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HomeMy WebLinkAboutCoffman Cove AEA grant applicationRenewable Energy Fund Round 6 _ Grant Application 4WEED 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: htt ://www.akener authorit .or IRE i=und-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. AEA 13-006 Application Page 1 of 32 7/3/2011 Renewable Energy Fund Round 6 Grant Application id111111111111110, ENERGY AUTHORITY SECTION I - APPLICANT INFORMATION';, Name (Name of utility, IPP, or govemment entity submitting proposal) City of Coffman Cove Type of Entity: Utility Fiscal Year End: .tune 30 Tax ID # 92-0132969 Tax Status: —For-profit or tenon -profit ( check one) Mailing Address Physical Address P.O. Box 18135 102 Denali Alley Coffman Cove, Alaska 99918 Coffman Cove, Alaska 99918 Telephone Fax Email 907-329-2233 907-329-2212 coffmancove@ccalaska.com 1.1 APPLICANT POINT OF CONTACT 1 GRANTS MANAGER Name Title Misty Sea Fitzpatrick Administrator Mailing Address P.O. BOX 18135 Coffman Cove, Alaska 99918 Telephone Fax Email 907-329-2233 907-329-2212 coffmancoveci�ccalaska.com 1.2 APPLICANT MINIMUM REQUIREMENTS'. Please check as appropriate..:If you do not to meet the minimum applicant requtrerrients, 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); 1.2.2 Attached to .this application is formal approval and endorsement for its project by Yes 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.) No 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 pleasedescribe the nature of the project and who will be the primary beneficiaries. See .Below .. AEA13-006 Grant Application Page 2 of 32 713//2012 Renewable Energy Fund Round 6 Ulu .. UUMIL MIJOHE ailOfl 0 =MMD ENMGYAU H_0R_FY _ This project would provide a renewable energy; intertie_to: part of the City of Coffman Cove, Alaska that presently are self -generating because they are not on the islands micro -grid.: TheCity Coffman Cove was connected to Prince of Wales Island (POW) renewable energy micro -grid in 2011 shutting down the diesel generators serving: the community.- However, significantportions of the community are not connected to the distribution system. There are. 91 privately owned lots :that must self -generate at an approximate cost of $2.35/kWh (based on the cost of residential. fuel; small generator costs; and, the monthly average kWh used by those on the islands grid); the formula for determining this can be found below in the application..: The renewable energy micro -grid on POW has a - rate of $0.2243/kW.h for a residential rate, 'which would provide a significant savings to these unserved lots. The City of Coffman Cove, a Denali Commission Distressed Community, cannot afford to bring in this electric' infrastructure and must therefore seek grant funding for this to happen. APC has graciously agreed to credit the first nine households that connect to this grid once it is in place, an amount equal to $36,000. AEA13-006 Grant Application Page 3 of 32 7/3//2012 Renewable Energy Fund Round fi GME�x Grant Application ENERGYALMHQRITY 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) %,urrrr1art Love nyaropower Line r-mension 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. rivjuut 15 rvudr(-,u Orr;. urrrrrdrr %,uve, kpvp. i rb; Lu-iu uensus), vrince of Wales Island. 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 Google search window above the map in a format as follows: 61.195676.449M6663. It you:would like assistance obtaining this information please contact AEA at 907-771-3031- Do UV or IV, 1,3L­40,3r VV 2.2.2 Community benefiting -- Name(s)' of the community or communities that willbethe beneficiaries of the project. vrrservuu hurnub dnU Ub rn Gorrman cove inai presently use fossil fuels for heat, lighting, cooking, etc. 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 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 Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project I nis project would provide a renewable energy intertie to part of the City of Coffman Cove, Alaska that presently are self -generating because they are not on the islands micro -grid. The City of Coffman Cove was connected to Prince of Wales Island (POW) renewable energy micro - grid in 2011, shutting down the diesel generators serving the community. However, significant portions of the community are not connected to the distribution system. There are 91 privately owned lots that must self -generate at an approximate cost of $2.35/kWh (based on the cost of residential fuel; small generator costs; and, the monthly average kWh used by those on the AEA13-006 Grant Application Page 4 of 32 7/3//2012 Renewable Energy Fund Round 6 ANK) SUED Grant Application 411111111ED ENERGY AUTHORITY islands grid); the formula for determining this can be found below in the application. The renewable energy micro -grid on POW has a rate of $0.2243/kWh for a residential rate, which would provide a significant savings to these unserved lots. 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.) mousenoios on ine grid average z�i iz/montn. tjased on our analysis regarding the operation of a gas fueled portable generator, the cost to self -generate is approximately $2.35/kWh versus the local renewable energy grid's rate of $0.2243/kWh. Placing these self - generating households on the POW grid will provide many social benefits, not the least of which is lower electric rates. The City of Coffman Cove, a Denali Commission Distressed Community, cannot afford to bring in this electric infrastructure and must therefore seek grant funding for this to happen. APC has graciously agreed to credit the first nine households that connect to this grid once it is in place, an amount equal to $36,000. Most people don't run their generators more than 12 to 14 hours a day; using the premise that the generation is run 14 hours per day, this equates to $39.06'/day spent on fuel. This equates to $1,172.002 for a 30-day month for just the fuel; while operating at 50% load. A generator purchased at $999.00, and assuming it is replaced every 2.5 years,3 the cost of fuel over this timeframe would be $35,160.00,4 for a total cost of $36,159.00/per 2.5 years; without replacement parts, oil, filters, or repairs. Considering the modest incomes Coffman Cove has, $14,000 a year just for fuel is a significant part of their household budget. The median household income for Coffman Cove is $22,045, which is only 34% of the median household income for the State of Alaska at $64,576.5 16.2 gallons x $4.50/gal. = $27.90 - 10 (number of hours for tank of gas) = $2.79/per hour x 14/hrs = 39.06; remember, this is for only running at 50%. z $1,172/mo. - $112/mo = 10.46 times more per month for self generation. 10.46 x $0.2243 = $2.35/kWh. 3 The cost of replacement is cheaper than rebuilding. 4 Fuel for one year would equal $14,064. 5 factfinder2.census_gov AEA13-006 Grant Application Page 5 of 32 7/3//2012 Renewable Energy Fund Round 6 affilD Grant Application ENERGYAUTHORmr 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the natureand source of other contributions to the project. The total cost of the Project is estimated to be $175,000. APC will install the distribution line infrastructure. The City of Coffman Cove proposes AEA grant funding of 100% of the total cost ($175,000), with APC providing an in -kind matching in the form of a credit to the first 9 residential customers to hookup. The hookups from the distribution line generally cost $4,000 each. This would provide a savings to some of those in the distressed community of Coffman Cove in the amount of $36,000 total. Funding for Phases I & 11 is not being sought; unnecessary. The estimated funding by Phase is as follows: Phase AEA Grant Funds I - Reconnaissance $0 Il - Feasibility/Assessment $0 III - Design and Permitting $25,000 IV - Construction $150,000 V - Residential Hookup $0 Total $175,000 APC In -Kind Funds $0 $0 $0 $0 $36,000 (hookup credits) $36,000 COFFMAN COVE RENEWABLE ENERGY LINE EXTENSION AFA r.RAKIT R1 inr-c-r Total $0 $0 $25,000 $150, 000 $36,000 $211,000 Final Engineering & Design July-1 3 Order Materials Jul -13 Permitting July 2013 - Au ust 2013 ROW Clearing August - Se tember 2013 Receive Materials Se tember-13 Contractor completes construction Jul -14 Final testing, energization, and closeouts Au ust-14 Direct Labor & Benefits $58,000 Travel & Per Diem $12,000 Equipment $20,000 Materials & Supplies $35,000 Contractual Services $15,000 Construction Services $10,000 Other $25,000 TOTAL $175,000 2.7 COST AND BENEFIT SUMMARY Include a summary of grant request andyour. project s total. casts and 6eriefits below, Grant Casts AEA13-006 Grant Application Page 6 of 32 7/3//2012 Renewable Energy Fund Round 6 AMMED Grant Application ENERGYAUTHQRFT-Y (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $175,000 2.7.2 Cash match to be provided $ 2.7.3 In -kind match to be provided $36 00gs 2.7.4 Other grant applications not yet approved ... $0,00 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $175 0007 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.) 