HomeMy WebLinkAboutAEA REF VII-Gunnuk Creek Hydro StudyRenewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Application Page 1 of 24 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 af ter 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 24 7/1/2013
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 3 of 24 7/1/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Inside Passage Electric Cooperative (IPEC)
Type of Entity:
Non-profit 501(c)12 electric utility
Mailing Address
P.O. Box 210149, Auke Bay, AK 99821
Physical Address
12480 Mendenhall Loop Road, Juneau AK
Telephone
907-789-3196
Fax
907-790-8517
Email
jmitchell@alaska.com
1.1 APPLICANT POINT OF CONTACT
Name
Jodi Mitchell
Title
CEO/ General Manager
Mailing Address
PO Box 210149, Auke Bay, AK 99821
Telephone
907-789-3196 Ext.
24
Fax
907-790-8517
Email
jmitchell@alaska.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)
x 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
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
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 4 of 24 7/1/2013
funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Gunnuk Creek Hydroelectric Feasibility Study
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.
Kake, Alaska.
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 Googl e
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 mouth of Gunnuk Creek, in latitude 56°58’N, longitude 133°56’W and discharges into Keku
Strait. The project is within IPEC’s electric service area.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
City of Kake, Alaska
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
Other (Describe) Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
x Reconnaissance Final Design and Permitting
x Feasibility and Conceptual Design Construction and Commissioning
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 5 of 24 7/1/2013
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
IPEC proposes to conduct a Feasibility Study for the Gunnuk Watershed. In 1977, the Alaska
Power Authority identified two potential hydroelectric projects near Kake. The focus was on the
Gunnuk Creek water shed. However, the projects were never pursued due to the relatively low
cost of diesel fuel which was less than $1.00 per gallon at that time. Since then diesel has risen
sharply to over $4.00 per gallon making the potential for this hydro project more attractive as a
more economical power source for the community.
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.)
Overall Project Benefit: Residents and businesses in Kake pay some of the highest electrical
rates in the nation, due to the high cost of diesel fuel generation and also due to low economies
of scale. It is imperative for the financial health and wellbeing of the Kake community that a
lower cost energy solution be identified. If lower cost power was available, Kake’s fish
processing plant could be more competitive, and it would most likely attract more fishermen to
the community due to its locality to the fishing grounds. Many of the local fishermen sell their
product to competing processors, and still others have quit fishing altogether. A stable local
market would result in improved economics and higher standards of living for the residents of
Kake.
Financial Benefits: Kake’s average cost per kWh for residential power was $0.6388 in 2012.
Kake consumed 219,312 gallons of diesel fuel in 2012 for a total cost of $903,709. IPEC sold
2,737,671 kWh to Kake customers in 2012. A small hydro project will save on volatile high fuel
costs and encourage economic growth by reducing electric rates for all customers but even
more so for commercial customers since they do not benefit from the PCE program.
Public Benefits:
IPEC has two public benefit objectives with the Gunnuk Creek Hydro Project:
1. Reduce the amount power/energy generated by diesel fuel.
2. Assure the least-cost and reliable energy source to its members.
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.
Reconnaissance and Feasibility Study………………$300,000
Matching Funds
Less IPEC Cash Match…...………….………($25,000)
Grant Application Amount………………..$275,000
The feasibility study would include the following elements:
1. Installation of stream gages and development of long-term flow projections
necessary to estimate the amount of energy.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 6 of 24 7/1/2013
2. Preliminary geotechnical investigations.
3. Development of preliminary engineering designs necessary to establish technical
feasibility and develop cost estimates.
4. Assessment of fisheries, wildlife, wetlands, endangered species, and cultural
resources within the project area.
5. Jurisdictional analysis of the regulatory requirements for the project.
Please see Appendix B HDR Feasibility Study Budgetary Estimate Gunnuk Creek Hydroelectric
Project
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 $ 275,000
2.7.2 Cash match to be provided $ 25,000
2.7.3 In-kind match to be provided $
2.7.4 Other grant funds to be provided $
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 300,000
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost Summary from Cost Worksheet, Section
4.4.4, including estimates through construction.
$ 300,000
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$
2.7.9 Estimated Direct Financial Benefit (Savings) $ unknown at this time
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.
$
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.
Management Plan and Schedule: IPEC will rely on its Board, staff, and HDR Alaska, Inc. to
manage the project and administer the grant. IPEC anticipates significant public benefits from
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 7 of 24 7/1/2013
the project that will flow through to its member-owners, and therefore will donate its time and
resources to manage the project.
