HomeMy WebLinkAboutRd VII GrantApplication-FinalRenewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 2 of 23 7/1/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Chignik Lagoon Village Council
Type of Entity: Native Tribal Government Fiscal Year End: September 30,2013
Tax ID # 92-0106417 Tax Status: For-profit Non-profit X Government ( check one)
Date of last financial statement audit:
Mailing Address
PO Box 9
Chignik Lagoon, AK 99565
Physical Address
427 Airport Rd
Chignik Lagoon, AK 99565
Telephone
(907) 840-2281
Fax
(907) 840-2217
Email
clagoon@gci.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Michelle L. Anderson
Title
Grants Coordinator
Mailing Address
PO Box 9, Chignik Lagoon, AK 99565
Telephone
(907) 840-2304
Fax
(907) 840-2282
Email
lagoongrants@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
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
x A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
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
or
No
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
or
No
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
or
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public. If no please describe the nature of the
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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.
Packers’ Creek Hydroelectric Project- Phase II
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 would be located on the Packers Creek, located directly behind the Village of
Chignik Lagoon. The project is located within sections 5 and 8 of township 45 South, Range 59
West, of the Seward Meridian. Powerhouse: Lat 56o18'27" Long -158o31'36"
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Chignik Lagoon will be the main beneficiary. However, in the summer months the village has an
influx of fishermen from the surrounding villages including, Chignik Lake, Chignik Bay,
Perryville, and Ivanoff Bay who use the clinic facilities as well as the local water supply.
Operating costs for these and other potential facilities such as a future washtera will be
positively affected due to the lower energy costs.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels (excluding heat-only)
X Hydro, Including Run of River Hydrokinetic
Geothermal, Excluding Heat Pumps Transmission of Renewable Energy
Solar Photovoltaic Storage of Renewable
X 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 X Construction and Commissioning
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
The project is a high head run-of-river hydroelectric power plant on Packers Creek in Chignik
Lagoon with an installed capacity of 167kW. The first phase of this project, currently under
construction, includes a 480 square foot powerhouse, a 1,500 foot long access road with a
bridge across Packers Creek to the powerhouse, a 3,260 foot long access trail to the intake, as
well as supply of the turbine, generator, and switchgear.
This grant funds the second phase of this project which includes a 9-foot tall concrete dam, a
3,260 foot long 18-inch and 16-inch diameter penstock, a 1,750 foot long overhead power line
extension to the existing distribution system and 3,000 foot long control connection to the
existing diesel power plant, interconnection to the existing diesel plant controls, addition of
dispatchable electric heat to the existing diesel plant waste heat system feeding the school,
environmental upgrades to Packers Creek at the Powerhouse location required by ADF&G, and
start-up and commissioning of the new hydroelectric power plant.
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.)
The existing Chignik Lagoon Village diesel generators use approximately 45,000 gallons of
diesel fuel per year. The project will meet an estimated 94% of Chignik Lagoon’s existing
electrical demand, and offset use of 43,433 gallons of diesel generation fuel. (Data from 2012
PCE)
An additional amount of interruptible electric space heat will be provided to replace diesel power
plant waste heat supply to the school. Additional public benefits would be fewer pollutants
discharged into the air, less risk for environmental liability, lower cost electricity allowing for
potential future economic growth. Local laborer and operator jobs will be created during the 2
year construction project.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The total project costs for the second phase will come to $2,872,653. The Chignik Lagoon
Village Council requests $2,352,653 in grant funds for construction completion of the project.
Local match will consist of other, equipment usage, labor, housing and other in-kind support
totaling $520,000. Lake and Peninsula Borough will be providing a $400,000 cash match in
support of this project (see attachment A on CD). Additional local match will be from the Village
Council including, $70,000 cash and $50,000 in-kind match.
Construction of the first phase of the project is currently underway. $2,516,496 cost of the first
phase is from a $1,993,496 grant from AEA, with a cash match of $400,000 from the Borough
and $123,000 in-kind/cash contribution from the Village Council.
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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 $ 2,352,653
2.7.2 Cash match to be provided $ 905,000
2.7.3 In-kind match to be provided $ 138,000
2.7.4 Other grant funds to be provided $ 1,993,496 (Phase I grant)
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 5,389,149
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.
$ 5,389,149
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) $10,539,787
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.
$
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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.
The project management team will include, Michelle L. Anderson, Chignik Lagoon Village
Council Grants Coordinator as well as Lamar Cotten, LP Borough consultant. Additionally, PND
engineering has been hired as the project construction inspection services agent and
Polarconsult Alaska, Inc has been retained as the design engineer (see attachment F on CD).
