HomeMy WebLinkAboutGrantApplication7 MKI-Final-SignedRenewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Application Page 1 of 26 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.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 2 of 26 7/1/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Metlakatla Indian Community (MIC)
Type of Entity: MIC is a federally recognized Indian Tribe organized under the provisions of Section 16 of the Indian
Reorganization Act, 25 U.S.C. Section 476. Electric power is provided to the community by Metlakatla Power & Light
(MP&L), a community owned utility. Fiscal Year End September 30
Tax ID # 92-0014579 Tax Status: For-profit X Non-profit Government ( check one)
Date of last financial statement audit: June 28, 2013
Mailing Address
P.O. Box 8
Metlakatla, AK 99926
Physical Address
8th and Upper Milton Street
Metlakatla, AK 99926
Telephone
907-886-4441
Fax
907-886-4471
Email
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
C. Paul Bryant
Title
General Manager
Metlakatla Power & Light
Mailing Address
P.O. Box 359
Metlakatla, AK 99926
Telephone
907-886-4451
Fax
907-886-4471
Email
cpaulbryant@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
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
funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 3 of 26 7/1/2013
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.
Metlakatla – Ketchikan Intertie
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 Metlakatla – Ketchikan Intertie will include an overhead transmission line on Annette Island
between Metlakatla and Walden Point and a submarine cable crossing of Revillagigedo Channel
between Walden Point on Annette Island and Mountain Point on Revillagigedo Island. The
Metlakatla-Ketchikan Intertie will provide benefits to both Ketchikan and Metlakatla, allowing
for significantly improved utilization of Metlakatla’s existing hydroelectric generating resources
while reducing diesel generation in Ketchikan.
Metlakatla is located at 55.127⁰N and 131.576⁰W
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Metlakatla, Ketchikan and potentially other communities connected to the grid of the Southeast Alaska
Power Agency.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels (excluding heat-only)
Hydro, Including Run of River Hydrokinetic
Geothermal, Excluding Heat Pumps X 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 X Final Design and Permitting
Feasibility and Conceptual Design X Construction and Commissioning
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 4 of 26 7/1/2013
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
The proposed Metlakatla-Ketchikan Intertie is a 34.5-kV transmission line that will interconnect the
electric systems of Metlakatla Power & Light (MP&L) and Ketchikan Public Utilities (KPU). The
Intertie will include 14 miles of overhead wood pole transmission line on Annette Island between
Metlakatla and Walden Point and an approximate three mile submarine cable crossing of Revillagigedo
Channel between Walden Point and KPU’s Mountain Point Substation. The project will also include
control system upgrades to allow for the integrated operation of the interconnected systems’ generating
plants.
Final design of the Metlakatla – Ketchikan Intertie is underway. Construction of the line began in June
2010 and the overhead line to the new ferry terminal at Walden Point was completed in August 2013. The
line to the ferry terminal is scheduled to be energized at 12.47-kV in the fall of 2013. The control system
upgrades were completed in July 2011.
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 Metlakatla-Ketchikan Intertie will allow for the transmission of surplus hydroelectric energy
available on Metlakatla to Ketchikan where the energy will be used to offset diesel generation. At the
present time, the amount of available surplus hydroelectric generation is approximately 2,200,000 kWh
per year. This amount of energy would offset approximately 152,500 gallons of diesel fuel per year in
Ketchikan. At $4.00 per gallon, this would result in savings of about $610,000 per year in power
production costs. This cost savings is expected to be shared by electric consumers in both Metlakatla and
Ketchikan. The reduction in pollutants emitted from diesel oil combustion will provide benefits to the
general public and the regional environment.
In addition, the project will provide greater interconnected system reliability and will allow for the
development of future hydroelectric and renewable energy generation projects on an integrated, regional
basis. For example, potential hydroelectric resources on Annette Island, such as the Triangle Lake project,
can be developed if deemed economically viable with a larger market for the power output. With the
Metlakatla-Ketchikan Intertie and the recently completed Swan-Tyee Intertie, the electric systems of
Metlakatla, Ketchikan, Petersburg and Wrangell will all be interconnected.
