Loading...
HomeMy WebLinkAboutBethelHeatRecoveryRound9ApplicationPackageFINALRenewable Energy Fund Round IX Grant Application Bethel Power Plant Heat Recovery Module Construction Project Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 1 of 35 7/8/15 SECTION 1 – APPLICANT INFORMATION Please specify the legal grantee that will own, operate and maintain the project upon completion. Name (Name of utility, IPP, local government or other government entity) Alaska Village Electric Cooperative, Inc. Type of Entity: Fiscal Year End: Not for Profit December 31 Tax ID # 92-0035763 Tax Status: ☐ For-profit ☒ Non-profit ☐ Government (check one) Date of last financial statement audit: March 19, 2015 Mailing Address: Physical Address: 4831 Eagle Street 4831 Eagle Street Anchorage, AK 99503 Anchorage, AK 99503 Telephone: Fax: Email: 800.478.1818 800.478.4086 sgilbert@avec.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Steve Gilbert Manager, Projects Development and Key Accounts Mailing Address: 4831 Eagle Street Anchorage, AK 99503 Telephone: Fax: Email: 907.565.5357 907.561.2388 sgilbert@avec.org 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Title: Meera Kohler President and CEO Mailing Address: 4831 Eagle Street Anchorage, AK 99503 Telephone: Fax: Email: 907.565.5351 907.561.4086 mkohler@avec.org 1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: N/A Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 2 of 35 7/8/15 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) ☒ 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. ☒ 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) ☒ 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) ☒ 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/Programs/Renewable-Energy-Fund/Rounds#round9. (Any exceptions should be clearly noted and submitted with the application.) (Indicate 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 IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 3 of 35 7/8/15 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. Bethel Power Plant Heat Recovery Module Construction 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 (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. Bethel is located on the Kuskokwim River about 40 miles inland from the Bering Sea. It is approximately 400 air miles west of Anchorage. It is the regional hub for the Yukon Kuskokwim Delta region and is located within the Yukon Delta National Wildlife Refuge and the Calista region. It sits at 60.7922 N latitude and -161.7558 W longitude. The exact location of this project is the area in and near the Bethel power plant. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. This project will provide benefits to the community of Bethel (population: 6,241 according the DCCED 2014). 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind to Heat ☐ Biomass or Biofuels ☐ Hydro to Heat ☐ Solar Thermal ☒ Heat Recovery from Existing Sources ☐ Heat Pumps ☐ Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance ☐ Final Design and Permitting ☐ Feasibility and Conceptual Design ☒ Construction and Commissioning 2.4 PROJECT DESCRIPTION Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 4 of 35 7/8/15 Provide a brief one paragraph description of the proposed heat project. Alaska Village Electric Cooperative, Inc. (AVEC) is requesting $2,555,489 through a REF grant to construct a new heat recovery module at the Bethel Power Plant. The new module will isolate the generator cooling loop from the existing recovered heat distribution loop to enable expansion of the recovered heat system. The new approximately 800-square foot module and associated piping located immediately adjacent to the Bethel Power Plant will enable expansion of the existing system including future connection of exhaust heat recovery at the power plant, creating a significant increase in recovered heat available for the community. The heat recovery module will also allow expansion of the existing loop and an additional future second loop that could supply heat to the Aquatic Center and the new alcohol treatment facility currently under constructi on. 2.5 Scope of Work Provide a 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. The Bethel Power Plant Heat Recovery System currently circulates hot water through a network of distribution pipes to customer buildings near the power plant. The heat system is not well controlled and is unable to capture any additional heat that could be available through engine exhaust. While there are a number of nearby buildings (including the Bethel Aquatic Center) that could benefit from recovered heat, the system is unable to accommodate any additional customer connections (off-takers) without additional system components and controls. AVEC is proposing to construct a new heat recovery module adjacent to the Bethel Power Plant. The module would isolate the generator cooling loop from the recovered heat distribution loop. The heat recovery module would allow more efficient control and dissipation of the heat radiated by the large system components, including equipment and piping within the powerhouse. The heat recovery module would enable additional heat to be incorporated into the heat recovery system and would allow additional customer buildings to be served in future phases. A tertiary benefit is the separation of the heat recovery loop serving the existing customers from the power plant cooling system. Specifically, this project would include construction of a new building to house heat exchangers, pumps, controls, and heat recovery loop piping to and from the power plant. The new 800-square foot heat recovery module would be steel frame modular construction with insulated wall panels and accommodate existing heat recovery loop expansion as well as a new heat recovery loop in the future. Automated mechanical ventilation and large doors will also allow passive ventilation, similar to the low cost ventilation strategy at the existing power plant. The building would house a system with multiple heat exchangers and pumps and will utilize 80% of the peak available heat flow. It will be sized to recover an additional 40% of the heat currently being captured (capturing BTUs currently being dissipated through the power plant cooling system). In addition, the new system would allow the heat recovery system to continue operating at a reduced capacity should any components fail. BTU metering will be installed in the module to Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 5 of 35 7/8/15 facilitate system optimization, as well as to identify specifically how much system expansion is viable in the future. SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points 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. Add additional rows as needed. Milestones Tasks Start Date End Date Deliverables Design and feasibility requirements AVEC will work with the current engineering contractor (Coffman Engineers) to confirm the design is complete; finalize selection of the construction contractor. Jul 2016 Oct 2016 Final design and specification Bid documents Bid documents will be managed by AVEC with the assistance of the engineering contractor. Oct 2016 Nov 2016 Bid documents and request for bid Vendor selection and award The construction contractor will be selected, and a construction task order will be prepared. Nov 2016 Dec 2016 Contract Construction Contractor will execute contract with AVEC to transport, build, and install the module and associated components. Jan 2017 Sept 2017 Progress report Mobilization Construction materials, including the heat recovery module, and equipment will be transported to Bethel by barge as soon as practical. May 2017 May 2017 Progress report Site Work The heat recovery module pad and other site work will be completed. May 2017 Jun 2017 Progress report Substructure/ foundation The foundation for the heat recovery module will be competed. Jun 2017 Jun 2017 Progress Report Module The pre-constructed module will be erected on the building foundation. Jul 2017 Jul 2017 Progress Report Mechanical Mechanical equipment will be installed within the module and between the module and the power plant. Aug 2017 Aug 2017 Progress Report Electrical Electrical equipment will be installed within the module and between the module and the power plant. Aug 2017 Aug 2017 Progress Report Demobilization The construction contractor will remove equipment via barge prior to freeze up. Sept 2017 Sept 2017 Progress report Integration and testing Once the heat exchangers and pumps are operational and connected, integration and testing of the new system and loop will occur. Sept 2017 Sept 2017 Progress report Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 6 of 35 7/8/15 3.2 Budget Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel, and other project items meet industry standards or are otherwise justified. 3.2.1 Budget Overview Describe your financial commitment to the project. List the amount of funds needed for project completion and the anticipated nature and sources of funds. Consider all project phases, including future phases not covered in this funding request. The total project cost for constructing the recovered heat module is $2,839,432 million, of which $2,555,489 is requested in grant funds from AEA. The remaining $283,943 (10%) will be matched in cash by AVEC. Engineering and construction assistance for the heat recovery module system will be completed by Coffman engineers. AVEC has self-funded design through 65% for this project. The remaining design from 65% to 95% and then to construction documents is estimated to cost approximately $181,000. Coffman engineers will also perform construction administration (CA) services for the project as well. The CA services for Coffman are estimated to cost approximately $20,000. (Coffman’s Fee Proposal is attached.) Future design phases for heat recovery loop expansions, additional loop installation, and stack heat recovery design will be approximately $4.5 million. Under a REF Round VIII grant, AVEC is completing an assessment of the entire recovered heat system and developing conceptual design. As designs are developed cost estimates will become more accurate. However at this point AVEC estimates approximately $9 million will be needed to enable more facilities to take advantage of the heat resource available at the Bethel Power Plant. AVEC understands the REF cannot be used to fund repairs, and we do not propose to use REF funding for maintenance or repairs. AVEC will add new pipe connections and expand the current loop from the existing mainline pipe to serve new facilities and likely add an additional loop from the heat recovery module to other buildings in the vicinity of the power plant. Recognizing the trend AEA has established and references in the REF Round IX guidance for encouraging other-than-REF funds for construction phase projects, AVEC constantly researches and applies for federal grants for its projects. AVEC’s history demonstrates a commitment to completion of projects funded through the REF. AVEC funds its match obligations and project costs above estimates through loans and would do so for the construction of the Bethel Power Plant Heat Recovery Module. Decommissioning of old system n/a Final acceptance, commissioning, and start up Final acceptance, commissioning, and startup will be done immediately following integration and testing. Nov 2017 Dec 2017 Progress report Operations reporting AVEC will begin reporting to AEA after system start up. Jan 2018 AVEC operation reports and grant close out report Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 7 of 35 7/8/15 3.2.2 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. The milestones and tasks should match those listed in 3.1 above. Milestone or Task RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Design and feasibility $185,092 $20,566 Cash $205,658 Bid documents $11,096 $1,233 Cash $12,329 Vendor selection and award $11,096 $1,233 Cash $12,329 Construction Mobilization $10,046 $1,116 Cash $11,163 Site work $320,927 $35,659 Cash $356,586 Substructure/foundation $363,015 $40,335 Cash $403,350 Module $366,516 $40,724 Cash $407,240 Mechanical $1,038,954 $115,439 Cash $1,154,393 Electrical $205,411 $22,823 Cash $228,234 Demobilization $10,046 $1,116 Cash $11,163 Integration and testing $22,192 $2,466 Cash $24,658 Decommissioning of old system N/A Final acceptance, commissioning, and start up $11,096 $1,233 Cash $12,329 Operations reporting N/A TOTALS $2,555,489 $283,943 $2,839,432 Direct Labor & Benefits $135,000 $15,000 Cash $150,000 Travel & Per Diem $20,347 $2,261 Cash $22,608 Equipment $0 Materials & Supplies $0 Contractual Services $180,900 $20,100 Cash $201,000 Construction Services $2,219,242 $246,582 Cash $2,465,824 Other $135,000 $15,000 Cash $150,000 TOTALS $2,555,489 $283,943 $2,839,432 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. The cost estimate for the Bethel Heat Exchanger Module Project is based on 65% design prepared by Coffman Engineers, AVEC’s consulting engineer, and HMS, Inc., professional estimators. The detailed cost estimate is attached under Tab E. 3.2.4 Funding Sources Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 8 of 35 7/8/15 Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds requested in this application $2,555,489 Cash match to be provided $283,943 In-kind match to be provided $0 Total costs for project phase(s) covered in application (sum of above) $2,839,432 For heat projects using building efficiency completed within the last 5 years as in-kind match, the applicant must provide documentation of the nature and cost of efficiency work completed. Applicants should provide as much documentation as possible including: 1. Energy efficiency pre and post audit reports, 2. Invoices for work completed, 3. Photos of the building and work performed, and/or 4. Any other available verification such as scopes of work, technical drawings, and payroll for work completed internally. 3.2.5 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Reconnaissance (AVEC-Funded) $45,000 Feasibility and Conceptual Design Heat Recovery Module 35% design (Completed; REF 8+ AVEC match) $48,200 Future Phases (REF 8 + AVEC match) $631,392 Final Design and Permitting Heat Recovery Module 65% Design and Cost Estimate (Completed; AVEC-funded) $51,800 Future Phases $848,200 Construction Heat Recovery Module Construction (this phase) $2,839,437 Future Phases Construction $4,535,971 Total Project Costs (sum of above) $9,000,000 3.2.6 Operating and Maintenance Costs (non-fuel) Estimate annual non-fuel O&M costs associated with the proposed system $750,000 3.2.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system Fuel type Annual cost ($) This project requires no new fuel consumption $ 0 $ $ Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 9 of 35 7/8/15 3.3 Project Communications Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is described in adequate detail. Describe how you plan to monitor the project and keep the Authority informed of the status. The project will be managed out of AVEC’s Projects Development and Key Accounts Department. For financial reporting, the Projects Development and Key Accounts Department’s accountant, supported by the Administrative Services Department, will prepare financial reports. The accountant will be responsible for ensuring that vendor invoices and internal labor charges are documented in accordance with AEA guidelines. AVEC has computerized systems in place for accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. During the project, AVEC will receive invoices from and converse with major contractor(s) to monitor the project’s invoicing and progress. Satisfactory reporting and backup from major contractor(s) will be provided to AVEC, which will be used to draft progress reports. These prog ress reports will be forwarded to the AEA project manager each quarter. Quarterly face-to-face meetings will occur between AVEC and AEA to discuss the status of all projects funded through the AEA Renewable Energy Grants program. Individual project meetin gs will be held, as required or requested by AEA. Steve Gilbert, Manager of Energy Projects and Key Accounts is AVEC’s primary point of contact. Meera Kohler, AVEC’s President and CEO, may be contacted as an alternative manager. 3.4 Operational Logistics Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and maintaining the project throughout its lifetime and selling energy from the completed project are reasonable and described in adequate detail. Describe the anticipated logistical, business, and financial arrangements for operating and maintaining the project throughout its lifetime and selling energy from the completed project. AVEC has the capacity and experience to administer this grant and manage this p roject, if funded. As a local utility that has been in operation since 1968, AVEC is able to finance, operate, and maintain this project for its design life. AVEC operates other energy projects throughout the state and is very familiar with planning, constructing, operating, and maintaining alternative systems. Business Plan Structures and Concepts which may be considered: AVEC currently makes heat sales with the entities that are served by the recovered heat system and is negotiating with prospective new customers. Heat sales to new connections will be negotiated with customers prior to them connecting to the system and as additional heat is available. How O&M will be financed for th e life of the project: As with all AVEC power plants, the costs of operations and maintenance will be funded through ongoing heat and energy sales. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 10 of 35 7/8/15 Operational issues which could arise: No operational issues are expected since this new module will be design to accommodate 40% growth of the heat recovery system. Operating costs: Once all proposed recovered heat system improvements and new connections are constructed during future phases, AVEC would spend approximately $750,000/year over the 20 year life of the project to operate and maintain the recovered heat system. Commitment to reporting the savings and benefits: AVEC is committed to sharing all pertinent information accrued from this project with their members and t o sharing information regarding savings and benefits with AEA. SECTION 4 – QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and experience to successfully complete and operate the project. If the applicant has not yet chosen a contractor to complete the work, qualifications and experience points will be based on the applicant’s capacity to successfully select contractors and manage complex contracts. Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully complete and operate the project. Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. Criteria: Stage 2-2.D: The project team has positive past grant experience. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information, and a resume. 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. AVEC, as the electric utility serving Bethel, will provide overall project management and oversight. Steve Gilbert, Manager, Projects Development and Key Accounts Department Steve Gilbert has served as manager of the Projects Development and Key Accounts Department for AVEC since 2012 where he leads a team focused on lowering the cost of energy in rural Alaskan villages through improved power plant efficiency, wind and other renewable power generation, and interties between villages. Previously, Mr. Gilbert worked at Chugach Electric for 17 years managing three power plants and served as lead electrical engineer for a 1 MW fuel cell and micro-turbine projects and wind energy project development. He has managed energy projects ranging from several hundred thousand dollars to hundreds of millions. Mr. Gilbert is recognized as an industry leader on wind energy and has been active on a national level in operation and maintenance of wind power plants. Mr. Gilbert was Alaska’s Electrical Engineer of the Year in 2000 and for the 12 western states in 2001. He has been a regular lecturer at schools and universities o n renewables, especially wind. He also worked Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 11 of 35 7/8/15 with BP Wind in London assessing European wind prospects. To better evaluate investment opportunities for his employer, Mr. Gilbert also holds an MBA. Meera Kohler, President and CEO of AVEC Ms. Kohler has more than 30 years of experience in the Alaska electric utility industry. She was appointed Manager of Administration and Finance at Cordova Electric Cooperative in 1983, General Manager of Naknek Electric Association in 1990, and General Manager of Municipal Light & Power in Anchorage in 1997. Since May 2000, Ms. Kohler has been the President and CEO of AVEC and in this position has ultimate grant and project responsibilities. 4.1.2 Expertise and Resources Describe the project team including the applicant, partners, and contractors. Provide sufficient detail for reviewers to evaluate: • the extent to which the team has sufficient knowledge and experience to successfully complete and operate the project; • whether the project team has staffing, time, and other resources to successfully complete and operate the project; • how well the project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. 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. Include brief resumes for known key personnel and contractors 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 AVEC has been providing electrical services to rural, isolated, and economically disadvantaged Alaskan communities since 1968. The cooperative began with three communities and a very small staff, and has steadily grown to the impressive non -profit organization it is today with 56 member villages. AVEC now has over 90 employees with managers, engineers, expediters, and others in its Anchorage central office and Bethel hub office, plus plant operators within the communities. Since 2000, AVEC has reliably and responsibly spent over $212 million of grant funds and its own money to construct over 80 major projects. This includes 29 bulk fuel tank farm upgrades or replacements, 12 new diesel-fired power plants, 4 standby backup power plants, 4 recovered heat systems, 11 wind farms (34 total wind turbines), 5 village -to-village interties, 1 PV solar array, and 17 other generation and distribution upgrades. Funding for these projects has come from the Denali Commission ($181 million), the Alaska Energy Authority ($24 million), USDA Rural Utilities Service direct awards ($9 million), other grants ($3 million) and AVEC matching contributions ($20 million). AVEC will use a project management strategy that it has used to successfully design and construct its heat recovery and renewable energy projects throughout rural Alaska. That strategy includes a Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 12 of 35 7/8/15 team of AVEC staff and external consultants. AVEC staff members and their roles on this project include: • Meera Kohler, President and Chief Executive Officer, will act as Project Executive and will maintain ultimate programmatic and financial authority. • Steve Gilbert, Projects Development Manager, will act as Program Manager and will lead the project management team consisting of AVEC staff, consultants, and contractors. • Debbie Bullock, Manager of Administrative Services, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. • Bill Stamm, Manager of Engineering, leads AVEC’s Engineering Department, which is responsible for in-house design of power plants, distribution lines, controls, and other AVEC facilities. Mr. Stamm’s unit will provide engineering design and supervision. • Mark Bryan, Manager of Operations, is a Certified Journeyman Electrician and supervises AVEC’s line operations, generation operation, and all field construction programs. . He has worked at AVEC since 1980, was appointed Manager of Construction in May 1998, and was promoted to Manager of Operations in June 2003. Mr. Bryan’s unit will oversee operation of this project as part of the AVEC utility system, once constructed. • Anna Sattler, Community Liaison, will communicate directly with Bethel residents and key entities to ensure the community is informed. Selection Process for Contractors: The construction contractor selection will be made from a pre- qualified list of contractors with a successful track record with AVEC. Pre-qualified contractors have been selected based upon technical competencies, past performance, written proposal, quality, cost, and general consensus from an internal AVEC technical steering committee. The selection of the contractor/consultant will occur in strict conformity with AVEC’s procurement policies, conformance with OMB circulars and DCAA principles. Resumes are included in Tab A. 4.1.3 Project Accountant(s) Indicate who will be performing the accounting of this project for the grantee and include a resume. 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 financial accounting support. Debbie Bullock, Manager of Administrative Services, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. Debbie’s bio is included under Tab A. 4.1.4 Financial Accounting System 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 Renewable Energy Fund Grant Program. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 13 of 35 7/8/15 AVEC’s accounting system consists of software, procedures and controls driven by the daily inputs and other actions of competent employees throughout the organization. The software is comprised of a comprehensive suite of Daffron-brand modules including accounting (payables/payroll/general ledger), work orders, purchase orders, customer service and billing, and warehouse/inventory. Some ancillary functions are accomplished on spreadsheets with data downloaded from the various Daffron modules. Procedures and controls include but are not limited to adequate separation of duties, manager - level approval of all expenditures, CEO-level approval of all major expenditures, a formal purchasing system (including purchase orders) for acquisition of materials and components, and a formal contracting system (including task orders) for acquisition of contractual services (consultants, construction, etc.). Virtually all AVEC employees are users of the accounting system, at least to a minimal extent. Primary users include the Accounting Department; all managers due to their involvement in controlling and ensuring the propriety of costs; and the Projects Development and Key Accounts Department, particularly its Project Manager, its Office Administrator and its Senior Accountant; these three employees are primarily responsible for all grant reporting. AVEC’s team, with years of experience and knowledge of managing AEA-funded project costs and grant reimbursements, has a system in place for ensuring that only costs that are re asonable, ordinary, and necessary are charged to a Project, and that only costs that are eligible are submitted for reimbursement. First, AVEC’s project manager is responsible for determining whether costs are appropriate and acceptable. The project manager reviews all invoices from contractors and vendors and all in-house labor and equipment charges. Second, the Projects Development and Key Accounts Department Manager reviews costs associated with outsourced services, including consultant and contractor invoices, to ensure that the charges are reasonable. The department manager also reviews his department’s staff labor charges (timesheets) to the project. Third, the Operations and Engineering Department Managers review all in -house labor (timesheets) and expense reports for their respective departments to make sure that the charges are acceptable. Finally, the Projects Development and Key Accounts Department Senior Accountant, while preparing AEA financial reports and reimbursement requests, provides a revie w of both outsourced and in-house charges to determine whether they are allowable costs. The Senior Accountant is very experienced with REF grant reporting and grant agreements and understands what costs would be accepted by AEA. AVEC has systems in place to keep unacceptable overhead costs from being charged to and reimbursed through the REF Grant Fund Program. Upon project initiation, an AVEC work order number is created to track all project labor and expenses. AVEC staff and contractors reference this number on all timesheets and invoices when working on the project, ensuring that project costs are known. Purchase orders are universally used to establish spending limits for purchases of materials, which are then monitored by the Accounting Department through the enterprise accounting system. Task orders and contracts are universally used to establish spending limits for purchases of contractual services, which are then monitored by the Project Development and Key Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 14 of 35 7/8/15 Accounts Department utilizing spreadsheets. Direct labor expenses (gross payroll) are tracked separately from overhead costs including employee benefits and payroll taxes. Once labor hours have been calculated, overhead including employee benefits and payroll taxes are applied in a separate transaction on the work order. AVEC and AEA have an agreed rate cap for employer costs of payroll, consisting only of employee benefits and payroll taxes. AVEC can ensure that only allowable costs would be requested for reimbursement because the direct labor and indirect/overhead costs are separate transactions (and thus the indirect/overhead amounts can be easily omitted from reimbursement), and because the allowable rate has been established and agreed upon (and thus can be easily included for reimbursement). 