Relevant Organizational Experience: IPEC’s key staff will carry out grant and project
management duties. IPEC has extensive grant and project management experience. Most
recently, IPEC managed two grants for the Gartina Falls FERC licensing project. The project
has been a great success, and the FERC license was received in January, 2013. Thanks to
IPEC’s leadership and exceptional consulting services from HDR Alaska, the project was put on
a fast track, completing the required work and reporting to FERC in less than two years while it
usually takes 36 months. Key Staff Experience: IPEC key staff who will manage the project
and administer the grant. This includes Jodi Mitchell, General Manager & CEO, and Peter Bibb,
Operations Manager. Copies of their resumes are included in Appendix C.
Also included is the resume for Mr. Paul Berkshire of HDR, Inc. As you will note from his
resume, Mr. Berkshire has assisted in the development of several hydro projects in Southeast
Alaska. As mentioned earlier, Mr. Berkshire is the lead engineer and project manager for
IPEC’s Gartina Falls hydro project which is now in the construction stage.
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
Reconnaissance &
Feasibility Study
Data collection and review
7/2014 6/2015
Long-term flow projections 7/2014 9/2016
Habitat assessment 7/2014 6/2015
Preliminary engineering designs 7/2014 3/2015
Base mapping –further geotechnical
study and evaluation 7/2014 10/2015
Conceptual design 7/2014 10/2015
Update economic analysis 7/2014 10/2015
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 8 of 24 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.
IPEC has teamed with the engineering firm HDR Alaska, Inc. who provide professional,
technical, and administrative staff focused primarily on hydroelectric energy project engineering,
regulatory and support services. Their firm is known nationally for being a leader in
environmental and licensing expertise in addition to the engineering skills they have. This
experience has led to hydropower licenses. HDR’s experience includes but is not limited to:
● Feasibility Studies
● FERC Licensing
● Permitting
● Fish Protection Plans
● Stream Flow Studies
● Endangered Species Surveys and Habitat Conservation
● Dam Design
● Flow Modeling
● O & M Assessments
● Stakeholder Issue Identification and Facilitation
HDR Alaska, Inc. is currently involved with the successful Gartina Falls Hydro Project in
Hoonah, Alaska.
IPEC staff will handle grant administration, specifically Peter Bibb as the Project Manager
working with HDR with oversight from Jodi Mitchell, IPEC’s CEO/General Manager. IPEC will
provide accounting and clerical staff as needed.
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.
IPEC’s Project Manager will keep in close contact with HDR to stay abreast of progress on the
project. Monthly reports will be made to the CEO/General Manager or more frequently when
milestones are completed. IPEC will keep the Board of Director’s informed of progress at its
board meetings and via e-mail as information becomes available. Quarterly reports to AEA will
be made on the status of the project.
Project Reporting: IPEC will manage the project through a sequence of three task orders: 1)
Field reconnaissance; 2) Conceptual Design; and 3) Environmental field studies. Grant
administration will be done by IPEC’s highly experienced staff.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 9 of 24 7/1/2013
3.5 Project Risk
Discuss potential problems and how you would address them.
IPEC does not expect to encounter any problems during the feasibility stage of the
project.
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.
Potential Energy Resources Available:
Estimated average annual energy production 875 kW
Estimated installed capacity 1,000 kW
Number of generating units 2
The proposed Project will have two small dams that would create a reservoir with a surface area
of 586 acres providing storage capacity to 14,500 acre-feet.
Alternative Energy Resources:
For a number of years IPEC has been working on the Kake-Petersburg intertie but the estimated
cost of this project has risen from $35 million to $66 million currently. Furthermore, the excess
capacity of SEAPA is no longer available. The “Roadless Rule” will also require that the O & M
costs of the intertie must be conducted by helicopter further increasing the cost of the project.
IPEC anticipates that the Gunnuk Creek project will provide superior benefits to Kake than the
intertie given the new restrictions from the “Roadless Rule”.
Diesel generation is the current available alternative. However, the volatility of fuel costs are
making this option less viable along with the associated CO2 emissions.
Pro: The Gunnuk Creek Hydro Project is located locally and is not dependent on other utilities or
independent power producers.
