HomeMy WebLinkAboutWrangell Power Plant UpgradeNNG,ELL CITY AND BOROUGH OF WRANGELL
INCORPORATED MAY30, 2008
oY P.O. BOX 531 (907)-874-2381
Wrangell, AK 99929 FAX (907)-874-3952
I wC•:A1CD rUGJ$T 92
September 21, 2012
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, AK 99503
Re: Renewable Energy Fund Round 6
Grant Application
To Whom It May Concern,
This letter is intended to provide support and authorization for the grant application
submitted by the City and Borough of Wrangell for Round 6 of the Renewable Energy
Fund.
It is my understanding that a resolution of support adopted by the governing body is the
preferred manner in which to support the grant application. Please be advised that the
Wrangell Borough Assembly will act on a resolution of support for this application at
their October 9, 2012 regular meeting. Upon the resolution's adoption, it will be
forwarded to accompany this letter and application.
We appreciate your consideration of our application.
Sincerely,
V
Timothy D. o ney
Borough Ma er
Renewable Energy Fund Round 6 W
W �i.
Grant Application O ENERGY AUTHORITY
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round 6 of the Renewable Energy Fund. An electronic version of the Request for
Applications (RFA) and this form are available online at:
http://www.akenergyauthority.or.q/RE Fund-6.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
scalfana.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 satisfied 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.
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.
AEA 13-006 Application Page 1 of 18 7/3/2011
Renewable Energy Fund Round 6
Grant Application �ENER��_�_�.
� -GY AUTHORITY
SECTION 1 —APPLICANT INFORMATION
Name (Name of utility, /PP, or government entity submitting proposal)
City & Borough of Wrangell
Type of Entity: Municipal Utility Fiscal Year End 2013/2014
Tax ID # 926000144 Tax Status: For -profit or tenon -profit ( check one)
Mailing Address Physical Address
PO Box 531 Wrangell, AK 99929 1064 Case Avenue Wrangell, AK 99929
Telephone Fax Email
907-874-2381 907-874-3952 tdrooney(&wranizell.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name Title
Clay Hammer Electrical Superintendent
Mailing Address
PO Box 531 Wrangell, AK 99929
Telephone Fax Email
907-874-3602 907-874-3614 powerplant@gci.net
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
X
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 its project by its
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.
Yes
1.2.4 ff awarded the grant, we can comply with all terms and conditions of the attached
grant form. (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.
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Grant Application M 'ENERGY AUTHORITY
SECTION 2 — PROJECT SLIMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title — (Provide a 4 to 5 word title for your project)
Wrangell Power Plant Upgrade
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.
City & Borough of Wrangell
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.
1064 Case Avenue Wrangell, Alaska 99929
56.461753.-132.379074
2.2.2 Community benefiting — Name(s) of the community or communities that will be the
beneficiaries of the project.
City & Borough of Wrangell
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind
Biomass or Biofuels
X
Hydro, including run of river
X
Transmission of Renewable Energy
Geothermal, including Heat Pumps
Small Natural Gas
Heat Recovery from existing sources
Hydrokinetic
Solar
Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre -Construction
Construction
Reconnaissance
X
Design and Permitting
X
Feasibility
X Construction and Commissioning
X
Conceptual Design
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Wrangell has recently experienced an unprecedented increase in our electrical distribution load.
The increase is a result of customers removing their expensive diesel fuel burning heating systems
and replacing them with lower cost (hydro) electric units. During the 2011/2012 winter season
Wrangell had a record peak load demand of 9.5 MW. Currently the Wrangell Power Plant is
capable of producing 8 MVA. If there were a catastrophic event that disrupted Wrangell's
hydroelectric power supply from Tyee, such as the landslide that affected the Juneau area in
January of 2009, our standby generators could not supply electricity to all of our customers.
Preliminary indications are that Wrangell must install an additional standby generator. This
project will evaluate, recommend, design and install the upgrades needed at the Wrangell Power
Plant that will insure our ability to continue to support all of our customers and their renewable
energy choices.
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, etc.)
Wrangell uses hydroelectric power as its primary source for electricity thus providing our
customers with some of the lowest renewable energy costs in the State of Alaska. Above that we
offer our customers an added benefit; in 2007 we introduced a "heat rate incentive" for customers
that wanted to convert diesel heating systems to electric systems.
