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HomeMy WebLinkAboutOldHarborHydro_REFApp09192014AVEC ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. September 22, 2014 Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503-2495 Attn: Shawn Calfa RE: Renewable Energy Fund Grant Program Round 8: Old Harbor Hydroelectric Project Dear Mr. Calfa and Review Panel: The Alaska Village Electric Cooperative, Inc. (AVEC) respectfully submits the enclosed application for grant funds available through the Renewable Energy Fund Grant Program. Our application requests $1,092,500 for a design and permitting project for the community of Old Harbor on Kodiak Island. With funding obtained through AEA's program and an AVEC cash match of $57,500, AVEC proposes to complete all design and permitting work in order to have a shovel-ready project. The Old Harbor Hydroelectric Project has received prior renewable Energy Funding (round four) and Community Development Block Grant funds, as well as AVEC funds. It is ready to move to final design of the basin diversion project which will be located on East Fork Mountain Creek and Lagoon Creek Tributary. The Project would initially be capable of generating an average of about 2,300,000 KWh annually and could grow to an annual generation of 3,520,000 kWh once demand warrants. The project would run year round and meet the existing and future electricity demand of the community. Please do not hesitate to contact me or Steve Gilbert, AVEC's Projects Development and Key Accounts Department Manager, if you have questions. Sincerely, V" 6 10~ Meera Kohler President and CEO cc: Steve Gilbert, AVEC Enclosures 4831 Eagle Street .Anchorag. Alaska 99503-7497 .(907)561-1818 • In State(800)478-1818 .Fa.x (907)561-2388.In State (866)6l-2388 Renewable Energy Fund Round 8 Grant Application Old Harbor Hydroelectric Project Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 1 of 35 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Village Electric Cooperative, Inc. Type of Entity: Fiscal Year End: Not-for-profit December 31 Tax ID # 92-0035763 Tax Status: ☐ For-profit Non-profit ☐ Government (check one) Date of last financial statement audit: April 7, 2014 Mailing Address: Physical Address: 4831 Eagle Street Anchorage, AK. 99503 4831 Eagle Street Anchorage, AK. 99503 Telephone: Fax: Email: 800.478.1818 800.478.4086 sgilbert@avec.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Steve Gilbert Manager, Projects Development and Key Accounts Mailing Address: 4831 Eagle Street Anchorage, AK 99503 Telephone: Fax: Email: 907.565.5357 907.561.2388 sgilbert@avec.org 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Meera Kohler 907.565.5351 907.561.4086 mkohler@avec.org Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 2 of 35 7/2/14 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☐ A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate by checking the box) 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate by checking the box) 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at http://www.akenergyauthority.org/REFund8.html. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 3 of 35 7/2/14 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Old Harbor Hydroelectric Project Geotechnical Study and Final Design 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, 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. Old Harbor (pop. 193) is located on the southeast coast of Kodiak Island, 70 miles southwest of the City of Kodiak and 322 miles southwest of Anchorage. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The residents, businesses, local government, and tribe of Old Harbor will be the beneficiaries of this project. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind ☐ Biomass or Biofuels (excluding heat-only) Hydro, Including Run of River ☐ Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy ☐ Solar Photovoltaic ☐ Storage of Renewable ☐ Other (Describe) ☐ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance Final Design and Permitting ☐ Feasibility and Conceptual Design ☐ Construction Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 4 of 35 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. The Alaska Village Electric Cooperative (AVEC), the electrical utility provider in Old Harbor, is proposing to complete geotechnical field work and final design for a hydroelectric project in Old Harbor, Alaska. The 262 kilowatt (kW) (initial; nominal) basin diversion project will be located on East Fork Mountain Creek and Lagoon Creek Tributary. The project will be capable initially of generating an average of about 2,018,924 kilowatt-hours (kWh) annually and could grow to an annual generation of 3,470,000 kWh when demand warrants and an additional turbine is installed. The project will run year-round and meet all the existing and future electricity demands of the community. Power from the facility would also be used to heat the school, saving up about 8,370 gallons of diesel heating fuel annually. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) Detailed benefits of this project are included in Section 5.0 and summarized below: During design (this phase) the following benefits will be realized: • The primary benefit of this project will be to complete the geotechnical investigation and reporting for the intake site and to prepare the final design for a hydroelectric facility in Old Harbor. When this critical work is completed, AVEC will be able to seek and acquire funding for construction of the project. • Collection of field information will benefit the U.S. Fish and Wildlife Service (USFWS) and add to the overall knowledge of the Kodiak National Wildlife Refuge. Construction activities will have the following benefits: • The project will have a positive economic impact due to the availability of jobs and need for local services related to construction. After construction many benefits will result: • The project will displace fuel consumed by power and heat generation in Old Harbor. At ISER’s projected fuel costs, the project will save about $ 406,571 during its first year of operation (2018). Over the life of the project, 50 years, the total benefits would be approximately $17.6 million.  Excess power from the facility would be provide to the school as heat, saving up to 8,370 gallons/year or about $3.4 million over the life of the project.  New businesses could be established because of stabilized power costs. • Stabilized power costs will allow for improved operation of existing public services. • A new road will be established to the powerhouse, providing residents more access to subsistence and recreational resources. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 5 of 35 7/2/14 • The project will improve habitat along the existing ATV trail to Swimming Pond as traffic will flow to the new powerhouse access road instead of braiding through wetlands and streams. • The community goal of constructing a hydroelectric facility – a goal that has been documented in various local plans over the years – will be realized. • Fossil fuel emissions will be reduced, resulting in improved air quality and decreased contribution to global climate change. • The potential for fuel spills and contamination will be reduced, since less fuel would be transported into the community. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total project cost for the geotechnical report and final design for the hydroelectric project in Old Harbor is $1,150,000 of which $1,092,500 is requested in grant funds from AEA. The remaining $57,500 (5%) will be matched in cash by AVEC. 2.7 COST AND BENEFIT SUMMARY Include a summary of grant request and your project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $1,092,500 2.7.2 Cash match to be provided $57,500 2.7.3 In-kind match to be provided $ 2.7.4 Other grant funds to be provided $ 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $1,150,000 Other items for consideration 2.7.6 Other grant applications not yet approved $ Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 6 of 35 7/2/14 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 9,200,000 $260,000 additional for other benefits 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 2.7.9 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ 851,436 (electric first year) $52,532 (heat first year) $ 15,600,000 (net present value [NPV] electric and heat savings over 50 year life) 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. AVEC, as the electric utility serving Old Harbor, will provide overall project management and oversight. Steve Gilbert is manager of Projects Development and Key Accounts for AVEC where he leads a team focused on lowering the cost of energy in rural Alaskan villages through improved power plant efficiency, wind and hydroelectric power, and interties between villages. Previously, Mr. Gilbert worked at Chugach Electric for 17 years managing three power plants, including the 40MW Cooper Lake Hydroelectric facility. During the time Mr. Gilbert managed the Cooper Lake plant, it was re-licensed for 50 years. He served as lead electrical engineer for a 1 MW fuel cell and micro-turbine projects and wind energy project development. Mr. Gilbe rt is recognized as an industry leader on wind energy and has been active on a national level in operation and maintenance of wind power plants. He was Alaska’s Electrical Engineer of the Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 7 of 35 7/2/14 Year in 2000 and for the 12 western states in 2001. He has been a regular lecturer at schools and universities on renewable energy. He also worked with BP Wind in London assessing European wind prospects. Relevant to this project, Mr. Gilbert brings his vast experience relicensing and repowering the Cooper Lake Hydroelectric Project. To better evaluate investment opportunities for his employer, Mr. Gilbert recently completed his MBA. Meera Kohler is the President and Chief Executive Officer of AVEC. Ms. Kohler has more than 30 years of experience in the Alaska electric utility industry. She was appointed Manager of Administration and Finance at Cordova Electric Cooperative in 1983, General Manager of Naknek Electric Association in 1990, and General Manager of Municipal Light & Power in Anchorage in 1997. Since May 2000, Ms. Kohler has been the President and Chief Executive Officer of AVEC and in this position has ultimate grant and project responsibilities. 3.2 Project Schedule and Milestones Please fill out the schedule below. 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. The timing for this grant award and completion of the grant tasks is ideal to keep the project moving towards construction. All environmental permits would be issued prior to or with the FERC License by the end of 2015. This phase of the project would incorporate the license and permit requirements into the final design and construction stipulations by August 2016. The project schedule is shown in the table on the next page. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 8 of 35 7/2/14 Milestones Tasks Start Date End Date 1. Project scoping and contractor solicitation completed Completed; contractors are already working on project. 2. Permit applications completed Completed; permit applications have been submitted. 3. Final environmental assessment and mitigation plans completed FERC license application was submitted in October 2013; no work under this grant is proposed. 4. Resolution of land use, right of way issues Work towards acquiring ROW is underway; no work under this grant is proposed. 5. Permitting, rights-of-way, site control completed Permitting and ROW acquisition will be completed; no work under this grant is proposed. 6. Final system design completed Intake geotechnical fieldwork Geotechnical crew will complete work at the intake area of the project. Jul 2015 Aug 2015 Geotechnical report A report will be completed detailing the geotechnical conditions at the intake. Sept 2015 Sept 2015 65% design Oct 2015 April 2015 95% design May 2016 July 2016 100% design & specs Aug 2016 Aug 2016 7. Final cost estimate completed May 2016 Aug 2016 8. Updated economic and financial analyses completed May 2016 Aug 2016 9. Power or heat sale agreements in place An agreement with the Kodiak Island Borough School District will bedrafted for a hydro to heat system. May 2016 Jun 2016 10. Final business and operational plan completed The operational plan will be developed and completed. Apr 2016 Aug 2016 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. AVEC will use a project management strategy that it has used to successfully design and construct its wind turbines throughout rural Alaska. That strategy includes a team of AVEC staff and external consultants. AVEC staff members and their roles on this project include:  Meera Kohler, President and Chief Executive Officer, will act as Project Executive and will maintain ultimate programmatic and financial authority. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 9 of 35 7/2/14  Steve Gilbert, Projects Development Manager, will act as Program Manager and will lead the project management team consisting of AVEC staff, consultants, and contractors.  Debbie Bullock, Manager of Administrative Services, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines.  Bill Stamm, Manager of Engineering, leads AVEC’s Engineering Department which is responsible for in-house design of power plants, distribution lines, controls, and other AVEC facilities. Mr. Stamm’s unit will provide engineering design and supervision.  Mark Bryan, Manager of Operations, is a Certified Journeyman Electrician and supervises AVEC’s line operations, generation operation, and all field construction progra ms. Mr. Bryan’s unit will oversee operation of this project as part of the AVEC utility system , once constructed.  