HomeMy WebLinkAboutSt.Mary's-Mt.VillageIntertieRound9ApplicationFinalRenewable Energy Fund Round IX
Grant Application
Mt. Village/St. Mary’s Intertie Project
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
AEA 15003 Page 1 of 31 7/8/14
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 -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements,the application
will be rejected.
1.2.1 Applicant Type
☒An electric utility holding a certificate of public convenience and necessity under AS 42.05, 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 gover ning
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 -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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SECTION 2 –PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Mountain Village-St. Mary’s Wind Intertie Project –Final Design and Construction
2.2 Project Location
2.2.1 Location of Project –Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information please contact
AEA at 907-771-3031.
This project will be located along the approximately 18-mile gravel road connecting the
communities of Saint (St.)Mary’s and Mountain (Mtn.)Village.Both Western Alaskan communities
are approximately 450 air miles west-northwest of Anchorage. The City of St. Mary's encompasses
the Yup'ik villages of St. Mary's and Andreafsky. It lies at approximately 62.053060 North Latitude
and -163.165830 West Longitude. (Sec. 26, T023N, R076W, Seward Meridian.)Mtn.Village is
located on the north bank of the Yukon River about 20 miles west of St. Mary’s and 470 miles
northwest of Anchorage. It lies at approximately 62.085560 North Latitude and -163.729440 West
Longitude.
2.2.2 Community benefiting –Name(s) of the community or communities that will be the
beneficiaries of the project.
This project will primarily benefit the communities of Mtn.Village (population of 857 -DCCED
Commissioner Certified Figure, 2014)and St. Mary’s (population of 550 -DCCED Commissioner
Certified Figure, 2014) and, through economies of scale,Pitka’s Point (population of 117;2014
Department of Labor estimate)will also benefit because it is already intertied to the St. Mary’s
electrical system.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐Wind ☐Biomass or Biofuels (excluding heat-only)
☐Hydro, Including Run of River ☐Hydrokinetic
☐Geothermal, Excluding Heat Pumps ☒Transmission of Renewable Energy (wind)
☐Solar Photovoltaic ☐Storage of Renewable
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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☐Other (Describe)☐Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐Reconnaissance ☒Final Design and Permitting
☐Feasibility and Conceptual Design ☒Construction
2.4 Project Description
Provide a brief one paragraph description of the proposed project.
Alaska Village Electric Cooperative, Inc. (AVEC) is seeking $3,196,000 from this Grant Program for
the construction of an electrical intertie to connect Mtn. Village to the St. Mary’s/Pitka’s Point
Wind Energy Project.AVEC will contribute an additional $3,000,000 as a cash match.The intertie
will include 16.1 miles of new 3-phase overhead power line along the existing gravel road between
the St. Mary’s Airport and the Mtn. Village Airport. The project will also include upgrading 4.0
miles of existing electrical distribution system near both communities from single-phase to three-
phase. The existing power plant in Mtn. Village will be put into standby mode, with installation of
an electric boiler to keep the existing generators warm.This intertie project will enable the
community of Mtn.Village to benefit from the new wind energy system in St. Mary’s/Pitka’s Point.
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.
At present, St. Mary’s and Pitka’s Point are connected by a distribution power line, but Mtn.
Village is a stand-alone diesel powered community.The existing electric distribution facilities in St.
Mary’s includes a three-phase power distribution line between AVEC’s power plant and town,a
single-phase line to the west of town,and a single-phase line to St.Mary’s airport.The existing
distribution facilities in Mtn.Village includes three-phase power between AVEC’s power plant and
within town and single-phase distribution on the east of town to the Mtn.Village airport.
Specifically, this project would provide a three-phase power intertie connection between the Mtn.
Village and St.Mary’s power plants. To provide a continuous three-phase connection between
Mtn.Village and St.Mary’s,the following modifications to existing facilities and additional new
facilities are being proposed to create a distribution intertie:(Please refer to the 65%design
documents provided to AEA on August 20, 2015.)
•Beginning at the existing AVEC three-phase Pole 25 in Mtn.Village, the distribution line
between Pole 25 and existing Pole 47 will be converted from single-phase to three-phase
by modifying the existing pole framing with new cross arm assemblies and the provision of
two additional conductors.
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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•From existing AVEC Pole 47 at the Mtn.Village Airport to existing AVEC Pole 105 at the St.
Mary’s Airport, the routing of a new three-phase pole line will generally follow the existing
Alaska Department of Transportation and Public Facilities (DOT&PF)road.This section will
be comprised of approximately 420 new poles, including a few span guy poles crossing the
roadway to provide guying at angle points along the roadway curves. The design has been
optimized to minimize these roadway crossings. The new poles have been designed to
continue the numbering system from Mtn.Village.
•From existing single-phase Pole 105 at the St.Mary’s Airport to existing Pole 73 at the
Pitka’s Point power distribution tap, the single-phase circuit will be modified to convert to
three-phase with the addition of pole top pins, offset neutral framing, and cross arms
where required.Two conductors will be added to convert it to 12.5 kV three-phase
distribution.