5 Alaska Power Company (APC), the local utility has agreed to provide a $4,000 credit to the first 9 customers hooked up (this is the hookup fee). The City of Coffman cannot afford to provide matching cash and would like to use APC's $36,000 credit as an in -kind, after construction, match. Please refer to footnote 6 for explanation. AEA13-006 Grant Application Page 7 of 32 7/3/12012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY SECTION;3 = PROJECT MANAGEMENTPLAN Describe who will be responsible ,for managing the, project and provide:a plan for successfully completing the project within'the scope, "schedule and budgetproposed 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. i ne t,iry or t�otrman trove nas the following organizational structure: Citv Council Name Seat Contact Vacant Seat A 907-329-2233 (elected) Vacant Seat B 907-329-2233 (elected) Ruth Lux Seat C 907-329-2233 (elected) Cindy Huff Seat D 907-329-2233 (elected) Brian Wilson Seat E 907-329-2233 (elected) Carolyn Duncan Seat F 907-329-2233 Mayor (elected) Randy Lenz Seat G 907-329-2233 (elected) The City of Coffman Cove does not have a tax base. All operating funds come from state grants (gilt, timber receipts, raw fish tax, and revenue sharing). The water/sewer utility pays for itself through fees as well as a refuse collection service. We operate our EMS and fire department on community fundraisers. Grant Administrator The City is currently successfully managing over $3 million in grant funds and we are confident we can administer AEA grant funds. The City is proposing to use the local utility, APC, as its contractor to install the distribution line to the 91 lots. The City would be the grant administrator and would receive reports from APC on a quarterly basis on its expenditures and progress. The APC report would be incorporated into the City report to AEA for progress reports and for payment of work and materials completed. Protect Manager 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 en ineers who help design and build their infrastructure. APC's engineers are AEA13-006 Grant Application Page 8 of 32 7/3//2012 Renewable Energy Fund Round G Grant Application , ENERGY AUTHORITY 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 us, as the grant administrator, that we can submit to AEA. Greg Mickelson, VP -Power Operations, APC, will be the Project Manager of Construction. ❑ Mr. Mickelson was involved in the construction of both the Black Bear Lake and South Fork hydroelectric projects on POW and now oversees the operation and maintenance of both projects. ❑ Mr. Mickelson has overseen the construction of over 120 miles of 34.5 kV three-phase distribution line on POW. ❑ Mr. Mickelson oversees the management of the POW grid in maintaining its balance when diesel generation is needed for occasional peaking along with the hydro. ❑ Mr. Mickelson has overseen $5-8M Annual Capital Budgets and has managed grant funding for many capital improvements. ❑ Mr. Mickelson has performed power plant construction, high voltage transmission lines, substations, switch yards and distribution line work, including designing and installation of single and three phase distribution lines and diesel generator maintenance. AEA13-006 Grant Application rage 9 of 32 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY 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. rnvur=U I Z)Ut t=UULc -- I ne roar scneaule of the expected design and construction sequence summarizes key activities and dates of the schedule. Note that this schedule is only for the Phase III and IV development sequence; activities funded by this grant will be in Phases III and W only. Any of the limited Phase 11 activity necessary will beat the contractor APC expense. Please I: Reconnaissance: Completed Spring 2012 Phase 11: Resource Assessment/FeasibiRty Analysis/Conceptual Design: Completed Summer 2012 APC believes that environmental field surveys for this Project will be very limited, since the impact area is quite small, has had some development (logging, timber staging and transport, road and home building), is second growth timber, does not cross anadromous streams, and is within the City limits and roadways. Phase III: Permitting and Final Design: July - August 2013 In this phase, permits and final design documents will be prepared. Permits will include: ADF&G review to determine if a fish habitat permit is necessary; and a SHPO review. Final design will begin in July 2013 with the intent to start construction August -September 2013. Phase IV: Construction: August 2013 — Fall 2014 Once all permits are received / waived and funding for this phase is secured, APC will place the order for all pertinent infrastructure, approximately 31 wood poles, approximately 9,250 feet of 12 kV conductor, approximately 9,250 feet of neutral, transformers, anchors with guys, etc. Onsite construction will begin in approximately August 2013 and continue through August - September 2014. The construction work should not be significantly compromised by weather at this temperate location; although snow could slow progress for a few days in early spring. Start End Milestones Tasks Date I Date Grant Funding approved Contract signed; initiate project activities July July 2013 2013 Phase III: Final design Locations of power line and need for July July anchors, transformer locations, etc. 2013 2013 Phase III: Receipt of all Get approvals from SHPO, USF&WS, and July August necessary permits / waivers ADF&G 2013 2013 Order Supplies Order poles, transformers, conductor, July July neutral, guys and anchors, etc. 2013 2013 Clear some rights -of -way of Clear, as needed, ROW along the route for August Sept. trees and bAEAh the distribution line (will be in existing road 2013 2013 ROW Flag right-of-ways Flag the pole locations August Oct. 2013 2013 Stag poles and other Stag poles as they arrive along project Sept. Oct. equipment in work areas ROW 2013 2013 Auger 1 S-inch holes for pole Auger pole holes in Sept. May placement 2013 2014 Place wood poles, backfill, and Place wood poles in augured holes, backfill Sept. May anchor as needed around pole and anchor, as needed 2013 2014 AEA13-006 Grant Application Page 10 of 32 7/3//2012 ENERGY AUTHORITY Renewable Energy Fund Round 6 Grant Application Install cross -arms, Install appurtenances on poles, i.e. cross - transformers, and string arms, transformers, conductor, neutral, etc. May July conductor and neutral 2014 2014 Test and begin hook-ups Test the line and beginning hooking up Augus-F August customers along the project ROW 2014 2014 COFFMAN COVE RENEWABLE ENERGY INTERTIE PROJECT DESIGN AND CONSTRUCTION SCHEDULE 2012 2013 2014 2015 Q1 Q2 Q3 04 Q1 Q2 Q3 04 Q1 Q2 Q3 Q4 Q1 Q2 03 Q4 PHASE I: Reconnassaince Reconnaissance fcom ,.......... _.:. PHASE II: Resource Assement/Feasibility AnalysislConceptuat Resource Assessment Feasibility & Conceptual Design PHASE III: Final Design and Permitting Permitting . Final Design .... ,, - PHASE IV: Construction Order Materials Mobilization ..., Brushing or Clearing ROW . Survey and Flag Routes Auger Hales, Place Poles String Conductor Install Neutral and Transformers Testing and begin hook-ups 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: Misty 1-itzpatricK — Uity of Uottman cove Administrator The City of Coffman Cove administrative staff has experience administering grants, handling four simultaneous grants totaling $3 million in recent years. The City will administer the grant funds to the local utility APC, who will perform the work. APC has experience in designing, permitting, and installing electrical infrastructure from distribution lines to hydroelectric projects. AEA13-006 Grant Application Page 11 of 32 7/3/12012 Renewable Energy Fund Round 6 Grant Application MMMD ENERGY AUTHORMY APC has been providing electrical service to 26 communities in Alaska since 1957 and to POW since 1962. Contractor: Alaska Power Company (APC) Proiect Manager: Greg Mickelson — VP -Operations for APC KEY STAFF EXPERIENCE The City of Coffman Cove administrative staff will administer the grant funds. APC will perform the work. The key personnel that will conduct the project construction for APC are identified below, along with a brief summary of each individual's qualifications, and experience. Detailed resumes can be provided on request. Grant Administrator: Misty Fitzpatrick (City) Mrs. Fitzpatrick has been the City of Coffman Cove administrator for 1 year and has been administering grant funding for 1 year. Mr. Heatley is the line foreman of APC's for Prince of Wales Island and has more than ?? years of experience in the power industry. Mr. Heatley will oversee the scheduling and budget compliance for the proposed work, as well as daily construction activity as described in the Project Description. 