HomeMy WebLinkAboutShishmaref App REF FinalRenewable Energy Fund Round IX
Grant Application
Shishmaref Wind Feasibility Project
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design 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 Corporation 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:
800.478.1818 800.478.4086 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
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 2 of 31 7/8/14
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 governing
authority is necessary. (Indicate by checking the box)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by
checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 3 of 31 7/8/14
SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Shishmaref Wind Energy Feasibility and Conceptual Design Project
2.2 Project Location
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information please contact
AEA at 907-771-3031.
Shishmaref is located on Sarichef Island, in the Chukchi Sea, just north of the Bering Strait.
Shishmaref is five miles from the mainland, 126 miles north of Nome, and 100 miles southwest of
Kotzebue. It lies at approximately 66.256670 North Latitude and -166.071940 West Longitude.
(Sec. 23, T010N, R035W Kateel River Meridian.)
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Shishmaref, Alaska with the population of 607 (2014 DCCED certified population) will be the
beneficiary of this project.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☒ Wind ☐ Biomass or Biofuels (excluding heat-only)
☐ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☐ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance ☐ Final Design and Permitting
☒ Feasibility and Conceptual Design ☐ Construction
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 4 of 31 7/8/14
2.4 Project Description
Provide a brief one paragraph description of the proposed project.
This proposal requests $152,000 and provides a match of $8,000 to conduct a wind power
feasibility and conceptual design project for the community of Shishmaref. AVEC, with the
cooperation of the community, proposes to assess the feasibility of wind resources suited to
provide power to Shishmaref and to prepare a conceptual design of a wind facility.
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.
AVEC proposes to install one wind meteorological (met) tower and complete geotechnical work to
determine the feasibility of installing wind turbines in Shishmaref. The work will involve obtaining
a letter of non-objection from the landowner for the placement of the met tower and geotechnical
fieldwork, permitting, transporting and installing a met tower at this location, studying the wind
resource for one year, and conducting a reconnaissance-level geotechnical investigation to
determine the soil conditions and needed engineering at the site. A conceptual design will be
created based on the outcome of the met tower recordings and ge otechnical investigation.
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 beginn ing and
ending of all phases of your proposed project. Add additional rows as needed.
The key tasks and their completion dates are:
Authorization to Proceed: August 1, 2016
Obtain Site Control/Right of Entry/Permits: September 2016
Ship Met Towers: October 2016
Erect Met Towers: October 2016
Monitor Met Tower Data: October 2016-September 2017
Geotech Field Work: October 2016
Geotech Report: December 2016
Dismantle Met Towers: September 2017
Wind Resource Report: October 2017
Conceptual Design and Cost Estimate: November 2017
Final CDR to AEA: December 2017
The schedule organized by AEA milestones is as follows:
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 5 of 31 7/8/14
Milestones Tasks
Start
Date
End
Date Deliverables
1. Project scoping
and contractor
solicitation
AVEC would select contractor(s) for the
wind feasibility, geotechnical analysis,
conceptual design, and permitting
immediately following AEA’s
authorization to proceed.
Aug 1,
2016
Aug 15,
2016
Contracts/ task
orders
2. Detailed resource
analysis
To initiate the Wind Resource Analysis
before winter, AVEC would ship the
met tower from Bethel to Shishmaref
and erect it in September 2016. AVEC
would seek approvals from permitting
agencies, before the grant is awarded
to ensure that the met towers can be
installed in the late fall. The earlier the
met towers are collecting data, the
earlier AVEC would have the wind
resource data to ascertain the
suitability of use of this renewable
resource. Monitoring of the met towers
would continue until September 2017,
when the met towers would be
dismantled. The wind resource report
would be drafted by the end of October
2017.
Under this milestone, a preliminary
geotechnical analysis would be done in
October 2016. This work will help to
guide later design work.
Sept 15,
2016
Oct 31,
2017
Energy Resource
Analysis Report
Preliminary
Geotechnical
Report
3. Identification of
land and
regulatory issues
AVEC would work with the Alaska
DOTPF to obtain a letter of non-
objection for the placement of the met
towers prior to the work. AVEC would
initiate negotiations of permanent site
control to place turbines, if feasible.
Aug 1,
2016
Sept 1,
2016
Right of Entry,
Letter of Non-
objection,
and
Long Term Lease
4. Permitting and
environmental
analysis
Research would be completed to
determine needed environmental
permits for the design and construction
phases of the project.
