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HomeMy WebLinkAboutChugach - Signed AEA Round IX Grant Application'-----CHUG September 15 , 2015 Shawn Calfa, Grant Administrator Alaska Energy Authority 813 West Northern Lights Blvd . Anchorage, AK 99503 POWERING ALASKA'S FUTURE . Re: AEA 16012 -RE Fund Grant Application Round IX Dear Mr. Calfa: Enclosed you will find Chugach Electric Association's (Chugach's) renewable energy grant application for the evaluation of a community solar project. The grant application package includes: • The grant application including a grant/budget worksheet. • A resume for the project manager. • A signed resolution from Chugach's Board of Directors . • Letters of Support. • An organizational chart of Chugach's Power Supply Division. • An organizational chart of Chugach's Finance and Administratio n Division. The point of contact for this grant application is Ron Vecera, Chugach's Senior Manager of Risk and Renewables. He can be reached directly at 762-4759. Sincerely, ~&~ Bradley W.~(_ ChiefExec~fficer Chugach Electric Association, Inc. :, ) ' An:e, -,;c A';;sla 00:; '1;'-()J:_{) • (007,' 503·140.1 Fa< t907; 562{)()2.., • 8r'C/ J-'8-7 ..11111 t\\VV'. chv .. :"Jach r:fec r,_ o~rr • •nra:.\: .. 1ugac'~elec!r·c c:Jn., Renewable Energy Fund Round IX Grant Application -Standard Form Application Forms and Instructions ~~ENERGY AUTHORITY This instruction page and the followin g 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/REFund9 .html. • If you need technical assistance filling out th is appl icat ion , 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 li st 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 . AEA 15003 Page 1 of21 7/8/14 Renewable Energy Fund Round IX Grant Application-Standard Form • 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. AEA 15003 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. Page 2 of21 7/8 /14 Renewable Energy Fund Round IX Grant Application -Standard Form ~~ENERGY AUTHORITY SECTION 1 -APPUCANT INFORMATION Please specify the legal grantee that will own, operate, and maintain the project ~pon completion . I Name (Name of utility, IPP, local government, or other government entity) I Chugach Electric Association, Inc. Type of Entity: Fiscal Year End: Electric Cooperative December31 , 2015 Tax ID # 92-0014224 Tax Status: D For-profit 181 Non-profit D Government (check one) Date of last financial statement audit: December 31, 2014 Mailing Address: Physical Address: P.O. Box 196300 5601 Electron Drive Anchorage, Alaska 99519-6300 Anchorage, Alaska 99518 Telephone: Fax: Email: (907) 762-4759 (907) 762-4514 Ron vecera@chugachelectric.com I 1.1 Applicant Point of Contact I Grants Manager Name: Title: Ronald K. Vecera Senior Manager, Risk & Renewables Mailing Address: P.O. Box 196300 Anchorage, Alaska 99519-6300 I Telephone: Fax: Email: I {907) 762-4759 (907) 762-4514 Ron vecera@chugachelectric. com 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Title: Bradley W. Evans Chief Executive Officer Mailing Address: P.O. Box 196300 Anchorage , Alaska 99519-6300 I Telephone: Fax: Email: I (907) 762-4767 (907) 762-4514 Brad evans@chugachelectric.com I 1.1.2 Applicant Alternate Points of Contact Name: Telephone: Fax: Email: Connie Owens (907) 762-4747 (907) 762-4514 Connie owens@chugachelectric.com AEA 15003 Page 3 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 1.2 Applicant Minimum Requirements I:; ENERGY AUTHORITY Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. I 1.2.1 Applicant Type 181 An electric utility holding a certificate of public convenience and necessity under AS 42.05, or D An independent power producer in accordance with 3 AAC 107.695 (a) (1), or D A local government, or D A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. 181 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) 181 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) 181 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 htt~://www.akenergyauthority.org/REFund9.htrnl. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) 181 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) AEA 15003 Page 4 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form II SECTION 2-PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Evaluation of a Community Solar Project I 2.2 Project Location 2.2.1 Location of Project -Latitude and longitude (preferred), community name. street address, or 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. The project would be located on Chugach's campus at 5601 Electron Drive in Anchorage. 