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: Greg Mickelson (APC) Mr. Mickelson is AFC's Vice President of Power Operations for all of APC, and has more than 36 years of experience working on a variety of projects to provide quality power service to APC's isolated Alaskan communities. His experience also includes hydroelectric project feasibility studies, permitting, design, construction, operation and maintenance engineering. Mr. Mickelson has also performed power plant construction, high voltage transmission lines, substations, switch yards and distribution line work, including designing and installation of single and three phase distribution lines and diesel generator maintenance. Mr. Mickelson has also overseen $5-8M Annual Capital Budgets and has managed grant funding for many capital improvements. For this project, Mr. Mickelson will provide input into the preliminary designs, review all work products for consistency and accuracy, and supervise grant expenditures. Grant Use 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. AEA13-006 Grant Application Page 12 of 32 713//2012 Renewable Energy Fund Round 6 D Grant Application ENER(3YAUTHon,-,Y 3.4 Project Communications Discuss how you plan to monitor the project and keepthe Authority. informed of the status. Please provide an alternative contact person and their contact information. 11Ie Uny c! Conmun Gove has an agreement witn the iocal u1111ty, APC;, that they will perform all the work described in this application. APC has agreed to the following reporting plan. 1. APC through the Grantee agrees that it shall submit, in writing to AEA, and that it shall obtain prior written approval by AEA for any material change to the objectives, activities, or scope of the Grant Project, including any material change to the project design, project management, budget, or communities to be served as set forth by the Grantee in its application. 2. APC through the Grantee agrees that it shall comply with all applicable Federal statutes, regulations, and requirements that govern the application, acceptance, and use of Federal Grant funds for this Grant Project. 3. APC through the Grantee agrees to carry out the project construction activities as described in the project proposal and environmental report with any subsequent amendments or revisions as approved by AEA. 4. APC through the Grantee agrees to obtain all necessary permits for construction and operation of the grant facilities and shall incorporate any proposed mitigation into the project to offset potential impacts to the environment or cultural resources is so advised by an agency. 5. APC through the Grantee agrees to provide a report on the expenditure of Grant Funds in quarterly financial reports and progress reports during project construction. Quarterly reports will be due 30 days from the end of each quarter ending March 31, June 30, September 30, and December 31 of each year. The last quarterly report of each calendar year shall serve as the project annual report. The quarterly report filed after construction has been completed and all project construction expenditures finalized shall serve as the final construction expenditure report. 6. APC through the Grantee agrees to provide bonding and insurance coverage for the project during construction, as consisted with an Alaska utility. 7. APC through the Grantee agrees to request advances in writing from AEA using a standard AEA form, to be specified by the grant award. 8. APC through the Grantee agrees to submit to AEA a copy of its audited Financial Statement and Annual Report prepared in the ordinary course of business for any year in which it expends $500,000 or more in Grant Funds. 3.5 Project Risk Discuss potential problems and how you would address there. i here is no risk associated witn tnis project. AEA13-006 Grant Application Page 13 of 32 7/3//2012 Renewable Energy Fund Round fi Grant Application ENERGY AUTHORITY 4.1 Proposed Energy Resource - Describe the potential extentiamount'of the energy resource that is available.: Discuss the pros and cons of your proposed energy resource vsother 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. ' This project is to intertie un-served lots within the City of Coffman Cove (91) with existing hydropower generation. There are currently two hydropower projects in operation on POW. 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: here are two nyoroeieciric projects currently on the Nuw grid: Black Bear Lake Hydro (4.5 MW) storage mode of operation; • South Fork Hydra (2.0 MW) run -of -river mode of operation. There are fourteen diesel generators on the POW grid totaling 9,780 kVa of generation capacity. These generators are widely dispersed to almost all the communities on the POW grid for backup generation. Under construction is the 5.0 MW Reynolds Creek Hydroelectric Project There will be ample energy for extending the distribution system into un-served areas of Coffman Cove. 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. myaropower is the main source of energy on the FUW grid (Black Bear Lake Hydro and South Fork Hydro), with diesel generation needed to meet peak loads up to 6 MWh annually. There is backup diesel generation in about every community APC serves on the island left over from before they were intertied with today's grid; including Coffman Cove. This project would only add approximately 1.75 miles of distribution line to the system; which would not greatly increase the overall size of the islands grid and therefore have little impact on maintenance costs. This additional load would also have little impact on the frequency of maintenance of the diesel generators. The Project would impact the existing self -generation occurring on these un-served lots by eliminating this form of energy generation; eliminating the use of noisy, air polluting gas and diesel generators. AEA13-006 Grant Application Page 14 of 32 7/31/2012 Renewable Energy Fund Round 6 - Grant Application ENERGY AUTHORITY 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The residents on these lots currently operate their homes primarily on gas generators with some using diesel; the current cost of household fuel (gas) for self -generation on POW is $4.50/gal. Residents may choose less expensive gas generators, but for our analysis we will choose a cost of $999.00. The manufacturer for this analysis is Honda, and their website states the 5000 watt generator will operate on a full tank, 6.2 gallons, for up to 11.2 hours at 50% load. If we assume a little less efficiency, say 10 hours on 6.2 gallons with the cost of fuel at $4.50/gal., the cost per day would be $66.96/24-hr. period, times a 30 day month equals $2,008/mo. However, most homeowners don't run their generators 24 hrs per day. They typically have some type of battery system they charge during the day so they have lights in the evening. Freezers can go without power for over a day without losing anything as long as they keep the doors closed. Most people don't run their generators more than 12 to 14 hours a day. So if we use the premise that the generation is being run 14 hours per day, this equates to $39.068 per day spent on fuel. This would equate to $1,172.00 for a 30-day month for just the fuel; while operating at 50% load. If a generator is purchased at $999.00 and we assume it is replaced every 2.5 years,9 the cost of fuel over this timeframe would be $35,160.00,10 for a total cost of $36,159.00/per 2.5 years. This is without replacement parts, oil, filters, repairs, and other issues that may arise impacting the cost of self -generation as well as a stable fuel cost which may go up or down, but is more likely to rise. Considering the modest incomes Coffman Cove has, $14,000 a year just for fuel is a significant part of their household budget; see table below. If we compare this cost with what those on the grid are paying, i.e. $112.00/mo versus $1,172.00/mo., we see that the self -generating households have a much higher electric rate. If we divide the grid average monthly bill of $112.00 into the self-gen average monthly cost $1,172.00, we determine that the self-gen household pay 10.46 times more a month. Multiple 10.46 times the grid electric rate of $0.2243 = $2.35/kWh for those that self -generate. Clearly these households need relief in this isolate, rural area of Alaska from the high cost associated with self -generating to meet their daily needs. We also asked the local electricity provider on Prince of Wales Island (POW), Alaska Power Company (APC), to describe what they spend in other communities near us that are still on diesel generation. APC states that the community of Naukati currently has an electric rate of $0.5866/kWh." Naukati is supplied by diesel generators. APC fuel cost in July 2012 to fill their Naukati fuel tank was $4.10/gal. The utilization of fossil fuel for electricity is expensive. a 6.2 gallons x $4.50/gal. = $27.90 - 10 (number of hours for tank of gas) = $2.79/per hour x 14/hrs = 39.06; remember, this is for only running at 50%. 