•From existing Pole 73 at the Pitka’s Point power distribution tap to the proposed inset Pole
62Y at the spur to the St.Mary’s wind turbine site, the existing single-phase circuit will be
modified by providing a fourth conductor on the existing pole line to convert it to 12.5 kV
three-phase distribution.
The completed three-phase intertie will be energized at 12.47/7.2 kV, with new structures
insulated at 25 kV.The standard pole will be a 45 ft.-class 3 pole with 1/0 ACSR primary conductor
to provide required clearances, and current power transfer capacity, as well as capacity for future
load growth. These poles will be provided with vibration dampeners on all poles, including existing
poles that lack vibration dampeners.Additionally, grid reflectors will be provided on all new poles,
and on existing poles within the project limits that have damaged or missing reflectors.
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 engineering
contractor to confirm that all the
design needs are in place prior to
moving forward with selection of the
construction contractor.
July
2016
Oct
2016
Final design and
specifications
Bid documents Bid documents will be completed by
the engineering contractor.Oct
2016
Nov
2016
Bid documents
and request for
bid
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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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.
AVEC is proposing a project to construct an electrical intertie and intertie upgrades between the
new wind project in St. Mary’s and Mtn.Village. AVEC requests $3,196,000 from the State of
Alaska through a Renewable Energy Fund award.AVEC will provide $3,000,000 (48%)as a match
contribution.Note that AVEC is not requesting funds for the St. Mary’s wind farm, which has been
previously funded.
Vendor selection and award The construction contractor will be
selected, and a construction task order
will be prepared.Nov
2016
Dec
2016
Contract
Construction Jan
2016
Sept
2017
n/a
Materials procurement Intertie materials will be purchased in
time to be transported via barge
Feb
2017
April
2017
Mobilization Construction materials and equipment
will be mobilized to the site by barge
following break up
April
2017
May
2017
Pole and line construction The intertie will be constructed. The
existing road will be used to transport
materials and equipment.
May
2017
Aug
2017
Demobilization The construction contractor will
remove equipment via barge prior to
freeze up.
Sept
2017
Sept
2017
Integration and testing Once the new line is installed and the
existing lines are upgraded to 3-phase,
final integration and testing of the
distribution system will occur.
Sept
2017
Oct
2017
n/a
Decommissioning of old
system
An electric boiler will be installed and
the existing Mtn.Village power plant
will be put into standby mode.
Oct
2017
Nov
2017
n/a
Final acceptance,
commissioning, and start up
Final acceptance, commissioning, and
startup will be done immediately
following installation and upgrades.
Nov
2017
Dec
2017
n/a
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 -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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Recognizing the trend AEA has established and references in the REF Round IX grant guidance for
encouraging other-than-REF funds for construction phase projects, AVEC will research and apply
for federal grants or grant/loan funds for this phase of the project. If unsuccessful in pursuing
grant funds, AVEC may look to loan programs for the construction of the Mtn.Village–St. Mary’s
Wind Intertie Project.
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
requirements
$100,000 $100,000 Cash $200,000
Bid documents $5,000 $5,000 Cash $10,000
Vendor selection and award $5,000 $5,000 Cash $10,000
Construction $3,073,500 $2,877,500 Cash $5,951,000
Integration and testing $-$-$-
Decommissioning of old
system
$-$-$-
Final acceptance,
commissioning, and start-
up
$12,500 $12,500 Cash $25,000
Operations reporting $-$-$-
TOTALS $3,196,000 $3,000,000 $6,196,000
Budget Categories:
Direct Labor & Benefits $82,500 $82,500 Cash $165,000
Travel & Per Diem $5,000 $5,000 Cash $10,000
Equipment $25,000 $25,000 Cash $50,000
Materials & Supplies $12,500 $12,500 Cash $25,000
Contractual Services $142,500 $142,500 Cash $285,000
Construction Services $2,928,500 $2,732,500 Cash $5,661,000
Other $$$
TOTALS $3,196,000 $3,000,000 $6,196,000
Renewable Energy Fund Round IX
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MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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3.2.3 Cost Justification
Indicate the source(s)of the cost estimates used for the project budget.
The construction cost is AVEC’s consulting engineers and AVEC’s in-house staff estimate based on
a 65% design.
3.2.4 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $3,196,000
Cash match to be provided $3,000,000
In-kind match to be provided $
Total costs for project phase(s)covered in application (sum of above)$6,196,000
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 $102,000
Feasibility and Conceptual Design $53,000
Final Design and Permitting $49,000
Construction $6,196,000
Total Project Costs (sum of above)$6,400,000
3.2.6 Operating and Maintenance Costs
O&M costs can be estimated in two ways for the standard application. Most proposed RE projects
will fall under Option 1 because the new resource will not allow for diesel generation to be turned
off. Some projects may allow for diesel generation to be turned off for periods of time;these
projects should choose Option 2 for estimating O&M.