Sept 15,
2017
Dec 15,
2017
Section of the
CDR
5. Detailed analysis
of current cost of
energy and future
market
AVEC would analyze the existing and
future energy costs and markets in
Shishmaref. The information would be
based on AVEC records and community
plans. A community meeting would
help determine future energy markets.
Information regarding energy markets
June 1,
2017
August
30, 2017
Section of the
CDR
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 6 of 31 7/8/14
would be incorporated into the CDR.
6. Assessment of
alternatives
AVEC would review turbine and turbine
locations to determine the most
feasible project for the conditions and
community.
Feb 1,
2017
June
2017
Section of the
CDR
7. Conceptual design
and costs
estimate
Various wind turbines would be
examined to determine which would be
best suited to fit the lower energy
demand and single phase electric
system in Shishmaref. A reconnaissance
level geotechnical study would be
completed. A conceptual design and
cost estimate would be prepared using
information gathered from the wind
study.
Sept 1,
2017
Nov 1,
2017
Concept
Design
And
Cost Estimate
8. Detailed
economic and
financial analyses
An economic and financial analysis,
which examines potential final design
and construction costs, operating and
maintenance costs, user rates, and
other funding mechanisms, would be
developed and included in the CDR.
9. Conceptual
business and
operations plan
n/a; this work is not needed. As an
established and successful utility in
rural Alaska, AVEC successfully
operates wind projects and provides
power to customers in numerous
villages.
n/a
10. Final report and
recommendations
All of the memoranda and reports
written for the project would be
combined in a final report and
submitted to AEA. The Final CDR would
include the following information:
Wind Resource
Site Control Needs
Environmental Permit Needs
Existing and Future Energy
Costs and Markets
Economic and Financial
Analysis
Geotechnical Report
Conceptual Design Analysis and
Cost Estimate, including a
turbines analysis
Sept 15,
2016
Dec 31,
2017
CDR
3.2 Budget
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 7 of 31 7/8/14
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.
Total anticipated project cost, and cost for this phase/requested grant funding/matching funds.
AVEC plans to conduct a Feasibility Analysis, Resources Assessment, and Conceptual Design to
assess the possibility of using wind power in Shishmaref. This work would cost $1 60,000. AVEC
requests $158,000 from AEA. AVEC would provide $8,000 as a matching cash contribution.
Identification of other funding sources. Once the turbine type is determined, the next phase of
this project would be final design and construction. Although it is difficult to determine without an
assessment of the resource and what type, size, and number of turbines would be needed, AVEC
expects that final design and permitting would cost $350,000. It is possible that the funding for
future work could come from future AEA funding, USDA Rural Utility Service, or another grant
program with an estimated match from AVEC of 5% of the total design and permitting costs.
Projected capital cost of proposed renewable energy system/projected development cost of
proposed renewable energy system. The final phase of this project would be construction and
commissioning. AVEC estimates that this phase could cost $2,179,400. AVEC anticipates that it
would provide a 10% cash match for the construction phase.
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 the const ruction phase of this project. If unsuccessful in
pursuing grant funds, AVEC would look to loan programs for the construction of the Shishmaref
Wind Energy Project.
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 8 of 31 7/8/14
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
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
1. Project scoping and
contractor solicitation Aug-16 $950 $50 Cash $1,000
2. Detailed resource analysis Oct-17 $23,750 $1,250 Cash $25,000
3. Identification of land and
regulatory issues Jun-17 $4,750 $250 Cash $5,000
4. Permitting and
environmental analysis Dec-17 $5,700 $300 Cash $6,000
5. Detailed analysis of existing
and future energy costs and
markets Mar-17
$4,750 $250 Cash $5,000
6. Assessment of alternatives Feb-17 $2,850 $150 Cash $3,000
7. Conceptual design and costs
estimate Nov-17
Geotech Oct 17 $4,750 $250 Cash $5,000
Concept design Nov 17 $88,350 $4,650 Cash $93,000
8. Detailed economic and
financial analyses Oct-17 $9,500 $500 Cash $10,000
9. Conceptual business and
operations plan Oct-17 n/a
10. Final report and
recommendations Dec-17 $6,650 $350 Cash $7,000
TOTALS $152,000 $8,000 $160,000
Budget Categories:
Direct Labor & Benefits $7,125 $375 Cash $7,500
Travel & Per Diem $2,375 $125 Cash $2,500
Equipment $0 $0 $0
Materials & Supplies $0 $0 $0
Contractual Services $142,500 $7,500 Cash $150,000
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $152,000 $8,000 $160,000
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
Cost estimates are based on engineers’ estimates and AVEC’s past experience with similar wind
energy feasibility phase projects in rural communities.