9 The cost of replacement is cheaper than rebuilding. io Fuel for one year would equal $14,064, 13 Rate per kilowatt hour ($0.2312) + energy charge ($0.3554) = $0.5866/kWh AEA13-006 Grant Application Page 15 of 32 7/3//2012 COFFMAN COVE MEDIAN HOUSEHOLD INCOME (Source: American Fact Finder July 2012) Subject _:' ',. ;.: - ,...: ..._ .Gdlffnbn Cave city, Alaska - - -.-`Nousabalds _--:.. Fam11105 Mande 'Pie iarollles -�,,MarglnofErmr Margln olErtor Estta_ ES1111W1a Margin o[ElTar ': st1 in to €c al 46 J 24 i4 _._ tf t4 9 ..... !fi 4D7= +11DOD _ 9bi +r-4Q2 99. .r.72.9 : Qbye +r-f63.Q.: ..-Q.9 <.: S75.4CQio524.499 .. . - ......... ... . .9:r ..,., - +`_-i. . 1_4r. i iQ4 S�1.9 . ... i9S25.@:Oio ,145,? 14n9S -2726,.95 .._ SOW o 54699 5`9.9Ckmj742y9 : GIA - ++-4QE : 06}, -_.- 17 0 ,. ..-_Q9s ., ... 11QQ.6. _.,. _.DAB_.,., `tG,9GQ is 546.999 -- 714. +1�46:7 �6ixi - i593.� - :Q9--.•-� .. .... 9 04� u.9s 5209.CQQ cr fraa _ 4.6T +1.30.2 '. q0°� „rr.729 +7.72.9 D.On .. r1-166.D 0.0% R'eeEian incame{doi:lrs} _, ....... _.. .... 22,945' ._. _ l-6.31T ... .. SG G63 ..... i37,i62 8 625 ar-71,202 2D.455.._. NcnlraiNrw fd9tsrSS 26.146 '-11 19 - .... .... 5662t i ........ ,r-ifi,i to _... N ._ _. N € - 1Lt25 PERCENT WPOTEp .... 't�y.�SOt�ki irttO++e in lh ¢h>I 12 mandn ..__._ .. :.. 00 fx) (x) Fa ly in the past l2 u,�Liu _. :.. NCNS!�Snx i,'inCf4110 in Me pasi 12 nmmrt ............. .. jxj ..... ... ixf ...._ Ix1. . ixy (x) .:.. ix) a.W4 The majority of Coffman Cove households (45.7%) earn in the range of $15,000 — $24,999 annually. The median household income for Coffman Cove is $22,045, which is only 34% of the median household income for the State of Alaska at $64,576. Placing these self - generating households on the POW grid will reduced their electric rates to Coffman's grid rate of $0.2243/kW h. 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 Uescrlpilon This Project is a line extension to reach un-served households with renewable energy from two existing hydroelectric projects, Black Bear Lake Hydro and South Fork Hydra; both are operated by BBL Hydro, Inc., a subsidiary of AP&T. The project cost to extend the primary power line is estimated at $175,000 and would service approximately 1.75 miles of road within the city limits of Coffman Cove. This grant would equate to a cost of approximately $2,000 per lot; based on the total grant divided by the number of lots (91). AEA13-006 Grant Application Page 16 of 32 7/3//2012 Renewable Energy Fund Round 6 r Grant Application WEED ENERGY AUTHO RFFY Only areas marked in yellow will have a distribution line extension from the purple area r } T CITY OF COFFMAN COVE, ALASKA q A -1 r S Ay. E� ---• _. .. .....-.__._. ..,.. It-- -) . .'.�� -Ri° f-.i;�l_.. .... ...,.-.-cF,-1� IIIIII T�A�- A Only areas marked in yellow will have a ,distribution line extension, LOP- 2. A OWN VIEW SUBOSVISI�Y�.. 4... _ h x�G�tlD CITY OF COFF N COVE. ALASKA`� The project would involve the installation of a single-phase 12.5 W distribution line on existing roads only. The Fiqures above show the existinq roads in vellow that do not currently AEA13-006 Grant Application Page 17 of 32 7/31/2012 Renewable Energy Fund Round 6 UluGMMD i� Grant Application ENERGYAUiHORMY have distribution lines; the yellow are the locations for this projects distribution lines. The purple roads are where the existing distribution infrastructure is located. The project will require little bAEAhing. The route will be surveyed and marked with flagging to indicate pole locations. A digger -derrick truck would auger in 18-inch diameter holes in the ground down to approximately 8-10 feet. Excavated soil would be kept adjacent to the hole for backfilling. The wood pole would almost immediately be placed in the hole and using a backhoe, would backfill and tamp -down the soil around the poles base. This procedure will be repeated at each pole location. A three-man team will conduct this activity. Anchors with guy - wire may be use on corners or in areas of surface or near surface bedrock. The digger -derrick truck would also be used for anchor placement. Wood cross -arms and other appurtenances will be added to the poles next before the 1/0 ACSR single-phase 12.5 kV conductor is pulled through and attached to the insulators at each pole. Using regular line -stringing guidelines, ropes would be pulled from a trailer through stringing blocks at each pole that would be placed at the same elevation as the final placement of the conductor. These ropes would be pulled to a wire reel trailer and connected with the conductor. The ropes would then be pulled back through the stringing blocks to the rope trailer, one at a time. The wire reel trailer would keep tension on the conductor while it is pulled so that the conductor does not sag. A 1/0 ACSR neutral conductor will also be strung between each pole. Transformers will also be attached at this time. All construction will take place within the utility right-of-way in the Coffman Cove city limits. Optimum installed capacity This is not a new energy project, but a line extension to get renewable energy to un- served locations. The conductor will be 12.5 kV. Homes will be connected off of this line, but only the main distribution line is being funded by this grant request. Anticipated capacity factor NIA Anticipated annual generation NIA Anticipated barriers No barriers are anticipated due to local support, City of Coffman Cove support, previously disturbed locations (i.e. roads, clearcutting, home building), and the local utility APC capable and willing to install this infrastructure. Basic integration concept The project will intertie with the existing distribution grid within the City of Coffman Cove. Delivery methods The Project will deliver power from the hydro projects via the existing APC 34.5 kV transmission line to the City of Coffman Cove and its 12.5 kV distribution 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 whole utility right-of-way is within the City of Coffman Cove, which will be used to extend the distribution system. AEA13-006 Grant Application Page 18 of 32 7/3//2012 Renewable Energy Fund Round 6 4MMUGiant Application ENERGYAUTHORFY 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 In the City of Coffman Cove's discussions with APC they anticipate that the State Historic Preservation Officer (SHPO) may request that an archaeologist be present for the power pole bores to see if anything of interest is excavated. APC will be applying to SHPO for their review in the next few months. Though no streams are crossed by construction, consultation will take place with the Alaska Department of Fish and Game (ADF&G) in the next few months by APC. No permit is expected to be required. U.S. Fish & Wildlife Service will be consulted by APC to determine if there are any concerns about raptors. APC does not anticipate there will be any concerns as the projects single-phase design and the neutral will be well spaced to prevent electrocutions. In addition, the poles will generally be lower than the surrounding trees, taking them out of flight paths and are less likely to be used as perches; although there are some clearcuts adjacent to some portions of the project. All land used to place the projects infrastructure will be on city land. No regulatory concerns are anticipated. 