2.2 .2 Community benefiting -Name(s) of the community o r communities that will be the beneficiaries of the project. Chugach's retail consumers live in the communities of Anchorage, Indian , Girdwood, Portage, Hope, Moose Pass, Cooper Landing and Tyonek. 2.3 Project Type Please check as approwiate. I 2.3.1 Renewable Resource Type D Wind 0 Biomass or Biofuels (excluding heat-only) D Hydro, Including Run of River D Hydrokinetic D Geothermal, Excluding Heat Pumps D Transmission of Renewable Energy 181 Solar Photovoltaic D Storage of Renewable I D Other (Describe) D Small Natural Gas I 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction D Reconnaissance D Final Design and Permitting 181 Feasibility and Conceptual Design D Construction AEA 15003 Page 5 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form ~~ENERGY AUTHORITY 2.4 Project Description Provide a brief one paragraph description of the proposed project. The project is to evaluate the potential for solar energy in Alaska, and more specifically Anchorage, by conducting a feasibility, conceptual design and cost estimating study for a small-scale solar project on Chugach's campus. If feasible, Chugach has land available for an array of solar panels and the location proximate to Chugach 's system allows for ease of interconnection . 2.5 Scope of Work Provide a scope of work detailing the tasks to be performed under this funding request. This should include work paiq for by grant funds and matching funds or performed as in-kind match . The proposed work includes preliminary engineering, permitting assessment and economic evaluation to evaluate the feasibility of a community solar project. ! 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. Start End Milestones Tasks Date Date Deliverables Preliminary En2ineerin2 Team Se lection 711 /16 7/5/16 Site Ev aluation 711 /16 7115116 Site Plan 7 /15/16 8/1 /16 Calculate Solar Resources & Data Collection 7/15/16 7 /15 /17 Technology Assessment & Recommendations 7/15 /16 8/30/16 Preliminary System Design & Layout 9/1/16 10 /15/16 Grid Connection Design 9/1/16 10/15 /16 Infrastructure Requirements Preliminary E ngineering 10/1/1 6 10/31 /16 Documents Permitting Permitting Assessment 8/5/16 9/30/16 Preliminary Pem1it Application 10/111 6 10/31 /1 6 List of Required Penn its Economic Assessment Capital Cost Evaluation 10/1/16 10/3 1/16 O&M Evaluation I 0/1/16 10/3 11 16 Risk Factor Identification 10/1/16 10/3 1/16 Identification of F inancial Identification ofProj e ct Incentives -Grants & Tax 10 /1/16 10/31 /16 Costs AEA 15003 Page 6 of21 7/8 /14 Renewable Energy Fund Round IX Grant Application-Standard Form 3.2 Budget ~~ENERGY AUTHORITY Criteria: Stage 2-1.8: 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 complet ion and the anticipated nature and sources of funds. Consider all project phases, including future phases not covered in this funding request. The total project cost for this grant request is $200,000. Chugach is proposing to provide 50% of the cost, matching the requested grant amount of $100,000. Chugach's contribution will be provided by internally generated cash. It is difficult to provide a funding amount for all phases of the project as one of the expected outcomes of this initial phase is to be able to determine a cost estimate for the complete development and construction of the project. 3.2 .2 Budget Forms Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, Ill. 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 emai/ing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Source of Matching RE-Fund Grantee Funds: Milestone or Task Grant Matching Cash/In-kind/Federal TOTALS Funds Funds Grants/Other State 'Grants/Other (List milestones based on phase and type of project. See sections $ $ $ 2 .3 thru 2.6 of the RFA ) Feasibility & Conceptual Design: Preliminary Engineering $ 75 ,000 $ 75,000 Cash $150,000 Permitting Assessment $ 12,500 $ 12 ,500 Cash $ 25,000 Economic Assessment $ 12 ,500 $ 12 ,500 Cash $ 25 ,000 $ $ $ $ $ $ TOTALS $100,000 $100,000 $200,000 Budget Categories: Direct Labor & Benefits $ 15,000 $ 15 ,000 Cash $ 30,000 Travel & Per Diem $ 6 ,000 $ 6,000 Cash $ 12,000 Equipment $ $ $ Materials & Supplies $ 1,000 $ 1,000 Cash $ 2 ,000 Contractual Services $ 78,000 $ 78,000 Cash $156,000 Construction Services $ $ $ Other $ $ $ TOTALS $100 ,000 $100 ,000 $200,000 AEA 15003 Page 7 of21 7/8/14 Re n ew able Ener gy Fund Round IX j Grant Application -Standard Form -~ 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. The cost estimate for this phase of the project was developed internally by Chugach staff. One of the results of this project will be to develop detailed cost information for the final design and construction of the solar garden. 