HomeMy WebLinkAboutTDX Power Ref 9 Hydro Power Generator Adak Grant ApplicationSeptember 15, 2015
Grants Administrator Shawn Calfa
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
RE: REF9 AEA – Hydro Power Generator Adak
Dear Mr. Calfa:
TDX Power, Inc. (TDX) is pleased to submit the attached application for the Renewable Energy Grant Fund. The
purpose of this project is to install a hydroelectric turbine in the existing City of Adak domestic water supply line.
The initial study to this project has been completed by HATCH in February of 2013. Under this grant proposal,
TDX Adak Generating (TAG) the electric utility in Adak proposes to install a small hydroelectric turbine
generator in the existing Adak water supply line from Bonnie Rose Lake. There is currently an iron pipe from
Lake Bonnie Rose that we are proposing to use and there are two possible turbine house locations that have been
identified for installation. The turbine will replace an existing pressure reducing value (PRV) as part of the
project. This project is estimated to displace between 16,500 gallons of diesel fuel annually, in addition to
reductions of emissions.
The Hydro Power Generator Adak project will displace diesel fuel promoting a more efficient power system. As
such, we are seeking Renewable Energy Grant Funds in the amount of $294,102. TDX will match with 30% or
$126,044 in cash or in-kind contributions, for a total project cost of $420,146.
As president of TDX Power, Inc., I am authorized by the TDX Board of Directors to sign this application; commit
the company to provide the matching resources for the project at the match rates states in the application; and
commit the company to the obligations under the grant. In addition, I certify that TDX Power, Inc. is in
compliance with applicable federal, state, and local laws, including existing credit and federal tax obligations.
Further, I am the point of contact to represent TDX for purposes of this application. If there are questions or
additional information is required, my number is (907) 762-8450. If I am unable to be reached, please feel free to
contact John Lyons at jlyons@tdxpower.com or (907) 762-8478.
This is an exciting project for the residents of Adak. The prospects of further implementation of renewable
energy and the resulting independence and cost savings are significant for the people who live and work there.
We thank you for your favorable consideration of this application.
Sincerely,
Kord Christianson, President
TDX Power, Inc.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 1 of 28 7/8/14
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round VIII of the Renewable Energy Fund. A separate application form is available for projects
with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all
other projects, including projects that will produce heat and electricity. An electronic version of the
Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9.
If you need technical assistance filling out this application, please contact Shawn Calfa, the
Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.
If you are applying for grants for more than one project, provide separate application forms
for each project.
Multiple phases (e.g. final design, construction) for the same project may be submitted as
one application.
If you are applying for grant funding for more than one phase of a project, provide milestones
and grant budget for each phase of the project.
In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 ACC
107.605(1).
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are completed and funding for an advanced phase is warranted. Supporting documentation
may include, but is not limited to, reports, conceptual or final designs, models, photos, maps,
proof of site control, utility agreements, power sale agreements, relevant data sets, and other
materials. Please provide a list of supporting documents in Section 11 of this application and
attach the documents to your application.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed. Please provide
a list of additional information; including any web links, in section 12 of this application and
attach the documents to your application. For guidance on application best practices please
refer to the resource specific Best Practices Checklists; links to the checklists can be found
in the appendices list at the end of the accompanying REF Round IX RFA.
In the sections below, please enter responses in the spaces provided. You may add
additional rows or space to the form to provide sufficient space for the information, or attach
additional sheets if needed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final recommendations
are made to the legislature.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 2 of 28 7/8/14
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by the Authority. If you
want information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept confidential.
If the Authority determines it is not confidential it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 3 of 28 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)
TDX Adak Generating, Inc. (TAG)
Type of Entity: Fiscal Year End:
Electric Utility Sept. 30th
Tax ID # 26-3779676
Tax Status: X For-profit ☐ Non-profit ☐ Government (check one)
Date of last financial statement audit: May 2015
Mailing Address: Physical Address:
615 E. 82nd Ave., Suite 200 615 E. 82nd Ave., Suite 200
Anchorage, AK 99518 Anchorage, AK 99518
Telephone: Fax: Email:
907-762-8478 907-278-2332 jlyons@tdxpower.com
1.1 Applicant Point of Contact / Grants Manager
Name: Title:
John Lyons General Manager
Mailing Address:
615 E. 82nd Ave., Suite 200
Anchorage, AK 99518
Telephone: Fax: Email:
907-762-8450 907-278-2332 jlyons@tdxpower.com
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Title:
Kord Christianson President, TDX Power Inc.
