HomeMy WebLinkAboutAttachment #1 - GrantApplication7Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Application Page 1 of 35 7/2/2013
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund. A separate application form is available for
projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard
form for all other projects, including projects that will produce heat and electricity. An electronic
version of the Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/REFund7.html.
If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for each phase of the project.
In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are completed and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
In the sections below, please enter responses in the spaces provided, often under the
section heading. You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Native Village of Tanacross
Type of Entity: Federally Recognized Tribe Fiscal Year End: 09/30/2013
Tax ID # 92-0068251 Tax Status: For-profit Non-profit X Government ( check one)
Date of last financial statement audit: 10/1/2012
Mailing Address
P.O. Box 76009, Tanacross, Ak. 99776
Physical Address
1000 Tanacross Blvd., Tanacross, Ak. 99776
Telephone
(907) 883-5024
Fax
(907) 883-4497
Email
coearnold@yahoo.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Jeff Weltzin
Title: Project Manager
Mailing Address
P.O. Box 76009, Tanacross, Alaska 99776
Telephone
(907) 590-1304
Fax
(907) 780-2506
Email
jeffreyweltzin@gmail.com
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
41.55, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
XX A governmental entity (which includes tribal councils and housing authorities);
Yes
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 Yes or No in the box )
Yes
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).
Yes
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/veep/Grant-Template.pdf. (Any exceptions
should be clearly noted and submitted with the application.)
Yes 1.2.5 We intend to own and operate any project that may be constructed with grant
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funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
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.
Yerrick Creek Hydroelectric Project
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. The Project site in can be accessed at MP 1339 of
the Alaska Highway and is generally sited at 63.223078 – 143.361815
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project. The Yerrick Hydroelectric Project will serve the communities
of Tanacross, Dot Lake, Tetlin and Tok.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels (excluding heat-only)
XX 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 XX Construction and Commissioning
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project. The communities in the Upper
Tanana Subregion to be served by this renewable energy project are economically distressed in
part caused by the very high cost of electricity at $0.51 per kWh. These communities currently
rely on diesel generation to meet their electric needs. Renewable energy is a must for this area to
remain economically viable during these difficult times. The Yerrick Creek
Hydroelectric Project, first pioneered by Alaska Power and Telephone
(AP&T), would be the first renewable electric energy project for the Upper Tanana Subregion
and is now a collaborative effort of the Native Village of Tanacross, Tanacross, Inc. and AP&T.
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.)
This 1.5 MW run-of-river hydroelectric project will be built on Yerrick Creek, which is
approximately 20 miles west of Tok. Currently, the Tok grid follows the Alaska Highway
over Yerrick Creek to Dot Lake. The existing diesel generation plant in Tok will continue to
supplement the grid as the hydro project is only expected to replace part of the annual load.
This run-of-river hydro project will consist of a small diversion structure that will impound
approximately 0.3 acres of water, approximately 15,000 feet of penstock, powerhouse with a
single Impulse turbine and generator, tailrace, small substation, and transmission line to and
along the Alaska Highway. This project not only will provide clean, renewable electricity,
but will lower the cost of electricity and provide rate stabilization. The cost to
maintain a hydro project is also significantly lower than diesel generation and will create
the following benefits:
The cost to produce electricity will be reduced from $0.51 to approximately $0.30 per
kWh for the grid supplying Tok, Tanacross, Dot Lake and Tetlin, a savings of
approximately 35-40% by displacing 400,000 to 500,000 gallon of diesel fuel annually
used at the AP&T Tok-based power plant;
Greater reliability and cost effectiveness with hydropower versus diesel generation,
while reducing air emissions, the chance for fuel spills and fluctuating electric rates
due to rapidly changing and rising diesel fuel costs;
Economic development and home building due to less expensive electricity;
AP&T has estimated it will have a net annual O&M savings of approximately
$1,000,000 by reducing the hours the diesel generators are used, reducing
maintenance and frequency of replacement.
Depending on the level of debt to this Project, there is expected to be $1,000,000 to
$2,000,000 reduction in the cost of power to power users within the four communities
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serviced by AP&T.
Through management of this project’s development and ownership by the Native
Village of Tanacross and Tanacross, Inc, the lands of the Yerrick Basin which have
been traditionally used for subsistence activities by the tribal members of Tanacross will
be protected by outside intrusion.
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.
This project, which has been pioneered over the last 5 years by the Alaska Power and
Telephone Company (AP&T) and now is being sponsored by the Native Village of Tanacross
(NVT), has now reached a new level of Upper Tanana subregion support as described in this
application and pro-active efforts are underway to fully finance Project over the next six
months with the following sources:
USDA RUS High Energy Cost Program: $ 1,500,000 (application submitted 09/03/13)
AEA Renewable Energy Fund: $ 6,000,000 (application submitted 09/24/13)
U.S. Treasury New Markets Tax Credits: $ 5,000,000 (application submitted 09/17/13)
NVT IPP BIA Guaranteed loan financing:$ 6,500,000 (loan to close 08/01/14)
Total: $19,000,000
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $ 6,000,000
2.7.2 Cash match to be provided $11,500,000
2.7.3 In-kind match to be provided $
2.7.4 Other grant funds to be provided $
2.7.5 Other grant applications not yet approved $ 1,500,000
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $19,000,000
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.
$19,000,000
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2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$ 0
2.7.9 Estimated Direct Financial Benefit (Savings) $ 2,000,000 (annually)
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.
$ 0
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.
NVT proposes to construct a run-of-river hydroelectric project at Yerrick Creek that will
interconnect with AP&T’s grid supplying electricity to the communities of Tetlin, Tok, Dot
Lake, and Tanacross. NVT and its sister ANCSA village corporation (Tanacross, Inc.) are in
process of creating an Independent Power Producer entity (IPP) to finance, construct and
operate the Project. This future IPP will sell wholesale power to AP&T. Through a series of
recent meetings between NVT, Tanacross, Inc. and AP&T, this relationship is being formalized
along the following roles and responsibilities:
NVT will take the lead in raising project development financing.