An important benefit to the Ketchikan area will be that the Metlakatla – Ketchikan Intertie will provide
power from a source that is not dependent on the existing transmission line to Swan Lake. When the
Swan Lake transmission line is unavailable for any reason, Ketchikan is isolated from much of its
hydroelectric generation. The Intertie will still be available to provide power from an alternative direction
and as such, adds another source of backup generation in the event of failure of the Swan Lake
transmission line.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 5 of 26 7/1/2013
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 estimated cost of the Metlakatla – Ketchikan Intertie through construction is
$14,510,599. MIC has received grants of $500,000 from the Denali Commission, $2,000,000
from the Alaska Energy Authority and $2,000,000 from the State of Alaska towards the Intertie
project. MIC has also contributed $728,984 through MP&L towards costs of construction of the
project to date. MIC is requesting a grant of $9,281,615 from the Renewable Energy Fund
program. No other funds are presently available for the Intertie project, however, MP&L and
MIC are pursuing additional grant funding through the State as well as through various federal
programs.
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 $ 9,281,615
2.7.2 Cash match to be provided $ 0
2.7.3 In-kind match to be provided $ 0
2.7.4 Other grant funds to be provided $ 0
2.7.5 Other grant applications not yet approved $ 0
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 9,281,615
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.
$14,510,599
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) $ 600,000 per year
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.
$ Not Available
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 6 of 26 7/1/2013
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 Manager for the Metlakatla-Ketchikan Intertie will be selected with assistance from
the Alaska Energy Authority. Consultants and contractors will be retained as needed. No
project management assistance will be needed from AEA or any other government entity.
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.
Milestones Tasks Start Date End Date
Control system upgrade Install upgrades to
MP&L control systems Oct 2010 July 2011
Overhead line Install poles June 2010 Oct 2011
Overhead line Install conductor June 2012 Aug 2013
Order submarine cable July 2014
Install submarine cable Aug 2015
Engineering and design June 2010 June 2012
Permitting Jan 2012 June 2013
Construction June 2012 Aug 2015
Interconnection agreements Negotiate power sales
and other agreements Mar 2012 Sep 2014
Initial commercial operation Nov 2015
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 7 of 26 7/1/2013
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.
At the present time, Electric Power Systems, Inc. (EPS) has been retained to provide engineering
and design services related to the overhead transmission line between Metlakatla and the ferry
terminal on Walden Point. EPS has also been retained to design the power plant control system
upgrades, provide specifications for the submarine cable and design the submarine cable
termination facilities. Construction of the line to Walden Point was provided by MP&L crews.
The line to the ferry terminal is complete.
MIC will retain other consultants and engineers as needed to provide design, permitting and
construction services as needed. These contractors will be retained through a process of
solicitation of proposals, evaluation of proposals by MIC and MP&L and final selection by MIC.
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.
MIC will provide written monthly summary reports of progress on the project. The monthly
reports will include status of activities presently underway, selection of contractors, budget
status and schedule progress. Achievement of milestones will be reported as will commitments
for material and construction services procurement. In addition, MIC will provide ongoing status
reports on its website and will remain in regular telephone contact with the Authority’s project
representative.
3.5 Project Risk
Discuss potential problems and how you would address them.
The Metlakatla-Ketchikan Intertie is a low risk project. There is some uncertainty with regard to
conditions of the seafloor at the location of the submarine crossing at the present time. Various
studies including a bathymetric survey and shoreline investigations will be conducted early in the
design process to determine the best location for the cable. These studies will also help identify
key factors to be used in the specifications for the submarine cable, such as armoring.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 8 of 26 7/1/2013
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.
The hydroelectric energy resources available in Metlakatla at the present time are the 1.0 MW
Chester Lake project and the 3.0 MW Purple Lake project. The two plants are capable of
generating 24,043 MWh per year on average of which about 2,200 MWh is presently estimated to
be surplus to the needs of MP&L. Studies have been conducted in the past that have identified
potential expansions to the existing hydroelectric facilities as well as a new hydroelectric facility at
Triangle Lake. It is estimated that these potential new hydroelectric resources could generate an
additional 20,700 MWh on an average annual basis.
Ketchikan Public Utilities (KPU) owns and operates 11.7 MW of hydroelectric generating
capacity at three separate facilities located relatively close to Ketchikan and 23.0 MW of diesel
generation capacity located in its Bailey power plant. The 22.5 MW Swan Lake hydroelectric
project, owned by the Southeast Alaska Power Agency (SEAPA), is also available to KPU and
provides a significant amount of the total power supply requirement in Ketchikan. The total
amount of energy available from the Swan Lake project and KPU-owned hydroelectric resources
is about 137,000 MWh on an average annual basis.