Anna Sattler, Community Liaison, will communicate directly with Old Harbor residents and key entities to ensure the community is informed. Steve Gilbert will be responsible for the management of this project. He will be responsible for working with AVEC’s Community Liaison to involve the community in the project and gain site control. He will also coordinate and manage the following consultan ts while ensuring that their deliverables are on time and within budget: Geotechnical Consultant. R&M Engineering will conduct a detailed geotechnical and natural hazards field study and report of areas along the intake access road and at the intake. R&M completed the geotechnical work along the power house road alignment, at the power house site, and along portions of the penstock and intake access road alignment. They understand how to get work done in Old Harbor. Engineering Consultant. AVEC currently has Hatch Associates Consultants, Inc., under contract in support of this project. Hatch has completed all engineering work in support of the FERC licensing and environmental process and will continue to work on this project. Environmental Consultant. Solstice Alaska Consulting, Inc. (Solstice) is under contract to help with project management and permitting. Solstice prepared the license application and permit applications for this project and continues to work with agencies to ensure that the licensing and permitting process moves forward. Resumes are included under Tab A. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. AVEC has systems in place to accomplish reporting requirements successfully. In 2013, AVEC successfully met reporting requirements for 21 state and 26 federal grants. An independent auditor’s report on compliance with aspects of contractual agreements and regulatory Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 10 of 35 7/2/14 requirements, independent auditor’s report on internal control over financial reporting and on compliance and other matters, and an independent auditor’s report on compliance for each major federal program and report on internal control over compliance required by OMB Circular A-133 for AVEC for 2013 did not identify any deficiencies in internal control over compliance that they considered to be material weakness. In addition, the independent auditor’s report on compliance with aspects of contractual agreements and regulatory requirements stated that nothing indicated AVEC failed to comply with the terms, covenants, provisions, or conditions of loan, grants, and security instruments as specified in 7 CFR part 1773. The project will be managed out of AVEC’s Project s Development Department. For financial reporting, the Projects Development Department’s accountant, supported by the Administrative Services Department, will prepare financial reports. The accountant will be responsible for ensuring that vendor invoices and internal labor charges are documented in accordance with AEA guidelines and are included with financial reports. AVEC has computerized systems in place for accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines AVEC will require that monthly written progress reports be provided with each invoice submitted from contractors. The progress reports will include a summary of tasks completed, issues or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project progress reports will be collected, combined, and supplemented as necessary and forwarded as one package to the AEA project manager each quarter. Quarterly face-to-face meetings will occur between AVEC and AEA to discuss the status of all projects funded through the AEA Renewable Energy Fund program. Individual project meetings will be held, as required or requested by AEA. Meera Kohler, AVEC’s President and CEO, may be contacted as an alternative manager. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 11 of 35 7/2/14 3.5 Project Risk Discuss potential problems and how you would address them. As detailed below, there are minimal risks associated with this project. In fact, timing for this project is ideal because the FERC license and permits would be issued just as final design (proposed in this application) is initiated. There would be seamless incorporation of the license and permit requirements into the final design and construction stipulations. FERC License Acquisition. AVEC sees no problems with the issuance of the FERC license. The FERC application was submitted to FERC on October 31, 2013 and the Commission issued their Ready for Environmental Analysis (REA) on June 10, 2014. Only minor comments on the application were received from USFWS and Alaska Department of Fish and Game (ADF&G) on August 11, 2014, and AVEC responded to the comments on September 15. FERC is scheduled to issue their final Environmental Assessment in November 2015 and the license should be issued by the end of 2015. Environmental Permitting. AVEC sees no problems with permitting the project. No environmental (water) flows, which can sometimes hold up a project, have been proposed by agencies. Alaska Department of Environmental Conservation (ADEC) has issued a Water Quality Certification. A wetlands permit from the Corps of Engineers is expected by the end of 2014. ADF&G and Alaska Department of Natural Resources (ADNR) have confirmed that permits will be issued for Fish Habitat, Water Rights, and changes to the conservation easement once the FERC license has been issued by the end of 2015. (See Tab F for agency correspondence.) Geotechnical Logistics. Weather could delay the geotechnical consultants from getting into the intake site to conduct site work. A drill rig will need to be transported via helicopter into the intake site. R&M (the selected consultant) is familiar with Old Harbor weather conditions and will plan the work around weather conditions as much as possible. AVEC is a cooperative and follows the International Co-operative Alliance’s Seven Principles of Cooperatives. One of the most important of those principles is titled Democratic Member Control and refers to the men and women who serve as representatives being accountable to the membership. AVEC’s member communities, especially the community involved in a grant program such as the Renewable Energy Fund (REF), have expectations for projects regarding outcomes, schedule, budget, and quality of work. AVEC member communities and Board of Directors receive regular project status updates. When problems are reported, either formally through status reports or informally through other communications, member communities expect solutions. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 12 of 35 7/2/14 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). 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 project management support. Debbie Bullock, Manager of Administrative Services, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. Debbie’s bio is included under Tab A. 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and whom will be the primary user of the accounting system. AVEC’s accounting system consists of software, procedures and controls driven by the daily inputs and other actions of competent employees throughout the organization. The software is comprised of a comprehensive suite of Daffron-brand modules including accounting (payables/payroll/general ledger), inventory, payroll, work orders, purchase orders, customer service and billing, and warehouse/inventory. Some ancillary functions are accomplished on spreadsheets with data downloaded from the various Daffron modules. Procedures and controls include but are not limited to adequate separation of duties, manager -level approval of all expenditures, CEO-level approval of all major expenditures, a formal purchasing system (including purchase orders) for acquisition of materials and components, and a formal contracting system (including task orders) for acquisition of contractual services (consultants, construction, etc.). Virtually all AVEC employees are users of the accounting system, at least to a minimal extent. Primary users include the Accounting Department; all managers due to their involvement in controlling and ensuring the propriety of costs; and the Project s Development and Key Accounts Department, particularly its Project Manager, its Office Administrator and its Senior Accountant; these three employees are primarily responsible for all grant reporting. 3.8 Financial Management Controls Discuss the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program. AVEC’s team, with years of experience and knowledge of managing AEA-funded project costs and grant reimbursements, has a system in place for ensuring that only costs that are reasonable, ordinary, and necessary are charged to a Project, and that only costs that are eligible are submitted for reimbursement. First, AVEC’s project manager is responsible for determining whether costs are appropriate and acceptable. The project manager reviews all invoices from contractors and vendors and all in-house labor and equipment charges. Second, the Projects Development and Key Accounts Department Manager reviews costs associated Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 13 of 35 7/2/14 with outsourced services, including consultant and contractor invoices, to ensure that the charges are reasonable. The department manager also reviews his department’s staff labor charges (timesheets) to the project. Third, the Operations and Engineering Department Managers review all in-house labor (timesheets) for their department and expense reports to make sure that the charges are acceptable. Finally, the Projects Development and Key Accounts Department Senior Accountant, while preparing AEA financial reports and reimbursement requests, provides a review of both outsourced and in -house charges to determine whether they are allowable costs. The Senior Accountant is very experienced with REF grant reporting and grant agreements and understands what costs would be accepted by AEA. AVEC has systems in place to keep unacceptable overhead costs from being char ged to and reimbursed through the REF Grant Fund Program. Upon project initiation, an AVEC work order number is created to track all project labor and expenses. AVEC staff and contractors reference this number on all timesheets and invoices when working on the project, ensuring that project costs are known. Purchase orders are universally used to establish spending limits for purchases of materials, which are then monitored by the Accounting Department through the enterprise accounting system. Task orders and contracts are universally used to establish spending limits for purchases of contractual services, which are then monitored by the Project s Development and Key Accounts Department utilizing spreadsheets. Direct labor expenses (gross payroll) are tracked separately from overhead costs including employee benefits and payroll taxes. Once labor hours have been calculated, overhead including employee benefits and payroll taxes are applied in a separate transaction on the work order. AVEC and AEA have an agreed rate cap for employer costs of payroll, consisting only of employee benefits and payroll taxes. AVEC can ensure that only allowable costs would be requested for reimbursement because the direct labor and indirect/overhead costs are separate transactions (and thus the indirect/overhead amounts can be easily omitted from reimbursement), and because the allowable rate has been established (and thus can be easily included for reimbursement). Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 14 of 35 7/2/14 SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. 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 satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. This project will utilize water taken from the East Fork of Mountain Creek. Stream gauging efforts by the State of Alaska Department of Natural Resources water division from July 1993 to May 1996 and by PolarConsult from June 1998 to August 2000 indicate that there is adequate water to meet Old Harbor's energy needs year-round. The maximum, mean, and minimum annual flows for the East Fork of Mountain Creek, based on the Mountain Creek Hydrology Report are approximately 100 cubic feet per second (cfs), 14.2 cfs, and 3 cfs, respectively (PolarConsult 2010). The project is currently sized to utilize a maximum of 11.8 cfs, but will initially use 5.9 cfs. The project has a maximum gross head of about 760 feet and results in a 296 kW installed peak output. The initial installed nominal capacity is 262 kW. Estimated average annual generation for electric and heat energy is 2,018,924 kWh (based on initial installation of 1 turbine and 296 peak output). Clearly this resource is able to provide a significant benefit to the community. Similar to other run-of-river projects in Alaska, the drawback with this resource is the lower power output during the winter and spring. However, given that Old Harbor's current peak load is about 100 kW and the minimum available power in the springtime is about 140 kW, this is currently not an issue. Once community demand warrants, an additional turbine will be installed at th e powerhouse. The project will be constructed initially to accommodate the larger project but will not include the turbine. The project will then output 525 kW or 3,470,000 kWh/year (nominal and peak) using 11.8 cfs. The project will acquire a FERC license for the larger project, so that relicensing will not be needed in the future. Other energy resources are not feasible for the following reasons:  A wind meteorological tower installed on Sitkalidak Island near Old Harbor to assess the wind resource found that wind will not be suitable for community power.  The installed cost of photovoltaic solar arrays will be higher per kW produced than the installed costs of the hydroelectric project. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 15 of 35 7/2/14  Generating power from the hydrokinetic power is not yet an established technology or commercially available technology.  