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HomeMy WebLinkAboutEnergy Buisiness PlanCITY OF CHEFORNAK FINAL ENERGY BUSINESS PLAN Submitted To: City of Chefornak P.O. Box 29 Chefornak, AK 99561 Prepared By: Marsh Creek Energy Systems 2000 East 881" Avenue Anchorage, Alaska 99502 May 14, 2012 MARSHCREEK New Airport The airport project currently under construction and expected to be completed in 2013. The project includes the following: • Lighted runway with PAP or VASI approach lights - 8kVA. • Two sheds for snow removal equipment. - 23 kVA each. • 8,500' single-phase 7200 volt overhead power line extension to airport. There will be no lighting. Halibut Plant The Halibut Plant was formerly a processing plant operated by Coastal Villages Region Fund (CVRF). More recently it has been used only as a buying facility with an ice machine. It may go back to operating as a summer only processing plant with only a modest increase in usage estimated as no more than 20% annually. 4,951 kWh July 2010 4, 610 kWh July 2011 Sanitation Facilities Susan Randlett of the State of Alaska's Village Safe Water (VSW) Program has provided an update on future plans for the community's sanitation facilities. The Indian Health Service granted funding for a new sewer lagoon, force main, lift station, a new washeteria, replaced watering points, a new water storage tank and upgraded well house. In 2011 Chefornak School began operating the reverse osmosis/ ultra filtration water treatment system. The City of Chefornak has requested that the City be allowed to pay the school for water at the cost of $.33 cents a gallon and the LKSD allow installation of a watering point for the public to purchase school water. Fuel and energy needs as a result of the future project are estimated as follows: • 12 existing watering points distributing City well water - There will be overall reduction in electricity usage. The future watering points will have a better quality. • The new washeteria will still require electricity and fuel. It will be situated near the power plant to use excess heat from the diesel generators to displace heating oil. • The new well house to replace the washeteria will be designed to be more energy efficient. • The current temporary washeteria discharges to a holding tank. In the future, the wastewater from both the school and the washeteria will be discharged to a constructed lagoon. Wastewater will be pumped to the lagoon. The force main will use hydronic heating, but the lift station will need electricity. • The temporary washeteria can use less energy as soon as funding is available for completion of the waste heat design. -3- Upon final determination of the exact project scope, detailed design of the new facilities will begin. Clinic In 2007, a new clinic was completed in Chefornak. The Yukon Kuskokwim Health Corporation (YKHC) has no plans for an expansion. Communications AT&T, United Utilities, and GCI have no plans for upgrades that would add to the electric load. As equipment needs to be replaced, it is likely that the facilities will become more energy efficient. CHEFORNAK ENERGY INFRASTRUCTURE Bulk Fuel Tank Farm One section of 5 tanks is owned by the City, one section with 12 tanks is owned by the Chefarnrmute, Incorporated, and one section with 2 tanks is owned by the Lower Kuskokwim School District (LKSD). The City/Electric Utility has usable diesel fuel storage capacity of 76,840 gallons. A U.S. Department of Housing and Urban Development (HUD) grant funded a dike around the tank farm to satisfy U.S. Coast Guard requirements. CITY TANKS Tank Capacity # Gal Usable 1 10,000 9,336 7 14,000 13,001 SCHOOLTANKS Tank Capacity # Gal Type 18 40,740 Diesel 40,740 Diesel Gallons 8 15,000 12,180 81,480 Diesel 9 8,000 7,491 17 10,000 9,038 57,000 51,046 City Bulk Fuel Tank Farm Capacity PP 27,000 25,794 Power Plant Note: Total City Diesel 84,000 76,840 Capacity Usable double -walled tank outside fence with no fill- 6, 000 line. CHEFARNRMUTE CORPORATION TANKS Tank Capacity Type # Gal 2 15,410 Gas 4 8,330 Gas 5 10,330 Gas 15 15,000 Gas 16 15,000 Gas 20B 2,000 Gas 66,070 Gallons Gasoline Tank Capacity Type # Gal 3 10,414 Diesel 6 10,300 Diesel 10 8,280 Diesel 11 6,150 