Tanacross, Inc. and NVT will create an IPP for the Project’s construction, operation and
power sales to AP&T.
Tanacross, Inc., which owns a substantial portion of the lands where this Project will be
sited, will make available these lands for the Project siting and operation.
AP&T will be contracted as the Project’s final designer and will provide construction-
ready Project bid documents for use in competitively bidding out the Project’s
construction during 2014 through 2015.
The future IPP will utilize the AP&T produced Project final design and bid
documentation to competitively procure following State of Alaska procurement policy
and procedures to seek the least cost, most responsive general contractor to construct the
Project.
While a cooperative MOA has been drafted, approval of it by the participants is still in process.
However, Tanacross, Inc. and AP&T have provided letters to NVT supporting submission of
this AEA REF application (see attached Letters of Support).
Currently, the AP&T grid is presently wholly reliant upon diesel generation. AP&T is the
certified utility for this area along the Alaska Highway and this Project is within the
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boundaries of AP&T’s certificate from the Regulatory Commission of Alaska. The project is
located approximately 20 miles west of Tok on the Alaska Highway. Although AP&T ’s
existing transmission infrastructure follows the highway right-of-way past the project site,
this infrastructure (conductor) will need to be upgraded to handle the load from the project.
Project capacity is expected to be 1.5 megawatts (MW). Project features would include a
small diversion structure, an approximately 15,000 foot long buried penstock along the
access road, powerhouse with a single impulse turbine (Pelton or Turgo) and generator,
tailrace, small substation, and transmission line to and along the Alaska Highway, as shown in
Figure 2 in the Supplemental Material section. Construction would begin in the spring when
snow is off the ground. The building season is short at this north latitude, so it will take
two years to complete this project. This project not only will provide clean, renewable
energy that will stabilize rates, but will provide a stable source of energy that can quickly
come on line after power outages as well as integrating well with AP&T’s diesel generation
plant, which makes it one of the best renewable resources for the Upper Tanana Subregion.
The cost to maintain a hydro project is also significantly lower than diesel generation. The
existing diesel generation plant in Tok will continue to supplement the grid as the hydro
project is only expected to provide electricity for 100% of the load part of the year and down
to approximately 10% of the load during low flow periods of the year, such as during the
winter.
Further Project Management Descritpion
NVT has employed a tribal policy of “self-performance” of its community and economic
initiatives over the last 15 years and has performed or is performing the following Tanacross
development projects:
Managed and constructed a $4.6 million twenty-home housing project at Tanacross
using force account labor and tribal staff project management completed 2007.
Utilize IHS and VSW funding to conduct force account construction of a $5,000,000
community-wide piped water and sewer system at Tanacross completed 2006.
Self-performed management and force account implementation of multiple Department
of Defense (DOD) Native American Lands Environmental Mitigation Program
(NALEMP) projects on contaminated lands surrounding Tanacross from past DOD
military activities in an accumulated amount of $10,000,000 during the last 6 years.
Currently constructing an AEA REF Round 5 funded woody biomass space heating
project at Tanacross (TDC - $590,000).
Currently completing construction of the 9,600 square foot “Tanacross Multi-Purpose
Community Health Center Project” (TDC - $3.5 million).
The above projects have served to develop the tribe’s project management capacity and local
work force skills. However, it is the Tribal Council’s judgment that the implementation of the
planned Yerrick Creek Hydroelectric Project should be contracted-out through a competitive
procurement process for the most responsive and cost efficient general contractor proposal. To
accomplish this Project procurement process, NVT will be enlisting the following professional
services:
Contract with AP&T to complete final Project design and specifications.
Work with the Denali Commission to prepare Project bid package, advertise and
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conduct general contractor selection.
NVT believes that AEA hydro staff should be involved in this Project’s implementation
and is requesting AEA hydro staff’s involvement in the Project implementation. NVT is
proposing to establish a Yerrick Creek Hydroelectric Project Implementation
Committee consisting of NVT project management staff, Denali Commission staff,
AP&T, Tanacross, Inc. and AEA hydro staff.
NVT will utilize its existing Project Director, Jeff Weltzin, to manage this project’s
implementation. Mr. Weltzin has 30 years of rural project development experience
including:
Overseeing the North Slope Elder Independent Living Project at five villages
($18,000,000 TDC) 2009- 2010.
Overseeing the Tanana Community-Wide Energy Efficiency and Community Facility
Biomass Space Heating Conversion Project ($2,000,000 TDC) 2011 – 2013.
Overseeing the Tanacross Affordable Homes Project (20 homes @ $4.6 million TDC)
2005 - 2007.
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.
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks
Start
Date
End
Date
Tri-party MOA finalized Obtain board approval from AP&T 7/13 10/13
Finalize hydro system design Engage AP&T engineering team 11/13 5/14
Finalize project finance plan: Produce Project business plan 11/13 5/14
a. Secure New Markets Tax
Credits (NMTCs)
Work with Travois, Inc. to obtain NMTCs
allocation 9/13 5/14
b. Secure loan-term loan with
guarantees
NVT works with BIA to obtain guaranteed
long-term loan 11/13 8/14
c. Formalize USDA HECP grant
agreement
Work with USDA RUS to obtain $1.5 million
High Energy Cost Program grant agreement 2/14 8/14
Finalize all agencies’ permitting NVT will work AP&T to transfer all previously
approved permits to the IPP 2/14 8/14
Procure Project general contractor AP&T and project committee produce final
design specs and bid package 2/14 8/14
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Negotiate AEA REF grant
agreement
Await legislative and Governor approval of
Project AEA REF request 7/14 8/14
Select least cost, most responsive
general contractor bid proposal
Utilize the proposed Yerrick Creek Project
committee to conduct general contractor
selection process. 5/14 8/14
Conduct site grubbing, pioneer
road access stream crossing work
Survey road access and penstock placement
8/14 11/14
Construct project Install impoundment structure, penstock and
powerhouse 4/15 12/15
Project Complete 12/15
3.3 Project Resources
Describe the personnel, contractors, accounting or bookkeeping 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.