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 $152,000
Cash match to be provided $8,000
In-kind match to be provided $
Total costs for project phase(s) covered in application (sum of above) $160,000
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 $ 0
Feasibility and Conceptual Design $ 160,000
Final Design and Permitting $ 350,000
Construction $2,179,400
Total Project Costs (sum of above) $2,689,400
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.
$3,000 (this phase); $21,794 (constructed
project based on AEA’s estimated cost of 1% of
initial capital cost)
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. $
2. Hours diesel OFF/year:
3. $
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 10 of 31 7/8/14
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 by AVEC’s Projects Development and Key Accounts Department.
AVEC will require that monthly written progress reports be provided with each invoice submitted
from primary contractor(s). The progress reports will include a summary of tasks completed, issues
or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project progress
reports will be collected, combined, and supplemented as necessary and forwarded as one
package to the AEA project manager each quarter.
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.
Meera Kohler, President and CEO, is the alternate point of contact for this project.
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.
Feasibility Phase: The met tower would require quarterly monitoring and data management. It is
expected that this would cost $3,000 total for the year that the met tower is erected. The cost
would be funded by this grant.
If wind turbines prove feasible and are added to Shishmaref’s energy system, the operating and
maintenance costs will be funded through AVEC’s general operating costs. Different turbines have
different operating costs; however using AEA’s default cost of wind energy, estimated O&M would
cost $21,794 (based on 1% of original capital cost). Lifetime logistical, business and financial
arrangements for operating and maintaining the project will be further addressed in the final
feasibility report.
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.
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 11 of 31 7/8/14
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 governm ent entity, state that in this
section.
Steve Gilbert, Manager, Projects Development and Key Accounts Department
Steve Gilbert has served as manager of the Projects Development and Key Accounts Department
for AVEC since 2012 where he leads a team focused on lowering the cost of energy in rural Alaskan
villages through improved power plant efficiency, wind and other renewable power generation ,
and interties between villages.
Previously, Mr. Gilbert worked at Chugach Electric for 17 years managing three po wer 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 o n renewables, especially wind. He also worked with
BP Wind in London assessing European wind prospects. To better evaluate investment
opportunities for his employer, Mr. Gilbert recently completed his 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;
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 12 of 31 7/8/14
• 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, customer
service, and others in its Anchorage central office and Bethel hub office, plus plant operators
within the communities.
Since 2000, AVEC has reliably and responsibly spent over $212 million of grant funds and its own
money to construct over 80 major projects. This includes 29 bulk fuel tank farm upgrades or
replacements, 12 new diesel-fired power plants, 4 standby backup power plants, 4 recovered heat
systems, 11 wind farms (34 total wind turbines), 5 village -to-village interties, 1 PV solar array, and
17 other generation and distribution upgrades. Funding for these projects has come from the
Denali Commission ($181 million), the Alaska Energy Authority ($24 million), USDA Rural Utilities
Service direct awards ($9 million), other grants ($3 million) and AVEC matc hing contributions ($20
million).
AVEC will use a project management strategy that has been successful in the feasibility phase, final
design, permitting and construction of its wind turbines throughout rural Alaska. That strategy
includes a team of AVEC staff and external consultants. AVEC staff and their role on this project
includes:
Meera Kohler, President and Chief Executive Officer, will act as Project Executive and will
maintain ultimate authority programmatically and financially.
Steve Gilbert, Project Development and Key Accounts 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 account ing,
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 the in-house design of power plants, distribution lines, controls, and other
AVEC facilities. Mr. Stamm has worked at AVEC since 1994. Mr. Stamm was the AVEC line
superintendent before he was appointed to Manager of Engineering in 2012. Mr. Stamm’s
unit will provide engineering design and supervision.
Mark Bryan, the Manager of Operations, is a Certified Journeyman Electrician and
supervises AVEC’s line operations, generation operations and all field construction
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
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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 Shishmaref residents and
key entities to ensure the community is informed.