Diesel 13 15,000 Diesel 12 6,060 Diesel 14 15,000 Diesel 20A 2,000 Diesel Gallons 73,204 Diesel Last year the City's annual diesel/heat fuel consumption for diesel generators and the washeteria was 134,000 gallons. The City topped off the City -owned tanks (76,840 gallons) in August with the fall fuel barge delivery. Once the City tanks are empty (usually during the early spring, the City must purchase fuel from Chefarnmute Corporation or the school. For example, the last barge delivered fuel cost was $4.3783 per gallon. The cost per gallon from Chefarnrmute Corporation is $7.00 per gallon in March of 2012. Wind Turbines The City contracted with STG Incorporated in 2009, to conduct a wind resource study funded by a $147,000 Renewable Energy Fund grant. The anemometer tower should be installed in late spring of 2012. Due to the stage -by -stage funding practice of Alaska's Renewable Energy Fund, it will be 2015, or later before construction would begin assuming a wind project is feasible and funding is available... Naterkaq Power Plant The new Chefornak Power Plant was completed in 2008, (Attachment B). The plant includes the following diesel generator sets with synchronized automated paralleling switchgear. A 27,000 fuel tank is located next to the powerhouse. The installed diesel generator set capacity is: Genset 13,250 engine hours as of 12-21-11 13,769 engine hours 7,308 engine hours #1 370kW Genset #2 370kW Genset #3 180kW -5- Electrical Distribution System The 7200/12470 overhead electrical distribution system was constructed in 1986. The system needs to be replaced with a design that allows for more flexibility in balancing load as the community expands and reduces excessive "line loss" (the difference between kWh generated and kWh used) now being experienced. During recent years average line loss has consistently been over 30%. Several efforts have been made to identify the sources of the line loss such as unmetered electrical users, incorrect meter readings or easily identifiable primary and secondary distribution problems, but there have been no answers. CURRENT ANNUAL KWH GENERATED AND FUEL USED POWER PLANT EFFICIENCY April kWH Peak Station Fuel Used Gen per KWh LINE 2011 Generated KW Service (Gal) Gal Sold per LOSS thru Demand KWh Used Gal Used March 2012 1,793,355 ----- 34,824 131,918 13.6 9.0 33.4% The State of Alaska Minimum PCE Efficiency Standard: 12.5 ---- 12.0% The Power Cost Equalization Program (PCE) establishes minimum standards that must be met in order to qualify for the maximum amount of PCE for which a utility is eligible. As shown in the "KWh Generated per Gallon Used" column in the table above, Naterkaq's diesel power plant exceeds the PCE standards for fuel efficiency. However, the line loss (difference between total electricity produced and electricity used) is 20.4% higher than the minimum PCE standard of 12%. This means that the electric utility's eligible PCE rate is approximately $.13 per kWh less than it would have been had the PCE line loss minimum standard been met. Monetary Impact Due To Excessive Line Loss • Every year Naterkaq's residential and community facilities customers are paying approximately $60,580 more than they should have each year for electricity because of the reduced PCE rate. • Another consequence of the high line loss is the requirement that more fuel has to be consumed by the diesel generator sets to get enough electricity to the customers. This means an additional 32,000 gallons of diesel fuel was purchased and used the past year. With the last purchase price for diesel fuel at $4.373 per gallon, the electric utility is spending approximately $117,500 more on fuel than if the line loss was12%. In recent years several attempts have been made to identify the source of the high line -loss, such as non -metered electricity users or select meters are not being read. Nothing was discovered. The cause of the excessive line loss is likely due to the age and condition of the existing electrical distribution system which is over 25 years old and in need of replacement. CURRENT AND FUTURE ANNUAL 2017 ELECTRICAL USAGE BY CLASS o Resid o Commer o Comm Facilities ° Other Fed/State ° School TOTAL KWH 04-11 to 147,122 33,665 369,704 1,193,796 03-12 434,863 208,442 10 10% 478,500 10% 230,000 % 156,000 15% 38,800 35% 480,000 1,383,500 15 12% 487,000 12% 233,500 % 161,000 20% 40,500 40% 515,200 1,437,200 Note: Residential growth is expected to be modest with energy conservation practices being 1. implemented concurrently. 