Mailing Address:
615 E. 82nd Ave., Suite 200
Anchorage, AK 99518
Telephone: Fax: Email:
907-762-8478 907-278-2332 kord@tdxpower.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Daniel Lenel 802-730-4046 dlenel@tdxpower.com
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 4 of 28 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
X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
☐ A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
X 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate by checking the box)
X 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement (Section
3 of the RFA). (Indicate by checking the box)
X 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by checking
the box)
X 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 5 of 28 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.
Hydro Power Generator ADAK
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.
51.843106, -176.670155
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Adak, Alaska 99546
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding heat-only)
X Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☐ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance X Final Design and Permitting
X Feasibility and Conceptual Design X Construction
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 6 of 28 7/8/14
2.4 Project Description
Provide a brief one paragraph description of the proposed project.
The city of Adak (pop. 326) currently relies only on diesel powered generators to provide electricity
to households and businesses. The electric rates are of the highest in Alaska and pose an undue
burden on the community. Adak has high mountains with good snow cover that provide an
excellent water resource for hydropower. Currently the pipe line infrastructure is owned by the City
of Adak and TDX Adak Generating (TAG) will work with the City on the design, final configuration
approvals, construction and operation. A Hydroelectric Reconnaissance Study by HATCH (dated
2/16/2013, AEA REF grant 2195450) provided the base for assessing the hydro power potential.
An existing 10" ductile iron pipe from Lake Bonnie Rose to a pressure reducing station, originally
used to provide potable water to the now defunct military base, will be used as penstock to keep
the construction cost low. The turbine house location will be at the existing PRV station. The
estimated power production is 89 kW. The proposed hydropower solution would provide a
significant contribution to satisfy this demand. Since the most significant contributor to the high
electricity cost is the diesel fuel for the existing generators, we expect a substantial reduction in
fuel consumption with the addition of hydropower. The hydro power is expected to displace approx.
16,500 gallons of diesel fuel annually. The annual emission reduction is estimated to be 5/1.1/188
tons of NOx/CO/CO2.
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.
Based on the HATCH report, initial feasibility studies have been conducted.
1. Feasibility study
2. Conceptual design, cost estimate
3. Preliminary design
4. Permit applications
5. Final design
6. Construction
7. Commissioning
SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail.
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points in in your project along with estimated
start and end dates for each of the milestones and tasks. Please clearly identify the beginning and
ending of all phases of your proposed project. Add additional rows as needed.
Milestones Tasks
Start
Date
End
Date Deliverables
Feasibility study Feasibility study 9/5/16 12/20/16 Feasibility study
Conceptual design Conceptual design 9/21/16 10/20/16 30% design drawings
Preliminary design Preliminary design 10/21/16 12/13/16 70% design drawings
Permits Permit application 12/14/16 5/30/17 Permit to construct
Final design Final design 12/14/16 3/10/17 Construction documents
Construction Construction 5/31/17 6/25/18 Fully installed system
Commissioning Commissioning 6/26/18 8/7/18 Project completed
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 7 of 28 7/8/14
3.2 Budget
Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel, and
other project items meet industry standards or are otherwise justified.
3.2.1 Budget Overview
Describe your financial commitment to the project. List the amount of funds needed for project
completion and the anticipated nature and sources of funds. Consider all project phases, including
future phases not covered in this funding request.
Estimated project cost for is $420,146.
