routing is largely buried, but significant sections of the city
utilize overhead distribution. The effects of Adak’s harsh weather can be seen in the condition of
transformers, power poles, and junction boxes, many of which do, or will soon, require replacement.
As can be expected with such an old system, changes over time have not been properly documented
on the as-built drawings. Also, large sections of the distribution system have been disconnected and
abandoned in place due to a lack of use.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any
impact the project may have on existing energy infrastructure and resources.
Adak is well situated to make use of local renewable energy sources. Located on the border between
the Bering Sea and the North Pacific Ocean, Adak is home to strong, consistent winds. Located on a
volcanic island, near-surface geothermal resources may be located nearby. Located on a
mountainous hillside near several natural lakes, the potential clearly exists to develop hydroelectric
power. Based on previous study hydroelectric potential is the most promising local energy resource.
The community of Adak supports the development of renewable energy as a way of stabilizing and
possibly reducing the cost of energy in their community.
TDX has been working with the City of Adak and the Aleut Corporation to develop plans that address
local views and concerns. The integration of renewable power systems with the existing
infrastructure will need to be addressed in order to properly and efficiently size and control all
generating assets. The utility‟s renewal and replacement strategy should consider integration with
generating facilities outside the diesel power plant. An emphasis on uncomplicated systems will help
improve operating efficiency over the long term. Maintenance personnel in Adak do not have the
breadth of technical or material resources that urban developers are accustomed to. The plant and
integration design should consider local expertise and maintenance operations as critical
components of a long-term project. As a long-time operator of rural Alaskan utilities and other power
generation facilities TDX Power understands the difficulties of operating under these conditions.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing electrical infrastructure was build to support the US Navy operations in Adak, which had
a peak population of nearly 6,000 people. With closure of the NAF-Adak, ownership of the electric
utility was transferred to the local government and was later purchased by TDX Power.
There are 120 utility customers in Adak, of which 105 are residential. The electricity market in Adak
is regulated by the State of Alaska through the Regulatory Commission of Alaska. TDX Adak
Generating, LLC, a wholly owned subsidiary of TDX Power, owns and operates the utility under
certificate number CPCN 684. TDX Adak Generating reports that the current electrical load averages
roughly 200 –250kW, with recent annual sales of approximately
1.5 – 2.5 million kWh.
The price of electricity is currently averaging $1.50/kWh for residential customers.
TDX Adak Generating ratepayers do qualify for the State’s power cost equalization program (PCE),
which subsidizes residential customers and some community facilities. The utility is in distress after
years of inadequate maintenance. The existing electrical infrastructure is in various stages of
disrepair. There is a major and urgent need for renewal and/or replacement both at the powerhouse
and at the distribution level. TDX Adak Generating is evaluating options for renewal or replacement
of the existing power plant to better serve customers. This upcoming utility work would significantly
affect any renewable energy project in Adak. Continued coordination with the utility will be a key
factor for successful development of any renewable energy project.
4.3 Proposed System
Describe the system you are intending to develop and address potential system design, land
ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
• A description of renewable energy technology specific to project location
Initial analysis found about 13 individual hydroelectric project configurations near Adak. A
simple approach to comparing these individual options was adopted to identify the options with
the best potential for development. Current loads appear to have dropped enough from historic
levels such that a single back pressure hydroelectric development project could meet up to 30% of
the demand. Any project would be paralleled with a new diesel plant.
The results show that two developments rank the highest:
• Utilizing the existing water system pipeline and installing a power recovery turbine in
place of the PRV
• Constructing a storage project utilizing Lake Bonnie Rose for the intake and locating a
powerhouse on Mitt Lake
The first option, appears at this stage of analysis to be the most feasible option for meeting a
percentage of energy generation needs economically. This option is using an existing storage
project with an intake on Lake Bonnie Rose, and existing City owned water line and a
powerhouse located at PRV-1.. The estimated useable storage for the lake is the surface area
times a depth of 5 feet. Alsoincluded is a requirement to supply 0.5 cfs of water for potable
supply. This project is also the least expensive to construct of the two identified options.
The results indicate that Lake Bonnie Rose has daily and some seasonal storage value. The
approximate analysis of the performance using the hourly demand data and storage is an
approximation that does not include varying efficiency, headloss, minimum diesel loading and
run time, or ice and snow effects on storage. For this level of study, the results are generally
adequate to test the viability of the concept and determine if feasibility efforts should be
considered. The results of the hourly energy analysis show that, for most of the year, the
hydroelectric project could displace approx 30% diesel generation.