Options O&M Impact of proposed RE project
Option 1: Diesel generation ON
For projects that do not result in shutting
down diesel generation there is assumed
to be no impact on the base case O&M.
Please indicate the estimated annual
O&M cost associated with the proposed
renewable project.
Note: St. Mary’s wind project is diesels on;
however, this project will allow Mtn. Village’s
diesels to be turned off.
Option 2: Diesel generation OFF
For projects that will result in shutting
down diesel generation please estimate:
1.Annual non-fuel savings of
shutting off diesel generation
2.Estimated hours that diesel
generation will be off per year.
3.Annual O&M costs associated
with the proposed renewable
project.
1.Fuel savings would be 101,000 gal/yr AND
$160,000 in labor and materials would be saved with
Mtn.Village power plant on stand-by.
2.Hours diesel OFF/year:Diesels will be turned
completely off at the Mtn.Village power plant
3.$25,000 (intertie only)
Estimated high, based on 2014 O&M costs for:
Kasigluk-Nunapitchuk intertie: $14,000
Tununak-Toksook Bay-Nightmute intertie:
$10,000
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MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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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 Community Development Department. For financial
reporting, the Community Development Department’s accountant, supported by the
Administrative Services Department, will prepare financial reports. The accountant will be
responsible for ensuring that vendor invoices and internal labor charges are documented in
accordance with AEA guidelines. AVEC has up-to-date 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
progress 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 meetings
will be held, as required or requested by AEA.
Steve Gilbert, Manager of Projects Development and Key Accounts will serve as AVEC’s point of
contact and 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 project, if funded.
As a local utility that has been in operation since 1968, AVEC is completely able to finance,
operate, and maintain this project for its design life. AVEC is very familiar with planning,
constructing, operating, and maintaining these electrical intertie systems.AVEC existing interties
include:
St. Mary’s-Pitka’s Point intertie
Kasigluk-Nunapitchuk intertie
Tununak-Toksook Bay-Nightmute intertie
Upper Kalskag-Lower Kalskag intertie
Emmonak-Alakanuk intertie
Stebbins –St Michael intertie
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MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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In 2014,AVEC completed the construction of the Stebbins-St. Michael intertie and has relevant
recent experience needed to successfully construct the intertie to Mtn.Village.In the winter of
2015, AVEC will start construction on a seventh intertie, which will be located between New
Stuyahok –Ekwok.
Business Plan Structures and Concepts which may be considered: The intertied systems would be
incorporated into the St. Mary’s Wind Project operation. Local wind/plant operators will provide
daily servicing. AVEC technicians provide periodic preventative or corrective maintenance and are
supported by AVEC headquarters staff, purchasing, and warehousing.
How O&M would be financed for the life of the project:The costs of operations and maintenance
would be funded through ongoing energy sales to AVEC’s consumers (member owners) in all the
villages served by the cooperative.
Operational issues which could arise:As mentioned above,AVEC currently operates six village-to-
village interties and is familiar with maintaining interties in remote locations. No major operational
issues are expected.
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 St. Mary’s and Mtn.Village, 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
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MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
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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.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 on renewables, especially wind.He also worked with
BP Wind in London assessing European wind prospects.To better evaluate investment
opportunities Mr.Gilbert 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
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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 wind turbines throughout rural Alaska. That strategy includes a 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 review 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 St. Mary’s and Mtn.
Village residents and key entities to ensure the community is informed.
Selection Process for Contractors:The 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.
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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.
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 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 reasonable,
ordinary, and necessary are charged to a Project, and that only costs that are eligible are
submitted for reimbursement. First, AVEC’s project manager 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
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project. Third, the Operations and Engineering Department Managers review all in-house labor
(timesheets) and expense reports for their respective departments to make sure that the charges
are acceptable. Finally, the Projects Development and Key Accounts Department Senior
Accountant, while preparing AEA financial reports and reimbursement requests, provides a review
of both outsourced and in-house charges to determine whether they are allowable costs. The
Senior Accountant is very experienced with REF grant reporting and grant agreements and
understands what costs would be accepted by AEA.
AVEC has systems in place to keep unacceptable overhead costs from being charged to and
reimbursed through the REF Grant Fund Program. Upon project initiation, an AVEC work order
number is created to track all project labor and expenses. AVEC staff and contractors reference
this number on all timesheets and invoices when working on the project, ensuring that project
costs are known. Purchase orders are universally used to establish spending limits for purchases of
materials, which are then monitored by the Accounting Department through the enterprise
accounting system. Task orders and contracts are universally used to establish spending limits for
purchases of contractual services, which are then monitored by the Project Development and Key
Accounts Department utilizing spreadsheets.Direct labor expenses (gross payroll) are tracked
separately from overhead costs including employee benefits and payroll taxes. Once labor hours
have been calculated, overhead including employee benefits and payroll taxes are applied in a
separate transaction on the work order.