As described under 3.1 – Project Manager above, NVT has had success at self-performing
significant community development projects at Tanacross. NVT has professional accounting
personnel on staff and is external audited annually. To carefully plan and conduct this project for
successful construction and operations, the following partnerships will be formalized in during
2013 as follows:
1) A tri-party MOA is under development between NVT, Tanacross, Inc. and AP&T. It is
expected that the roles and responsibilities will be assigned as follows:
NVT and Tanacross, Inc. will form an Independent Power Producer entity for the purpose
of raising project development financing and project construction. The IPP will sell
wholesale power to AP&T.
Tanacross, Inc. will make available its lands in the project area as needed to support
development of the project.
AP&T will be contracted to conduct final design and specifications (staff qualifications
are described below)
AP&T will be contracted with for long-term project operations.
AP&T has agreed to support transfer of project permits to the future IPP.
2) NVT has an on-going project management technical assistance relationship with the Denali
Commission who has offered to provide construction management technical assistance to the
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project (see support letters).
3) NVT intends to form a project implementation working committee consisting of the Denali
Commission, NVT, Tanacross, Inc. and AP&T staff and would also like to include the AEA’s
hydro staff as part of this working group.
4) For project financing, NVT employee, Jeff Weltzin, will be coordinating the funding sources
for the project, will work the funding agencies and the New Markets Tax Credit (NMTC)
provider, Travois, Inc. An essential aspect of a NMTC deal is the integration of the all funding
sources into one package. Travois will be an important financing package assistance partner in
assembling the project finance package.
Project Implementation Staff and Partners
Permitting - AP&T has agreed to support transfer of project permits to the future IPP. All
permits will be updated during 2013 and early 2014.
Project Management – NVT will utilize its existing Project Director employee, Jeff
Weltzin, to coordinate project implementation activities including:
Working with AP&T to secure transfer and renewals of all project development permits
Work with all funders to complete the $19,000,000 TDC.
Project final design and bid specifications – Contract with AP&T to final project design
and specifications. As can be seen from the summary of experience below, AP&T has
trained personnel to meet the needs of an electrical utility as well as a developer of
hydroelectric projects. AP&T currently operates six hydroelectric projects, two storage
and four run-of-river. AP&T’s certified linemen are trained to install and maintain
transmission lines, including the operation of all necessary equipment. If additional
crews or experience is needed, we will, as we usually do, draw from our pool of
personnel throughout our Alaska service area. AP&T ’s experienced engineering staff
has been involved in the design, construction and operation of hydroelectric projects
since the 1980’s. Some outside contractors would be hired to excavate the ground and to
haul materials to the site. Locals and journeyman with specialties such as blasting
would be hired to help with labor to construct the project. Manufacturers would be used
to make the powerhouse structure, turbine and generator, penstock, and other
materials. AP&T ’s personnel and other hired labor would install all structures and
equipment. AP&T currently maintains over 35-400 miles of transmission line. AP&T
also has experienced staff to maintain diesel generators and hydro power plants. AP&T
maintains sufficient staff certified as electrical linemen.
DESIGN TEAM
Bob Berreth, P.E., Senior Electrical Engineer
Mr. Berreth’s experience includes electrical design, manufacturing,
installation, commissioning, and maintenance of low-, medium-, and high-
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voltage equipment for power plants.
Mr. Berreth’s large hydroelectric projects include providing design and
equipment for dam construction and plant expansion undertaken by the
Bureau of Reclamation, the Corps of Engineers, and the TVA.
Mr. Berreth also provided design and equipment for 25 units as part of small
hydroelectric projects and electrical design of control and switchgear
equipment for diesel, gas, and small steam turbine installations. His clients
include the Department of Defense, Bonneville Power Administration, Alaska
Electric Light & Power, and Western Area Power Administration, among
others.
Mr. Berreth holds a BS in Mathematics and a BS in Electrical Engineering,
both from the University of Washington.
Larry Coupe, P.E., Senior Civil Engineer
Mr. Coupe has over 35-40 years of experience in development of water
resources projects, including over 20 years with consulting engineering
firms and about 10 years with utilities and project developers.
Mr. Coupe’s experience has been largely related to the civil engineering
aspects of small and medium-sized hydroelectric projects. He has extensive
involvement in all aspects of project development, from conceptual design
and initial feasibility studies through licensing and permitting, design, and
construction.
Since joining AP&T in 2001, Mr. Coupe has been the lead civil engineer on
the design and construction of the following small Alaska hydroelectric
projects:
o Mahoney Lake near Ketchikan
o South Fork near Klawock (operation began in 2005)
o Kasidaya Creek near Skagway (operation to begin in 2008)
o Falls Creek near Gustavus (operation to begin in 2008)
Mr. Coupe also has considerable experience in the analysis and design of fish
passage structures, including culvert modifications for fish passage and fish
screens at water diversions.
Mr. Coupe holds a BS and an MS in Civil Engineering, both from the
University of Idaho.
Ben Beste, P.E., Senior Mechanical Engineer
Mr. Beste has been involved in the design, construction, and
upgrade of hydroelectric generation facilities including dams,
intakes, penstocks, and powerhouses working as a mechanical
engineer for equipment manufacturers, consultants and utilities.
Mr. Beste has experience in the design, specification, manufacturing,
installation, commissioning, and the operation and maintenance of hydraulic
impulse and reaction turbines, high performance valves, large gates, and
associated control and auxiliary systems.
Mr. Beste’s hydroelectric project experience includes providing equipment
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and services to federal, commercial and private clients including: USACE,
USBR, TVA, PG&E, PGE, PSE, AEL&P, AP&T, SCL, and others. Project
locations have been in the USA, Central America and Europe.
Mr. Beste has current professional engineering licenses in the states of
Washington and Alaska. He attended the University of Washington for a
B.S. in Mechanical Engineering.