3.2.4 Funding Sources Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds reguested in this application $1 00,000 Cash match to be provi ded $1 00,000 In-kind match to be provided $ 0 Total costs for~rojectJ>hase(s) covered in application (sum of above) $200,000 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 $ Feasibility and Conceptual Des i gn $200,000 Final Des i gn and Permitting $ Construction $ Total Project Costs (sum of above) $200,000 3.2.6 Operating and Maintenance Costs O&M costs can be estimated in two ways for the standard application. Most proposed RE projects will fall under Option 1 because the new resource will not allow for diesel generation to be turned off. Some projects may allow for diesel generation to be turned off for periods of time; these projects should choose Option 2 for estimating O&M . Options O&M Impact of proposed RE project Option 1: Diesel generation ON For projects that do not result in shutting down $ Not Applicable. diesel generation there is assumed to be no impact on the base case O&M. Please indica te 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 1. Not Applicable . diesel generation 2. Hours diesel OFF/year: 2. Estimated hours that diesel generation will be off per year. 3 . $ 3 . Annual O&M costs associated with the proposed renewable project. AEA 15 003 P a ge 8 of21 7/8/14 Renewable Energy Fund Round IX Grant Application-Standard Form 3.3 Project Communications ~~ENERGY AUTHORITY 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. Chugach has received many grants administered by the AEA and is very familiar with reporting to AEA in the format required . Chugach has a solid working relationship with AEA staff and has consistently met its obligations to use public money as intended and to report project and financial information timely and accurately. In recognition of this, on July 21 , 2015 AEA sent Chugach a letter advising that Chugach is qualified to provide summary level information when requesting reimbursemen t of its grant expenditures . 3.4 Operational Logistics Criteria: Stage 2-1.0: 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. Operational logistics for this project are excellent. Being on Chugach 's campus facilitates operation and maintenance of the project as it is a very accessible, secure location and electrical workers and technicians are nearby. Project energy will become a portion of Chugach 's energy supply. Costs will be part of Chugach's revenue requirement and recovered through tariffed rates set by the RCA. Due to the small scale of the project, there will not be a noticeable impact to Chugach's costs or rates . II 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 2-2.8: 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 th is section . AEA 15003 Page 9 of 21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I= ENERGY AUTHORI1Y Project manager: Paul Risse, Senior Vice President, Power Supply (resume attached) Paul r isse@chugachelectric .com (907) 762-4532 Other Chugach Resources : Internal Engineering, Environmental and Technical Support (Power Supply Organizational Chart attached). I 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 Chugach has the internal resources to develop and manage the project. Chugach's Power Supply division has extensive experience in the development, design and construction of a variety of projects. Among this organization's most recent projects are the SOUTHCENTRAL Power Project (SPP) and the Stetson Creek diversion project. Part of this project will be to determine and evaluate contractor and supplier requirements and any other required expertise or resources that are specific to a solar project. I 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. Chugach has an experienced grant manager (Ron Vecera) who has managed numerous grants administered via the AEA. Mr. Vecera will be supported by Chugach's Finance and Administration Division. Chugach has extensive resources to properly account for capital projects, including grant accounting. There are several individuals who will be responsible for various aspects of accounting and assisting with grant management. In lieu of resumes, an organizational chart is attached which shows the management level positions in the Finance and Administration Division . Chugach has a proven track record of responsibly using and accounting for the public money provided by grants. I 4.1.4 Financial