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.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 8 of 28 7/8/14
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
Feasibility study, conceptual
design $19,600 $8,400 In kind $28,000
TOTALS $19,600 $8,400 $28,000
Budget Categories:
Direct Labor & Benefits $3,267 $1,400 In Kind $4,667
Travel & Per Diem $6.952 $2,979 Cash $9,931
Equipment
Materials & Supplies
Contractual Services
Construction Services $8,566 $3,671 In Kind $12,237
Other $815 $350 Cash $1,165
TOTALS $19,600 $8,400 $28,000
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
Final Design, Permitting $48,007 $20,574 In kind $68,581
TOTALS $48,007 $20,574 $68,581
Budget Categories:
Direct Labor & Benefits $11,200 $4,800 In Kind $16,000
Travel & Per Diem $4,638 $1,988 Cash $6,626
Equipment
Materials & Supplies Cash
Contractual Services $1,408 $603 Cash $2,011
Construction Services $29,368 $12,586 In Kind $41,954
Other $1,393 $597 Cash $1,990
TOTALS $48,007 $20,574 $68,561
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 9 of 28 7/8/14
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
Construction, Commissioning $226,495 $97,090 In kind $323,585
TOTALS $226,495 $97,090 In kind $323,585
Budget Categories:
Direct Labor & Benefits $34,550 $14,807 In Kind $49,357
Travel & Per Diem $14,309 $6,152 Cash $20,461
Equipment
Materials & Supplies $79,784 $34,190 Cash $113,974
Contractual Services $2,960 $1,269 Cash $4,229
Construction Services $90,595 $38,827 In Kind $129,422
Other $4,297 $1,845 Cash $6,142
TOTALS $226,495 $97,090 In kind $323,585
3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
The cost estimates are based on HATCH study; dated February 2013.
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 $294,102
Cash match to be provided $49,113
In-kind match to be provided $76,931
Total costs for project phase(s) covered in application (sum of above) $420,146
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 $28,000
Final Design and Permitting $96,000
Construction $296,146
Total Project Costs (sum of above) $420,146
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 $ 12,500
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 10 of 28 7/8/14
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.
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. $
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.
1) Full time, experienced project manager
2) Continuous monitoring of project progress against detailed timeline
3) Communication plan with recipients of deliverables listed
4) Design reviews with all parties involved at the end of each project phase (see timeline)
5) Detailed project status report filed and presented to AEA the end of each project phase
6) Major contracts to be reviewed by AEA prior to award
7) Continuous update of all financials as the data becomes available. Monthly financial updates to
AEA
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.
1. Hydro turbine will be installed
2. Hydro turbine will be operated and maintained by TDX Adak Generating LLC as prime
generation asset
3. Small low load diesel generator will be added in future
4. Hydro turbine requires little maintenance, current operators can perform normal
maintenance.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 11 of 28 7/8/14
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully complete and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the applicant’s
capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would
like those excluded from the web posting of this application. If the applicant does not have a project
manager indicate how you intend to solicit project management support. If the applicant expects
project management assistance from AEA or another government entity, state that in this section.
Travis Hammond, Senior Project Manager, TDX Power, will serve as the Project Manager for this
project. Mr. Hammond also has 8 years specialized experience in protective relay design and
interface of AC/DC systems used in utility transmission and distribution systems. He has performed
and led product testing, working with technicians to troubleshoot problems. He has designed
analog and digital circuits for new products, schedules for software, manufacturing, and hardware
teams; and prepares operational and functional test documents. Mr. Hammond’s hands-on
experience will be beneficial in engineering design, construction and implementation for remote
systems worldwide.
4.1.2 Expertise and Resources
Describe the project team including the applicant, partners, and contractors. Provide sufficient detail
for reviewers to evaluate:
• the extent to which the team has sufficient knowledge and experience to successfully
complete and operate the project;
• whether the project team has staffing, time, and other resources to successfully complete
and operate the project;
• how well the project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts. Include brief resumes for known key personnel and contractors as an attachment to your
application. In the electronic submittal, please submit resumes as separate PDFs if the applicant
would like those excluded from the web posting of this application
Jan Tierson, BS Electrical Engineering, PE Alaska
Jan has more than 25 years of engineering experience in onsite and remote power generation,
power distribution and controls for petro-chem and industrial manufacturing industries, and medium
and low voltage power distribution and protection. His expertise includes combined heat and power
generation, grid interconnection, renewable energy, and islanded power systems. Jan has
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 12 of 28 7/8/14
extensive experience in leading project and construction activities, and vast experience onsite,
including commissioning and troubleshooting equipment and controls.