AVEC and AEA have an agreed rate cap for employer costs of payroll, consisting only of employee
benefits and payroll taxes. AVEC can ensure that only allowable costs would be requested for
reimbursement because the direct labor and indirect/overhead costs are separate transactions
(and thus the indirect/overhead amounts can be easily omitted from reimbursement), and
because the allowable rate has been established and agreed upon (and thus can be easily included
for reimbursement).
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,
bird monitors 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
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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 employees of their city government.
Through a contract process, AVEC reimburses the city for the wages and fringe benefits of the
power plant operators. During project feasibility, design and construction phases, plant operators
provide necessary assistance; typically with tasks like 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.
This intertie project will enable the community of Mtn.Village to benefit from the new wind
energy system in St. Mary’s/Pitka’s Point.Based on AVEC’s planning work for this project, after
providing power to St. Mary’s and Pitka’s Point,the St. Mary’s wind farm will provide 1,233,000
kWh/year of power to Mtn.Village via the proposed intertie.
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AVEC has explored many renewable energy alternatives to serve Mtn.Village.Recently AVEC
completed wind studies at two sites within Mtn.Village. In addition, AVEC has explored a variety
of turbine and configuration options in St. Mary’s/Pitka’s Point in order to best serve the Lower
Yukon area. AVEC has determined that the best alternative to serve three communities is to install
one EWT52-900 wind power unit in St. Mary’s,and to construct an intertie and complete
distribution system improvements to provide power to Mtn.Village.Under this scenario, one
wind farm will provide renewable wind energy to over 1,500 Alaskans,will shut down one
power plant,and will enhance system economy and reliability.
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
FAA Determinations of No Hazard to Air Traffic has been received for the project; only power poles
around the airports required these approvals, which are found under Tab E.
It is likely that the following additional permits would be needed to construct the intertie:
Section 404 Permit (Wetlands Nationwide Permit) from the U.S. Army Corps of Engineers
Consultation with U.S. Fish and Wildlife Service
Consultation with the State Historic Preservation Officer
There are no barriers identified for the successful permitting of this project.Once AEA
recommends the project for funding to the State legislature in January, AVEC will prepare a USACE
Nationwide Permit application (“Preconstruction Notice”)and conduct required consultation with
the State Historic Preservation Officer and U.S. Fish and Wildlife Service in order to be ready to
construct the project soon after funding. The permit would be expected within 4 months of
submitting the application and would be in hand prior to grant award.No work will be conducted
prior to obtaining required permits or authorizations.
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.
The intertie will be designed along the existing gravel road that connects the two communities
with 16 miles of new connection and will require an upgrade from single-phase to three-phase of
the existing 4 miles. The 65%design (previously provided to AEA)indicates it the intertie would be
located within DOT&PF road right-of-way.AVEC has current DOT&PF leases and sees no barriers to
placement of the new intertie along this low traffic road. Once AEA recommends the project for
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funding to the State legislature in January 2016, AVEC will secure approval from DOT&PF to place
the intertie next to the road.
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 major issues with constructing this project.AVEC has successfully
constructed successful interties in the recent past and will use their experience to implement this
project.
Concerns have been raised over the limited geotechnical information available for the alignment.
Based on preliminary geotechnical investigation,the alignment is suitable for a conventional direct
set power line intertie. The general geology in St. Mary’s and Mtn.Village indicates a variable
thickness of icy silt and frozen organic soil is present over bedrock in the area. AVEC has a long
history of experience in the St. Mary’s area with direct set pole construction. All power line poles
in the area are direct set and have been constructed during all seasons of the year.
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
Based on previous work that AVEC and their permitting consultants have completed on interties,
there are minimal environmental risks associated with the intertie.
Threatened or Endangered species.The U.S. Fish and Wildlife Service would be consulted to
ensure that the construction of the intertie would have no harmful impact on threatened or
endangered species. Construction would be timed to avoid impacts to migratory birds in
compliance with the Migratory Bird Treaty Act.This work would be initiated once the project is
recommended to the legislature for funding.
Habitat issues.During permitting, the project team would work with agencies to ensure that the
project would not impact any State refuges, sanctuaries or critical habitat areas, federal refuges or
wilderness areas, or national parks.
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Wetlands and other protected areas.There may be designated wetlands in the area.If so,an U.S.
Army Corps of Engineers’ wetlands permit would be needed.The project will fall under a
Nationwide Permit.
Archaeological and historical resources.Compliance with the National Historic Preservation Act
with the State Historic Preservation Officer would be conducted prior to construction of the
intertie.
Land development constraints.AVEC will have DOT&PF site control prior to bidding the project.
Aviation considerations.Federal Aviation Administration Determinations of No Hazard to Air
Traffic have been issued.
Visual, aesthetics impacts.Since the intertie would be constructed between the communities, it is
likely that there would be very little concern for visual or aesthetic impacts. AVEC would conduct
community meetings to discuss visual impacts and how they could be minimized, in the unlikely
event that visual impact issues arise.