2. Commercial activity will remain relatively stable other than temporary camps being setup by project contractors. 3. Community owned facilities will have modest growth other than operation of a wastewater system which incorporates a lift station with yet -to -be determined electrical loads. The new airport will incorporate energy efficient lighting. The additional load will be line -loss of the new power line to be constructed to the new airport. The actual school kWh usage and electrical load profile needs to be completed as soon as the 5. school upgrade project is completed and the school is on line. The school estimates above are very general in nature and need to be verified. 6. Due to the preliminary nature of the wind project, contribution to the community's power generation by a wind farm has not been included in this plan. Future low and peak demand estimates will need to be developed following a completion of a 7. community load profile by the Alaska Energy Authority. -7- ESTIMATED POWER PLANT FUEL USAGE Existing Electrical Distribution System 2017 - 2020 KWH Used Line Loss KWH New Genset Annual Diesel Generated Efficiency Fuel Used (Gal) Scenario#1 1,383,500 33.4% 2,077,327 13.6 152,745 Scenario#2 1,437,200 33.4% 2,157,958 13.6 158,673 New Electrical Distribution System 2017 - 2020 KWH Used Line Loss KWH New Genset Annual Diesel Generated Efficiency Fuel Used (Gal) Scenario#1 1,383,500 12.5% 1,581,143 13.6 116,261 Scenario#2 1,437,200 12.5% 1,642,514 13.6 120,773 OTHER CITY HEATING FUEL REQUIREMENTS The Chefarnrmute Corporation is the heating fuel and gasoline vendor in Chefornak. Although, the Corporations future fuel storage requirements are beyond the scope of this report, it is understood that Chefarnrmute's existing storage is adequate. The City is responsible for heating fuel for its own facilities including the City Office and washeteria. If the new washeteria is constructed, it will be situated to utilize the waste heat recovery system from the existing power plant. RECOMMENDATIONS - FUTURE CAPITAL PROJECTS ELECTRICAL DISTRIBUTION SYSTEM - A new electrical distribution system is needed to eliminate the excessive line loss resulting in the power plant using 32,000 gallons more fuel annually than if the line loss had met the PCE program's minimum standard. At last year's barge fuel price there will be fuel savings of over $117,000 annually. In addition, residential and community facilities receiving PCE would be eligible for approximately $.10 to $.13 per kWh in PCE and which can result in lower electric rates accordingly. Budgetary pricing for a funding request is $1.9 million. POWER PLANT - Completion of the required power load profile and incorporation of anticipated future loads will help determine future generator set sizes. The powerhouse was designed to accommodate large generator sets in the future. In addition to the installed cost of new generator sets, modifications to the building may also necessary. This budgetary estimate for a larger generation system is $750,000. BULK FUEL STORAGE Option No. 1 --- Additional City Bulk Fuel Storage Needed (Existing Electrical Distribution . System) Power Plant 158,673 gallons Sanitation Facilities 5,000 Other 500 Estimated Fuel Usage 164,173 gallons Winter Consumption 131,311 Existing Capacity (76,840) Additional City Storage Needed 54,471 Gallons Budgetary Cost Estimate (55,000 gallons) - $495,000. Under this scenario, the City will no longer have to purchase fuel from Chefarnmute Corporation and will save approximately 49,000 gallons in fuel purchases or $128,000 annually.. Option No. 2 --- Additional City Bulk Fuel Storage Needed (New Electrical Distribution System) Power Plant 120,773 gallons Sanitation Facilities 5,000 Other 500 Estimated Fuel Usage 126,273 gallons Winter Consumption 96,598 Existing Capacity (76,840) Additional City Storage Needed 19,758 Gallons Budgetary Cost