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
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2112, j12G 1 I Ian \�SEE NOTE 4
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P-oF1 P-oF2
FUEL SYSTEM CONTROL
PANEL SEE SHEETS E7-EIO
SEE NOTE 10 'SEE ROTE 4
SS-2,4,6
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SS-S 14 150A
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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
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RECEPTACLES (CONTROL ROOM)
RGENJ3
20A� 21 ( 20ASPARE
a)
-
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SWRCHGfAR UGHfS & RECEPTACLES
20A� 15 26 �2BAOM)
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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
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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