• Optimum installed capacity
Projects were identified and sized based on resource availability. The initial analysis presented
above does not include storage or useable energy (demand constrained) considerations. The
feasibility study will identify the most cost effective project capacity which will be dictated by
system load, hydrology, and system storage capability.
• Anticipated barriers
Primary issues impacting development potential for the project options include cost, energy, and
environmental concerns. A comparative formula was developed for assessing and ranking the
project cost and energy produced. The environmental factors assigned based on estimated
impacts to aquatic issues and, to a lesser extent, physical footprint of the project. No “show-
stopper” issues were identified in the ealier reconnaissance phase of this project.
• Anticipated capacity factor; Anticipated annual generation; Basic integration
concept
The table below illustrates the anticipated capacity factor; anticipated annual generation; and
basic integration concept
Parameter
Available Energy from Hydro 730,000kWh
Hydro Capacity Factor 80%
Annual Energy Demand 3,200,000kWh
Fraction of Demand Met by
Hydro
730,000kWh
Fraction of Demand Met by
Diesel 2,470,000kWh
Estimated Diesel Efficiency 14kWh/gal
Current Diesel Fuel Use 217,506gal
Diesel Fuel Use with Hydro 167,312gal
Annual Fuel Savings with
Hydro
50,194gal
• Delivery methods
Power generation is anticipated to be delivered through the existing distribution system from a
tie-in point on the medium voltage system nearest the powerhouse. The extensive distribution
system has adequate tie-in points in various locations. Specific recommendations will be
developed as part of this study.
4.3.2 Land Ownership
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.
All of the land and infrastructure required for the project are privately owned by either the Aleut
Corporation or the City of Adak. Both entities support renewable energy development in Adak, and
have expressed willingness to work with TDX to develop a hydroelectric power system.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
• List of applicable permits
• Anticipated permitting timeline
• Identify and discuss potential barriers
Due to significant environmental and legal requirements associated with project development on
refuge lands, USFWS Alaska Maritime National Wildlife Refuge lands on the south side of Adak
Island are not being considered for development.
In accordance with the permitting memo prepared under the Reconnaissance Report, the following
permits will be required for construction of a hydroelectric project. A detailed evaluation of the
following permits will be performed under this project, including consultation with relevant agencies,
and on-site investigation of fish habitat, wetlands, and known cultural sites.
• Wetlands Permit / Water Quality Certification (USACE / AK DEC)
• SHPO Permit (AK DNR)
• Endangered Species Act Clearance (USFWS, NMFS)
• Essential Fish Habitat Consultation (NOAA Fisheries)
• Coastal Zone Management Program (currently unenforceable)
• Fish Habitat – Title 16 permit (ADF&G)
• Water Rights (AK DNR)
• Contamination review (US Navy, EPA, AK DEC)
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be
addressed:
• 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 discuss other potential barriers
• Threatened or Endangered species and Habitat Issues
The following ESA-listed species may be found in the project area: Aleutian shield fern, an
endangered species managed by the USFWS; the northern sea otter and Steller‟s eider,
threatened species managed by the USFWS; and the Steller sea lion, fin whale, humpback whale,
sperm whale, blue whale and north Pacific right whale, endangered species managed by the
National Marine Fisheries Service (NMFS). Critical habitat for Aleutian shield fern has not been
established, but it is possible that the ferns are located within project option areas. Critical habitat
for Steller sea lion surrounds Adak Island, but no haul out or rookery sites are in the vicinity of
the project options. Critical habitat for northern sea lions in the area is from mean high tide
seaward. Critical habitat for the whale species is also off shore. (Sea otters, Steller sea lions, and
whale species are also regulated under the MMPA, which has separate consultation requirements
that could occur concurrently with this process.)
The marine waters surrounding Adak provide Essential Fish Habitat (EFH) for the following
species: walleye pollock, squid, skate, sculpin, rock sole, and northern rockfish. No Habitat
Areas of Particular Concern are found at the project location. Anadromous streams are also
considered EFH for salmon species. Based on Alaska Department of Fish and Game‟s (ADF&G)
Catalog ofWaters Important for the Spawning, Rearing or Migration of Anadromous Fishes,
there are about 12 anadromous streams around the community of Adak. The extent of project
work is projected to be outside anadromous habitat, which will minimize impacts and permitting
requirements. However, further evaluation and definition of anadromous habitat is required and
is included in this project.