4.2 Local Workforce Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce. Describe how the project will use local labor or train a local labor workforce. AVEC uses local labor whenever possible in both daily operations and special projects; recognizing that local labor is good for its customers’ families. Local wages circulate, often multiple times, within the community thereby benefitting the community as a whole. AVEC project managers also know there are tasks that are more competently done by local folks; for example, bear guards and four-wheel drivers. It is typical that local labor saves money within special project budgets as demonstrated in comparing budgets with local labor wages against imported labor wages, travel and per diem. This is true for not only its own projects but also for its contractors . Therefore, AVEC addresses local labor in its bid documents as appropriate and allowed by law. For example, part of the Contractor’s Responsibilities in the Emmonak bid documents says: “Local Labor and Local Firms Participation Goal: The participation goal for this project has been established as a percentage of the total dollar amount awarded to the successful bidder in the amount of 20% to local labor and local firms. The successful bidder shall provide the Owner documentation to demonstrate compliance with this goal. If this goal cannot be reached and good faith efforts were demonstrated through documentation to the Owner, the Owner has the right to issue a variance to this section.” Also, from the New Stuyahok bid documents: “Use of Local Labor and Local Firms: To the maximum extent practicable, CONTRACTOR shall accomplish the Project using local labor and Alaska firms.” In most AVEC communities the power plant operators are emplo yees of their city government. Through a contract process, AVEC reimburses the city for the wages and fringe benefits of the power plant operators. During project feasibility, design and construction phases, plant operators Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 15 of 35 7/8/15 provide necessary assistance; typically with tasks like bird monitoring, taking photographs, changing SIM cards, hosting and assisting engineers and others coming into the community for project work. AVEC is very proud of its training program wherein power plant operators are trained by an itinerant training supervisor who travels continuously to AVEC communities and works one-on-one with the operators as needed and throughout the year. SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and project permits and other authorizations can reasonably be obtained. 5.1.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. 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. 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. Construction of the heat recovery module is the first step toward gaining substantial additional heat from the existing recovered heat system, including capturing heat from generator exhaust. This project does not propose repairs or maintenance to the system; instead it is the first step toward capturing more heat from the Bethe l Power Plant. Based on the reconnaissance assessment and more recent feasibility and design work completed by Coffman Engineers, AVEC believes there is a great deal more recoverable heat that could be made available to the community. Conservatively at current power generation levels, the Bethel power plant has the potential to provide a net of approxi mately 45,500 MMBTUH. This will displace the burning of over 1.2 million gallons of fuel in commercial consumer’s boilers (heaters). The above estimate is based on the following assumptions:  Generators have about 40% heat utilization, meaning 60% of the heat in the fuel is NOT converted to electricity. If one generator produces 2.2 megawatts of electricity, then it also produces 3.3 megawatts of heat.  Converting to therms, 3.3 megawatts = 11.3 million BTUH = 113 therms per hour per generator and: 113 therms/hr/gen x 8760 hr/yr = 989,880 therms/yr/gen  Heating oil at $6/gallon in a 70% efficient home boiler will yield $6.12/therm.  Multiplying 113 therms/hr/generator x $6.12/therm = $691.56 equivalent value per hour per generator.  One generator in continuous operation (8,760 hrs per year) yields $691.56 equivalent value/hr/gen x 8,760 hr/yr = $6,060,000 equivalent value per year per generator. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 16 of 35 7/8/15 Being conservative, AVEC has de-rated the effectiveness of entire recovered heat system to only 50%, thereby each generator has a potential yield of about 495,000 therms (989,880/2) in heat recovery per year at the subscribers’ premises. 495,000 therms is equivalent to 500,000 gallons of heating oil, from which we arrive at 500,000 gallons/year/gen x 2.4 gen = 1,200,000 gallons/year displaced (not burned) in consumer boilers at $6/gallon, or $7.2 million in heating fuel costs. It should be noted that the above-mentioned available recovered (net) heat resource is based on a very conservative estimate. If greater than half of the heat can be utilized, which could be expected in future years as the system is upgraded, the benefits will increase proportionately. It can also be fairly stated that in very cold weather when heating demand is the greatest, the power plant operates at above average utilization and can provide above average heat to the off-takers. Recovered heat is an existing and viable energy resource in Bethel. There is a proven recovered heat system that has served the community for over 40 years. Wind ener gy is under investigation in Bethel. A future wind project would work together with the recovered heat system. 5.1.2 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 describe potential barriers No environmental permits are required. 5.2 Project Site Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system. 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. No land ownership issues exist. AVEC owns the area proposed for the heat recovery module. 5.3 Project Risk Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable. 5.3.1 Technical Risk Describe potential technical risks and how you would address them. AVEC does not see any issues with constructing this heat recovery module. AVEC has successfully constructed buildings and recovered heat systems in the recent past and will use their experience to implement this project. The primary tie-in points to the existing heat recovery loop will be located outside of the heat recovery module building, which will allow for uninterrupted operation of the power plant while Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 17 of 35 7/8/15 work on the heat recovery loop is completed. Valving is in place to bypass the heat recovery distribution piping while the system upgrades are completed. No shutdown is anticipated. 5.3.2 Environmental Risk Explain 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 describe other potential barriers There are no environmental risks and no potential barriers associated with the construction of the heat recovery module. The building site is immediately adjacent to the diesel generator powered existing power plant, therefore, environmental concerns do not exist. Visual, aviation, or telecommunication issues do not exist at this location. The proposed module area has been previously filled; therefore no wetlands issues exist. AVEC owns the land where the building is proposed. 5.4 Existing and Proposed Energy System Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as planned. 5.4.1 Basic Configuration of Existing Energy System Describe the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The Bethel power plant consists of six, water-cooled diesel powered EMD 16-645 E4B generators rated at 2.2MW. The generators are housed in a single building. Three generators are 39 years old and the other three are 30, 25 and 23 years old . The efficiency of the power plant in 2014 was 13.82 kWh/gallon (AVEC 2014 generation report data). The engine generators are cooled through a combined cooling and heat recovery system. The cooling system is directly connected to the heat recovery loop without an isolation heat exchanger. There are several large radiators to dissipate excess heat not used in the heat recovery loop. The cooling fluid is corrosion inhibited water with no glycol for freeze protection. The cooling/heat recovery is distributed through one continuous (distribution) piping system consisting of a 10-inch mainline with some 6-inch and 4-inch loops extending to the customer facilities (off-takers). The system consists of steel pipe with mechanical couplings, foam insulation, and metal jacketing. The piping is mounted above ground on steel pipe supports. Users have heat exchangers in their facilities to transfer the heat to their internal piping systems. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 18 of 35 7/8/15 The diesel prime movers are arranged in the center of the power plant building. A separate room to the north houses four booster pumps, five expansion tanks, and one open make -up tank to hold a reserve quantity of cooling fluid. An arrangement of thermostatic valves and isolation valves diverts the fluid in whole or in part to the radiators. Additional details regarding the recovered heat system is found in the AVEC Bethel Heat Recovery Inspection and Recommendations (Tab E). Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 19 of 35 7/8/15 Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 6 ii. Rated capacity of generators/boilers/other 2.2MW each iii. Generator/boilers/other type EMD 16-645 E4B iv. Age of generators/boilers/other 3 generators are 39 years old; 1 generator is 30 years old; 1 generator is 25 years old; 1 generator is 23 years old v. Efficiency of generators/boilers/other 13.82 (kWh/gal) (2014 generation report) vi. is there heat recovery and is it operational? Yes/Yes b) Annual O&M cost i. Annual O&M cost for labor $750,000 (labor and non-labor) ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) i. Electricity [kWh] 41,692,800 kWh generated (2014 generation report) ii. Fuel usage Diesel [gal] 3,016,647 gallons (estimated, based upon May-Dec 2014 generation report) Other iii. Peak Load 6,550 kWh (December, 2014 generation report) iv. Average Load 4,729 kWh (2014 generation report) v. Minimum Load 4,297 kWh (August, 2014 generation report) vi. Efficiency 13.82 (kWh/gal) (2014 generation report) vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 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. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 20 of 35 7/8/15 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. Bethel is a growing community with a population increase of 16.3% from the year 2000 to 2013. Their 2011 comprehensive plan outlined several improvements and additions to their existing facilities including; Port of Bethel expansion plans and harbor improvements, a new fire department substation, additional water/sewer transfer stations, upgrades to the Bethel Youth Center and the completion of the Yukon-Kuskokwim Aquatic Center, which recently opened its doors in 2014. Expansion and improvements to Bethel’s existing trail and park systems are a community goal which, when realized, will enhance quality of life in Bethel and discourage resident relocation. Importantly, there are a number of new and recently constructed buildings which could connect to the heat recovery system. These include the new Bethel Aquatic Center, YKHC Long-Term Care Building, and YKHC Alcohol Treatment Center. 5.4.3 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. For PCE eligible communities, please describe the expected impact would be for both pre and post PCE. Because little is known about the buildings that are served by the existing recovered heat system and because they are not metered, the following assumptions were used to determine the following pages of information: 1) Building square footage is estimated based on Google Map s and internet research. 2) Each building’s annual heating oil and electricity consumption is based on published energy utilization indices from Alaska Housing Finance Corporation’s White Paper on Energy Use in Alaska’s Public Facilities the Bethel region. Further adjustments were made to this index to account for each building’s estimated energy usage pattern. 3) The existing buildings use recovered heat and diesel heating fuel. For consistency and because the exact benefit of recovered heat is unknown, the combined annual recove red heat and heating fuel consumption was estimated in terms of gallons of heating oil. 4) Existing buildings receive 90% of their heat from the recovered heat system. There are about 10 facilities which could be served by expansion of the recovered hea t system. It has not been determined which buildings will be connected in the future. Five new “representative” buildings (YKHC Long-Term Care Building, Department of Corrections Adult Corrections, Department of Corrections Youth Facility, YKHC Alcohol Treatment Center, and Bethel Aquatic Center were selected to analyze in this evaluation These buildings are under construction or recently completed; therefore assumptions were made about their size and heating use. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 21 of 35 7/8/15  Building name Yukon Kuskokwim Delta Regional Hospital (operated by YKHC) (currently connected)  Type or primary usage of the building Hospital and clinic  Location 700 Chief Eddie Hoffman Highway (See attached map.)  Hours of operation 24 hours/day  Single structure or multiple units Single Structure  Total square footage 100,000 square feet (estimated)  Electrical consumption per year 1,009,000 kWH/year (estimated)  Heating oil/fuel consumption per year The building utilizes recovered heat from the Bethel power plant and diesel heating fuel. The combined consumption is estimated at 85,000 gallons/year.  Average number of occupants 37 hospital beds; estimate occupancy at 75 (staff and patients)  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. Unknown; but will be determined during the next phase of work.  Have building thermal energy efficiency upgrades been completed?  If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. Unknown  Estimated annual heating fuel savings 76,500 gallon/year (estimated; 90% of total heat)  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 22 of 35 7/8/15  Building name State of Alaska Department of Corrections Adult Corrections Center (currently connected)  Type or primary usage of the building Prison  Location 1000 Chief Eddie Hoffman Highway (See attached map.)  Hours of operation 24 hours/day  Single structure or multiple units Single Structure  Total square footage 40,000 square feet (estimated)  Electrical consumption per year 403,000 kWH/year (estimated)  Heating oil/fuel consumption per year The building utilizes recovered heat from the Bethel power plant and diesel heating fuel. The combined consumption is estimated at 34,000 gallons/year.  Average number of occupants Under investigation  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. Under investigation  Have building thermal energy efficiency upgrades been completed?  If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. Unknown  Estimated annual heating fuel savings 30,600 gallon/year (estimated; 90% of total heat)  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 23 of 35 7/8/15  Building name State of Alaska Department of Corrections Youth Facility (currently connected)  Type or primary usage of the building Youth Corrections Facility  Location 1000 Chief Eddie Hoffman Highway (See attached map.)  Hours of operation 24 hours/day  Single structure or multiple units Single Structure  Total square footage 18,000 square feet (estimated)  Electrical consumption per year 181,000 kWH/year (estimated)  Heating oil/fuel consumption per year The building utilizes recovered heat from the Bethel power plant and diesel heating fuel. The combined consumption is estimated at 15,200 gallons/year.  Average number of occupants Under investigation  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. Under investigation  Have building thermal energy efficiency upgrades been completed?  If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. Unknown  Estimated annual heating fuel savings 13,680 gallon/year (estimated; 90% of total heat)  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 24 of 35 7/8/15  Building name YKHC Alcohol Treatment Center (PATC) (under construction)  Type or primary usage of the building Healthcare  Location Under construction near the power plant.  Hours of operation 24 hours/day (expected)  Single structure or multiple units Single story  Total square footage 3,100 square feet  Electrical consumption per year 31,000 kWH/year (estimated)  Heating oil/fuel consumption per year Estimated at 2,600 gallon/year  Average number of occupants Under investigation  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. Under investigation  Have building thermal energy efficiency upgrades been completed?  If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. New building; expect that efficiency measures are incorporated in design.  Estimated annual heating fuel savings 2,340 gallon/year (estimated; 90% of total heat)  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. Unknown Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 25 of 35 7/8/15  Building name Yukon Kuskokwim Aquatic Center  Type or primary usage of the building Aquatic and Fitness Center  Location 267 Akiachak Drive  Hours of operation 15 hours/day  Single structure or multiple units Single Structure  Total square footage 21,200 square feet  Electrical consumption per year 680,000 kWH/year (estimated)  Heating oil/fuel consumption per year 50,000 gallons/year (estimated)  Average number of occupants Unknown  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. Unknown  Have building thermal energy efficiency upgrades been completed?  If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. Unknown  Estimated annual heating fuel savings 45,000 gallon/year (estimated; 90% of total heat)  If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. N/A Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 26 of 35 7/8/15 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  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Integration plan  Delivery methods Renewable Technology While not technically a renewable technology, this project involves constructing a heat recovery module. The module would allow better control and utilization of the heat captured from the Bethel Power Plant generators. The Bethel power plant heat recovery system is currently functioning on a commercial scale serving several facilities. It provides heat, displacing fuel that community buildings would otherwise have to purchase at a higher cost than the recovered heat from the power plant. Details on the system are found in Section 5.4.1 of this application and in AVEC Bethel Heat Recovery Inspection and Recommendations (Tab E). Optimum Installed Capacity All generator sets are currently connected to the heat recovery system. Conservatively speaking, recovered heat could displace up to 1.2 million gallons of heating fuel. AVEC believes the current utilization is well below that figure, meaning the community is not yet taking full advantage of available heat. Optimally, utilization would approach 90% of available heat. Anticipated Capacity Factor It is expected that 90% of available recovered heat could be used. Approximately 10% of the recovered heat could be lost in the distribution through pipe heat loss, heat exchanger inefficiencies, and other factors. Anticipated Annual Generation At current utilization levels, the Bethel power plant has the potential to provide a net of approximately 45,500 MMBTUH. Anticipated Barriers Constructing the new heat recovery module presents no significant barriers. Minor barriers may exist in the future when integrating the new piping system with the older recovered heat system. Additionally, some minor modifications to the new user’s existing heat systems may be required to integrate the heat recovery loop with their system. As integration would be isolated to tie in locations, replacement of some piping and components would result. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 27 of 35 7/8/15 Basic Integration Concept The new heat recovery module would isolate the existing heat recovery loop from the genset cooling system. It would be integrated into the system via new piping and tie-in points located outside of power plant. Delivery Methods Recovered heat will be delivered via the new heat exchanger loop between the power plant the new heat recovery module (proposed here), the existing main heat recovery piping distribution loop system from the heat recovery module, and new branch piping to the specific facilities. 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] Recovered heat b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] 45,500 MMBTUH c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other 5.4.5 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. An energy (BTU) meter will be installed in the heat recovery module to measure the flow rate and temperatures to and from the heat recovery distribution network. An in -stream induction type flow meter – such as the Badger ModMAG M2000 series – or other suitable technology will be used, along with temperature sensors. A PLC will be utilized to calculate the energy transfer rate. Using the meter, a calculation will be performed on the flow and temperature change in order to obtain the net heat recovery delivered to the distribution network. The flow meter will include a communications link to the power plant operator interface panel. The total cost of the meter and associated equipment and labor is $11,230 (metering costs are included in the project budget). In the future, energy (BTU) meters will be installed on all customer connections to the recovered heat system for billing purposes. Distribution system losses can then be calculated. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 28 of 35 7/8/15 Electrical metering is included in the heat recovery module. A single me ter will be installed on the main feeder to the new module and will track energy consumption required to operate the heat recovery system, including pumps, lights, heat trace, etc. The electrical meter will have communications capability for reporting to AVEC operators. SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel, operation and maintenance, and capital costs over the life of the proposed project). 6.1.1 Economic Benefit Explain the economic 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:  Anticipated annual and lifetime fuel displacement (gallons and dollars)  Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  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 economic model used by AEA is available at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. This economic model may be used by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicant s. If used, please submit the model with the application. Construction of the heat recovery module is the first step in a multi -phased plan to capture additional heat from the Bethel Power Plant in order to serve additional customers. Once all phases are completed and new connections are installed, numerous economic benefits would arise:  Substantial Heating Fuel Savings. Since there is no metering on the existing heat recovery system, current heating fuel displacement at the four facilities now connected to the heat recovery system can only be estimated at 147,780 gallon s/year. Assuming 1,200,000 gallons/year minimum potential fuel savings (see Coffman reconnaissance assessment) fuel savings is estimated at approximately $7.33 million during the first year, assuming a fuel price of $6.11/gallon (July 2015 heating fuel according to DCCED website).  Fuel Savings Benefits to Key Facilities. Reduced heating costs will benefit all of Bethel and the Yukon-Kuskokwim Delta area, since it would increase available funds for the operations of important community facilities that provide services such as health care and job training.  Improved Revenue to the Cooperative. AVEC would waste less heat and add revenue to the cooperative. In 2014, the recovered heat system brought in approximately $1,176,600 gross Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 29 of 35 7/8/15 revenue. Once the system is improved and expanded, it is likely that the system could bring in between $6 and $8 million/year in revenue to AVEC. Additional revenue is used to assure long term viability of the system by providing the capital necessary to maintain and or replace sections of pipe as they age and to lower the cost of service for AVEC members. Potential additional annual incentives/Potential additional annual revenue streams Tax credits are not expected to be beneficial to the project due to AVEC’s status as a non -profit entity. In addition, the project would not be eligible for green tag sal es, since it is not a renewable technology. 6.1.2 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  Proposed rate of return from grant-funded project 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. Potential new customers. The following new customers could be served by the Bethel Power Plant Heat Recovery System: City Aquatic Center, YKHC Long-Term Care Building, and YKHC Alcohol Treatment Center. In addition, the City of Bethel has expressed interest in re-connecting to the system as it was once connected. In the future AVEC expects to construct a second loop which could connect additional buildings. Potential Sales price. Based on record maintained by Bethel Utilities (previous Bethel owner) and AVEC, heat sold from the Bethel Power Plant Heat Recovery System made the utility between approximately $784,000 and $1,306,900 in the years between 2009 and 2014. The average annual amount charged was about $1,063,750. See the table below. It should be noted that heat energy metering is an industry standard not currently utilized in the Bethel heat recovery system. Users are charged for heat by a formula based on the facility’s history and the monthly weather (heating degree days). Metering of the heat leaving the plant and consumed at each user to current standards is a priority upgrade for the future project. AVEC understands that this upgrade is valuable for management decisions as well as client billing. It was also reported that BTU meters (meters to measure the heat delivered to a user) have been unreliable in the past. A meter plan and design considering new robust and accurate BTU meters, AVEC and user benefits, and code or state regulation will be developed during this phase of work and will proceed throughout all future development of the system. Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 30 of 35 7/8/15 YKHC= Hospital and Unit 800 (apartment) building UAF=University of Alaska, Fairbanks Kuskokwim Campus DOC= State of Alaska Department of Corrections Adult Corrections Center Youth Facilities= Department of Corrections Bethel Youth Facility AVEC’s typical charge for heat delivered to a community owned heat loop is ½ AVEC’s cost per BTU based on the heating value of its fuel. In the case of Bethel, AVEC delivers heat to the customer. Therefore the cost of the heat will be reflective of the cost of delivered heat. In any case, the cost of delivered heat is expected to be well below the cost of the customer’s self-generated heat in their own boilers since AVEC purchases fuel at significantly lower prices than any commercial entity in Bethel. Proposed rate of return from grant-funded project. In 2014, the recovered heat system brought in approximately $1,176,600. Once the system is improved and expanded, it is likely that the system could bring in between $6 and $8 million/year in revenue to AVEC. 6.1.3 Public Benefit for Projects with Private Sector Sales For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. AVEC currently provides recovered heat to public buildings and facilities. At present, there is no plan to provide heat to private sector-owned facilities. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) 6.2 Financing Plan Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant- funded phase and has considered options for financing subsequent phases of the project. Facilities Year YKHC UAF DOC Youth Facility Total 2009 $559,000 $74,000 $172,000 $52,000 $857,000 2010 $510,500 $73,500 $145,000 $55,000 $784,000 2011 $624,000 $116,000 $185,000 $76,000 $1,001,000 2012 $739,000 $136,000 $286,000 $96,000 $1,257,000 2013 $695,600 $132,500 $392,300 $86,500 $1,306,900 2014 $752,900 $104,900 $275,800 $43,000 $1,176,600 Average $646,833 $106,150 $242,683 $68,083 $1,063,750 Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 31 of 35 7/8/15 6.2.1 Additional Funds Identify the source and amount of all additional funds needed to complete the work in the phase(s) for which REF funding is being applied in this application. Indicate whether these 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. Identification of other funding sources. AVEC has determined that to better serve Bethel facilities with recovered heat from the power plant, the future phases of design and construction project will be needed. Approximately $5.4 million additional funding, will come from the future rounds of the REF program, U.S. Department of Agriculture High Energy Cost Grant (HECG) Program, or another grant program, supplemented by AVEC matching funds. Recognizing the trend AEA has established and references in the REF Round IX guidance for encouraging other-than-REF funds for construction phase projects, AVEC constantly researches and applies for federal grants for its projects. AVEC’s history demonstrates a commitment to completion of projects funded through the REF. AVEC funds its match obligations and project costs above estimates through loans and would do so for the construction of the Bethel Power Plant Heat Recovery Module. It should be noted that AVEC provided funding to bring the design from the 35% stage to 65% design and cost estimate. AVEC has been approached by various public entities requesting connection to the heat recovery system and forward movement on this project is necessary to accommodate those that are interested. 6.2.2 Financing opportunities/limitations If the proposed project includes final design or construction phases, what are your opportunities and/or limitations to fund this project with a loan, bonds, or other financing options? It is important to note that all loan and bonding financing options, even those with small interest rates, will necessarily increase the customers’ cost of electricity and or heat. Since its members already pay some of the highest electric rates in the nation, AVEC endeavors to complete project funding packages with grant funds. AVEC now has an approximate total debt of $65 M but is not close to its mandated debt ceiling. 6.2.2 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. AVEC’s consulting engineers and professional cost estimator developed the 65% design and cost estimate (attached). Cost estimates are taken very seriously and are developed carefully, and when necessary multiyear escalation and contingencies are included . No cost overrun is expected because the numbers in the estimate are conservative. As AVEC has done in the past, it will cover any cost increase or shortfall in funding necessary to complete a started project. 6.2.3 Subsequent Phases Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 32 of 35 7/8/15 If subsequent phases are required beyond the phases being applied for in this application, describe the anticipated sources of funding and the likelihood of receipt of those funds. AVEC is currently working with their consulting engineer to better define future phases of the Bethel Power Plant Heat Recovery Project. In summary, future work includes:  Completion of a detailed assessment of the recovered heat system and preparation of conceptual design of essential upgrades and identification of potential new recovered heat connections (currently funded and underway)  Final design of the exhaust heat recovery to better capture heat directly from the generators  Final design of new connections identified in the detailed assessment  Construction of the exhaust heat recovery system  Construction of new connections  Design and construction of an additional heat recovery loop As a not-for-profit cooperative, AVEC is able to take advantage of various federal and state grant programs. In addition, AVEC often teams with local city and tribal governments to secure grant funds. AVEC would look to securing these “soft” fund s before borrowing the money to complete work. AVEC is confident in their position to obtain grant funds for future phases. 6.3 Other Public Benefit Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone will not be presumed to be in the best interest of the public. 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, etc.) that can be used for other purposes  The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)  The project will solve other problems for the community (waste disposal, food security, etc.)  The project will generate useful information that could be used by the public in other parts of the state  The project will promote or sustain long-term commercial economic development for the community The proposed Heat Recovery Module has many benefits, which are very important, yet non - economic: The new heat recovery module would allow the generators to maintain cooled temperatures and stay operational in the event of any problems with the heat recovery system. Currently, the Bethel’s power generators are cooled by the heat recovery system . The generators are cooled by the water running through pipes which leave the power plant in a single l oop. If the heat recovery Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 33 of 35 7/8/15 system were to fail, the power plant would have to shut down, and then manually switch existing valving in the plant for engine cooling. This benefit cannot be understated. The loss of community-wide electrical power puts facilities and residents at risk. This project helps to ensure continued operations of the hospital and correction facilities and keeps valuable community resources, like the water and sewer systems, from failing. The heat recovery module would lead to su bsequent phases of heat recovery projects which will ensure that the system continues to operate. Some of the existing heat recovery system users do not have a backup heating systems sized to meet their building’s heating demand. While those buildings may not be damaged by lower temperatures, it is expected that the facilities would not be able to continue their operations and business. This heat recovery module would include meters to help determine the amount of heat delivered and returned via the existing system. BTU meters have failed on most of the connections, and rates to charge each facility are based on a complicated calculation. Although additional meters will be needed at each facility served, proposed metering associated with the module will help to understand and ensure that customers are charged appropriately. As previously mentioned, construction of the heat recovery module is the first step leading to other projects that will ensure that the heat recovery system is operating at its full potential. Once all the recovered heat system phases are implemented and new connections are installed numerous other noneconomic benefits would occur:  Reduced heating costs would benefit all Bethel and the Yukon-Kuskokwim Delta area, since it would increase available funds for the operations of important community facilities that provide services such as health care and job training.  Reduced fossil fuel emission, which results in improved air quality and decreased contribution to global climate change, would occur.  Reduced fuel consumption, which reduces the volume of fuel transported and the potential for fuel spills and environmental impacts, would be realized. SECTION 7 – SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. Include at a minimum:  Capability of the Applicant to demonstrate the capacity, both administratively and financially, to provide for the long-term operation and maintenance of the proposed project  Is the Applicant current on all loans and required reporting to state and federal agencies?  Likelihood of the resource being available over the life of the project  Likelihood of a sufficient market for energy produced over the life of the project  As a successful utility that has been in operation since 1968, AVEC is completely able to finance, operate, and maintain this project for the design life. AVEC has capacity and experience to operate Renewable Energy Fund Round IX Grant Application – Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 34 of 35 7/8/15 this project. AVEC has experience in designing and constructing, operating and maintaining energy systems throughout rural Alaska. AVEC met reporting requirements for 22 state and 27 federal grants in 2014 and is current on all outstanding loans. Likelihood of the resource being available over the life of the project. The Bethel Power Plant will continue to provide electricity to its community. Sufficient market for energy over the life of the project: As the largest community in Western Alaska and the main port on the Kuskokwim River, Bethel’s energy demand will likely increase over the life of this project. SECTION 8 – PROJECT READINESS Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Specifically address your progress towards or readiness to begin, at a minimum, the following:  The phase(s) that must be completed prior to beginning the phase(s) proposed in this application  The phase(s) proposed in this application  Obtaining all necessary permits  Securing land access and use for the project  Procuring all necessary equipment and materials  Improving the thermal energy efficiency of the building(s) to be served by the heat project As a necessary step to obtain construction funding from AEA, a feasibility study and 65% design have been completed for the Bethel Heat Recovery Module and are attached to this application. AVEC owns the land where the module would be constructed. Because the module would be located adjacent to the power plant in an area that was previously filled, permitting is not required. Equipment and materials would be purchased with this grant funding. The buildings that would connect to the system are new construction and designed with energy efficiency in mind. 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. The Documentation of support must be dated within one year of the RFA date of July 7, 2015 The community of Bethel supports this project and is interested in moving forward with this important project and ultimately the upgrades and expansion to the recovered heat system . Letters of support have been received from the City of Bethel, Orutsararmuit Native Council, Yukon Kuskokwim Health Corporation, Department of Corrections, Bethel Youth Facility, and UAF Kuskokwim Campus. YKHC’s letter includes an interest to purchase additional heat for their facilities that are under construction (Tab B). SECTION 10 – COMPLIANCE WITH OTHER AWARDS Renewable Energy Fund Round IX Grant Application –Heat Projects Bethel Power Plant Heat Recovery Module Construction AEA 15003 Page 35 of 35 7/8/15 Identify other grants that may have been previously awarded to the Applicant by the Authority for this or any other project. Describe the degree you have been able to meet the requirements of previous grants including project deadlines, reporting, and information requests. AVEC’s record in grant administration and project management is excellent. Grant and project managers (in particular, Steve Gilbert and Forest Button) and the financial staff (in particular, Alden Worachek) complete all reporting and information requests in a timely manner. In addition to many successful REF grants, AVEC’s grant history shows successful Rural Utility Service High Energy Cost Grants, Alaska Community Development Block Grants, Norton Sound Economic Development Grants, and Alaska Legislative Grants. In 2014, AVEC successfully met reporting requirements for 22 state and 27 federal grants. An independent auditor’s report on compliance with aspects of contractual agreements and regulatory requirements, independent auditor’s report on internal control over financial reporting and on compliance and other matters, and an independent auditor’s report on compliance for each major federal program and report on internal control over compliance required by OMB Circular A-133 for AVEC for 2014 did not identify any deficiencies in internal control over compliance that they considered to be a material weakness. In addition, the independent auditor’s report on compliance with aspects of contractual agreements and regulatory requirements stated that nothing indicated AVEC failed to comply with the terms, covenants, provisions, or conditions of loan, grants, and security instruments as specified in 7 CFR part 1773. AVEC was awarded $645,613 through a REF Round 8 grant for a system assessment and conceptual designs for adding additional customers to the Bethel Heat Recovery System. SECTION 11 –LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below please provide a list additional documents attached to support completion of prior phases. Please see the following documents that provide further information on the Bethel Power Plant Heat Recovery Module under Tab E: AVEC Bethel Heat Recovery Inspection and Recommendations (August 2014) Bethel Power Plant Heat Recovery System Upgrades 35% Design Narrative (August 2015) Bethel Power Plant Heat Recovery System Upgrades 35% Design Drawings (August 2015) Bethel Power Plant Heat Module 65% Design Narrative (September 2015) Bethel Power Plant Heat Module 65% Design Drawings (September 2015) Bethel Power Plant Heat Recovery Module 65%Design Construction Cost Estimate (prepared by HMS, Inc.) Coffman Fee Proposal SECTION 12 –LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration Listed above Tab A Resumes Tab A is provided as a separate file to this document. Tab B Letters of Support Tab C Heat Project Information No information provided within this section. Information is found within the application. Tab D Authority 2001.1 ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. Delegations of Authority from the Board of Directors to the President & CEO I. OBJECTIVE To define the delegations of authority and responsibilities from the Board of Directors to the President and Chief Executive Officer to enable him/her to adequately direct the operations of Alaska Village Electric Cooperative, Inc. and to report to the Board on the results achieved. II. POLICY A. Planning 1. Policies To formulate, with the staff as appropriate, the policies of Alaska Village Electric Cooperative to be recommended by the President and Chief Executive officer to the Board of Directors for their consideration. Such policies shall be reviewed by the President and Chief Executive Officer at least once a year and a recommendation made to the Board on any revisions required. 2. To develop, with the staff, the viewpoints, objectives and goals of Alaska Village Electric Cooperative and to review periodically these objectives and goals, as well as the results achieved, with the Board. 3. Long and Short-Range Plans To conduct studies with the staff and outside consultants, if necessary, and recommend to the Board short and long-range plans, including plans in such areas as system studies, engineering work plans, power requirements and load forecasts, financial forecasts, energy management, member and public relations, construction, facilities, etc., and to report to the Board on results compared to such plans. 4. Membership Meetings To develop, with the staff, plans for annual and other meetings of Alaska Village Electric Cooperative, and to make appropriate recommendations to the Board. 5. Work Plans and Budgets To formulate, with the staff, annual work plans and budgets for Alaska Village Electric Cooperative and recommend them to the Board for their consideration, and to provide detailed quarterly reports on revenue, expenses and other results compared to such plans. 6. Legislation To analyze and determine, with the Board and with the staff and in coordination with organizations such as Alaska Rural Electric Cooperative Association (ARECA) and the National Rural Electric Cooperative Association (NRECA), state and federal legislative and regulatory matters to be proposed, supported or opposed consistent with Cooperative goals and philosophy. B. Organization 1. Organization Structure a. To periodically review activities of Alaska Village Electric Cooperative and to determine with the staff as appropriate, the organization structure best suited to carry out the overall objectives of Alaska Village Electric Cooperative within the limitations of the budget. 2001.2 b. To determine, with the appropriate staff members, the need for additional positions, the transfer, reassignment, or elimination of present positions, and to effect such changes, provided they are within the limitations of the personnel costs of the approved budget. 2. Selection of Personnel a. To develop or approve standards and qualifications for use in recruitment, transfer, and promotion of personnel. Such standards and qualifications should meet all federal and state legal requirements. b. To select, appoint, transfer, promote, demote, discipline and terminate personnel. 3. Training a. To ensure that the staff members are trained in accordance with the qualifications and requirements of their positions. b. To initiate and promote, through appropriate staff, training programs for all personnel within the limitations of the approved budget, including sending personnel to training programs outside the organization. 4. Performance Appraisals a. To appraise, at least annually, the performance of immediate staff members and to counsel with them and assist them to develop and improve. b. To ensure that a performance appraisal program is established and carried out for all personnel and that adjustments for those outside the bargaining unit are based on merit. 5. Position Descriptions To ensure that written position descriptions and job specifications are prepared and reviewed as necessary for all personnel. 6. Fringe Benefits To administer or approve activities and actions with respect to annual leave, holidays, and other fringe benefit programs for the personnel within established policies and within the limitations of the budget. A report shall be presented annually to the Board or committee of the Board describing the various benefits and employee and employer contribution, if any, and what percent fringes are of payroll. 7. Consultants a. To recommend to the Board the employment of general counsel and independent auditors, and contracts and agreements for their services with the committee making an appropriate recommendation to the Board. b. To select and appoint other outside specialized consultants, and to negotiate contracts or agreements for services of such specialized consultants, within the limitations of the work plan and budget, and to advise the Board of actions taken. c. To report to the Board periodically on services provided and the fees received by principal consultants. 8. Wage and Salary Administration a. To develop wage and salary policy and present it to the Board for approval. 2001.3 b. To determine all salaries, except the President and Chief Executive officer's, within the Board approved wage and salary policy and within the limitations of the budget. A report is to be provided to the Board annually regarding the administration of the wage and salary policy. 9. Labor Relations a. To negotiate, with or without consulting assistance, labor contracts and make appropriate recommendations to the Board. b. To administer the approved labor contract and see that the appropriate supervisors understand the provisions of the contract and its administration. C. Operations 1. Overall Administration a. To direct the day-to-day operations and activities of Alaska Village Electric Cooperative except as specified otherwise by the By-Laws or the Board; to delegate authority to immediate staff; to authorize further delegation of authority to any level of management with full recognition that the President and Chief Executive Officer cannot be relieved of overall responsibility or accountability. b. To manage operations of Alaska Village Electric Cooperative in accordance with the policies of the Board and in accordance with policies and procedures of RUS and other lending institutions; as well as applicable federal, state, and local laws. c. To designate an appropriate person to serve as Acting President and Chief Executive Officer in an extended absence of the President and Chief Executive Officer. In case the President and Chief Executive Officer becomes incapacitated, the Assistant President and Chief Executive Officer shall serve temporarily as Acting President and Chief Executive Officer until the Board of Directors takes appropriate action, at a meeting to be convened as soon as possible. d. To ensure that staff advice and assistance is provided to the Board and its committees, and to participate in the deliberation of these committees as requested or required. e. To accept invitations to participate in or designate other staff members to participate in national, regional, state, and local meetings which further the best interests of Alaska Village Electric Cooperative, within the limitations of Board policy and the approved budget. Participation by the President and Chief Executive Officer in such activities that require considerable time over a sustained period requires the approval of the Board. The President and Chief Executive Officer's serving on the board of other organizations shall be reported to the Board. f. To serve as the authorized spokesperson for Alaska Village Electric Cooperative on matters and to keep the Board up-to-date and well informed on such matters. g. The President and Chief Executive Officer shall take all necessary steps in the event that the Cooperative is served with legal process to protect all interests of the Cooperative with respect to such litigation and such matters shall be brought to the attention of the Board at the next scheduled meeting. 2. Membership Services To direct membership services in such areas as, but not necessarily confined to, public and member relations, load management, energy conservation, communications, and research as authorized by the Board. 3. Legislation a. To develop and carry out, in coordination with organizations such as ARECA and NRECA, and within expressed Board philosophy, a legislative program furthering Alaska Village Electric Cooperative's objectives and policies. Such a program will include, but not be limited to, research, 2001.4 preparation, and presentation of testimony before appropriate committees, consultation with members of Congress, the State Legislature, and state and federal administrative and regulatory agencies. b. To participate with allied groups to obtain their increased understanding and support of Alaska Village Electric Cooperative's legislative and regulatory objectives and programs. 4. Financial a. To make expenditures in accordance with the approved budget, including approval of non- budget items up to $100,000 or all non-budgeted items which, in his judgment, are vital to effect unanticipated emergency maintenance or repairs. Non-budgeted items exceeding $100,000 which are not items vital to effect unanticipated emergency maintenance or repairs, must be presented to the Board for approval. b. To invest or reinvest funds, cash investments when due, and cash government bonds, when and if necessary to protect Alaska Village Electric Cooperative's cash position and to carry out an effective cash management program. Investments will generally be made in CFC securities, in federal government insured or guaranteed securities or in other securities approved by the lending agencies. c. To authorize and approve the travel expenses of personnel except the President and Chief Executive officer's on company business within the limitations of the budget and within established policy. Such expenses shall be supported by itemized expense accounts with receipts attached, as appropriate. Expenses of the President and Chief Executive Officer will be reviewed by the Secretary/Treasurer. d. To approve account systems, procedures, statistics, and types of reports necessary for sound financial management and to meet the requirements of lending and regulatory agencies and for necessary control information required by the Board. e. To purchase or lease all equipment, vehicles, hardware, furniture, materials, and supplies within the guidelines of the budget. All purchases shall comply with RUS policies or procedures. f. To negotiate contracts for construction in accordance with RUS procedures. The contracts will be awarded in accordance with RUS procedures so construction completed can be reimbursed from loan funds without delay. g. To execute and deliver purchase orders or contracts for projects previously approved by the Board. h. To approve and sign changes under contracts previously approved by the Board and RUS if under $50,000. Those changes in excess of $50,000 are to be reported to the Board at the next Board meeting and all changes are to be approved by RUS if appropriate. i. To authorize individual memberships in civic clubs and organizations in which he/she thinks of him/herself or staff members would be beneficial and to authorize payment of dues by Alaska Village Electric Cooperative within the limitations of the budget. Professional registration fees will only be paid for registration in the State of Alaska, if such registration is desirable or required. j. To execute and delivery on behalf of Alaska Village Electric Cooperative agreements essential to the management of the Cooperative, such as affidavits, agreements, and leases to implement Board actions. k. To negotiate franchises and execute all petitions and documents in relation thereto; to acquire by purchase or lease all easements and power plant sites and execute, deliver and accept all documents relating thereto; to execute and deliver all environmental studies and reports; to make application for all permits relating to the operations of Alaska Village Electric Cooperative's design, route, and determine the site for all facilities. 2001.5 l. To perform all acts necessary or incidental to the management of the operations of Alaska Village Electric Cooperative, unless such acts are specifically reserved to the Board pursuant to law, and Articles of Incorporation, the By-Laws, or policies. 5. Controls a. Operations To submit periodic and special reports to the Board on conformity of operations with approved policies and programs; to recommend any revisions requiring Board approval and to direct any remedial action required. b. Finances To submit periodic and special financial reports to the Board to keep them informed of Alaska Village Electric Cooperative's financial position and conformance to financial plans and forecasts, and to see that all persons having access to cash or responsible for purchasing of materials are properly bonded in accordance with all requirements of the lending agencies. c. Budgets To report quarterly to the Board on revenues and expenditures compared to budget. To recommend any revisions required, and to direct any necessary remedial action. d. Annual Financial Audit To participate with the Board in the review, with the auditor present,. of the annual financial audit and management letter and to direct any remedial action required and to ensure that the management letter, along with the Audit Report, is sent to each Board member prior to the meeting at which they are to be discussed. e. Materials Management 1. To determine the amount of and establish proper control of all physical inventories to minimize investment in inventories needed to meet operating and construction needs. 2. To ensure that a system is established to accurately account for all materials used. f. Member Complaints To submit periodically to the Board an analysis of member complaints and to take any corrective action required or to recommend appropriate revisions in Board policy. g. Reliability of Service To submit annually to the Board a report on service reliability and any remedial action taken. h. By-Laws To report to the Board on annual review with the General Counsel of the By-Laws and to recommend any revisions required. i. Availability of Power Supply To report periodically to the Board on load growth compared to the power requirements studies and to recommend plans to meet anticipated growth to ensure an adequate and reliable supply for the members at the lowest possible cost consistent with sound business and management practices. 