Before the cost of oil peaked at $147 dollars a barrel in July of 2008 and the cost of diesel fuel in
Wrangell was $5.35 a gallon, many of our customers converted from diesel fuel burning heating
systems to the lower cost electric powered systems. In the past few years we have seen our customer
usage grow as the cost of diesel fuel has remained high despite the declining cost of oil.
While we support our customers decisions regarding renewable energy preferences we feel that we
may have to discontinue incentive options. We may also have to increase our rates to support the
purchase and installation of an additional generator. Receiving a grant during this preliminary
stage of this project will allow us to postpone these decisions until the study is completed and
recommendations are made.
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.
Anticipated costs for this project stand at $117,136 dollars plus TBD material and construction
costs. We are requesting $117,136 with this grant. There are several unpredictable variables that
prevent an actual project cost until after the evaluation report is completed. After this report is
complete we will be able to address funding contributions for the entire project.
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2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project's total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application.
$117,136
2.7.2 Cash match to be provided
$0
2.7.3 In -kind match to be provided
$0
2.7.4 Other grant applications not yet approved
$0
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3)
$117,136
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.6 Total Project Cost (Summary from Cost Worksheet
$117,136 (+ material and
including estimates through construction)
labor TBD)
2.7.7 Estimated Direct Financial Benefit (Savings) $
2.7.8 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 your application
(Section 5.)
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). 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.
Clay Hammer, Electrical Superintendent with Wrangell Municipal Light & Power will be the
project manager until the RFP is awarded for the evaluation, design and management of the
project.
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
Select Project Management
Issue REP and select Project Manager
7/1/13
8/1/13
Evaluation Stage
Evaluation of electrical power plant
8/1/13
9/1/13
Design Stage
Design layout and identify material needed
for installation of a new/used generator
9/1/13
1011113
Pre -Construction
RFPs for con tractor(s)/equipment/materia Is
10/1/13
11/1/13
Construction
Installing new generator
11/1/13
6/30/14
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3.3 Project Resources
Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment,
and services you will use to accomplish the project. Include any partnerships or commitments
with other entities you have or anticipate will be needed to complete your project. Describe any
existing contracts and the selection process you may use for major equipment purchases or
contracts. Include brief resumes and references for known, key personnel, contractors, and
suppliers as an attachment to your application.
City and Borough of Wrangell charter dictates that all large purchases must go through a formal
request for proposal or bid process for award. For this portion of the project we anticipate issuing
an RFP for the evaluation, design and project management.
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.
Throughout the life of the project, the Project Manager will provide written and monthly updates
to AEA which will include at a minimum:
- Expenditures to date;
- Percent complete; and
- Narrative on progress including any scheduled changes.
In addition, communications on project status will also be provided verbally with the AEA
Project Manager on an informal basis through emails and phone conversations.
3.5 Project Risk
1 Discuss potential problems and how you would address them.
There is little to no potential risk associated with this project. The only foreseeable issue is if the
evaluation report recommends more than just the installation of one standby generator. This
would increase all costs for the project. Until the completion of the evaluation report risk
management is premature.
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.
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4.1 Proposed Energy Resource (cont.)
Wrangell receives its power from the Tyee Hydroelectric Facility. Tyee is capable of producing 22
MW. When there is a disruption in the power supply from Tyee standby generators located at the
Wrangell Power Plant must be used to supply electricity to Wrangell consumers. Wrangell Power
Plant's current configuration has a maximum output capacity of 8 MVA.
Because Wrangell is supplied by hydroelectric the cost to the end consumer has remained relatively
low. As a result many of our customers have opted to change their heating source from diesel fuel
burning systems to the lower cost and more efficient electric systems. As a result the winter demand
for Wrangell has increased from a peak high in January 2007 of 3.24 MW to a peak high this past
winter of 9.5 MW.
If a disruption should happen during the winter months Wrangell's current generators would be
unable to supply all customers at the same time and rolling blackouts would have to be
implemented.
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 City and Borough of Wrangell currently receives power from the Tyee Hydroelectric Facility.
The Tyee facility is capable of producing 20 MW of which Wrangell consumption varies in range
from a low of 2.9 MW to a high of 9.5 MW.
If there is ever an issue (planed or unexpected) that disrupts the transmission of electricity from the
Tyee Hydro Facility, Wrangell Municipal Light & Power must use standby diesel generators to
supply power to our customers.