• Wetlands and other protected areas
It is likely that a wetland permit would be required for all proposed renewable energy projects;
however, it is recommended that prior to submitting an application, a preliminary wetlands
jurisdictional determination is completed to determine the extent of wetlands in the project area.
A USACE wetland permit would be required if the project requires dredging or the placement of
fill in wetlands. Also, a wetlands permit would be required if any project components were
placed below ordinary high water of any navigable stream. If the project is constructed in
undisturbed areas, it is likely that a wetlands survey and the submittal of a preliminary
jurisdictional determination and a wetland permit application would be required. Potential
impacts to wetlands could be reduced by constructing the project within previously disturbed
areas and by incorporating existing infrastructure.
• Archeological and historical resources
Since there is the potential that there are cultural or historic resources in alternative energy
project option areas, to make the permitting process more efficient, consultation with the SHPO
should
occur during the permitting process. The project could wait for the federal permitting agencies to
complete this consultation as a part of their process; however, completing the NHPA consultation
with the SHPO is expected to help move the permitting process forward. If the project is
constructed in undisturbed areas, it is likely that a cultural resources survey would be required
and the SHPO would require the submittal of a finding of effects letter. If the project would result
in impacts to buildings more than 50 years old, it is likely that SHPO would require the submittal
of a finding of effects letter. Potential impacts to cultural resources could be reduced by
constructing the project within previously disturbed areas and by incorporating existing
infrastructure, such as road right-of-ways.
• Land development constraints
The land is owned by the City of Adak and/or the Aleut Corporation and no constraints exist at
this time.
• Telecommunications interference
There are no telecommunications interferences anticipated on this project.
• Aviation considerations
There would likely be no FAA permitting requirements associated with a hydroelectric project.
• Visual, aesthetics and other potential barriers
A re-evaluation of environmental issues such as fish habitat, wetlands, archeological, and visual
and/or aesthetic impacts will be conducted in detail as part of the feasibility study.
Section 4.3.3 of this application outlines the permits we expect to pursue.
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4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds – loans, capital contributions, in-kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
Total anticipated project costs are $1.2 million - $1. 6 million, including approximately $200,000 in
development cost (reconnaissance, feasibility, design and permitting), and for the preferred 75kW
facility. Capital cost assumptions are based on industry standards adjusted for the remote location
($3,500 – 5,000 per kW capacity).
Cost for the Feasibility Study is $85,000. TDX Power is requesting funding for the expanded scope
of feasibility study with matching funds or other funding streams are available at this time.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the
applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the communities
they serve.)
This proposal is for engineering studies only. There are no operating and maintenance costs
associated with the project.
4.4.3 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
• Proposed rate of return from grant-funded project
The customers are the ratepayers of Adak. TDX Adak Generating (TAG), a wholly-owned
subsidiary of TDX Power, owns and operates the utility in Adak. It is anticipated that TAG will own
the hydroelectric power plant. The City of Adak currently owns the dams and will retain ownership
of that portion of the project.
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If a small hydroelectric project is developed, the sales price would need to be below the avoided
cost of power, which fluctuates with the price of diesel fuel. If a larger hydroelectric project
designed to operate without the diesel power plant is developed, the rate cap may be significantly
higher since it would eliminate the need to operate the diesel power plant for much of the year.
There is no “rate of return” associated with this engineering study. If TDX Power develops a
project, we would expect that a rate of return consistent with the RCA‟s regulations and
procedures would be allowed. There is no rate of return on the grant-funded portion of any project.