2001.6 j. Rates To continually study power and other costs compared to projections and to recommend to the Board, as far in advance as possible, any changes in retail electric rates necessary to maintain financial strength and stability and to meet all requirements of lending and regulatory agencies. k. Construction To review construction practices with appropriate staff to make sure projects are being constructed in accordance with RUS policies and procedures so that reimbursement for completed construction can be obtained promptly. l. Internal Auditing To independently assess the adequacy, effectiveness and efficiency of the system of control within the organization and the quality of ongoing operations against policies and procedures established by management and/or the Board, and rules of RUS and other lending institutions; as well as applicable federal, state and local laws. IV. RESPONSIBILITY A. The President and Chief Executive Officer shall report to the Board periodically on how these delegations are being carried out. The Chairman of the Board shall be kept appraised of all major issues on a regular basis between all Board Meetings. The President and Chief Executive Officer may make further delegations to his staff as required. B. The Board is responsible for approving any changes in the delegations to the President and Chief Executive Officer. C. The Chairman shall be responsible for seeing that the performance of the President and Chief Executive Officer is appraised prior to his/her anniversary date each year by the Executive Committee of the Board and that a report is made at a subsequent meeting to the full Board, on the results of such appraisal, and that the results of such appraisal are discussed with the President and Chief Executive Officer. Date Adopted: 3-23-92 Resolution #92-18 Date Revised: 5-05-00 Resolution #00-37 Date Reviewed: 05/23/08 Resolution #08-25 Tab E Additional Materials Table of Contents BETHEL POWER PLANT HEAT RECOVERY ...................................................................................................... 2 PRELIMINARY INSPECTION AND RECOMMENDATIONS ........................................................................... 2 Executive Summary ................................................................................................................................................ 2 Introduction ............................................................................................................................................................. 3 Project Background............................................................................................................................................. 3 Facility Summary ................................................................................................................................................ 3 Recommendations for detailed evaluations ........................................................................................................ 4 Efficiency .............................................................................................................................................................. 4 Repairs/Upgrades to Systems and Components ........................................................................................... 4 System Expansion ............................................................................................................................................... 5 Maintenance and Operability Improvements ................................................................................................. 6 Industry Standards and Code Compliance ..................................................................................................... 7 Provide Additional 20-Year Lifespan .............................................................................................................. 7 Economic Analysis of Applicable Modifications ............................................................................................ 7 Facility Description ................................................................................................................................................. 9 Facility Operation ................................................................................................................................................... 9 Conclusion ............................................................................................................................................................. 10 Photographic Record ............................................................................................................................................ 10 Appendix 1, Fee Proposal for Detailed Engineering Evaluations ...................................................................... 18 AVEC Bethel Heat Recovery Inspection and Recommendations To Steve Gilbert, AVEC Report Date August 22, 2014 From Walter K Heins, PE Inspection Date July 30, 2014 Subject Field Report Location Bethel, Alaska Project No. CEI #140632 Present at Site during Visit Lenny Welch, AVEC AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 2 of 18 (907) 276-6664 BETHEL POWER PLANT HEAT RECOVERY PRELIMINARY INSPECTION AND RECOMMENDATIONS EXECUTIVE SUMMARY AVEC engaged Coffman Engineers at its own expense to conduct an initial, high level investigation of the heat recovery system in Bethel. We found the AVEC Bethel power plant heat recovery system (“the system”) is currently functioning on a commercial scale serving several facilities. It provides heat, displacing fuel that community members would otherwise have to purchase at a higher cost than the recovered heat from the power plant. The system is reported to operate with minimal intervention and acceptable reliability. However, having operated for nearly 40 years without significant improvement or investment, the system needs improvement and repair in several areas. The most significant issues are: 1. Leakage from aged and corroded heat distribution pipes poses a risk not only to the community with the potential loss of heat but also to electrical generation in the power plant. 2. The system uses water in lieu of anti-freeze solution which presents a freezing risk, but changeover to anti- freeze is not possible with the system as is. 3. Expansion of the system has not kept pace with growth in the community and it could serve more facilities. 4. Metering of the heat recovery and utilization (BTU Meters) has failed and should be replaced to allow for optimization of the system. 5. The system is very near the end of its useful life. In this assessment we observed the external characteristics of the system and investigated the current operations through interviews with the operations manager, Mr. Lenny Welch. Pipes, equipment, and operating strategies were reviewed. Customer facilities were inspected at a very cursory level. A brief history of the heat utilization was discussed. The system provides a valuable benefit to the community of Bethel. Heat recovered at the power plant can displace fuel burned for heating businesses, and institutions. The resulting savings are meaningful in keeping money in the local economy as well as reducing consumer costs and fuel burning emissions. An expansion of the system would reduce the utility’s wasted heat and related expenses, such as operating radiator fans to dissipate the heat. AVEC funded this study in order to determine the scope and scale of further evaluations and to prioritize initial upgrades necessary to optimize the heat recovery system. Optimization would include enhancing operations, increasing life span, improving performance, and developing system expansion and overall economic viability. All of these are crucial to maximizing the benefits to the community of Bethel. This report will recommend detailed engineering evaluations of the system in order to proceed effectively on a path leading to optimization of the system and greater community benefits. Some optimization measures are self-evident; others may not be as clear. Based on a more thorough investigation, we will recommend proceeding with conceptual design documents (35% design). Other measures will become evident once the evaluations have concluded. For these we may recommend proceeding to more detailed design once the optimization path is clear. To evaluate corrosion, wear, and wall thickness of the off-site distribution piping we will offer two approaches. The best approach, 100% inline inspection, has significant advantages. The recommendations in this brief report require further, detailed evaluation to draw conclusions or to make informed decisions. It is our understanding that AVEC plans to apply for funding through the renewable energy fund to pay for these efforts. A detailed engineering evaluation of the system engineering, performance, configuration, operation, and expansion, or “Engineering Study”, is AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 3 of 18 (907) 276-6664 estimated to cost approximately $62,000. Engineering design on measures ready now are estimated at $94,000. A corrosion, wear, and wall thickness study of the mains will add $450,000. Attached to the end of this report is a detailed proposal for this work which will clearly present the options and recommendations. While it is expected that greater use of recovered heat from the power plant in Bethel would result in economic benefit to the community, the economics of the operation were not the subject of this current high level evaluation effort. Plant economics and market studies could have important benefits to business operations, but are not part of the Engineering Study and are not currently included in the proposal at the end of this report. INTRODUCTION Project Background The AVEC electrical power plant in Bethel, Alaska, formerly owned by Bethel Utility Company (BUC), is operated with a combined cooling and heat recovery system. The subject of this report is a preliminary inspection of the heat recovery system conducted by Coffman Engineers on July 30, 2014. Funded by AVEC, the purpose of the preliminary inspection was to gather information necessary to set the scope of detailed evaluations and upgrades to the heat recovery system. Coffman Engineers’ inspector, Walter K. Heins, PE, was accompanied on the inspection by AVEC Bethel power plant operator Mr. Lenny Welch. Mr. Welch has 40 years’ tenure at the plant and was instrumental to understanding the system. Based on observations during my site visit, this report will make the following recommendations:  Further, detailed evaluations:  Identify system improvements to increase efficiency and effectiveness,  Identify necessary repairs/upgrades to systems and components nearing the end of their useful life,  Identify potential new heat “off takers” to expand the use and benefit of the system (as applicable),  Identify improvements to maintenance and operability,  Identify updates to comply with current industry standards and applicable codes,  Identify improvements to provide for an additional 20 year life span,  Prepare an economic analysis of applicable modifications (benefit/cost).  Determine permitting and regulatory requirements impacting system expansion  Design upgrades for:  Generate as-built drawings, system flow diagrams, and P&IDs for the existing configurations,  Adding heat recovery and utilization metering,  Adding a heat exchanger isolating the plant from the off-site distribution,  Develop the standards for User hook-ups to be used for all new implementations leading to greater use of the system and more accurate monitoring and control. Recommendations are followed by brief description of the plant, its operations, and of conclusions made in this preliminary phase. A proposal for completing the recommendations is included at the end of this report. Facility Summary The Bethel generation plant consists of six, water-cooled diesel powered generators housed in a single building. The cooling water (heated by the engines) is routed through the heat recovery system and then to heat rejection fin-fans (radiators). The heat recovery system is a network of piping that distributes the hot water to several nearby commercial and institutional buildings (Users) for domestic heating. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 4 of 18 (907) 276-6664 RECOMMENDATIONS FOR DETAILED EVALUATIONS Efficiency The AVEC heat recovery system is inherently efficient due to its simplistic nature. All heat rejected to the diesel engine water jackets is available to the heat recovery system. A detailed evaluation would look closely at the efficiency of the water pumps, in-plant heat losses, distribution pipe insulation, piping design (size, material, routing, and etc.), piping interior condition (roughness, open bore, and etc.), User heat exchanger design, and BTU (heat) metering capabilities. Optimum water temperature for the diesel prime movers should be evaluated. Under most current operating conditions, excess heat must still be rejected to atmosphere. If heating demand by users were to increases, additional effectiveness of the heat recovery system would be needed to raise the net output of the heat recovery system. A detailed evaluation should look closely at effectiveness increases by adding exhaust gas heat scavenging. This was included in the original system but later abandoned due to failures caused by long-term disuse. Repairs/Upgrades to Systems and Components Attributable to good maintenance, the systems and major components inside the plant exhibit stable condition with considerable life remaining. However, the distribution piping has obvious deficiencies. A detailed evaluation should look closely at the state of wall thickness and corrosion, alignment, fittings, and insulation on all sections of the distribution piping.  Corrosion in the piping system has compromised its strength and elevated the risk of leaks or catastrophic failure. Testing is necessary to determine the remaining pipe wall thickness throughout the pipeline. A preventive maintenance plan and replacement schedule would be developed based on the findings. A range of options and costs are available: 1. Superficial observations (obvious corrosion noted, catalogued, and repaired). Wall thickness could be spot-checked. This survey has the least cost and provides a short list of the most egregiously corroded areas. 2. Ultrasonic Testing (UT) of 100% of the pipeline using an inline inspection tool (“Pig”). This survey produces the most accurate, thorough, and useful results. The pipeline would be shut down (presumably in summer) in order to conduct this testing. The pig would measure the pipeline mains. Short 4” branches to individual Users would not warrant the expense of UT. While this test may miss a pin-hole (typical to bacterial corrosion) it would reliably determine the wall thickness throughout the pipeline. 3. Observations based on potential detected by X-Ray surveillance was evaluated but dropped from the recommendations due to cost. Its only advantage is that it can be done while the pipeline is in service. This survey provides a “high potential” list of corroded locations. Suspect areas detected by the X-Ray tool would have insulation removed for further wall thickness measurement.  Alignment continually changes as pipe supports jack and settle in the soil. This creates stresses in the pipeline with leak and breakage potential. Pipe support design should be evaluated to determine a more stable configuration for high-movement areas.  Expansion loop design should be evaluated to relieve stresses from thermal expansion and contraction.  Pipe supports and foundations should be evaluated to stabilize the seasonal movement described in the bullet points above.  The original mechanical (Victaulic) fittings no longer have their original resiliency. It was reported that movement of the pipe that is normal from alignment changes, heating and cooling stresses, or maintenance operations can allow new leaks to appear at old fittings. A detailed evaluation should AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 5 of 18 (907) 276-6664 look closely at replacement of the fittings, or at least replacement gaskets if new ones are compatible with the original fittings.  Original isolation valves are reportedly unable to close completely tight. This is a problem when a pipe section needs maintenance. A detailed evaluation should look closely at replacing valves either wholesale on a scheduled basis. Evaluation of the overall isolation strategy should also be reviewed to see if additional isolation locations are warranted.  Insulation is in various states of decay. Missing in some areas and damaged in others, insulation is in good condition in still other locations. A detailed evaluation should look closely at the insulation using thermal imaging thermography. An inventory of all insulation segments should be catalogued and evaluated for economic viability and estimated remaining useful life.  Pipe sizing for capacity growth should be considered whenever a section of distribution piping is replaced, or when evaluating the economics of a contemplated replacement.  Additional opportunities for systems and components improvements will be discussed i n other sections. System Expansion System expansion is an unqualified win-win. As AVEC wastes less heat, it optimizes its economic viability and ensures its stability in the community. As Bethel consumers utilize more recovered heat they burn less fuel. The reduced fuel consumption cuts air pollution in the community, reduces Bethel’s collective carbon footprint, and saves consumers money from their heating budgets. All of these cost savings result in more local dollars staying in the local economy. The system currently is under-subscribed by Users. Heat is routinely rejected to atmosphere in all weather conditions, although in previous years this was not always the case. Growth of the electrical demand in recent years has now given the power plant enough engines running to produce more heat than is needed by the connected Users. This is not to say that all the heat that could be collected is collected. Nor does it say that individual Users are optimized. It is almost certain that the system could sell more heat if it had more Users. A detailed evaluation of system expansion should look closely at both the maximum capacity of the heat collection end and the optimum subscription rate for the User end.  The heat collection could increase from the installation of new exhaust gas heat exchangers. These will scavenge heat from the hot exhaust and add it to the heat recovery water.  New User potential includes several unconnected or under-utilized facilities in the vicinity making User subscription and energy sales increases possible. A detailed evaluation should look closely at optimizing User heat exchanger design. All major new construction within a 1-mile radius of the plant should be evaluated for new User feasibility. Following is a list of potential facilities within this zone:  City Aquatic Center, a facility with energy intensiveness is about 800 yards away and quite close to the vocational school (see next bullet). This represents a significant year-round opportunity that is unconnected. It is our understanding this facility has an onsite 100 kW wind turbine which should be considered in evaluating the viability of serving this facility.  The Yuut Elitnaurviat (YE) vocational school currently has solar and wind generation capacities. It is about 800 yards away and quite close to the Aquatic Center (see previous bullet). It is our understanding that YE is also connected to wind and solar energy systems. An evaluation of the potential at this 501c (3) Corporation is warranted for its relevance, community importance, and heat utilization potential.  The US Post Office, about 400 yards away, is unconnected.  New YKHC Alcohol Treatment Center (PATC), in construction about 300 yards away, is unconnected.  New YKHC Pre-Maternal Center, in construction about 150 yards from an existing distribution heating main line, is unconnected. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 6 of 18 (907) 276-6664  New YKHC Long-Term Care building in construction is already planning to connect to the AVEC heat recovery system.  YKHC Shop/Storage building about 250 yards south of the plant is unconnected.  Although YKHC building 800 (residential apartment) is currently connected and subscribing to the AVEC heat recovery system, new and other existing YKHC housing units are potential subscribers. One housing tract across the street from the US Post Office could use a central heat exchanger and distribute hot glycol to each of 13 small housing units to displace potentially dangerous fuel oil heaters. Recently demolished YKHC housing units had been subscribers, so replacement facilities should be considered high potential subscribers.  Large Swanson’s shopping center across Chief Eddie Hoffman Highway from the Department of Corrections is close enough (500 yards from the plant and 250 yards from an existing heating distribution main) but technical, easement, or political barriers may make this a lower potential User.  Department of Corrections (DOC) expansion to the youth Correctional Center currently is utilizing the AVEC heat recovery system. The growth of facility raises the opportunity to optimize the User heat exchanger to suit the expanded needs.  The DOC adult Correctional Center User heat exchanger may not be optimized. It is reported that their boiler plant is too small causing DOC to rely heavily on the AVEC heat recovery system. Further study of their heat exchanger system is recommended.  The radio station KYUK was once on the AVEC heat recovery system but was disconnected due to distribution piping problems. It is about 200 yards from an existing distribution heating main line. This subscription potentially could be reinstated.  The new AVEC offices near KYUK are about 200 yards from an existing distribution heating main line.  Several buildings in the city center, including City offices, AC Store, and other commercial businesses are potential subscribers. The City was once a subscriber who disconnected. City center is within a few hundred yards of an existing distribution heating main line.  The water utility should be evaluated for its potential as a subscriber. Many cold-climate utilities pre-heat domestic water to a moderate temperature, say 50°F, as a freeze protection measure. This is also as an energy savings measure for water customers who save 10% - 30% on their water heating bills.  Raised outdoor walkways, trails, and 4-wheeler tracks where permafrost preservation is not an issue should be evaluated for snow and ice control.  In -floor radiant heating for elevated floors should be evaluated where permafrost preservation is not an issue.  Snow melt systems to reduce plowing and minimize dangerous ice is not likely to present many opportunities due to permafrost and ice-rich soils. Maintenance and Operability Improvements All system controls are manually operated, a condition that plant operators have mastered and have achieved consistent operation. However, a detailed evaluation should look closely at the possibility of adding alarm monitoring and make-up water/water pressure control automation. Both of these will help to optimize the operation, increase the reliability of the heat recovery system and the power plant in general. A design to separate the power plant from the outside heat distribution lines with a bank of heat exchangers should be evaluated. This could simplify the feed water system and improve maintenance and operability by allowing isolation of areas for service without impacting all areas. It would reduce risk and improve reliability by preventing a line failure in the heating distribution from shutting down generation the power plant. (See also the Industry Standards and Codes section of this report.) AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 7 of 18 (907) 276-6664 Cooling water is circulated continuously in the radiators with heat rejection capacity modulated by manually engaging radiator fans. A detailed evaluation should look closely at capacity control automation at the radiators. The original BUC heat recovery system implemented several shell-and-tube heat exchangers. These were removed several years ago reportedly due to a lack of understanding of their purpose as well as ongoing maintenance issues with them. A detailed evaluation should look closely at the record drawings of this system and reinstate the heat exchangers if found to be viable. Status monitoring of temperatures, pressures, flow rates, equipment operation, power output, BTU production and use, and other pertinent characteristics would allow managers to optimize the plant based on the evaluation of real time data. This would also enhance reliable operation. A detailed evaluation should look closely at the characteristic most beneficial to these goals. Industry Standards and Code Compliance Energy metering is an industry standard not utilized in the Bethel heat recovery system. Users are reportedly charged for heat by a formula based on the facility’s history and the monthly weather (heating degree days). Metering of the heat leaving the plant and consumed at each user should be a priority upgrade to the current system. This upgrade is valuable for management decisions, forecasting, as well as client billing. It was also reported that BTU meters (meters to measure the heat delivered to a User) have been unreliable in the past. A meter plan and design considering new robust and accurate BTU meters, AVEC and User benefits, in addition to code or state regulation, should start now and proceed throughout all future development/upgrades of the system. The industry standard design would include heat exchangers to separate the in-plant cooling water system from the off-site distribution and User system. Adding a central plant heat exchanger should be a priority upgrade to the current system. This upgrade is necessary for protecting the plant from a rapid loss of water that would shut down the power plant generators. A design should start now that would decouple the in-plant piping from off-site systems while accommodating future development and growth of the power plant. As it would from many other power plant upgrades, the community of Bethel benefits from this upgrade through improved reliability of electrical power in addition to the heat recovery reliability. Provide Additional 20-Year Lifespan Most of the items noted in the Repairs/Upgrades, Maintenance, and Standards and Codes sections above would add life to the AVEC heat recovery system. Perhaps the largest single risk of failure at this point is the distribution piping system. A detailed evaluation should look closely at the corrosion and mechanical couplings first, as these may be the largest risk to continued system operation. Economic Analysis of Applicable Modifications A detailed evaluation should look closely at the benefit/cost (B/C) ratio of any changes to the AVEC heat recovery system. This evaluation should be at minimum a simple payback ratio but more sophisticated life cycle cost (LCC) analysis would be preferred. AVEC should advise whoever conducts the economic analysis on the type of analysis AVEC finds most useful in its accounting, procurement, and long-range planning decisions. The State of Alaska Power Cost Equalization (PCE) program should also be considered in the economic analyses for impacts to the utility as well as on Users. Accuracy of the economic analysis will be compromised by lack of data from heat collection and sales. All available records will be needed, but how well they represent the actual value of the heat remains to be seen. Metering of the heat should be a priority for economic optimization of the system. However, a brief examination of energy costs and power plant configuration reveals the following costs and benefits: AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 8 of 18 (907) 276-6664  Each generating unit can produce approximately 495,000 therms, or $3 million of heat per year based on the following statistics:  Assume only half of the heat can readily be utilized. If greater than half, the benefits above would increase proportionally.  Standard generating unit = 2.2 Megawatts.  Diesel generation is 40% thermal efficiency (fuel-to-wire)  Fuel cost of $6 per gallon (consumer price) at 140,000 BTU per gallon.  Therm cost at 70% efficient boilers = $6.12/therm. Based on the foregoing brief analysis and assuming an estimated year-long average of 2.4 concurrently operating units, the power plant could displace the burning of over 1.2 million gallons of fuel in consumer boilers with a fuel cost savings of over $7.2 million. If AVEC1 charged $3/therm (hypothetically half its retail value), the heat recovery system would facilitate retaining $7.2 million in the local economy annually while paying back $7.2 million for plant upgrades and improvements. The benefits/cost ratios of select measures described in this report can be calculated in rough terms at this time. Exhaust gas heat exchangers:  Benefit = $750,000 per year based on scavenging an additional 25% of the available heat per Unit.  