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 would involve the installation of a single-phase 12.5 kV distribution line along existing roads only. The enclosed maps show existing roads in yellow and these are the locations that the distribution lines would be extended to from the areas marked in purple where the distribution grid currently exists. The project will initially require a little bAEAhing along portions of the right-of-way. The route will next be surveyed and marked with flagging to indicate pole locations. A digger -derrick truck would auger in 18-inch diameter holes in the ground down 8 to 14 feet. Excavated soil would be kept adjacent to the hole for immediate backfilling. The wood pole would almost immediately be placed in the hole and a backhoe would backfill and tamp -down the soil around the poles base. This procedure will be repeated at each pole location. A three-man team will conduct this activity. Anchors with guy -wire may be use on corners or in areas of surface or near surface bedrock. The digger -derrick truck would also be used for anchor placement. Wood cross -arms and other appurtenances will be added to the poles next before the 1/0 ACSR single- phase 12.5 kV conductor is pulled through and attached to the insulators at each pole. Using regular line -stringing guidelines, ropes would be pulled from a trailer through stringing blocks at each pole that would be placed at the same elevation as the final placement of the conductor. These ropes would be pulled to a wire reel trailer and connected with the conductor. The ropes AEA13-006 Grant Application Page 19 of 32 7/31/2012 Renewable Energy Fund Round 6 { Grant Application GERED ENERGYA}THORITY would then be pulled back through the stringing blocks to the rope trailer, one at a time. The wire reel trailer would keep tension on the conductor while it is pulled so that the conductor does not sag. A 1/0 ACSR neutral conductor will also be strung between each pole. Transformers will also be attached at this time. All construction will take place within the utility right-of-way in the Coffman Cove city limits. It is expected to take up to 6 months to install all the poles and conductor and completing the project for testing and startup. Construction standards are to meet N.E.S.C. requirements and the R.U.S. standards. The utility easement is expected to be 15' either side of the line for a total of 30' ROW. 0 Threatened or Endangered species Because the rights -of -way is already cleared of trees, the area has been altered by development and clearcut's, and the power line poles will be in lower than tree heights, impacts to raptors or any other species will be minimal at best. • Habitat issues Due to the existing disturbance, i.e. roads, homes, clearcut's, and that the project features will be within this previous disturbance, no habitat issues should exist. The City of Coffman will have ADF&G and USF&WS do an analysis of potential impacts prior to the beginning of construction. • Wetlands and other protected areas No wetlands are present in the project rights -of -way. No streams cross the projects rights -of - way. None of the project is within a floodplain. All project features will be located on uplands. There is only one creek at the north end that drains near the project, but will not pose a threat to project infrastructure in a flood. • Archaeological and historical resources An important archaeological site (prehistoric midden) is identified at Coffman Cove. Unfortunately, logging camp developments were placed within the site. Portions of this site have been conveyed to the City of Coffman Cove, and the state has retained the southern part.12 The project does not cross or come near this archaeological site and will thus have no impact. Consultation with SHPO will occur in the next few months. SHPO may request that an archaeologist be present incase any subsurface artifacts are excavated while auguring pole locations. • Land development constraints There are no land development constraints because the City of Coffman owns the land and will allow APC to install the distribution line infrastructure. • Telecommunications interfe This low of voltage (12.5 kV) does not affect telecommunications. Not until voltages of approximately 69 kV is there the potential for interference. • Aviation considerations The projects infrastructure will be lower than most trees in the area, providing no impacts to aviation. Also, there is no nearby airport. lz Alaska Department of Natural Resources. Prince of Wales Island Area Plan. Chapter 3, Page 81. Revised October 1998. AEA13-006 Grant Application Page 20 of 32 7/3//2012 Renewable Energy Fund Round 6 LAMED �'Or, Grant Application 4MWD ENERGYAUTHQRITY • Visual, aesthetics impacts Because the projects infrastructure will be wood poles in areas of previous activity (showing past and present clearing and construction) as well as the existing road infrastructure, visual or aesthetic impacts will be minimal. • Identify and discuss other potential barriers Given the level of support by our community members to get electricity into these lots, there are no other potential barriers to this project. 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 Total anticipated project cost and cost for this phase is $175,000, • Requested grant funding The requested grant funding total is $175,000. • Applicant matching funds — loans, capital contributions, in -kind The City of Coffman Cove cannot provide matching funds because we have no revenue base to raise funds. However, in -kind contributions will be made by the local utility, APC, by providing a credit of $4,000 for the first 9 customers to hook up to the distribution line. Total in -kind contribution will be $36,000. • Identification of other funding sources No other funding sources are currently available. • Projected capital cost of proposed renewable energy system $175,000 (capital cost is assumed to be the cost of Phase IV — Permitting / Construction • Projected development cost of proposed renewable energy system $180,000 (development cost is assumed to be the total cost of Phases I, 11, and 111). AEA13-006 Grant Application Page 21 of 32 7/3l/2012 Renewable Energy Fund Round 6 ONE)� Grant Application 4=WD ENERGY AUTHORITY 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 APL's existing revenue. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential powerbuyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded project Iv//A; Art. Is the exisung power proviaer Tor cols community. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability The hydropower resources to be used are available 365 days per year Unit depends on project type: (e.g.,' windspeed',:,hydropower output'. biorhasss;fuel) Existing Energy Generation and Usage a) Basic configuration (if system' is part of the Railbelt'3 grid, leave this section blank) i. Number of generators/boilers/other Coffman Cove powerplant has three generators ii. Rated capacity of generators/boilers/other CAT 3406B, 175 kW, - CAT 3412, 330 kW, CAT 3412, 380 M iii. Generator/boilers/other ype iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other Coffman Coves plant efficiency: 13.0875 gal/kWh b) Annual O&M cost. (if system is part of the Pail belt grid, leave this section blank) - i. Annual.O&M cost for labor $1,250 ii. Annual O&M cost for non-labor..,:,N/A c) Annual electricity.' production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, jeave this section blank) 13 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 flower. AEA13-006 Grant Application Page 22 of 32 7/3//2012 Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable. capacity This is not a new renewable energy project, but a (Wind, Hydro!" Biomass; other) distribution line to get renewable energy to un-served [kW or MMBtulhr] households. b) Proposed annual electricity or heat production (file in as applicable) L Electricity [kWh] NIA; this project will not generate power, but distribute power from two existing hydro projects ii.