Biomass resources are limited by the lack of resources near the community. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The power plant in Old Harbor has the following diesel generators with the total capacity of 707 kW. (1) Caterpillar 3306DI, 28 years old, rated at 235 kW (1) Caterpillar 3306DI, 9 years old, rated at 235 kW (1) Detroit Diesel Series, 9 years old, rated at 236 kW In 2013, the aggregate generator efficiency was approximately 14.08 kWh/gal (AVEC 2013). The transmission and distribution system consists primarily of overhead lines operating at 7,200 volts. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Old Harbor uses diesel fuel for electrical power generation, heating oil for boiler (thermal) and home heating (with limited wood burning), and diesel and gasoline fuel for transportation needs. The anticipated benefit of this project is decreased usage of diesel fuel for electrical power generation. This will decrease generator operations and maintenance costs. This project will also decrease the amount of fuel used to heat the school; thereby decreasing the cost to heat the school. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. According to a 2008-2012 American Community Survey about 22% of Old Harbor residents live below the poverty line, with an average median household income of $53,125. Stabilizing the high cost of energy in the community will provide long-term, socio-economic benefits to village households. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 16 of 35 7/2/14 Currently, Old Harbor has an independent electric power system with no intertie or connection beyond the village itself. The electricity consumption (sold) in Old Harbor in 2013 was approximately 787,922 kWh. The load is highest during the winter months, when the community experiences heavy rains and many hours of darkness. The addition of the hydroelectric power to the electric generation system will reduce the amount of diesel fuel used for power generation. This project will increase efficiencies and lower the costs of the energy system in Old Harbor. Emergency medical service is provided in the health clinic by a health aide. Medical problems and emergencies must be relayed by telephone or by some other means of communication to receive outside assistance. Tele-medicine is rapidly growing in rural Alaska as a means of regular and emergency care. Reliable telephone service and tele-medicine require reliable and affordable electric service. The city is served by a piped circulation water system. Residents and buildings are equipped with full plumbing. Reliable and affordable electric service is required for the continuous operation of the water and wastewater systems. Like all of Alaska, Old Harbor is subject to long periods of winter darkness. Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting. Outside lighting greatly improves the safety of village residents. Old Harbor practices its traditional Alutiiq culture and subsistence lifestyle. Refrigeration is essential for the extended storage of perishable food stuffs, and reliable electric service is essential for proper freezer storage of food. The construction of the proposed project will augment and improve the existing power generation system by incorporating a locally available renewable resource. 4.3 Proposed System Describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 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  Basic integration concept  Delivery methods Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 17 of 35 7/2/14 Renewable Energy Technology. The Old Harbor Hydroelectric Project is a basin diversion project. The project will initially collect 5.9 cfs and in the future collect up to 11.8 cfs of water year round from a tributary (East Fork Mountain Creek) of Barling Bay Creek and tr ansport it across a basin boundary to Lagoon Creek Tributary just west of the City of Old Harbor. An intake structure will divert water to a pipeline. The pipeline, will consist of high -density polyethylene (HDPE) pipe in the upper section. Steel pipe will be used in the lower section, to handle the higher pressures. The majority of the pipeline will have a diameter of 18 inches. The water will run through a turbine in the powerhouse and out through a tailrace and into an existing pond (locally known as Swimming Pond). From Swimming Pond, the water will run through an enhanced channel to Lagoon Creek Tributary. The Old Harbor Hydroelectric Project will have an initial dependable capacity of 140 kW and a peak capacity of 296 kW. The project will be constructed initially with one turbine at 50% installed capacity until demand warrants an additional turbine. The proposed project will reduce fuel used for power generation by at least 95%. The project will be operated automatically and primarily in standalone mode as the community’s primary source of electrical generation. The table below includes the general characteristics of the project. Additional project details are found in the Reconnaissance and Feasibility Study, which has been provided to AEA in the past and is available upon request. Old Harbor Hydroelectric Project Summary General Data Initial Installed Capacity 262 kW (1 turbine) Initial Project Peak Capacity 296 kW, utilizing 5.9 cfs (1 turbine) Estimated dependable capacity 140 kW (winter/spring) Intake diversion/cut off weir/wall 4-6 ft high, 100 ft wide Penstock 10,150 ft long, 16-20 in diameter Intake Access Trail 11,500 ft long, 10 ft nominal width Powerhouse 30 ft by 35 ft Number of Generating Units (initial installed) 1 Type of Turbine 262 kW Pelton/impulse Tailrace to Swimming Pond and Lagoon Creek Tributary 2,300 ft long, 3-5 ft deep, 8 ft wide Powerhouse Access Road 5,720 ft long, 24 ft wide Overhead Power Line 6,550 ft long Anticipated capacity factor. The design annual capacity factor will be 88%. Anticipated annual generation. Estimated initial average annual generation for electricity and heat will be 2,018,799 kWh (based on installation of 1 turbine). The future estimated average annual generation will be 3,470,000 kWh (based on installation of 2 turbines). Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 18 of 35 7/2/14 Basic integration concept. Once completed, this project will easily integrate into the diesel generation system. The hydroelectric project, with its output generally exceeding all needs, will be the prime generation asset and will be controlled by an electronic governing system allowing for rapid changes in the output. Delivery Method. A 6,550-foot long (1.5 mile), 7.2 kV three-phase overhead power line will extend from the powerhouse to the existing power distribution system in Old Harbor. 4.3.2 Land Ownership 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. There are no issues with land ownership. Old Harbor Native Corporation, who owns approximately 3.24 acres within the project area, and the City of Old Harbor, who owns approximately 1.12 acres within the project area, are project partners and have stated that they will provide land for the project. (Please see the Corporation and City’s letters of support under Tab A.) AVEC is working with USFWS to obtain approximately 5.89 acres of right-of-way for the project within the Kodiak National Wildlife Refuge. AVEC has been collaborating with the USFWS for over 5 years regarding right-of-way and does not foresee issues with this approval. As requested by USFWS, an application for right-of-way will be submitted in April 2015 (9 months before issuance of the license). USFWS has stated that the ROW will be granted once the FERC license is issued at the end of 2015. A conservation easement administered by the State of Alaska and USFWS and held by the Exxon Valdez Oil Spill Trustee Council covers some portions of the Kodiak National Wil dlife Refuge and Old Harbor Native Corporation Land where the project is located. ADNR is responsible for issuing an amendment to the conservation easement to allow construction and operation of the project. ADNR provided a letter stating that they will issue the amendment once the FERC License has been issued at the end of 2015. Please see Tab F for the letter. 4.3.3 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 discuss potential barriers The timing for this grant award and issuance of permits is ideal. All permits would be issued prior to or with the FERC License by the end of 2015. The phase of the project proposed in this Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 19 of 35 7/2/14 grant application would incorporate the license and permit requirements into the final design and construction stipulations by August 2016. Federal Energy Regulatory Commission (FERC) - Hydropower Project License. AVEC worked closely with FERC in preparation of the FERC license application. AVEC does not expect any barriers to licensing. The anticipated licensing timeline is outlined below.  AVEC submitted the License Application to FERC on October 31, 2013.  FERC issued the Notice of Application Tendered for Filing on November 1, 1013.  FERC issued the Ready for Environmental Analysis and outlined a proje ct schedule on June 10, 2014.  Comments on the license application, filing of recommendations, preliminary terms and conditions, and preliminary fishway prescriptions were submitted by USFWS and ADF&G to FERC on August 8 and 11, respectively.  AVEC responded to ADF&G and USFWS comments on September 15, 2014.  FERC will issue a draft EA in March 2015.  Comments are due on the draft EA in May 2015.  FERC will issue their EA in November 2015.  FERC will issue the license in December 2015.  AVEC will use the information in the license to complete final design, funded by this grant. U.S. Fish and Wildlife Service - Right of Way Permit. Portions of the Old Harbor Hydroelectric Project are within the K odiak National Wildlife Refuge. AVEC is working closely with the USFWS’ Division of Realty and Conservation Planning to ensure that right of way will be issued. The anticipated Right of Way timeline is outlined below:  AVEC will submit an Application for Right of Way in April 2015.  USFWS will issue the Right of Way in December 2015.  AVEC will incorporate Right of Way stipulations in the final design, funded by this grant . U.S. Army Corps of Engineers (USACE) - Wetlands Permit. AVEC has been working with the USACE in the wetland permitting process. The anticipated permitting timeline is outlined below. AVEC does not expect any barriers to the issuance of a Department of the Army (DA) permit.  The USACE issued a Jurisdictional Determination (JD) for the project area on November 11, 2011.  AVEC complete wetlands delineation work in areas that were not previously mapped in April 2014 and requested an amended JD from the USACE on May 28, 2014.  The USACE will issue a preliminary JD for the entire project area by the end of October 2014.  AVEC will submit a wetlands permit application by the end of November 2014.  AVEC expects this permit to be issued by February 2015. State of Alaska, Department of Environmental Conservation - Water Quality Certificate. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 20 of 35 7/2/14 On July 15, 2014 ADEC issued a Water Quality Certification waiver for this project. State of Alaska, Department of Natural Resources (ADNR) Division of Mining, Land, and Water – Application for Water Right. ADNR stated in an email dated July 31, 2014, that water rights will be issued for the project when the FERC license is issued. ADNR has all needed application materials. State of Alaska, Alaska Department of Fish and Game – Fish Habitat Permit. ADF&G stated in an email dated August 6, 2014, that the Fish Habitat Permit will be issued for the project when the FERC license is issued. ADF&G has all needed application materials. Kodiak Island Borough Land Use Permit. The project will be located within the Kodiak Island Borough and as such is required to comply with land use regulations. AVEC has been working with the Borough and the land use permitting timeline is outlined below.  AVEC will submit a Conditional Use Permit application to the Kodiak Island Borough by the end of November 2014.  AVEC expects this permit to be issued once the FERC License is issued. 4.3.4 Environmental Address 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 discuss other potential barriers As detailed below, all environmental issues have been addressed in the environmental document of the License Application. Threatened or endangered species. The FERC designated AVEC as a non-federal representative for the purposes of conducting Endangered Species Act (ESA) consultation on August 16, 2011. Consultation letters were sent to USFWS and NOAA Fisheries on September 14, 2011. On January 20, 2011, the USFWS concurred with the finding of not like ly to adversely affect ESA species and critical habitat. On February 27, 2013 NOAA Fisheries stated that in cases like this where the action agency has a finding of “no effect”, then NOAA Fisheries concurrence is not required. There are no species under NOAA Fisheries jurisdiction in the project area. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 21 of 35 7/2/14 Habitat issues. The project would permanently impact approximately 15 acres and temporarily impact 61 acres of native habitat that is used by the wildlife species on Kodiak Island. Due to the limited impacts associated with the project and the abundance of undisturbed similar habitat in the vicinity of the project, impacts to terrestrial mammal habitat are considered minimal. Additional information on habitat impacts is documented in the environmental document in the license application. Wetlands and other protected areas. Most of the project components would be located within uplands to avoid wetlands. In areas where wetlands are unavoidable, project component footprints have been minimized to reduce impacts. Temporary impacts will result from construction activities occurring in wetlands, including equipment operation and the temporary storage of stockpile material. Permanent impacts will be due to the filling or dredging of wetlands to place project components. Impacts will occur in all types of wetlands mapped, with most of the permanent impacts occurring from the placement of the powerhouse and workpad. A wetlands permit application has been submitted for this project and AVEC expects a permit to be issued by February 2015. Archaeological and historical resources. On August 18 and 19, 2010, Northern Land Use Research, Inc., archeologists conducted a survey of the Old Harbor Hydroelectric Project area and did not document any cultural resources within the project area. FERC designated AVEC as a non-federal representative for the purposes of conducting Section 106 Consultation under the National Historic Preservation Act on September 7, 2011. AVEC found that the Old Harbor Hydroelectric Project would have no effect on cultural or historic resources and sent a findings letter to the State Historic Preservation Officer (SHPO) on September 14, 2011. The SHPO concurred with this finding, stating “No Historic Properties Affected” on September 21, 2011 . Land development constraints. As discussed throughout this application, an easement would be needed within the Kodiak National Wildlife Refuge, Old Harbor Native Corporation land, and City of Old Harbor land. Some land is within a conservation easement. Because AVEC continues to involve the USFWS and ADNR in project planning and because the Corporation and City are project partners, site control is not an issue. Telecommunications Interference/Aviation Considerations. Telecommunication and FAA airspace issues are not expected with this project. AVEC has agreed to place bird diverters on the powerline between the hydro powerhouse and the community. Visual, aesthetics impacts. Because this project is outside of Old Harbor, because the penstock is below ground, and because the project is supported by the community, visual and aesthetic resources are not expected to be an issue. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 22 of 35 7/2/14 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system Total anticipated project cost, and cost for this phase/requested grant funding/matching funds. This application is to complete geotechnical field work and design including the final design for a hydroelectric project in Old Harbor. Geotechnical field work and reporting will cost $500,000. Design will cost $650,000. A combined total of $1,150,000 will be needed to complete this work. AVEC is requesting $1,092,500 from AEA through the REF grant program, and AVEC will provide $57,500 as a cash match for this phase. Identification of other funding sources. It is possible that the funding for construction of this project will come from a combination of AEA’s Renewable Energy Fund program, USDA Rural Utility Service Program, another grant program, or direct appropriation from the State or Federal government. Projected capital cost of proposed renewable energy system/projected development cost of proposed renewable energy system. AVEC expects the final construction of the project will cost $8,200,000 (NPV). This cost includes the second turbine and school boiler. AVEC will provide a 10% cash match for the construction project. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Annual operation and maintenance cost for the Old Harbor Hydroelectric Project will be $85,000. This cost has been built into the ISER model. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 23 of 35 7/2/14 Operation and maintenance costs will be funded through power sales to the community. 4.4.3 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 AVEC, the existing electric utility serving Old Harbor, is a member-owned cooperative electric utility and typically owns and maintains the generation, fuel storage, and distribution facilities in the villages it serves. No power purchase or sale agreements will be needed for this project. Identification of potential power buyer(s)/customer(s). Energy produced from the completed wind project will be sold to AVEC’s existing customer base in the community of Old Harbor. Potential power purchase/sales price/Proposed rate of return from grant-funded project. The sales price for the wind-generated electricity will be determined by the Regulatory Commission of Alaska as is done in all AVEC villages. The delivered cost of energy will be re duced as much as possible for customers within Old Harbor under current regulations. Energy cost reductions are expected when this project is constructed. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 296 kW peak output; capacity based Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) 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 ii. Rated capacity of generators/boilers/other (kW rating) 235, 235, 236 iii. Generator/boilers/other type CAT 3306D1, CAT 3306D1, DD560K4 1200 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 VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 24 of 35 7/2/14 iv. Age of generators/boilers/other 28 years, 9 years, 9 years v. Efficiency of generators/boilers/other 14.08 kWh/gallon (AVEC 2013) b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $17,206 (AEA rate of $0.020/kWh) 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] 860,307 kWh (gross; AVEC 2013) ii. Fuel usage Diesel [gal] 61,104 gallons (AVEC 2013) Other iii. Peak Load 185 kW (July; AVEC 2013) iv. Average Load 98 kW (Annual average; AVEC 2013) v. Minimum Load 88 kW (Average minimum, July; AVEC 2013) vi. Efficiency 14.08 kWh/gallon (AVEC 2013) vii. Future trends 2% annual electric demand growth rate, other benefits based on electric (fuel only) utilization of all excess energy available from hydro d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 62,500 gallon/year (School; estimated) ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 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] 296 kW (initial peak output); 525 kW (future) b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 2,018,799 kWh (initial-for electricity and heat); 3,470,000 kWh (future) ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 25 of 35 7/2/14 ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system $9,500,000 ($8.2M NPV) b) Development cost $1,100,000 ($1.0M NPV) c) Annual O&M cost of new system $85,000 per year d) Annual fuel cost $0 Project Benefits a) Amount of fuel displaced for i. Electricity 65,000 gals (year 2014), 5,070,000 lifetime gals (through 2063), lifetime electric benefits = $33,480,000 ($14.1M NPV) ii. Heat 9,000 gals (year 2014), 370,000 lifetime gals (through 2063), lifetime heat benefits = $3,100,000 ($1.5M NPV) iii. Transportation b) Current price of displaced fuel Electricity: $4.10 (ISER 2014); Heating: $6.00/gallon (DCCED 2013) c) Other economic benefits 6,500,000 lifetime gals (through 2063) valued at $25.3M ($12.1M NPV) d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 2.9 Payback (years) 16 years Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 26 of 35 7/2/14 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. Old Harbor is a PCE eligible community. In 2013, Old Harbor consumers received $207,993 in PCE credits for eligible kWh sales to residences and community facilities. Power sales that are eligible for PCE will see 5% of the benefit of reduced electric costs in their electric rates, with the other 95% accruing to the state of Alaska through reduced PCE credits to end users. Electric customers not eligible for PCE (about 57% of sales in Old Harbor) will receive the entire benefit of reduced power costs through their electric rates. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 27 of 35 7/2/14 SECTION 5– PROJECT BENEFIT Explain the economic and public 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:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project The primary benefit of this project will be to complete a geotechnical study and design including the final design for a hydroelectric project in Old Harbor. Once this work is completed, AVEC will seek and acquire funding for construction of the “shovel -ready” project. Potential annual fuel displacement. The project will displace an estimated 95% of the fuel consumed for power generation. At ISER’s projected fuel costs, the project will result in savings of about $851,436 during its first year of operation (2018). Over the life of the project, 50 years, this savings has a present value of $17.6 million using ISER’s model. In addition, the project will displace fuel used to heat. Up to 9,000 gallons of heating fuel would be saved with hydro to heat system installed at the Old Harbor School. At ISER’s projected fuel costs, the project would save $52,524 during its first year of operation (2018). Over the life of the project, 50 years, this savings has a present value of $3.4 million using ISER’s model. The Kodiak Island School District has provided a letter of interest in the hydro to heat system (Tab B). Anticipated annual revenue/Potential additional annual incentives/Potential additional annual revenue streams. Tax credits are not expected to be beneficial to the project due to AVEC’s status as a non-profit entity. Nonetheless, in addition to saving the direct cost of fuel, AVEC could sell green tags from the project. Non-economic public benefits Information/Data Benefits. Funding acquired through this grant will be used to obtain geotechnical information within Kodiak National Wildlife Refuge and conservation areas. Collection of field information will benefit the USFWS and add to the overall knowledge of the Kodiak National Wildlife Refuge. In addition, the collection of information will meet the USFWS’ Goal 1 of the Kodiak National Wildlife Refuge Conservation Plan—Increase knowledge of fish and wildlife populations, their habitats, and their interrelationships. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 28 of 35 7/2/14 Subsistence Benefits. Another goal of the USFWS Conservation Plan is to “Provide the opportunity for local residents to continue the ir subsistence uses on the Refuge, consistent with the subsistence priority and with other Refuge purposes.” A new road will be established to the powerhouse and a new trail will be established to the intake, providing easier access to the Kodiak National Wildlife Refuge. (At USFWS’s request, the trail to the intake will be open to foot traffic but closed to public ATV traffic.) Recreational and Environmental Benefits. The project will improve habitat along the dilapidated ATV trail to Swimming Pond. This existing ATV trail is heavily rutted, braids across wetlands, and has two in-stream crossings of Lagoon Creek. The project will improve habitat along the existing ATV trail to Swimming Pond as traffic will flow to the new powerhouse access road, which provides access to Swimming Pond. The new road will be in better condition, and easier to use, than the existing trail. The good condition of the powerhouse access road will encourage users to stay on the road. Allowing ATV traffic to utilize the new access road to the powerhouse will eliminate the in-stream crossings and prevent further braiding of the trail that is damaging to wetland complexes associated with the Lagoon Creek drainage. Socioeconomic Benefits. The Old Harbor Hydroelectric Project will provide multiple benefits to the socio-economic environment of Old Harbor by employing local residents and providing affordable power to local consumers and industrial users. In the short-term, the project will have a positive economic impact due to the availability of jobs during the construction of the project, including construction and bear -guard positions. There will be additional economic opportunities such as ATV and lodging rentals and the purchase of local goods by construction workers. In the long-term the project will improve socioeconomic opportunities by providing power that is stably priced. Stabilized power costs will allow for improved operation of existing public services. For example, existing facilities could be open for longer, and facilities that do not currently have power, like the boat harbor and the airport, could be connected to the grid. New business could be established. For example, the Old Harbor Native Corporation has stated that they will build and operate a fish p rocessing plant once the hydroelectric project is constructed. Operation of this project will create the power necessary to operate the plant. Being able to process fish locally will provide jobs and increase the amount of fishing revenue that stays in Old Harbor. Community Goals Realized. The Old Harbor Hydroelectric Project will meet the goals of existing community comprehensive plans. The Kodiak Island Borough Comprehensive Plan Update lists the need for hydroelectric power as one of four priority issues facing Old Harbor. Developing a hydroelectric facility is one of the policies under Old Harbor’s Public Facilities, Health, and Safety goal. The City of Old Harbor Community Plan (City of Old Harbor, 2006) also lists hydroelectric power as a community priority. This project will stabilize energy cost and allow the City of Old Harbor, the Native Village of Old Harbor, and the Old Harbor Village Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 29 of 35 7/2/14 Corporation to afford important community infrastructure projects listed in the plans, including a new ferry dock and a new community multipurpose building. 