Vern J. Neitzer, Chief Engineer
Mr. Neitzer has a B.S. General Engineering, Electrical Administrator
License.
Mr. Neitzer, as Chief Engineer, is responsible for identifying,
recommending and implementing additions, improvements, and
maintenance of all systems to provide quality power service to isolated
Alaskan communities.
Mr. Neitzer conducts hydroelectric project feasibility studies, permitting,
design, construction, operation and maintenance.
Mr. Neitzer provides engineering support including establishing
construction methods, transmission line configuration, turbine/generator
manufacture, powerhouse equipment, pumps, valves and controls.
Glen Martin, Project Manager
Mr. Martin has over 17 years experience in the power project field providing
project management.
Mr. Martin has managed projects through permitting, licensing and
compliance phases.
Eric Hannan, Interior Regional Manager, Power
Mr. Hannan, General Manager of AP&T’s Interior Division, with a B.S.
Electrical Engineering degree, and has a background of electrical design and
engineering of multi-power distribution plants and systems.
Mr. Hannan is the Vice Chairman of the company wide Executive Safety
Review Committee.
Mr. Hannan has experience as a high voltage project manager, in substation
engineering, pole line engineering, construction, and hotline maintenance,
including underground feeders for transmission and distribution, site layout,
and coordination of supply and personnel.
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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.
NVT’s Project Director, Jeff Weltzin, will provide written monthly narrative reports including
detailed financial reporting along with back-up documentation.
3.5 Project Risk
Discuss potential problems and how you would address them.
AP&T has expended approximately $500,000 on pre-development activities including achieving
90% design status. Still to be resolved are:
1) Exact siting of the upper catchment/impoundment structure which requires its location to be
sited to optimize the gathering of underground winter flows for low-flow power production.
AP&T estimated that 200 KW of winter-time power output can be obtained by catching this
underground winter water flow in the upper Yerrick Creek basin. While this unresolved design
issue is not necessary a potential problem, it is an important component of project optimization
to be finalized. This issue will be addressed with further upper basin shallow drilling and
installation of underground water flow monitoring during winter of 2014.
2) The Yerrick Basin is within the traditional lands of the Native Village of Tanacross tribal
membership used for subsistence food harvesting activities. NVT and Tanacross, Inc. are
determined to limit access to the Yerrick Basin by limiting general public access to the
hydroelectric development site. Tanacross, Inc.’s land management staff will address strategies
to achieve this goal.
3) From an engineering standpoint, AP&T engineering staff addressed the issues of Yerrick
Creek’s very dynamic high flows during the summertime and have avoided pockets of
permafrost in siting the penstock right away. During actual construction of the project, potential
discovery of unidentified permafrost pockets may be discovered and a revised penstock
alignment may have to be undertaken.
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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.
AP&T’s past design and engineering work for this “run-of-the river” project has sized the project at
1.5 MW with maximum power output taking place during the months of June, July and August.
Actual annual kWh production will vary depending available winter snowpack melt during the
non-winter periods of the year and annual rainfall. The Yerrick Basin is 30 square miles in size and
is owned by both the State of Alaska (upper basin area) and Tanacross, Inc. (lower basin area and
penstock easement).
This project will reduce the cost of electricity to the residents of Tetlin, Tok, Tanacross and Dot
Lake who presently pay $0.51 per kWh to approximately $.30 kWh. However, actual power costs
will be dependent on the level equity subsidies contributed to the project development budget.
Currently, NVT is working to maximize equity subsidy through the following grants and tax credits
contributions:
USDA RUS High Energy Cost Program: $ 1,500,000 (application submitted)
Alaska Renewable Energy Fund: $ 6,000,000 (application submitted)
U.S. Treasury New Markets Tax Credits: $ 5,000,000 (application submitted)
IPP long-term debt financing: $ 6,500,000 (loan to be closed during 2014)
Total Sources: $19,000,000
Of the total $19,000,000 budget, $12,500,000 is considered equity subsidy. Once the hydroelectric
project interties with the Tok grid, the cost per kWh will be reduced by approximately 35%.
The environmental impacts, i.e. air pollution, noise pollution, spills, etc., of any self-generation will
be significantly reduced by this intertie, as well as from generation at AP&T ’s powerplant in
Tok. During part of the year it is estimated the entire load can be carried by the hydroelectric
project, and during the winter the use of hydropower will supplement diesel generation.
This hydroelectric project is estimated to reduce fossil fuel consumption by approximately 500,000
gallons per year, which at today’s prices is equivalent to $2,000,000 annually (at $4.00/gallon).
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The existing diesel plant in Tok, which supplies electricity to all four communities, would use
fewer diesel generators to meet the remaining load, reducing labor and maintenance costs and the
frequency of generator overhaul and replacement and as a result in additional savings to AP&T. At
present usage levels, this hydroelectric project would save the residents of all four communities
approximately $1,500,000 per year. Lower energy costs would help stimulate development, both
economically and home building.
While AEA REF funding application for construction of the Yerrick Creek Hydroelectric Project,
availability of feasibility documents, design documents, and permitting documents are available
from AP&T and are not readily available for attachments to this funding application due the
recent resolution of project development issues between Tanacross, Inc. and AP&T. However, the
EIS for this project has been attached which includes much site information. As shown in the
attached letters of support from AP&T, Tanacross, Inc. and others, there is broad agreement to
develop this project for the benefit of the residents of the Upper Tanana Subregion.
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.
AP&T currently generates close to 100 percent of the power for the Upper Tanana Subregion from
diesel-fired generators located at Tok, Alaska with a small percentage of biomass generated power
being provide by the Alaska Gateway School District’s biomass CHP facility.
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.