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 existing diesel power plant in Mtn.Village consists of four generators: a 350 kW Cat 3412, a
505 kW Cat 3456, a 601 kW Cat 3412, and a 756 kW MTU 12V2000. These generators were
installed in 1984, 2005, 1982, and 2003 respectively. Aggregate generator efficiency in Mtn.Village
in 2014 was 13.85 kWh/gal. The peak load in 2014 was 556 kW (in January) with an average load
of 326 kW.
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Existing Energy Generation and Usage —Mtn.Village Power Plant
a)Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i.Number of generators/boilers/other 4 generators
ii.Rated capacity of generators/boilers/other 350 kW Cat; 505 kW Cat; 601 kW Cat;
756 kW MTU
iii.Generator/boilers/other type Diesel generators
iv.Age of generators/boilers/other 31 years;10 years; 33 years;12 years
v.Efficiency of generators/boilers/other Total efficiency 13.85 kW/gal
vi. Is there operational heat recovery? (Y/N) If yes
estimated annual displaced heating fuel (gallons)
No
b)Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i.Annual O&M cost for labor $160,000 (labor and non-labor; AVEC’s estimation based on
all AVEC owned generation facilities)
ii.Annual O&M cost for non-labor
c)Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt
grid, leave this section blank)
i.Electricity [kWh]2,855,753 (2014 generation report)
ii.Fuel usage
Diesel [gal]206,222 gallons (2014 generation report)
Other
iii.Peak Load 556 kW (January,2014 generation report)
iv.Average Load 326 kW (2014 generation report)
v.Minimum Load 261 kW (July, 2014 generation report)
vi.Efficiency 13.85 kWh/gallon (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.
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
AVEC established an Energy Vision for more reliable and affordable electric service for the Lower
Yukon Area, which includes Mtn.Village,St. Mary’s, and Pitka’s Point.This vision includes a wind
energy project to serve all three communities, improvements to the St. Mary’s power plant and
bulk fuel facility, and an intertie connection between the St. Mary’s wind farm and Mtn.Village
(proposed here).AVEC was awarded funding for a wind generation facility in St. Mary’s/Pitka’s
Point through the REF (Round 8), and AVEC’s High Energy Cost Grant (HECG)proposal for upgrades
to the St. Mary’s power plant and tank farm is under consideration by USDA Rural Utilities Service;
AVEC is confident the funding will be awarded.As proposed with a single EWT52-900 turbine, the
St. Mary’s wind project will provide ample energy to meet the combined peak winter electricity
loads of all the communities.The Mtn.Village—St. Mary’s Wind Intertie Project is the crux
component to realizing the Energy Vision goal of providing reliable and affordable power to
Mtn.Village, St. Mary’s, and Pitka’s Point.
The population of Mtn.Village, St. Mary’s, and Pitka’s Point grew by 3.5% between 2000 and 2013.
Demand for energy is only expected to increase as the population grows.Mtn.Village has been
working on a number of economic and community development projects, which demonstrate a
need for the intertie to supply wind-generated energy to the community.Currently,the
community is renovating their health care worker and Village Public Safety Officer housing.
Recent projects have included community facilities repair and renovations, a new road to the
graveyard, work on a fire truck/garage, community building improvements, work on a village
maintenance facility and a Head Start building, and water and sewer improvements.In addition,
DOT&PF recently improved the road between Mtn.Village and St. Mary’s.
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.
Mtn.Village is a PCE-eligible community.It is likely that energy costs for PCE customers will be
reduced.Power sales that are eligible for PCE will see 5% of the benefit of reduced electric costs in
their electric rates, with the other 95% accruing to the State of Alaska through reduced PCE credits
to end users.Electric customers not eligible for PCE will receive the entire benefit of reduced
power costs through their electric rates.
Because commercial enterprises in the communities are excluded from the PCE program,energy
costs for non-PCE commercial energy customers will be reduced with the proposed intertie and
additional wind power capacity and savings will be passed along to residents.Once this project is
constructed, these entities will see a savings in the cost of electricity. Local businesses, especially
the store, may pass this savings along to customers. The development and growth of local
businesses are crippled by the high cost of energy. Decreases in electricity costs make small
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businesses more viable in rural Alaskan communities like Mtn.Village which in turn makes
economic development and the addition of local jobs more likely.
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
AVEC is requesting funding to construct an intertie to provide wind energy generated at the St.
Mary’s/Pitka’s Point wind farm to the community of Mtn.Village.While this project is not a
renewable energy project, it does enable another community to take advantage of a wind project,
and it provides a cost-effective means of maximizing the usable output of the wind project.
Optimum installed capacity.The intertie would not have an installed capacity of annual
generation;however, the intertie would connect to a previously-funded wind project in which
AVEC intends to install EWT52-900 (50 meter hub height)installed near Pitka’s Point.Mtn.Village
would share the 900 kW installed capacity of the wind farm with St. Mary’s and Pitka’s Point.