5.1 Public Benefit for Projects with Private Sector Sales 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. Old Harbor does expect that once this project is constructed that at least one fish processing plant will move into the community; however, this is not large scale private sector as described above. By reducing the cost of power production, small businesses and public facilities in Old Harbor, including lodges, a small fish processing facility, the boat harbor, and the city, tribe, and corporation office buildings (not eligible for PCE) will see a cost savings which may be passed along to residents in the form of lower product or services prices. Renewable energy resource availability (kWh per month) N/A Estimated sales (kWh) N/A Revenue for displacing diesel generation for use at private sector businesses ($) N/A Estimated sales (kWh) N/A Revenue for displacing diesel generation for use by the Alaskan public ($) N/A SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits AVEC has the capacity and experience to administer this grant and manage this project, if funded. As a local utility that has been in operation since 1968, AVEC is completely able to finance, operate, and maintain this project for its design life. AVEC has operated other renewable projects throughout the state and is very familiar with planning, constructing, operating, and maintaining alternative systems. Business plan structures and concepts which may be considered: The hydroelectric power will be incorporated into AVEC’s power plant operation. Local plant operators provide daily servicing. AVEC technicians provide periodic preventative or corrective maintenance and are supported by AVEC headquarters staff, purchasing, and warehousing. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 30 of 35 7/2/14 How O&M will be financed for the life of the project: The costs of operations and maintenance will be funded through ongoing energy sales to the member villages. Operational issues which could arise: AVEC does not envision any operational issues. No environmental flows have been proposed by regulatory agencies, which will allow for adequate operational flows year round. The intake area will be assessable by ATV throughout the year via small pickup truck or ATV and any minor issues at the intake could be handled locally. Operating costs: Annual operation and maintenance cost for the Old Harbor Hydroelectric Project will be approximately $95,703 (hydro production only) with annual operation and maintenance costs for all power production at $266,974. See details in Section 4.4.2. Commitment to reporting the savings and benefits: AVEC is fully committed to sharing the savings and benefits accrued from this project information with its member communities and to sharing information regarding savings and benefits with AEA. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. With $225,000 of grant funding awarded from the legislature through the first round of the Renewable Energy Fund Program and $25,000 AVEC match, AVEC initiated the FERC hydroelectric licensing process. A Preliminary Application Document and Study Plan were prepared and wetland, fisheries, cultural resources, and eagle nest field work was conducted. A draft and final study report were prepared. In addition reconnaissance and feasibility study, including a hydrology study, was prepared. Regulatory agencies and FERC were involved throughout the process. AVEC was awarded $237,500 from the legislature during the fourth round of the Renewable Energy Fund Program. These funds, along with a $12,500 AVEC match, were used to complete a geotechnical assessment of the powerhouse site and powerhouse access road and powerline alignment areas. The funds were also used to prepare the DLA’s Exhibit G (Survey Maps) and the first drafts of the DLA’s Exhibit A (Project Description) and Exhibit F (Design Drawings). Funds from this grant have been exhausted. The City of Old Harbor received a $250,000 Community Development Block Grant (CDBG) to assist AVEC with completing the FERC License Application. Funds acquired through this grant along with a $12,500 AVEC match were used to complete the DLA including the E xhibit E (Environmental Report) and the final draft of the Exhibit F (Design Drawings). Funds were also Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 31 of 35 7/2/14 used to address agency comments on the DLA, to prepare the Final License Application, and to prepare permit applications. Timing for a REF Round 8 grant award and completion of the work funded under previous grants is perfect. All environmental permits would be issued prior to or with the FERC License by the end of 2015. FERC license and permit requirements would be seamlessly incorporated into the final design and construction starting in January 2016. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support 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 2, 2014 The community of Old Harbor supports, and is interested in moving forward with, this important project. Letters of support have been received by all governing entities. In addition, the Kodiak School District has submitted a letter of interest for a hydro to heat system installation at the Old Harbor School. Please see Tab B. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 32 of 35 7/2/14 SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. It will cost $1,150,000 to complete the geotechnical investigation and reporting for the intake site, and to prepare the final design, for the new hydroelectric facility in Old Harbor. Geotechnical work will cost $500,000. AVEC is requesting $1,092,500 from the REF and will provide a cash match of $57,500, if awarded. AVEC has received $462,500 in REF and $250,000 CDBG grant funding and provided $50,000 in match to date for preliminary design, environmental and engineering field studies, FERC licensing, and permitting the project. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project This application is to complete a geotechnical study and final design for the Old Harbor Hydroelectric Project. Geotechnical field work and reporting will cost $500,000. Design will cost $650,000. A combined total of $1,150,000 will be needed to complete this work. AVEC is requesting $1,092,500 from AEA through the REF grant program, and AVEC will provide $57,500 as a cash match for this phase. A detail of the grant budget follows. 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Because this project involves geotechnical work and design only, no meter would be installed. AVEC installs meters on all renewable projects (primarily wind farm turbines) and will put a meter on the Pelton turbine installed for this hydroelectric project. Metering equipment specifications and costs would be determined during this phase. Renewable Energy Fund Round VIII Grant Application - Standard Form OLD HARBOR HYDROELECTRIC PROJECT AEA 15003 Page 33 of 35 7/2/14 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS 1. Project scoping and contractor solicitation completed Completed 2. Permit applications completed Completed 3. Final environmental assessment and mitigation plans completed Dec 2015 4. Resolution of land use, right of way issues Dec 2015 5. Permitting, rights-of- way, site control completed Dec 2015 6. Final system design completed Intake geotech fieldwork Aug 2015 $ 427,500 $22,500 $450,000 Geotech report Sept 2015 $47,500 $2,500 $50,000 65% design April 2015 $308,750 $16,250 $325,000 95% design July 2016 $154,375 $8,125 $162,500 100% design and specs Aug 2016 $95,000 $5,000 $100,000 7. Final cost estimate completed Aug 2016 $59,375 $3,125 $62,500 8. Updated economic and financial analyses completed Aug 2016 $ $ $ 9. Power or heat sale agreements in place Jun 2016 $ $ $ TOTALS $1,092,500 $ 57,500 $1,150,000 Budget Categories: Direct Labor & Benefits $95,000 $5,000 $100,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $997,500 $52,500 $1,050,000 Construction Services $ $ $ Other $ $ $ TOTALS $1,092,500 $57,500 $1,150,000 Renewable Energy Fund Round VIII )i A6ASKA Grant Application - Standard Form V ENERGY AUTHORITY OLD HARBOR HYDROELECTRIC PROJECT SECTION 10—AUTHORIZED SIGNERS FORM Community/Grantee Name: Alaska Village Electric Cooperative, Inc. Regular Election is held: Date: Yes Annually each March Authorized Grant Signer(s): Printed Name Title Term Signature Meera Kohler President and CEO unlimited I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Meera Kohler President and CEO Unlimited [Grantee Contact Information: Mailing Address: 4831 Eagle Street Anchorage, AK. 99503 Phone Number: 907.5655351 Fax Number: 907.561.4086 E-mail Address: mkohler@avec.org Federal Tax ID #: 92-0035763 Please submit an updated form whenever there is a change to the above information. J AEA 15003 Page 34 of 35 7/2/14 Tab B Letters of Support Old Harbor’s Finest P.O. Box 1 Old Harbor, Alaska 99643 September 7, 2014 To whom it may concern, Old Harbor’s Finest is a smoked seafood and specialty processing company owned and operated by Al and Jonetta Cratty in Old Harbor. Old Harbor’s Finest is primarily a salmon and halibut processing and value-added company that operates during the summer and fall months; however, the facility is currently not operating due to the high cost of energy in Old Harbor. The operation of our company is closely tied to the cost of power. We intend on reopening and possibly expanding once the hydroelectric project is constructed and the cost of energy is reduced. We are very interested in the success of the hydro project because it benefits not only our company, but future economic growth which brings in employment for our community members. Many of our shareholders and descendants of Old Harbor have relocated in the past due to the lack of employment. Many of those members would move back home if there were more opportunities for them. We fully support the AEA grant application submitted by AVEC for this project. Thank you for your time in this matter. If you have any questions, please contact me at 907.286.2267. Thank you, Al & Jonetta Cratty Tab C Heat Project Information No information provided in this section. Not applicable to this project. Tab D Authority Tab E Certification Renewable Energy Fund Round VIII aw ALASKA Grant Application - Standard Form V ENERGY AUTHORITY OLD HARBOR HYDROELECTRIC PROJECT SECTION 11 - 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 8. 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 Meera Kohler Signature Title President President and CEO Date AEA 15003 Page 35 of 35 7/2/14 Tab F Additional Materials If you disagree with any information contained herein, please advise immediately. , Rev. 3 Page 1 © Hatch 2014 All rights reserved, including all rights relating to the use of this document or its contents. Project Memo H345376 4 September 2014 To: Steven Gilbert, AVEC From: Daniel Hertrich cc: Robin Reich, Solstice Alaska Village Electric Cooperative Old Harbor Hydroelectric Project Economic Update and Heating Analysis 1. Introduction In 2013 Hatch provided a technical analysis in support of both the Alaska Village Electric Cooperative's (AVEC) Old Harbor Federal Energy Regulatory Commission (FERC) License Application and AVEC's Renewable Energy Fund (REF) grant application with the Alaska Energy Authority (AEA). The analysis results were presented in a memo. This project memo again updates the project economics in support of an application to AEA's REF. 2. Executive Summary and Value of Development Resources This memo provides a review and update of the economics for the Old Harbor Hydroelectric Project and is based on the previous economic update, presented 6 September 2013 in a Project Memo. Updates include  Estimating the economic potential for utilization of excess energy for heating purposes,  Revised fuel price projection, and  Revised demand projection. The electric generation values shown in the 2013 Value of Development Resources (section 2.1) are revised as follows: Item Value Units Annual Electric Demand (2014 projected) 915,059 kWh Electric Demand Displaced by Hydro Project 915,059 kWh Market Value of Displaced Electric Demand $335,602 $(2014) Electric Demand Growth, past 6 years 4.6% Projected Electric Demand Growth 2.0% In addition to the above, the following summarizes the combined annual electric and heating fuel used in Old Harbor and the potential displacement by the hydro. , Rev. 3 Page 2 © Hatch 2014 All rights reserved, including all rights relating to the use of this document or its contents. Table 1 - 2014 Projected Fuel Use and Cost of Avoidable Diesel Energy Electric and Heating Alternative Total Fuel Used Annually, gals Nonfuel Diesel Costs (avoidable only), $ Total Cost @ $3.88/gal Electric and $5.70/gal Heat Annual Market Value of Energy Displaced by Hydro Project Excess Hydroelectric Energy Value Diesel Only 127,861 167,000 $776,852 Hydro, No Heat 62,500 0 $441,250 $335,602 $708,165 Hydro, Dispatchable Heat 53,509 0 $390,001 $386,851 $628,546 Details of the calculation of annual energy use, costs, and economic projections for both displaced electric and heating are presented in the following sections. 3. Supporting Data 3.1 Climate data Heating degree days were calculated from monthly totals from the Kodiak WSO Airport climate station1. The table below shows the monthly summary. Table 2 - Monthly Heating Degree Days for Kodiak WSO Airport 1973 to 2013, Base Temperature = 65 F, last updated on Jun 7, 2013 Month Mean Jan 1,057 Feb 963 Mar 996 Apr 812 May 644 Jun 451 Jul 325 Aug 300 Sep 457 Oct 746 Nov 925 Dec 1,052 Ann 8,690 3.2 Heating Fuel Use Total heating fuel use reported by the City of Old Harbor is 60,000 to 65,000 gallons annually with the single largest user (school) using about 8,000 to 10,000 gallons annually2. Heat demand and subsequent fuel use is distributed throughout the year on a daily basis using the monthly heating degree data above. 