Estimate (20,000 gallons) - $180,000. M As can be seen a new electrical distribution system reduces the need for additional City -owned bulk fuel storage and saves approximately 36,000 gallons in fuel purchases from the Chefarnrmute Corporation or an estimated $94,000. POSSIBLE SOURCES OF FUNDING Reference Attachment D for additional details about the following potential funding sources. • Alaska Community Block Grant Program (CDBG) Department of Commerce, Community, and Economic Development • Alaska Energy Authority Loan Programs - Power Project Loan Fund • Alaska Energy Authority - Bulk Fuel Upgrades Program • Alaska Energy Authority - Rural Power System Upgrade Program • Direct Legislative Appropriation City of Chefornak Eligibility -- To Be Determined • U. S. Department of Agriculture - Business and Industry Guaranteed Loans • U. S. Department of Agriculture - Rural Economic Development Loans and Grants -10- Attachment A From: Clarissa Quinlan Sent: Friday, February 03, 2012 11:30 AM To: 'Kris Noonan (knoonan@aidea.org)' Cc: Bernard Mael (citychefomak@yahoo.com) Subject: FW: City of Chefornak - Request for Technical Assistance Attachments: K7257_40-EOseries-EO.l.pdf, K7257_40-E7series-E7.2.pdf; Naterkaq Business Plan Proposal - Signed Approval.pdf Hi Kris, Bernard Mael, Administrator for the City of Chefornak, asked that I contact you . While collecting data for a Business Plan for the City of Chefornak, two issues have come to my attention. 1. The school has been operating its standby generator for part of the last three months due to power plant outages. I've been told that the frequency of the outages has increased with 8 outages January 31 s'. The LKSD school district has just completed and is operating a new water & sewer treatment plant, is close to completing a 30,000 sf addition to the school & will then remodel the 20,000 sf of existing school building As you know, the UIC man camp with a new service is operating & was the work done by Alaska Line Builders. Apparently, a transformer blew up & was replaced by UIC. Due to the seriousness of these outages, the City is requesting the AEA help the City figure out the cause and find a solution for the current outages e.g. switchgear, load imbalance, etc. 2. We understand that the new school addition is scheduled for start-up sometime this month and will add significant additional school loads. UIC is concerned about the ability of the City's power plant to handle these loads. Attached is a one -line (E7.2) of the school remodel and the Electrical Load Analysis (E0.1) prepared by RSA Engineers. The project electrical engineer, Stephan Romer, stated that an electrical load profile was not in their scope of work. The City wants to continue providing the school with continuous power if at all possible. If some type of power plant and/or generator upgrade is needed. the AEA's recommendations and assistance is also requested. Because the State Legislature is in session, the City/AEA has a window to request funding for the coming fiscal year. 3. Attached is Marsh Creek's scope of work and agreement with the City so you know the nature of our involvement. The work was to be at an overview level to provide the City with justification for any grant or other funding requests Most of the data gathering is complete with the big question being the power plant requirements and its subsequent impact on the City's bulk fuel storage requirements. Once the AEA's power plant recommendations are in place, we would like your help for in preparing safe budgetary level estimates for the City. I'd be pleased to provide names and numbers of our contacts for the survey. Thank you in advance for your assistance. Clarissa Quinlan Marsh Creek Energy Systems Cell: (907) 351-1230 Fax: (907) 248-5532 w vr- w kr' TO 2112, j12G 1 I Ian \�SEE NOTE 4 PAN° TYP(4)� I I LJk P-oF1 P-oF2 FUEL SYSTEM CONTROL PANEL SEE SHEETS E7-EIO SEE NOTE 10 'SEE ROTE 4 SS-2,4,6 , 110G T TO STATION �;RANSFORMER SS-S 14 150A ' i. 20A... 11 112 ie.'w'A EF-1€ J. 3 20AT FUEL SY51a COHRROL PANEL 13 EF-2 € 7 8 �lok vffvw 0M7[ TANK GDKTRSL PNL 2O{T 9 10 USED OIL PUMP P-UOI ET-3 12 ,�20A UH-1 & P-HR1 20A 13 U 12M F_4 2M, 15 19 20A & P-HRS /2 SPAR2 SAME RECEPTACLES (GENERATOR ROOM) 20A, 17 15 L'20A 20A�19 20 (�20A +J RECEPTACLES (CONTROL ROOM) RGENJ3 20A� 21 ( 20ASPARE a) - �-,23 24 204 M b) SWRCHGfAR UGHfS & RECEPTACLES 20A� 15 26 �2BAOM) FNIE SUPPRESSION CONIflOL PANEL OR 27 26 -101COMBUSTION 1,29 30 �20A AIR SPARE 20A, 31 32 �_ SPARE 20A, 33 34 �2M SPARE SPARE SPARE ZOA , 35 36 '� SPARE 20A, 37 38 "XA SPARE SPARE SPARE 20AT 39 b �20A ;PARE -I € , 41 42 �1BA SPARE SPARE GENERATION ROOM G GET - GROUND FAULT z INTERRUPTER CIRCUIT BREAKER ;ERVICE PANEL 'SS' I \ X i 1) IF-1 & EF-3 �+ EF-3 FIRE SUPR ESNIN SYSTEM 4 AT SHOWN, EF-2 PANEL. SEE SHEET FS-1 SIMILAR EXCEPT SEE NOTE 11 i ORLY ONE DAMPER. SS-24 1 SEX NOTE 5 L J 2) FAN MOTORS INTERMEDIATE TANK 1 FURNISHED WITH CONTROL PANEL .1 INTEGRAL THERMAL CONNECT TO SWTTCHGFAR PROTECTION. INTEMOR AC UGHTS & RAW TELEMEIRY REMTACIES, SEE SS-6 SWITCH" SHOP DRAWINGS 3/4 Hp UNIT (RTU) SEE SS-26 NOTE 12 HAUST FAN WIRING DIAGRAM FEEDER FEEDER !2 /t 2/14, /14C TO FUEL & YFD & VFD SYSTEM CONTROL PANEL DAY TANK & INTERMEDIATE TANK A -ARM O O SEE NOTE i ERNS. 1) INSTALL PLACARD, SEE SHEET M1.1. 2) INSTALL RID TEMPERATURE SENSOR IN COOLANT RETURN PIPE AND ROUTE SHIRDED TIM TO GENERATOR TERMINAL STRIP, SEE 2/E6. 3) MOUNT RATTER! CHARGER TO WALL AND INSTALL BATTERY ON FLOOR BELOW, SEE ELEVATION 2/E4. ROUTE 2/14 FROM CHARGER ALARM CONTACTS TO ASSOCIATED STWTCHGEAR GENERATOR SECTION. SEE TERMINAL STRIP DRAWING 2/E6. 4) ROUTE 2014 FROM FUEL4 PREVENTION CONTACTS AN BAY TANK METER PULSER 5) RORE 2/14 TO SWfTCHGIPm- ALARM SHUT DOWN. 6) WSTALL TEMPERATURE TRH CODLING PIPING WMEW FROM EACH SENSOR TO S COMM SENSORS AT ASS — HEAT REGUIERY S99MRS' of CHEFORNAK POWER SYSTEM UPGRADE STATION SERVICE PLAN, PANEL, & DETAILS P.O. BOK i1t405 ANCNO WE AIASKA 99511-14D5 PHONE (907) 349-0100 .oRA911 m: = I scv[ xDlm IW1G CHEF F2—F6 SHE 9F9MMF➢BF. M/0XI OOL 5/09/07 P90F.CF�05-0 5-4567 IIE5 ,I ELECTRICAL DISTRIBUTION SYSTEM - OVERVIEW Attachment B-2 4,_ CITY OF CHEFORNAK ENERGY BUSINESS PLAN CONTACTS City of Chefornak Naterkaq Light Plant Village Safe Water Program Dept of Environmental Conservation Quality Asphalt & Paving Dept of Transportation and Public Facilities (DOTPF) HDLEngineering Consultants MBA Consulting Engineers Chaptnguak School QIC Construction STG. Inc Chefarnmute Corp GCI United Utilities, Inc. (UUI) Alaska Satellite Internet AVCP Housing Authority Yukon Kuskokwim Health Corporation (YKHC) Tunista Corporation Coastal Villages Region Fund (CVRF) Native Village of Chefornak Lower Kuskokwim School District Bernard Mael, Administrator Charlene Tom, Utility Clerk Anna Abraham, Manager Joe Abraham, Operator Andrew Kilanak, Operator Susan Randlett Joe Warren Don Fancer, Project Manager Steve Frey, Project Manager Scott Hattenberg Ron Axsmith K. C. Bodily, Site Administrator Walt, Construction Manager John Sears, Project Manager Clinton White Robert Panruk Michael Waters Rick Williams Will Johnson Bosco Hooper Greg Maclntire Ryan Glugh Jill Phelps Attachment C (907) 867-8147 (907) 867-8213 (907) 867-2322 (907) 867-2128 (907) 269-7614 (907) 444-9136 (907) 269-0516 (907) 269-0450 (907) 564-2120 (907) 274-2622 (907) 867-8720 (907) 227-3578 (907) 677-5227 (907) 522-9039. (907)867-8115 (907)265-5600 (907) 561-1674 (888) 396-5623 (9007) 543-4423 Ext 226 (907)543-5020 (907) 646-2214 (907)278-5151 Jonathon Lewis (907) 867-8115 (no response) Gary Hanson, Plant Facilities Manager (907) 543-4820 Attachment D POSSIBLE SOURCES OF FUNDING Alaska Community Block Grant Program (CDBG) Department of Commerce, Community, and Economic Development The goals of the Alaska Community Development Block Grant Program (CDBG) are to provide financial resources to Alaskan communities for public facilities and planning activities which address issues detrimental to the health and safety of local residents and to reduce the costs of essential community services. The program may also fund Special Economic Development activities which result in the creation of jobs for low and moderate income persons. CDBG competitive grants are single -purpose project grants; maximum of $850,000 per community. There are three basic funding categories: community development, planning and Special Economic Development. CDBG programs utilize the resources