Accounting System AEA 15 003 Page 10 of21 7/8/14 Renew ab le Energy Fund Round IX Grant Application -Standard Fo rm ~~ ENERGY AUTHORITY Describe the controls that w ill 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. Chugach has vast experience with AEA grants. Chugach has had several Renewable Energy Fund grants, several State of Alaska legislative grants administered by the AEA and an Emerging Energy Technology Fund grant. Chugach is very familiar with grant accounting requirements and the types of costs that are eligible for reimbursement. Chugach has a long track record of providing timely and accurate financial reports related to our grants. Chugach uses project costing software designed to segregate costs by project, and has an internal review process that requires project managers review all reimbursement requests prior to submission. Chugach has filed annual State of Alaska s ingle audit reports for many years wh ich demonstrate ou r grant management capabilities and compliance with grant requirements . Chugach is very confident in its ability to manage and account for a grant in the manner AEA requires . 4.2 L ocal 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. Chugach has electricians and technicians on staff who are able to provide assistance during development as well as any ongoing operations and maintenance support. i SECTION 5-TECHNICAL FEASIBIUTY 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 e xtent/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 desig n and permitting or construction projects , please provide feasibility documents, design documents , and permitting documents (if applicable) as attachments to this application. This phase of the project will evaluate the development of a 0.5 megawatt solar project. The solar energy resource is available year-round, however, due to northern latitude location and varying seasonal solar radiation levels more information is needed regarding actual energy production in a northern solar garden project over the course of a year. This project will focus only on the Preliminary Eng ineering, Permitting Assessment and Economic Assessment milestones identified in Section 3 of this application . I 5.1 .2 Permits AEA 15003 Page 11 of 21 7/8 /14 Renewable Energy Fund Round IX Grant Application -Standard Form 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 The project will be located on Chugach property. At this stage no permits are believed to be needed and none are believed to be required until the project goes to construction. 5.2 Project Site Criteria: Stage 2-3.8: 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. If the project is ultimately built, it would be located on Chugach property at its main campus at 5601 Electron Drive in Anchorage. The land is secure, cleared, accessible and close to interconnection with the existing electrical system . There are no potential ownership issues . It is expected that two to four acres of land would be dedicated to this project. 5.3 Project Risk Criteria : Stage 2-3.C: Project technical and envir:onmental risks are reasonable. 5.3.1 Technical Risk Describe potential technical risks and how you would address them . Solar is an existing technology and project risk related to the technology is not significant. 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 A constructed project would be sited on Chugach property (Zoned 1-2) and none of these issues are believed to be of concern . However, a Permitting Assessment task is identified in the Preliminary Engineering milestone of the proposed project which will explore the risk potential of each of the identified Environmental Risk issues listed above . I 5.4 Existing and Proposed Ener.gy System AEA 15003 P age 12 of21 7/8/14 Renewable Energy Fund Round IX Grant Application-Standard Form I~ ENERGY AUTHORITY Criteria: Stage 2-3,0: 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. Chugach's hydro resources include the Cooper Lake power plant with a capacity of 19 .2 MW, a 30% ownership interest in the 47 MW Eklutna plant, and a 30% share of the energy generated by the State-owned 120 MW Bradley Lake project. Since September 2012 Chugach has been purchasing approximately 48 ,000 MWh per year of wind energy from the 17 .6 MW Fire Island Wind Project. Chugach 's existing energy system includes the 200 MW SPP, which consists of 3 natural gas combustion turbines and a steam turbine . Chugach owns 70% of this plant and Anchorage Municipal Light & Power (ML&P) owns the remaining 30%. This plant is the most efficient in the Railbelt with an