-Heat [MMBtuj c) Proposed annual fuel usage (f HL in as "applicable):' i. Propane [gal or MMBtu] ii. Coal [tons or MIIlIBtu] iii. Wood [cords, green tons; dry tons] iv. "Other Project Cost $150,000 (cost of construction) $25,000 (pre -construction; i.e. permits, final design) $1, 250 NIA Project Benefits AEA13-006 Grant Application Page 23 of 32 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY a) ..Amount of fuel displaced for i. Electricity $13,905Jannually per household (self -generation households) 1L Heat ill.: Transportation b) :"Current price of displaced fuel ` $4.50/gal c) Othei economic benefits It should also be noted that because of our poverty level, it is rare that individuals can afford a generator that is as efficient as the example used here. Many are relying on less efficient gas generators and spend a whole lot more than $1,172 per .. month on gas. This project will electrify property within Coffman Cove that currently does not have electricity. The lack of electricity forces current home owners to self -generate using expensive gas and diesel. Gaining electricity for these 91 lots (most of which are now privately owned) will likely lead to more home building. This will provide some temporary local employment, purchasing of materials, and potentially provide future financial benefits to the City. Lower electric rates and electricity from the local micro -grid may stimulate economic development within the City; as an example, a three story, 7000 square foot lodging facility is under construction on one of the lots but the owner will not be able to open for business until access to affordable power is established. As previously mentioned, Coffman Cove was intertied with the islands renewable energy grid in 2011 by APC; now the distribution line needs expansion. d)' Alaska public benefits In addition, insurance companies will not insure homes that .. use wood as their only source of heat because it can be dangerous. Most economically friendly and efficient sources of heat require safe and reliable electricity. Using gas and diesel for the generation of electricity puts hydrocarbons or Green House Gases (GHG) into the atmosphere, and also puts particulate matter into the air within the community. Having electricity from a certified electric grid will improve public safety by reducing or eliminating the use of fossil fuels that could lead to fires, spills, soil contamination, and air pollution; a gallon of diesel fuel produces about 20 lbs of CO2, a greenhouse gas. The next largest pollutant is NOx at around 0.5 Ibs per gallon of fuel burned. Connection to a certified electric grid requires homes to have certified electrical wiring, improving public safety. Homes that do not have certified electrical wiring will have to be upgraded, ensuring their safety; this is a common issue for homes off the grid. The cost for electricity will be lower for these new customers than generating their own electricity. They will also benefit from the renewable energy they receive because there will be no diesel generation supplying their needs in the City of_ Coffman AEA13-006 Grant Application Page 24 of 32 713H2012 Renewable Energy Fund Round 6 GMID Grant Applicationi4UNS-L-)ENERGYAUTHORMY Cove (eliminates air and noise pollution); except during maintenance of the hydroelectric projects or if there is an outage that isolates Coffman Cove from the hydroelectric projects. Power Purchase/Sales Price a) Price'for power purchase/sale; Price for power purchase will be reduced from the estimated self -generation price of gas to the current renewable energy price in Coffman Cove of $0.2243/kWh. 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? AEA13-006 Grant Application Page 25 of 32 7/3//2012 This project addresses the energy needs of 91 unserved lots in Coffman Cove that are or would rely on fossil fuels to self -generate electricity. By offering less expensive renewable energy from Prince of Wales Islands two hydroelectric projects, their costs will be reduced from an estimated $1,172.00 per month (fuel cost) to the average Coffman Cove monthly residential bill of $112,43 (based on the use of 500 kWh). Since APC renewable energy rate is $0.2243/kWh, we can calculate the self -generation rate is approximately $2.35/kWh. Both figures show a significant savings by those connected to the renewable energy micro -grid versus those using self-generation.14 However, with less expensive rates the use of electricity per household may go up over their self -generation usage. The self -generating households will avoid the future expense of purchasing large quantities of fuel (current island rate is $4.50/gallon for gas; $4.13/gallon for diesel), particularly to get the least expensive rate (must buy 300 or more gallons at a time to receive least expensive rate). In addition, the price of fuel is constantly fluctuating and in general is on the rise. These households will avoid future fuel price increases as well. For existing households with fuel tanks of up to 300 gallons, or more, they will have reduced the risk of spills, leaks, and contamination to their properties. For lot owners yet to build homes, they will not have to install fuel tanks on their property with the potential for spills and leaks as well. These are not only avoided costs, but will make the area more attractive to development. Reliability will be enhanced because these lots will be connected to the Coffman Cove distribution grid and the islands renewable energy micro -grid. The micro -grid rarely has outages and they are of short duration; less than 15 minutes. The Coffman Cove distribution grid can also be energized by the APC backup diesel generators within the city limits if the island micro - grid has an outage. This enhances the reliability for these lots whereas self -generation is unlikely to have a redundant system for backup and outages may occur until maintenance or replacement can take place. The economic benefits from connecting these lots to the Coffman Cove distribution grid and the islands renewable energy micro -grid are: • Lower electric rates • More funds available for other necessities 14 It should also be noted that because of our poverty level, it is rare that individuals can afford a generator that is as efficient as the example used here; many are relying on less efficient gas generators and spend a lot more than the average used here. AEA13-006 Grant Application Page 26 of 32 7/3//2012 Renewable Energy Fund Round 6 ., ME) 11%€ -' - Grant Application ENERGYAUrHORMY Will stimulate house building on undeveloped lots; which will provide short-term jobs and the purchase of construction materials on the island City will benefit from more residents that will help support small businesses More in -pocket funds to spend at local community businesses The social benefits from connecting these lots to the Coffman Cove distribution grid and the islands renewable energy micro -grid are: • Less stress about when to use electricity • Less stress from worrying about the fluctuating fuel prices and when to buy fuel • Less stress from worrying about when to buy and how much to spend on a replacement generator • Regular use of electricity for radio, TV, and computers to be informed, communicate, to access on-line schools, and to make on-line purchases entertained, to The projected benefits of connecting these lots to the renewable energy micro -grid on Prince of Wales Island can be measured by their use of electricity and whether new home building occurs. Public feedback from the affected community members is that they really want this less expensive electricity and the sooner the better. However, this is a "Distressed Community" and the number of customers cannot support by themselves the cost of this kind of infrastructure, nor can the local utility APC because the cost recovery is too great unless grant funding are used. APC is willing to pass on a credit to the first 9 customers hooked up, which at $4,000 per hookup would equate to $36,000 as an in -kind match. • 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 AEA13-006 Grant Application Page 27 of 32 713//2012 Renewable Energy Fund Round 6 CNN E) Grant Application ENERGY ALrrHORFFY • Proposed business structure(s) and concepts that may be considered. The existing business structure of APC will be used as this is not new to APC. • How you propose to finance the maintenance and operations for the life of the project APC will finance O&M through its revenue; current practice for APC. • Identification of operational issues that could arise. APC does not believe there will be any out of the ordinary operational issues for this location. • A description of operational costs including on -going support for any back-up or existing systems that may be require to continue operation The operational costs for approximately 1.75 miles of 12.5 kV distribution line are negligible when compared to the extensive network that APC has established on Prince of Wales Island that provides renewable energy to almost every community. • Commitment to reporting the savings and benefits APC will, using self -generation costs in their analysis, report on the savings and benefits in the final project report to the City of Coffman Cove, who will file it with AEA. The City of Coffman Cove has been in discussion with the local utility, APC, about connecting these 91 lots. Discussions have revolved around the expense to extend the existing micro - renewable energy grid, land ownership of the rights -of -way, and getting letters of support from those who will benefit from this project. APC for its part did a recon-analysis and preliminary design to determine what materials will be needed and the man-hours required for the construction phase, as well as an analysis of the environmental impacts. With this information, APC was able to provide the City a cost estimate for the project. No other grant funding has been received for this project. AEA13-006 Grant Application Page 28 of 32 713//2012 Renewable Energy Fund Round S r � Grant Application ENERGY AUTHORITY As indicated in Section 3.2: Project Schedule and Milestones, APC would initiate final design, environmental review, and material purchases as soon as we notify them the grant has been awarded, which we are assuming would be about July 1, 2013. According to APC schedule, construction would start shortly thereafter and be finished within a year. 