The Wrangell Power Plant currently has 4 standby diesel generators that are capable of producing
8.5 MVA. These units are all GM EMD's the oldest installed in 1985 has a rating of 2500 (kw) the
other three were installed in 2000 and are all rated at 2000 (kw). These generators run at about
95% efficiency.
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.
Wrangell's only energy resource is hydroelectric power supplied by the Tyee Hydro Facility. The
purpose of this project is to upgrade the backup system for this power and will not affect the
existing infrastructure.
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4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The following is a breakdown of the existing energy market for Wrangell. Our customers can be
divided into 5 main groups Residential, Small Commercial, Large Commercial, Industrial and City
customers. We have lost our industrial customer leaving 4 primary groups. These groups have
been broke down further by rate and incentives.
Wrangell Municipal Light & Power introduced a "heat rate incentive" in January 2007. In 2009
Wrangell received funding to convert several municipal buildings from diesel to electric help lower
the cost of local government. Please note that we also have several customers who have chosen not
to participate in the incentive program but have still installed electric heating systems because even
at our regular rates it is cheaper to run electric systems rather than diesel.
Client 2006 Usage in kwh 2006 2012 kwh 2012
Before incentive Customers 8 months Customer
Residential
71935,625
1042
8,433,762
1076
Residential Heat
Rate
0
0
1,593,818
92
Small Commercial
5,466,944
470
4,338,241
558
Small Commercial
Heat Rate
0
0
1,489,173
43
Large Commercial
3,601,398
10
3,334,767
10
Large Commercial
Heat Rate
0
0
1,022,000
1
Commercial 8 cent
incentive
35,706
1
396,840
3
Industrial
49,472
1
0
0
City Usage
2,964,428
89
2,110,087
1 153
City Heat Rate
0
0
656,905
4
City Light Dept.
517,485
1
401,529
1
Total
20,571,058
1614
23,777,122
1941*
Heat Rate Total
0
1 0
4,761,896
1 140
*The main cause for the increased customer count is Wrangell installed a new boat harbor and boat haul out
work area this added 300 small commercial services
As demonstrated by this chart there has been a large increase in customer usage due in majority to
our "beat rate incentive". Using a power formula to convert electric kwh to diesel gallons we can
validate the impact our program has had and show the increasing reduction in Wrangell's carbon
footprint.
In January 2007 our first 3 customers changed from diesel to electric beat. These customers used a
total of 12,541 kwh in January (using the formula kwh/35=gallons of diesel) this shows a savings of
358 gallons for the first month. Continuing with these numbers local diesel fuel oil consumption was
reduced by approximately 136,054 gallons in the past 8 months displacing an averaging of 17,006.75
gallons per month.
We would like to continue offering this incentive but due to our current generation capabilities we
are considering rescinding this incentive and/or increasing our rates.
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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
Although this project does not specifically use a renewable energy technology it is a key component
in the continuation of a demonstrated community desire to decrease its reliance on nonrenewable
energy sources.
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 City and Borough of Wrangell owns all land and access points related to this project
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
Wrangell Power Plant has already obtained a State of Alaska Department of Environmental
Conservation Air Permit for Operating Diesel Generators which can be changed and/or modified to
include the proposed new/used generator.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
There are no environmental risk related to this project
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4.4 Proposed New System Costs and Projected Revenues
(Total Estimated' Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standard's,
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
The objective of this project is to evaluate the standby generation capabilities of the Wrangell Power
Plant in correlation to peak load demands. Preliminary indications are that the installation of an
additional standby generator is necessary to meet current needs. (see attached EPS estimate) Costs
for the initial evaluation and report will be $17,616.
After the evaluation report is completed the design/permitting stage can begin. This phase is
estimated to cost $24,876* in contractual services for preparing bid/construction documents and
providing a construction cost estimate.
Construction phase administrative fees will be $74,644* including $12,500 for travellper diem and
$62,144 for contractual services for project management.
Total cost for this project is not estimated as the construction material cost and installation costs will
be determined until after the evaluation stage.
*these estimates may have to be adjusted after the evaluation report is complete
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 theyserve.)
The City & Borough of Wrangell plans to purchase a generator similar to the ones we are currently
using thus maintenance costs would be minimal as we currently stock items used for maintenance
and repair issues.