Steve Gilbert will be responsible for the management of this project. He will work with AVEC’s
Community Liaison to involve the community in the project and gain site control. He will also
coordinate and manage the following consultants while ensuring that their deliverables are on
time and within budget. He will also be responsible for:
Obtaining site control/access and permits for the installation of the met tower and
geotechnical work
Selecting, coordinating, and managing the wind resource, geotechnical, engineering, and
permitting consultants and ensuring that their deliverables are on time and within budget .
Working with AVEC’s Community Liaison to develop the Existing and Future Energy Costs
and Markets Memorandum and the Conceptual Business and Operating Plan
Working to develop the Economic and Financial Analysis
Contractors for this project would include:
Wind Resource Consultant. AVEC currently has an on-call contract with V3 Energy, LLC for
wind resource studies and reports. It is likely that V3 would work on this project. Doug
Vaught’s (V3’s owner) resume is attached.:
Supervise the installation of the met tower
Consult on the operation and maintenance of the tower
Draft the wind resource report
Engineering consultant. AVEC would select and employ an engineering consultant who
would:
Provide conceptual design and engineering specifications for the wind turbines
Environmental Consultant. AVEC currently has an on-call contract with Solstice Alaska
Consulting, Inc. for environmental permitting. It is likely that Solstice would work on this
project. Robin Reich’s (Solstice’s president) resume is attached. Solstice would:
Consult with agencies
Develop and submit permit applications for the met tower
Document permit needs for future wind project
Selection Process for Contractors: The engineering consultant selection would be based upon
technical competencies, past performance, written proposal quality, cost, and general consensus
from the technical steering committee. The selection of the consultant would occur in strict
conformity with corporate procurement policies, conformance with OMB circulars, and DCAA
principles.
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 14 of 31 7/8/14
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.
For financial reporting, the Projects Development and Key Accounts Department’s accountant,
supported by the Administrative Services Department, will prepare financial reports. The
accountant will be responsible for ensuring that vendor invoices and internal labor charges are
documented in accordance with AEA guidelines. AVEC has computerized systems in place for
accounting, payables, financial reporting, and capitalization of assets in accordance with AEA
guidelines.
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 in the attachments.
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 emp loyees throughout the organization. The software is
comprised of a comprehensive suite of Daffron-brand modules including accounting
(payables/payroll/general ledger), work orders, purchase orders, customer service and billing, and
warehouse/inventory. Some ancillary functions are accomplished on spreadsheets with data
downloaded from the various Daffron modules.
Procedures and controls include but are not limited to adequate separation of duties, manager -
level approval of all expenditures, CEO-level approval of all major expenditures, a formal
purchasing system (including purchase orders) for acquisition of materials and components, and a
formal contracting system (including task orders) for acquisition of contractual services
(consultants, construction, etc.). Virtually all AVEC employees are users of the accounting system,
at least to a minimal extent. Primary users include the Accounting Department; all managers due
to their involvement in controlling and ensuring the propriety of costs; and the Pr ojects
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.
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AVEC’s team, with years of experience and knowle dge 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 (PM) is responsible for determining
whether costs are appropriate and acceptable. The PM reviews all invoices from contractors and
vendors and all in-house labor and equipment charges. Second, the Projects Development and
Key Accounts Department Manager (DM) reviews costs associated with outsourced services,
including consultant and contractor invoices, to ensure that the charges are reasonable. The DM
also reviews his department’s staff labor charges (timesheets) to th e 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 Projects 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 reimburseme nt), 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 tim es,
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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 addre sses local
labor in its bid documents as appropriate and allowed by law. For e xample, 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 thi s 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 w ages 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.
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According to the AEA Alaska high-resolution wind resource map developed in coordination with
the National Renewable Energy Laboratory and True Wind Solutions, Shishmaref is rated as a class
6 wind regime. However, the appropriate total rating would be determined by this feasibility
study.
No other alternative energy resources exist in Shishmaref.
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 Determination of No Hazard to Air Navigation Permitting. AVEC will seek a “Determination
of No Hazard to Air Navigation” from Federal Aviation Administration (FAA) for the met tower.
AVEC has started the process toward obtaining FAA approval for placement of a met tower.
After the turbine location and type have been selected, AVEC would seek a no-hazard
determination from FAA for the potential turbines. AVEC would do this early in the process to
ensure that adequate time and resources are allocated to this effort . It is expected to take about
three months to obtain the FAA determination for the turbines.