The Swan-Tyee Intertie (STI) was completed by SEAPA in late 2009. This transmission line
interconnects the electric systems of Ketchikan, Wrangell and Petersburg and provides for the
delivery of power from the 22.5 MW Tyee Lake hydroelectric project to Ketchikan. A significant
amount of the generating capability of the Tyee Lake project has been surplus to the needs of
Petersburg and Wrangell in the past. With the STI, surplus generation from the Tyee Lake project
will be available to KPU to offset some of KPU’s diesel generation. To the extent that the
combined hydroelectric resources are not sufficient to supply the entire power supply requirement
at any time, diesel generation will continue to be used as a supplement.
With the high price of heating oil, there is a significant change to the use of electric space heat by
the residential, commercial and public building customers in Ketchikan. The switch to electric
space heat is causing a noticeable increase in electric loads and as a result, more demand is being
placed on KPU’s diesel generators to meet the growing need for electricity. The present cost of
diesel generation in Ketchikan is estimated to be approximately 29 cents/kWh, a cost that is much
higher than was experienced just a few years ago when fuel prices were lower.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 9 of 26 7/1/2013
The primary purpose of the Metlakatla – Ketchikan Intertie will be to make additional existing
hydroelectric generation available to serve loads in Ketchikan. KPU has evaluated several
alternative energy resources in recent years including the Whitman Lake and Mahoney Lake
hydroelectric projects, a municipal solid waste to energy project, bio-diesel generation, and new
diesel generators. KPU has also considered the Metlakatla-Ketchikan Intertie among the power
supply options available to it for many years. Provision was made in the design of KPU’s
Mountain Point substation for eventual connection to MP&L’s system.
There are many advantages to the Metlakatla-Ketchikan Intertie when compared to the other
alternatives being considered. Principal among the benefits of the Intertie are that it provides for
the use of existing surplus hydroelectric energy generation capability. As such, no fuel of any kind
is needed and the environmental impacts of the Intertie are very low compared to building new
generating plants. In using hydroelectric energy to supplant diesel generation, the Intertie project
will reduce CO2 and NOx emissions in the region. Further, the reduction of diesel generation will
reduce the amount of diesel fuel that must be barged into Ketchikan thereby providing an
incremental reduction in the probability of fuel spills and other fuel handling mishaps.
A noticeable benefit of the Intertie project will be that it will provide clean, hydroelectric energy to
Ketchikan that can then be used to offset the use of oil for space heating. Many residents, schools
and businesses in Ketchikan are considering converting to electric space heat but the high cost of
electricity produced with diesel generation is a deterrent to this transition. Replacing oil heat with
electric heat will reduce the amount of pollutant emissions in the area including CO2,
SO2 and NOx.
4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about
the number, size, age, efficiency, and type of generation.
The electric system in Metlakatla includes 4.0 MW of hydroelectric capacity and 3.3 MW of diesel
generating capacity. The diesel generator, a 4,500 hp Caterpillar unit, is used primarily as a backup
emergency reserve. A 1.0 MW Battery Energy Storage System (BESS) was installed in 1997 to
provide emergency backup power for a limited time as well as balance out frequency and voltage
fluctuations on the MP&L system.
The Chester Lake hydroelectric project was constructed in 1986. It includes a 40 foot high
concrete arch dam, a 20 inch diameter steel penstock approximately 3,521 feet long and a
powerhouse with a single 1,042-kW Pelton turbine generating unit.
The Purple Lake hydroelectric project is comprised of a dam, reservoir, tunnel, penstock and
powerhouse containing three horizontal Francis type turbine generating units, each rated at 1,000-
kW during normal operation. The project was originally built in 1956, however a new control
system was installed in 1997, the generators were all rewound in the 1990’s and the turbine
runners were refinished in the 1990’s as well.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 10 of 26 7/1/2013
The existing generating units in Ketchikan are shown in the following table:
Year
Installed
Rated
Capacity(kW)(1)
Energy Generation
Capability (MWh)(2)
KPU Owned Hydroelectric
Silvis Lake 1968 2,100 10,300
Beaver Falls Unit #1 1947 1,000 37,800 (3)
Beaver Falls Unit #3 1954 2,200 -
Beaver Falls Unit #4 1954 2,200 -
Ketchikan Unit #3 1923 1,400 18,000 (3)
Ketchikan Unit #4 1938 1,400 -
Ketchikan Unit #5 1957 1,400 -
Subtotal 11,700 66,100
Swan Lake Hydroelectric 1983 22,500 71,400
KPU-Owned Diesel(4)
Bailey Unit #1 1970 3,500 -
Bailey Unit #2 1970 3,500 -
Bailey Unit #3 1976 5,500 -
Bailey Unit #4 1998 10,500 -
Subtotal 23,000 -
Total 57,200 137,500
(1) The rated capacity may exceed the normal maximum operating capacity from the generating units.