• Successfully commissioned NREL 300kW grid simulator and 250kW wind-diesel/
battery/rotary converter demonstration projects.
• Designed, installed, and commissioned an 80kW PV/diesel hybrid power plant in Lime
Village, AK; a 350kW diesel power plant on Monhegan Island, ME; a 275kW critical load support
system in Waterbury, VT; small roof top PV systems in Woods Hole, MA and Black Rock Forest,
Cornwall, NY.
Steve Hoskins, Electrical and Controls Engineer
Steve has more than 15 years of experience with system R&D, testing, tuning, and commissioning
activities. He has created simulations of nonlinear electromechanical energy conversion systems,
including wind turbines, PV arrays, AC machines (induction, synchronous, and PM-type
generators) and power electronic converters. Steve interfaces closely with structural, mechanical,
and software engineers and possesses vast experience working on multi-discipline teams and
collaborating with clients. He is proficient with many design software applications including
MATLAB/Simulink, SKM Power Tools, AutoCAD, HOMER, , GE Proficy, Woodward Toolkit, and
others.
• Commissioned two 100kW PM direct-drive pre-production wind turbines in the field: one for
the National Renewable Energy Laboratory, in Boulder, CO; and one for the Alaska Village Electric
Cooperative’s wind farm, in Kotzebue, AK.
• Led engineering design teams during several prototype product development programs:
• 100kW power converter redesign for the NW100 wind turbine
• 900kVA power converter for various commercial market applications
• 2.5kW wind turbine controller for small (residential scale) wind turbine
• Commissioned wind-diesel system equipment and controls for two 500kW wind turbines
and multiple CAT gensets for Sand Point, AK, and for three 225kW wind turbines and custom-
designed genset controls and switchgear for St Paul, AK. Performed a comprehensive power
system analysis establishing PV penetration limits as well as inverter and genset operational
considerations to ensure continuity of service with the installation of 2.5 MW of PV onto a
standalone diesel grid at the La Encantada silver mine in Mexico.
• Provided system integration design services for two remote island power system
applications involving PV array, battery bank, and multiple gensets with automatic sync controls
Daniel Lenel, Mechanical Engineer
Daniel Lenel, Mechanical Engineer, TDX Power Engineering. Daniel has more than 23 years of
experience in power generation, project engineering, product design, and management. His
expertise includes small power utility systems, harsh environment connectors, and connectivity
solutions. Daniel balances innovative design and engineering solutions with his multinational
expertise.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 13 of 28 7/8/14
• Successfully designed and commissioned CHP systems including largest CHP plant in
Geneva, Switzerland.
• Managed engineering team in China and USA for developing interconnection components
for photovoltaic panels.
Jason Motyka, Senior Electrical Designer/Field Technician
Jason has more than 15 years of experience in the power-generation industry with extensive
worldwide field services experience. He has experience in HMI development, PLC programming,
panel design, technical documentation, component specification and selection, and electrical
schematic development using an array of power generation sources including wind, solar,
hydrogen, and fossil fuel sources. Heavily involved with system design, testing, certification, and
commissioning, Jason is well suited to provide the technical support to help bring projects to a
successful completion.
• Provided a key role in securing UL, CSA, and CE certifications for the Northern Power
NW100 wind turbine. Leading cost reduction efforts, working with suppliers to improve quality and
reduce costs. Developed and maintained product documentation, including electrical schematics,
mechanical drawings, manuals, training, and service documentation.
• Supported numerous system integration projects involving multiple power sources
including; photovoltaics, wind turbines, engine generators, and micro turbines. Provided logistical
planning, project management, engineering, and design. Developed schematics and panel layouts,
selected and sized components, prepared technical documentation, and supported production and
installation.
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.