The existing diesel plant in Tok, which supplies electricity to all four communities, would use
fewer diesel generators to meet the remaining load, reducing labor and maintenance costs and the
frequency of generator overhaul and replacement and as a result additional savings to AP&T. From
an environmental standpoint, the biological studies produced to date and negotiations with
Alaska Department of Fish and Game have reach a consensus on project operations to
minimize natural resource and wildlife disruptions and impacts.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
As mentioned above, the current service area that the project would serve is the four
communities of Tok, Tanacross, Tetlin and Dot Lake . The Tok grid serves these communities
connected to it, as described below. This grid provides electricity from diesel generators at the
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Tok power plant. The Communities of Tetlin (pop. 117), Tanacross (pop. 140), Dot Lake (pop.
19), and Tok (pop. 1,393), Alaska, should be considered eligible for assistance because they are
paying an extremely high and economically repressive rate of $0.51 per kWh. Because of the
poor economy of these communities, the high power rates are an extra burden many find
difficult to bear. Tok is the center of the economy for the area, which is reliant upon tourism
(hotels, food services, and other appurtenant services) that primarily occurs during the few
summer and fall months. The largest employers are health and education services.
The measure of whether these communities will benefit from this hydroelectric project will be
the less expensive rates they are paying. Other sources of energy, such as propane, gas,
diesel, or wood used primarily for heating and cooking may be used less with the decrease in
the cost of electricity, which will reduce emissions by these unregulated sources. The PCE
program will save significantly because of this project. The PCE credit for each residential
customer would be reduced because the rate per kWh would be reduced, which will provide the
State with significant savings for this program. The residential customers may not see the whole
$90 monthly reduction in their bills because of the adjusted PCE credit. However, the customers
benefit further by stabilizing their electric rate because of hydro power and the reduced use of
diesel fuel. If other renewable resources can be developed for this area, there could be additional
savings for the area customers. This hydroelectric project will benefit the State of Alaska in
general.
4.3 Proposed System
Include information necessary to 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
This hydroelectric project, which received a non-jurisdictional determination from the Federal
Energy Regulatory Commission (FERC) on March 28, 2007, would reduce the electric
rates to approximately $0.30 per kWh, and with an average bill of 500 kWh per month, they
would save up to approximately $90 per month. However, residents of Alaska have their
electricity subsidized by the State due to the high costs of electricity. For the first 500 kWh,
the PCE Program is applied to reduce residential cost. The savings the customer would
receive from the use of hydro power is actually received by the State in savings to the PCE
Program. This savings would provide more money in the Program that could go to other
more needy communities. The residential rates in this area would have a small reduction
because of the reduction in the PCE benefit applied on each monthly bill, which makes the
savings mostly go to the State, a savings of approximately 35-40%. However, hydro will
stabilize rates because of the decrease in use of diesel fuel, which will directly benefit the
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customer. Commercial enterprises will have a direct benefit from this project because they
are not subsidized by the PCE program.
NVT has long desired to have an alternative source of electricity, preferably one that is a
renewable resource in the Upper Tanana Subregion . The Yerrick Creek Hydroelectric project
will be able to reduce the use of fossil fuel for this area and thereby reduce the cost of
electricity. However, it is expensive to build hydroelectric projects, making it necessary to
seek outside funding. This project will be operated as a run-of-river hydroelectric project and
should be able to operate most months, however full generation capacity would only occur
about 6 months of the year. Diesel generation would continue to supplement the load
requirements for this closed grid, particularly during winter months when flows decline. If
other sources of renewables can be added in the future, rates will be able to go down further.
NVT proposes to construct a run-of-river hydroelectric project that will interconnect with
AP&T’s grid supplying electricity to the communities of Tetlin, Tok, Dot Lake, and Tanacross.
NVT and its sister ANCSA village corporation are in process of creating an Independent Power
Producer entity (IPP) to finance, construct and operate the Project. This future IPP will sell
wholesale power to AP&T. Through series of meetings between NVT, Tanacross, Inc. and
AP&T, this relationship is being established along the following principals:
NVT will take the lead in raising project development funding
Tanacross, Inc. and NVT will create an IPP for the Project’s construction, operation and
power sales to AP&T
Tanacross, Inc. will make available lands it owns in the Yerrick Creek Basin to facilitate
this project’s developoment
AP&T may be contracted as the Project’s final designer and and operator
While a cooperative MOA has been drafted, approval of it by the participants is still process.
However, Tanacross, Inc. and AP&T have provided letters to NVT supporting submission of this
RUS HECP application (see attached Letters of Support).
Currently, the AP&T grid is presently wholly reliant upon diesel generation. AP&T is the
certified utility for this area along the Alaska Highway and is within the boundaries of NVT’s
certificate from the Regulatory Commission of Alaska. The project is located approximately 20
miles west of Tok on the Alaska Highway. Although AP&T ’s existing transmission
infrastructure follows the highway right-of-way past the project site, this infrastructure
(conductor) will need to be upgraded to handle the load from the project. Project capacity is
expected to be 1.5 megawatts (MW). Project features would include a small diversion structure,
an approximately 15,000 foot long buried penstock along the access road, powerhouse with a
single impulse turbine (Pelton or Turgo) and generator, tailrace, small substation, and
transmission line to and along the Alaska Highway, as shown in Figure 2 in the Supplemental
Material section. Construction would begin in the spring when snow is off the ground. The
building season is short at this north latitude, so it will take two years to complete this
project. This project not only will provide clean, renewable energy that will stabilize rates, but
will provide a stable source of energy that can quickly come on line after power outages as well
as integrating well with diesel generation plants, which makes it one of the best renewable
resources. The cost to maintain a hydro project is also significantly lower than diesel
generation. The existing diesel generation plant in Tok will continue to supplement the grid as the
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hydro project is only expected to provide electricity for 100% of the load part of the year and
down to approximately 10% of the load during low flow periods of the year, such as during the
winter.
a. Project Design
The activities and facilities to be financed for this run-of-river hydroelectric project include
construction of a concrete impoundment structure, buried 1,500 foot transmission line to the
highway and then vertical wood pole structures for the remaining transmission line, approximately
15,000 feet of buried penstock (pipe) adjacent to the access road, powerhouse structure, impulse
turbine (either a Pelton or Turgo), generator rated at 1.5 MW, switchgear, pad mount
transformer/substation and other appropriate appurtenances. Diagrams are included in the
Supplemental Material section.