(2) Energy generation capability for hydroelectric resources is based on average water conditions and load levels
similar to those experienced in 2000. Hydroelectric energy generation varies from year to year.
(3) Energy generation for the KPU-owned hydroelectric resources is not differentiated by unit.
(4) Diesel generators are shown as capacity resources only, although they are used to provide energy supplemental to
that provided by the hydroelectric facilities. At a 70% annual plant factor, the annual energy generation capability of
the four diesel units is 141,040 MWh.
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.
At the present time, MP&L uses its hydroelectric generating resources, the Chester Lake and
Purple Lake projects, to meet its own load. Additional energy generation capability, surplus to the
needs of MP&L, exists at these plants.
In Ketchikan, KPU fully utilizes the generating capability of its City-owned hydroelectric
generating facilities. Power is then purchased from the Swan Lake and Tyee Lake projects to meet
the remaining energy requirement. At certain times, the generating capability of the combined
hydroelectric facilities is insufficient to supply the total load in Ketchikan. This hydroelectric
shortage can actually last for an extended time if local precipitation is low. During the times when
hydroelectric energy is insufficient, diesel generation is used to meet the remaining load
requirement.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 11 of 26 7/1/2013
With the Metlakatla-Ketchikan Intertie, additional hydroelectric energy generation will be
available to KPU to supply loads and avoid all or a portion of the amount of diesel generation that
would be needed otherwise. Another advantage of the Intertie will be that the power production
systems of MP&L and KPU will become interconnected. As such, the hydroelectric facilities of
the two utilities can be operated in a coordinated fashion so as to maximize the capability of all the
facilities. This operating improvement is typical of larger systems where individual generating
units can be operated within their most efficient ranges and the various reservoirs can be operated
most effectively.
With the Metlakatla-Ketchikan Intertie and the Swan-Tyee Intertie, a significantly larger southern
Southeast Alaska interconnected electric system will exist. The various hydroelectric facilities
within this four community system can be operated on an integrated basis for overall maximum
efficiency. Reliability in the four communities will be improved through additional backup options
and maintenance on various generating units and transmission lines can be effectively coordinated
to reduce outage impacts to electric consumers.
Further benefits can be gained with incorporation of fiber communication strands in the submarine
cable as well as in the overhead transmission line. This can provide very high speed
communications systems to residents and businesses on Annette Island. Fiber optic cables are
typically bundled into electric submarine cables.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
In 2011, the total energy sales in Metlakatla were 18,711 MWh of which 8,455 MWh, or 45%, was
to residential customers. As previously indicated, the total annual hydroelectric energy generation
capability of the existing hydroelectric resources in Metlakatla is about 24,000 MWh.
Total energy sales in Ketchikan in 2011 were about 164,700 MWh. Energy sales in Ketchikan are
expected to increase noticeably in the immediate future as various residential, public authority and
commercial customers switch to electric heat in response to continuing high oil prices. The
Metlakatla-Ketchikan Intertie will contribute to lower power costs in Ketchikan. As a municipal
electric utility, KPU sets rates based on its costs. Lower power costs will mean lower electric rates,
a direct benefit to electric consumers.
It is expected that the benefits of the Intertie in offsetting diesel generation costs will be jointly
shared by Ketchikan and Metlakatla. In Ketchikan, the benefits will mean lower electric rates to
consumers. In Metlakatla, the benefits can also mean lower electric rates to electric consumers.
The benefits in Metlakatla can also be utilized in paying the costs of repairs, replacements and
improvements to MP&L’s electric system.
With the Swan-Tyee Intertie in operation, KPU is obligated pursuant to its power purchase
contract to use power from the Tyee Lake project, as available, before it makes purchases from
Metlakatla. This issue may limit the amount of power KPU can purchase from MP&L.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 12 of 26 7/1/2013
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
The Metlakatla-Ketchikan Intertie will be 17 miles in length and includes overhead and submarine
components. The line would originate at KPU’s Mountain Point substation and cross underwater
to Walden Point on Annette Island, a cable crossing distance of about three miles. A 14-mile
overhead line on Annette Island would extend from the cable landing point to an MP&L substation
to complete the system.