Laura Bain, Controller
Cindy L. Byfield, Project Costs and Controls
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.
TDX Power has stringent accounting policies and procedures in place which are according to
GAAP. All charges are reviewed for accuracy and for appropriate coding for the grant. Each cost
must pass an approval process to insure that it is allowed by the terms of the grant. Additional
review occurs when the grant reports are completed.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 14 of 28 7/8/14
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.
Construction phase: Construction force account labor will be furnished by TAG and TDX Power
and will recruit local labor as appropriate.
Operation: All operations, maintenance and administration work will be performed by TAG and
TDX Power.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 15 of 28 7/8/14
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.
Adak Island is part of the Aleutian island chain and has significant mountains with a high snowpack
in winter. The Hydroelectric Reconnaissance Study by HATCH (dated 2/16/2013, AEA REF grant
2195450) showed that the island has several excellent hydro power sites that have the potential to
completely power the entire island. The snowpack provides enough storage capacity so that there is
sufficient flow during all seasons.
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
Construction/Building Permit from City of Adak
Environmental Impact Review
US Fish and Wildlife Service Review
HATCH Report Section 5 - attached
Timeline anticipated 100 days for all permits.
A potential barrier could be livestock in the Lake Bonnie Rose identified by Fish and Wildlife Services,
which could hinder development of the hydroelectric power plant.
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.
This project proposes to use the existing dam (coordinates 51.823344, -176.675739) and penstock
from Lake Bonnie Rose to the current location of the PRV valve (coordinates 51.843106, -
176.670155)
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 16 of 28 7/8/14
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 17 of 28 7/8/14
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
1. Existing dam potentially deteriorated beyond repair;
Inspect dam during initial phase of project. (Note: The City is dependent upon this water
system infrastructure and expects to maintain the system in good working order)
2. Existing penstock potentially deteriorated beyond repair;
Inspect penstock during initial phase of project. (Note: The City is dependent upon this
water system infrastructure and expects to maintain the system in good working order)
3. Tail water discharge using Option A not established;
Identify discharge options during initial phase of project.
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
No significant environmental risks are anticipated.
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 principal prime generator is a Caterpillar 3456 generator rated at 450kW.
The other two units are Caterpillar 3516’s rated at 800kW each.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 18 of 28 7/8/14
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other - 3 – (2) 800kW units, (1) 450kW unit
ii. Rated capacity of generators/boilers/other - approx.. 2000kW
iii. Generator/boilers/other type - Diesel
iv. Age of generators/boilers/other (2) 1981 (800kW) (1) 2003 (450kW)
v. Efficiency of generators/boilers/other 70%
vi. Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $562,000
ii. Annual O&M cost for non-labor $14,000
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]
ii. Fuel usage
Diesel [gal] 154,574
Other
iii. Peak Load 265kW
iv. Average Load 240kW
v. Minimum Load 220kW
vi. Efficiency System is 70%
vii. Future trends None
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 19 of 28 7/8/14
5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
The population of Adak has increased between 2000 and 2013 by 3.2 %.
The very high electricity rates at Adak are a major complaint of the residents and prompted the
increased use of privately owned generators. The proposed hydro project would reduce the rates so
that residents with private generation are expected to return to the utility grid.
We therefore expect a slightly rising trend of the electricity consumption in the coming years.
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.
There are many variables that affect rate design. There has been no Cost of Service Study prepared
or other calculations performed that show a proposed interim rate redesign that TAG will propose for
the addition of small hydro. TAG is continuing to review its rate structure, revenues and expenses
and will be better situated to perform an analysis once its revenue requirement is determined.
Renewable energy impact on PCE. The Regulatory Commission of Alaska sets PCE rates based on
the information submitted in a required annual report. The commission calculates a unique rate for
each utility by analyzing fuel costs, non-fuel costs, and to some extent customer rates. The lack of
economies of scale leads to very costly electricity per unit of production by diesel as fixed costs
operating a rural electric utility are large and spread over a small consumer base. The PCE program
is effective at bringing the first 500kWh’s of Adak’s residential rates more in line to urban areas of
Alaska. Commercial customers are not eligible to receive PCE credit but would benefit from reduced
fuel consumption by displacing diesel oil with hydroelectric. Taking advantage of hydro electric
energy capacity to increase economies of scale to displace fuel oil usage certainly makes economic
sense.