Endangered Species Act/Migratory Bird Treaty Act Consultation. Consultation with the U.S. Fish
and Wildlife Service (USFWS) in compliance with the Endangered Species Act and Migratory Bird
Treaty Act would be required to install the met tower. A finding letter stating that the project
would not be expected to impact threatened or endangered species or birds would be drafted and
submitted to the USFWS once AVEC is assured this project is funded. It is expected t hat AVEC
would receive concurrence from the Service within one month. The authorization would be issued
prior to initiating met tower work in September 2016.
Clean Water Act (Section 401) Permit. If the met tower is erected within designated wetlands, a
US Army Corps of Engineers authorization would be required. Because of the limited footprint of
the met tower and geotechnical work, a “Nationwide Permit” would be sought. The
application/preconstruction notice would be submitted to the Corps once funding is assured, and
the permit would be issued prior to initiating met tower work in September 2016.
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.
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Originally (for REF Round 5), AVEC looked at two sites for the placement of the met tower; both
locations are shown in the following figure. Further investigations determined Shishmaref Met
Tower Site 2 (see figure below) was the most suitable location for the met tower and possibly
future turbines.
Following its standard practices, AVEC has not obtained site control for the placement of the met
tower or geotechnical fieldwork at this point. A letter of non-objection will be sought from the
Alaska Department of Transportation and Public Facilities (DOTPF), the site owner, after feasibility
project funding is assured.
If the met tower site will become the site for the turbines, AVEC will work with ADOTP F for a long
term lease, as it has successfully done in the past.
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.
Site Control/Access. Sometimes site control for the placement of met towers or turbines is
difficult; however, AVEC has worked successfully with this DOT&PF to secure site control in other
communities in the past. It is not expected that gaining site control would be difficult.
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Weather. Weather could delay fieldwork and/or the erection of the met tow er; however,
experienced consultants, familiar with Alaskan weather conditions, would be selected. It is unlikely
that a delay in the total project schedule would occur if the fieldwork or erection of the met tower
is delayed. It is possible to erect the m et tower during winter months. The met tower would be
installed to handle the Shishmaref coastal Alaska winter weather conditions. The met tower
would be monitored by local AVEC personnel to ensure the met tower is up and functioning
properly throughout 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
Threatened or endangered species. The U.S. Fish and Wildlife Service (USFWS) would be
consulted to ensure that installation of a met tower and the construction of the wind turbines
would have no effect on threatened or endangered species, particularly spectacled eiders.
Construction would be timed to avoid impacts to migratory birds in compliance with the Migratory
Bird Treaty Act. A finding letter stating that the project would not be expected to impact
threatened or endangered species or birds would be drafted and submitted to the USFWS once
AVEC is assured this project is funded. It is expected that AVEC would receive concurrence from
the Service within one month. The authorization would be issued prior to initiating met tower
work in September 2016.
Habitat issues. During permitting, the project team would work with agencies to ensure that the
project would not impact any State refuges, sanctuaries, or critical habitat areas, federal refuges
or wilderness areas, or national parks.
Wetlands and other protected areas. If the met tower is placed in wetlands, a U.S. Army Corps of
Engineers’ wetlands permit would be needed.
Archaeological and historical resources. Compliance with the National Historic Preservation Act
and consultation with the State Historic Preservation Officer would be conducted prior to
construction of the wind turbines.
Aviation considerations: FAA Determination of No Hazard to Air Navigation Permit is required;
AVEC has initiated this process.
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Land development constraints: Clean Water Act (Section 401) Permit is required. If the met tower
is erected within wetlands, a Corps authorization would be required. Because of the limited
footprint of the met tower, a “Nationwide Permit” would be sought. The
application/preconstruction notice would be submitted to the Corps once funding is assured, and
the permit would be issued prior to initiating met tower work.
Telecommunications interference: The met tower site would be located so as not to interfere
with current telecommunication services.
Visual, aesthetics impacts: If final data supports placement of wind turbine s, AVEC will conduct
community meetings to discuss visual impacts and how they could be mitigated.
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 power generation system in Shishmaref consists of 4 diesel generators: a 363kW
Detroit Diesel S60K4 (the last overhaul was completed in 2010), a 350kW Caterpillar D353, a 397
kW Cummins K19G2 1800, and a 499kW Cummins QSX15 G9. These generators were installed in
2004, 1976, 2002, and 2006, respectively. Individual generator efficiency is not tracked, but the
aggregate diesel generator efficiency in 2014 was 12.9 kWh/gallon.