3.3 Diesel Fuel price Recent delivered fuel prices for electrical generation in Old Harbor were provided by AVEC. Future fuel price projection is based on an average of the September 2013 mid price projections made by ISER and 1 http://www.wrcc.dri.edu/cgi-bin/cliMONthdd.pl?ak4988 2 Conversation with City of Old Harbor , Rev. 3 Page 3 © Hatch 2014 All rights reserved, including all rights relating to the use of this document or its contents. an updated ISER model using December 2013 USEIA crude price projections. The resulting price projections are shown in the table below. Table 3 - Near Term Fuel Price Projections, Electric Generation Year AVEC Fuel Price ISER 2013 Model Updated ISER Model Modeled Fuel Price 2013 3.95 4.03 4.44 3.95 2014 3.88 3.79 4.42 3.88 2015 3.80 4.27 4.04 2016 3.78 4.21 3.99 2017 3.84 4.14 3.99 2018 3.94 4.15 4.05 2019 4.01 4.19 4.10 2020 4.08 4.26 4.17 2021 4.15 4.34 4.24 2022 4.21 4.43 4.32 Heating fuel price is based on the current retail price quoted by the City of Old Harbor of $5.70 per gallon inflated at the same rate. 3.4 Heating Equipment Configurations and Costs The development scenario analyzed for this memorandum consists of an electric resistive hot water boiler displacing large commercial users of heating fuel in Old Harbor. Investigations established that an electric boiler could be installed in the school that would utilized interruptible electric energy to offset the existing diesel fuelled heating demand. A conversion efficiency of 100% is used for the electric boiler system. Maximum potential heating displacement by the hydro is limited by the school's annual heating fuel use of 9,000 gallons. This dispatchable system is expected to have a capital cost of approximately $250,000 installed. 3.5 Economic Analysis (term, rates, analysis) Demand growth is included because of the recent trend in growth and the significant amount of excess energy available from the hydroelectric project. The analysis includes a demand growth rate of 2.0% annually. No growth is used for heating demand. The potential displaced diesel electric generation and heating fuel use is calculated each year taking into account demand peak, a fixed power reserve or margin, and resource and hydroelectric project limitations. Similarly, the amount of excess energy available for heating usage decreases as the electrical demand increases. Economic Parameters Term 50 years Discount Rate 3.0 % 4. Results The results of the analysis show that installing equipment to offset heating loads will have a positive economic value. The table below summarizes the Net Present Cost (NPC) of meeting Old Harbor's , Rev. 3 Page 4 © Hatch 2014 All rights reserved, including all rights relating to the use of this document or its contents. electric and heating energy needs over the next 50 years (fixed generation, distribution and transmission, and administrative costs excluded). Dispatchable heating shows some improvement over no heat utilization. The B/C ratio improves from 1.59 to 1.69. Table 4 - Economic Results for Electric Generation Only Diesel Only Hydro + Diesel NPC of Generation $18,226,626 $13,023,196 NPV of Investment, Costs $0 $8,885,895 NPV of Investment, Benefits $0 $14,089,325 B/C Ratio of Investment NA 1.59 Table 5 - Economic Results for Electric + Heat Generation Diesel Only Hydro + Diesel, dispatchable heat NPC of Generation $30,517,856 $24,155,032 NPV of Investment, Costs $0 $9,192,919 NPV of Investment, Benefits $0 $15,555,743 B/C Ratio of Investment NA 1.69 Daniel Hertrich Attachment: Economic Update and Heating Analysis Result Tables, 2 pages Economic Update and Heating Analysis Result TablesAlaska Village Electric Alaska CooperativeOld Harbor Hydroelectric ProjectSUM 50YRS 77,400,000 5,530,000$33,320,000 $8,350,000 $41,670,000 99,860,000 3,125,000 $26,110,000 $67,780,000NPV 50YRS $13,929,755 $4,296,871 $18,226,626 $12,291,230 $30,517,856Diesel Heating CostTotal ExistingDiesel Electric Generation CostsYearAnnual Electric Demand, kWh (2.0% growth rate)Diesel Electric Fuel Use, galModeled Fuel Price, $2014 per galDiesel Electric Fuel Cost, $2014Diesel Electric Nonfuel Cost, $2014Total Diesel Electric Cost, $2014Heat Demand, kWhFuel Used, galHeat Fuel Cost, $2014Total Heat Cost, $2014Total Diesel Energy Cost, $20142014915 05965 361388$253 602$167 000$420 6021 997 14362 500$5 70$356 250$776 8522014915,05965,3613.88$253,602$167,000$420,6021,997,14362,500$5.70$356,250$776,8522015 933,360 66,669 4.04 $269,017 $167,000 $436,017 1,997,143 62,500$5.93 $370,494 $806,5112016 952,027 68,002 3.99 $271,641 $167,000 $438,641 1,997,143 62,500$5.87 $366,773 $805,4152017 971,068 69,362 3.99 $277,001 $167,000 $444,001 1,997,143 62,500$5.87 $366,677 $810,6782018990 48970 749405$286 252$167 000$453 2521 997 14362 500$5 94$371 493$824 7452018990,48970,7494.05$286,252$167,000$453,2521,997,14362,500$5.94$371,493$824,7452019 1,010,299 72,164 4.10 $295,897 $167,000 $462,897 1,997,14362,500 $6.02 $376,480 $839,3772020 1,030,505 73,608 4.17 $307,048 $167,000 $474,048 1,997,14362,500 $6.13 $383,007 $857,0552021 1,051,115 75,080 4.24 $318,602 $167,000 $485,602 1,997,14362,500 $6.23 $389,627 $875,2282022 1,072,137 76,581 4.32$330,774$167,000$497,774 1,997,143 62,500$6.35$396,581$894,355,,,$,$,$,,,,$$,$,2023 1,093,580 78,113 4.40 $343,414 $167,000 $510,414 1,997,14362,500 $6.46 $403,662 $914,0762024 1,115,452 79,675 4.48 $356,646 $167,000 $523,646 1,997,14362,500 $6.58 $410,996 $934,6422025 1,137,761 81,269 4.55 $370,155 $167,000 $537,155 1,997,14362,500 $6.69 $418,199 $955,3542026 1,160,516 82,894 4.63 $383,938 $167,000 $550,938 1,997,14362,500 $6.80 $425,266 $976,2042027 1,183,726 84,552 4.70 $397,765 $167,000 $564,765 1,997,14362,500 $6.91 $431,943 $996,7082028 1,207,401 86,243 4.79 $412,695 $167,000 $579,695 1,997,143 62,500 $7.03 $439,368 $1,019,0622029 1,231,549 87,968 4.86 $427,578 $167,000 $594,578 1,997,143 62,500 $7.14 $446,288 $1,040,8662030 1,256,180 89,727 4.94 $443,067 $167,000 $610,067 1,997,143 62,500 $7.25 $453,387 $1,063,45520311 281 30491 522501$458 620$167 000$625 6201 997 14362 500$7 36$460 100$1 085 72020311,281,30491,5225.01$458,620$167,000$625,6201,997,14362,500$7.36$460,100$1,085,7202032 1,306,930 93,352 5.09 $475,285 $167,000 $642,285 1,997,143 62,500 $7.48 $467,469 $1,109,7532033 1,333,068 95,219 5.18 $492,889 $167,000 $659,889 1,997,143 62,500 $7.60 $475,278 $1,135,1672034 1,359,730 97,124 5.26 $511,000 $167,000 $678,000 1,997,143 62,500 $7.73 $483,080 $1,161,08020351 386 92499 066534$528 622$167 000$695 6221 997 14362 500$7 84$489 941$1 185 56320351,386,92499,0665.34$528,622$167,000$695,6221,997,14362,500$7.84$489,941$1,185,5632036 1,414,663 101,047 5.41 $546,509 $167,000 $713,509 1,997,143 62,500 $7.95 $496,587 $1,210,0952037 1,442,956 103,068 5.48 $565,063 $167,000 $732,063 1,997,143 62,500 $8.05 $503,379 $1,235,4422038 1,471,815 105,130 5.56 $584,303 $167,000 $751,303 1,997,143 62,500 $8.16 $510,312 $1,261,61420391 501 251107 232563$604 245$167 000$771 2451 997 14362 500$8 28$517 381$1 288 62620391,501,251107,2325.63$604,245$167,000$771,2451,997,14362,500$8.28$517,381$1,288,6262040 1,531,276 109,377 5.71 $624,910 $167,000 $791,910 1,997,143 62,500 $8.39 $524,584 $1,316,4942041 1,561,902 111,564 5.79 $646,320 $167,000 $813,320 1,997,143 62,500 $8.51 $531,919 $1,345,2392042 1,593,140 113,796 5.87 $668,498 $167,000 $835,498 1,997,143 62,500 $8.63 $539,383 $1,374,8812043 1,625,003 116,072 5.96 $691,467 $167,000 $858,467 1,997,143 62,500 $8.75 $546,977 $1,405,444,,,,,,,,,,,,2044 1,657,503 118,393 6.04 $715,254 $167,000 $882,254 1,997,143 62,500 $8.88 $554,699 $1,436,9532045 1,690,653 120,761 6.13 $739,884 $167,000 $906,884 1,997,143 62,500 $9.00 $562,549 $1,469,4342046 1,724,466 123,176 6.21 $765,387 $167,000 $932,387 1,997,143 62,500 $9.13 $570,529 $1,502,9162047 1,758,955 125,640 6.30 $791,818 $167,000 $958,818 1,997,143 62,500 $9.26 $578,658 $1,537,4772048 1,794,134 128,152 6.39 $819,208 $167,000 $986,208 1,997,143 62,500 $9.39 $586,935 $1,573,1432049 1,830,017 130,715 6.48 $847,586 $167,000 $1,014,586 1,997,14362,500 $9.53 $595,361 $1,609,9472050 1,866,617 133,330 6.58 $876,989 $167,000 $1,043,989 1,997,14362,500 $9.66 $603,935 $1,647,9242051 1,903,950 135,996 6.67 $907,453 $167,000 $1,074,453 1,997,14362,500 $9.80 $612,660 $1,687,11320521 942 029138 716677$939 018$167 000$1 106 0181 997 14362 500$9 94$621 541$1 727 55920521,942,029138,7166.77$939,018$167,000$1,106,0181,997,14362,500$9.94$621,541$1,727,5592053 1,980,869 141,491 6.87 $971,726 $167,000 $1,138,726 1,997,14362,500 $10.09 $630,579 $1,769,3052054 2,020,487 144,320 6.97 $1,005,621 $167,000 $1,172,621 1,997,14362,500 $10.24 $639,778 $1,812,3992055 2,060,896 147,207 7.07 $1,040,748 $167,000 $1,207,748 1,997,14362,500 $10.39 $649,143 $1,856,89220562 102 114150 151717$1 077 155$167 000$1 244 1551 997 14362 500$10 54$658 678$1 902 83420562,102,114150,1517.17$1,077,155$167,000$1,244,1551,997,14362,500$10.54$658,678$1,902,8342057 2,144,157 153,154 7.28 $1,114,891 $167,000 $1,281,891 1,997,14362,500 $10.69 $668,385 $1,950,2762058 2,187,040 156,217 7.39 $1,154,003 $167,000 $1,321,003 1,997,14362,500 $10.85 $678,268 $1,999,2712059 2,230,780 159,341 7.50 $1,194,544 $167,000 $1,361,544 1,997,14362,500 $11.01 $688,330 $2,049,87420602,275,396162,5287.61$1,236,569$167,000$1,403,5691,997,14362,500$11.18$698,574$2,102,14320602,275,396162,5287.61$1,236,569$167,000$1,403,5691,997,14362,500$11.18$698,574$2,102,1432061 2,320,904 165,779 7.72 $1,280,133 $167,000 $1,447,133 1,997,14362,500 $11.34 $709,005 $2,156,1382062 2,367,322 169,094 7.84 $1,325,296 $167,000 $1,492,296 1,997,14362,500 $11.51 $719,626 $2,211,9222063 2,414,668 172,476 7.96 $1,372,119 $167,000 $1,539,119 1,997,14362,500 $11.69 $730,442 $2,269,5619/4/2014Page 1 of 320140904‐power‐model.xlsx Economic Update and Heating Analysis Result TablesAlaska Village Electric Alaska CooperativeOld Harbor Hydroelectric ProjectSUM 50YRSNPV 50YRS$1,100,000 $9,250,000 $10,350,000 $0 $10,350,000 $4,000,000 77,400,000 6,350,000 71,040,000 450,000 $18,540,000 $18,540,00092,060,000 6,575,853 $30,070,000$1,015,495 $7,870,400$8,885,895 $348,106 $9,234,001 $1,946,598$13,023,196 $13,371,302 $14,363,9772 T bi I iti l E E Grant fundingHydro Investment Costs Hydroelectric Generation Costs, no heat Excess Energy Potential - 2 turbines, no heatYear2014Hydro Design Cost, $2014Hydro Construction Cost, $2014Total Cost, 1 Turbine Initial, $20142 Turbine Initial Install Cost (for Excess Energy Utilization), $2014Total Cost, 2 Turbines, $2014Hydro O&M Cost, $2014Electric Demand, kWhDiesel Electric Generation, kWhHydro Electric Generation, kWhDiesel Electric Fuel Used, galDiesel Run Hours1 Turbine Initial Install Total Hydro Cost, $20142 Turbine Initial Install Total Hydro Cost, $2014Remaining Energy Available, kWhEquivalent Displaced Fuel, galsExcess Energy Benefit, fuel only (non fuel savings subtracted), $2014$0$0$0$0$0$0915 059915 05965 3618 760$420 602$420 602$020142015201620172018$0$0$0$0$0$0915,059915,05965,3618,760$420,602$420,602- $0$359,054 $0 $359,054 $0 $359,054 $0 933,360933,360 66,669 8,760 $795,070 $795,070 - $0$702,757 $0 $702,757 $0 $702,757 $0 952,027 952,027 68,002 8,760 $1,141,398 $1,141,398 - $0$38,189 $8,500,000 $8,538,189$750,000 $9,288,189 $85,000 971,068 1,726 969,342 123 37 $8,624,382 $9,374,382 2,500,953 178,640 $547,108$0$0$0$0$0$85 000990 4892 325988 16516649$86 615$86 6152 482 130177 295$551 28120182019202020212022$0$0$0$0$0$85,000990,4892,325988,16516649$86,615$86,6152,482,130 177,295 $551,281$0 $0 $0 $0 $0 $85,000 1,010,299 3,0271,007,272 216 64 $87,114 $87,114 2,463,023 175,930 $555,600$0 $0 $0 $0 $0 $85,000 1,030,505 4,1481,026,357 296 88 $87,918 $87,918 2,443,938 174,567 $562,875$0 $0 $0 $0 $0 $85,000 1,051,115 5,2911,045,824 378 113 $88,750 $88,750 2,424,471 173,177 $570,023$0$0$0$0$0$85,000 1,072,137 6,457 1,065,680 461 137$89,611$89,611 2,404,615 171,758 $577,4872023202420252026$$$$$$,,,,,,$,$,,,,$,$0 $0 $0 $0 $0 $85,000 1,093,580 7,6471,085,933 546 163 $90,503 $90,503 2,384,362 170,312 $584,856$0 $0 $0 $0 $0 $85,000 1,115,452 9,1821,106,270 656 195 $91,660 $91,660 2,364,025 168,859 $592,579$0 $0 $0 $0 $0 $85,000 1,137,761 10,8321,126,929 774 230 $92,917 $92,917 2,343,366 167,383 $599,775$0 $0 $0 $0 $0 $85,000 1,160,516 12,5151,148,001 894 266 $94,216 $94,216 2,322,294 165,878 $606,36920272028202920302031$0 $0 $0 $0 $0 $85,000 1,183,726 14,231 1,169,495 1,017 303 $95,555 $95,555 2,300,800 164,343 $611,906$0 $0 $0 $0 $0 $85,000 1,207,401 16,422 1,190,979 1,173 349 $97,274 $97,274 2,279,316 162,808 $618,740$0 $0 $0 $0 $0 $85,000 1,231,549 18,803 1,212,746 1,343 400 $99,155 $99,155 2,257,549 161,254 $624,419$0 $0 $0 $0 $0 $85,000 1,256,180 21,232 1,234,948 1,517 452 $101,101 $101,101 2,235,347 159,668 $630,042$0$0$0$0$0$85 0001 281 30423 7221 257 5811 694505$103 113$103 1132 212 714158 051$634 62420312032203320342035$0$0$0$0$0$85,0001,281,30423,7221,257,5811,694505$103,113$103,1132,212,714 158,051 $634,624$0 $0 $0 $0 $0 $85,000 1,306,930 27,671 1,279,259 1,976 589 $106,287 $106,287 2,191,036 156,503 $641,027$0 $0 $0 $0 $0 $85,000 1,333,068 31,698 1,301,370 2,264 674 $109,578 $109,578 2,168,925 154,923 $647,796$0 $0 $0 $0 $0 $85,000 1,359,730 35,807 1,323,923 2,558 762 $112,980 $112,980 2,146,372 153,312 $654,151$0$0$0$0$0$85 0001 386 92440 0851 346 8392 863853$116 538$116 5382 123 456151 675$658 60820352036203720382039$0$0$0$0$0$85,0001,386,92440,0851,346,8392,863853$116,538$116,5382,123,456 151,675 $658,608$0 $0 $0 $0 $0 $85,000 1,414,663 44,530 1,370,132 3,181 947 $120,265 $120,265 2,100,163 150,012 $662,391$0 $0 $0 $0 $0 $85,000 1,442,956 49,065 1,393,891 3,505 1,044 $124,115 $124,115 2,076,404 148,315 $666,023$0 $0 $0 $0 $0 $85,000 1,471,815 52,975 1,418,840 3,784 1,127 $127,519 $127,519 2,051,456 146,533 $668,904$0$0$0$0$0$85 0001 501 25154 9711 446 2803 9271 170$129 423$129 4232 024 015144 572$669 95120392040204120422043$0$0$0$0$0$85,0001,501,25154,9711,446,2803,9271,170$129,423$129,4232,024,015 144,572 $669,951$0 $0 $0 $0 $0 $85,000 1,531,276 57,007 1,474,269 4,072 1,213 $131,387 $131,387 1,996,026 142,573 $670,696$0 $0 $0 $0 $0 $85,000 1,561,902 59,452 1,502,450 4,247 1,265 $133,708 $133,708 1,967,845 140,560 $671,408$0 $750,000 $750,000 -$750,000 $0 $85,000 1,593,140 63,399 1,529,741 4,528 1,346 $887,272 $137,272 1,940,554 138,611 $672,945$0 $0 $0 $0 $0 $85,000 1,625,003 67,425 1,557,578 4,816 1,430 $140,952 $140,952 1,912,717 