The project will be located on land managed by the State of Alaska land and Tanacross, Inc., an
ANCSA Village Corporation. It is expected to take two years to install all project features, in
part due to the short construction season at this north latitude. Testing and startup would
occur in the second year. Construction standards are to meet N.E.S.C. requirements and the
R.U.S. standards.
NVT and its partners (AP&T and Tanacross,Inc.) plan to construct a 1.5
megawatt (MW) “run-of river” hydroelectric facility that would supply renewable energy to
the communities of Tok, Tetlin, Tanacross, and Dot Lake, Alaska. The facility could
potentially supply 100% of the communities' energy demand during high flow periods
(typically June and July). During the remainder of the year, only part of the load would be met.
AP&T’s hydrology studies indicate there will be sufficient flow during the extremely cold winter
month for the Project to operate, although at substantially reduced output. While not getting
these communities completely off of diesel generation year round, the Project will be a
significant first step for the area to reduce and eventually eliminate the use of fossil fuels.
The Project will consist of:
Approximately 3 miles of single-lane access road from the highway to the diversion site.
The clearing width for the road will generally be 40-50 feet, but may be somewhat
wider in areas of significant ground slope due to the widths of cuts and fills. The right-
of-way (ROW) width will be 100 feet to provide for minor field adjustment of the
alignment if necessary. The road will cross Yerrick Creek at one location about 2 miles
from the highway; the bridge will be about 200 feet long.
A diversion structure at about El 2220, just below the confluence of the main stem of
Yerrick Creek and two tributaries. The diversion structure will include a concrete-faced
rockfill dike on the west abutment, a concrete-faced rockfill spillway and roughened
channel outlet in the central portion, and a concrete intake on the right abutment.
A buried pipeline approximately 15,000 feet in length (known as a penstock) using 42-
inch HDPE pipe for the upper 55% and 36-inch ductile iron pipe for the lower 45%.
The penstock will cross Yerrick Creek just above the bridge noted above; it will be
buried below the stream channel and encased in concrete.
A powerhouse approximately 1,500 feet upstream of the Alaska Highway where the
water will pass through a single turbine to the tailrace. Other powerhouse equipment
will include the 20 00 kW generator, controls and switchgear, bridge crane, and pad-
mount transformer. The powerhouse structure will be a metal building set on a concrete
foundation.
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A tailrace consisting of a pond and 800 feet of excavated canal to an existing
overflow channel of Yerrick Creek. The pond will be formed in a borrow pit
excavated to provide fill material for the access road. The pond is expected to
develop a stable ice cover in winter that will allow the turbine to discharge without
glaciering.
A transmission line consisting of 1,500 feet of 12.4 kV underground transmission
cable from the powerhouse to the highway and 10 miles of upgraded 12.4 kV
overhead transmission line adjacent to the highway (see Figure 3),
Based on the hydrology studies conducted to date (see Appendix 9.2), AP&T has selected a
hydraulic capacity for the Project at 60 cfs, which will provide a generating capacity of 2 ,000
kW. The streamflow will only exceed the hydraulic capacity during the early summer
(typically June and July), or about 10%-20% of the year. This is a relatively low exceedence
level for a run-of-river project, but AP&T believes the high capacity is worthwhile
because of the high cost of diesel generation. Before pipe and generating equipment is
ordered, AP&T will reevaluate the hydraulic capacity. It could be reduced to perhaps 50 cfs,
which would allow a reduction in the penstock diameter from about 42 inches to 36 inches.
The environmental impacts would be virtually the same with a smaller capacity, therefore the
conclusions of this EA would not change.
During times of high flow, water will flow over the diversion structure. If the overflow is less
than about 35-40 cfs, it will all pass through the roughened channel outlet to allow fish
passage. At higher rates of overflow, water will also pass over the spillway. The duration of this
overflow will be intermittent, and of course will vary with the amount of snow accumulated
in the basin; during low runoff years there may be only a very short period of overflow, but
during high runoff years the overflow period may start in June and extend into August.
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Figure 3: Transmission Line Features
The proposed Project requires state and federal permitting prior to project commencement of
construction. The permits needed are: (1) a Department of Natural Resource (DNR) land
lease permit; (2) DNR water rights permit; (3) Department of Fish & Game (ADF&G) habitat
permit; and, (4) a U.S. Army Corp of Engineers permit. In addition, besides being on State of
Alaska managed lands, this project is also on Tanacross, Inc. lands (private), which is a
Native corporation. The diversion structure and approximately 7,000 feet of the penstock and
access road will be on state land, the remainder of the penstock and access road as well as
the powerhouse and buried portion of the transmission line will be on private land. The
size of easement needed on state land will be approximately 28.4 acres. The size of easement
needed on private land will be approximately 27.7 acres.
Construct a 1.5 MW Run-of-River Hydroelectric Project Schedule
Milestones Tasks
Start
Date
End
Date
Tri-party MOA finalized Obtain board approval from AP&T 7/13 10/13
Finalize hydro system design Engage AP&T engineering team 11/13 5/14
Finalize project finance plan: Produce Project business plan 11/13 5/14
a. Secure New Markets Tax
Credits (NMTCs)
Work with Travois, Inc. to obtain NMTCs
allocation 9/13 5/14
b. Secure loan-term loan with
guarantees
NVT works with BIA to obtain guaranteed
long-term loan 11/13 8/14
c. Formalize USDA HECP grant
agreement
Work with USDA RUS to obtain $1.5 million
High Energy Cost Program grant agreement 2/14 8/14
Finalize all agencies’ permitting NVT will work AP&T to transfer all previously
approved permits to the IPP 2/14 8/14
Procure Project general contractor AP&T and project committee produce final
design specs and bid package 2/14 8/14
Negotiate AEA REF grant
agreement
Await legislative and Governor approval of
Project AEA REF request 7/14 8/14
Select least cost, most responsive
general contractor bid proposal
Utilize the proposed Yerrick Creek Project
committee to conduct general contractor
selection process. 5/14 8/14
Conduct site grubbing, pioneer
road access stream crossing work
Survey road access and penstock placement
8/14 11/14
Construct project Install impoundment structure, penstock and
powerhouse 4/15 12/15
Project Complete 12/15
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Proposed Project Budget (in 2015 dollars)
Land Structures
20,000.00
Administrative and Legal Expenses 600,000.00
100% Architectural, Engineering, Inspection Fees 250,000.00
Site Work 2,500,000.00
Construction 13,890,000.00
Subtotal 16,260,000.00
Contingencies 1,740,000.00
Subtotal (total cost for project) $19,000,000.00
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.