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a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 4
ii. Rated capacity of generators/boilers/other DD=363kW; CAT=350kW; CMS=397kW;
CMS=499 Total=1609kW
iii. Generator/boilers/other type Diesel engine generators
iv. Age of generators/boilers/other 11 years; 39 years; 13 years; 9 years
v. Efficiency of generators/boilers/other 12.9kWh/gallon (aggregate of all generators)
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.
Existing Energy Generation and Usage
vi. Is there operational heat recovery? (Y/N) If yes
estimated annual displaced heating fuel (gallons)
N
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $140,000/year (combined cost for labor and non -labor)
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] 1,673,756 kWh (gross; AVEC 2014 generation report)
ii. Fuel usage
Diesel [gal] 129,702 gallons (AVEC 2014 generation report)
Other
iii. Peak Load 328 kW (AVEC 2014 generation report)
iv. Average Load 191.32 kW (Annual average; AVEC 2014 generation report)
v. Minimum Load 150.25 kW (Average minimum; AVEC 2014 generation report)
vi. Efficiency 12.9 kWh/gallon (AVEC 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
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
Many years ago the village, as it was being eroded away, discussed and supported research to
relocate the community. However, since that time a seawall has been constructed to help
control the erosion, and the community no longer has any intention of moving away from its
present location.
The community is growing and improvements are planned, proving that the community is no
longer interested in relocating. The school is expanding to add new classrooms and a shop and a
newly constructed duplex will house two teachers. The clinic just completed a renovation and the
washeteria renovation is planned for next summer. In September 2015, ADOT&PF awarded a $6M
contract for the resurfacing of the airport runway. A new multi-purpose community building is
planned. Finally, AEA, the City, and the Tribe are considering a plan to construct a new tank farm.
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.
Shishmaref is a PCE-eligible community. It is likely that energy costs for PCE customers will be
reduced after installation of wind turbines. Power sales that are eligible for PCE will see 5% of the
benefit of reduced electric costs passed through to PCE-eligible customers in their electric rates,
with the other 95% accruing to the state of Alaska through reduced PCE credits to those
customers.
It is likely that energy costs for non-PCE commercial energy customers will be reduced and savings
will consequently be passed along to residents. Commercial enterprises in the communities are
excluded from the PCE program. 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 businesses more viable in rural Alaskan
communities like Shishmaref 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
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Renewable Energy Technology. Wind power is the renewable energy option of choice for
Shishmaref due to its coastal location. Currently, it is proposed that a 200kW capacity system
would be installed in Shishmaref, but the results of this study will determine which turbines are
appropriate.
Optimum installed capacity/Anticipated capacity factor/Anticipated annual generation. The
purpose of this work is to gather background information to plan a future alternative energy
facility. Anticipated capacity and generation would be examined for a number of turbine types to
determine the best option for the community.
Anticipated barriers. Weather, permitting, site control, and construction funding could be
barriers to project success. Weather is a minor barrier and does not pose a threat to the
completion of this project. Permitting, based on an initial investigation, does not appear to be a
significant hurdle to completing this phase of the project. Construction funding would be easier to
obtain with design and permits in hand. AVEC is confident that site control will not be difficult to
obtain, since AVEC has worked with the land owner, Alaska Department of Transportation and
Public Facilities, successfully in the past.
Integration Plan/Basic integration concept/Delivery methods. The wind turbines would need to
interconnect with the existing diesel power plant. Secondary load control would be studied to
determine whether dispatch boilers could be installed to use excess wind energy while allowing
the diesel generators to continue running at efficient levels. Conceptual design, to be completed
as a part of this project, would detail how power from a wind turbine would be integrated and
delivered into the existing system in Shishmaref.
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]
Wind 200kW capacity proposed
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 527,296 kWh
(assume Two NW100 B turbines, 37 m hub, 80% turbine availability,
Point Hope wind data used as surrogate for Shishmaref due to
similar coastal exposure to Chukchi Sea)
ii. Heat [MMBtu]
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]
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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.
Because this project involves feasibility, geotechnical and conceptual design work only, no meter
would be installed. AVEC installs meters on all renewable projects (primarily wind farm turbines)
and will install a meter turbine for this wind energy construction project. Metering equipment
specifications and costs would be determined during this phase.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel,
operation and maintenance, and capital costs over the life of the proposed project).