136,623 $674,1572044204520462047,,,,,,,,,,,,,,$0 $0 $0 $0 $0 $85,000 1,657,503 71,844 1,585,659 5,132 1,518 $144,941 $144,941 1,884,636 134,617 $675,207$0 $0 $0 $0 $0 $85,000 1,690,653 77,029 1,613,624 5,502 1,614 $149,473 $149,473 1,856,671 132,619 $676,302$0 $0 $0 $0 $0 $85,000 1,724,466 82,318 1,642,148 5,880 1,711 $154,158 $154,158 1,828,147 130,582 $677,027$0 $0 $0 $0 $0 $85,000 1,758,955 87,942 1,671,014 6,282 1,803 $158,954 $158,954 1,799,282 128,520 $677,33820482049205020512052$0 $0 $0 $0 $0 $85,000 1,794,134 93,840 1,700,294 6,703 1,890 $163,885 $163,885 1,770,001 126,429 $677,226$0 $0 $0 $0 $0 $85,000 1,830,017 99,857 1,730,160 7,133 1,980 $168,991 $168,991 1,740,135 124,295 $676,699$0 $0 $0 $0 $0 $85,000 1,866,617 106,568 1,760,049 7,612 2,061 $174,367 $174,367 1,710,246 122,160 $675,819$0 $0 $0 $0 $0 $85,000 1,903,950 113,416 1,790,534 8,101 2,145 $179,940 $179,940 1,679,761 119,983 $674,486$0$0$0$0$0$85 0001 942 029120 1451 821 8838 5822 213$185 290$185 2901 648 412117 744$672 24420522053205420552056$0$0$0$0$0$85,0001,942,029120,1451,821,8838,5822,213$185,290$185,2901,648,412 117,744 $672,244$0 $0 $0 $0 $0 $85,000 1,980,869 126,785 1,854,084 9,056 2,269 $190,460 $190,460 1,616,211 115,444 $669,106$0 $0 $0 $0 $0 $85,000 2,020,487 133,995 1,886,491 9,571 2,330 $196,119 $196,119 1,583,804 113,129 $665,706$0 $0 $0 $0 $0 $85,000 2,060,896 143,312 1,917,584 10,237 2,410 $203,316 $203,316 1,552,711 110,908 $663,059$0$0$0$0$0$85 0002 102 114152 8151 949 29910 9152 491$210 794$210 7941 520 996108 643$659 87020562057205820592060$0$0$0$0$0$85,0002,102,114152,8151,949,29910,9152,491$210,794$210,7941,520,996 108,643 $659,870$0 $0 $0 $0 $0 $85,000 2,144,157 164,236 1,979,920 11,731 2,584 $219,661 $219,661 1,490,375 106,455 $657,209$0 $0 $0 $0 $0 $85,000 2,187,040 175,999 2,011,041 12,571 2,680 $228,952 $228,952 1,459,254 104,232 $654,069$0 $0 $0 $0 $0 $85,000 2,230,780 187,534 2,043,246 13,395 2,755 $237,933 $237,933 1,427,049 101,932 $649,672$0$0$0$0$0$85,0002,275,396199,1762,076,22014,2272,825$247,093$247,0931,394,07599,577$644,4632060206120622063$0$0$0$0$0$85,0002,275,396199,1762,076,22014,2272,825$247,093$247,0931,394,075 99,577 $644,463$0 $0 $0 $0 $0 $85,000 2,320,904 211,744 2,109,160 15,125 2,896 $257,006 $257,006 1,361,135 97,224 $638,972$0 $0 $0 $0 $0 $85,000 2,367,322 224,824 2,142,498 16,059 2,969 $267,471 $267,471 1,327,797 94,843 $632,948$0 $0 $0 $0 $0 $85,000 2,414,668 237,746 2,176,923 16,982 3,021 $277,682 $277,682 1,293,372 92,384 $625,5359/4/2014Page 2 of 320140904‐power‐model.xlsx Economic Update and Heating Analysis Result TablesAlaska Village Electric Alaska CooperativeOld Harbor Hydroelectric ProjectSUM 50YRSNPV 50YRS77,400,000 99,860,000 6,350,000 71,040,000 450,000 11,940,000 87,920,000 2,751,316 $250,000 $0 $41,800,000 80,121,1425,722,939 $25,250,000 $0$222,122 $84,902 $24,155,032 $12,085,650 $263,203E E Hydroelectric Generation costs, Dispatchable Heat Excess Energy Potential - 2 turbines, Dispatchable HeatYear2014Electric Demand, kWhHeat Demand, kWhDiesel Electric Generation, kWhHydro Electric Generation, kWhDiesel Electric Fuel Used, galDiesel Run HoursHydroelectric Heating, kWhDiesel Fired Heating, kWhDiesel Heating Fuel Used, galElectric Boiler Equip Cost, $2014Second Turbine, $2014Total Hydro Cost, $2014Remaining Energy Available, kWhEquivalent Displaced Fuel, galsExcess Energy Benefit, fuel only (non fuel savings subtracted), $2014Cost Addition for 2 turbines, $2014915 0591 997 143915 05965 3618 7601 997 14362 500$0$0$776 85200$020142015201620172018915,0591,997,143915,05965,3618,7601,997,14362,500$0$0$776,85200$0933,360 1,997,143 933,360 66,669 8,760 1,997,143 62,500$0 $0 $1,165,565 0 0 $0952,027 1,997,143 952,027 68,002 8,760 1,997,143 62,500$0 $0 $1,508,172 0 0 $0971,068 1,997,143 1,726 969,342 123 37286,075 1,711,069 53,547 $250,000 $0 $9,188,535 2,214,879 158,206 $465,504 $750,000990 4891 997 1432 325988 16516649285 6541 711 48953 561$0$0$404 9722 196 476156 891$468 727$020182019202020212022990,4891,997,1432,325988,16516649285,6541,711,48953,561$0$0$404,9722,196,476156,891$468,727$01,010,299 1,997,143 3,0271,007,272 216 64 285,287 1,711,856 53,572 $0 $0 $409,8152,177,736 155,553 $472,045 $01,030,505 1,997,143 4,1481,026,357 296 88 285,182 1,711,961 53,575 $0 $0 $416,2342,158,756 154,197 $477,902 $01,051,115 1,997,143 5,2911,045,824 378 113 285,075 1,712,069 53,579 $0 $0 $422,7612,139,397 152,814 $483,615 $01,072,137 1,997,143 6,457 1,065,680 461 137 284,965 1,712,178 53,582$0$0$429,606 2,119,650 151,404$489,570$02023202420252026,,,,,,,,,,,$$$,,,,$,$1,093,580 1,997,143 7,6471,085,933 546 163 284,854 1,712,290 53,586 $0 $0 $436,5912,099,508 149,965 $495,404 $01,115,452 1,997,143 9,1821,106,270 656 195 284,462 1,712,681 53,598 $0 $0 $444,1162,079,563 148,540 $501,628 $01,137,761 1,997,143 10,8321,126,929 774 230 283,989 1,713,154 53,613 $0 $0 $451,6502,059,377 147,098 $507,383 $01,160,516 1,997,143 12,5151,148,001 894 266 283,506 1,713,637 53,628 $0 $0 $459,1132,038,787 145,628 $512,575 $0202720282029203020311,183,726 1,997,143 14,231 1,169,495 1,017 303 283,014 1,714,129 53,643 $0 $0 $466,2872,017,786 144,128 $516,805 $01,207,401 1,997,143 16,422 1,190,979 1,173 349 282,380 1,714,763 53,663 $0 $0 $474,5191,996,936 142,638 $522,222 $01,231,549 1,997,143 18,803 1,212,746 1,343 400 281,688 1,715,455 53,685 $0 $0 $482,4961,975,861 141,133 $526,620 $01,256,180 1,997,143 21,232 1,234,948 1,517 452 280,983 1,716,160 53,707 $0 $0 $490,7001,954,364 139,597 $530,936 $01 281 3041 997 14323 7221 257 5811 694505280 2681 716 87553 729$0$0$498 6451 932 445138 032$534 307$0203120322033203420351,281,3041,997,14323,7221,257,5811,694505280,2681,716,87553,729$0$0$498,6451,932,445138,032$534,307$01,306,930 1,997,143 27,671 1,279,259 1,976 589 280,062 1,717,082 53,736 $0 $0 $508,2021,910,975 136,498 $539,178 $01,333,068 1,997,143 31,698 1,301,370 2,264 674 279,851 1,717,292 53,742 $0 $0 $518,2571,889,075 134,934 $544,324 $01,359,730 1,997,143 35,8071,323,923 2,558 762 279,636 1,717,508 53,749 $0 $750,000 $1,278,421 1,866,736 133,338 $549,061 -$750,0001 386 9241 997 14340 0851 346 8392 863853279 0321 718 11153 768$0$0$538 0261 844 424131 745$552 256$0203520362037203820391,386,9241,997,14340,0851,346,8392,863853279,0321,718,11153,768$0$0$538,0261,844,424131,745$552,256$01,414,663 1,997,143 44,530 1,370,132 3,181 947 278,066 1,719,078 53,798 $0 $0 $547,7111,822,097 130,150 $554,970 $01,442,956 1,997,143 49,065 1,393,891 3,505 1,044 277,080 1,720,063 53,829 $0 $0 $557,6561,799,324 128,523 $557,519 $01,471,815 1,997,143 52,975 1,418,840 3,784 1,127 275,521 1,721,622 53,878 $0 $0 $567,4291,775,934 126,852 $559,524 $01 501 2511 997 14354 9711 446 2803 9271 170272 3871 724 75653 976$0$0$576 2391 751 628125 116$560 317$0203920402041204220431,501,2511,997,14354,9711,446,2803,9271,170272,3871,724,75653,976$0$0$576,2391,751,628125,116$560,317$01,531,276 1,997,143 57,007 1,474,269 4,072 1,213 269,190 1,727,953 54,076 $0 $0 $585,2641,726,836 123,345 $560,840 $01,561,902 1,997,143 59,452 1,502,450 4,247 1,265 265,979 1,731,164 54,176 $0 $0 $594,7861,701,866 121,562 $561,345 $01,593,140 1,997,143 63,399 1,529,741 4,528 1,346 262,902 1,734,241 54,273 $0 -$750,000 $605,651 1,677,652 119,832 $562,629 $01,625,003 1,997,143 67,425 1,557,578 4,816 1,430 259,764 1,737,379 54,371 $0 $0 $616,785 1,652,953 118,068 $563,623 $02044204520462047,,,,,,,,,,,,,,,,,,1,657,503 1,997,143 71,844 1,585,659 5,132 1,518 256,604 1,740,539 54,470 $0 $0 $628,3691,628,032 116,288 $564,476 $01,690,653 1,997,143 77,029 1,613,624 5,502 1,614 253,471 1,743,672 54,568 $0 $0 $640,6251,603,200 114,514 $565,374 $01,724,466 1,997,143 82,318 1,642,148 5,880 1,711 250,276 1,746,867 54,668 $0 $0 $653,1901,577,871 112,705 $565,944 $01,758,955 1,997,143 87,942 1,671,014 6,282 1,803 246,578 1,750,565 54,783 $0 $0 $666,1681,552,703 110,907 $566,338 $0204820492050205120521,794,134 1,997,143 93,840 1,700,294 6,703 1,890 242,496 1,754,648 54,911 $0 $0 $679,5541,527,505 109,108 $566,501 $01,830,017 1,997,143 99,857 1,730,160 7,133 1,980 238,331 1,758,812 55,041 $0 $0 $693,3041,501,803 107,272 $566,314 $01,866,617 1,997,143 106,568 1,760,049 7,612 2,061 234,166 1,762,978 55,172 $0 $0 $707,4901,476,081 105,434 $565,802 $01,903,950 1,997,143 113,416 1,790,534 8,101 2,145 229,917 1,767,227 55,305 $0 $0 $722,0701,449,844 103,560 $564,904 $01 942 0291 997 143120 1451 821 8838 5822 213225 6121 771 53155 440$0$0$736 6171 422 799101 629$563 155$0205220532054205520561,942,0291,997,143120,1451,821,8838,5822,213225,6121,771,53155,440$0$0$736,6171,422,799101,629$563,155$01,980,869 1,997,143 126,785 1,854,084 9,056 2,269 221,248 1,775,895 55,576 $0 $0 $751,1811,394,962 99,640 $560,571 $02,020,487 1,997,143 133,995 1,886,491 9,571 2,330 216,928 1,780,215 55,711 $0 $0 $766,4051,366,876 97,634 $557,739 $02,060,896 1,997,143 143,312 1,917,584 10,237 2,410 213,108 1,784,035 55,831 $0 $0 $783,1911,339,602 95,686 $555,440 $02 102 1141 997 143152 8151 949 29910 9152 491209 2121 787 93155 953$0$0$800 4711 311 78493 699$552 667$0205620572058205920602,102,1141,997,143152,8151,949,29910,9152,491209,2121,787,93155,953$0$0$800,4711,311,78493,699$552,667$02,144,157 1,997,143 164,236 1,979,920 11,731 2,584 206,265 1,790,878 56,045 $0 $0 $819,0151,284,109 91,722 $549,958 $02,187,040 1,997,143 175,999 2,011,041 12,571 2,680 203,327 1,793,817 56,137 $0 $0 $838,1671,255,928 89,709 $546,783 $02,230,780 1,997,143 187,534 2,043,246 13,395 2,755 199,637 1,797,506 56,252 $0 $0 $857,4571,227,412 87,672 $542,770 $02,275,3961,997,143199,1762,076,22014,2272,825195,6881,801,45656,376$0$0$877,2181,198,38785,599$538,116$020602061206220632,275,3961,997,143199,1762,076,22014,2272,825195,6881,801,45656,376$0$0$877,2181,198,38785,599$538,116$02,320,904 1,997,143 211,744 2,109,160 15,125 2,896 191,456 1,805,687 56,508 $0 $0 $898,0431,169,679 83,549 $533,372 $02,367,322 1,997,143 224,824 2,142,498 16,059 2,969 187,063 1,810,081 56,646 $0 $0 $919,6931,140,735 81,481 $528,225 $02,414,668 1,997,143 237,746 2,176,923 16,982 3,021 182,565 1,814,579 56,787 $0 $0 $941,3521,110,808 79,343 $521,794 $09/4/2014Page 3 of 320140904‐power‐model.xlsx Department of Natural Resources Division of Mining, Land & Water Water Resources Section Southeastern Office P. O. Box 111020 Juneau, Alaska 99811-1020 Main: 907.465.3400 TDD: 907.465.3888 Fax: 907.586.2954 July 31, 2014 Kate Arduser Solstice Alaska Consulting 2607 Fairbanks St, Anchorage, AK 99503 Re: Old Harbor Hydroelectric Project Kate, Our records show that Alaska Village Electric Cooperative (AVEC) applied for water rights for the Old Harbor Hydroelectric Project for water from Mountain Creek near Old Harbor on Kodiak Island, Alaska. The priority date for the application is May 1999 and the file number is LAS 22628. The Alaska Department of Natural Resources (DNR) allocates water according to seniority of priority date and there are no senior appropriators on Mountain Creek. The application is complete and DNR does not require anything further from AVEC at this point. However, DNR has not granted a permit to appropriate water because it is our policy to hold off granting a permit to appropriate water until FERC grants a license. We do this to ensure the conditions on the permit mirror those in the FERC license. As you know the FERC license process can take time. As project plans develop DNR may require further information from AVEC. If you or anyone working with you on this project has any questions or comments, please contact me. Sincerely, Carl Reese Natural Resource Manager Carl.Reese@alaska.gov (907) 465-2533 FERC 13272 −004 (401 −Waiver).docx̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅̅ 555 Cordova Street Anchorage, Alaska 99501-2617 Main: 907.269.6285 Fax: 907.334.2415 www.dec.alaska.gov/water/wwdp July 14, 2014 Certified Mail: 7012-3460-0002-9326-7008 Meera Kohler Alaska Village Electric Cooperative, Inc (AVEC) 4831 Eagle Street Anchorage, AK 99503 Re: FERC No. 13272-004 – Alaska, Old Harbor Hydroelectric Project, AVEC. Dear Ms. Kohler, In accordance with Section 401 of the Federal Clean Water Act of 1977 and provisions of the Alaska Water Quality Standards, the Department of Environmental Conservation (DEC) is waiving its right to issue a Certificate of Reasonable Assurance for licensing Federal Energy Regulatory Commission (FERC) Project No. 13272-004 – Alaska, Old Harbor Hydroelectric Project, AVEC. DEC reserves the right to review future construction projects, as they may arise, in accordance with Section 401 of the Clean Water Act of 1977, and the provisions of the Alaska Water Quality Standards (18 AAC 70). DEC regulations provide that any person who disagrees with this decision may request an informal review by the Division Director in accordance with 18 AAC 15.185 or an adjudicatory hearing in accordance with 18 AAC 15.195 – 18 AAC 15.340. An informal review request must be delivered to the Director, Division of Water, 555 Cordova Street, Anchorage, AK 99501, within 15 days of the permit decision. Visit http://www.dec.state.ak.us/commish/ReviewGuidance.htm for information on Administrative Appeals of Department decisions. An adjudicatory hearing request must be delivered to the Commissioner of the Department of Environmental Conservation, 410 Willoughby Avenue, Suite 303, PO Box 111800, Juneau, AK 99811- 1800, within 30 days of the permit decision. If a hearing is not requested within 30 days, the right to appeal is waived. If you have any questions regarding the above, please contact me at 907.334.2288 or via email at James.Rypkema@alaska.gov. Sincerely, James Rypkema Section Manager, Storm Water and Wetlands cc: Michael Daigneault, ADF&G USFWS Field Office, Anchorage Heather Dean, EPA Operations, Anchorage Kate Arduser, Solstice Alaska Consulting, Inc. Adam Beeco, FERC Renewable Energy Fund Economic Benefit-Cost Analysis Model Project Description Community Nearest Fuel Community Region RE Technology Project ID Applicant Name Project Title Results NPV Benefits $26,828,136 NPV Capital Costs $9,192,919 