Michelle L. Anderson, (907)840-2304, lagoongrants@gmail.com
Lamar Cotton, (907) 301-8737, lamarworkcotton@gci.net
Steve Lewis, PND Engineering, (907) 561-1011, slewis@pndengineers.com
Mike Dahl, Polarconsult Alaska Inc. (907) 258-2420 ext #3 mike@polarconsult.net
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
Administration 7/2014 8/2014
Environmental SWPP, Site Restoration 7/2014 8/2014
Cofferdam Cofferdam for Intake Construction 7/2014 8/2014
Contractor mobilize Mobilize Equipment, Material, Labor 7/2014 9/2014
Intake trail Final Construction of Intake Trail 9/2014 10/2014
Penstock Trench and Install Penstock 9/2014 10/2014
Intake Construct Intake Structure 10/2014 11/2014
Power lines Construct OH Power Line and Comm's
between Diesel Plant and Hydro Plant 9/2014 10/2014
Dispatched electric heat Install electric boiler and controls and tie
into existing system in Diesel Plant 10/2014 11/2014
Penstock Start-up Fill Penstock and test Penstock and
Intake 11/2014 11/2014
Controls Start-up Program and Test Controls 11/2014 11/2014
Start-up and commissioning Start-up and test Hydro Plant 11/2014 11/2014
Cleanup Site restoration and demob 10/2014 12/2014
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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.
The project management team consists of Lamar Cotten, Lake and Peninsula Borough (LPB)
Consultant and Michelle Anderson, Chignik Lagoon Village Council (CLVC) Grants Coordinator.
Delissa McCormick and Angela Gregorio, CLVC Administrators will assist in the project
administration and bookkeeping. Polarconsult Alaska, Inc. has been retained as the design
engineer. PND Engineers, Inc. was hired on in March 2013 for professional consulting services
as the project construction inspection services agent.
At the end of August, a notice to proceed was signed with Orion Marine Construction to
Construct Phase I of the Packer’s Creek Hydroelectric Project. Both the inspection services as
well as the contractor were selected using a bidding process and selection by the CLVC and
LPB. (See attachment F on CD)
Construction of phase II of the project will be by approval of change order for remaining work
based on the phase I alternate construction bid items.
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.
The project will be monitored by PND Engineering, LPB consultant Lamar Cotten, and Chignik
Lagoon Village Council (CLVC) project manager, Michelle Anderson.
Weekly construction progress meeting will be held and conducted at the CLVC office. Monthly
progress reports submitted to AEA will reflect these weekly meeting.
Delissa McCormick, CLVC Administrator, (907) 840-2281 clagoon@gci.net or Angela Gregorio,
CLVC Assistant Administrator, (907) 250-2797, ang2314@hotmail.com will assist in the
absence of the CLVC project manager.
3.5 Project Risk
Discuss potential problems and how you would address them.
This project utilizes proven technology and construction methods. Primary risk will be
unanticipated increases in material costs, or unforeseen ground conditions which may cause
cost overruns. Contingencies have been included in the cost estimate for these items.
Potential problems with the construction will be reviewed and recommendations made by the
project management team.
Any changed conditions would be identified in a request for information from the contractor who
would be notified in writing of the corrective action to be taken with a negotiated contract
modification.
Construction bids have been received for the remaining construction in Phase II which will be
the basis of project costs which will limit potential cost risks.
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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.
Past studies (USACE, 1982 and Polarconsult, 1995-See Attachment E on CD) considered run-of-
river hydroelectric projects of 150 to 200kW installed capacity. Final project design drawings and
specifications were completed in 2012 for a 167kW installation. This configuration would have a
94% capacity factor, providing 521,000 kWh of the 540,000 kWh annual demand in an average
water year. Plant would displace 43,433 gallons of diesel generation annually.
The plant has an additional 438,800 kWh of excess energy available to offset existing oil fire
space heat or hot water heat. This excess energy would be utilized by installation of a load bank
and electric heating coils or heaters into the school to displace existing waste heat usage and into
other public buildings.
At this time there are no other viable alternatives that could produce comparable results.
See Attachment D on CD for approved Design drawings, and Attachment B on CD for copies of
project permits.
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.
Chignik Lagoon Village generates electricity with 3 diesel fired generators and operates a 3-phase
overhead 7.2/12.47kV distribution system to serve the community. The existing system has an
efficiency of about 10.0kWh per gallon of fuel (based on FY2012 PCE data).