Although operating cost will increase those costs would be dependent on how long the generators
would run during a catastrophic event or planned disruption. These costs are covered in our annual
operating budget as well as with a fuel surcharge that is calculated and paid by all electric
customers.
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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
As this project is for standby generation there are not any related purchase/sale items to report.
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.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
a)
Existing Energy Generation and Usage
Basic configuration (if system is part of the Railbelt' grid, leave this section blank)
i. Number of generators/boilers/other 4
ii. Rated capacity of generators/boilers/other 2500, 2000, 2000, 2000 kwh = 8.5MW
iii. Generator/boilers/other type Generator
iv. Age of generators/boilers/other 12-27 years
v. Efficiency of generators/boilers/other 90%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor 60,019
ii. Annual O&M cost for non -labor 60,000
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] 409,452
ii. Fuel usage
Diesel [gal] 39,817
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
3.962
3.5
2.538
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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vi, Efficiency 90%
vii. Future trends +++
d) Annual heating fuel usage (fill in as applicable) Not Applicable
i. Diesel [gal or MMBtu]
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 Not Applicable
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu] -
iii. Wood [cords, green tons, dry tons]
iv. Other
Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system
d) Annual fuel cost
Project Benefits
a) Amount of fuel displaced for
To Be Determined
To Be Determined
To Be Determined
To Be Determined
i. Electricity Approximately 17,000 gallons of diesel a month
ii. Heat
iii. Transportation
b) Current price of displaced fuel 4.49 gallon
c) Other economic benefits
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d) Alaska public benefits
Power Purchase/Sales Price
a) Price for power purchase/sale .061
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years)
4.4.5 Proposed Biomass System Information
Please address the following items, if know. (For Biomass Projects Only)
• What woody biomass technology will be installed (cord wood, pellets, chips, briquettes,
pucks).
• Efficiency of the biomass technology.
• Thermal or electric application.
• Boiler efficiency.
• Displaced fuel type and amount.
• Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture
percentage.
• Estimated cords of wood to be used per year, specify whether dry or green and the moisture
percentage.
• Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource?
• Inventory data. How much biomass is available on an annual basis and what types (species)
are there, if known?
Not Applicable
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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
This project will insure Wrangell electrical customers that they can rely on Wrangell Municipal
Light & Power's standby generator system in the event of an interruption in the power supplied
from Tyee.
Wrangell's power demands have increased exponentially as a result of our "heat rate incentive
program". This program has not only increased revenue but has eliminated approximately
136,054 gallons of local diesel heating fuel consumption in just the past 8 months. This
displaced an averaging of 17,006 gallons of diesel heating fuel per month. This is a significant
trend that we believe has not yet peaked. However if we do not install another generator soon
we may have to discontinue the incentive program.
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
This project is one step in series of considerations that have and will continue to require frequent
evaluation so that we can meet the needs of our customers. Sustainability of our customers energy
need is our bottom line and this project is but one of many that we will undertake in the foreseeable
future.
AEA13-006 Grant Application Page 14 of 18 7/3//2012
Renewable Energy Fund Round 6 ,1
,�_LAS
Grant Application ENERGY AUTHORITY
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.
If awarded this grant the City & Borough of Wrangell is fully prepared to start the first phase of
this project by issuing a Request For Proposal for a project manager. After the evaluation report is
complete Wrangell Municipal Light & Power is dedicated to meet all recommendations to insure
future and current load demands are maintained. At this point the only grant application is this
one.
SECTION 8— LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
Wrangell Municipal Light & Power customers understand the need for our standby generators and
many are also aware of the need for an additional unit. Opposition to installing another unit is not a
concern however funding costs are. These concerns cannot be addressed until after the evaluation
report is completed and total costs are established.
SECTION 9 — GRANT BUDGET
Tell us how much you want 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 sources and your financial commitment to the
project.
Costs for the initial evaluation and report will be $17,616. The design/permitting phase is estimated
to cost $24,876* in contractual services for preparing bid/construction documents and providing a
construction cost estimate. Construction phase administrative fees will be $74,644* including
$12,500 for traveVper diem and $62,144 for contractual services for project management. Total cost
for this project is not estimated as the construction material cost and installation costs will be
determined until after the evaluation stage. We are fully committed to this project and are
prepared to see it to completion with or without grant funding.