Con: Like all hydroelectric projects, the ability to keep the Project financing and debt costs as low
as possible to ensure the “buss-bar” energy costs remain lower than the existing alternative is the
bottom line. Grant assistant financing is imperative to making this Project part of the areas
renewable energy portfolio.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 10 of 24 7/1/2013
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.
Diesel Genset #1 is a CAT 3508 with a Kato 565 Kw 4160 volt generator
Diesel Genset #2 is a CAT 3512 with a Kato 1016 Kw 4160 volt generator
Diesel Genset #3 is a CAT 3512 with a CAT 3512 855 Kw 4160 volt generator
The average efficiency for 2012 was 13.94 Kwh per gallon of diesel.
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.
IPEC uses the Gensets described above to generate the electrical needs of the community. The
highest peak demand in 2012 was 760 which occurred in August. The lowest peak demand was
432 and occurred in March. IPEC purchases fuel from the barge as needed. The lowest price
per gallon was $3.97 which occurred in April with the highest price occurring in May at $4.24 per
gallon.
The impacts of the project will be determined during the feasibility study.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Energy use throughout IPEC’s service area is primarily residential (234 accounts), commercial
(57 accounts), and community facilities (15 accounts).
Loads are typically higher in the summer than winter due to operation of the local cold storage,
however, winter peaks loads can occur due to cold weather. IPEC’s service area has not
experienced a significant amount of conversion from oil or wood-fired space heating to electric
space heating. However, it is possible that more conversions will take place in the future as
heating oil prices rise.
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
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 11 of 24 7/1/2013
Basic integration concept
Delivery methods
Renewable energy technology specific to location – The Project is a conventional
hydroelectric project with a water storage reservoir. Hydroelectric technology is well developed.
The Project will utilize the abundant rainfall and easily accessible Gunnuk Creek to generate
renewable energy.
Optimum installed capacity – The optimum installed capacity is estimated to be 1,000 kW. An
economic sizing of the installed capacity will occur during the reconnaissance/feasibility stage.
Anticipated capacity factor – The power capacity is estimated to be 875 kW primary and 1,000
kW average. Two 900 kW units are recommended for installation.
Anticipated annual generation – The potential annual generation is estimated to be 1,000 kW .
The actual annual energy will vary from year to year, depending on load and precipitation.
Anticipated barriers – There are no known technological barriers to development of the Project.
A Land Use Agreement with IPEC, Sealaska, and Kake Tribal Corporation is required.
Delivery methods – The Project will connect to the IPEC system.
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 land is owned by Sealaska and Kake Tribal Corp. A SEALTRUST conservation easement
exists within the watershed. Once the feasibility of the project is determined, IPEC will work with
the current landowners for access. We do not anticipate any problems gaining access to the site.
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
Permitting and regulatory requirements will be identified in the feasibility study.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 12 of 24 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
The feasibility study will identify potential environmental issues and mitigation measures.
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
Anticipated Project costs:
IPEC proposes to implement Project Milestones I (Reconnaissance) & II (Feasibility).
REF VII Grant
Reconnaissance and Feasibility Study………………$300,000
Matching Funds
Less IPEC Cash Match..…………………….($25,000)
Requested Grant Funding:…………………………..$275,000
Projected Capital Cost: Identified in the feasibility study
Projected development cost: Identified in the feasibility study
4.4.2 Project Operating and Maintenance Costs
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 13 of 24 7/1/2013
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.)
Projected Operating and Maintenance cost: Identified in the feasibility study
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
IPEC will displace diesel generated kWh with a clean, renewable hydro resource. Once the
feasibility study is complete, the expected decrease in rates will be known.
The proposed rate of return will be determined as part of the feasibility phase of the Project.
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. 1,000 kW
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 3
ii. Rated capacity of generators/boilers/other 2,436 Kw
iii. Generator/boilers/other type CAT 3508, CAT 3512, CAT 3512
iv. Age of generators/boilers/other 1990, 1985, 1985
v. Efficiency of generators/boilers/other 13.94 kWh per gallon
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $158,529
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 14 of 24 7/1/2013
ii. Annual O&M cost for non-labor $919,851
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] 2,739,378
ii. Fuel usage
Diesel [gal] 219,312
Other
iii. Peak Load 760 Kw
iv. Average Load 553 Kw
v. Minimum Load 432 Kw
vi. Efficiency 13.94 kWh per gallon
vii. Future trends Expect loads to increase
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] N/A
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
1,000 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 2,739,378
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other
Project Cost
a) Total capital cost of new system Determined during project feasibility study.
b) Development cost Determined during project feasibility study.
c) Annual O&M cost of new system Determined during project feasibility study.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 15 of 24 7/1/2013
d) Annual fuel cost Determined during project feasibility study.