Generator #1 is about 18 years old with a 1 year old diesel engine. Generator #2 is about 12
years old with a 7 year old engine. Generator #3 is about 12 years old with a 18 year old engine.
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.
Chignik Lagoon relies exclusively on diesel fuel for electric generation and heating needs. This
project would allow the existing diesel power plant to be shut down for much of the year. During
cold and dry periods, the diesels would run in parallel with, or instead of, the hydro to carry the
community electric load. The existing diesel plant would remain unchanged and would provide a
backup for periods when the hydro is unavailable. O&M costs for the existing diesel plant will be
significantly reduced and extend the useful life of existing generators.
Reduced fuel usage for power generation will result in reduced potential hazards from
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hydrocarbon storage and transport.
An electric hot water heater will be installed in the diesel power plant and plumbed into the
existing waste heat loop to continue to supply heat to the school from the hydroelectric plant.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
Electrical power is supplied to commercial businesses, residences, village buildings, streetlights,
docks, and the school. This project will have a profound impact on the community by lowering
energy costs and make the use of electrical space heating feasible. Lower and more stable
energy prices will tend to increase electrical demand in the community.
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
- Run-of-river hydroelectric project with a concrete dam, penstock and pelton wheel turbine.
- Installed capacity of 167kW to carry entire community electric load and supply interruptible
electric space heat.
- Capacity factor: 94%
- Annual generation: 521,200 kWh
- Anticipated barriers: None
- Integration concept: Switchgear will allow hydro to run solo or in parallel with existing
diesel plants newly automated controls. Load governor utilized to direct excess hydro
energy to interruptible electric space heating loads at the school and community buildings.
- Delivery method: New power line will tie hydro powerhouse into existing distribution grid.
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 project will be developed on land owned by the Chignik Lagoon Native Corporation.
The power line and access road to the project will be within a combination of existing public road
right-of-ways and new right-of-ways on Chignik Lagoon Native Corporation Lands.
Right-of-way easements and leases have been acquired (see attachment C on CD).
4.3.3 Permits
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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
The following permits are required and have been acquired (see attachment B on CD).
- FERC finding of non-jurisdiction, Docket No. 15-000
- Corps of Engineers wetlands permit dated February 23,2011
- ADF&G Habitat permit issued January 17, 2013 and 2-year monitoring plan
- DNR Water Rights-Permit to Appropriate Water- LAS 27818
- Lake and Peninsula Borough Development Permit- March 18,2013
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
There are no significant environmental impacts associated with this project.
- Habitat permit from ADF&G received with no bypass requirements. A 2-year study of
flow will be conducted to assist ADF&G to better understand run-of-river hydroelectric
project operations.
- The project does not cross any wetlands.
- There are no known Archeological sites in the project footprint.
- The landowners are in full support of the project.
- There are no telecommunications or airport impacts.
- The project footprint is being limited and all cut and fill slopes will be revegetated to
reduce visual impacts.
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4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and any
previous work the applicant may have done on the project. Applicants must reference the source of their
cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s
estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of the
project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Total project cost for construction: $5,389,149
Grant funding requested: $2,352,653
Local match, in-kind services: $520,000 $470,000 cash match, $50,000 in-kind
Phase 1 construction grant: $1,993,496
Phase 1 Cash/In-kind Match: $523,000 $400,000 cash match, $123,000 in-kind
Other funding source may include: $49,000 Pebble Fund for environmental restoration
Estimated remaining development cost (Phase II Construction): $2,872,653
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.)
Total annual O&M costs for the project are estimated at $8,860. O&M costs will be paid through
the utility’s electric rates.
Metering to totalize hydro and diesel generation is included in project switchgear to allow
reporting of project impact to community.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
The Chignik Lagoon Village Council will own the project and provides all electrical power to the
community.
Project will allow existing electric rates to be reduced by savings in diesel fuel consumption.
Electric rates in the community would decrease up to $0.42 per kWh from the existing rates of
$0.75 per kWh from diesel fuel savings. This reduced rate would cover all utility expenses, such
operation, maintenance, repair, general and administrative costs. This does not consider PCE
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subsidies to residential/community accounts and fuel savings from offset diesel heat.