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 fromthis project. There is no opposition to this project within the City of Coffman Cove. Letters of support are included at the end of this application, .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, grid additional investments you will'make'as an applilmnt APC has spent roughly $5,000 in the reconnaissance and preliminary design phase. The City of Coffman Cove cannot afford to provide any of its own financial resources because we have no revenue base; i.e. no taxes, etc. Total grant funding needed to construct this project is $175,000 ($25,000 for permitting and final design). APC has stated they will provide an additional $36,000 in matching funds by providing a hook-up credit to the first nine customers. We request that this be considered as Coffman Cove's matching funds. 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 @aidea.org. ,` -. - - E E E ji i- Eli t€ Nia0 NO T3®slgn and Permuting 33 y�}]�V!_ Y� /� nt dina Et 3 j3 lyy � d E .yy.•�[sK^ 3i G�i7[7LG� �1i11d5 E E E 1 € Phase. Gtkrttpletion Grattf 3 Matfi�`3,, - iY�_i�G}�sh![n{�y! ^tTAt_S Milstnr►a ter iask late Fu�tds l�rsds E 1 iilEitliiYdar�ll Gratrt her, } 3 E. - - _ fyy�{y.7 s yy Project scoping and NIA; APC is contractor solicitation for contractor NIA $ $ planning and design Permit applications (as July 2013 $3,000 $ As described $3,000 needed)above Final environmental assessment and mitigation Aug. 31, 2013 $9,000 $ $9,000 cans Resolution of land use, right NIA; no disputes $ $ $ of way issues Permit approvals Au .31,2013 $10.500 $ $10,500 AEA13-006 Grant Application Page 29 of 32 7/3//2012 Renewable Energy Fund Round 6 Grant Application ' ENERGYAUTHCIFtITY Final system design Aug. 2013 $2,500 $ $2 500 Engineers cost estimate Aug. 2013 $ $ $ Updated economic and financial analysis Already completed $ $ $ TOTALS $ $ $ 25,000 Budget Categories. Direct Labor & Benefits $8,500 $ $8,500 Travel & Per Diem $1,500 $ $1,500 Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $15,000 $ $15,000 Construction Services $ $ $ Other $ $ TOTALS $25,000 $ $25.600 Confirmation that all design and feasibility requirements are complete. Aug. 31, 2013 $500 $ $500 Completion of bid documents NIA $ $ $ Construction July —Au . 2013 $142,250 $ $142,250 Integration and testing Aug —Sept 2013 $5,000 $ $5,000 Final Acceptance and Commissioning$ Sept. — 2013 $500 $ 50 0 Operations Reporting.$1,750 $ $1,750 TOTALS $150.000 $ $150,000 'Budget Categories: Direct Labor & Benefits $58,000 $ $58,000 Travel & Per Diem $12,000 $ $12,000 Equipment $20,000 $ $20,000 Materials & Supplies $35,000 $ $35,000 Contractual Services $15,000 $ $15,000 Construction Services $10,000 $ $10,000 Other $ $ $ TOTALS $150,000 $ $150,000 (15) The $36,000 will be a credit applied to the first nine customer gook -ups, after construction. is AEA13-006 Grant Application Page 30 of 32 7/3//2012 Renewable Energy Fund Round G = a Grant Application =SEED ENERGY AUTHOWY SECTION 10 — AUTHORIZED SIGNERS FORM Community/Grantee Name: City of Coffman Cove Regular Election is held: jDate: j� p � 1 cU 1c�L C [ (i[�nr1ll 1lll 4 �.�Y1i v i Authorized Grant Sianarfsl: Printed Name Title Term Signature Misty Fitzpatrick City Administrator I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature b'k-1 3-L,L(�9 u i Grantee Contact Information: Mailing Address: Phone Number: qCi` Z2:3) Fax Number: E-mail Address: C Federal Tax ID #: `015. . Please submit an updated form whenever there is a change to the above information. AEA13-006 Grant Application Page 31 of 32 7/3//2012 Renewable Energy Fund Round 6 Grant Application 411111WD ENERGY AUTHORITY SECTION 11.`- ADDITIONAL DOCUMENTATION`AND CERTIFICATION >SUBM[TTHE.FOLLOWING DOCUMENTS. WITH 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 Misty Fitzpatrick Signature Title City Administrator Date AEA13-006 Grant Application Page 32 of 32 7/3/12012 • Page 2 August 29, 2012 TO: City of Coffman Cove 102 Denali Coffman Cove; Alaska 99918 FROM: Mike and Julie Cowan Lot 15 Alaska Cedar Court Coffman Cove, Alaska 99918 775-720-9004 RE: Power line extension I wanted to take this opportunity to express my concern over the status of the AP&T power line extension out the 3030 road towards Luck Lake. My wife and l have owned a home on Alaska Cedar Court for the last several years. The house was constructed with connection to grid power in mind and is ready for the meter. I have three main reasons for connecting to the grid. The reasons include convenience, economics and most importantly safety. There are currently 5 houses on my street with a 6th one ready to be constructed when power is available. All of us are ready to connect. As a matter of convenience there is no doubt it would be easier to turn on the lights at night and know they will come on. It would be a great relief to not worry about someone running the microwave while the well pump is on. The list of difficulties goes on and on. One of the most frustrating things about our house is the constant need to be energy police for fear the inverter will turn off in the middle of the night or during dinner. In the summer time we have on average 10 people in our 3 bedroom house placing pressure on the generator, inverter, and batteries. One of the most'difficult parts of not being connected to the grid is the constant economic drain of an an off grid system. The generator runs on average 14 hours a day providing the current needs of the house and charging the batteries for the remaining time. Fuel is very expensive and we are required to store a great deal of it. Unfortunately it has become necessary to replace the batteries. I am currently running 8 lifeline batteries in the 8D size at a cost of $600 each. I would much rather connect to the grid than invest $5000 in new batteries tying me to that system. We replaced a failed inverter two summers ago at a cost of over $2000 with a catastrophic failure again this year. Batteries, generators and inverters are simply too expensive when regular services are so close. Additionally we would like to place our home with one of the local property managers as a source of extra income. This would provide income to us as well as the residents of Coffman Cove from the additional tourist dollars. This is simply not possible with an of grid system from a mechanical aptitude and safety standpoint. Safety as l mentioned is one of my primary concerns with my off grid system. We have an all wood constructed home with cedar siding like everyone else. The system for technical reasons is located within a few feet of the home and provides 100% of the July 29, 2012 re: What Grid Power Would Mean to Us )ear Misty, We are writing this letter in support of installing extended grid power in Coffman Cove: We live off.the grid in the Clarence Strait Subdivision, an area that would benefit from electrical service extension. Currently we charge our 24 volt battery system with generators. Below are some anecdotal examples of how our life has been affected by living off the grid and what grid power would mean to us: Energy Audit -Before we moved into the cabin, we did an energy audit of the electrical use we had when living on the grid (see attached). We had to eliminate several appliances to meet our 2000 amp limit on our generator charged battery system. As a family we had to become familiar with the amp requirements of every appliance so as not to overload the system. Grid power would mean not calculating amps in our head every time we turn something on. Teenage Hair- Our teenage daughter would have to go by four -wheeler to her friend's house "on -the -grid" to use her blow dryer and straightening. iron as these appliances would instantly overload the system. Despite driving through wind and rain and putting a helmut on her fresh hair style she would still go through this effort. Grid power would allow a teenager to stay home