average heat rate under 7,500 btu per kWh . The existing energy system also includes natural gas combustion turbines at Beluga (6 units) and International (2 units). The capacity of Beluga is 332 MW and the capacity at International is 28 MW . All of these turbines are well maintained but in the later portion of the life cycle (i.e., 30 to 50 years old). In addition to Chugach's existing resources, the City of Seward has an electric system consisting of diesel generators that are available for its use if the transmission line is down or Chugach needs to interrupt service to Seward. AEA 15003 Page 13 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I Existing Energy Generation and Usage I~ ENERGY AUTHORITY a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other ii i. Generator/boilers/other type iv . Age of generators/boilers/other v. Efficiency of generators/boilers/other 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 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] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Min imum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [ga l 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 Associa tio n, Golden Valley Electric Association , the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA 15003 Page 14 of21 7/8/14 Renewable Energy Fund Round IX Grant Application-Standard Form I::, ENERGY AUTHORITY 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. For the past several years energy use per consumer has gradually declined . This is likely due to conservation efforts including LED lighting and more efficient appliances. This trend will likely continue. 5.4.3 Impact on Rates Briefly e x plain 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. The project will have no effect on utility rates until such time as it is either developed or abandoned . In either case , the overall impact would be minimal. 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 project is an evaluation including the preliminary engineering to determine these items. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, To Be Determined. Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity (kWh] 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] iv. Other d) i. Esti mate number of hours renewable will allow powerhouse to turn diesel engines off (fill in as applicable) AEA 15003 Page 15 of21 7/8/14 Renewable Energy Fund Round IX Gr ant Application -Standard Form 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. A completed project will include metering equipment to measure the energy output of a solar energy source into the Chugach grid. ij 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 www.akenergyauthoritv.org/REFundB.html. 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. Economic benefit will be determined after the size and energy output of the project is known. Energy output will provide a basis to determine the reduction in fuel costs. Other costs, such as non-fuel operations and maintenance and the capital costs associated with the project will also be determined. 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. Chugach will use the solar energy from the project to meet its energy requirements. Costs will be included in Chugach 's revenue requirement and recovered via rates approved by the RCA These costs would be blended with other generation costs to determine the rate charged to consumers . An economic project will result in a solar energy cost that is competitive with the long term expected cost of gas fired generation . Chugach will not earn any rate of return on the portion of the investment provided by grant funding . Chugach earns a return in the form of a marg in, which is AEA 15003 Page 16 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form expected to be 10% of the annual long term interest expense on any loans Chugach uses to fund a project. 6.1.3 Public Benefit for Projects with Private Sector Sales For p rojects 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 . I Not applicable. 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 2-4.8: 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. Funding for the project will be from Chugach internally generated funds . Chugach has more than ample credit capacity to complete this project, including a commercial paper credit facility of $100 million , a line of credit of $50 million, and investment grade credit ratings that facilitate the ability to access the capital markets and convert short-term to long-term financing when desired . 