It is anticipated that project benefits would be passed on to the utility customers so there would be
no rate of return to the utility from the grant-funded project. Project payback would be = 17 years
($5,389,149 total project cost / $318,006 annual savings) and cost benefit ratio would be 2.05
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. 960,000 kWh/Yr hydropower
Unit depends on project type ( hydropower output from Packers Creek)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 3
ii. Rated capacity of generators/boilers/other 145, 145, 160 kW (peak rating)
iii. Generator/boilers/other type Diesel Generators
iv. Age of generators/boilers/other #1 18 yrs old, #2 12 yrs old, #3 12 yrs old
v. Efficiency of generators/boilers/other 10.01 kWh/gal (2012 PCE)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $7,818 (1.5 cents/kWh)
ii. Annual O&M cost for non-labor $1,042 (0.2 cents/kWh)
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] 476,564 (2012 PCE) 540,000 estimated with hydro
ii. Fuel usage
Diesel [gal] 47,916 (2012 PCE) 1,900 estimated with hydro for backup
Other None
iii. Peak Load 123kW (estimated)
iv. Average Load 54.4 kW (Total kWh/8760)
v. Minimum Load 50 kW (estimated)
vi. Efficiency 10.01 kWh/gal (calculated 2012 PCE)
vii. Future trends Future load growth without hydro is estimated to be flat. Load growth with
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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hydro will likely increase due to lower rates.
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 50,000 gal (estimated)
ii. Electricity [kWh] Unknown
iii. Propane [gal or MMBtu] Unknown
iv. Coal [tons or MMBtu] Unknown
v. Wood [cords, green tons, dry tons] 10 cords (estimated)
vi. Other 0
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]
167 kW installed capacity run-of-river
94% capacity factor
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 521,200 kWh
ii. Heat [MMBtu] 1,495 excess heat available from hydro
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] 0
ii. Coal [tons or MMBtu] 0
iii. Wood or pellets [cords, green tons,
dry tons]
10 cords (estimated no change in existing)
iv. Other 0
Project Cost
a) Total capital cost of new system $5,389,149 (Phase 1 + phase 2)
b) Development cost
c) Annual O&M cost of new system $ 8,860
d) Annual fuel cost $ 9,390 (backup diesel during low water flow)
Project Benefits
a) Amount of fuel displaced for
i. Electricity 49,430 gallons
ii. Heat 10,000 gallons (1,495 MMBtu) available from hydro
iii. Transportation
b) Current price of displaced fuel $ 5.00/ gallon
c) Other economic benefits
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d) Alaska public benefits
Power Purchase/Sales Price
a) Price for power purchase/sale $0.75 current residential rate
$0.30 - 0.35 anticipated future rate
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.05 (2013_06-R7Prototype_PackerCrk.xls-included in CD)
Payback (years) 21 years (Total Capital Cost / Annual Savings)
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 project will reduce the current electrical rates significantly. Currently, residents are paying
$0.75/kwh, $0.50/kwh with PCE.
Once the project is complete and in-service the utility will save approximately $217,000 per year
in diesel fuel cost for electric generation. This is a $0.42/kwh in fuel savings that can be passed
on to the utility customers. Utility rates will be set by the Chignik Lagoon Village Council.
The reduced fuel utility costs would reduce PCE funding to the community which would affect the
final cost to residential customers.
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
Annual fuel displacement/Lifetime (50-year) fuel displacement:
-43,433 gallons for electrical generation (2,171,667 gallons over life)
-10,000 gallons for space/water heating (500,000 gallons over life)
Annual Revenue/savings (using current $5.00 per gallon fuel cost in Chignik Lagoon)
-$217,167 avoided fuel (electricity)
-$ 50,000 avoided fuel (heating)
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 15 of 23 7/1/2013
An additional -$167,167 of avoided fuel cost would be available through electric space heat
when excess water is available in Packers Creek.
Non-economic benefits of the project to Alaskans include:
-Stable and reasonable energy costs will make Chignik Lagoon a more desirable place to live,
and will help to attract local economic activity such as tourism, fishing, etc. The hydro will bolster
the sustainability of the community for the long term.
Commercial enterprises in Chignik Lagoon will benefit from lower energy costs. Lower energy
costs will make local businesses such as stores and lodges more competitive and will increase
Chignik Lagoon’s sustainability and long term viability as a community. Affordable energy, and
the local economic activity it will encourage and support, will help considerable in the long term
efforts to help the community thrive.
5.1.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.),
please provide a brief description of the direct and indirect public benefits derived from the project as well
as the private sector benefits and complete the table below. See section 1.6 in the Request for
Applications for more information.