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
The proposed location allows to select from several hydro turbine types:
a) Pelton turbine
b) Francis turbine
c) Turgo turbine
Each type has specific advantages/disadvantages; the final selection will be made during the initial
phase of the project.
The identified hydro resources would allow to power the entire island; the proposed project is a first
step in this direction. The project location and size was chosen to utilize the existing dam and
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 20 of 28 7/8/14
penstock as well as the easy access and vicinity to the existing power grid. However, there are
several other hydro sites on the island with equivalent or better potential.
The anticipated capacity factor is 100% since the outflow from Lake Bonnie Rose exceeds the
capacity of the existing penstock.
Anticipated annual generation is 779,640 kWh
Anticipated barriers: Potential deterioration of dam and penstock
The turbine generator will be connected to the existing grid, operated by TDX.
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]
89 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 779,640 kWh
ii. Heat [MMBtu] none
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] none
ii. Coal [tons or MMBtu] none
iii. Wood or pellets [cords, green tons,
dry tons]
none
iv. Other none
d) i. Estimate number of hours renewable
will allow powerhouse to turn diesel engines
off (fill in as applicable)
1752 h/a
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.
TDX Power will install two revenue grade meters on the system. One will be located at the hydro
site that captures total production a second meter will be located at the hydro site to record station
service. The estimated cost for additional metering on the project is $8,000.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 21 of 28 7/8/14
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.
It is estimated that the annual fuel displaced to be 16,500 gallons of diesel fuel; over a lifetime (50
years) this estimate will be 825,000 gallons of diesel fuel. This is a significant savings both
environmentally and financially.
A community that is energy self-sufficient is able to supply its own needs with minimal external
assistance is ultimately a more sustainable community. Our goal for Adak is utilizing 70% renewable
energy for electricity, heating and transportation by 2025. To achieve this goal Adak must capture
as much hydro power as possible. Realizing this goal will create design, construction, management,
operations jobs, with significant ancillary benefits for the community.
Renewable energy impact on PCE. The lack of economies of scale leads to very costly electricity
per unit of production by diesel. Fixed costs operating a rural electric utility are large and spread over
a small consumer base. The PCE program is effective at bringing the first 500kWh’s of Adak
residential rates more in line to urban areas of Alaska. Taking advantage of renewable energy
capacity to increase economies of scale to displace fuel oil usage certainly makes economic sense.
TAG electric utility “commercial” customers don’t receive a PCE benefit but do benefit from a lower
fuel consumption by hydroelectric generated electrons. The benefits from harnessing excess energy
are received primarily by commercial electric customers and electric customers not receiving the
benefit of PCE.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 22 of 28 7/8/14
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.
The proposed hydroelectric generator will be owned, operated, and maintained by TDX Adak
Generating LLC, a regulated electric utility.
The sale, rate and rate of return are governed by the rules of the RCA and are subject to approval
by the RCA.
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.
All electric consumers in Adak will benefit from hydroelectric generated power.
Reduced environmental impact. Displaced fuel oil emissions.
Scale of economy: Large commercial customers help carry the fixed costs, thus reducing the rate of
residential customers.
Reduced or eliminated diesel oil storage reduces the risk of oil spill
Renewable energy resource availability (kWh per month) 126,720
Estimated sales (kWh) 151,200
Revenue for displacing diesel generation for use at private sector businesses ($) unknown
Estimated sales (kWh) unknown
Revenue for displacing diesel generation for use by the Alaskan public ($) unknown
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.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 23 of 28 7/8/14
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?
TDX will pursue financial backing for proposed project.
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
TDX Power, Inc. and TAG are prepared to share cost over-runs.
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.
The proposed project will be complete and operational as described.
However, the additional hydro sites may be developed in future projects to make Adak 100%
powered by renewable energy.
6.3 Other Public Benefit
Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone will
not be presumed to be in the best interest of the public.