Cost = $6 million ($1 million each)  B/C over 20 years = 2.5 UT Testing and scheduled maintenance of distribution piping:  Benefit = $7.2 million per year based keeping the system on line continuously for 20 years  Cost = $3 million first year (testing and critical repairs) and $750,000/year thereafter (scheduled repairs)  B/C over 20 years = 8.0 Determining an accurate B/C ratio is complicated by several issues;  That the system is currently in service  That it is running sub-optimally  That without evaluation its future is uncertain  and that there is no BTU metering on the main line. It is also likely that some measures would not be pertinent to LCC, B/C, or simple payback evaluations as they may have code, safety, and reliability related impetus that does not calculate well. These may be some of the most important modifications, so a holistic evaluation should look at importance as well as investment. Additionally, the condition of related components should be evaluated when recommending new work. For example, it would be shortsighted to install new insulation on a failing pipe or new piping on a failing pipe support. Associated repairs or upgrades should be included in any evaluations for cost and economic impacts of recommended work. 1 Hypothetical number for illustration of heating value only. This is not a presumption or su ggestion of AVEC pricing policy or business practices. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 9 of 18 (907) 276-6664 FACILITY DESCRIPTION The Bethel generation plant consists of six diesel prime movers, all EMD 16-645 E4D generators rated at 2.2MW each. The engine generators are cooled through a combined cooling and heat recovery system. The cooling system is directly connected to the heat recovery loop without an isolation heat exchanger. There are several large radiators to dissipate excess heat not used in the heat recovery loop. The cooling fluid is corrosion inhibited water with no glycol for freeze protection. The cooling/heat recovery is distributed through one continuous (distribution) piping system consisting of a 10” mainline with some 6” and 4” loops extending to the customer facilities (Users). The system consists of steel pipe with mechanical couplings, foam insulation, and metal jacketing. The piping is mounted above ground on steel pipe supports. Users have heat exchangers in their facilities to transfer the heat to their internal piping systems. The diesel prime movers are arranged in the center of the generator building. A separate room to the north houses four booster pumps, five expansion tanks, and one open make-up tank to hold a reserve quantity of cooling fluid. An arrangement of thermostatic valves and isolation valves diverts the fluid in whole or in part to the radiators. The distribution piping to the Users could be isolated at this point. The distribution piping is fabricated with mechanical (Victaulic™) couplings and valves. These have proven to last adequately although at least the gaskets are at the end of their useful life. Newer polymer gasket compounds are available that are more flexible under thermal stresses and that retain their watertight seal throughout the range of normal pipe movement. The steel pipe supports are built in a “Tee” configuration with 4” steel pipe uprights and steel cross- members. The height of the uprights varies as the pipeline passes over varied terrain. Frost jacking occurs at most uprights and many adjustments have been made over the years. Pipes are typically clamped to the cross-members although many rest in place by gravity. Pipe supports generally appeared in good condition. Corrosion may be an issue in certain locations but the supports observed on this inspection should have 20 years’ additional life potential. While frost jacking is a separate issue, the status of all the support uprights should be evaluated. Insulation condition was variable. Insulation tended to be intact on the straight run of pipe where protected by its steel jacketing. However, fittings, joints, and valves often were missing their protective jacket leaving the foam insulation exposed. At many exposed sections the insulation was eroded. At other exposed sections it was full-thickness, painted, and potentially sound. Rainwater intrusion through cracks and gaps in the exposed insulation has caused long-term corrosion damage as well as reducing the insulation value. FACILITY OPERATION Water heated in the prime movers is pumped at approximately 185°F and 32 PSI through the distribution system with two of the four 20 horsepower distribution pumps. Two pumps stand by in reserve. As the water returns it is diverted by a thermostatically controlled valve to the radiators as needed for additional cooling. As the water temperature rises and falls, fluid expansion and contraction is accommodated with the expansion tanks and make-up tank. Plant operators make regular observations and adjust the system to maintain the correct temperatures and pressures. Operators currently seek to maintain constant temperatures in the distribution pipeline to reduce changing thermal stresses on the old gaskets. As the water is pumped continuously (24/7/365) it loses heat in transmission or at the Users. The return water is diverted to the radiators automatically, and the radiator fans are energized manually based on operators’ observations of return water temperature. Water will be manually added/removed from/to the make-up tank in order to maintain the desired pressure. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 10 of 18 (907) 276-6664 Maintenance in the power plant appears to be competent and effective. The distribution system maintenance is in need of a more scheduled and proactive approach in order to maintain the value of system and new upgrades. While the power plant operating personnel are obviously capable of performing this maintenance, the recommendations that would come from this report and future evaluations are crucial to preserving the heat recovery system. CONCLUSION The AVEC Bethel power plant heat recovery system has a proven record of serving the community. It currently has unmet needs and promising potential to do even greater good for the community of Bethel. By developing the heat recovery system to its fullest, the system will:  Reliably continue in operation for 20 years and more,  Enhance the reliability of electrical generation at the power plant,  Better serve consumers and the community both economically and environmentally. Upgrades and other improvement measures show positive benefit/cost ratios and present good investment value. Certain measures are important and clear enough to start design now. Other measures, while important, should pass through additional study and evaluation in order to scope and prioritize them properly. PHOTOGRAPHIC RECORD AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 11 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 1. A typical diesel engine generator at the Bethel Power Plant. Piping on the far wall is for the heat recovery system. 2. Aerial view of Bethel Power Plant with heat recovery distribution system piping highlighted. 3. Heat recovery system distribution piping 4. Heat recovery system distribution piping (center) to a new YKHC facility in construction. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 12 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 5. Heat recovery system 10” distribution piping as it leaves the power plant. One of the horizontal radiators is visible on the right. 6. Heat recovery system distribution piping on a pipe support 7. Heat recovery system distribution piping on pipe supports 8. Pipe supports driven into the wet soil. Frost jacking is noted as an ongoing issue 9. Typical new mechanical coupling. 10. Typical old style mechanical coupling AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 13 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 11. Heat recovery system distribution piping on a pipe support with valves, tees, and branch loop visible. 12. Fitting on heat recovery system distribution piping with insulation eroding away. 13. Corrosion observed at a bare pipe section 14. Corrosion observed at a bare pipe section AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 14 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 15. Power plant building from northeast with radiator penthouse visible on the upper right. Note the four generator exhaust mufflers and stacks. 16. Opposite view of power plant building with generator and piping visible through the overhead door. Note the generator exhaust muffler and stack visible on the upper left 17. Cooling water system at the point where it exits the building to the heat recovery system distribution piping. 18. Cooling water system adjacent to view in photo #16. Note the water pumps. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 15 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 19. Cooling water system heat rejection radiators. View from inside penthouse. 20. Cooling water system heat rejection radiators. View from outside penthouse. Each opening has an overhead door that can be closed to reduce heat loss. 21. Make-up water tank 22. Make-up water tank open to atmosphere with level control floats visible on opposite side. AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 16 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 23. Cooling water tank on generator used by operators to determine water level. 24. Typical piping inside generator building. 25. Typical piping inside User heat exchanger room. Blue square item is the heat exchanger. 26. Typical piping inside User heat exchanger room. Blue square item is the heat exchanger. 27. View of failed flow meter once used for BTU metering. 28. Typical temperature sensor used for BTU meter AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 17 of 18 (907) 276-6664 PHOTOGRAPHIC RECORD 29. View of flow meter still in operation for BTU meter. 30. Typical temperature sensor used for BTU meter 31. Heat recovery User: UAF Cultural Center. 32. Heat recovery User: UAF Campus. 33. YKHC housing tract is a potential User. 34. New YKHC facility is a potential new User. End of Report AVEC Bethel Heat Recovery Field Report Inspection Date July 30, 2014 Coffman Engineers www.Coffman.com Page 18 of 18 (907) 276-6664 Appendix 1, Fee Proposal for Detailed Engineering Evaluations A detailed engineering evaluation of the subjects defined in the foregoing report by its nature would include certain clear cut technical engineering issues and economic analysis. Issues become less clear cut, however, when many issues are combined such as market analysis for new Users, reduced heat production costs, reduced maintenance costs, new efficiencies, enhanced capacities, regulatory and safety enhancements, and the effect of government subsidies. In short, the detailed engineering evaluation would be an estimate based on as much hard data as reasonably attainable but not everything needed to generate firm, fixed values for all factors. For example, it would be reasonably straightforward to estimate the cost of a new heat exchanger and the heat attainable from it, but the amount of that heat that can actually be sold would not be a straightforward estimate. The attached fee proposal is divided into two categories: engineering evaluation and corrosion study. One can be done without the other although there are economies of scale from doing both together. Both include options which may be exercised or excised at AVEC’s direction. The fees and rentals costs are reasonable estimates of the likely amount of effort involved. An accounting of all effort and expense would be available to AVEC if a cost-plus contract were entered into for this work. Engineering Evaluation Labor Effort $ 58,220 Travel Expenses $ 2,992 $61,212 Total Pipe Condition Study (UT Inspection) Labor Effort $ 67,400 Travel Expenses $ 7,733 Tools and Consultants $352,000 Freight Charges (estimate) $ 22,000 $449,133 Total Design and Drafting Labor Effort $ 88,030 Travel Expenses $ 6,022 $94,052 Total A spreadsheet with the fee proposal details follows this page. Bethel Power Plant Heat Recovery System Upgrades 35% Design Narrative Revision 1 Prepared For: Prepared By: CEI Project # 150792 August 20, 2015 AVEC Bethel Heat Recovery 35% Design Aug 20, 2015 Rev A Table of Contents Introduction ................................................................................................................................................................. 1 Purpose and Need .................................................................................................................................................. 1 Existing Conditions ................................................................................................................................................ 1 Power Plant.......................................................................................................................................................... 1 Heat Recovery System ....................................................................................................................................... 1 General Criteria ....................................................................................................................................................... 2 Civil/Geotechnical Design Narrative ...................................................................................................................... 3 Architectural Design Narrative ................................................................................................................................ 4 Structural Design Narrative ...................................................................................................................................... 4 Design Criteria and Loads ..................................................................................................................................... 4 National Design Codes ...................................................................................................................................... 4 Design Loads ....................................................................................................................................................... 4 Construction Methods ............................................................................................................................................ 5 Mechanical Design Narrative .................................................................................................................................... 5 Design Criteria ........................................................................................................................................................ 6 Design Conditions .................................................................................................................................................. 6 Equipment ............................................................................................................................................................... 6 Electrical Design Narrative ....................................................................................................................................... 7 National Design Codes ...................................................................................................................................... 7 Design Criteria ........................................................................................................................................................ 8 Design Conditions .................................................................................................................................................. 8 Systems ..................................................................................................................................................................... 9 AVEC Bethel Heat Recovery 35% Design Aug 20, 2015 Page 1 Rev A Introduction This design narrative encompasses a water-side heat exchanger project for the Bethel, Alaska, electric power plant which is owned and operated by Alaska Village Electric Cooperative (AVEC). The evaluation and 35% design is funded by a grant from the Alaska Energy Authority. A separate project for exhaust heat recovery utilizing an exhaust gas heat exchanger that will be compatible and complimentary to this project is in the evaluation and development stage. Exhaust heat recovery will be addressed in a future 35% submittal. PURPOSE AND NEED The Bethel power plant heat recovery system currently circulates hot water through a network of distribution pipes to customers near the power plant. The hot water is from the generator cooling system. In order to enhance the long-term benefits to the community of Bethel it is recommended that the generator cooling loop be isolated from the recovered heat distribution loop. Installation of new isolation heat exchangers and pumps will provide the physical isolation and will result in the following benefits:  Expansion of district heating opportunities.  Increased reliability of heat recovery and electrical generating systems;  Reduction of heat and power costs;  Reduction of air pollution;  Reduction of carbon footprint, and; EXISTING CONDITIONS Power Plant The Bethel generation plant consists of six EMD 16-645 E4D generator sets, each rated at 2.2MW. The diesel generator cooling system is directly connected to the heat recovery loop with no provision for an isolation heat exchanger in the system. Excess heat not used in the heat recovery loop is dissipated to atmosphere in a network of six radiators. Flow to the radiators is controlled by a thermostatic bypass valve. Radiator fans are manually staged based on operator observations of coolant return temperature at the generator inlets. The cooling fluid is corrosion inhibited water with no chemical freeze protection. As the water temperature rises and falls, fluid expansion and contraction is accommodated with five expansion tanks. Water from an open make-up tank is pumped into the coolant loop as needed. Plant operators make regular observations and adjust the system to maintain the correct pressures. Plant operators have demonstrated the ability to maintain reliable operations based on manual control strategies for many years. Continued use of manual controls is anticipated except in cases where function or efficiency require automation. Heat Recovery System The AVEC Bethel power plant heat recovery system is currently functioning on a commercial scale. Although it is not expanded to optimally serve the community, it is serving several facilities. The recovered heat distribution system consists of a network of approximately 10,000 linear feet of distribution piping between the diesel generator cooling system in the power plant and external customers including the hospital, prison, and the university campus. The mains are 10” diameter, with some 6” and 4” branch loops extending to customer facilities. The distribution piping is fabricated with mechanical (Victaulic™) couplings and valves. AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 2 Rev 1 Four (4) 20HP circulators (referred to as “booster pumps”), located within the power plant, are manually staged to maintain desired coolant return temperature. The booster pumps are piped in parallel with each other. Under typical conditions two pumps are operating, with two pumps in standby. As a group, the booster pumps are operating in series with the engine mounted coolant pumps. Parallel operation is possible by adjusting a manual butterfly valve on the pump suction header. If the temperature of the coolant as it returns from the heat recovery loop is higher than that desired at the engine inlet, a thermostatic 3-way valve (AMOT valve) diverts some flow to the radiators. Radiator fans are manually staged to ensure that the optimal coolant temperature is achieved at the engine inlet. Plant operators make regular observations and adjust the system to maintain the correct temperatures. GENERAL CRITERIA A primary premise of the project is to leave the systems within the power plant unaltered. The changes will all occur outside the power plant building. The isolation heat exchanger system will be housed in a separate building adjacent to the power plant, see Figure 1. Primary tie-in points to the existing heat recovery loop will be located outside of the building, which will allow for uninterrupted operation of electrical generating assets while work on the heat recovery loop is completed. Valving is in place to bypass the heat recovery distribution piping while the system upgrades are completed. No shutdown is anticipated. Figure 1: Heat Recovery Building – Proposed Location Both field erection and modular construction are being investigated for the optimal solution to implement the heat recovery loop upgrades. A preliminary cost study will be prepared to determine the likely cost impacts of the two approaches. The recommended alternative will be discussed in the next phase report. Field erection of the heat exchanger building allows the most flexibility in size, shape, and weight of the building. Shipping costs for materials will be minimized in this approach. Field erection will generate additional on-site construction activity whose potential impacts will be evaluated for compatibility with power plant operations. This approach will provide the highest level of local employment. Modular construction will help to minimize construction cost by allowing for shop fabrication offsite. Shop fabrication also allows closer quality control. It will minimize impacts to ongoing power plant operations. The building size may be below the threshold for economies of scale for shipping, a factor to consider when evaluating the economics of the modular construction option. AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 3 Rev 1 Regardless of the construction methodology, the heat exchanger building will be designed to control and dissipate the heat radiated by the large system components, including equipment and piping. Automated mechanical ventilation is an option that complements the minimal occupancy strategy for the building. Large (10’ x 10’) doors on at least two sides of the building will also allow passive ventilation. This technique would match the ventilation strategy provided throughout the power plant, including generator and radiator rooms. Heating the building is not expected to be necessary in winter, although one appropriately sized electric unit heater is being considered to provide a heat source if the heat recovery loop is shut down for any reason. Once isolated from the engine coolant system, the heat recovery system will no longer impact the reliability of generating assets. Based on Owner feedback, N+1 or similar redundancy is not required for the heat recovery system. The equipment selection and sizing is based on utilizing 80% of the peak available heat flow, based on current generator utilization levels. Room for expansion to recover an additional 40% capacity is built into the design. By designing the system with multiple heat exchangers and pumps, should any of these major components fail, the system will have the ability to continue operating at a reduced capacity. For further clarification of the design load calculations and methodology, see the Mechanical Design Narrative section of this report. Heat flow and energy (BTU) at the heat exchanger building will be metered to accuracy acceptable for AVEC’s management purposes. This metering, coupled with energy meters at the heat customers to be installed in a future phase will facilitate system optimization. The optimization includes performance monitoring, close matching of pump and flow to loads, heat customer troubleshooting, reduced energy waste, and maximized energy extraction from the engine cooling loop. Engine coolant heat flow and energy within the power plant is not currently metered. Due to the piping arrangement it is impractical to install BTU meters that capture total heat at the generator sets, or total heat removal at the radiator header. If BTU metering is desired in the future, operational or piping modifications may be recommended to simplify the engine coolant piping system and reduce the number of meters required. As previously mentioned, heat flow on the customer-side of the heat exchanger will be metered in the project covered by this report. Provisions will be included in the building and piping design to enable future connection of the exhaust heat recovery, creating a significant increase in recovered heat available for the community. Civil/Geotechnical Design Narrative The site suggests an arctic design that preserves permafrost under the building. Buildings in the near vicinity are typically elevated on pilings that allow cold air to circulate and decouples the heat in the building from the soil. The power plant building has a refrigerated foundation. The site slopes gently down from the power plant building, which is well accommodated with a pile foundation design. Soil conditions for weight bearing and foundation design will be evaluated by a geotechnical engineer as part of the final design effort. The site design will include an access point for installation and service of the heat exchanger building. A path for wheeled vehicles to approach the building currently exists; a new road will not be constructed. To facilitate building entry and mobility for servicing the heat exchanger system an exit with stairway will be included. AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 4 Rev 1 Architectural Design Narrative A code study will be performed to ensure that current International Building Code (IBC) requirements are met, including: occupancy type, allowable building area, separation from existing structures and fuel tanks, assembly fire ratings, egress, and other IBC driven building attributes. The anticipated building size is approximately 800 square feet. The building size will accommodate current and anticipated future equipment as well as necessary maintenance access. Building type will be steel frame construction with insulated wall panels. Modular and onsite building construction will both be considered. Structural Design Narrative DESIGN CRITERIA AND LOADS National Design Codes International Building Code, 2009 as adopted by the State of Alaska. ASCE7-05, Minimum Design Loads and Other Structures American Institute of Steel Construction American Welding Society, AWS D1.1, 2010 AISC 303, Code of Standard Practice for Steel Buildings Design Loads Dead Loads Heat Exchangers Self Weight (~7000LBS) Roof Live Loads NA Live Loads Floor 100PSF/2000LBS Snow Loads Ground Snow Load 40PSF Importance Factor, Is 1.00 Exposure Factor, Ce 1.00 Thermal Factor, Ct 1.00 Seismic Loads Analysis Procedure Equivalent Lateral Force Procedure Importance Factor, Ie 1.00 Site Spectral Response – Short, Ss 0.294g Site Spectral Response – Short, S1 0.094g Design Spectral Acceleration, SDS 0.306g Design Spectral Acceleration, SD1 0.150g AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 5 Rev 1 Site Class D Seismic Design Category C Wind Load Wind Speed, V 120MPH, 3 Sec Gust Exposure C Importance Factor, Iw 1.00 CONSTRUCTION METHODS Foundation The foundation for the proposed building will be steel piles capped with steel pile cap beams. A geotechnical investigation will be required to determine the installation method for the steel piles unless adequate data is available from recent projects in the near vicinity of the power plant. The steel piles will either be vibratory driven or drilled and set with a sand slurry. The geotechnical investigation will also determine whether thermopiles (passively cooled piles) or other options will be required. Recovered Heat Building Framing Building construction by field erection or modular construction will be selected for the best value according to a cost study after the 35% phase. The two methods were discussed on page 2 of this report. A prefabricated metal structure was also considered for the building. The prefabricated metal building option was not proposed due to a number of issues:  Prefabricated metal buildings are typically constructed onsite, not offsite and then shipped to the final location.  Prefabricated metal building fabricators typically will not design the floor system for their buildings. Finding a fabricator to provide the services required could be difficult.  Prefabricated metal buildings typically focus on larger buildings and an 800 square foot building is on the small side for them.  