HomeMy WebLinkAboutSigned resolutionINSIDE PASSAGE ELECTRIC COOPERATIVE
RESOLUTION NO.2015-13
INSIDE PASSAGE ELECTRIC COOPERATIVE, INC.
September 30, 2015
ENTITLED: AUTHORIZING THE CEO/GENERAL MANAGER TO APPLY FOR $3.92
MILLION IN GRANT FUNDING FOR GUNNUK CREEK HYDRO PROJECT IN KAKE,
ALASKA
WHEREAS, Inside Passage Electric Cooperative, the City of Kake, and the Organized
Village of Kake (OVK) have pursued the electric transmission intertie between Kake and
Petersburg since about 2001, which would allow IPEC to purchase firm power from the Southeast
Alaska Power Agency (SEAPA); and
WHEREAS, the recent reinstatement of the "Roadless Rule" in the Tongass National
Forest along with inflation and other factors has increased the recent estimated cost of the intertie
to $66 million; and
WHEREAS, the State of Alaska is currently in a fiscal crisis due to low oil prices and a
declining supply, making the chances for continued funding of its Renewable Energy Fund (REF)
less and less likely well into the future, while other grant sources for projects are inconsistently
funded and increasingly competitive; and
WHEREAS, the high costs of capital for IPEC's renewable energy project plans require
large amounts of grant funding to result in reduced costs and rates to IPEC's members; and
WHEREAS, the recently completed Gunnuk Creek Reconnaissance study indicates
significant cost savings and benefits to the community of Kake from development of the project,
which supports IPEC's plans to reduce costs and rates to its member -owners by providing clean,
renewable energy; and
WHEREAS, the IPEC Board of Directors at its April 30, 2015 authorized an expenditure
of general funds up to $250,000 to completely prepare the Gunnuk Creek project to begin
construction activities July 1, 2016, and HDR has agreed to do this work on behalf of IPEC over
this timeline; and
WHEREAS, the State Renewable Energy Fund has asked for grant applications for Round
IX, and the Gunnuk Creek hydro is eligible for up to a total of $4 million. IPEC already received
$80,000 in grant funding last year to pay for the Gunnuk Creek reconnaissance study, leaving a net
amount of $3.92 million of REF grant funds IPEC is eligible to apply for to construct the project.
IPEC will apply for other grants for the project, but can also borrow funds to bridge any funding
gaps.
NOW, THEREFORE, BE IT RESOLVED, that the IPEC Board of Directors hereby
commits to provide matching resources for the project at the amounts indicated in the application;
authorizes the CEO/General Manager the authority to commit IPEC to the obligations under the
P.O. Box 210149 Auke Bay, Alaska 99821 (907) 789.3196 Fax (907) 790-8517
Inside Passage Electric Cooperative
Resolution 2015-13 Gunnuk Creek Hydro Project
September 30, 2015
REF grant by signature; authorizes the CEO/General Manager to apply for $3.92 million in grant
funding for the Gunnuk Creek Hydro Project in Kake, Alaska, and designates the CEO/General
Manager the point of contact to represent IPEC for purposes of the application. We hereby certify
that IPEC is in compliance with all applicable federal, state, and local laws including existing credit
and federal obligations.
PASSED, APPROVED AND ADOPTED by a vote of 5 Yeas, -6 Nays, and
Absent this 30th day of September, 2015.
Grace Villarreal, President
ATTEST:
Wilbur Brown, Secretary/Treasurer