of the Community Development Block Grant program funded by the U.S. Department of Housing and Urban Development (HUD). Approximately $2.4 million is available for competitive grants for the Federal Fiscal Year (FFY) 11 grant cycle. Any Alaskan municipal government (except Anchorage) is eligible to apply for the grants. Non- profits may apply as co -applicants for these pass -through funds. In a typical year, applications are distributed to municipalities in late fall, and awards are made the following spring. Federal regulations require 51 percent of the persons who benefit from a funded project must be low and moderate income persons as defined by HUD. Federal Federal Fiscal Year 2011 application materials are now available online Note: the following documents must be viewed and printed with Adobe Acrobat. If this application is not already on your system, you can download a copy of this application free at: Adobe Acrobat READER FFY 2011 CDBG Application Handbook, Instructions ' b PDF Version FFY 2011 CDBG Application Handbook, Instructions , *'Word Version FFY 2011 CDBG - Letter of Introduction ' k PDF Version FFY 2011 CDBG - Letter of Introduction ' WWord Version FFY 2011 CDBG - Application Packet ' k PDF Version FFY 2011 CDBG - Application Packet ' WWord Version FFY 2011 CDBG - Appendix Materials ' k PDF Version FFY 2011 CDBG - Appendix Materials , WWord Version For more information about the Community Development Block Grant Program, please contact: Janet Davis Grants Administrator III Department of Commerce, Community, and Economic Development 211 Cushman Street Fairbanks, AK 99701-4639 Phone: (907) 451-2746 e-mail: Janet. Davis(cDalaska.gov Pauletta Bourne, Grants Administrator II Division of Community & Regional Affairs Department of Commerce, Community, and Economic Development 211 Cushman Street Fairbanks, AK 99701-4639 Phone: (907) 451-2721; Fax: 451-2742 e-mail: Pauletta.Bourne(a)alaska.gov AEA LOAN PROGRAMS Power Project Loan Fund Provides loans to local utilities, local governments or independent power producers for the development or upgrade of electric power facilities, including conservation, bulk fuel storage and waste energy conservation. Loan term is related to the life of the project. Interest rates vary between tax-exempt rates at the high end and zero on the low end. PPF Loan Application Instructions Statutes Regulations 3 AAC 106.100 For more information, contact: Mike Catsi, Business Development Officer Tel, (907) 771-3060 Fax (907) 771-3044 E-mail: mcatsi@aidea.org AEA BULK FUEL UPGRADES BFU Project Status Most rural Alaska communities receive fuel for heating, generation of electricity, vehicles and other uses only during summer months when coastal areas and rivers are ice free. These communities typically store enough fuel to meet their needs for an entire winter. Many rural bulk fuel tank farms were constructed more than 20 years ago and are in poor condition. With substantial contributions from the Denali Commission, the bulk fuel upgrades program provides funding for the design/engineering, business planning and construction management services to build code -compliant bulk fuel tank farms in rural communities. Bulk Fuel Upgrade Retrofit & Revision In the early 1990s, many rural communities faced the very real threat that they would no longer be allowed to take delivery of fuel in bulk quantities because of the condition of their bulk fuel storage tank farms. The most common problems were the piping systems to, from and within the tank farms. The bulk fuel upgrade retrofit and revision program, with financial support from the Denali Commission, provides funding for repairs to enable affected communities to continue to receive fuel. >> AEA Contact David Lockard, Project Manager Tel: 907-771-3062 Fax: 907-771-3044 E-mail: dlcickard@aidea.org AEA RURAL POWER SYSTEM UPGRADE PROGRAM Electricity provides for lighting, communications, heat and power necessary to operate infrastructure that supports all other elements needed in any community to permit safe and healthy living conditions. In rural communities throughout Alaska, electricity is generated by a small local "system" (generation and distribution) using diesel fuel at a