Anticipated annual generation.The EWT52-900 wind turbine at 80%net annual energy
production (AEP),would generate 2,559,000 kWh/year.Of this amount,1,233,000 kWh/year
would be available to Mtn.Village, assuming 20% gross annual energy production (AEP) reduction
to account for losses including icing, 3% reduction for line loss, and 7.5% reduction of energy for
heat.
Anticipated Capacity Factor.The anticipated gross capacity factor is 40.5%. The net capacity
factor is 32.5%, which incorporates a 20% reduction for all losses including icing.
40.5% CF Gross Capacity Factor
32.5% CF Net Capacity Factor (CF for AEP reduced by 20% for losses)
Anticipated barriers.No barriers to successful construction of the intertie are expected. The
project will be designed and modeled using knowledge of previous successful intertie projects.
Integration plan/Delivery methods.The intertie would be incorporated into AVEC’s existing
distribution system in all three communities.This project proposes upgrades portions of both
Mtn.Village and St. Mary’s distribution systems from single-phase to 3-phase.
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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]
Intertie to proposed 900 kW EWT 52-900 turbine at St.
Mary’s/Pitka’s Point site
b)Proposed annual electricity or heat production (fill in as applicable)
i.Electricity [kWh]EWT 52-900 turbine at St. Mary’s/Pitka’s Point:
3,199,000 kWh/yr (total gross wind farm production)
1,233,000 kWh (to Mtn.Village, after 20% losses like
icing,3% line loss and 7.5% to heat)
ii.Heat [MMBtu]341 MMBtu (assume 7.5% turbine AEP as wind-to-heat)
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
d) i. Estimate number of hours renewable
will allow powerhouse to turn diesel engines
off (fill in as applicable)
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.
AVEC is planning to install separate meters on the St. Mary’s/Pitka’s Point wind system and the
intertie to Mtn.Village. The commonly chosen meter by AVEC is the Elster 16s (part number
ZD3300K0082). The meter accommodates remote data collection and costs approximately $400.
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)
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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 applicants.If used, please
submit the model with the application.
Potential Annual Fuel Displacement.AVEC will soon construct a wind energy system with an
EWT52-900 to serve St. Mary’s and Pitka’s Point. This project will connect Mt.Village to the
planned wind system.It is expected that 101,000 gallons of fuel/year will be saved by the
supplying wind power to Mtn.Village via the proposed intertie.About 2,020,000 gallons for fuel
will be saved over the lifetime of the intertie project.
Significant cost savings of $160,000 annually are expected through the conversion of the Mtn.
Village power plant to a stand-by generation facility.While this savings is not directly attributable
to the renewable energy project, the savings are real and provide meaningful support for the
intertie project.
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.
AVEC, the existing electric utility serving Mtn.Village, is a member-owned cooperative electric
utility and typically owns and maintains the generation, fuel storage, and distribution facilities in
the villages it serves. No power purchase or sale would be needed for this project.
Identification of potential power buyer(s)/customer(s).Energy produced from the completed
wind project and carried to Mtn.Village through the proposed intertie would be sold to AVEC’s
existing customer (member) base in the community.
Potential power purchase/sales price/Proposed rate of return from grant-funded project.The
sales price for the wind-generated electricity would be determined by the Regulatory Commission
of Alaska as is done in all AVEC villages.The delivered cost of energy would be reduced as much as
possible for customers within Mtn.Village under current regulations.Currently, of AVEC’s 56
villages, those with wind power systems experience the lowest electricity cost within the utility.
Similar energy cost reductions are expected upon project completion, as proposed in this
application.
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The intertie project has an expected payback of approximately 10 years (assuming a 20-year
project life).
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.
This project will not provide power to any large private-sector businesses. By reducing the cost of
power production, small businesses in Mtn.Village, including the stores (not eligible for PCE),will
see a cost savings,which may be passed along to residents in the form of lower product or services
prices.
Renewable energy resource availability (kWh per month)n/a
Estimated sales (kWh)n/a
Revenue for displacing diesel generation for use at private sector businesses ($)n/a
Estimated sales (kWh)n/a
Revenue for displacing diesel generation for use by the Alaskan public ($)n/a
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.
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 expects the final design,construction,and
commissioning phase of the project would cost $6,196,000.Additional funding for this phase
($3M) will come from the USDA RUS 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 will research and apply
for federal grants or grant/loan funds for the construction phase of this project. If unsuccessful in
pursuing grant funds, AVEC would look to loan programs for the construction of the St. Mary’s
Wind –Mtn.Village Intertie.
AVEC proposes to supply a substantial match because this project is very important to the
cooperative and its members, especially the residents of Mtn.Village and St. Mary’s/Pitka’s Point.
There are potential risks with securing the match; however, AVEC has been very successful with
obtaining funding for other interties (i.e. Stebbins-St. Michael) through various grant programs.