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? Not applicable at this time , but see response above as to Chugach 's financial resources and financing abilities . 6.2.3 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. Any costs in excess of the grant funding will be borne by Chugach. 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 . See the response in 6.2.1 above . Chugach has earned margins and maintained an investment grade credit rating for many years. Chugach has internally generated cash as well as ready access AEA 15003 Page 17 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form ~~ENERGY AUTHORITY to external financing, as outlined above. There are no expected barriers or limitations to financing this 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 wou ld 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 This project phase will result in a publically available report that will provide cost and engineering in formation on the viability of a solar photovoltaic development on a utility scale in Alaska. Additionally, if the project is developed it would be located on land that is visible from Minnesota Drive, a heavily traveled highway in Anchorage. It would illustrate to the community that solar renewable energy development in Anchorage is both possible and viable in northern regions . SECTION 7 -SUST AINABILITY 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 A solar project would be very sustainable. The operations and maintenance evaluation for the l ife of the project is a task under the Economic Assessment milestone. Chugach has the capacity and resources to develop, operate and maintain a solar facility in a manner to ensure its expected life is realized. Chugach has the financial resources and rate recovery processes to support the project over its lifetime. Any energy from the project would be incorporated into Chugach existing power supply. No issues with sustainability are believed to exist. 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 : AEA 15003 Page 18 of21 7/8/14 Renewable Energy Fund Round IX j Grant Application -Standard Form • The phase( s) that must be completed prior to beginning the phase(s) proposed 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 in this According to the schedule presented in sections 3.1, Chugach will immediately proceed with this project. Land is already available, so the project will determine the specific portion to be dedicated to the solar project, planning and preliminary design of the system and a cost estimate to determine whether to move the project forward. 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. Letters of support are attached and have been received from Anchorage Mayor Ethan Berkowitz, the Alaska Center for the Environment and the Anchorage School Business Partnerships. 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. Chugach has previously received renewable energy and emerging energy technology fund grants from AEA. Chugach has also received numerous State grants that were administered by AEA. Chugach has a solid working relationship with AEA staff and has consistently met its obligations to use public money as intended and to report project and financial information timely and accurately. In recognition of this, on July 21, 2015 AEA sent Chugach a letter advising that Chugach is qualified to provide summary level information when requesting reimbursement of its grant expenditures . 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 . Not applicable . SECTION 12 -LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration. None. A EA 15003 Pag e 19 o f21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 1= ENERGY AUTHORITY II SECTION 13 -AUTHORIZED SIGNERS FORM Community/Grantee Name: Chugach Electric Association, Inc. Regular Election is held: Annually on the Fourth Thursday of May I Authorized Grant Signer(s): Printed Name Title Term Signature Ronald K. Vecera Senior Manager, Risk & Ongoing-((f(_lf~ Renewables Employee Printed Name Title Bradley W. Evans Chief Executive Officer Grantee Contact Information: Mailing Address: P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone Number: (907) 762-4759 Fax Number: (907) 762-4514 E-mail Address: Ron_ vecera@chugachelectric.com Federal Tax 10 #: 92-0014224 Please submit an updated form whenever there is a change to the above information. AEA 15003 Page 20 of21 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY 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 RF A 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 Bradley W . Evans Signature Title Date 1 /1 5/ I~ AEA 15003 Page 21 of21 7/8/14 CHUG!'