cost that is three to five times higher than that in urban parts of the state. Of 200 rural communities, approximately half are served by cooperatives or another form of utility that performs under a well -established organization. Others are served by very small entities, many which experience technical and administrative problems due to lack of economies of scale and/or lack of specialized skills in the community. Funding is provided for upgrades as follows: Powerhouse and Electrical Distribution Upgrades Upgrades may include efficiency improvements, powerhouse upgrades or replacements, line assessments, lines to new customers, demand -side improvements and repairs to generation and distribution systems. System upgrades to be funded may be identified through a variety of ways, including via technical assistance, advanced by the local community or directed by the Legislature. Examples of programmatic efforts include: Rebuilding or replacement of worn-out diesel generator units; Rebuilding or replacement of old and hazardous distribution systems; Construction of new power generation systems that meet State and Federal codes; • Inclusion of heat recovery systems, where possible, in new powerhouses, and • Force account labor and technical assistance to rural communities through AEA personnel and/or contractors with experience in rural construction. >>AEA Contact Kris Noonan, Program Manager Tel: 907-771-3061 Fax: 907-771-3044 E-mail: knoonan e,aidea.org Community Assistance Alan Fetters, Project Manager Tel: 907-771-3063 Fax:907-771-3044 E-mail: afetters(a),aidea.org Bulk fuel storage facilities and electrical generation and distribution systems make up a large part of the infrastructure that is needed for rural Alaska communities to survive and prosper. Alternative energy and renewable resource projects are becoming more widely used as a supplement to rural energy generation. A wide variety of resources must be tapped to develop successful tank farms, electrical projects and alternative energy projects. AEA provides this technical assistance to rural communities by: • Acting as liaison to the community and funding agencies to ensure support. • Coordinating community involvement throughout the course of the project. • Assisting in grant applications for project funding. • Assisting in project site selection. • Assisting communities in the energy issues problem -solving process. • Serving as a key resource contact during emergencies. • Representing AEA at rural forums, meetings and conventions. ► :» AEA Contact Bruce Tiedeman, Coordinator Rural Community Outreach Tel. (907) 771-3071 Fax (907) 771-3044 E-mail: btiedemaniaaidea.org DIRECT ALASKA LEGISLATIVE APPROPRIATION Lyman Hoffman Email: Senator Lyman Hoffman@leeis.state.ak.us District S Party: Democrat Toll -Free: 866-465-4453 Session Contact State Capitol Room 518 Juneau AK, 99801 Phone:907-465-4453 Fax:907-465-4523 Bob Herron Interim Contact State Capitol Room 518 Juneau AK, 99801 Phone:907-465-4453 Fax:907-465-4523 Email: Representative Bob Herron(cD_legis.state.ak.us District 38 Party: Democrat Toll -Free: 800-323-4942 Session Contact Interim Contact State Capitol Room 411 PO Box 886 Juneau AK, 99801 Bethel AK, 99559 Phone: 907-465-4942 Phone: 907-543-5898 Fax:907-465-4589 Fax:907-543-5892 Business and Industry Guaranteed Loans The Business and Industry (B&I) Guaranteed Loan Program helps create jobs and stimulates rural economies by providing financial backing for rural businesses. This program provides guarantees up to 90 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose is to create and maintain employment and improve the economic climate in rural Alaska. This is achieved by expanding the lending capability of private lenders in rural areas, helping them make and service quality loans that provide lasting community benefits. This program represents a true private -public partnership. B&I loan guarantees can be extended to loans made by eligible lenders in all areas of Alaska outside the Municipality of Anchorage. Assistance under the B&I Guaranteed Loan Program is available to virtually any legally organized entity, including a cooperative, corporation, partnership, trust or other profit or