The line is expected to be sized for a delivery of 8 MW from MP&L resources to KPU. The line is
specified at 34.5-kV which is adequate for the anticipated power loads as well as capable of
accommodating higher power loads. KPU’s transmission system at the Mountain Point substation
is also at 34.5-kV. Overhead conductors for the line are specified to be 1/0 ACSR and the
submarine cable is expected to be a three conductor, bundled cable at 34.5-kV, 1/0 AWG.
Provision was made at KPU’s Mountain Point substation at the time the substation was
constructed for eventual interconnection with MP&L’s system. Not all of the components needed
for the interconnection are presently installed, but the substation design is in place and the
necessary modification is not expected to be significant from a time or cost perspective. Further,
electric conduits are currently installed under the Tongass Highway that can be used for bringing
the cable from the shoreline to the substation.
Although earlier studies identified a possible route for the portion of the Metlakatla – Ketchikan
Intertie on Annette Island following a proposed road alignment to Walden point. At the present
time a transmission line is to be built between Metlakatla and the Walden Point ferry terminal
along the road to the ferry terminal. This line is being designed for 34.5-kV but unless the
Metlakatla – Ketchikan Intertie is developed, it will potentially be operated at 12.47-kV. The
transmission line to the ferry terminal is a part of the Metlakatla – Ketchikan Intertie. Since the
road to the ferry terminal was already in place when the transmission line was constructed,
installation of the overhead transmission line was much easier than if it were installed in uncleared
forest.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 13 of 26 7/1/2013
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 overhead portion of the Metlakatla – Ketchikan Intertie will be located entirely on Annette
Island and as such, MIC will have authority over all aspects related to land ownership and site
approval. MIC has approved the Intertie project and will work with its consultants, engineers and
advisors to approve the appropriate location for the Intertie.
No significant land issues are expected to be found on the Ketchikan side of the submarine cable
crossing. KPU has indicated that it will assist MIC with regard to bringing the cable to the
Mountain Point substation.
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
Several permits are expected to be needed, all with regard to the placement of the submarine cable.
Various permits have either been obtained or applied for. Some of the permits will need to be
extended to accommodate the actual construction schedule. Permits obtained are as follows:
Section 10 Permit (United States Army Corps of Engineers) – Permit has been received but
will need to be extended beyond the current September 10, 2014 expiration date.
Major Utility Permit (Alaska Department of Transportation and Public Facilities) –Permit
has been received.
Easement (Alaska Mental Health Trust Authority) – Application is being processed.
Easement (Alaska Department of Natural Resources (DNR)) – DNR is processing the
application and is ready to provide the Decisional Document pending completion of the
Mental Health easement.
Some additional notifications to the State Fire Marshal, the U.S. Coast Guard, NOAA and the
Ketchikan Gateway Borough may be needed. The permitting process is essentially complete.
It is noted in nautical charts that cable areas are presently identified in the vicinity of the proposed
Intertie submarine cable. To the extent that communication cables are already submerged in these
areas, it may be necessary to place the Intertie cable in a slightly different location to avoid contact
with the other cables. This will be investigated in the permitting and design effort for the
Intertie.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 14 of 26 7/1/2013
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
None of these environmental issues are expected to be applicable to the Intertie project. MIC will
assure that the overhead portion of the Intertie meets with all standards on Annette Island. As
previously indicated, some conflict with existing submerged telecommunications cables may exist
but these conflicts will be addressed in the final design of the Intertie project and are not expected
to cause a significant change to the overall 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
A cost estimate was prepared in June 2012 for the Metlakatla – Ketchikan Intertie project by EPS,
the design engineer for the project. As of August 2013, approximately $350,000 had been spent on
engineering and design work for the project. This cost is included in the total cost of engineering
and design for the Intertie project.
By far the most significant component of cost of the Metlakatla – Ketchikan Intertie is the
submarine cable between Annette Island and KPU’s Mountain Point substation. This crossing is
approximately two miles in length and the maximum depth of the channel is estimated to be about
550 feet. Submarine cables are specially manufactured for each application and installation
requires specialized equipment and labor skills. KPU relatively recently installed a submarine
cable between Ketchikan and Gravina Island, a crossing of about one mile. The characteristics of
the cable that KPU used are very similar to what is expected to be used for the Metlakatla –
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 15 of 26 7/1/2013
Ketchikan Intertie.