*these estimates may have to be adjusted after the evaluation report is complete
Applications should include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and
Permitting, and Construction). 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 cDaidea. org.
AEA13-006 Grant Application Page 15 of 18 7/3//2012
Renewable Energy Fund Round 6
Grant Application
A-A,KA`
t IM ENERGY AUTHORITY
Source of
Matching
Anticipated
RE- Fund
Grantee
Funds:
Cash/ln-
Milestone or Task
Completion
Grant Funds
Matching
kind/Federal
TOTALS
Date
Funds
Grants/Other
State
Grants/Other
Evaluation Report
$17,616
$
$17,616
TOTALS
$17,616
$
$17,616
Budget Categories:
Travel & Per Diem
$1200
$
$1200
Contractual Services
$16,416
$
$16,416
TOTALS
$17,616
$
$17,616
Source of
Matching
Anticipated
RE- Fund
Grantee
Funds:
Cash/In-
Milestone or Task
Completion
Grant Funds
Matching
kind/Federal
TOTALS
Date
Funds
Grants/Other
Stag
Grants/Other
Pre -Construction Drawings
$19,408
$
$19,408
Construction Prep
$5,468
$
$5,468
TOTALS
$24,876
$
$24,876
Budget Categories:
Contractual Services
$24,876
$
$24,876
Other
$
$
$
TOTALS
$24,876
$
$24,876
Source of
Matching
Anticipated
Grantee
Funds:
Milestone or Task
Completion
RE- Fund
Matching
Cash/In-
TOTALS
Date
Grant Funds
Funds
kind/Federal
Grants/Other
State
Grants/Other
Construction Management I $74,644 I $ I I $74,644
2
Travel & Per Diem 1 $12,500 1 $ $12,500
Contractual Services $62,144 $ $62,144
Other $ $ $
TOTALS $74.644 $ $74,644
AEA13-006 Grant Application Page 16 of 18 7/3H2012
Renewable Energy Fund Round 6
Grant Application
JAR
E ENERGY AUTHORITY
SECTION 10 - AUTHORIZED SIGNERS FORM
Community/Grantee Name:
City & Borough of Wrangell
Regular Election is held: Date: al I '
October 2, 2012
Authorized Grant Si ner(s):
Printed Name Title Term Signature
Timothy Rooney Borough Manager _►n
'v
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name
Title
Term
Signature
Timothy Rooney
Borough Manager
Grantee Contact Information: U
Mailing Address:
PO Box 531
Wrangell, Alaska 99929
Phone Number:
907-874-2381
Fax Number:
907-874-3952
E-mail Address:
tdrooney(ii4rangell.com
Federal Tax ID #:
926000144
Please submit an updated form whenever there is a change to the above information.
AEA13-006 Grant Application Page 17 of 18 7/3//2012
Renewable Energy Fund Round 6
Grant Application ENERGY AUTHORITY _
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 separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Letters demonstrating local support per application form Section 8.
C. An electronic version of the entire application on CD per RFA Section 1.7.
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. 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
Timothy Rooney
Signature
Title
Borough Manager
Date
AEA13-006 Grant Application Page 18 of 18 7/3//2012
electric Power Systems
' Consulting Engineers
Clay Hammer August 28, 2012
Superintendent
Wrangell Municipal Light & Power
Subject: Standby Diesel Power Plant Upgrade Proposal
In recent years the City of Wrangell has experienced load growth at an unprecedented rate.
This has been in large part due to area wide conversion from fuel oil heat to electric heat. Given
that Wrangell has some of the highest fuel oil rates and lowest electric rates in the State it is
expected that the citizens will continue to add electric heating load to the system. As a result of
these added loads and the anticipated load growth it has become critical that the standby diesel
power plant be evaluated and adequately sized to support such loads.
It should be noted that any of the recent and upcoming public facility fuel oil heat to electric heat
conversion projects will not escalate loads imposed upon the standby diesel plant. These
projects were designed to automatically switch from electric boiler heat to fuel oil boiler heat in
the event of a town black out. The switch back to electric boiler heat is done manually at the
discretion of the facility managers in coordination with the diesel standby plant. Currently, a
switch back to electric boiler heat is only expected to be done when hydro power is restored.
Currently there is no similar load management scheme for all other commercial, industrial, residential.
