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HomeMy WebLinkAbout092112_AEA-Eagle Solar Array Project September 21, 2012 Alaska Energy Authority AEA 13-006 Renewable Energy Grant Application 813 West Northern Lights Blvd Anchorage, AK 99503 RE: Eagle Solar Array Project Grant Application AEA 13-006 Renewable Energy Grant Application Dear AEA: Enclosed in response to RFA AEA 13-006 Renewable Energy Grant Application program, is an application requesting funding for the Eagle Solar Array Project. Enclosed with this letter are two hard copies and one CD with the document in PDF format. Enclosed as per the RFA, o Grant Application Form o Cost Worksheet (included in the body of application) o Grant Budget (included in the body of application) o Other pertinent information in Section 11 If you have any questions, please call either Glen Martin (Resource Assessment & Permits) 360-385-1733 x122, or Bob Grimm (President) 360-385-1733 x120. Sincerely, Glen D. Martin Resource Assessment & Permits Enc. (as stated) Renewable Energy Fund Round 6 Grant Application AEA 13-006 Application Page 1 of 22 7/3/2011 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.org/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 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 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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 2 of 22 7/3//2012 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Power Company (APC) Type of Entity: Utility Fiscal Year End: December 31 Tax ID # 92-0153693 Tax Status: X For-profit or non-profit ( check one) Mailing Address P.O. Box 3222 Port Townsend, WA 98368 Physical Address 193 Otto Street Port Townsend, WA 98368 Telephone 360-385-1733 Fax 360-385-7538 Email glen.m@aptalaska.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Glen Martin Title Grant Writer Mailing Address P.O. Box 3222 Port Townsend, WA 98368 Telephone 360-385-1733 Fax 360-385-7538 Email glen.m@aptalaska.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 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 If 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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 3 of 22 7/3//2012 SECTION 2 – PROJECT SUMMARY 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) Eagle Solar Array Project 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. The communities of Eagle and Eagle Village will benefit from this project. 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. 64°47'0.76"N, 141°12'14.50"W 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The communities of Eagle and Eagle Village will benefit from this project. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic X 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 Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Eagle Solar Array Project will provide renewable energy to the communities of Eagle and Eagle Village. The Project will consist of one hundred sixty three solar panels, six three phase inverters, a programmable logic controller, SCADA system, and diesel powerplant interface for the towns of Eagle and Eagle Village. Energy derived will be used to offset diesel fueled generation; particularly during the summer months. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 4 of 22 7/3//2012 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.)  The Eagle distribution system presently consumes about 770,000 kilowatt-hours per year. All energy is currently generated by diesel gensets making rates highly dependent on fuel prices. The proposed Eagle Solar Array would displace approximately 40,000 kilowatt-hours per year thus saving 3200 gallons of diesel fuel per year, the associated costs and hazards of transport, and the associated emissions. Both Eagle and Eagle Village are listed as distressed communities by the Denali Commission in their 2012 report. Providing clean, renewable energy that may lead to lower electric rates in the long term will provide a public benefit to these struggling communities. 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. Project cost including design, procurement, installation, and commissioning will cost $165,750. AP&T will provide engineering design, programmable logic controller programming, and SCADA development; the equivalent of $33,150 in in-kind funds. Phase AEA Grant Funds APC In-Kind Funds Total I – Reconnaissance $0 $0 $0 II – Feasibility/Assessment $0 $0 $0 III - Design and Permitting $0 $0 $0 IV – Construction $132,600 $33,150 $165,750 Total $132,600 $33,150 $165,750 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. $132,600 2.7.2 Cash match to be provided $ 2.7.3 In-kind match to be provided $33,150 2.7.4 Other grant applications not yet approved $ 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $165,750 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 $165,750 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 5 of 22 7/3//2012 including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $12,000 1 / annually 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.) $ 1 Save 3200 gallons of diesel fuel per year. At 12.5 kwh per gallon, that’s 40,000 kwh. At $0.30 per kilowatt-hour this is a savings of $12,000 per year.   Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 6 of 22 7/3//2012 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. Bob Berreth – Senior Electrical Engineer, APC EMPLOYMENT: Present Position: Electrical Engineer, Alaska Power & Telephone Company 1992 – Present Electrical Engineer, Alaska Power & Telephone Co., Port Townsend, WA 1989 – 1992 Engineering Consultant Alaska Electric Light & Power - Juneau, Alaska Haines Power & Light - Haines, Alaska Consolidated Hydro - Boise, Idaho Bonneville Pacific Corporation - Salt Lake City, Utah 1985 – 1989 Chief Engineer – Electrical, Hydro West Group, Bellevue, WA 1975 – 1985 Chief Engineer, Principal, Washington Electric Controls, Seattle, WA 1968 – 1975 Assembler, Wireman, Draftsman, Chief Engineer, United Power & Control Systems, Kirkland, WA The local utility APC has been in operation in Alaska since 1957 and generates electricity with hydroelectric and diesel power plants throughout Alaska, presently serving 26 communities, as shown in the below map “Service Areas”. APC has staff certified electrical, civil, and mechanical engineers who help design and build their infrastructure. APC’s engineers are responsible for the designing, ordering materials, and construction of impoundment structures, power plants, turbines, generators, switchgear, SCADA networks, transmission lines, etc. APC has a reputation for its reliable operations and well maintained facilities and operations and construction personnel are among the best in the industry. APC also has experience with grant funds and can provide the appropriate reporting and expense reports to AEA. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 7 of 22 7/3//2012 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 Engineering Final design drawings and calculations, PLC programming, installation instructions, powerplant interface July-13 Aug-13 Procurement Material procurement and installation hardware Aug-13 Nov-13 Installation Mechanical and electrical installation including powerplant modifications Feb-14 Apr-14 Commissioning Setup, testing, and release for production Apr-14 May-14 Project Closeout As-built drawings, programming, and operator instructions May-14 Jun-14 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 8 of 22 7/3//2012 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. Grant Administrator: Alaska Power Company APC has experience in designing, permitting, and installing electrical infrastructure from distribution lines to hydroelectric projects. APC has been providing electrical service to 26 communities in Alaska since 1957 and to POW since 1962. APC has been providing service to Eagle and Eagle Village since 1993. Contractor: Alaska Power Company (APC) Project Manager: Bob Berreth – Senior Electrical Engineer, APC KEY STAFF EXPERIENCE APC will administer the grant funds and perform the work. The key personnel that will be responsible for project construction for APC are identified below, along with a brief summary of each individual’s qualifications, and experience. Detailed resumes are provided as enclosures. Grant Administrator / Use and Reporting: Karl Wood (APC) Mr. Wood is a Financial Analyst with APC and handles all grant fund reporting. Mr. Wood has over 20 years experience in accounting and been providing grant fund reporting for the last 9 years with funds ranging from $65,000 – $6,500,000. Electrical Engineer: Bob Berreth (APC) Mr. Berreth has more than 44 years experience as an electrical engineer in the power generation industry. He has been with APC for over 20 years, and has contributed to the planning, design, construction, and operation of the electrical and control systems for all of APC’s hydroelectric projects. He has provided electrical engineering assistance to AEL&P on numerous projects, and to Gustavus Electric Company on the Falls Creek Hydro Project. Mr. Berreth also has considerable experience with the integrated operation of diesel and hydro plants. Land use, Permitting, and Environmental Analysis: Glen Martin (APC) Mr. Martin has more than 19 years of experience with AP&T in permitting, technical writing, grant writing, project management, and developing NEPA-compliance documents. His experience includes research and development of complex reports for submittal to Federal and State agencies for the permitting and licensing of hydroelectric projects and other alternative energy resources. He has a well-developed understanding of the role of various Federal and State agencies in regards to renewable energy development. Mr. Martin will be primarily responsible for the land use, permitting, and environmental analysis. Quality Control: Vern Neitzer (APC) More than 40 years working on a variety of projects associated with providing quality power and telephone service to isolated Alaskan communities. Chief Engineer responsible for identifying, recommending and implementing additions, improvements and maintenance for the following service communities: Skagway, Tok, Craig, Hydaburg, Bettles, Tanacross, Tetlin, Mentasta, Chistochina, Dry Creek, Dot Lake, Hollis, Coffman Cove, Naukati, Whale Pass, Meyers Chuck, Healy Lake, Northway, Eagle, and Haines. Experience also includes hydroelectric project Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 9 of 22 7/3//2012 feasibility studies, permitting, design, construction, operation and maintenance engineering. 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. During Phases IV - Construction, APC proposes to provide quarterly reports to AEA regarding the status of the work. APC has provided similar reports to AEA and other grant funding agencies in the past several years on other projects, and has established the necessary procedures for producing the report expeditiously. At the completion of Phase IV, APC will provide AEA with a Final Report with project costs and a description of operations and fuel savings after one year of operating with the solar array. 3.5 Project Risk Discuss potential problems and how you would address them. Solar energy products including arrays and inverters utilize mature technologies. The only potential problem that would delay completion of this project would be condition of the Taylor Highway between Tetlin Junction and Eagle. This road can experience washouts and mild to severe frost heaves, which could delay or slow down construction. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 10 of 22 7/3//2012 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. Eagle, Alaska is located at 64° 47’ 10” N, 141° 12’ 0” W. Hours of daylight for the first day of each month are as follows: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4:00 6:55 10:07 13:35 17:01 20:33 21:25 18:11 14:39 11:19 7:51 4:43 72% of the annual energy will be generated between April 1st and October 1st of each year. While the solar resource is poor during the winter, it is quite high during the summer. According the NREL, the National Renewable Energy Laboratory, the solar resource is less than 2 kWh per square meter per day in January, but 6.0 to 6.5 kWh per square meter per day in June. Solar Resource – Eagle-January Solar Resource – Eagle - June The Eagle electrical system is small; generally peaking less than 125kW. Hydrokinetic energy has been tried in the Yukon River, but debris, winter freeze-up, and other conditions make that form of energy difficult. There is no viable wind resource in Eagle. Except for the current diesel generation, it appears that solar energy is the best renewable energy source for this community at this time. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 11 of 22 7/3//2012 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. Eagle and Eagle Village are currently served by Alaska Power Company with a single powerplant containing three diesel driven gensets. Unit #1 is a Cummins NT855 G4 rated 160kW. Unit #2 is a Cummins L10A10-C rated 175kW. Unit #3 is a Cummins L10A10-G rated 125kW. Engines currently average about 12.5kWh per gallon of diesel fuel. 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. The APC diesel plant is the only energy resource currently used for Eagle and Eagle Village. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. AP&T serves Eagle and Eagle Village. Current generation is about 770,000 kWh per year. Energy derived from renewable would displace diesel fuel. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods The Eagle Solar Array Project will utilize commercially available, proven, solar modules made of polycrystalline silicon. Units are qualified under UL Listing UL 1703 and NEC compliant. Approximately 163 units will be combined to produce a net output to the Eagle system of 30kW at peak power. Output from the solar panels will utilize multiple inverters to provide a three phase 208/120V output. Energy will be incorporated into the APC diesel plant and programmed for maximum efficiency and maximum displacement of diesel fuel depending on the available solar resource. APC is required by the APUC to provide electric power to its customers within certain limits. While Eagle could take advantage of more solar energy in the summer, an installation of 30kW was selected to allow isochronous operation of a single diesel genset to insure meeting those voltage and frequency guidelines. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 12 of 22 7/3//2012 From data compiled by the National Renewable Energy Laboratory, anticipated annual generation is almost forty thousand kilowatt-hours. [see below] Solar Panels and inverters will be located next to the existing AP&T diesel plant. Integration into the plants main distribution bus will be relatively easy and proximity to the plant will make operation and maintenance activities fairly routine. Optimum installed capacity An installation of 30kW per solar panel was selected to allow isochronous operation of a single diesel genset to insure meeting those voltage and frequency guidelines. Anticipated capacity factor N/A Anticipated annual generation 40,000 kilowatt-hours per year Anticipated barriers No barriers are anticipated due to APC owning the property the project will be located on Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 13 of 22 7/3//2012 and also being the local utility owning and operating all the electrical infrastructure. There will be no environmental impacts. Access to Eagle can occasionally be challenging if the road washes out during the construction phase. Basic integration concept The project will integrate with the existing diesel genset and intertie with the existing distribution micro-grid within Eagle and to Eagle Village. Delivery methods The Project will deliver power through the existing electric distribution micro-grid. 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 solar array will be placed on APC property in Eagle; either on the roof of the diesel power plant or on the ground within the property. 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 No permits are expected to be necessary for this project. 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 Project is located within the community of Eagle and will not require any clearing as the existing APC property at the diesel powerplant will be utilize. The solar array will not interfere with wildlife or vegetation. Please see the photo below:  Threatened or Endangered species Because no vegetation will be disturbed, the solar arrays will not prohibit avian navigation, and the area has been altered by development and clearcut’s, etc. TES species should not be significantly impacted.  Habitat issues Habitat will not be disturbed for the reasons mentioned above. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 14 of 22 7/3//2012  Wetlands and other protected areas No wetlands are present in the project rights-of-way.  Archaeological and historical resources No archaeological survey will be necessary as ground disturbance will not occur; also the APC powerplant property has had years of disturbance.  Land development constraints There are no land development constraints because APC owns the property and the solar arrays should have no impacts to neighbors, of which there are few (see photo above).  Telecommunications interference The solar arrays have a low voltage and will have no affect on telecommunications.  Aviation considerations The projects infrastructure will be lower than most trees in the area and out of normal flight paths of aviators.  Visual, aesthetics impacts The solar array could provide minimal reflective impacts, but primarily from the air; would require a specific angle and would therefore only have an impact from a limited angle.  Identify and discuss other potential barriers There are no known barriers. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 15 of 22 7/3//2012 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  Total anticipated project cost, and cost for this phase $165,750  Requested grant funding $132,600  Applicant matching funds – loans, capital contributions, in-kind $33,150 (in-kind from engineering, design, and construction)  Identification of other funding sources No other funding sources  Projected capital cost of proposed renewable energy system $165,750  Projected development cost of proposed renewable energy system $165,750 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) O&M costs for this new infrastructure will be paid for out of APC’s existing revenue. 