The estimated development cost of the Metlakatla – Ketchikan Intertie is summarized in the
following table. The amount of the requested grant is $9,281,685.
Metlakatla – Ketchikan Intertie
Estimated Project Total Cost and Grant Funding Requested
Overhead Line - Walden Point Road Line 2,970,500$
Underground Line - Chester Lake to Walden Pt. Line 493,000$
Overhead Rebuild - Centennial to Chester Lake 301,000$
Substation Improvements
Centennial Plant, 5 MVA Transformer and Recloser 469,542$
Walden Point, Recloser, OH to Substation 119,647
Mountain Point, Substation to UG, Recloser 229,725
Subtotal - Substation Improvements 818,914$
Submarine Cable
Materials 2,204,000$
Installation 3,243,000
Subtotal - Submarine Cable 5,447,000$
Control System Upgrades 1,310,094$
Contractor Mobilization, Demobilization, Per Diem 450,000$
Subtotal - Direct Costs 11,790,508$
Contingency - Non submarine cable 10% 458,341$
Contingency - Submarine cable 25% 1,361,750$
Total Direct Costs 13,610,599$
Indirect Costs
Engineering, Design, Permitting 500,000$
Construction Management 300,000
Owner's Administration 100,000
Subtotal - Indirect Costs 900,000$
Total Project Cost 14,510,599$
Less: AEA Grant (Round I) (820,000)
Less: AEA Grant (Round IV) (1,180,000)
Less: State of Alaska Grant (2,000,000)
Less: Denali Commission Grant (500,000)
Less: MP&L Contribution to Date (728,984)
Net Grant Funding Requested 9,281,615$
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 16 of 26 7/1/2013
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.)
The annual O&M costs for the Metlakatla – Ketchikan Intertie are expected to be relatively minor.
Transmission lines of this type typically require very little maintenance in the early years of
operation providing the lines are designed properly and danger trees and other hazards are cleared
out during construction.
It is estimated that annual O&M costs will be $60,000 per year and that an additional $50,000 per
year will be needed for capital repairs, improvements and replacements. These costs will be paid
through revenues received from power sales over the Intertie. No grant funds will be needed for
O&M costs.
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
Power will be sold over the Metlakatla-Ketchikan Intertie to Ketchikan Public Utilities (KPU).
The power sales price will be negotiated between MIC and KPU and is expected to be reflective of
the cost of power available to KPU from other alternatives. At the present time, KPU pays 6.8
cents per kWh for Swan Lake and Tyee Lake power that it purchases from SEAPA. Other new
hydroelectric alternatives for KPU are estimated to have a cost of power in the range of 7.0 cents
per kWh and the cost of diesel generation for KPU is about 28 cents per kWh when diesel fuel is at
$3.85 per gallon. It is estimated that the sales price of power over the Metlakatla-Ketchikan
Intertie will be in the range of 8.0 to 14.0 cents per kWh.
If the proposed Kake-Petersburg transmission intertie is constructed, power from Metlakatla could
potentially be sold to Inside Passage Electric Cooperative (IPEC) for use in Kake. Power from
Metlakatla to Kake would need to be transmitted over Ketchikan and SEAPA power lines. This
will require an agreement among all the parties involved.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 17 of 26 7/1/2013
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
It is important to note the in the estimation of benefits for the Metlakatla – Ketchikan Intertie, only
the net fuel and incremental diesel O&M savings have been included. Additional “capacity”
benefits will be realized by Ketchikan in that the Intertie will provide additional reserve benefits to
KPU. The value of this capacity benefit has not been estimated at this time.
Fuel savings have been estimated assuming that the full amount of surplus hydroelectric generation
available in Metlakatla will be sold to KPU. Energy loads in Ketchikan are expected to increase
significantly as more emphasis is placed on electric space heat in the community. The calculation
of the Benefit Cost ratio shown in the Cost worksheet is based on the net present value of estimated
net benefits over a 30 year project life assuming a 4.5% discount rate.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 100% for transmission line.