The 2011/2012 winter season experienced peak loads around 9.5 MW. During this peak load the
public facility boilers were switched from electric to fuel oil heat. This dropped the total load to around
8.5 MW. The diesel plant has a capacity of 8 MVA (generation at N-1 contingency and
transformers). Below is an outline of the scope of services, deliverables, and costs to prepare a
complete evaluation and bid ready documentation to upgrade this facility to meet all of Wrangell's
standby power needs.
Deliverables
Evaluation report. This report would include load forecasting, unit evaluation/selection/sizing
options, planttyard equipment evaluation/selection/sizing options, cost comparisons, and
recommendations.
2. Bid/Construction Ready Documents. This will include a complete set of construction ready
drawings, materials specifications, and bill of materials at the 90% and Final Design levels.
This will exclude CSI specifications and other contractually related documents typically
required for a bid ready document package.
3. Construction Cost Estimate.
4. As -built drawings and test reports.
5. Contract Administration/Construction Service related documentation. This would include
such as addendum documentation preparations, design cladfication/vehfication preparations,
materials submittal review document preparation, inspections and follow-up trip reports, and
Change order review document preparations.
6. Project Management reports (monthly) during construction, if required by agency,
WWW.EPSINC.COM
PHONE (907) 789-2474. 2213 JORDAN AVE., JUNEAU, ALASKA 99801 • FAX (907) 789-4939
$; electric Power S s� t_
inc.
Consulting Engineers
Scope of Services
1. Evaluation report information gathering and coordination/review of draft reports with WML&P.
Site travel and periodic meetings as needed.
2. Design package assembly and coordination with WML&P during review process. Periodic
teleconferencing as needed.
3. Construction Cost estimating and all associated material quote gathering for Contractor
responsible work.
4. Owner furnished materials procurement assistance.
5. Construction Services (pre-bid/construction meeting attendance, bid evaluation assistance,
inspections, and other services needed to provide aforementioned construction service
documents).
6. Commissioning and acceptance testing services.
7. Project Management
8. Contract Administration Services (contract dispute resolutions, change order reviews, etc.)
9. Project Closeout agency coordination (includes previously mentioned final project
documentation preparation).
Task Description
Labor Hours
Expenses
Qty
Subtotal
Engr
XI
Engr
IX
Engr
VII
Engr
III
Evaluation Report
60
24
12
$1,200
1
$17,616
90% Drawing & BOM Prep
16
8
60
60
1
$19,408
Final Drawing & BOM Prep
8
4
24
24
1
$8,180
Construction Cost estimate
preparation
4
4
1
$1,352
Materials specifications and
procurement assistance
8
4
8
8
1
$4,116
Contract admin and services
60
8
$1,500
1
$11,944
Inspection and Commissioning
Trips
60
80
$8,000
1
$30,420
C&M Manuals, test reports, as-
built drawings
16
8
16
1
$5,944
Project Management & Closeout
32
60
$3,000
$18,156
Contingency (based on outcome of
Evaluation Report)
TBD
TBD
TBD
TBD
rBD
TBD
Note 6
Grand Total
===> $117,136
WWW.EPSINC.COM
PHONE (907) 789-2474 • 2213 JORDAN AVE., JUNEAU, ALASKA 99801 • FAX (907) 789-4939
P Iectric Power S s�ms
�y.of Consulting Engineers
Notes:
1. WNIL&P to provide evaluation report and design review comments.
2. WML&P to provide regular (daily/weekly) reports during construction to EPS.
3. The estimate is valid through 12/31/12, but can be updated upon request.
4. This estimate excludes upgrade of switchgear, modifications to engine controls, mechanical
and structural design elements (provided by Wrangell in-house), and emissions/air permitting.
These services can be included later at normal billing rates, if necessary.
5. This estimate assumes that only one generator unit will be added to the plant and the existing
floor space will accommodate the unit. The design cost may increase if more than one unit is
needed based upon evaluation report.
6. This estimate may need to be revised based on the outcome of the Evaluation Report.
7. This estimate does not include construction costs but will be estimated during the design
phase.
If you have questions or require additional information, feel free to contact me at (907) 523-3102 or
egeoree epsinc.com or David Buss at (907) 523-3101 or dbuss(aepsinc.com.
Thank you,
Earl George, PE
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PHONE (907) 789-2474 • 2213 JORDAN AVE., JUNEAU, ALASKA 99801 • FAX (907) 789-4939