No private sector sales as all power from plant goes to existing Chignik Lagoon electric utility.
Renewable energy resource availability (kWh per month) N/a
Estimated sales (kWh) N/a
Revenue for displacing diesel generation for use at
private sector businesses ($)
N/a
Estimated sales (kWh) N/a
Revenue for displacing diesel generation for use by the
Alaskan public ($)
N/a
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 16 of 23 7/1/2013
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
The hydroelectric plant would be operated by the current utility department within the Chignik
Lagoon Village Council (CLVC).
Maintenance and operations of the hydro would be paid through electricity rates.
No operational issues are expected. Annual maintenance of intake and turbine are included in
O&M costs.
Operating costs would include continuing (decreased) O&M costs for the diesel plant, and costs
to operate and maintain the hydro. Estimated $8,860 annually for hydro O&M and $11,600
annually for hydro repair and replacement (R&R). The R&R budget is an annualized value over
the 50-year life of the project. Annual R&R costs would be lower in the early years of the project
and higher in the later years of the project.
The CLVC utility department will report the savings and benefits of this project to AEA for 2 years
through PCE reports showing monthly summary of diesel and hydro generation. Benefits would
be calculated as the offset fuel from hydro generation.
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.
Construction of the Packers Creek Hydroelectric Project is well under way. Design and
permitting for the project were completed in 2013.
Phase I will be complete August 2014 and we would like to begin phase II immediately. As soon
as additional funding becoming available a change order can be issued to the current contractor to
begin work on phase II. Follows is status of Phase I:
- Inspection services agency hired
- Project sent out to bid
- Construction Contract signed with Orion Marine Contractors and Notice To Proceed issued
to complete Phase 1. Includes supply of the Turbine and Generator, construction of the
access roads and bridge, and construction of the powerhouse and placement of the Turbine
and Generator.
- Contractor Currently working on SWPPP and completing construction surveying
- Construction to start first week of October 2013 and be completed by August 2014.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 17 of 23 7/1/2013
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.
The community of Chignik Lagoon as well as its affiliates, i.e. Alaska Rural Utility Collaborative
and Bristol Bay Native Association are in full support of the Packers Creek Hydroelectric Project.
There is no known or anticipated opposition to this project. See Attachment A on CD
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
The Community of Chignik Lagoon and the Lake and Peninsula Borough are fully in support of
this project and have been able to supply 20% of the project costs as match. The Community
provided $123,000 match to the first phase of the project and the Borough provided a $400,000
match. This level of support is provided in this final phase of the project with a cash match from
the community of $70,000 with an additional in-kind contribution of $50,000. The Borough is
also providing an additional $400,000 cash match for this final phase.
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.
The new switchgear in the hydro plant, provided in phase I, includes a totalizing meter and
station service meter to allow monthly renewable power production to be reported. Existing
diesel plant metering will provide monthly power production for diesel backup. Separate
metering would be provided at the point of use to record dispachable heat utilized.
Utility meter reader will have 2 additional meter readings to record. Office staff will have an
additional reporting point to provide in monthly PCE reports to show benefit from the proposed
project. Approximately 12 hours per year will be necessary to comply with the reporting
requirements.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 18 of 23 7/1/2013
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/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
Administration 12/2014 $ 0 $ 89,694 $ 89,694
Environmental: SWPP,
cofferdam, environmental
restoration
8/2014 $ 0 $ 1,000 $ 1,000
Contractor Mob
(if needed) 9/2014 $ 550,000 $ 50,000 $ 600,000
Complete intake trail 10/2014 $ 0 $ 26,500 $ 26,500
Construct penstock 10/2014 $ 415,270 $ 100,000 $ 515,270
Construct intake structure 11/2014 $ 758,107 $ 100,000 $ 806,387
Construct power lines 10/2014 $ 417,716 $ 24,284 $ 442,000
Powerhouse completion $ 0 $ 2,000 $ 2,000
15% contingency $ 202,734 $ 67,068 $ 269,802
consulting 12/2014 $ 60,000 $ 60,000 $ 120,000
$ $
TOTALS $2,352,653 $ 520,000 $2,872,653
Budget Categories:
Direct Labor & Benefits $ $ 89,694 $ 89,694
Travel & Per Diem $ $ $
Equipment $ $ 50,000 $ 50,000
Materials & Supplies $ $ $
Contractual Services $2,352,653 $ 380,306 $2,682,959
Construction Services $ $ $
Other $ $ $
TOTALS $2,352,653 $ 520,000 $2,872,653