6.1.1 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings, and how the people of
Alaska will benefit from the project. The benefits information should include the following:
Anticipated annual and lifetime fuel displacement (gallons and dollars)
Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
Additional incentives (i.e. tax credits)
Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
The economic model used by AEA is available at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. This
economic model may be used by applicants but is not required. The final benefit/cost ratio used
will be derived from the AEA model to ensure a level playing field for all applicants. If used, please
submit the model with the application.
The primary financial benefit from this project would be to prepare a conceptual design of a wind
facility. A more refined project cost would be determined, and the project would be ready for final
design and permitting.
At present, Shishmaref has a stand -alone electric power system with no intertie or connection
beyond the village itself. The electricity consumption (sold) in Shishmaref in 2014 was 1,621,887
kWh. The load is highest during the winter months, with the bulk of electricity consumed by
residences and the school. If this study finds that winds are suitable, the addition of wind turbine
energy to the electric generation system could reduce the amount of diesel fuel used for power
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generation and for heating. Between January and December 2014, 129,702 gallons of diesel fuel
were consumed to generate 1,673,756 kWh.
The anticipated effects are less usage of diesel fuel for electrical power generation and less usage
of heating fuel for boiler operations (due to injection of excess wind power to the thermal heat
recovery loop). The diesel generator use in Shishmaref would be decreased, thereby decreasing
generator operations and maintenance costs and enabling generators to last longer and need
fewer overhauls.
Assuming installation of a 200 kilowatt (kW) capacity, it could produce 527,296 kilowatt hours
(kWh) annually. The possible displacement of diesel fuel used for village power generation in
Shishmaref could be 38,715 gallons per year. Using ISER’s model this project could save about
$133,701 during the first year of operation, projected to be in 2021 Based on those values,
estimated savings over the lifetime of the project is $2,039,097.
Shishmaref is a traditional Inupiat village with a fishing and subsistence lifestyle. Year -round jobs
are limited. Villagers rely on fish, walrus, seal, polar bear, rabbit, and other subsistence foods. Two
reindeer herds are managed from here. Refrigeration is essential for extended storage of
perishable food stuffs and reliable electric service is essential for proper freezer storage of food.
The construction of the proposed project would augment and improve the existing power
generation system by incorporating a locally available renewable resource.
Other economic benefits of this project include:
Stabilized electric costs in the future through decreased fuel use.
Reduced electric costs for non-PCE community institutions, which may allow for increased
or improved community or social services.
Reduced electric costs to other non-PCE commercial energy customers, such as the store,
which will stabilize living costs for residents.
Increased opportunity for local economic development.
Increased revenue for local businesses during the construction phase.
New jobs for local residents during project construction.
Increased longevity of the PCE fund through a reduction in PCE payments for residents and
PCE-eligible community facilities.
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.
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Identification of potential power buyer(s)/customer(s). AVEC, the existing electric utility serving
Shishmaref, is a member-owned cooperative electric utility and typically owns and maintains the
generation, fuel storage, and distribution facilities in the villages it serves. Energy produced from a
wind project would be sold to AVEC’s existing customer base in the community.
Shishmaref has 141 households and a health clinic, city office, tribal council office, and water
treatment plant/washeteria, which purchase power from AVEC.
Potential power purchase/sales price/ Proposed rate of return from grant -funded project. At
this point in project development, the potential power price and rate of return on the project i s
unknown. Work done under this grant will provide this information.
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.
N/A
Renewable energy resource availability (kWh per month)
Estimated sales (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
6.2 Financing Plan
Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant-
funded phase and has considered options for financing subsequent phases of the project.
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.
The source of funds needed to complete this phase of the Shishmaref Wind Energy Feasibility and
Conceptual Design project, $8,000, have been secured and obligated by AVEC. They are
designated as the matching funds for this project phase.
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
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funding packages with grant funds. AVEC managers will explore State funding programs (such as,
the Renewable Energy Fund and Community Development Block Grants) and, increasing more
important, federal grants such as the USDA’s Rural Utility Service, the Tribal Clean Energy Program
(with a tribal partner), and the Indian Community Development Block Grant.