Project Benefits
a) Amount of fuel displaced for
i. Electricity 219,312 gallons of diesel fuel consumed in 2012
ii. Heat
iii. Transportation
b) Current price of displaced fuel $903,709 in 2012 (average price per gallon $4.12)
c) Other economic benefits Increased residential and commercial use
d) Alaska public benefits Access to affordable, secure supplies of energy,
establish a fair degree of independence from
uncertain international energy markets
Power Purchase/Sales Price
a) Price for power purchase/sale Costs will be determined during the Project feasibility
stage.
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio Since this is the initial feasibility stage, these questions will be
determined once the study is complete.
Payback (years)
4.4.5 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area. If the is for a PCE eligible utility please discus what the expected impact would be for both
pre and post PCE.
Since this is the initial feasibility stage, these questions will be determined once the study is
complete.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 16 of 24 7/1/2013
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
Since this is the initial feasibility stage, these questions will be determined once the study is
complete.
Diesel fuel consumed in 2012 was 219,312 at a cost of $903,709.
kWh sold in 2012 was 2,737,671 for revenue of $1,542,938
Considerable reduction of CO2 emissions.
5.1.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in
the Request for Applications for more information.
Since this is the initial feasibility stage, these questions will be determined once the study is
complete.
Renewable energy resource availability (kWh per month) Unknown at this time
Estimated sales (kWh) 2,737,671 (2012)
Revenue for displacing diesel generation for use at privet
sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the
Alaskan public ($)
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
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 17 of 24 7/1/2013
Proposed business structure: Inside Passage Electric Cooperative (IPEC) is a non-profit
501(c)12 electric utility organized in 2004. Prior to 2004, IPEC was known as THREA which was
formed by the Tlingit-Haida Central Council, a Federally recognized Alaska Native tribe, to build
infrastructure and provide electricity to several small primarily Alaska Native villages including
Kake, Angoon, Hoonah, Klukwan, and the Chilkat Valley from 10 mile Haines Highway to the
Canadian border.
O&M financing: IPEC will fund the O&M costs from power sales revenues.
Potential operational issues: An assessment of fisheries, wildlife, wetlands, endangered
species, and cultural resources will be conducted as part of the feasibility study. A jurisdictional
analysis of the regulatory requirements will also be conducted as part of the this study.
Operational Costs: Determination made once the feasibility study is complete.
Reporting commitment: IPEC will provide reports to AEA on the savings and benefits specified
by the AEA.
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.
The Organized Village of Kake (OVK) hired a local man to perform a hydropower
reconnaissance report for Kake which is the basis for this grant application.
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.
This project is supported by the City of Kake, the Organized Village of Kake (tribe), and Inside
Passage Electric Cooperative. Attached is a Resolution of Support from IPEC’s Board of
Directors (Appendix E).
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
Amount requested in grant funds: $275,000 with a cash match of $25,000 from IPEC.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 18 of 24 7/1/2013
Investments to date: The Applicant has not made any investments to date in the proposed
project.
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.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 19 of 24 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. )
$ $ $
Feasibility study $275,000 $25,000 $300,000
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $275,000 $25,000 $300,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $275,000 $25,000 $300,000
Construction Services $ $ $
Other $ $ $
TOTALS $275,000 $25,000 $300,000
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 20 of 24 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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 21 of 24 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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 22 of 24 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
(List milestones based on
phase and type of project.
See Milestone list below. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ $ $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 23 of 24 7/1/2013
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Inside Passage Electric Cooperative
Regular Election is held: N/A
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
Jodi Mitchell CEO/General Manager N/A
Peter Bibb Operations Manager N/A
Jerry Medina Administrative Officer N/A
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address: PO Box 210149, Auke Bay, AK 99821
Phone Number: (907) 789-3196 ext. 24
Fax Number: (907) 790-8517
E-mail Address: jmitchell@alaska.com
Federal Tax ID #: 43-1964262
Please submit an updated form whenever there is a change to the above information.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 24 of 24 7/1/2013
SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web
site.
B. Letters or resolutions demonstrating local support per application form Section 8.
C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. An electronic version of the entire application on CD or other electronic media, per
RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Jodi Mitchell
Signature
Title CEO/General Manager
Date 09/23/2013