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 4
ii. Rated capacity of generators/boilers/other 23,000 KW
iii. Generator/boilers/other type Diesel generators
iv. Age of generators/boilers/other Varies - 1970 through 1998
v. Efficiency of generators/boilers/other Approximately 14.5 kWh per gallon of diesel fuel
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $ 30,000
ii. Annual O&M cost for non-labor $ 30,000
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] 178,480,000 kWh (2011 actual for Ketchikan Public Utilities)
ii. Fuel usage
Diesel [gal] 317,250 (approx. for 2011 for KPU)
Other
iii. Peak Load NA
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 18 of 26 7/1/2013
iv. Average Load 20,375 kW (2011 actual for KPU)
v. Minimum Load NA
vi. Efficiency NA
vii. Future trends Increasing loads with conversion to electric space heat.
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] Unknown
ii. Electricity [kWh] Unknown
iii. Propane [gal or MMBtu] Unknown
iv. Coal [tons or MMBtu] Unknown
v. Wood [cords, green tons, dry tons] Unknown
vi. Other Unknown
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]
None for transmission line.
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] None for transmission line.
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] None
ii. Coal [tons or MMBtu] None
iii. Wood or pellets [cords, green tons,
dry tons]
None
iv. Other None
Project Cost
a) Total capital cost of new system $14,510,599
b) Development cost $14,510,599
c) Annual O&M cost of new system $ 60,000
d) Annual fuel cost None
Project Benefits
a) Amount of fuel displaced for
i. Electricity 152,000 gallons per year
ii. Heat
iii. Transportation
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 19 of 26 7/1/2013
b) Current price of displaced fuel $610,000 per year at $4.00 per gallon
c) Other economic benefits $ 47,000 per year in diesel generator O&M
d) Alaska public benefits $657,000 per year
Power Purchase/Sales Price
a) Price for power purchase/sale Assumed 8.5 cents per kWh (price to be negotiated
later)
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 0.27
Payback (years) More than 25 years. Potentially less with new hydro generation.
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 Metlakatla-Ketchikan Intertie will provide hydroelectric generation to Ketchikan Public
Utilities and other interconnected utilities to supplant the use of diesel generation. Presently,
customers of Ketchikan Public Utilities pay a surcharge to recover revenues sufficient to pay the
cost of diesel generation fuel. The fuel surcharge will not be needed to the same extent when
the Intertie is in operation. Savings from use of the Intertie will be directly realized by residents
and businesses in Ketchikan and the other communities.
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
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 20 of 26 7/1/2013
The net present value savings of the net benefit of the Metlakatla-Ketchikan Intertie project is
$3,887,000 over the life of the project (30 years for this analysis). This benefit will be derived
almost entirely from the savings in fuel costs for diesel generation. It is also estimated that about
$190,000 per year could be paid to MIC for power purchased from MP&L by Ketchikan.
Other economic benefits that have not been evaluated yet include the capacity benefit that KPU
will realize with the Intertie since MP&L’s generating resources will be available to serve loads
in Ketchikan even when the Swan Lake project or the Swan Lake transmission line are
unavailable. The benefits of the Intertie could be increased if additional hydroelectric generating
plants are built on Annette Island in the future.
It is also important to note that with the Intertie, KPU will be able to provide lower power costs
in Ketchikan than could be realized with diesel generation. These lower power costs will then
help local residents, public facilities and businesses realize greater savings if they choose to
transition from oil to electric space heat. The lower electric rates will consequently serve as an
additional incentive to convert to electric heat. The amount that local consumers would save in
heating bills by converting to electric heat has not been evaluated as part of this application.
Other benefits of the Metlakatla – Intertie include:
More efficient use of the area’s hydroelectric generating resources
Relatively minor negative environmental impacts related to installation and operation of
the Intertie
Reduced oil consumption in the area
Reduced air pollution from burning of oil
Incrementally lower risks of fuel handling mishaps
Incrementally lower need for fuel deliveries in and transport through Southeast Alaska
Lower greenhouse gas emissions
Greater electric system reliability
Interconnection of previously isolated electric systems
Future development of new resources can be accomplished over a wider geographic area
More encouragement to convert to electric space heat in the area
Potential for improved high speed fiber optic communications systems to Metlakatla.
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.
Not applicable.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 21 of 26 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 Metlakatla – Ketchikan Intertie will be operated by MP&L in coordination with KPU.
Agreements will be established to assure effective maintenance and operating standards are in
place and administered. Further, standard utility operating procedures to assure safe and reliable
operation will be identified in contracts between MP&L and KPU and will be adhered to. Both
MP&L and KPU currently own, operate and maintain utility properties similar to the Intertie and
are very familiar with what will be needed to assure a long, useful life for the Intertie.
