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HomeMy WebLinkAboutNEA Resolution 2013-02 REFG Round VIINAKNEK ELECTRIC ASSOCIATION, INC. POST OFFICE BOX 116 • NAKNEK, ALASKA 99633 • PHONE (907) 246.4261 • FAX (907) 246.6242 Resolution 2013-02 A Resolution of the Board of Directors of Naknek Electric Association, Inc. (NEA) Authorizing and Supporting Submittal of an Application to the Renewable Energy Grant Fund Program - Round VII WHEREAS, Naknek Electric Association, Inc. is a 501(3)(12) rural electric cooperative serving Naknek, South Naknek, King Salmon, and the majority of large power on -shore seafood processing and support industries in Bristol Bay Alaska that prepare the world's largest sustainable wild salmon harvests for market; and WHEREAS, Naknek Electric Association, Inc. understands that its service area and all of Bristol Bay is rural, remote, off -the -grid, and dependent on imported fossil fuel and its transportation through resource rich and habitat sensitive waterways for electric generation, residential heating, and transportation requirements; and WHEREAS, Naknek Electric Association, Inc. buys and burns1.5 million gallons of diesel fuel annually and is burdened with energy insecurity because of volatility and high prices in the oil market, fuel transportation costs, and regulatory compliance expenses all of which continue trending upwards and have resulted in a fuel surcharge that is greater than all other costs in the Association's kWh rate combined, and WHEREAS, Naknek Electric Association, Inc. recognizes that energy costs and availability drive development and that investing in a heat driven power generation system that will improve plant efficiency, add capacity to help meet the energy demands of new industrial development without increasing fossil fuel consumption, and grow sales to help stabilize kwh rates for all consumers; and WHEREAS, Naknek Electric Association, Inc. in an effort to control costs and meet growing industrial energy requirements with reliable and cost effective electric generation is submitting a grant proposal to the Renewable Energy Fund Grant Program - Round VII requesting financial assistance to engineer and construct a $1,940,379.00 (includes NEA's 5% cost share) thermally efficient heat recovery system that utilizes hot stack gases from NEA's diesel engines to power kWh generation without additional fuel costs; and NOW THEREFORE BE IT RESOLVED that the Board of Directors of Naknek Electric Association, Inc. authorizes the submission of an application to the State of Alaska's Renewable Energy Grant Fund Program - Round VII to help finance an Energy Efficient Stack Heat to Power Project, and establishes General Manager Donna Vukich as the point of contact for the grant with the legal capacity to execute a binding agreement with the Alaska Energy Authority, carry out the terms of the agreement, and commit the Association to any obligations that may occur as a consequence of the application. PASSEI August: Attest: is 191" day of