The State of Alaska owns the upper Yerrick Creek Basin which would include the planned
catchment/intake structure while Tanacross, Inc. owns the lower Yerrick Basin which includes the
most of the 15,000 feet long penstock, pioneer access road, powerhouse and transmission line
extension to the planned Alaska Highway upgraded 3-phase power-line which as a component of
this project.
While AP&T has been working on pre-development activities for this project since 2008,
negotiations with Tanacross, Inc. over use of its lands in the project area impeded project
development until recently. Through a series of recent in-person meetings with AP&T President
Bob Grimm, Tanacross, Inc. President, Bob Brean and NVT President, Herbet Demit, has led to
verbal agreement to turn-over project development and ownership to NVT and Tanacross, Inc. This
approach enables NVT and Tanacross, Inc. to control management and uses of the Yerrick Creek
Basin lands which are traditional lands for the tribal membership of the Native Village of
Tanacross. A MOA is currently under development to capture this agreement and NVT will
forward this agreement to AEA within the next 30 days.
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 discussion of potential barriers
AP&T has received the following permits for the project which AP&T’s President, Bob Grimm,
has agreed to support transfer to NVT and Tanacross, Inc.’s planned Independent Power Producer
entity (IPP).
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These permits include:
State of Alaska Department of Natural Resources (water and land divisions)
State of Alaska Department of Fish & Game
State of Alaska State Historical Preservation Office
U.S. Army Corp of Engineers
U.S. Fish & Wildlife Service
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
Attached is the EA created for this project.
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
Proposed Project Budget (in 2015 dollars)
Land Structures
20,000.00
Administrative and Legal Expenses 600,000.00
Architectural, Engineering and Inspection Fees 250,000.00
Site Work 2,500,000.00
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Construction $13,890,000.00
Subtotal 16,260,000.00
Contingencies 1,740,000.00
Subtotal (total cost for project) $19,000,000.00
Currently, NVT is working to maximize equity subsidy through the following grants and tax credits
contributions:
USDA RUS High Energy Cost Program: $ 1,500,000 (application submitted)
Alaska Renewable Energy Fund: $ 6,000,000 (application submitted)
U.S. Treasury New Markets Tax Credits: $ 5,000,000 (application submitted)
IPP long-term debt financing: $ 6,500,000 (loan to be closed during 2014)
Total Sources: $19,000,000
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.)
Operational costs for this project are minimal in comparison to operation of the AP&T Tok-based
diesel-fired power plant. Project operational costs include maintenance of automated controls
systems and related remote communication to AP&T’s SCADA control center, periodic
inspections by AP&T Tok-based maintenance staff to ensure clearing of debris at the upper
catchment/intake structure and powerplant maintenance activities. It is estimated that operations
and maintenance expenses will be $100,000 annually.
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
NVT intends to enter into a long-term power sales agreement with AP&T for 100 percent of the
power produced using AEA’s prescribed “cost-based rate”.
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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. 7,000,000 kWh annually
Unit depends on project type (e.g. windspeed, hydropower output, biomasss 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 MW of diesel-fired generators at Tok, Alaska
ii. Rated capacity of generators/boilers/other same
iii. Generator/boilers/other type Caterpillar and Cummins
iv. Age of generators/boilers/other Units range from 4 years to 15 years in age
v. Efficiency of generators/boilers/other 14 kWh per gallon of diesel burned
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $1,365,000
ii. Annual O&M cost for non-labor $4,800,000
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 10.9 GWh annually
ii. Fuel usage
Diesel [gal] 800,000 gallons annually
Other N/A
iii. Peak Load 2.2 MW
iv. Average Load 1.1 MW
v. Minimum Load .5 MW
vi. Efficiency 30%
vii. Future trends Transition to non-diesel sources
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] N/A
ii. Electricity [kWh] N/A
iii. Propane [gal or MMBtu] N/A
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.
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iv. Coal [tons or MMBtu] N/A
v. Wood [cords, green tons, dry tons] N/A
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]
1.5 MW Run-Of-River Hydroelectric
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 7,000,000 kWh
ii. Heat [MMBtu] N/A
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood or pellets [cords, green tons,
dry tons]
N/A
iv. Other Estimated to displace 500,000 gallon of diesel annually
Project Cost
a) Total capital cost of new system $19,000,000
b) Development cost $19,000,000
c) Annual O&M cost of new system $100,000
d) Annual fuel cost N/A
Project Benefits
a) Amount of fuel displaced for
i. Electricity 500,000 gallons annually
ii. Heat N/A
iii. Transportation N/A
b) Current price of displaced fuel $4/gallon
c) Other economic benefits $1,000,000 in deferred maintenance/replacement of
diesel generator at Tok power plant
d) Alaska public benefits Up to $2,000,000 annually
Power Purchase/Sales Price
a) Price for power purchase/sale Dependent upon equity subsidies gained
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Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.6 – project has 100 year estimated life span
Payback (years) 9.5 years
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 discus what the expected impact would be for both
pre and post PCE.