.,.::-- RESOLUTION Alaska Energy Authority Renewable Energy Fund Round IX-Grant Application WHEREAS , Chugach Electric Association, Inc. (Chugach) is continually evaluating opportunities to develop renewable energy projects; and WHEREAS, the AEA is soliciting Renewable Energy Fund Round IX Grant Applications, and WHEREAS , a project to evaluate, design and estimate costs for a 0.5 megawatt community solar project is an eligible renewable project; and WHEREAS, C hugach has property available to site a community so lar project; and WHEREAS, an AEA grant application must include a governing body resolution supporting the grant application and ensuring compliance with applicable laws. NOW THEREFORE, BE IT RESOLVED, Chugach 's Board of Directors supports the preparation and submission of an AEA Renewable Energy Fund Round TX Grant Application. BE IT FURTHER RESOLVED, Bradley W. Evans, Chief Executive Officer, is authorized to commit Chugach to any obligations under the grant, including providing any required matching funds. BE IT FURTHER RESOLVED, Ronald K. Vecera, Senior Manager of Risk and Renewables, is designated as the point of contact to represent Chugach for purposes of this grant application. BE IT FURTHER RESOLVED, Chugach is in compliance with applicable federal, state and local laws including existing credit and federal tax obligations . CERTIFICATION J, Bruce M. Dougherty, d o hereby c enify that I am the Secretary of Chugach Electric Association. Inc., an elec tric non·prolit cooperative membership corporation organized and existin g under the laws of the Slate of Alas ka: that th e foregoing is a complete a nd con·ect copy of a resolution adopted at a meeting of the Board o f Di rec tors of this corporation, duty and properly called and ht!ld on th e ~day of August . 20 15 ; that a qu orum was present at the meeting; that th e resolution is sef forth in the minutes of the meeting and ha s not bet.'ll rescinded or modified . IN WITN ESS WHEREOF, I ho"O hcrru"JO wb"rib<d my "~"" offi"d lho ~I o~ ~ Municipality of Anchorage Office of rhe Mayor September 9, 2015 Brad Evans, Chief Executive Officer Chugach Electric Association, Inc. P.O. Box 196300 1\nchorage,AJ( 99519-6300 Re: Chugach • s Renewable Energy Fund Grant Application Dear Mr. Evans: Erha n Berkowitz, Mayo r On behalf of the Municipality of Anchorage, I am expressing my support for Chugach Electric's grant application to partially fund an evaluation of a community solar project that would be sited on Chugach property close to its headquarters in Anchorage. A local solar project has the potential to provide clean, renewable energy for years to come, and demonstrating the efficacy of solar is part of Anchorage's energy future. The project site is accessible and interconnection is readily available due to its proximity to the local system. Please feel free to include my comments in support of the project with Chugach Electric's grant application . Sincerely, Ethan Berkowi tz Mayor P.O . Bo• 196650 I t\nchougc, Al .. k~ 99519·6650 lucp://www.muni.org I rhonr: 90 " 343 ~100 FAX : 90" 343 "180 August 31 , 2015 Brad Evans, Chief Executive Officer Chugach Electric Association , Inc. P.O. Box 196300 Anchorage, AK 99519-6300 ALASKA CENTER FOR T H E ENVIRONMENT Re: Chugach's Renewable Energy Fund Grant Application Dear Mr. Evans: Alaska Center for the Environment (ACE) supports Chugach Electric Association's grant application to evaluate a community solar project at Chugach headquarters in Anchorage. ACE is Alaska 's largest statewide conservation organization, with goals of protecting salmon, increasing citizen 's voice in government, and promoting clean energy. A local solar project in Anchorage is in line with our goal of increasing renewable energy production in Alaska and decreasing harmful C02 emissions. This project has the potential to provide clean, renewable solar energy for years to come, offsetting the use of fossil fuels and increasing local electrical reliability. The project site is accessible and interconnection is readily available due to the proximity to the local system. With community engagement, and support from State of Alaska Renewable Energy Grant Fund, a Chugach solar project could become a reality. This project could chart the way for increased presence of solar power projects in the Alaska power generation portfolio. Finally, while the requirement for Alaska to comply with the terms of the EPA Clean Power Plan is deferred until a later date, ACE supports projects, such as a potential