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 N/A; APC is the existing power provider for this community. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 16 of 22 7/3//2012 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) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 2 grid, leave this section blank) i. Number of generators/boilers/other 3 Diesel gensets ii. Rated capacity of generators/boilers/other Unit #1 is a Cummins NT855 G4 rated 160kW. Unit #2 is a Cummins L10A10-C rated 175kW. Unit #3 is a Cummins L10A10-G rated 125kW. iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other Currently average about 12.5kWh/gal of diesel fuel. b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $116,500 ii. Annual O&M cost for non-labor 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] 770,000 kWh ii. Fuel usage Diesel [gal] 54,362 (2011) Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency 14.01 kilowatts per gallon vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 17 of 22 7/3//2012 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] Solar – 30kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 40,000 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 $165,750 b) Development cost c) Annual O&M cost of new system d) Annual fuel cost N/A Project Benefits a) Amount of fuel displaced for i. Electricity 3200 gallons of diesel annually ii. Heat iii. Transportation b) Current price of displaced fuel $3.98/gal. c) Other economic benefits d) Alaska public benefits Fewer air emissions from burning a fossil fuel Power Purchase/Sales Price a) Price for power purchase/sale APC is the owner of the powerplant and all electrical infrastructures in Eagle. APC is proposing to install these solar panels and would therefore be reducing its own use of diesel fuel. There Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 18 of 22 7/3//2012 will not be a power purchase/sale agreement. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 5.29 Payback (years) 5 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) N/A 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 offset approximately 3200 gallons of diesel fuel annually; which at $3.98/gal. is a savings of approximately $12,736 annually. There will not be a Power Purchase Agreement as APC will be generating solar power for its own electric grid in these two communities. The non-economic benefits: Cleaner air for Eagle and environs by reducing the use of diesel up to approximately 3200 gallons per year; which is a start in getting this remote, rural community off of fossil fuels. 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 Project Sustainability: Because APC owns and operates the electrical infrastructure in Eagle and Eagle Village, there will be no changes to business structure or concepts and financing of O&M Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 19 of 22 7/3//2012 will come out of the normal revenue stream. At this time there are no known operational issues. Because the project will be integrated into the existing diesel generation system, the diesel generation will be the back-up for continued operations. APC is committed to reporting the savings and benefits as long as necessary. 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. Preparation for this award includes our research and testing of a hydrokinetic turbine at Eagle in 2010. We intend to proceed with the ordering of the solar panels in July 2013 and installation of the panels is expected to be completed by May-June 2014. No other grants have been applied for. 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. Although we do not have letters of support, the Community of Eagle has been in support of renewable energy projects in the past; i.e. the hydrokinetic project; please see letters of support enclosed in Section 11. We believe they will also support this project and are asking them for a letter of support at this time. 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. The total project cost is estimated to be $165,750. APC will provide an in-kind match of $33,150 (20%) for the engineering and installation costs. The total amount APC is requesting from AEA is $132,600. APC is financially committed to this project as an option to reduce Eagle and Eagle Village reliance on fossil fuels for electricity. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 20 of 22 7/3//2012 Construction Phase 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 Engineering Aug. 2013 $17,850 $13,150 $31,000 Procurement Nov. 2013 $95,750 $ $95,750 Installation Apr. 2014 $19,000 $5,000 $24,000 Commissioning May 2014 $ $10,000 $10,000 Project Closeout June 2014 $ $5,000 $5,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $132,600 $33,150 $165,750 Budget Categories: Direct Labor & Benefits $ $28,150 $28,150 Travel & Per Diem $ $5,000 $5,000 Equipment $75,750 $ $75,750 Materials & Supplies $25,000 $ $25,000 Contractual Services $12,500 $ $12,500 Construction Services $15,350 $ $15,350 Other $4,000 $ $4,000 TOTALS $132,600 $33,150 $165,750 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 21 of 22 7/3//2012 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Alaska Power Company Regular Election is held: Annually Date: Authorized Grant Signer(s): Printed Name Title Term Signature Glen Martin Grant Writer N/A Karl Wood Grant Fund Admin. N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Robert S. Grimm CEO / President N/A Grantee Contact Information: Mailing Address: P.O. Box 3222, Port Townsend, WA 98368 Phone Number: (360) 385-1733 x120 Fax Number: (360) 385-7538 E-mail Address: bob.g@aptalaska.com Federal Tax ID #: 92-0153693 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 22 of 22 7/3//2012 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 Robert S. Grimm Signature Title CEO / President Date RESUMES Page 2       04/04/12 3 LETTERS OF SUPPORT [letters are for renewable energy development for the hydrokinetic test project tested in 2010, but reflect support for renewable energy for these communities] GOVERNING BODY RESOLUTION CERTIFICATION