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Lower Yukon area and this project are especially well-suited for a number of grant programs,
described below.
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 managers will explore State funding programs including
the Community Development Block Grant program by teaming with the City of Mtn.Village and
federal grants such as the USDA’s RUS and the Tribal Clean Energy Program and the Indian
Community Development Block Grant with the Mtn.Village Tribe.
AVEC is not adverse to pursuing loans or bonds. AVEC now has an approximate total debt of $65 M
but is not close to its mandated debt ceiling. The Board of Directors may be inclined to approve
loan applications particularly if the loan would complete an otherwise nearly complete
construction project budget.
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding .
AVEC managers and engineers use their wide experience and knowledge gained from feasibility
studies and design processes to avoid construction cost increases.Cost estimates are taken very
seriously,are developed carefully,and when necessary are conservative.Cost overruns can
happen,particularly in rural Alaska where extreme weather or logistic problems not under AVEC’s
control can increase the best cost estimate.Per past practice,AVEC will cover any cost increase or
shortfall in funding necessary to complete a project once started.
To ensure the projects stay on schedule and within budget, AVEC follows the International
Cooperative Alliance’s Seven Principles of Cooperatives. One of the most important of those
principles is titled Democratic Member Control and refers to the men and women who serve as
representatives being accountable to the membership. AVEC’s member communities, especially
the community involved in a grant program such as the REF, have expectations for projects
regarding outcomes, schedule, budget, and quality of work. AVEC member communities and Board
of Directors receive regular project status updates. When problems are reported (either formally
through status reports or informally through other communications), member communities expect
solutions.
AVEC management will react quickly to any scheduling problems that might arise within AVEC or
with contractors to avoid major consequences for falling behind schedule. AVEC is responsible to
its member communities and a board of directors and provides a cash match to the project;
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
AEA 15003 Page 26 of 31 7/8/14
staying on schedule and within budget is essential. This project will result in decreasing electricity
costs, and AVEC’s member communities are very interested in this project because energy costs
can be a large portion of their budgets. AVEC member communities expect status updates on
village projects including when and what work will occur, who will be involved, and when it will be
completed. If work does not occur according to the schedule, AVEC’s CEO and Board of Directors
are often alerted by member communities, and there are repercussions.
6.2.4 Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
No subsequent phases are required beyond this, the construction phase of the project.
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,pipes, power lines,etc.) that
can be used for other purposes
The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
The project will solve other problems for the community (waste disposal, food security, etc.)
The project will generate useful information that could be used by the public in other parts of
the state
The project will promote or sustain long-term commercial economic development for the
community
Non-economic Public Benefits.This project will increase efficiencies of the energy system in Mtn.
Village.Mtn.Village and St. Mary’s/Pitka’s Point are isolated villages, accessible only by airplane,
barge, snowmachine,or small boat, and rely mainly on air transportation, especially for delivery of
medical goods and the transport of sick or injured individuals and mothers nearing childbirth.
Reliable electric service is essential to maintaining vital navigation aids for the safe operation of
aircraft; runway lights, automated weather observation stations, VASI lights, DMEs and VORs
(aircraft navigation systems) are all powered by electricity.
Emergency medical service is provided in the health clinics by health aides.Medical problems and
emergencies must be relayed by telephone or by some other communication means for outside
assistance. Tele-medicine is rapidly growing in rural Alaska as a means of regular and emergency
care. Reliable telephone service and tele-medicine require reliable and affordable electric service.
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
AEA 15003 Page 27 of 31 7/8/14
In Mtn.Village, water is obtained from wells and is treated. Community facilities--such as the
school--and homes are connected to a piped water and sewer system.Affordable electric service is
required for the continuous operation of the water and wastewater systems and to prevent
freezing of the systems, which would cause extensive damage and interruptions in service.
Like all of Alaska,Mtn.Village is subject to long periods of winter darkness.Affordable electric
service is essential for the operation of home lighting, streetlights, and security lighting. Outside
lighting ensures safety, especially of children, in the many dark hours of the winter months.
Lower efficiency is a problem that continues to plague small, remote villages that lack an economic
structure to support utilities and economies of scale. In many communities across the country,
small and large businesses -and perhaps industrial facilities-pay a larger share of utility costs than
do residential users. In doing so, they help pay for the necessary upgrades and improvements.
Some Alaskan communities have seafood processing plants or tourist facilities that pay a larger
share of the utility’s costs. But many Alaskan villages, including Mtn. Village and St. Mary’s, have
only state and federal programs, and their own -many times very poor -households to rely on to
operate and maintain what they have and in rare cases can build for the future.
This project will encourage development in Mtn.Village and will help stabilize the population
levels by lowering the cost of electricity to consumers in Mtn.Village, St. Mary’s, and Pitka’s Point.
The very high cost of electricity is particularly difficult for families, and a major hindrance for any
economic development to occur in already impoverished communities. Stabilized energy costs
would allow community entities, including the cities and Tribes to plan and budget for important
economic, land use, recreation and community service, and environmental goals.