The measure of whether the targeted communities will benefit from this hydroelectric project
will be the less expensive rates they are paying. Other sources of energy, such as propane,
gas, diesel, or wood used primarily for heating and cooking may be used less with the decrease
in the cost of electricity, which will reduce emissions by these unregulated sources. The
PCE program will save significantly because of this project. The PCE credit for each residential
customer would be reduced because the rate per kWh would be reduced, which will provide
the State with significant savings for this program. The residential customers should see an
average of $90 monthly reduction in their bills but this estimate is dependent on the level of euity
subsidies funded for the project. However, the customers benefit further by stabilizing their
electric rate because of hydro power and the reduced use of diesel fuel. If other renewable
resources can be developed for this area, there could be additional savings for the area
customers. This hydroelectric project will benefit the State of Alaska in general.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
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5.1.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in
the Request for Applications for more information.
Renewable energy resource availability (kWh per month)
Estimated sales (kWh) 7,000,000 kWh annually to public
Revenue for displacing diesel generation for use at privet
sector businesses ($)
N/A
Estimated sales (kWh) N/A
Revenue for displacing diesel generation for use by the
Alaskan public ($)
Estimated $1.4 million
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
NVT will create with its sister ANCSA Corporation, Tanacross Inc., an IPP to construct and
operate the planned Yerrick Creek Hydroelectric Project. O&M will be financed through a
negotiated O&M cost component within the planned long-term power sales agreement with
AP&T. There will be no back-up systems installed and AP&T’s existing Tok-based diesel power
plant will provide 100% back-up power supply capacity.
Operational costs for this project are minimal in comparison to operation of the AP&T Tok-based
diesel-fired power plant. Project operational costs include maintenance of automated controls
systems and related remote communication to AP&T’s SCADA control center, periodic
inspections by AP&T Tok-based maintenance staff to ensure clearing of debris at the upper
catchment/intake structure and powerplant maintenance activities. It is estimated that operations
and maintenance expenses will be $100,000 annually.
NVT commits to reporting to AEA project saving and benefits on an annual basis.
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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.
Based on recent discussions with AP&T, project construction can begin summer, 2014 and be
completed by the end of 2015. With submission of the AEA REF funding application, NVT has
submitted three funding application including:
USDA RUS High Energy Cost Program: $ 1,500,000 (application submitted)
Alaska Renewable Energy Fund: $ 6,000,000 (application submitted)
U.S. Treasury New Markets Tax Credits: $ 5,000,000 (application submitted)
IPP long-term debt financing: $ 6,500,000 (loan to be closed during 2014)
Total Sources: $19,000,000
NVT discussed under 3.1 – Project Manager above, NVT has much experience managing
grants, tax credits and long-term loans and will take responsibility for managing the above
sources and long-term debt financing.
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,
2013.
As discussed above, NVT and Tanacross, Inc. are collaborating to seek equity subsidies for the
sources listed above under Section 7 and the following letters of support are included with this
funding application:
AP&T letter of project collaboration
Tanacross Inc. letter of project collaboration
Alaska Gateway School District letter of support
Tetlin IRA Council letter of support
Travois, Inc. preliminary letter of New Markets Tax Credits and support
NVT authorizing resolution and pending funding commitments
Denali Commission Support Letter
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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.
Provide a narrative summary regarding funding source and your financial commitment to the
project
USDA RUS High Energy Cost Program: $ 1,500,000 (application submitted)
Alaska Renewable Energy Fund: $ 6,000,000 (application submitted)
U.S. Treasury New Markets Tax Credits: $ 5,000,000 (application submitted)
IPP long-term debt financing: $ 6,500,000 (loan to be closed during 2014)
Total Sources: $19,000,000
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.
AP&T has agreed to incorporate in the project’s final design remote management of the project’s
operations and power production data collection. NVT agrees to provide to AEA periodic
reporting on the project’s operations including energy produced, performance, estimated fuel
savings, lessons learned, corrective actions and benefits to the Upper Tanana Subregion.
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Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables
provided below to detail your proposed project’s budget. Be sure to use one table for each
phase of your project.
If you have any question regarding how to prepare these tables or if you need assistance preparing the
application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator,
Shawn Calfa, at scalfa@aidea.org.
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federa
l
Grants/Oth
er State
Grants/Oth
er
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
Tri-party MOA Finalized 10/13 $0 $0 N/A $0
Finalize hydro system design 05/14 $100,000 $170,000 See sources $270,000
Finalize project finance plan: 05/14 $ $200,000 See sources $200,000
a. Secure NMTCs 05/14 $ $200,000 See sources $200,000
b. Secure long-term loan 08/14 $ $100,000 See sources $100,000
c. USDA HECP grant
agreement 08/14 $ $50,000 See sources $50,000
All permitting obtained 08/14 $100,000 $200,000 See sources $300,000
General Contractor procured 08/14 $100,000 $300,000 See sources $400,000
AEA REF grant agreement 08/14 $0 $50,000 See sources $50,000
Site Work 11/14 $500,000 $2,000,000 See sources $2,500,000
Construct project 12/15 $5,200,000 $9,730,000 See sources $14,930,000
TOTALS $6,000,000 $13,000,000 $19,000,000
Budget Categories:
Admin and Legal $200,000 $420,000 See sources $620,000
100% A&E, Inspection Fees $100,000 $170,000 See sources $270,000
Site Work $500,000 $2,000,000 See sources $2,500,000
Construction/contingencies $5,200,000 $10,410,000 See sources $15,610,000
$ $ $
$ $ $
$ $ $
TOTALS $6,000,000 $13,000,000 $19,000,000
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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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
N/A $ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
N/A $ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
N/A $ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Native Village of Tanacross
Regular Election is held:
August, 2013
Date: August 1, 2013
Authorized Grant Signer(s):
Printed Name Title Term Signature
Herbert Demit President 3 years
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Herbert Demit President 3 years
Grantee Contact Information:
Mailing Address:
P.O. Box 76009, Tanacross, Ak. 99776
Phone Number:
(907) 883-5024
Fax Number:
(907) 883-4497
E-mail Address: Coearnold@yahoo.com
jeffreyweltzin@gmail.com
Federal Tax ID #: 92-0068251
Please submit an updated form whenever there is a change to the above information.
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SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. 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 heat projects only: 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
Signature
Title
Date