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4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please fill out the form provided below.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 440kW or greater (multiple projects are feasible)
Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 4 diesels generators
ii. Rated capacity of generators/boilers/other 3 x 800kW, 1 x 1100kW
iii. Generator/boilers/other type Diesel
iv. Age of generators/boilers/other 18 + years
v. Efficiency of generators/boilers/other 9.28 kWh/gallon of fuel
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $311,334
ii. Annual O&M cost for non-labor $1,444,430 (including $830,699 in fuel expenses)
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 750,000
ii. Fuel usage
Diesel [gal] 237,762
Other N/A
iii. Peak Load 580kW
iv. Average Load 252kW
v. Minimum Load 200kW
vi. Efficiency 9.28kW/gallon
vii. Future trends Upwards due to recent fish plant connection
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] N/A
ii. Electricity [kWh] N/A
iii. Propane [gal or MMBtu] N/A
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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iv. Coal [tons or MMBtu] N/A
v. Wood [cords, green tons, dry tons] N/A
vi. Other N/A
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
75 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 2,330,00 kWh
ii. Heat [MMBtu] N/A
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood or pellets [cords, green tons,
dry tons]
N/A
iv. Other N/A
Project Cost
a) Total capital cost of new system $1.2 - $1.6 Million
b) Development cost Approx. $200,00, including recon + feasibility+
design + permitting
c) Annual O&M cost of new system Less than $5k annual-no new dedicated employees
d) Annual fuel cost 0
Project Benefits
a) Amount of fuel displaced for
i. Electricity 80,820 gallons
ii. Heat 0
iii. Transportation 0
b) Current price of displaced fuel $4.35/gallon
c) Other economic benefits N/A
d) Alaska public benefits 30% reduction in PCE payout: $110,305.00
Power Purchase/Sales Price
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a) Price for power purchase/sale
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.0 to 3.5 (NPV of fuel savings / total capital cost)
Payback (years) 3.35 years (4a + 4b)/[(current price – 6a)*3b(i)]
4.4.5 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area. If the is for a PCE eligible utility please discuss what the expected impact would be for both
pre and post PCE.
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SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and
how the people of Alaska will benefit from the project.
The benefits information should include the following:
• Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project
• Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA
tariff, or cost based rate)
• Potential additional annual incentives (i.e. tax credits)
• Potential additional annual revenue streams (i.e. green tag sales or other renewable energy
subsidies or programs that might be available)
• Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Using the current cost of diesel fuel in Adak of $4.35 per gallon, the annual savings in fuel would
be about $715,000. Over a 30 year period with a discount rate of 3% this equates to a present
value of about 14.3 million dollars. For comparison, it is estimated that the capital costs for similar
rural hydroelectric projects should be in the range of about $7,500 per kW to $15,000 per kW.
Thus, at 75 kW, the preferred option is expected to cost from 1.2 million to 1.6 million dollars.
Currently, there are no additional annual incentives or additional annual revenue streams.
Non-economic public benefits to Alaskans over the lifetime of the project will include the reduced
exposure to NOX from the diesel generators, reduced noise pollution to the community and
surrounding eco-system, reduced potential for diesel spills that impact land and water.
Additionally, there is a perceived mental health benefit for people when they have reduced stress
worrying about diesel shipments and costs. The positive aspect of renewable energy is a sense of
ownership and pride in „green‟ technology for this small village as well as an improved climate for
business investment in the community.
5.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
Renewable energy resource availability (kWh per month)
Estimated sales (kWh)
Revenue for displacing diesel generation for use at
private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the
Alaskan public ($)
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SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
• Proposed business structure(s) and concepts that may be considered.
• How you propose to finance the maintenance and operations for the life of the project
• Identification of operational issues that could arise.
• A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
• Commitment to reporting the savings and benefits
The goal of this project is to make investments that could lead to stably priced, reliable energy over
the long term. TDX has proven itself as a rural utility operator and hybrid system design house,
focused on maintaining top quality service at a reasonable price. This engineering study fits within
our existing business to develop the power generation system in Adak that provides low- cost,
consistent, reliable and safe service.
Operations and maintenance (O&M) for the life of the project will be supported financially by
operating revenues. Operation issues due to lack of technological expertise in Adak will be
addressed by operations training as well as Anchorage-based support. Costs incurred for day to
day operations will include the salary for the operators and general administrative functions.
Normal replacement of parts and equipment will be scheduled and budgeted into the annual
budget to continue optimum operations. Savings and benefits will be reported to the stakeholders
and the Authority through annual reports.
Fred – plug in our 70%renewable goal
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
TDX Power purchased the Adak utility in 2008 and has focused on improving safety and reliability
of the existing system. Much work is left to be done, including replacement of nearly all major
equipment in the power plant. If further studies show that a hydroelectric power plant can
economically compete with diesel, TDX Power is prepared to immediately pursue this option,
possibly allowing the utility to downsize the projected replacement diesel plant.