B/C Ratio 2.92 NPV Net Benefit $17,635,217 Performance Unit Value Displaced Electricity kWh per year 1,692,792 Displaced Electricity total lifetime kWh 71,041,926 Displaced Petroleum Fuel gallons per year 128,266 Displaced Petroleum Fuel total lifetime gallons 5,448,107 Displaced Natural Gas mmBtu per year - Displaced Natural Gas total lifetime mmBtu - Avoided CO2 tonnes per year 1,302 Avoided CO2 total lifetime tonnes 55,298 Proposed System Unit Value Capital Costs $10,600,000$ Project Start year 2017 Project Life years 50 Displaced Electric kWh per year 1,692,792 Displaced Heat gallons displaced per year 8,369 Displaced Transportation gallons displaced per year Renewable Generation O&M $ per kWh Electric Capacity kW 525 Electric Capacity Factor %59% Heating Capacity Btu/hr Heating Capacity Factor % Total Public Benefit 2013$ (Total over the life of the project) Base System Unit Value Diesel Generator O&M $ per kWh Applicant's Diesel Generator Efficiency kWh per gallon 14 Diesel Generation Efficiency kWh per gallon 14.00 Parameters Unit Value Heating Fuel Premium $ per gallon 0.94$ Transportation Fuel Premium $ per gallon -$ Discount Rate % per year 3% Crude Oil $ per barrel EIA Mid Natural Gas $ per mmBtu Old Harbor Rural Hydro (Run of River) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Annual Cost Savings Units 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 PV Entered Value Project Capital Cost $ per year -$ 359,054$ 702,757$ 8,788,189$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 750,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $9,192,919 Electric Cost Savings $ per year -$ -$ -$ 321,571$ 329,574$ 337,933$ 347,724$ 357,880$ 368,613$ 379,771$ 391,506$ 403,478$ 415,678$ 427,877$ 441,103$ 454,226$ 467,893$ 481,564$ 495,824$ 510,922$ 526,430$ 541,310$ 556,302$ 571,855$ 588,364$ 606,549$ 625,400$ 644,768$ 664,163$ 684,249$ 704,859$ 725,787$ 747,449$ 769,997$ 793,424$ 817,683$ 842,169$ 867,526$ 894,115$ 921,945$ 950,496$ 978,831$ 1,008,172$ 1,037,362$ 1,067,504$ 1,099,047$ 1,131,800$ 1,165,836$ 1,201,114$ 1,237,874$ 1,276,018$ 1,313,654$ 1,352,255$ 1,466,103$ 1,583,177$ 1,702,845$ 1,825,702$ 1,951,831$ 2,082,860$ 2,217,507$ 2,354,800$ 2,494,439$ $13,276,067 Heating Cost Savings $ per year -$ -$ -$ 52,524$ 53,135$ 53,779$ 54,691$ 55,616$ 56,587$ 57,575$ 58,540$ 59,467$ 60,369$ 61,210$ 62,123$ 62,947$ 63,788$ 64,568$ 65,554$ 66,599$ 67,640$ 68,452$ 69,141$ 69,838$ 70,401$ 70,565$ 70,707$ 70,841$ 71,004$ 71,144$ 71,271$ 71,397$ 71,497$ 71,444$ 71,266$ 71,048$ 70,812$ 70,531$ 70,214$ 69,857$ 69,492$ 69,268$ 69,000$ 69,031$ 69,054$ 68,806$ 68,449$ 67,969$ 67,404$ 66,772$ 66,073$ 65,639$ 65,216$ 68,526$ 71,571$ 74,085$ 76,698$ 79,436$ 82,152$ 84,831$ 87,644$ 90,503$ $1,466,419 Transportation Cost Savings $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value Other Public Benefits $ per year -$ -$ -$ 465,504$ 468,727$ 472,045$ 477,902$ 483,615$ 489,570$ 495,404$ 501,628$ 507,383$ 512,575$ 516,805$ 522,222$ 526,620$ 530,936$ 534,307$ 539,178$ 544,324$ 549,061$ 552,256$ 554,970$ 557,519$ 559,524$ 560,317$ 560,840$ 561,345$ 562,629$ 563,623$ 564,476$ 565,374$ 565,944$ 566,338$ 566,501$ 566,314$ 565,802$ 564,904$ 563,155$ 560,571$ 557,739$ 555,440$ 552,667$ 549,958$ 546,783$ 542,770$ 538,116$ 533,372$ 528,225$ 521,794$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $12,085,650 Total Cost Savings $ per year -$ -$ -$ 839,599$ 851,436$ 863,758$ 880,318$ 897,111$ 914,769$ 932,750$ 951,673$ 970,328$ 988,622$ 1,005,892$ 1,025,448$ 1,043,793$ 1,062,617$ 1,080,439$ 1,100,556$ 1,121,845$ 1,143,131$ 1,162,019$ 1,180,412$ 1,199,212$ 1,218,289$ 1,237,430$ 1,256,947$ 1,276,953$ 1,297,796$ 1,319,016$ 1,340,605$ 1,362,558$ 1,384,890$ 1,407,779$ 1,431,191$ 1,455,044$ 1,478,782$ 1,502,961$ 1,527,484$ 1,552,373$ 1,577,727$ 1,603,538$ 1,629,839$ 1,656,351$ 1,683,341$ 1,710,623$ 1,738,365$ 1,767,176$ 1,796,743$ 1,826,439$ 1,342,091$ 1,379,293$ 1,417,472$ 1,534,629$ 1,654,748$ 1,776,931$ 1,902,400$ 2,031,267$ 2,165,012$ 2,302,338$ 2,442,444$ 2,584,942$ $26,828,136 Net Benefit $ per year $0 ($359,054)($702,757)($7,948,590)$851,436 $863,758 $880,318 $897,111 $914,769 $932,750 $951,673 $970,328 $988,622 $1,005,892 $1,025,448 $1,043,793 $1,062,617 $1,080,439 $1,100,556 $1,121,845 $393,131 $1,162,019 $1,180,412 $1,199,212 $1,218,289 $1,237,430 $1,256,947 $1,276,953 $1,297,796 $1,319,016 $1,340,605 $1,362,558 $1,384,890 $1,407,779 $1,431,191 $1,455,044 $1,478,782 $1,502,961 $1,527,484 $1,552,373 $1,577,727 $1,603,538 $1,629,839 $1,656,351 $1,683,341 $1,710,623 $1,738,365 $1,767,176 $1,796,743 $1,826,439 $1,342,091 $1,379,293 $1,417,472 $1,534,629 $1,654,748 $1,776,931 $1,902,400 $2,031,267 $2,165,012 $2,302,338 $2,442,444 $2,584,942 $17,635,217 Electric Units 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 PV Renewable Generation kWh per year - - - 969,342 988,165 1,007,272 1,026,357 1,045,824 1,065,680 1,085,933 1,106,270 1,126,929 1,148,001 1,169,495 1,190,979 1,212,746 1,234,948 1,257,581 1,279,259 1,301,370 1,323,923 1,346,839 1,370,132 1,393,891 1,418,840 1,446,280 1,474,269 1,502,450 1,529,741 1,557,578 1,585,659 1,613,624 1,642,148 1,671,014 1,700,294 1,730,160 1,760,049 1,790,534 1,821,883 1,854,084 1,886,491 1,917,584 1,949,299 1,979,920 2,011,041 2,043,246 2,076,220 2,109,160 2,142,498 2,176,923 2,212,179 2,245,492 2,278,976 2,313,898 2,349,105 2,383,651 2,418,504 2,453,699 2,490,010 2,526,655 2,562,743 2,597,911 Entered Value Renewable Scheduled Repairs $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Renewable O&M $ per year -$ -$ -$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ $1,946,598 Entered Value Renewable Fuel Use Quantity (Biomass)green tons - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Entered Value Renewable Fuel Cost $ per unit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Renewable Fuel Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Proposed Generation Cost $ per year -$ -$ -$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ 85,000$ $1,946,598 Fossil Fuel Generation kWh per year - - - 969,342 988,165 1,007,272 1,026,357 1,045,824 1,065,680 1,085,933 1,106,270 1,126,929 1,148,001 1,169,495 1,190,979 1,212,746 1,234,948 1,257,581 1,279,259 1,301,370 1,323,923 1,346,839 1,370,132 1,393,891 1,418,840 1,446,280 1,474,269 1,502,450 1,529,741 1,557,578 1,585,659 1,613,624 1,642,148 1,671,014 1,700,294 1,730,160 1,760,049 1,790,534 1,821,883 1,854,084 1,886,491 1,917,584 1,949,299 1,979,920 2,011,041 2,043,246 2,076,220 2,109,160 2,142,498 2,176,923 2,212,179 2,245,492 2,278,976 2,313,898 2,349,105 2,383,651 2,418,504 2,453,699 2,490,010 2,526,655 2,562,743 2,597,911 Fuel Price $ per gallon 3.88$ 4.04$ 3.99$ 3.99$ 4.05$ 4.10$ 4.17$ 4.24$ 4.32$ 4.40$ 4.48$ 4.55$ 4.63$ 4.70$ 4.79$ 4.86$ 4.94$ 5.01$ 5.09$ 5.18$ 5.26$ 5.34$ 5.41$ 5.48$ 5.56$ 5.63$ 5.71$ 5.79$ 5.87$ 5.96$ 6.04$ 6.13$ 6.21$ 6.30$ 6.39$ 6.48$ 6.58$ 6.67$ 6.77$ 6.87$ 6.97$ 7.07$ 7.17$ 7.28$ 7.39$ 7.50$ 7.61$ 7.72$ 7.84$ 7.96$ 8.08$ 8.20$ 8.32$ 8.90$ 9.47$ 10.05$ 10.62$ 11.20$ 11.78$ 12.36$ 12.94$ 13.53$ Entered Value Scheduled Repairs $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value O&M $ per year -$ -$ -$ 130,062$ 128,994$ 127,923$ 126,913$ 125,882$ 124,831$ 123,759$ 122,796$ 121,847$ 120,880$ 119,894$ 119,021$ 118,176$ 117,314$ 116,435$ 115,602$ 114,753$ 113,886$ 112,967$ 111,996$ 111,006$ 110,092$ 109,430$ 108,754$ 108,049$ 107,268$ 106,472$ 105,607$ 104,613$ 103,598$ 102,767$ 102,064$ 101,346$ 100,249$ 99,129$ 98,191$ 97,414$ 96,566$ 95,455$ 94,321$ 92,869$ 91,368$ 89,924$ 88,474$ 87,493$ 86,681$ 85,852$ 85,007$ 83,834$ 82,575$ 80,910$ 79,211$ 77,478$ 75,639$ 73,697$ 72,576$ 71,527$ 70,350$ 69,149$ $2,595,304 Fuel Use gallons per year - - - 69,239 70,583 71,948 73,311 74,702 76,120 77,567 79,019 80,495 82,000 83,535 85,070 86,625 88,211 89,827 91,376 92,955 94,566 96,203 97,867 99,564 101,346 103,306 105,305 107,318 109,267 111,256 113,261 115,259 117,296 119,358 121,450 123,583 125,718 127,895 130,135 132,435 134,749 136,970 139,236 141,423 143,646 145,946 148,301 150,654 153,036 155,494 158,013 160,392 162,784 165,278 167,793 170,261 172,750 175,264 177,858 180,475 183,053 185,565 Fuel Cost $ per year -$ -$ -$ 276,509$ 285,581$ 295,011$ 305,812$ 316,998$ 328,782$ 341,012$ 353,710$ 366,631$ 379,797$ 392,983$ 407,081$ 421,050$ 435,579$ 450,129$ 465,222$ 481,169$ 497,543$ 513,344$ 529,306$ 545,849$ 563,272$ 582,119$ 601,646$ 621,719$ 641,895$ 662,777$ 684,252$ 706,174$ 728,851$ 752,230$ 776,360$ 801,337$ 826,920$ 853,397$ 880,925$ 909,531$ 938,930$ 968,376$ 998,851$ 1,029,493$ 1,061,136$ 1,094,123$ 1,128,326$ 1,163,342$ 1,199,433$ 1,237,022$ 1,276,011$ 1,314,821$ 1,354,680$ 1,470,193$ 1,588,966$ 1,710,367$ 1,835,064$ 1,963,134$ 2,095,285$ 2,230,979$ 2,369,450$ 2,510,290$ $12,627,361 Base Generation Cost $ per year -$ -$ -$ 406,571$ 414,574$ 422,933$ 432,724$ 442,880$ 453,613$ 464,771$ 476,506$ 488,478$ 500,678$ 512,877$ 526,103$ 539,226$ 552,893$ 566,564$ 580,824$ 595,922$ 611,430$ 626,310$ 641,302$ 656,855$ 673,364$ 691,549$ 710,400$ 729,768$ 749,163$ 769,249$ 789,859$ 810,787$ 832,449$ 854,997$ 878,424$ 902,683$ 927,169$ 952,526$ 979,115$ 1,006,945$ 1,035,496$ 1,063,831$ 1,093,172$ 1,122,362$ 1,152,504$ 1,184,047$ 1,216,800$ 1,250,836$ 1,286,114$ 1,322,874$ 1,361,018$ 1,398,654$ 1,437,255$ 1,551,103$ 1,668,177$ 1,787,845$ 1,910,702$ 2,036,831$ 2,167,860$ 2,302,507$ 2,439,800$ 2,579,439$ $15,222,665 Heating Units 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 PV Renewable Heat gallons displaced per year 0 0 0 8,953 8,939 8,928 8,925 8,921 8,918 8,914 8,902 8,887 8,872 8,857 8,837 8,815 8,793 8,771 8,764 8,758 8,751 8,732 8,702 8,671 8,622 8,524 8,424 8,324 8,227 8,129 8,030 7,932 7,832 7,717 7,589 7,459 7,328 7,195 7,060 6,924 6,789 6,669 6,547 6,455 6,363 6,248 6,124 5,992 5,854 5,713 5,570 5,450 5,334 5,244 5,145 5,020 4,915 4,827 4,747 4,671 4,609 4,554 Entered Value Renewable Heat Scheduled Repairs $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value Renewable Heat O&M $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value Renewable Fuel Use Quantity (Biomass)green tons - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Entered Value Renewable Fuel Cost $ per unit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Renewable Fuel Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Proposed Heat Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Fuel Use gallons per year - - - 8,953 8,939 8,928 8,925 8,921 8,918 8,914 8,902 8,887 8,872 8,857 8,837 8,815 8,793 8,771 8,764 8,758 8,751 8,732 8,702 8,671 8,622 8,524 8,424 8,324 8,227 8,129 8,030 7,932 7,832 7,717 7,589 7,459 7,328 7,195 7,060 6,924 6,789 6,669 6,547 6,455 6,363 6,248 6,124 5,992 5,854 5,713 5,570 5,450 5,334 5,244 5,145 5,020 4,915 4,827 4,747 4,671 4,609 4,554 Fuel Cost $ per gallon 5.70$ 5.93$ 5.87$ 5.87$ 5.94$ 6.02$ 6.13$ 6.23$ 6.35$ 6.46$ 6.58$ 6.69$ 6.80$ 6.91$ 7.03$ 7.14$ 7.25$ 7.36$ 7.48$ 7.60$ 7.73$ 7.84$ 7.95$ 8.05$ 8.16$ 8.28$ 8.39$ 8.51$ 8.63$ 8.75$ 8.88$ 9.00$ 9.13$ 9.26$ 9.39$ 9.53$ 9.66$ 9.80$ 9.94$ 10.09$ 10.24$ 10.39$ 10.54$ 10.69$ 10.85$ 11.01$ 11.18$ 11.34$ 11.51$ 11.69$ 11.86$ 12.04$ 12.23$ 13.07$ 13.91$ 14.76$ 15.61$ 16.46$ 17.31$ 18.16$ 19.02$ 19.87$ Entered Value Scheduled Repairs $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value O&M $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Annual Fuel Cost $ per year -$ -$ -$ 52,523.52$ 53,135.17$ 53,779.23$ 54,691.47$ 55,615.80$ 56,586.73$ 57,574.59$ 58,539.97$ 59,466.93$ 60,369.06$ 61,210.47$ 62,123.06$ 62,946.95$ 63,788.19$ 64,567.94$ 65,553.69$ 66,598.62$ 67,639.85$ 68,452.49$ 69,140.66$ 69,837.84$ 70,401.41$ 70,564.71$ 70,707.37$ 70,840.87$ 71,004.00$ 71,144.07$ 71,270.87$ 71,397.06$ 71,496.90$ 71,444.25$ 71,266.40$ 71,048.03$ 70,811.52$ 70,531.19$ 70,213.94$ 69,857.00$ 69,492.19$ 69,267.86$ 69,000.25$ 69,031.01$ 69,053.67$ 68,806.31$ 68,448.97$ 67,968.61$ 67,403.82$ 66,771.78$ 66,073.20$ 65,639.06$ 65,216.42$ 68,526.41$ 71,570.69$ 74,085.45$ 76,697.75$ 79,435.52$ 82,152.09$ 84,831.02$ 87,644.16$ 90,503.03$ $1,466,419 Base Heating Cost $ per year -$ -$ -$ 52,523.52$ 53,135.17$ 53,779.23$ 54,691.47$ 55,615.80$ 56,586.73$ 57,574.59$ 58,539.97$ 59,466.93$ 60,369.06$ 61,210.47$ 62,123.06$ 62,946.95$ 63,788.19$ 64,567.94$ 65,553.69$ 66,598.62$ 67,639.85$ 68,452.49$ 69,140.66$ 69,837.84$ 70,401.41$ 70,564.71$ 70,707.37$ 70,840.87$ 71,004.00$ 71,144.07$ 71,270.87$ 71,397.06$ 71,496.90$ 71,444.25$ 71,266.40$ 71,048.03$ 70,811.52$ 70,531.19$ 70,213.94$ 69,857.00$ 69,492.19$ 69,267.86$ 69,000.25$ 69,031.01$ 69,053.67$ 68,806.31$ 68,448.97$ 67,968.61$ 67,403.82$ 66,771.78$ 66,073.20$ 65,639.06$ 65,216.42$ 68,526.41$ 71,570.69$ 74,085.45$ 76,697.75$ 79,435.52$ 82,152.09$ 84,831.02$ 87,644.16$ 90,503.03$ $1,466,419 Transportation Units 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 PV Renewable Transportation Use gallons displaced per year - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Entered Value Scheduled Repairs ($)$ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value O&M $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Proposed Transportation Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Transportation Fuel Use gallons per year - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Transportation Fuel Cost $ per gallon 4.47$ 4.32$ 4.23$ 4.15$ 4.13$ 4.15$ 4.20$ 4.25$ 4.32$ 4.38$ 4.45$ 4.52$ 4.58$ 4.63$ 4.69$ 4.74$ 4.80$ 4.85$ 4.91$ 4.98$ 5.05$ 5.11$ 5.18$ 5.24$ 5.31$ 5.38$ 5.47$ 5.56$ 5.61$ 5.66$ 5.71$ 5.76$ 5.81$ 5.87$ 5.92$ 5.98$ 6.04$ 6.09$ 6.15$ 6.22$ 6.28$ 6.34$ 6.41$ 6.47$ 6.54$ 6.61$ 6.68$ 6.75$ 6.83$ 6.90$ 6.98$ 7.06$ 7.14$ 7.22$ 7.31$ 7.39$ 7.48$ 7.57$ 7.67$ 7.76$ 7.86$ 7.96$ Entered Value Scheduled Repairs ($)$ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Entered Value O&M $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Annual Fuel Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Base Transportation Cost $ per year -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $0 Base Proposed Base Proposed Base Proposed