and do her hair. Frozen pantry -With grid power we could Install a back up heater (ie Toyo) for times when we would be away from the cabin for more than a day. Once our wood stove goes out, our house freezes. In the past we have lost house plants, foods, and our cat. Grid power .would mean a worry free winter vacation! Heat Tape -We loose water several times each winter because the water lines freeze. We have to bring LOTS of buckets of water up from the creek and shower at the local school. Grid power would mean being able to have liquid water -not ice -in the winter. Power Tanis -We built our house with the power that was available to us through the generators. However, there are some tools that we just can't power with the energy we have. For example Jonathan is a plumberlpipefitter. He can't ,-un his welder down here. Grid power would mean more employment opportunities. Peace and Quiet -As 1 write this letter, the creek in front of our house is rushing at a high level but we wouldn't even know it because the generator makes so much noise. Grid power would mean safety- hearing someone come down the driveway, high winds in the trees, bears on the gravel outside, the creek rushing and the ocean out front. True Sine Wave- We have had to replace many (expensive) appliances because they don't operate with Modified Slne Waves produced by our inverter system. Grid power would mean a return to True Sine Waves and we could use our KitchenAide mixer, high efficiency washer/dryer, ceiling fan, oven, anything with a digital clock, etc. again. Grid power would mean the end of blown out appliances. Water pump- Grid power would mean we could have a pressurized water system. Which leads to the best thing of all... Dishwasher-besidos me: If you need anymore information on what grid power would mean to us, feel free to contact us at (907) 329-2277. Sincerely, Jonathan and Megan Fitzpatrick Energy Consumption in Our Cabin: An Inventory of All Things That Plug-in and Their Associated Kilowatt[ Hours (kWh) Phantom Load Appliance Current Hours imergy Consumption Ye Enia y r9Y and/or Amps x Voltage = Waits x per = x 52 Consumption p Wall wart Week per Week P /1t?U0= kWh (Wh) ' •166..... ..... - - ' { Refrigerator X 4fi•....X ........ 7728 X 52.........-.Q . - . - - .. - o7 - Oven (glow bar igniter, clock and thermostat) X = 350 X -fi = 21W x 52 109.2 - - Microwave X - - _ 1300 X 1 e. 1300 x 52 67.6 - 3 Cfl light fixture 39 X 55 _ 2184 X 52 113.568 - : • Phone (Cor6e55) - - X = 7.5 X - 2 = 15 X 57 D-7a Phone (wall jack) -X = 0 X a 0 X 52 D Pantry CFL - X - 13 X 35 a 455 X 52 23.66 - - Blender .. - X - e 350 X 0.25 = 87.5 x 52 4.55 - Mixer .X v 575 X - t = 575 x 52-29.9- - Fred processor- -. 120 X 4 _ 480 X 1 - 490 %52 24.96 - - - - fry-o-lator .. X - 160D X 0.25 a 400 - x 52 - 20.8 - _ Waffle Maker - - -X - = 1500 X 0.1 a 150 x 52 7,8 .. Nightllte X - - _ 7 X 0:1 = 0,7 x 52 0.0364 . * - Music €aptop (iBook) X - a 45 X 12 = 540 x 52 - .28.0a .. Cell phone Charger - .. X _ = 15 X 4 - 60 X 52 3.12 - hand mixer X - - ,- 200 X o.l _ 20 .X 52 - 1,04 - - coffee grinder - - X. - = 90 X 0.1 - 9 x 52 ❑.a66 - - - - * - inverter - - - X - - 12 X 168 2016 - x52- - 104.832 . :i-.-- ... ---- ------- .............. ..- _ -......., - - .. - .. CFL lamp _ X 0 13 - X 52 - . = 676 ..%,_ X $2 . 35.152 - - CFL tamp _ X = 13 X 21 a 273 x 52 - 14.196 Television (trig tope one) . 1.5 X 120 a 100 X 2B a 5D40 X 52 - 262.06 DVD player _ X - 15 X 4 - 60 X 52 .. 3.12 VCR X _ - 14 X 1 - 14 X 52 - 6.728 - - * Laptop(MaCB00k) ..170 X iS 255 X 26 = 7140 X 52 371.28- - - .. ,•.... •. •,•r.•r _ 3 dl light fixture X = 39 x l4 _ 546 , ...-.-.•. X 52 - .•.v-28.3.. - 28.392 - - -- Hair Dryer X _ 1875 X a _ 0 X 52 - D - - - Straightener - _ X a 170 X 0 e 0 - x 52 a - Crimper - X - = 32 X a = p x 52 - 0 - _ Curling Iron - x 65 X 0 - D x 52 0 Y V` ::::::i::::.:.:.:.:.....:.:::.:.:;:::•:•:::::::':::::::•:•:•:•;•:•:•'•'''.'-'-.'.'.'.'-'.:::::::....•:•:•...... .................................. ---- - - ' Computer tower X = GOD X - 28 0 16Bo0 X 52 873,6 - - _ Monitor (Big tube kind) X = - 432 X 211 0 12096 X 52 626.992 Printer X = 36 X 29 = 1000 X 52 52.416 - - - - - Sppakers .. X e 6.S X 28 a - L87 X 52 - 9.464 - - .. - - - - Electric Mirror X a 4a X 1 _ 40 XSZ 2.08 - Television (small tube one) - .. X = 60 X 3 - - 180 x 52 9.3s - -- Curdless phone X _ 6.5 X 211 a 182 x 52 - 9-464 modem - - _ X = 5D X 211 _ 1400 - x 52 -- 72.8 - . .. router - X = 12 X - 28 0 336 x $2 - 17.472 - - - CFL light overhead - - X - - 13 X 14 = L82 X 52 9,464 CFL lamp . X - - - 13 X 14 _ L82 X 52 9,464 - VCR - - X = 13 X 3 - - 39 x 52- 2-025 .. - Washer - X - - - annual X annual _ .a x 52 - 2a2 - _ Dryer X = 210 X 4 _ _ - 840 X 52 13.68 . - .. . Closet CFL .. X - 13 X 10 - 130 X 52 6.76 - ................X_.._......-..-_--'''z6'--_•_X-•-_-•_z •.-...�_.. . 2CFL Sconces ..- 546• ------•,x52 --.-..••-26,392,•---- - - 2CFL overheads X = 26 X 21 = 546 X 52 213.392 -- Ceiling fan - - X - 110 X 1 110 x 52 110 .. :;.:.:.:.:.:.:=:.:.:=::.:.:.:.:.:. . :::::-:::=:=:.:=:.;.: Water Heater . _ X = 1800 X 16 0 2aBp0 x 52 1497.6 - - - - . Battery Charger 70 amps X - = 0 X a e 0 x 52 0 - - - - - - Miter Saw i5. X 120 - = 1800 X . 01 = lea X 52 9-76 - Table Saw' - .. 13 _ X _, 120 = 1560 X 0.1 0 - 156 x 52 8,112 _ _ + Battery Charger -For hand 2 - X 120 0 240 X 6 = 1440 X $2 74.88 - - tools - - Skill Saw - - 15 - X - 120 _ 1600 X 0.1 = 18o - - X $2 - 9.35 shop vac - '.to's - X 120 = 1260 X 1 = 1260 X 52 65.52 - planer - X _ = 4000 X 0.1 _ - 4D❑ X 52 20.8 router 15 - X 120 c 1800 X O.l _ 180 - X 52 9,36 total all Watts 25181.5 - 8473.1624 - . P.O. Box 18044 Coffman Cove, AK 99918 July 25, 2012 To whom it may concern.: I am writing this letter in support of the grant the city of Coffman Cove is writing to attain commercial power to the Coffman Cove residences presently providing their own source of power; most often utilizing a gasoline or diesel fired generator. I am a 30-year resident of Prince of Wales Island where Coffman Cove is located. My husband and I have commercial fished out of Coffman Cove for over 20 years and. own a small fish processing plant near the harbor. We have been wanting to establish a more permanent residence in Coffman Cove and own a residential lot that currently must be powered by a personal generator or some other alternative means. If the city of Coffman Cove receives this grant it would mean a cheaper, safer, cleaner, and more reliable source of electrical energy to these underserved residences of the community who are not connected to the commercial grid serving most Coffman Cove residents. The current hydropower source for most of Coffman Cove came on line last year utilizing a high elevation lake, which reduced the cost of power for those on the grid. If the outlying residences could be a part of this power grid, it would reduce the need to purchase and burn gasoline or diesel fuel for home generators, which in turn would decrease pollutants and noise associated with them. The high cost of fuel, especially in Southeast Alaska, is a financial burden that could be reduced if electricity was being provided by the commercial power source, Safety is of course another concern as the generator fuels are flammable and tanks must be filled regularly. Commercial power would reduce these fire hazards to residents and their neighbors. Generally connecting to a safer, cleaner, and cheaper electrical power source would be a positive change for the outlying residences not currently served by the existing power grid, I look forward to hearing that Coffman Cove received this grant so we can move forward with our plans to establish residence in Coffman Cove. Sincerely, Cheryl .Fecko Cheryl Fecko 7/19/12 To Whom it May Concern: City of Coffman Cove Resolution 13-01 A RESOLUTION IN SUPPORT OF SEEDING FUNDING AND ALLOWING ALASKA POWER COMPANY TO PROVIDE ELECTRICAL SERVICE TO RESIDENTS NOT CURRENTLY ON AN ELECTRIC GRID WHEREAS; The Prince of Wales Island electric grid is owned and operated by Alaska Power Company (APC), and; WHEREAS: The City of Coffman Cove currently has 91 parcels of property within our City limits that do not have access to the renewable energy electric grid, and; WHEREAS; Businesses not on an electric grid cannot open for business, and; WHEREAS; Funding would provide the means to allow these 91 parcels of property to receive relief from rising fiiel prices, NOW THEREFORE BE IT RESOLVED, The City of Coffman Cove supports seeking funding and APC providing power to the residents of Coffman Cove not currently on an electric grid. PASSED AND APPROVED on this 19"' day of July, 2012. MayorNice Mayor ATTEST: Kassinock, Ci Clerk