The structural framing in prefabricated metal buildings is not ideal for hanging pipes and other equipment which would require additional customization. Should modular construction be selected, the building will likely need to be fabricated as two or more modules for transportation. The modules will be transported to the job site and mated together onsite. The lateral load resisting system for the building will be steel moment frames. Hollow structural steel (HSS) members will be used to construct the moment frames and secondary members will be wide flange beams and channels. The building will be sheathed in insulated panels. Should the building size or the desire to fabricate offsite and ship to the jobsite change, a pre- fabricated metal building or a field erected building will be re-examined. Mechanical Design Narrative The design is based on total heat exchanger capacity sized to match 80% of the peak electrical load, i.e. (2) heat exchangers, each at 40% of peak load. The hot side of the heat exchanger will be fed from the existing engine cooling loop in the power plant. AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 6 Rev 1 DESIGN CRITERIA Variable Value Units Source Peak Electrical Load 7.4 Megawatts-elec AVEC Genset Efficiency 13.75 kW-hr/gallon AVEC Jacket Heat Available 1.0 kW-thermal / kW-electric Assumption Design Jacket Water Supply Temp 186 oF AVEC Design Jacket Water Return Temp 168 oF AVEC Design water Jacket Flow Rage 850 Gallon/Minute AVEC Min. Recovered Heat Supply Temp 180 oF Assumption Min. Recovered Heat Return Temp 160 oF Assumption Total Heat Exchanger Design Capacity 80 % of peak load AVEC # of Heat Exchangers 2 AVEC # of Pumps 2 Assumption DESIGN CONDITIONS The design criteria listed above will guide the equipment sizing and selection for the project. The following section summarizes the design conditions and methodology used to determine primary equipment sizing. Peak load is 7.4 MW-electric. Available recovered heat from the cooling water is assumed to be equivalent to the coincident electrical load, i.e. 7.4 MW-thermal (peak). The assumption is consistent with water jacket information that is available from operating records. The accuracy of this calculation could be improved if the heat rate of the engines were known to a greater degree of accuracy. This calculation will be refined in the next phase. Design load is 80% of peak: 5.92 MW-thermal, or 20.2 MMBTU/Hr. Each heat exchanger is sized at 50% of the design load, or 10 MMBTU/Hr. Expandability of the heat exchangers will be evaluated in the next phase. Pumps are sized based on the heat exchanger flow rates that result in the optimum heat recovery loop supply temperature. This information is provided by the heat exchanger manufacturer or engineering support team. The approach temperature (hot inlet vs. cold outlet) for this application is 1 - 2 °F at design conditions. EQUIPMENT Heat exchangers: Plate and frame heat exchangers are recommended for this service. The benefits of plate and frame heat exchangers typically include reliable service, small footprint, expandability, and excellent heat transfer characteristics, resulting in a low approach temperature. In this application, a low approach temperature is highly desired in order to get the highest quality recovered heat to customers (at as high a temperature as possible). Gaskets in a plate and frame heat exchanger may need to be replaced during the asset lifetime. This maintenance can be accomplished in place. Pumps: There are several types of pumps that could be a good fit for this application, including base mounted – end suction, close coupled, and vertical inline. End suction pumps will likely provide the AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 7 Rev 1 highest efficiency and therefore minimize long-term operating costs. Pump efficiency may also impact the motor size and associated electrical design elements including breakers and conductors. 3-way valve: A thermostatically controlled modulating 3-way valve (AMOT valve) will be used to ensure that the water temperature returning to the generator sets does not drop below the desired setpoint (172oF). The 3-way valve will bypass flow around the heat recovery system heat exchangers as needed to maintain a minimum return temperature of 172oF. Energy Meter: An energy (BTU) meter will be installed on the recovered heat system and will record the total energy input to the recovered heat distribution network. Air Separator: A combination air-dirt separator will be provided for the heat recovery loop. Ventilation and Cooling: The heat recovery building will include passive and active ventilation. The passive ventilation will consist of two large roll-up doors. The active system will include a thermostatically controlled exhaust fan and makeup air opening. Both the exhaust and makeup air openings will be equipped with motorized dampers that will open on a call for cooling. Maximum anticipated air exchange rate is 6 air changes per hour. Continuous mechanical ventilation per the International Mechanical Code is not required by for occupant health and safety as the space is normally unoccupied. Air conditioning is not anticipated. Heating: The heat recovery building will include heat via one or more fan-powered electric unit heaters. The unit heater(s) will be sized to maintain approximately 60oF in the building. Expansion Tanks: Existing expansion tanks will remain in their current locations and will be repurposed to provide the volume required to accommodate both the engine coolant system and the heat recovery system. Of the five existing tanks, it is anticipated that the three larger tanks will be manifolded and piped to the heat recovery system. The two smaller tanks will be manifolded and reconnected to the engine coolant system. Makeup Water Tank: Makeup water will be provided by the existing tank located in the power plant. Valving and piping will be added to enable the single tank to fill either the engine coolant loop or the heat recovery loop as needed. VFD Control: Operating the pumps with variable speed control based on return water temperature will allow pumps to run at reduced power. At Bethel utility rates, the avoided cost of excess pumping power is significant and attractive to explore more fully. A design incorporating VFD into the pump control may also simplify the electrical design, as the VFDs have starting relays, H-O-A switches, programmable logic controllers, and bypass built into them. Electrical Design Narrative The plant currently has minimal automation and the owners and staff are comfortable continuing operations under a primarily manual adjustment operating philosophy. National Design Codes National Fire Protection Association (NFPA) NFPA 70 National Electric Code NFPA 780 Standards of Installation of Lightning Protection American National Standards Institute (ANSI) National Electrical Manufacturers Association (NEMA) National Electrical Safety Code (NESC) AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 8 Rev 1 Illumination Engineering Society of North America (IESNA), Lighting Handbook 10th Edition DESIGN CRITERIA Variable Value Units Source Distribution Voltage 2400 Volts AVEC Motor Control Voltage 120/208, 3 Volts, Phase AVEC Available Motor Control Capacity 600 Amps Assumption Available Motor Control Spares 4 AVEC Number of Motors 2 2 with one future Assumption DESIGN CONDITIONS The design criteria listed above will allocate resources available for new equipment and retrofit. The following section outlines current conditions. Six diesel generators, housed in a generator room, output delta 2400V, which is then stepped down to wye 208/120V by way of a three phase transformer. The feed is then sent to the switchboard and various panels. The Plant has one electrical room, situated adjacent to the generator containment area. All electrical equipment, with the exception of remote power panels, is contained within this room. Current equipment includes a 2000A GE Switchboard and 1200A Motor Control Center (MCC) with 600A spare capacity in two buckets, two power panels, a generator alarm panel, several sections of switchgear, and supporting ancillary minor equipment. There are no spares available for use by motors or other powered equipment on any panelboard, remote or local to the electrical room. The MCC has four spare cubicles, some as unprepared space, and some with abandoned motor starters or feeder breakers. There are currently five cubicles allocated to existing 20HP circulation pumps, which will likely be decommissioned. The motors required for the new pumps will be greater than 20HP, and the existing circulation pump motor starters may be retrofitted to accommodate the larger pumps. The MCC and switchgear are 1960 vintage and it is not possible to buy current replacement parts for them from the original manufacturer. Alternate supply sources are being investigated. There is existing 300V cable tray running from the electrical room, through the generator room, and into the pump room, which is located on the opposite side of the building. There is spare room in this tray for additions. There is also existing 2400V tray, but it is not anticipated this tray will be utilized. An existing pipe rack runs from the pump room into the field for eventual heat recovery customer connections. This pipe rack can accept electrical conduit from the pump room to the new heat exchanger module. A 480 volt supply option is also possible with feed coming from the transfer switch building adjacent to the southeast corner of the generator building. This option would have a single outdoor feed to the heat exchanger building, one meter for the building, and a 480/208V step-down transformer. This option will be developed in the 65% DD phase and, if the preferred approach, will replace the MCC approach. The power plant is located in an area without hazardous classification. AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 9 Rev 1 SYSTEMS New electrical equipment and retrofits of existing equipment will be required to support new mechanical equipment. Power Distribution: Motor control center cubicles currently allocated for the circulation pumps shall be retrofitted for the new pumps and a spare cubicle be retrofitted for the feeder breaker. The buckets that go inside the cubicles can be built to order and shipped to the Plant. Feeder breakers with lockout capability will be required, as the pump motors will be controlled by local variable frequency drives (VFDs) rather than traditional motors starters located in the motor control center. A lockable feeder breaker for a new power panel will also be required. Hand-Off-Auto switches will be provided at the motor either in the form of a stand-alone local switch, or as part of the VFD cabinet and wiring. Local motor disconnect switches will also be provided at the motor location either in the form of a stand-alone enclosure, or as part of the VFD cabinet and wiring. A new power panel will be required in the heat exchanger module. It will receive power from the existing motor control center at the utilization voltage of 208/120V. Several preliminary loads have been identified in the new module that will require 208/120V power, including but not limited to lighting, VFD control power, emergency systems, instrument power, and heat tracing power. The power panel will have 25% spare breakers to allow for future expansion. Wiring throughout the new module and the feeder system to the module will be copper conductors with XHHW insulation, routed in EMT conduit or aluminum ladder-style cable tray. Existing 300V ladder-style cable tray will be utilized within the electrical room, generator room, and pump room where possible. Power feeders from the power plant building to the heat exchanger module shall be routed via pipe rack in EMT conduit. Control/Instrumentation/Metering: VFDs are recommended for the new pumps. Although the plant philosophy is to limit automation, the VFDs will offer cost savings by more closely regulating the water temperature to a desired setpoint than is possible by human operators. This will be accomplished by inputting analog temperature signals from instruments on the pipeline into the VFDs. The VFD programming contains PID control and uses the analog signal to regulate pump speed. The VFDs will be located outside of the motor control center, near the motors in the heat exchanger module and fed from the existing motor control center. Power for the entire heat recovery system will be measured for AVEC’s use. Power metering will be installed on the motor control center door of every new pump, as well as on the door of the panelboard feeder breaker. Local power measurements will be available from the VFDs as part of their regular programming. BTU Meters are required so the Plant can accurately monitor the amount of thermal energy consumed by heat recovery commercial customers. The client will provide the type of BTU meter desired and location will be determined by Coffman. Power for the BTU meters will come from the module panelboard. In the future BTU meters will be added at each customer’s connection point, but are out of scope for this project. Lighting: Exterior lighting around the module shall be provided for safety and security and consist of building mounted LED fixtures. Exterior lighting shall be controlled by photo-sensors, turning on when lighting levels are low and off with sufficient daylight. Illumination levels shall be set according to the IESNA Lighting Handbook. Interior lighting shall consist of low maintenance, energy efficient LED fixtures. Lighting control will shall consist of standard switches. AVEC Bethel Heat Recovery 35% Design Aug 14, 2015 Page 10 Rev 1 Telecommunications and Data Systems: There are no telecommunications or data systems for this project. Grounding and Lightning: Grounding for the system will consist of a buried grounding ring around the module (if possible with permafrost) with connections to the electrical system per NEC requirements. Where possible, the grounding system will be integrated with existing grounding systems. Cable size for the grounding ring and taps to building steel shall be #4/0AWG. A lightning protection system designed per NFPA 780 shall be provided for the facility and tied into the grounding system. Specialty Systems: Electric heat trace is anticipated for all outdoor piping that would not have continuous flow during normal operations, including makeup water and expansion tank connections. Heat recovery loop piping will have continuous flow under all normal operating conditions and will not be heat traced. Emergency lighting and signage for the module shall be provided in the unlikely event of power loss. Internal battery packs will provide necessary power for emergency equipment; back-up battery time will be 30 minutes. Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 G1 HEAT RECOVERY SYSTEM UPGRADES BETHEL POWER PLANT 35% DESIGN Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 M4 Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 M5 Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 M7 Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 E1 Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 E2 Anchorage, Alaska 995034831 Eagle StreetBETHEL A Aug 14, 2015 E3 Bethel Power Plant Heat Recovery System Upgrades 65% Design Narrative Prepared For: Prepared By: CEI Project # 150857 September 10, 2015 Revision C – Issued for Review AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 1 Rev C TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ........................................................................................................................................ 2  2. INTRODUCTION ..................................................................................................................................................... 2  Purpose and Need ..................................................................................................................................................... 2  Existing Conditions .................................................................................................................................................. 3  Power Plant ............................................................................................................................................................ 3  Heat Recovery System ........................................................................................................................................... 3  General Criteria ........................................................................................................................................................ 3  3. CIVIL/GEOTECHNICAL NARRATIVE ................................................................................................................. 5  4. ARCHITECTURAL DESIGN NARRATIVE ........................................................................................................... 5  Design Criteria ......................................................................................................................................................... 5  Design Codes ......................................................................................................................................................... 5  Project Overview ................................................................................................................................................... 5  Fire Rating ............................................................................................................................................................. 6  Means of Egress ..................................................................................................................................................... 6  5. STRUCTURAL DESIGN NARRATIVE .................................................................................................................. 6  Design Criteria and Loads ........................................................................................................................................ 6  Design Codes ......................................................................................................................................................... 6  Design Loads ......................................................................................................................................................... 6  Construction Methods .............................................................................................................................................. 7  6. MECHANICAL DESIGN NARRATIVE ................................................................................................................. 8  Design Criteria and Loads ........................................................................................................................................ 8  Design Codes ......................................................................................................................................................... 8  Design Criteria ....................................................................................................................................................... 8  Design Conditions .................................................................................................................................................... 9  Expansion ................................................................................................................................................................. 9  Equipment .............................................................................................................................................................. 10  7. ELECTRICAL DESIGN NARRATIVE .................................................................................................................. 11  Design Criteria and Codes ...................................................................................................................................... 11  Design Codes ....................................................................................................................................................... 11  Design Criteria ..................................................................................................................................................... 11  Design Conditions .................................................................................................................................................. 11  Systems .................................................................................................................................................................. 12  AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 2 Rev C 1. EXECUTIVE SUMMARY The Bethel electric power plant, owned and operated by Alaska Village Electric Cooperative (AVEC), has a heat recovery system used to provide heat to customers within the community. Currently the system is operating at less than optimal levels. Various enhancements to bring greater benefits to the community of Bethel are currently in the evaluation and design phase. An isolation heat exchanger on the generator cooling system is the primary interest of this design narrative. The isolation heat exchanger will provide several benefits for the community including new customer service, system expansion, reduced fuel consumption, and increased reliability of both heat and power. The projected cost of the isolation heat exchanger project is approximately $2,400,000. 2. INTRODUCTION This design narrative encompasses a water-side heat exchanger project for the Bethel, Alaska, electric power plant which is owned and operated by the Alaska Village Electric Cooperative (AVEC). The project was given initial consideration in an August 22, 2014 report entitled, “AVEC Bethel Heat Recovery Inspection and Recommendations”. AVEC has engaged Coffman Engineers at its own expense to develop a 65% design for further evaluation of the project’s feasibility with respect to benefits and costs. A key element of the 65% design is to quantify construction costs for the project and to determine the basic building configuration, equipment and location and access requirements for the module. In July, 2015, a grant from the Alaska Energy Authority - Renewable Energy Fund (AEA - REF) Round 8 became available for further evaluation and initial design (35%) of the heat recovery system at AVEC’s Bethel operation. Coffman completed the evaluation and initial 35% design for the water- side heat exchanger on August 20, 2015. Other work authorized by the Round 8 grant is progressing concurrently with this water-side heat exchanger design. PURPOSE AND NEED The Bethel power plant heat recovery system currently circulates hot water through a network of distribution pipes to customers near the power plant. The hot water is from the generator cooling system. In order to enhance the long-term benefits to the community of Bethel, it is recommended that the generator cooling loop be isolated from the recovered heat distribution loop. Installation of new isolation heat exchangers and pumps will provide the physical isolation and will result in the following benefits:  Expansion of district heating opportunities;  Increased reliability of heat recovery and electrical generating systems;  Reduction of heat and power costs;  Reduction of air pollution;  Reduction of carbon footprint. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 3 Rev C EXISTING CONDITIONS Power Plant The Bethel generation plant consists of six EMD 16-645 E4D reciprocating diesel generator sets, each rated at 2.2MW. Engines are manually started, synchronized and loaded. The diesel generator cooling system is directly connected to the heat recovery loop with no provision for an isolation heat exchanger in the system. Excess heat not used in the heat recovery loop is dissipated to atmosphere in a network of six radiators. Flow to the radiators is controlled by a thermostatic bypass valve. Radiator fans are manually staged based on operator observations of coolant return temperature at the generator inlets. The cooling fluid is corrosion inhibited water with no chemical freeze protection. As the water temperature rises and falls, fluid expansion and contraction is accommodated with five expansion tanks. Water from an open make-up tank is pumped into the coolant loop as needed. Plant operators make regular observations and manually adjust the system to maintain the correct pressures. Plant operators have demonstrated the ability to maintain reliable operations based on manual control strategies for many years. Continued use of manual controls is anticipated except in cases where function or efficiency require automation. Heat Recovery System The AVEC Bethel power plant heat recovery system is currently functioning on a commercial scale. Although it is not expanded to optimally serve the community, it is serving several facilities. The recovered heat distribution system consists of a network of approximately 10,000 linear feet of distribution piping between the diesel generator cooling system in the power plant and external customers including the hospital, prison, and the university campus. The mains are 10” diameter, with branch loops up to 8” diameter extending to customer facilities. The distribution piping is fabricated with mechanical (Victaulic™) couplings and valves. Four (4) 20HP circulators (referred to as “booster pumps”), located within the power plant, are manually staged to maintain desired coolant return temperature. The booster pumps are piped in parallel with each other. Under typical conditions two pumps are operating, with two pumps in standby. As a group, the booster pumps are operating in series with the engine mounted coolant pumps. Parallel operation is possible by adjusting a manual butterfly valve on the pump suction header. If the temperature of the coolant as it returns from the heat recovery loop is higher than that desired at the engine inlet, a thermostatic 3-way valve (AMOT valve) diverts some flow to the radiators. Radiator fans are manually staged to ensure that the optimal coolant temperature is achieved at the engine inlet. Plant operators make regular observations and adjust the system to maintain the correct temperatures. GENERAL CRITERIA A primary premise of the project is to leave the systems within the power plant unaltered. Nearly all changes will occur outside the power plant building. This should allow for a cheaper installation, more flexibility of outdoor construction (not having to open up power plant walls during undesirable weather) and reduced risk of plant impacts during construction. The isolation heat exchanger system will be housed in a separate building adjacent to the power plant, see Figure 1. Primary tie-in points to the existing heat recovery loop will be located outside of the building, which will allow for uninterrupted operation of electrical generating assets while work on the heat recovery loop is completed. Valving is in place to bypass the heat recovery distribution piping while the system upgrades are completed. No shutdown is anticipated to accommodate the piping upgrades. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 4 Rev C Figure 1: Heat Recovery Building – Proposed Location Both field erection and modular construction were investigated for the optimal solution to implement the heat recovery loop upgrades. A preliminary cost study prepared to determine the likely cost impacts of the two approaches favored the modular approach. Modular construction will help to minimize construction cost by allowing for shop fabrication offsite. It provides for a more convenient scheduling of work, and minimizes the remote workforce housing penalty. Shop fabrication also allows closer quality control and will minimize impacts to ongoing power plant operations. The building size may be below the threshold for economies of scale for shipping, but the other factors counteract the shipping penalty. The heat exchanger building will be designed to control and dissipate the heat radiated by the large system components, including equipment and piping. Automated mechanical ventilation complements the minimal occupancy strategy for the building. Large (8’ x 10’) doors, useful for maintenance operations, will also allow passive ventilation. This technique would match the ventilation strategy provided throughout the power plant, including generator and radiator rooms. An appropriately sized electric unit heater is being considered to provide a heat source if the heat recovery loop is shut down for any reason. Once isolated from the engine coolant system, the heat recovery system will no longer impact the reliability of generating assets. Based on Owner feedback, N+1 or similar redundancy is not required for the heat recovery system. The equipment selection and sizing is based on utilizing 80% of the peak available heat flow, based on current generator utilization levels. Room for expansion to recover an additional 40% capacity is built into the design. By designing the system with multiple heat exchangers and pumps, should any of these major components fail, the system will have the ability to continue operating at a reduced capacity. For further clarification of the design load calculations and methodology, see the Mechanical Design Narrative section of this report. Heat flow and energy in British Thermal Units (BTU) at the heat exchanger building will be metered to accuracy acceptable for AVEC’s management purposes. This metering, coupled with energy meters at the heat customer connection (to be installed in a future phase) will facilitate system optimization. The optimization includes performance monitoring, close matching of pump and flow to loads, heat customer troubleshooting, reduced energy waste, and maximized energy extraction from the engine cooling loop. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 5 Rev C Engine coolant heat flow and energy within the power plant is not currently metered. Due to the piping arrangement it is impractical to install BTU meters that capture total heat at the generator sets, or total heat removal at the radiator header. If BTU metering is desired in the future, operational or piping modifications may be recommended to simplify the engine coolant piping system and reduce the number of meters required. As previously mentioned, heat flow on the customer-side of the heat exchanger will be metered in the project covered by this report. Provisions will be included in the building and piping design to enable future connection of the exhaust heat recovery system, creating a significant increase in recovered heat available for community buildings not currently connected to the system. 3. CIVIL/GEOTECHNICAL NARRATIVE The site suggests an arctic design that preserves permafrost under the building. Buildings in the near vicinity are typically elevated on pilings that allow cold air to circulate and decouples the heat in the building from the soil. The power plant building has a refrigerated foundation. The site slopes gently down from the power plant building, which is well accommodated with a pile foundation design. Soil conditions for weight bearing and foundation design will be evaluated by a geotechnical engineer as part of the final design effort. Currently, the preliminary design assumes typical permafrost conditions and a steel pile foundation. More site specific information will be gathered during final design and specific design considerations will be modified as required. The site design will include an access point for installation and service of the heat exchanger building. A path for wheeled vehicles to approach the building currently exists; while a new road will not be constructed, the existing ground for a loader approach area 32’x20’ will be stripped of organics, backfilled with a minimum of 6” of non frost susceptible gravel, and graded. To facilitate building entry and mobility for servicing the heat exchanger system, an exit with stairway will be included. Prior to final design, a design survey will be performed to provide building and equipment locations, property boundaries, and topographic information. 4. ARCHITECTURAL DESIGN NARRATIVE A code study has been performed to ensure that current International Building Code (IBC) requirements are met, including: occupancy type, allowable building area, separation from existing structures and fuel tanks, assembly fire ratings, egress, and other IBC driven building attributes. DESIGN CRITERIA Design Codes International Building Code (IBC), 2009 as adopted by the State of Alaska International Fire Code (IFC), 2009 as adopted by the State of Alaska Project Overview Gross Area – 768 SQFT Occupancy – U, Utility Construction Type – Type V B AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 6 Rev C Fire Rating Interior Building Element Fire Ratings – 0 hrs Exterior Wall Fire Ratings Separation distance less than 10 feet – 1 hrs Separation distance equal to or greater than 10 feet – 0 hrs Means of Egress Number of Exits Provided – 1 Egress Width – 42” Exit Access – Less Than 100’ Exit Access Travel Distance – Less Than 300’ 5. STRUCTURAL DESIGN NARRATIVE DESIGN CRITERIA AND LOADS Applicable AVEC site specific information and requirements Design Codes International Building Code (IBC), 2009 as adopted by the State of Alaska American Society of Civil Engineers (ASCE) 7-05, Minimum Design Loads and Other Structures American Institute of Steel Construction (AISC) AISC 303, Code of Standard Practice for Steel Buildings American Welding Society (AWS) D1.1, 2010 Design Loads Dead Loads Heat Exchangers 7270 LBS Pumps 1840 LBS Air Separator 800 LBS Roof Live Loads NA Live Loads Floor 100PSF/2000LBS Snow Loads Ground Snow Load 40PSF Importance Factor, Is 1.00 Exposure Factor, Ce 1.00 Thermal Factor, Ct 1.00 AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 7 Rev C Seismic Loads Analysis Procedure Equivalent Lateral Force Procedure Importance Factor, Ie 1.00 Site Spectral Response – Short, Ss 0.294g Site Spectral Response – Short, S1 0.094g Design Spectral Acceleration, SDS 0.306g Design Spectral Acceleration, SD1 0.150g Site Class D Seismic Design Category C Wind Load Wind Speed, V 120MPH, 3 Sec Gust Exposure C Importance Factor, Iw 1.00 Transportation Loads Module must be designed to resist the loads imparted on it due to lifting, truck and barge travel. CONSTRUCTION METHODS Foundation The foundation for the proposed building will be braced steel piles capped with steel pile cap beams. A geotechnical investigation will be performed to determine the site specific installation method for the steel piles unless adequate data is available from recent projects in the near vicinity of the power plant. The steel piles will either be vibratory driven or drilled and set with a sand slurry. The geotechnical investigation will also determine whether thermopiles (passively cooled piles) or other options will be required. The catwalk and pipe supports will be steel piles. For the 65% design, it is assumed that the piles for the building, catwalk and pipe supports will not need to be passively cooled (i.e. thermosyphons not required). Heat Recovery Building Framing The heat exchanger building will be modular construction consisting of two 12’x32’ steel framed modules. The gravity load carrying system will consist of steel beams, purlins, joists and deck plate. The lateral force resisting system will consist of hollow structural steel (HSS) moment frames. The modules will be sheathed in insulated panels. The intent of the project is for the module to be constructed offsite (Anchorage fab shop) and then barged to Bethel for final installation. Final installation will consist of lifting and placing the modules on the steel foundation, stitching the two modules together and installing the final insulated panels. During fabrication it is intended that the interior piping and equipment will be installed and fully tested. All piping and equipment will need to be properly supported for all transportation loads. Catwalk The exterior catwalk will provide access to the main building. The catwalk will be supported on piles and consist of support beams and grating. Guardrails will be provided for safety. Pipe Supports AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 8 Rev C Exterior pipe supports will consist of steel piles and cross support beams. Final depth of piles will be based on the final geotechnical data. 6. MECHANICAL DESIGN NARRATIVE The design is based on total heat exchanger capacity sized to match 80% of the recoverable heat at peak electrical load, i.e. (2) heat exchangers, each at 40% of peak load. The hot side of the heat exchanger will be fed from the existing engine cooling loop in the power plant. DESIGN CRITERIA AND LOADS Applicable AVEC site specific information and requirements Design Codes International Mechanical Code (IMC), 2009 as adopted by the State of Alaska. American Society of Mechanical Engineers (ASME) Code for Process Piping, B31.3 Design Criteria Variable Value Units Source Peak Electrical Load 7.4 Megawatts-elec AVEC Genset Efficiency 13.75 kW-hr/gallon AVEC Jacket Heat Available 1.0 kW-thermal / kW-electric Coffman Design Jacket Water Supply Temp 186 oF AVEC Design Jacket Water Return Temp 168 oF AVEC Design water Jacket Flow Rate 850 Gallon/Minute AVEC Min. Recovered Heat Supply Temp 180 oF Coffman Min. Recovered Heat Return Temp 160 oF Coffman Total Heat Exchanger Design Capacity 80 % of peak load AVEC # of Heat Exchangers 2 AVEC # of Pumps 2 Coffman AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 9 Rev C DESIGN CONDITIONS The design criteria listed above will guide the equipment sizing and selection for the project. The following section summarizes the design conditions and methodology used to determine primary equipment sizing.  Peak power plant electrical load is 7.4 MW-electric.  Available recovered heat from the cooling water is closely equivalent to the coincident electrical load, i.e. 7.4 MW-Thermal (peak). This is consistent with water jacket information that is available from operating records. The accuracy of this calculation will be verified in the final design phase of this project.  Design load is 80% of peak: (7.4 x 80%) = 5.92 MW-Thermal, or 20.2 MMBTU/Hr.  Each heat exchanger is sized at 50% of the design load, or 10 MMBTU/Hr.  The peak energy resource available from the heat exchanger project is 20 MMBTU/Hr, expandable to 30 MMBTU/Hr when the power plant electrical load and community demand for heat exceeds the current design.  The average energy resource available, based on long-term power plant operating records is approximately 2.4 generators. This results in 2.2 MW-Thermal x 2.4 generators = 5.28 MW- Thermal, or 18 MMBTU/Hr. Pumps are sized based on the heat exchanger flow rates that result in the optimum heat recovery loop supply temperature. This information is provided by the heat exchanger manufacturer or engineering support team. The approach temperature (hot inlet vs. cold outlet) for this application is 1 - 2 °F at design conditions. EXPANSION The ability to accommodate future expansion of the recovered heat system to serve additional community facilities is a criteria of the heat recovery system design. The design will allow for (1) the expansion of the recovered heat distribution network, i.e. additional community heat customers, and (2) capture of additional engine heat within the power plant to increase quality and quantity of heat available for customers, and (3) allow integration of future stack heat recovery system. Space is reserved within the facility for an additional heat exchanger and distribution system pump, which enables increased flow rates and heat transfer should additional heat become available from the engine jacket water, i.e. increased electrical load on the generator sets. The piping headers within the heat recovery module will be designed for the future expansion – a 50% increase over current design flow. This method enables future expansion with minimal piping impacts while limiting major equipment (pumps, heat exchangers) capacity to serve the current needs. The design will include provisions to integrate exhaust gas heat recovery into the recovered heat system. Exhaust gas heat recovery piping will be designed to increase the recovered heat supply temperature rather than increasing the system flow rate. Therefore, recovered heat distribution system pumping capacity is not expected to require modification when stack gas heat recovery is added in the future. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 10 Rev C EQUIPMENT Heat exchangers: Plate and frame heat exchangers are recommended for this service. The benefits of plate and frame heat exchangers typically include reliable service, small footprint, expandability, and excellent heat transfer characteristics, resulting in a low approach temperature. In this application, a low approach temperature is highly desired in order to get the highest quality recovered heat to customers (at as high a temperature as possible). Plate and frame heat exchanger maintenance includes periodic flushing and frame tightening (annual checks), and gasket replacements (uncertain, but typically on a ten-year or longer cycle). This maintenance can be accomplished in place without removal of the heat exchanger. Pumps: Several types of pumps were evaluated for this application, including base mounted – end suction, close coupled, and vertical inline. End suction pumps were selected for the highest efficiency, therefore minimizing long-term operating costs. Pumps are selected for continuous duty at the design operating temperatures. 3-Way Valve: A motor operated modulating 3-way valve will be used to ensure that the engine cooling water temperature returning to the generator sets does not drop below the desired setpoint (168oF). The 3-way valve will bypass flow around the heat recovery system heat exchangers as needed to maintain a minimum return temperature of 168oF. Energy Meter: Energy (BTU) metering will be installed on the recovered heat system and will record the total energy extracted from the power plant engine cooling system. The energy meter consists of supply and return temperature sensors, a single flow measuring station, and a programmable logic controller (PLC). Air Separator: A combination air-dirt separator will be provided for the heat recovery loop, sized to handle future design flow including expansion to three pumps. Ventilation and Cooling: The heat recovery building will include passive and active ventilation. The passive ventilation will consist of roll-up doors on the side of the building. The active system will include a thermostatically controlled exhaust fan and makeup air opening. Both the exhaust and makeup air openings will be equipped with motorized dampers that will open on a call for cooling. Maximum anticipated air exchange rate is 6 air changes per hour. Continuous mechanical ventilation per the International Mechanical Code is not required for occupant health and safety as the space is normally unoccupied. Air conditioning is not anticipated. Heating: The heat recovery building will include heat via a fan-powered electric unit heater. The unit heater will be sized to maintain approximately 45oF for freeze protection in the building. Expansion Tanks: Existing expansion tanks will remain in their current locations and will be repurposed to provide the volume required to accommodate both the engine coolant system and the heat recovery system. Of the five existing tanks, it is anticipated that the three larger tanks will be manifolded and piped to the heat recovery system. The two smaller tanks will be manifolded and reconnected to the engine coolant system. Makeup Water Tank: Makeup water will be provided by the existing tank located in the power plant. Valving and piping will be added to enable the single tank to fill either the engine coolant loop or the heat recovery loop as needed. Variable Frequency Drive (VFD) Control: Operating the pumps with variable speed control will allow pumps to only operate as needed to maintain design temperature. At Bethel utility rates, the reduction of excess pumping power is significant. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 11 Rev C 7. ELECTRICAL DESIGN NARRATIVE The design is based on the plant’s current operating philosophy of minimal automation and AVEC’s request to have one power circuit supply the heat recovery system. DESIGN CRITERIA AND CODES Design Codes National Fire Protection Association (NFPA) National Electrical Code (NFPA 70) American National Standards Institute (ANSI) National Electrical Manufacturers Association (NEMA) National Electrical Safety Code (NESC) Illumination Engineering Society of North America (IESNA), Lighting Handbook 10th Edition Design Criteria Variable Value Units Source Distribution Voltage 2400 Volts AVEC Motor Control Voltage 208/120, 3 Volts, Phase AVEC Standby Generator Voltage 208/120,3 Volts, Phase AVEC Standby Generator Capacity 150 kW AVEC Available MCC Spares 4 AVEC Number of Motors 2 Coffman DESIGN CONDITIONS The design criteria listed above will allocate resources available for new equipment and retrofit. The following section outlines current conditions as well as options considered for source power. Six diesel generators, housed in a generator room, output delta 2400V, which is then stepped down to wye 208/120V for facility utilization by way of three single-phase transformers. The feed is then sent to a main switchboard and various panels. The Plant has one electrical room, situated adjacent to the generator containment area. All electrical equipment, with the exception of remote power panels and transformers, is contained within this room. Current equipment includes a 2000A GE Switchboard and 1200A GE Motor Control Center (MCC) with approximately 600A spare capacity, two power panels, a generator alarm panel, several sections of switchgear, and supporting ancillary electrical equipment. There are no spares available for use by powered equipment on any panelboard, remote or local to the electrical room. The MCC has four spare cubicles, some as unprepared space, and some with abandoned motor starters or feeder breakers. Retrofitting this MCC to feed power to the new heat recovery system was investigated during the conceptual design phase; however, this option is not preferred due to AVEC’s preference to have a single feeder providing all power, for ease of metering, and their preference to avoid modifications to the existing cable tray system. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 12 Rev C The preferred power supply option is to provide a new feeder tap off the existing standby generator transfer switch, which currently supplies 208/120V power to the motor control center and other equipment designated for in-house operations. A connection point is possible on the secondary side of the transfer switch. (3) – 75kVA transformers in bank arrangement provide power to the transfer switch and would need to be upgraded to 100kVA. Various conductors and equipment may also need to be upgraded during detailed design if their current rating is exceeded. A single feeder circuit would exit the electrical/transformer rooms and travel in conduit along the exterior of the generator building and pump room, onto the existing pipe rack, and into the heat exchanger module. A 600A panelboard with main breaker would act as a service entry disconnect for the module, and the panelboard would contain large breakers for feeding the VFD/motor loads and smaller lighting/power panelboard. Single point metering would be accomplished by installing a power meter on the incoming line to the 600A panelboard. An existing pipe rack runs from the pump room into the field for eventual heat recovery customer connections. This pipe rack can accept electrical conduit to serve the heat recovery module. There is an existing 300V cable tray running from the electrical room, through the generator room, and into the pump room, which is located on the opposite side of the building, and also existing 2400V tray. Routing new cable through the power plant is feasible, but not preferred per AVEC request. Cable in conduit routed outside along and against the building on new structural supports is preferred to routing new cable in existing tray. The power plant is located in an area without hazardous area classifications. SYSTEMS New electrical equipment and retrofits of existing equipment will be required to support new mechanical equipment. Power Distribution: Power allocated for generator building operations is also power used to support the heat recovery system. Currently, (3) – 75kVA 2400-120VAC single phase transformers are arranged in a delta-wye configuration to output three phase 208/120VAC. The transformers are housed in an area off the electrical room. An oil-filled circuit breaker precedes the transformers. The three phase 208/120V power then supplies a transfer switch, which is used to switch between utility power and standby generator power. Upon loss of power, the transfer switch can be manually switched to the standby generator. The generator has a power capacity of 150kW. The secondary side of the transfer switch has space available for an additional termination. (2) – 500MCM cables in parallel can connect here and provide power to the Heat Recovery Module via a single feeder circuit. A single circuit will allow AVEC to monitor power consumption by the entire heat recovery system. The feeder circuit shall be routed in conduit along the exterior of the generator building and pump room and from there, merge onto the existing pipe rack and into the module. The incoming feeder circuit will terminate in a 600A panelboard containing a large main breaker and 5 smaller breakers, which will provide power to two VFDs/motors, one future VFD/motor, a lighting/power panelboard, and one dedicated spare breaker. Breakers shall be lockable. The lighting/power panelboard will have a main bus rating of 125A and a utilization voltage of 208/120V. Several preliminary loads have been identified in the new module that will require 208/120V power, including but not limited to interior and exterior lighting, HVAC, emergency lighting, service receptacles, instrument power, PLC power, and heat tracing power. The power panel will have 25% spare breakers to allow for future expansion or additional needs. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 13 Rev C Wiring throughout the new module and the feeder system to the module will be copper conductors with XHHW insulation, routed in EMT conduit or TC cable in aluminum ladder-style cable tray. Control/Instrumentation/Metering: Centralized control for the heat recovery module shall be accomplished via a small PLC system, located in the module. The PLC provides numerous benefits to the heat recovery system, including instrument monitoring, simple calculations, logic functions, and VFD control. Specifically, the PLC shall take inputs from temperature and flow transmitters and perform calculations for BTUs, it shall display VFD trouble status and general trouble, it shall provide the temperature input for the VFD speed control, and also accept pressure transmitter input. The PLC shall have outputs for modulating the three-way control valve on the engine coolant loop where it will open and close the valve according to a defined temperature setpoint. Further, the PLC shall send status and indication to the electrical room, where remote monitoring is desired. A small status panel shall be installed there. Communication between the Heat Recovery PLC and the remote status panel shall be accomplished through an Ethernet connection. The Ethernet cable shall be routed along the same route as the HX power feeder. VFDs are recommended for the new pumps in a one-VFD-to-one-motor configuration. Although the plant philosophy is to limit automation, the VFDs will offer cost savings by more closely regulating the water temperature to a desired setpoint than is possible by human operators. This will be accomplished by modulating speed based on analog temperature signals via the Heat Recovery PLC. The VFD programming contains PID (proportional-integral-derivative) control and uses the analog signal to regulate pump speed. Bypass circuits are recommended for the VFDs. In the event of a VFD failure, it is necessary to maintain design flow in the piping servicing AVEC customers to prevent freezing. For this reason, a bypass circuit can be purchased with the VFDs. If a VFD fails or in times of maintenance, the pumps will not have to be taken fully out of service. The VFD will be set to bypass mode, where the pumps can be operated in across-the-line fashion until the VFD is put back into service. H-O-A switches shall be provided for the VFDs for further control over the system. The H-O-A switches shall be internal. Due to the motor location – in sight of the 600A panelboard, and the additional specification that the breakers shall be lockable, a local disconnect switch shall not be provided for the pumps. Remote starting and stopping of the VFDs from the Heat Recovery PLC is not required. Starting and stopping of the VFDs can be accomplished locally. In order to limit reflected wave phenomenon and other harmonic effects caused by the internal switching components of VFDs in motor circuits, it is recommended that power cable designed for VFD operation be used between the VFD and the motor. The cable should have a higher insulation rating, have shielding, and possibly contain three ground cables rather than one. Due to the close distance between the motor and the VFD, it is anticipated an output reactor or filter, will not be required, and any transient effects can be negated by the VFD cable. IEEE 519 harmonic calculations will be performed to confirm harmonic limits are not exceeded. The VFDs will be located near the motors in the heat exchanger module and powered by the 600A panelboard. Control power for the VFDs shall be self-derived. BTU metering is desired to accurately record energy units created and expended through the heat recovery system. BTU Meters for in-house recording shall not be purchased as stand-alone units, rather, function shall be handled by the Heat Recovery PLC system. Sales metering will be performed at the customer end via future stand-alone BTU meters. The PLC will accept temperature and flow inputs from instruments along the piping and perform BTU calculations. AVEC Bethel Heat Recovery 65% Design Sept 10, 2015 Page 14 Rev C Lighting: Exterior lighting around the module shall be provided for safety and security and consist of building mounted, energy-efficient LED fixtures. Exterior lighting shall be controlled by a contactor with H-O-A and a single photocell, turning on when lighting levels are low and off with sufficient daylight. Illumination levels shall be set according to the IESNA Lighting Handbook. Interior lighting will consist of low maintenance, energy efficient LED fixtures. Lighting control will consist of standard wall mounted switches. Telecommunications: Ethernet communications will exist between the PLC and the remote status panel, and also between the VFDs and the PLC. Through the Ethernet connection, many different statuses and properties from the VFDs can be transmitted to the PLC system. Grounding: System grounding will consist of bonding to module piles providing a more effective path to ground than a ground ring can provide in frozen soil. Where possible, the grounding system will be integrated with existing grounding systems. Cable size for taps to building steel shall be #4/0AWG. In order to minimize electrical noise, the Heat Recovery PLC system shall have a dedicated instrument ground system consisting of a separate grounding busbar within the PLC, then terminating in a ground rod triad. Specialty Systems: Electric heat trace is anticipated for outdoor piping between the Heat Recovery Module and the plant that would not have continuous flow during normal operations, including makeup water and expansion tank connections. Heat recovery loop piping will have continuous flow under all normal operating conditions and will not be heat traced. Emergency egress lighting and signage for the module shall be provided in the unlikely event of power loss. Internal battery packs will provide necessary power for emergency equipment; back-up battery time will be 30 minutes. UPS: Generalized battery backup is not required for this application; PLC shall be provided with integral battery backup as well as emergency lighting units. Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 G1 HEAT RECOVERY SYSTEM UPGRADES BETHEL POWER PLANT 65% DESIGN Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 G2 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S1 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S2 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S3 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S4 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S5 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S6 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 S7 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M1 HVAC FITTINGS & SYMBOLS BRANCH DUCT TAKEOFFS PIPING SYMBOLS ABBREVIATIONS GENERAL SINGLE DOUBLE SEQUENCE OF OPERATION SPECIFICATIONS INSTRUMENTATION LEGEND Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M2 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M3 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M4 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M5 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M6 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M7 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 M8 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 E1 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 E2 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 E3 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 E4 Anchorage, Alaska 995034831 Eagle StreetBETHEL C Sep 10, 2015 E5 REFERENCE ONLY REFERENCE ONLY HMS Project No. 15111PREPARED FOR:Coffman Engineers800 F StreetAnchorage, Alaska 99501September 10, 20154103 Minnesota Drive • Anchorage, Alaska 99503 p: 907.561.1653 • f: 907.562.0420 • e: mail@hmsalaska.com 65% DESIGN SUBMITTALCONSTRUCTION COST ESTIMATEBETHEL POWER PLANTHEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 2DATE: 9/10/2015DRAWINGS AND DOCUMENTSLevel of Documents:(19) each 65% design drawings and design narrativeDate:August 31, 2015Provided By:Coffman Engineers of Anchorage, AlaskaRATESPricing is based on current material, equipment and freight costs.Labor Rates:A.S. Title 36 working 60 hours per weekPremium Time:16.70%BIDDING ASSUMPTIONSContract:Standard construction contract without restrictive bidding clausesBidding Situation:Competitive bids assumedBid Date:Spring 2017Start of Construction:June 2017Months to Complete:Within (1.5) months completion for on-site constructionEXCLUDED COSTS1. A/E design fees2. Administrative and management costs3. Furniture, furnishings and equipment (except those specifically included)4. Remediation of contaminated soils or abatement of any hazardous materialsNOTES REGARDING THE PREPARATION OF THIS ESTIMATE BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 3DATE: 9/10/2015GENERALWhen included in HMS Inc.'s scope of services, opinions or estimates of probable construction costs are prepared on the basis of HMS Inc.'sexperience and qualifications and represent HMS Inc.'s judgment as a professional generally familiar with the industry. However, since HMS Inc.has no control over the cost of labor, materials, equipment or services furnished by others, over contractor's methods of determining prices, or overcompetitive bidding or market conditions, HMS Inc. cannot and does not guarantee that proposals, bids, or actual construction cost will not varyfrom HMS Inc.'s opinions or estimates of probable construction cost.This estimate assumes normal escalation based on the current economic climate. While the global economic downturn has moderated,it remains unclear how its effects and subsequent economic recovery will affect construction costs. HMS Inc. will continue to monitor this, as well as other international, domestic and local events, and the resulting construction climate, and will adjust costs and contingencies as deemedappropriate.GROSS FLOOR AREAHeat Recovery Building 768 SFNOTES REGARDING THE PREPARATION OF THIS ESTIMATE (Continued) BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 4DATE: 9/10/2015Material Labor Total 01 - SITE WORK $ 128,011 $ 63,312 $ 191,323 02 - SUBSTRUCTURE 163,308 74,779 238,087 03 - SUPERSTRUCTURE 0 0 0 04 - EXTERIOR CLOSURE 0 0 0 05 - ROOF SYSTEMS 0 0 0 06 - INTERIOR CONSTRUCTION 0 0 0 07 - CONVEYING SYSTEMS 0 0 0 08 - MECHANICAL 843,083 146,047 989,130 09 - ELECTRICAL 46,428 16,543 62,971 10 - EQUIPMENT 0 0 0 11 - SPECIAL CONSTRUCTION 208,127 33,850 241,977SUBTOTAL: $ 1,388,957 $ 334,531 $ 1,723,488 12 - GENERAL REQUIREMENTS431,924SUBTOTAL:$ 2,155,412 13 - CONTINGENCIES310,412TOTAL ESTIMATED CONSTRUCTION COST: $ 2,465,824COST PER SQUARE FOOT:$ 3,210.71 /SFGROSS FLOOR AREA:768 SF65% DESIGN CONSTRUCTION COST SUMMARY BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 5DATE: 9/10/2015Total Material Labor Material/Labor Total Cost Cost per SF 01 - SITE WORK$ 191,323 $ 249.12 011 - Hazmat Abatement $ 0 $ 0 $ 0 0.00 012 - Site Preparation 990 1,080 2,070 2.70 013 - Site Improvements 22,446 12,846 35,292 45.95 014 - Site Mechanical 36,278 32,992 69,270 90.20 015 - Site Electrical 68,297 16,394 84,691 110.27 02 - SUBSTRUCTURE $ 238,087 $ 310.01 021 - Standard Foundations $ 0 $ 0 $ 0 0.00 022 - Slab on Grade 0 0 0 0.00 023 - Basement 0 0 0 0.00 024 - Special Foundations 163,308 74,779 238,087 310.01 03 - SUPERSTRUCTURE$ 0 $ 0.00 031 - Floor Construction $ 0 $ 0 $ 0 0.00 032 - Roof Construction 0 0 0 0.00 033 - Stair Construction 0 0 0 0.00 04 - EXTERIOR CLOSURE $ 0 $ 0.00 041 - Exterior Walls $ 0 $ 0 $ 0 0.00 042 - Exterior Doors and Windows 0 0 0 0.00 05 - ROOF SYSTEMS $ 0 $ 0.00 051 - Roofing $ 0 $ 0 $ 0 0.00 052 - Skylights 0 0 0 0.00 06 - INTERIOR CONSTRUCTION$ 0 $ 0.00 061 - Partitions and Doors $ 0 $ 0 $ 0 0.00 062 - Interior Finishes 0 0 0 0.00 063 - Specialties 0 0 0 0.00 ELEMENTAL SUMMARYElement BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 6DATE: 9/10/2015Total Material Labor Material/Labor Total Cost Cost per SFELEMENTAL SUMMARYElement 07 - CONVEYING SYSTEMS $ 0 $ 0 $ 0 $ 0.00 08 - MECHANICAL $ 989,130 $ 1287.93 081 - Plumbing $ 0 $ 0 $ 0 0.00 082 - HVAC 0 0 0 0.00 083 - Fire Protection 0 0 0 0.00 084 - Special Mechanical Systems 843,083 146,047 989,130 1287.93 09 - ELECTRICAL$ 62,971 $ 81.99 091 - Service and Distribution $ 39,062 $ 10,375 $ 49,437 64.37 092 - Lighting and Power 7,366 6,168 13,534 17.62 093 - Special Electrical Systems 0 0 0 0.00 10 - EQUIPMENT$ 0 $ 0.00 101 - Fixed and Movable Equipment $ 0 $ 0 $ 0 0.00 102 - Furnishings 0 0 0 0.00 11 - SPECIAL CONSTRUCTION $ 208,127 $ 33,850 $ 241,977 $ 315.07 SUBTOTAL DIRECT WORK: $ 1,388,957 $ 334,531 $ 1,723,488 12 - GENERAL REQUIREMENTS$ 431,924 $ 562.40 121 - Mobilization $ 22,325 29.07 122 - Operation Costs 217,513 283.22 123 - Profit192,086 250.11 13 - CONTINGENCIES$ 310,412 $ 404.18 131 - Estimator's Contingency 7.50% $ 161,656 210.49 132 - Escalation Contingency 6.42% 148,756 193.69 TOTAL ESTIMATED CONSTRUCTION COST: $ 2,465,824 $3,210.71 /SFGROSS FLOOR AREA:768 SF BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 7DATE: 9/10/201501 - SITE WORK MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR012 - Site Preparation$ $ $ $ $ $Grub off and dispose of organics at buildingfootprint and approach pad 30 CY 14.00 420 14.00 420 Fine grade site 1,500 SF 0.20 300 0.20 300 Select backfill at building footprint and approachpad, compacted in place 30 CY 33.00 990 12.00 360 45.00 1,350 TOTAL ESTIMATED COST: $ 990 $ 1,080 $ 2,070 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 8DATE: 9/10/201501 - SITE WORK MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR013 - Site Improvements$ $ $ $ $ $STAIR AND CATWALK CONSTRUCTIONSupport channel 1,860 LBS 1.20 2,232 1.30 2,418 2.50 4,650 Channel steel stringers 1,350 LBS 1.40 1,890 1.50 2,025 2.90 3,915 Angle steel ledger 220 LBS 1.20 264 1.50 330 2.70 594 1 1/4" galvanized steel grate stair treads withnosing 88 LF 26.00 2,288 9.00 792 35.00 3,080 Galvanized steel grating at catwalk 165 SF 17.50 2,888 12.00 1,980 29.50 4,868 6"x6" pressure treated timber at stair land, setto grade 8 LF 1.75 14 6.00 48 7.75 62 1 1/2" diameter two-line pipe guardrail 147 LF 78.00 11,466 26.00 3,822 104.00 15,288 1/4"x4" galvanized steel plate at toe kick 380 LBS 1.30 494 1.20 456 2.50 950 Miscellaneous plates, angles, connections,bolts, etc. 650 LBS 1.40 910 1.50 975 2.90 1,885 TOTAL ESTIMATED COST: $ 22,446 $ 12,846 $ 35,292 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 9DATE: 9/10/201501 - SITE WORK MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR014 - Site Mechanical$ $ $ $ $ $Piping support structures 3 EA With Element 024 Cut and remove 10" existing RHS/RHR piping (2) 70 LF 26.00 1,820 26.00 1,820 New 10" diameter Schedule 40 steel piping in arctic pipe mounted on piled supports 96 LF 75.00 7,200 90.00 8,640 165.00 15,840 2" fill expansion piping in arctic pipe with heattrace 75 LF 45.00 3,375 60.00 4,500 105.00 7,875 10" arctic pipe fittings 10 EA 1000.00 10,000 300.00 3,000 1300.00 13,000 2" arctic pipe fittings 8 EA 550.00 4,400 245.00 1,960 795.00 6,360 10" connections to existing piping 4 EA 650.00 2,600 250.00 1,000 900.00 3,600 10" blind flanges for future 2 EA 660.00 1,320 195.00 390 855.00 1,710 New 2" diameter Schedule 40 steel piping at existing building 50 LF 9.50 475 19.40 970 28.90 1,445 2" fittings 6 EA 31.00 186 88.00 528 119.00 714 2" pipe insulation at interior piping 50 LF 3.60 180 7.30 365 10.90 545 SUBTOTAL:$ 29,736 $ 23,173 $ 52,909 Labor Premium Time 16.70% 3,870 3,870 SUBTOTAL:$ 29,736 $ 27,043 $ 56,779 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 10DATE: 9/10/201501 - SITE WORK MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR014 - Site Mechanical$ $ $ $ $ $Subcontractor's Overhead and Profit on Materialand Labor 22.00% 6,542 5,949 12,491 TOTAL ESTIMATED COST: $ 36,278 $ 32,992 $ 69,270 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 11DATE: 9/10/201501 - SITE WORK MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR015 - Site Electrical$ $ $ $ $ $BUILDING SERVICE3" diameter galvanized rigid steel conduitattached to building exterior 260 LF 18.00 4,680 11.00 2,860 29.00 7,540 1" diameter galvanized rigid steel conduitattached to building exterior 130 LF 4.50 585 5.25 683 9.75 1,268 3/C #500 MCM XHHW tray rated power cable 1,000 LF 45.00 45,000 7.50 7,500 52.50 52,500 3/C #1 AWG XHHW tray rated power cable 500 LF 11.25 5,625 4.40 2,200 15.65 7,825 Allowance for Ethernet connectivity to remotestatus panel at power plant control area 260 LF 0.35 91 0.75 195 1.10 286 SUBTOTAL:$ 55,981 $ 13,438 $ 69,419 Subcontractor's Overhead and Profit on Materialand Labor 22.00% 12,316 2,956 15,272 TOTAL ESTIMATED COST: $ 68,297 $ 16,394 $ 84,691 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 12DATE: 9/10/201502 - SUBSTRUCTURE MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR024 - Special Foundations$ $ $ $ $ $DRIVEN STEEL PIPE PILING AND RELATEDMobilization-demobilization rig 1 LOT 7500.00 7,500 15000.00 15,000 22500.00 22,500 Rig idle time 6 MOS 5000.00 30,000 5000.00 30,000 Vibratory driven 12" diameter x 38'0" piles to 30'0" embedment (12) 360 VLF 29.00 10,440 29.00 10,440 Vibratory driven 8" diameter piles to 30'0" embedment (8) 240 VLF 24.00 5,760 24.00 5,760 Cut 12" piles to required elevation 12 EA 40.00 480 120.00 1,440 160.00 1,920 Cut 8" piles to required elevation 8 EA 35.00 280 95.00 760 130.00 1,040 18"x18"x1" thick pile caps 12 EA 115.00 1,380 138.00 1,656 253.00 3,036 14"x14"x1" thick pile caps 8 EA 69.00 552 85.00 680 154.00 1,232 12" diameter x 0.375 thick x 38'0" long steel pipepiles 12 EA 4120.00 49,440 275.00 3,300 4395.00 52,740 8" diameter x 0.322 thick x 35'0" long steel pipepiles 5 EA 2750.00 13,750 185.00 925 2935.00 14,675 8" diameter x 0.322 thick x 38'0" long steel pipepiles 3 EA 2985.00 8,955 200.00 600 3185.00 9,555 W8x48" module support beam 4,608 LBS 1.15 5,299 1.15 5,299 2.30 10,598 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 13DATE: 9/10/201502 - SUBSTRUCTURE MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR024 - Special Foundations$ $ $ $ $ $DRIVEN STEEL PIPE PILING AND RELATED (Continued)W6x20" catwalk support beam 350 LBS 1.15 403 1.20 420 2.35 823 6"x6"x1/2" angle at pipe support 590 LBS 1.20 708 1.15 679 2.35 1,387 3"x3"x1/4" angle bracing 2,100 LBS 1.20 2,520 1.30 2,730 2.50 5,250 6"x6"x1" attachment tabs welded to piles 515 LBS 1.20 618 1.75 901 2.95 1,519 Miscellaneous angle connected bolts, etc. 350 LBS 1.40 490 1.50 525 2.90 1,015 Epoxy paint exposed surfaces 640 SF 0.60 384 2.20 1,408 2.80 1,792 MISCELLANEOUSTravel costs 6 RT 950.00 5,700 950.00 5,700 Piling crew per diem 36 MD 150.00 5,400 150.00 5,400 SUBTOTAL:$ 133,859 $ 52,523 $ 186,382 Labor Premium Time 16.70% 8,771 8,771 SUBTOTAL:$ 133,859 $ 61,294 $ 195,153 Subcontractor's Overhead and Profit on Materialand Labor 22.00% 29,449 13,485 42,934 TOTAL ESTIMATED COST: $ 163,308 $ 74,779 $ 238,087 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 14DATE: 9/10/201508 - MECHANICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR082 - HVAC$ $ $ $ $ $EF-1: 800 CFM, 1/6 HP exhaust fan 1 EAWith Module UH-1: 7.5 KW, 120/208 volt, 3 phase, fractional HP,530 CFM electric unit heater 1 EAWith Module TOTAL ESTIMATED COST: BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 15DATE: 9/10/201508 - MECHANICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR084 - Special Mechanical Systems$ $ $ $ $ $HEAT RECOVERY SYSTEMHX-1 and 2: 1,587 GPM, 10,000 MBH plate andframe heat exchangers 2 EA 120000.00 240,000 10500.00 21,000 130500.00 261,000 P-1 and 2: 40 HP, 10'0" head, 1,150 GPM pumps 2 EA 26000.00 52,000 1860.00 3,720 27860.00 55,720 10" three-way motorized control valve 1 EA 8400.00 8,400 1050.00 1,050 9450.00 9,450 8" flange connection to flow meter 1 EA 5975.00 5,975 900.00 900 6875.00 6,875 2,300 GPM, 12" air separator 1 EA 17300.00 17,300 1095.00 1,095 18395.00 18,395 ___ gallon expansion tanks 5 EAExisting Make-up tank 1 EAExisting Temperature gauges 5 EA 80.00 400 85.00 425 165.00 825 Pressure gauges 6 EA 110.00 660 85.00 510 195.00 1,170 Pressure transmitter 1 EA 1275.00 1,275 98.00 98 1373.00 1,373 Temperature transmitters 3 EA 151.00 453 170.00 510 321.00 963 PLC controller 1 EA 1250.00 1,250 150.00 150 1400.00 1,400 Pressure safety valves 2 EA 110.00 220 85.00 170 195.00 390 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 16DATE: 9/10/201508 - MECHANICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR084 - Special Mechanical Systems$ $ $ $ $ $HEAT RECOVERY SYSTEM (Continued)12" flow meter 1 EA 3425.00 3,425 930.00 930 4355.00 4,355 10" blind flanges 2 EA 660.00 1,320 190.00 380 850.00 1,700 14" butterfly valves 2 EA 11300.00 22,600 1500.00 3,000 12800.00 25,600 10" butterfly valves 6 EA 5050.00 30,300 850.00 5,100 5900.00 35,400 8" butterfly valves 18 EA 3425.00 61,650 750.00 13,500 4175.00 75,150 2" butterfly valves 2 EA 75.00 150 124.00 248 199.00 398 14" check valve 1 EA 10600.00 10,600 1500.00 1,500 12100.00 12,100 8" check valves 2 EA 3300.00 6,600 750.00 1,500 4050.00 8,100 2" ball valves 8 EA 75.00 600 124.00 992 199.00 1,592 Connect 2" fill and expansion lines to existing 2 EA 35.00 70 160.00 320 195.00 390 Auto air vents 6 EA 110.00 660 62.00 372 172.00 1,032 3/4" drain valve with hose connection 1 EA 32.00 32 26.00 26 58.00 58 14" Y-strainer 1 EA 4175.00 4,175 1430.00 1,430 5605.00 5,605 12" Y-strainer 1 EA 2275.00 2,275 1100.00 1,100 3375.00 3,375 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 17DATE: 9/10/201508 - MECHANICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR084 - Special Mechanical Systems$ $ $ $ $ $HEAT RECOVERY SYSTEM (Continued)40 HP VFDs 2 EA With Element 091 14" diameter black steel pipe 70 LF 193.00 13,510 156.00 10,920 349.00 24,430 12" diameter black steel pipe 100 LF 165.00 16,500 133.00 13,300 298.00 29,800 10" diameter black steel pipe 6 LF 138.00 828 116.00 696 254.00 1,524 8" diameter black steel pipe 60 LF 97.00 5,820 98.00 5,880 195.00 11,700 5" diameter black steel pipe 12 LF 50.00 600 60.00 720 110.00 1,320 14" fittings 14 EA 5016.00 70,224 360.00 5,040 5376.00 75,264 12" fittings 20 EA 4300.00 86,000 310.00 6,200 4610.00 92,200 10" fittings 3 EA 2150.00 6,450 265.00 795 2415.00 7,245 8" fittings 12 EA 975.00 11,700 233.00 2,796 1208.00 14,496 5" fittings 3 EA 855.00 2,565 177.00 531 1032.00 3,096 14" fiberglass pipe insulation with jacket 70 LF 15.65 1,096 31.00 2,170 46.65 3,266 12" fiberglass pipe insulation with jacket 100 LF 13.60 1,360 27.60 2,760 41.20 4,120 10" fiberglass pipe insulation with jacket 6 LF 10.90 65 25.00 150 35.90 215 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 18DATE: 9/10/201508 - MECHANICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR084 - Special Mechanical Systems$ $ $ $ $ $HEAT RECOVERY SYSTEM (Continued)8" fiberglass pipe insulation with jacket 60 LF 10.15 609 22.60 1,356 32.75 1,965 5" fiberglass pipe insulation with jacket 12 LF 7.05 85 12.40 149 19.45 234 Control system 30 PTS 1200.00 36,000 1200.00 36,000 Remote status interface panel 1 EA 1250.00 1,250 150.00 150 1400.00 1,400 SUBTOTAL:$ 691,052 $ 149,639 $ 840,691 Labor Savings for Modular In Plant Construction -20.00% -29,928 -29,928 SUBTOTAL:$ 691,052 $ 119,711 $ 810,763 Subcontractor's Overhead and Profit on Materialand Labor 22.00% 152,031 26,336 178,367 TOTAL ESTIMATED COST: $ 843,083 $ 146,047 $ 989,130 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 19DATE: 9/10/201509 - ELECTRICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR091 - Service and Distribution$ $ $ $ $ $Overhead power dropBy Local UtilityService entrance 1 EA 43.00 43 120.00 120 163.00 163 600 amp, 208/120 volt, 5 circuit panel board inNema 12 enclosure with integral disconnect 1 EA 10000.00 10,000 1750.00 1,750 11750.00 11,750 125 amp, 120/208 volt, 3 phase, 42 circuits panel board, Nema 12 1 EA 1875.00 1,875 1050.00 1,050 2925.00 2,925 40 HP variable frequency drives in Nema 12 2 EA 9900.00 19,800 3230.00 6,460 13130.00 26,260 Ground allowance 1 LOT 150.00 150 500.00 500 650.00 650 Test and tag service 1 LOT 150.00 150 750.00 750 900.00 900 SUBTOTAL:$ 32,018 $ 10,630 $ 42,648 Labor Savings for Modular In Plant Construction -20.00% -2,126 -2,126 SUBTOTAL:$ 32,018 $ 8,504 $ 40,522 Subcontractor's Overhead and Profit on Materialand Labor 22.00% 7,044 1,871 8,915 TOTAL ESTIMATED COST: $ 39,062 $ 10,375 $ 49,437 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 20DATE: 9/10/201509 - ELECTRICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR092 - Lighting and Power$ $ $ $ $ $Type L-1: 1'0"x4'0" surface mounted LEDfixtures 10 EAWith Module Self contained surface mounted emergencyLED light 3 EAWith Module L-2: Exterior wall pack 1 EAWith Module Three-way switches (assumed) 2 EAWith Module Duplex receptacles 4 EAWith Module Duplex receptacle, GFCI, weatherproof 1 EAWith Module ___ HP motor connections at unit heater 3 EAWith Module 40 HP motor connections 2 EA 1100.00 2,200 650.00 1,300 1750.00 3,500 HOA switches 2 EA 240.00 480 115.00 230 355.00 710 Fused disconnect switches 2 EA 185.00 370 110.00 220 295.00 590 9" cable tray 45 LF 24.00 1,080 14.70 662 38.70 1,742 12" cable tray 26 LF 26.00 676 15.50 403 41.50 1,079 1" diameter EMT conduit 100 LF 2.26 226 5.80 580 8.06 806 3/4" diameter EMT conduit 225 LF 1.29 290 5.12 1,152 6.41 1,442 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 21DATE: 9/10/201509 - ELECTRICAL MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR092 - Lighting and Power$ $ $ $ $ $1/2" diameter EMT conduit 175 LFWith Module #8 XHHW copper conductors 500 LF 0.54 270 0.85 425 1.39 695 #10 XHHW copper conductors 1,130 LF 0.35 396 0.75 848 1.10 1,244 #12 XHHW copper conductors 880 LFWith Module Test and tag lighting and power 1 LOT 50.00 50 500.00 500 550.00 550 SUBTOTAL:$ 6,038 $ 6,320 $ 12,358 Labor Savings for Modular In Plant Construction -20.00% -1,264 -1,264 SUBTOTAL:$ 6,038 $ 5,056 $ 11,094 Subcontractor's Overhead and Profit on Materialand Labor 22.00% 1,328 1,112 2,440 TOTAL ESTIMATED COST: $ 7,366 $ 6,168 $ 13,534 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 22DATE: 9/10/201510 - EQUIPMENT MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR101 - Fixed and Movable Equipment$ $ $ $ $ $Note: For mechanical equipment please refer to Element 08.TOTAL ESTIMATED COST: BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 23DATE: 9/10/201511 - SPECIAL CONSTRUCTION MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR$ $ $ $ $ $Note: Pricing based on quote from Charles Benshetler at Builders Choice.Module design 1 LOT 19610.00 19,610 19610.00 19,610 Prefabricated building module, including basic power, lighting and heating 768 SF 189.00 145,152 Included 189.00 145,152 Freight 1 LOT 34865.00 34,865 34865.00 34,865 Module installation 1 LOT 33850.00 33,850 33850.00 33,850 40 ton crane for module erection (assumeslocal crane) 1 WK 8500.00 8,500 8500.00 8,500 TOTAL ESTIMATED COST: $ 208,127 $ 33,850 $ 241,977 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 24DATE: 9/10/201512 - GENERAL REQUIREMENTS MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR$ $ $ $ $ $MOBILIZATION/DEMOBILIZATIONMobilize and set-up temporary facilities 1 LOT 2500.00 2,500 6000.00 6,000 8500.00 8,500 Barge freight 10 TONS 750.00 7,500 100.00 1,000 850.00 8,500 Module freight allowanceWith Element 11 Air freight 500 LBS 1.25 625 0.25 125 1.50 750 Remove temporaries and demobilize 1 LOT 500.00 500 1500.00 1,500 2000.00 2,000 Return equipment freight 5 TONS 450.00 2,250 65.00 325 515.00 2,575 SITE MANAGEMENTProject manager (part time) 100 HRS 125.00 12,500 125.00 12,500 Superintendent 1.5 MOS 200.00 300 12500.00 18,750 12700.00 19,050 Quality control (part time) 1.5 MOS By Supervisor Field engineering 10 HRS 115.00 1,150 115.00 1,150 Site offices and staff (minimal) 1.5 MOS 1250.00 1,875 2350.00 3,525 3600.00 5,400 Expediting (part time) 1.5 MOS 150.00 225 2700.00 4,050 2850.00 4,275 Scheduling and estimating (part time) 1.5 MOS 150.00 225 3000.00 4,500 3150.00 4,725 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 25DATE: 9/10/201512 - GENERAL REQUIREMENTS MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR$ $ $ $ $ $TEMPORARY FACILITIESMaintenance and cleaning of temporary facilities 1.5 MOS 50.00 75 250.00 375 300.00 450 Consumable supplies 1.5 MOS 500.00 750 500.00 750 Temporary utilities and communications 1.5 MOS 850.00 1,275 850.00 1,275 Construction debris disposal 1.5 MOS 350.00 525 450.00 675 800.00 1,200 Temporary lighting and power 1.5 MOS 875.00 1,313 150.00 225 1025.00 1,538 Fuel for equipment 1.5 MOS 2000.00 3,000 2000.00 3,000 Dumpster (1) 1.5 MOS 450.00 675 450.00 675 Porta can (1) 1.5 MOS 100.00 150 100.00 150 EQUIPMENT AND TOOLSConstruction equipment, trucks, pick-ups, etc. 1.5 MOS 1500.00 2,250 150.00 225 1650.00 2,475 Compressors, saws, air tools, hand tools, safetyhats and other expendables 1.5 MOS 750.00 1,125 75.00 113 825.00 1,238 MISCELLANEOUSMiscellaneous materials testing 1 LOT 1500.00 1,500 1500.00 1,500 Plan check and inspection fees 1 LOT 500.00 500 500.00 500 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 26DATE: 9/10/201512 - GENERAL REQUIREMENTS MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR$ $ $ $ $ $MISCELLANEOUS (Continued)Alaska Department of Labor filing fee 1 LOT 5000.00 5,000 5000.00 5,000 Permits 1 LOTBy Owner Temporary protection, barriers, etc. 1.5 MOS 150.00 225 250.00 375 400.00 600 Printing, photographs, videos, etc. 1 LOT 50.00 50 150.00 150 200.00 200 Shop and as-built drawings, submittal and schedules 1 LOT 100.00 100 1250.00 1,250 1350.00 1,350 Regular clean-up 1.5 MOS 75.00 113 500.00 750 575.00 863 Final clean-up and punch list 770 SF 0.08 62 0.17 131 0.25 193 Daily loading and unloading 1.5 MOS 75.00 113 850.00 1,275 925.00 1,388 LABOR TRAVEL COSTPremium time With Direct Work Air fares and travel costs 6 RT 440.00 2,640 440.00 2,640 Per diem (imported crew) 270 DAYS 150.00 40,500 150.00 40,500 SUBTOTAL:$ 77,941 $ 58,969 $ 136,910 Home office 3.25%60,463 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 27DATE: 9/10/201512 - GENERAL REQUIREMENTS MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR$ $ $ $ $ $Contractor's profit and home office overhead basedon type of structure and project size including risk factor 10.00%192,086 Bonds 0.85%17,960 Insurances 1.15%24,505 TOTAL ESTIMATED COST:$ 431,924 BETHEL POWER PLANT HEAT RECOVERY SYSTEM UPGRADESBETHEL, ALASKA65% DESIGN SUBMITTAL CONSTRUCTION COST ESTIMATEHMS Project No.: 15111PAGE 28DATE: 9/10/201513 - CONTINGENCIES MATERIAL LABOR TOTAL TOTALQUANTITY UNIT RATE TOTAL RATE TOTAL UNIT RATE MATERIAL/LABOR$ $ $ $ $ $131 - ESTIMATOR'S CONTINGENCYThe estimator's allowance for architectural andengineering requirements that are not apparentat this level of design documentation 7.50%$ 161,656 132 - ESCALATION CONTINGENCYThe allowance for escalation from the date ofestimate to the proposed bid date of June 2017at the rate of 3.50% per annum (22 months) 6.42%$ 148,756 TOTAL ESTIMATED COST:$ 310,412 September 7, 2015 Mr. Steve Gilbert Manager, Projects Development and Key Accounts Alaska Village Electric Cooperative 4831 Eagle Street Anchorage, Alaska 99503 Sent via email sgilbert@avec.org Project: Bethel Power Plant Heat Recovery Upgrades Fee Proposal - Final Design and CA services for Heat Recovery Module Dear Mr. Gilbert, Coffman Engineers (CEI) is pleased to offer this proposal for continued engineering support for the Bethel Power Plant Upgrades. This proposal if for completion of final design, building off the previous 65% design package for the Heat Recovery Module. This proposal also includes additional design phase visits, construction phase site visits, and construction phase support including submittal reviews, answering fabricator and contractor questions, and startup support. It is assumed AVEC will provide in depth commissioning, with Coffman providing support only. Final geotechnical, code study, and survey efforts are included as estimates only, and will need to be further clarified during final design. The main goal of this effort would be to complete final fabrication and construction drawing packages to go out to bid. Work will include fabrication of module, fabrication of platforms and access stairs, installation of module, and electrical, controls and piping tie in of module. Also included will be design package for installation of BTU utilization meters, additional monitoring devices (pressure, temperature, flow, and etc.), electrical metering, and the isolating heat exchanger and associated pumps. We included preparation of our design documents for submittal to AEA to be used in their REF Grant spending approval process. This proposal is intended to be complimentary to professional services completed or scheduled to be completed under funding approved by the Round 8 AEA REF grant. The Round 8 grant authorized spending for evaluations and design to 35% on several aspects of the Bethel Power Plant. The 65% design was fully funded by AVEC and is a separate task order with separate funding. The final design funding is expected to be from an AEA Round 9 REF grant . SCOPE OF WORK The current scope of work includes the following items: 1) Develop the water-water Heat Recovery system engineering to 100% level a) Review and incorporation of information gathered from AVEC drawings and/or reports, specifications, and other technical documents necessary for the module fabrication and construction document packages b) Advancement of the design narrative in architectural, civil, structural, geotechnical, mechanical and electrical Steve Gilbert Bethel Power Plant Heat Recovery Upgrades September 7, 2015 c) Structural engineering to include building foundation and module and component fabrication d) Mechanical engineering to include heat exchangers, pumps, piping, instrumentation for mechanical control, energy (BTU) metering, and heating/ventilation in the heat exchanger building. It will cover the tie-in to the existing heat recovery distribution piping and accommodation of a future tie-in point for the air-water heat exchanger (exhaust stack). e) Electrical engineering to include power, metering, and control of mechanical equipment, lighting, and ancillary devices as need for the module. It will cover tie-in to the existing power source in the power plant building and power feed to the new building. 2) Participate in meetings with AVEC engineering group in Anchorage 3) Provide architectural code study as subconsultant to Coffman 4) Geotechnical efforts (to be more fully estimated once final design efforts begin) 5) Survey support (to be more fully estimated once final design efforts begin) SCHEDULE (ESTIMATED): Activity Date Receive intent to award or notice to proceed July 2016 Draft 95% review package to AVEC October 2016 Comments received from AVEC September 2016 100% Submittal with AVEC comments incorporated November 2016 Comments received from AVEC December 2016 Fabrication and Construction Documents Submittal with AVEC comments incorporated January 2017 Bidding support Spring 2017 Construction Administration Summer 2017 Intermediate (over-the-shoulder) reviews by AVEC will be accommodated upon request, however these will not be prepared submittals. DELIVERABLES  Design narrative  Drawings (Mechanical, Electrical, Structural, Civil)  Specifications (by AVEC; specs incorporated into our drawing sheets)  Geotechnical report, as required  Survey documentation, as required EXCLUSIONS  Architectural Drawings  Exhaust stack heat exchanger design Steve Gilbert Bethel Power Plant Heat Recovery Upgrades September 7, 2015  Work covered under Round 8 AEA REF Grant for engineering evaluations and 35% bridging documents  Permitting  Extensive commissioning FEE PROPOSAL Activity Estimated Fee (NTE) 3 Multi-Day Site Visits $12,000 Document Research/Review $5,000 Meetings (various disciplines) $7,000 95% Design Review Cycle $60,000 Final Design Narrative $10,000 100% Design Review Cycle $21,000 Architectural code study** $4,000 Geotechnical Report* $47,000 Survey** $15,000 CA services $20,000 Total $201,000 *Geotechnical investigation is estimated and excludes conducting new borings and modeling on the boring data. It is assumed a pit can be dug at site with local equipment if required. ** Survey and codes study estimated We propose to complete the above-described activities on a Time and Materials Basis, based on our current understanding of the scope, in accordance with our On-Call Professional Services Contract 2015 with AVEC. Please feel free to contact us if you have any questions or comments. COFFMAN ENGINEERS, INC. Tony SlatonBarker Tony SlatonBarker, SE Senior Project Manager