Chugach solar installation, that would ease the path toward compliance with Clean Power Plan requirements . Please feel free to include my comments in support of the project Chugach Electric Association grant application. Sincerely, Polly Carr Executive Director, Alaska Center for the Environment SBP Board of Directors Marla TI1ompson (Chair) Allstate Ins ura nce La ami Power (Vice Chair) Providence 1-fealth & Services Alaska Sabra Million (freasurer) Soullrcent-ral Foundation Dora Wilson (Secretary) NECAIIBEW Michae l Graham ASD Clrief Academic Officer J.J. Harrie r Northern Air Cargo Leverette H oover Siemens lndu slnJ Tim Thompson A laska Airlines Phyllis Halverson BMW of Anchorage Ta ra Ste phens BP Steve Halloran Visit A11chorage David Alexander Ni11 e Star Jan Abbott Rural Cap Jay Blury Nor tlrrim Bank James Kirkland Alaska VA Medical Center Adele Daniels }BER School Liaison David Kennedy Well s Fargo Don TI1 ompson Aurora Vending H eidi Embley ASD Communication s Juli e Vincek Kiug Career Ce11ter Anita Stevens Elementary School principal rep., Chi11ook Bri an Si ngl eton Begich Middle School Karin Parker SA VE High School Cheri Spink Exewtive Director Anchorage Sc'-1 District Es/,c:utin& All StudocJJ/or Swcnn In Lifo SCHOOL BUSINESS PARTNERSHIPS ... FOSTERING THE FUTURE August 28 , 2015 Brad Evans, Chief Executive Officer Chugach Electric Association, Inc. P.O. Box 196300 Anchorage, AK 99519-6300 Re: Chugach's Renewable Energy Fund Grant Application Dear Mr. Evans: On behalf of the Anchorage School Business Partnership program, I am expressing my strong support for Chugach's grant application to partially fund an evaluation of a community solar project that would be sited on Chugach property by its headquarters in Anchorage. A local solar project has the potential to provide clean, renewable solar energy for years to come, offsetting th e use of fossil fuels and increasing local reliability. Further, the project site is accessible and interconnection is readily available due to the proximity to the local system. Chugach Electric has been a wonderful School Business partner for many years helping our students understand the importance of energy conservation. Our schools have benefitted immensely by their commitment to education. This project is an excellent opportunity for our students and community to learn about and benefit from energy alternatives first hand. We enthusiastically support Chugach Electric in this endeavor. Please feel free to include m y comments in support of the project with Chugach Electric's grant application. Sincerely, Anchorage School Business Partnerships 5530 East Northern Lights Blvd . Anchorage, AK 99504-3135 www.asdk12 .org /sbp sbpartnerships@gmail .com (907) 339-7278, 742-4401 fax ANCHOAAGE CHAMBER or COMMERCE M i~e Brodie Manager, Environrnental Oepa~mont I Justin Penrreld Environmental EngH>eer Brian Goodman E nvtronme.ntal Todmidan POWE R SUPPL Y DIVISION Paul Rls.., Sr. VP Powor Supply Division DeannaScoH Executive AssiStant I Pout Johnson Manager. Control & Communication Systems Deporlment I BiiiMum~y ~Nisor Telecom 0ps and Malntenanc-At Section SCADA Soctioo Bur1<eWick Dtn>elor, System Control Depa~ment I BG!h Slpin Data Tact1n!coan JohnJoMson ~Nisor System OoeraHons Deefu!tz Operations Engineer Du•6n Higher. Director Power SUpply Technical Services Oopattment KalhrynUM Prolect AdmlniSlrator Aaron Love ~.ainlanance Planning Engineer SPP Power Plant Section Dan Malloon Operations Manager SPPWor1<Unll Paut Part< M81nteMnee Manoger SPPW~Unll Vae2nt Plant Engineer SPP Beluga P<>Ner Plant Seet.on Greg Bunting Supervisor Operations Wor1<Unll Jim MohaR SuperviSOI' Operations Wori<Unll Peaking & Hydro PowerPionls Section Robert Price Manager Power Supply Admin Departmont GeMn~tion Warehouseman Beluga Power Plant Warehouseman Beluga Camp Vatorio Beaudoin General Cler1< FacitiHes Mart.onanee ~ ... ~ Conswction & Ma.ntenaoce Loot Modified 9/1-41201 s ADMINISTRATION AND FINANCE DIVISION Sherri McKay-Highers CFO& Vice President Finance and Administration Division 1 I Dwight Dial RonVecera JodyWolfe Renee Curran Director S r. Manager Controller Manager lnfonnatlon Services Risk& Finance Budget-Financial Department Renewables Department Reporting I I Todd McCarty Scott Sanner Nancy·Humphrey' Kathy. Harris Sarah Bullock Project Manager Manager Sr. Purchasing Manager Financial lnfonnation Services Information Services Agent 1-General Accounting ...... Analyst Section & Technical Se~ Section Section Laurie Crawley Theresa Quigley Sr. Purchasing Agent Manager ...... Plant Accounting Section