MIC will monitor power sales and report periodically on the net savings to MP&L, KPU and
SEAPA when the Intertie begins operation.
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.
MIC, through MP&L, has undertaken design and procurement activities related to the Metlakatla-
Ketchikan Intertie. As of August 2013, the following has been completed:
Design and engineering for the project is complete.
Poles and conductor for the overhead line along Walden Point Road have been installed.
The overhead line is complete and is scheduled to be energized in the fall of 2013 at
12.47-kV.
Permitting activities are complete.
Material acquisition is partially complete.
Installation of the control system upgrades is complete.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 22 of 26 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.
MIC fully supports the Metlakatla – Ketchikan Intertie project. In 2008, KPU provided a letter of
support and commitment to MIC with regard to development and construction of the Intertie
project. No local opposition to the project is expected.
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.
The Metlakatla – Ketchikan Intertie is expected to be fully grant funded. MIC and MP&L are
fully committed to constructing the project and are pursuing necessary funding from various
State and federal sources. Detailed costs are provided in the budget forms, included below.
Total energy sales over the Intertie to KPU and other utilities will be metered and reported to the
Alaska Energy Authority to comply with Section 3.15 of the Request for Applications.
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
Design and Permitting -
Permitting June 2013 $ 75,000 $ $ 75,000
Design and Permitting – Final
Design June 2013 $ 200,000 $ 225,000 In-kind, Other
State Grant $ 425,000
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ 275,000 $ 225,000 $ 500,000
Budget Categories:
Direct Labor & Benefits $ $ 20,000 $ 20,000
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ 5,000 $ 5,000
Contractual Services $ 275,000 $ 200,000 $ 475,000
Construction Services $ $ $
Other $ $ $
TOTALS $ 275,000 $ 225,000 $ 500,000
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 23 of 26 7/1/2013
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
Construction – Control System
Upgrade Completed $ 260,094 $ 1,050,000 $ 1,310,094
Construction – Overhead Line August 2013 $ 3,013,285 $ 1,665,165 $ 4,678,450
Construction – Substation
Improvements July 2015 $ 1,113,305 $ $ 1,113,305
Construction – Submarine
Cable Material and Installation August 2015 $ 6,908,750 $ $ 6,908,750
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $11,295,434 $ 2,715,165 $ 14,010,599
Budget Categories:
Direct Labor & Benefits $ $ 415,165 $ 415,165
Travel & Per Diem $ $
Equipment $ $ $
Materials & Supplies $ 3,988,754 $ 529,178 $ 4,517,932
Contractual Services $ $ $
Construction Services $ 7,306,680 $ 1,770,822 $ 9,077,502
Other $ $ $
TOTALS $11,295,434 $ 2,715,165 $ 14,010,599
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 24 of 26 7/1/2013
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and
Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource
identification and
analysis
3. Land use, permitting,
and environmental
analysis
4. Preliminary design
analysis and cost
5. Cost of energy and
market analysis
6. Simple economic
analysis
7. Final report and
recommendations
1. Project scoping
and contractor
solicitation.
2. Detailed energy
resource analysis
3. Identification of
land and regulatory
issues,
4. Permitting and
environmental
analysis
5. Detailed analysis
of existing and
future energy costs
and markets
6. Assessment of
alternatives
7. Conceptual design
analysis and cost
estimate
8. Detailed economic
and financial
analysis
9, Conceptual
business and
operations plans
10. Final report and
recommendations
1. Project scoping
and contractor
solicitation for
planning and
design
2. Permit
applications (as
needed)
3. Final
environmental
assessment and
mitigation plans
(as needed)
4. Resolution of
land use, right of
way issues
5. Permit approvals
6. Final system
design
7. Engineers cost
estimate
8. Updated
economic and
financial analysis
9. Negotiated
power sales
agreements with
approved rates
10. Final business
and operational
plan
1. Confirmation that all
design and feasibility
requirements are
complete.
2. Completion of bid
documents
3. Contractor/vendor
selection and award
4. Construction Phases
–
Each project will have
unique construction
phases, limitations,
and schedule
constraints which
should be identified
by the grantee
5. Integration and
testing
6. Decommissioning
old systems
7. Final Acceptance,
Commissioning and
Start-up
8. Operations
Reporting