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that
can be used for other purposes
The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
The project will solve other problems for the community (waste disposal, food security, etc.)
The project will generate useful information that could be used by the public in other parts of
the state
The project will promote or sustain long-term commercial economic development for the
community
1. The project will reduce the cost of electricity substantially and thus provide economic
relieve to Adak residents.
2. The project will provide a major contribution to make the island independent on
imported energy and all the associated disadvantages (weather, barge schedule,
storage limitations on island etc.)
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 24 of 28 7/8/14
3. Hydro generators are highly reliable and require little maintenance. This will reduce the
risk of power outages.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 25 of 28 7/8/14
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
Include at a minimum:
Capability of the Applicant to demonstrate the capacity, both administratively and financially, to
provide for the long-term operation and maintenance of the proposed project
Is the Applicant current on all loans and required reporting to state and federal agencies?
Likelihood of the resource being available over the life of the project
Likelihood of a sufficient market for energy produced over the life of the project
TDX Power is a regulated utility with a proven track record to own and operate generation and
distribution systems successfully. TDX has all administrative and financial instruments to
successfully operate the hydro generator.
TDX Power and TAG are current on all loans and required reporting to state and federal agencies.
The hydro resource of Lake Bonnie Rose is more than sufficient to provide stable power at all
times.
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 project can go forward immediately after award of the grant.
1. Phases to complete prior to proposed project: None
2. Phases proposed in this project: Please refer to attached time line
3. Obtaining permits: will be part of proposed project.
4. Land access: Existing dam and penstock are accessible by existing roads
5. Equipment and materials will be purchased as part of the project.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. The Documentation of support must be dated within one year of the RFA date of July
8, 2015.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 26 of 28 7/8/14
Letter of Support – Layton Lockett, Adak City Manager
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.
TDX Power competitively won a $1.2 million Microgrid grant for DOE that will help identify and
control issues associated with fast, medium, and slow response renewable dispatchable loads.
TDX successfully intertied 2 x 225 kW wind turbines into the City of St. Paul’s electrical distribution
system and has the City’s support for Microgrid implementation.
TDX has successfully owned and operated a 550 kW (gross capacity) high wind penetration wind-
diesel system for the last 15-years (since 1999) that operates >20% of the time in wind-only mode
(diesel-off) without any electrical storage. This system supplies reliable electricity and heat to the
Business Park and industrial area next to the St. Paul airport.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of prior
phases.
1. Hydroelectric Reconnaissance Study by HATCH (dated 2/16/2013, AEA REF grant
2195450)
2. Adak Hydro Power Plant Using Existing Penstock (TDX study, dated 4/6/2015)
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
1. Time line (Gantt chart)
2. Cost estimate
SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
Kord Christianson President, TDX Power, Inc.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 27 of 28 7/8/14
I authorize the above person(s) to sign Grant Documents:
(Must be authorized by the highest ranking organization/community/municipal official)
Printed Name Title Term Signature
See attached TDX Power
Board Resolution
Grantee Contact Information:
Mailing Address:
615 E 82nd Ave; Suite 200
Anchorage, AK 99518
Phone Number:
907- 762 - 8450
Fax Number:
E-mail Address:
Kord@tdxpower.com
Federal Tax ID #:
26-3779676
Please submit an updated form whenever there is a change to the above information.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 28 of 28 7/8/14
SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information and resumes of Applicant’s Project Manager, Project
Accountant(s), key staff, partners, consultants, and suppliers per application form
Section 3.1, 3.4 and 3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web site.
B. Letters or resolutions demonstrating local support per application form Section 9.
C. For projects involving heat: Most recent invoice demonstrating the cost of heating
fuel for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s governing
body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to commit the
organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. An electronic version of the entire application on CD or other electronic media, per
RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful and
correct, and that the applicant is in compliance with, and will continue to comply with, all
federal and state laws including existing credit and federal tax obligations and that they
can indeed commit the entity to these obligations.
Print Name Kord Christianson
Signature
Title President, TDX Power
Date 9/15/2015