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HomeMy WebLinkAboutREF VI Commitment LetterINSIDE PASSAGE ELECTRIC COOPERATIVE P.O. Box 210149, Auke Bay, AK 99821 (907)789-3196 ext 24--790-8517 FAX September 20, 2012 Renewable Energy Fund, Round 6 Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 Re: Inside Passage Electric Cooperative — Renewable Energy Fund Round 6 Grant Application — Letter of Commitment Construction Funding Request-Gartina Falls Hydroelectric Project Application Review Committee: Inside Passage Electric Cooperative (IPEC) is pleased to submit the attached application for a Renewable Energy Fund Grant for a Hydroelectric Project, an eligible renewable energy project as defined under AS 42.45.045. IPEC is authorized by the Regulatory Commission of Alaska to provide power to the community of Hoonah under Certificate of Public Convenience and Necessity, CPC&N No. 244. The attached Application documents and describes the request for construction funding for the proposed hydroelectric project. The total estimated construction cost is $6,694,000 (2012). The estimated fuel savings as a result of this project is estimated at 135,000-gallons/year. IPEC commits to this project a Match of up to $15,000 in direct labor costs (wages and benefits), and a Match of $450,000 from the Department of Energy that was received when granted REF Round 3 funds. IPEC strives to keep electric costs as low a possible by maximizing operating efficiencies and reducing operating costs. This project will provide a significant improvement toward meeting this goal, and will greatly benefit the community of Hoonah. IPEC welcomes the Alaska Energy Authority to implement this essential renewable energy project, and requests the Review Committee carefully consider the merits of this application. IPEC expects to receive a FERC License to Construct by the end of 2012. We look forward to working with you on this project. Please feel free to contact me at (907) 789-3196, ext 24 with questions. Sincerely y',' `/ �IAUx� Jodi Mitchell CEO/General Manager, IPEC