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 local utility that has been in operation since 1968, AVEC is completely able to finance,
operate, and maintain this project for the design life. AVEC has capacity and experience to operate
this project. AVEC has experience in designing and constructing, operating and maintaining energy
systems throughout rural Alaska, including intertie projects.AVEC met reporting requirements for
22 state and 27 federal grants in 2014 and is current on all outstanding loans.
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
AEA 15003 Page 28 of 31 7/8/14
Commitment to reporting the savings and benefits: AVEC is fully committed to sharing the savings
and benefits accrued from this project information with its member communities and to sharing
information regarding savings and benefits with AEA.
Likelihood of resource being available over the life of the project:Previous studies have proven
that the wind resource will be available via the intertie through the life of this project.
Sufficient market for energy over the life of the project:We expect that the market will increase
over the life of this project.Development will likely increase upon lower energy costs that will be
provided by 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
AVEC has been working to ensure that this project is ready for construction upon grant award.
Intertie design (65% design) and a cost estimate have been completed for the project. FAA
permits for the poles near the airports have been secured.Other (minor) permit requirements
have been communicated with agencies, and permits for the intertie are expected before the
grant is awarded in July 2016.In addition,AVEC expects DOT&PF to grant right-of-way for the
project near the existing road between St. Mary’s and Mtn.Village before the grant is awarded.
With a mixture of outside funding and self-funding AVEC made progress on the 65% design and
cost estimate to be better situated to secure funding from the State of Alaska; however,AVEC
must be careful to not spend too much on a project that might not move forward without grant
funding. After AEA recommends the project to the State Legislature for funding, AVEC will move
forward with obtaining permits and securing right-of-way.Understanding that AEA’s
recommendation does not guarantee REF grant funding, AVEC will be able to move forward with
less risk to its members.
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
8,2015.
Renewable Energy Fund Round IX
Grant Application -Standard Form
MTN. VILLAGE-ST. MARY’S WIND INTERTIE PROJECT
AEA 15003 Page 29 of 31 7/8/14
All community entities in Mtn.Village and St. Mary’s are in full support of this project and look
forward to energy cost savings. Please see the attached letters of support in Tab B.
SECTION 10 –COMPLIANCE WITH OTHER AWARDS
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.AVEC’s
performance of REF grants’ milestone timelines may not have always hit within the bull’s eye but
certainly don’t miss the target altogether. 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.
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.
St.Mary’s to Mtn.Village Intertie 65% Design
FAA non-objection 2013-AAL-156 through 286 NRA
FAA non-objection 2013-AAL-236 through 287 NRA
SECTION 12 –LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
Tab A
Resumes
Tab A is provided as a separate file to this document.
Tab B
Letters of Support
CruY OF'SAII\III MARY'S
P.O. Box 209
St. Mary's, AK 99658
Phone: (907)438 -25L5 Fax: (907)438-27 19
August 26,2015
Meera Kohler, President and CEO
Alaska Village Electric Cooperative (AVEC)
4831 Eagle Street
Anchorage, AK 99503
Re: Letter of Support for the Renewable Energy Grant Program Round IX: St. Mary's/Mt. Village
Intertie
Dear Ms. Kohler,
The City of St. Mary's understands that Alaska Village Electric Cooperative, Inc. (AVEC) is
seeking grant funding to complete final design and to construct an electric intertie between St.
Mary's and Mt. Village to supply wind energy to nearby Mountain Village. We wish to express
our strongest support for AVEC's St. Mary's/Mt. Village Intertie application to the Alaska
Energy Authority's Renewable Energy Grant Program Round IX.
We are excited about and support the construction of the intertie because it will stabilize energy
costs for our neighbors in Mountain Village by sharing the benefits of the St. Mary's wind
project between our two communities. This project will help to alleviate high energy costs in
Mountain Village homes and community facilities because the need for a new power plant and
associated tank farm will be eliminated. Mountain Village would only need a backup generator to
serve the community. ln addition, this project would reduce overall operations and maintenance
costs of electric generation.
The City of St. Mary's fully supports these projects. These energy upgrades are necessary to
provide stable and reliable power to our neighbors in Mountain Village. AVEC is welcome to
include this letter in the grant application package.
Sincerely,
5t"13'\& ft;^A
Susana Stinnett
City Manager
Tab C
Heat Project Information
No information provided in this section.
Not applicable to this project.
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
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ST. MARY'S TO MT. VILLAGE
65% DESIGN SUBMITTAL
SHEET INDEX
INTERTIE PROJECT
AUGUST 2015
Anchorage, Alaska 995034831 Eagle Street
MOUNTAIN
VILLAGE
RUSSIA
ANCHORAGE
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KOTZEBUE
BARROW
JUNEAU
FAIRBANKS
CANADA
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UNALASKA
AVEC PROJECT NUMBER: 9712651
Anchorage, Alaska 995034831 Eagle Street
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