Under a REF grant from the Authority, TDX Power recently performed a reconnaissance report for
a hybrid power system on Adak, considering wind, geothermal, and hydroelectric options.
The results of that study indicate that there is a substantial hydroelectric potential. Much of the
required infrastructure required for a hydroelectric project is already in place, including access
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roads and dams. Detailed hydrology reports have been prepared for all the major lakes near Adak.
This information can be leveraged to support the feasibility study.
SECTION 8 – LOCAL SUPPORT AND OPPOSITION
Discuss local support and opposition, known or anticipated, for the project. Include letters of
support or other documentation of local support from the community that would benefit from this
project. The Documentation of support must be dated within one year of the RFA date of July 2,
2014
Local support from the community, stakeholders, the Aleut Corporation and the City of Adak will
help to assure continuing success with this project. TDX has conducted outreach efforts with each
of these entities and they have each indicated a willingness to support TDX‟s plans for
hydroelectric development in Adak. A letter of support from the Aleut Corporation is attached to
this application.
At this time there is no opposition to the project.
Although it was not possible to gain formal approval and support for the project from the City of
Adak, through our ongoing discussions we are confident that the City will support the project and
make land and other assets available for development.
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SECTION 9 – GRANT BUDGET
Tell us how much you are seeking in grant funds. Include any investments to date and funding
sources, how much is being requested in grant funds, and additional investments you will make as
an applicant.
9.1 Funding sources and Financial Commitment
Provide a narrative summary regarding funding source and your financial commitment to the
project
$85,000 is required to complete a feasibility study of a hydroelectric-diesel hybrid power system
and is requesting the total amount of funding from the Alaska Energy Authority (the Authority).
Other contributions to the investment in Adak‟s power system includes the following:
• Aleut Corporation conducted hydrology surveys
• City of Adak has invested in dam safety and maintenance
• Navy invested heavily installing dams, roads and power distribution infrastructure
• TDX Power and the Authority have invested in a reconnaissance study
9.2 Cost Estimate for Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment, and its
related use to comply with the operations reporting requirement identified in Section 3.15 of the
Request for Applications.
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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 and Commissioning). Please use the tables provided
below to detail your proposed project’s budget. Be sure to use one table for each phase of your
project.
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 at 907-771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
615 E 82nd Ave.
Anchorage 99518
Phone Number:
Fax Number:
E-mail Address:
kord@tdxpower.com
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
CITY OF ADAK, ALASKA
100 Mechanical Street, Suite B122 • Adak, Alaska 99546
Post Office Box 2011 • Adak, Alaska 99546 • Tel: 907.592.4500 • Fax: 907.592.4262
www.adak-ak.us
City of Adak, Alaska
September 22, 2014
Kord Christianson
President
TDX Power, Inc.
615 East 82nd Avenue, Suite 200
Anchorage, Alaska 99518
RE: Letter of Support for Adak Generating AEA Application
Dear Mr. Christianson:
The City of Adak, Alaska supports TDX Power’s application for financial assistance from the Alaska Energy
Authority (AEA) Renewable Energy Fund Program (Round VIII) for an Energy Baseline Study project.
Significant investments have been made by various entities in the recent past, including the City and TDX Power
for study of renewable resources. One of the most significant struggles towards implementing renewable
energy, regardless of the source, leads to a discussion of current and potential energy demand and capacity. As
you are aware, Adak has significant resources and potential, along with challenges that make utility planning
and renewable resource implementation difficult.
Any project that can lower the cost of energy, for quality of life as a primary concern, but for potential general
economic benefit must be analyzed. Lacking a true understanding of the community’s energy usage, especially
from those businesses that self-generate, all of the data compiled to justify making significant investments
becomes less valuable. This project has the potential to bring together all of the data necessary to give accurate
information for future energy projects that will benefit the entire community.
As a side benefit, proposing to gather data that can be used for the Home Weatherization program could be very
useful as there are no Certified Energy Auditors on the island which makes participating in the program
significantly more cost prohibitive. We have had several residents who would like to participate in the program,
however the amount of capital required to participate, along with the required energy audit, creates obstacles
that have prohibited participation in the programs.
We look forward to working with you on this project and ask the Alaska Energy Authority Review Committee
recommend the application for full funding.
If you or the review committee has any questions for the City, please do not hesitate to reach out to my office.
Sincerely,
Layton J. Lockett
City Manager