HomeMy WebLinkAboutAlutiiq Power Company Support Letter08/11/12 01:19AM ALUMOPOWER 9072412228 p.01
Alutiiq Power Co.
P.O. Box 42
Karluk, Alaska 99608
Phone 907-241-2228 Fax 907-241-2213
August 8, 2012
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, Alaska 99503
RE: Renewable Energy Fund Round 6 Application of Karluk Tribal Council
Dear Review Committee:
The Karluk Tribal Council owns and runs the Alutiiq Power Co. which operates the Karluk power
plant.
The Alutiiq Power Co. is pleased to support the renewable energy power development and
energy efficiency upgrades — specifically the integration of wind turbines and power plant
generator waste waste heat recovery. Our commitment is expressed in our willingness to
coordinate and share information with the Ak. Energy Authority, AEA and Renewable Energy
Engineering, LLC (project engineering consultant).
The Karluk Tribal Council is a federally -recognized native tribe. As AEA is aware, increasing fuel
costs and fuel transportation in rural Alaska are driving local residents to leave their
communities and shifting development. Most houses in Karluk electric heaters are used as
supplementary heat source. In some of the houses electric heaters are the only heat source,
resulting in high energy bills. The average household energy costs are estimated to be in excess
of $4,549 per year exclusive of firewood and propane. With the current fuel price of $4.92 per
gallon, and an electricity base cost of $0.71/kWh, the community struggles greatly with the
increasing energy costs they have to pay each year, making it hard to survive as a small tribe.
Karluk knows that the only solution is to invest in a more economical and sustainable energy
infrastructure. However, due to its size, Karluk relies on federal funding to make it happen.
The Alutiiq Power Co. believes that the most important benefit of the project will be that the
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availability of sustainable and affordable energy will improve the living conditions or residents,
support economic development, and encourage younger members of the tribe to remain in the
community of Karluk.
To address this rural crisis, the Alutiiq Power Co. would support a safer, more reliable, and
renewable power source to provide heat and electricity to the customers of Karluk. Stabilizing
and lowering the cost of electrifying the community will have a positive effect on Karluk and
encourage economic investment. it is our firm belief that a hybrid wind -- diesel system with
waste heat recovery can be developed that would make Karluk a viable place to live and work.
With support of AEA, Karluk could confirm that hydroelectric power is a feasibility option for
the community. With continued rising diesel fuel costs, this system would significantly benefit
the community of Karluk.
Sincerely,
Joyce E. Jones, Utility Manager