However, AVEC is not adverse to pursuing loans or bonds. AVEC now has an approximate total
debt of $65 Million 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 working on projects use their wide experience and knowledge
gained from feasibility studies, solid geo-technical information, and design processes to avoid cost
increases. Cost estimates are taken very seriously and are developed carefully, and when
necessary, err on the heavy side. However, cost overruns do happen – particularly in rural Alaska
where extreme weather or out-of-AVEC’s-control logistics can increase the best cost estimate. As
AVEC has done in the past, it will cover any cost increase or shortfall in funding necessary to
complete a started project.
6.2.4 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.
AVEC anticipates requesting funds for final design and permitting in the next round of the
Renewable Energy Fund with a match of 5% from its own funds. Likelihood of receipt of those
funds is unknown. If unsuccessful in the competition for REF funds, AVEC will pursue other grant
funding that would include final design, permitting and construction.
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 the construction phase of this project. If unsuccessful in
pursuing grant funds, AVEC would look to loan programs for the construction of the Shishmaref
Wind Energy 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:
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 28 of 31 7/8/14
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
Shishmaref is a traditional Inupiat village with a subsistence lifestyle. The population is 607
(according to the 2014 DCCED certified count) and 94.57 percent identify a s Alaska Native. The
majority of residents rely upon fishing, hunting, gathering and trapping for their survival. Jobs are
limited to positions with the city, school, and few local businesses. Twenty -nine percent of the
Shishmaref population is below the poverty line and the median household income is $36,750.
Ninety-one percent of the school children receive free an d reduced lunches. Reducing the reliance
on diesel fuel power generation would provide long-term socio-economic benefits to village
households.
Shishmaref is an isolated village that relies on air transportation. Reliable electric service is
essential to maintaining vital navigation aids for the safe operation of aircraft. Runway lights,
automated weather observation stations, VASI lights, DME’s and VOR’s are all powered by
electricity.
Emergency medical service (EMS) is provided in a health clinic by a health aide and a Shishmaref
volunteer fire and EMS response team. Medical problems and emergencies must be relayed by
telephone or by some other communication means for outside assistance. Operation of the
telephone system requires electricity. Reliable telephone service requires reliable electric service.
Like all of Alaska, Shishmaref is subject to long periods of darkness. Reliable electric service is
essential for the operation of home lighting, streetlights, and security lighting. Outside lighting
greatly improves the safety of village residents.
In addition, the following important benefits will be realized:
Reduced fossil fuel emissions, which results in improved local air quality and decreased
contribution to global climate change.
Reduced fuel consumption, which reduces the volume of fuel transported and the
potential for fuel spills and environmental impacts.
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:
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 29 of 31 7/8/14
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 operates wind projects throughout
the state and is very familiar with planning, constructing, operating, and maintaining wind
systems.
AVEC is current on all loans and required reporting to the state and federal agencies that it is
involved with.
Resource availability will be determined in this feasibility phase and will be reported to AEA
within the Conceptual Design Report in December 2017.
Shishmaref is a thriving and growing community. The likelihood of sufficient market for energy
over the life of the wind turbines is not expected to decrease but this question will be addressed
in the final report.
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
The met tower site has been selected. A met tower presently located in Bethel has been deemed
usable for this project.
FAA permitting process for the met tower has been initiated.
Once funding is known to be secured, AVEC would seek a lease for the met tower from DOT&PF,
and begin the environmental permitting process. AVEC would seek contractors to install the met
tower and complete the geotechnical work once the grant agreement is in place.
Met tower installation and geotechnical work would occur before winter. Work that can be
completed before the wind study is completed would occur over the winter, including analysis of
current cost of energy and future market, and the economic and financial analyses. Once the wind
study is completed, the conceptual design and permitting would o ccur.
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 30 of 31 7/8/14
No other grants have been secured or are needed for this work now or in the past.
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.
The community is very committed to moving this project forward and fully supports this project.
Letters of support for this project have been received the City of Shishmaref, the Native Village of
Shishmaref, and Shishmaref Native Corporation . (Please see the attachments.) There is no known
or anticipated opposition.
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, covena nts, 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 com pletion of
prior phases.
Renewable Energy Fund Round IX
Grant Application - Standard Form
Shishmaref Wind Energy Feasibility and Conceptual Design Project
AEA 15003 Page 31 of 31 7/8/14
No other phases have been completed. Existing information regarding the project is found within
this application’s standard form.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
N/A
Tab A
Resumes
Tab A is provided as a separate file to this document.
Tab B
Letters of Support
Tab C
Heat Project Information
No information provided 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