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HomeMy WebLinkAboutFivemile Creek Grant Application 5 FinalRenewable Energy Fund Round 5 Grant Application AEA 12-001 Application Page 1 of 21 7/1/2011 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at:http://www.akenergyauthority.org Grant Application Form GrantApp5.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet 5.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget5. doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetIn structions5.doc Instructions for completing the above grant budget form. Authorized Signers Form Authorized signers form5.doc Form indicating who is authorized to sign the grant, finance reports and progress reports and provides grantee information. x If you are applying for grants for more than one project, provide separate application forms for each project. x Multiple phases for the same project may be submitted as one application. x If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for completion of each phase. x 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. x 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: x 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. x All applications received will be posted on the Authority web site after final recommendations are made to the legislature. x 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 Grant Application Round 5 AEA12-001 Grant Application Page 2 of 21 7/1//2011 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Chitina Electric Inc. (CEI) Type of Entity: Fiscal Year End Native Corporation Rural Utility 2011 Tax ID #92-0068532 Tax Status: X For-profit or non-profit ( check one) Mailing Address PO Box 88, Chitina, AK 99566 Physical Address Main Street, Chitina, AK 99566 Telephone (907) 952-8748 Fax (907) 823-4006 Email mnfinn@cvinternet.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Martin Finnesand Title Utility Manager/President Mailing Address PO Box 88, Chitina, AK 99566 Telephone (907) 952-8748 Fax (907) 823-4006 Email mnfinn@cvinternet.net 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 21 7/1//2011 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) Fivemile Creek Hydroelectric 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. This project is located on Fivemile Creek, which crosses the Edgerton Highway approximately 5-miles north of Chitina, Alaska, near the Chitina Airport. The community of Chitina, ADOT facilities at the Chitina Airport, and local community services and businesses will all benefit from the clean, lower-cost energy that the proposed project would provide. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels X Hydro, including run of river X Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) 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 proposed Fivemile Creek Hydroelectric Project consists of four major components, including: x A creek diversion structure- The diversion structure would create a small impoundment that would divert a portion of flow from Fivemile Creek into a pipeline (penstock). x A penstock – The penstock is a pipeline that will transport water from the intake structure to the turbine powerhouse. The penstock for this project will be around 12-inches in diameter and 10,000 linear feet long. Its primary purpose is to pressurize and deliver the water from the creek to the turbine power plant. x A hydroelectric turbine power plant – The power plant will house the turbine and electrical generating equipment and controls. Water from the penstock will spin the turbine and generators and produce electricity. The power plant will include a tailrace that will return water from the penstock to the creek bed. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 21 7/1//2011 x Electrical tie-in – An overhead high voltage line will connect the turbine power plant to the existing electrical distribution system near the airport. x Diesel integration – The proposed hydro will be linked to the community’s existing, AEA- type, diesel powerhouse module. 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 proposed hydroelectric project will provide a new, sustainable, and renewable power source for the community of Chitina, Alaska, that would help to stabilize the cost of electrical power generation that currently fluctuates dramatically due to spikes in fuel oil prices. The proposed project would reduce the amount of diesel fuel burned annually at the existing power plant by up to forty thousand gallons, and also reduce the amount of home heating fuel used annually by as much as twenty thousand gallons. The result will be a more robust and sustainable utility. Lowered operating costs, in the form of fuel savings, will also decrease the community’s reliance on Power Cost Equalization funds, allowing the State’s funds to effectively benefit other communities in need. In addition, the proposed project will provide the security and reliability of multiple power sources for this remote community, and create less environmental emissions than the current diesel powered generation and heating systems. During the construction phase, the proposed hydroelectric project will provide new construction related employment and training opportunities for the local work force. In addition, when the hydro power generation exceeds community use requirements CEI intends to pursue sales of electric heat to the customers. The electric heat will be an interruptible, separately metered, and less expensive heating option for the larger power users. There are a number of current utility customers that would benefit from lower cost electric heat including the clinic, the local hotel, the Chitina One Stop (local fuel vendor and grocery store), the fire hall, Alaska Department of Transportation, the local community center, and adjacent HUD housing development. The extra capacity provided by the hydroelectric plant will also be beneficial in attracting new industries to the community thereby boosting the local economy. Economic benefit analysis completed to date indicates a payback period of less than 20 years for the project, compared with a design life of 50 years (design life based on information from AIDEA/AEA). The community, will realize immediate and substantial economic benefit from the project. In September of 2009 CEI, in cooperation with the Alaska Energy Authority completed the installation of a new diesel power plant. The plant is located near the Chitina airport and is connected to town by a 4-mile distribution intertie. The power plant module switchgear is setup to synchronize a hydro-electric power source with the existing diesel generator sets. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 21 7/1//2011 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. Conceptual Design Report $115,000 Geotechnical Investigation $50,000 Business and Operations Plan $35,000 Design $300,000 Site Control/Permitting $80,000 Land acquisition $500,000 Intake and Penstock construction $2,300,000 Powerhouse Building and Turbine $620,000 Electrical Controls and Transmission Line $405,000 Anticipated Project Cost to Completion: $4,405,000 RE Grant funding (Round II) $303,000 RE Grant funding (Round IV) $277,000 In-kind Native Corporation land donation (est.) $500,000.00 RE Grant Funding re-grant (Round V) needed $3,325,000 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.$3,325,000 2.7.2 Other Funds to be provided (Project match)$500,000 (Land)* 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$3,825,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $4,405,000 2.7.5 Estimated Direct Financial Benefit (Savings)$9,896,150 ** 2.7.6 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.) $ not calculated in dollars * The estimated land value is based upon an assumption of 25 acres total for intake line, building facilities, and distribution line extension at $20,000/acre. ** See Section 5 for financial benefit calculation methodology. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 21 7/1//2011 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. Chitina Electric, Inc., requests as part of this application, that AEA provide project management assistance in procuring design services and bidding the construction contracts. Chitina Electric, Inc. will provide field supervision services during construction. Through previous discussions and preliminary verbal concurrence it is anticipated that AEA, Rural Energy Group, Rural Power Systems Upgrades will manage the project and assist with system integration. The requested AEA project manager for this project is Mr. Alan Fetters. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) PROJECT TASK TARGET DATE Regional Hydrologic investigation Complete Stream Gauge installation and monitoring Complete Complete new Diesel Powerhouse and 4-mile Distribution tie-in Line (adjacent to mouth of Fivemile Creek) Complete Submit RE Round IV Grant Application Complete Recommendation from AEA to Legislature for FY2012 funding Complete RE Round IV Grant award to CEI Complete Complete fieldwork for Conceptual Design Report (Survey, Site Control, etc.) Complete Aquatic Impact (GAP) fieldwork Complete LIDAR Imaging and Aerial Photography Complete Initial coordination with Regulatory Agencies (ADF&G, ADNR, FERC, etc.) Complete FERC Notice of Intent Application Complete Submit RE Round V Grant Application August 2011 Submit Draft Feasibility Study / CDR (Attached Herein, Accomplished with Round II RE Funding) August, 2011 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 21 7/1//2011 Remaining fieldwork for Conceptual Design Report (Geotech) Sept - Oct 2011 Submit Final Feasibility Study / CDR October 2011 Final Design and Permitting completion July 2012 RE Round V Grant award to CEI (Assumed) July 2012 Begin Long Lead Procurement (Owner Provided Turbine, penstock, controls) August 2012 Prepare Bid Package and solicit bids for construction September 2012 Award Hydro Project November, 2012 Construction completion August 2014 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) MILESTONE TARGET COMPLETION DATE Complete Remaining Fieldwork for Conceptual Design Report (Geotech) October 1, 2011 x Geotechnical Reconnaissance (Air / Land) Submit Final Feasibility Study / CDR October 31, 2011 Submit 65% Construction Documents March 15, 2012 Submit 95% Construction Documents May 15, 2012 Submit Final Construction Documents July 15, 2012 Begin Procurement of Long Lead Items (Owner Provided Turbine, penstock, controls, etc.) August 15, 2012 Prepare Bid Package and Solicit Bids For Construction September 2012 Award Hydro Project November 15, 2012 Contractor Mobilization June, 2013 Construction Substantial Completion August 2014 Operator Training and Plant Startup September 2014 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 21 7/1//2011 3.4 Project Resources Describe the personnel, contractors, 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. Chitina Electric, Inc. (CEI) Martin Finnesand, Utility Manager/President, will be the project contact from CEI. He has 25+ years of experience in his position with CEI, with the Chitina Native Corporation, and with construction projects in the community. CEI has administered the local utility since its inception. Utility personnel have been trained and certified as powerhouse operators and have also been trained on hydro operations. It is the intent that the local operators will become knowledgeable on all aspects of this Project to enhance their capability for O&M. (reference appendix) Alaska Energy Authority (AEA) CEI and AEA have a relationship through the Rural Energy Group, Rural Power System Upgrade, which administers and implements the rural power system upgrade program. AEA has the project management experience to facilitate management and contracting for the planning, design, and construction of the required infrastructure improvements. Continuing the established relationship between CEI and AEA, with the Project Management Agreement, will provide the most efficient and cost effective implementation of the contracts for the facilities. AEA project manager Alan Fetters will manage the project. Engineering Design Team The design team will consist of multiple engineering firms. CRW Engineering Group under contract to the AEA, will act as the primary engineering consultant for this project. CRW is an Alaskan company with over 30 years of experience in the fields of rural Alaska utility, bulk fuel, and power plant design and construction. Other key design team members will include Golder Associates (Geotechnical design), Alaska Energy & Engineering (Electrical and Mechanical Engineering), Cliffton Laboratories (Hydrology and Turbine Controls), Larsen Consulting Group (Structural / Architectural), Solstice Alaska Consulting, Inc. (Hydro Permitting Specialists), Rick Elliot, Land Consultant (site control) and Aurora Consulting (business planning and management). Resumes for specific project personnel are attached. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Chitina Electric, Inc., will appoint a project superintendent to work with Allen Fetters the AEA project manager, and to also provide a conduit for distribution of information between the onsite construction crew and the project manager at CRW Engineering. This methodology worked reliably and efficiently for the 2008 diesel powerhouse upgrade project. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 21 7/1//2011 3.6 Project Risk Discuss potential problems and how you would address them. Development of a hydroelectric project may encounter unknown field conditions, as well as procurement, and permitting delays. Project management will attempt to avoid as many potential pitfalls as possible by: gathering extensive soils and bedrock information at the site to avoid mitigation and blasting delays; coordinating advance procurement requirements to allow construction to proceed on schedule; and facilitating right-of-way, permitting, and regulatory review concerns early in the project approval process. Previous preliminary investigation has already provided valuable information and contributed significantly regarding the selection of Fivemile Creek from the other available hydro resources in the Chitina region. Some of the current design challenges and anticipated solutions include: x Creating an intake structure that can withstand springtime flows. – to pass the springtime flows the concrete intake diversion structure will have inflatable spillway gates that can be rapidly and remotely lowered to let the spring flood waters and debris pass over unobstructed. x Freezing of penstock and tailrace structures. – For the penstock intake the inflatable spillway gates can be raised during winter months to provide up to a 6-foot crest elevation to help prevent freezing at the intake site. The bar rack would also require a heating element to prevent frazil ice buildup. The penstock will be buried wherever possible but for sections that must be above ground adequate pipe insulation will be provided. The tailrace will require special attention during design to ensure the outfall does not freeze. x Crossing the Edgerton Highway. – The penstock alignment will be directionally drilled to avoid disruption of the Edgerton Highway. x Possible fish habitat concerns. – A preliminary meeting with the area biologists has occurred and it is felt the portion of Fivemile creek above the Edgerton Highway is not suitable for fish habitat; however the lower reaches near the Copper River may be. To allay any concerns, the tailrace outfall will be located as close to the Edgerton Highway culvert as possible to minimize\negate impacts to possible downstream fish habitat. x From our Fivemile creek recurrence interval for minimum hydroelectric power, it has been determined that every 5 years the power output will dip below community consumption. – To alleviate brown-out situations, the diesel power plant will remain in a standby function to compensate during times when the Creek levels are below normally expected flows. x Frequency control – An electric boiler will be added to the existing powerhouse heat recovery system. With proper scheduling and management the project risk can be mitigated to acceptable levels. The management and engineering design teams assembled for this project are composed of capable and experienced professionals, determined to overcome any challenges that may surface. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 21 7/1//2011 SECTION 4 – PROJECT DESCRIPTION AND TASKS x Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. x The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. x If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase. x 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. There are multiple creeks near Chitina that could potentially provide hydroelectric power. Previous studies by the Alaska Power Authority and various consultants have considered many possible locations and configurations for hydroelectric generation facilities. Potential sources that have received the most detailed study include Liberty Creek, Fivemile Creek, Trout Lake, Fox Creek, and O’Brien Creek. Recent studies, including the Regional Hydroelectric Investigation: Chitina, Alaska, Final Report completed on May 2, 2008, focused on O’Brien Creek and Fivemile Creek. This report concluded that Fivemile Creek is the preferred development alternative for the following reasons: x Site Access: The proposed intake location can be accessed via an existing 4x4 vehicle trail. Access to O’Brien creek was essentially cut off during flooding in 2006 and subsequent landslides along the Copper River Highway. x Geotechnical Conditions: The record flood in 2006 caused significant changes in the O’Brien Creek drainage resulting in slope instability along the proposed penstock route. Further, discontinuous permafrost was found along the proposed penstock alignment and access corridor. Fivemile Creek has no known permafrost and relatively stable slopes. x Electrical Grid Tie-In – The 2008 Diesel Powerhouse Project included a 4-mile high voltage overhead power line extension from town to the airport (the diesel powerhouse was sited near the airport). As a result of this project, the community power grid extends to within 300 linear feet of the Fivemile Creek Bridge across the Edgerton Highway. Tying the proposed hydro plant into the existing grid would be simple. x Subsequent evaluation by Cliffton Laboratories has concluded that Fivemile creek has the potential to meet the city’s electrical demands most of the time. The proposed Fivemile Creek project would be “high head” with about 950 feet of elevation drop between the intake elevation and the powerhouse. The expected design output is 300kW at a penstock flow rate of 5 cubic feet per second (cfs), and 60 kW at the predicted minimum flow rate of 1.0 cfs. The cumulative annual potential energy output is expected to be around 1,796,000 kWh. Nearby gravel pits provide a local resource to sufficiently bury the pipeline where bedrock precludes direct bury. The timing of the summer peak load from fishing and tourism is ideal for the peak energy delivery of the hydro plant. See CDR Appendix A for Conceptual Design Drawings. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 21 7/1//2011 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. CEI’s existing diesel power plant was constructed in 2008 and energized in September, 2009. The project was funded through the Denali Commission and the Alaska Energy Authority, and replaced the community’s aged, non-code compliant deisel power plant. The new facility consists of a pre-engineered, modular metal structure (15’ x 42’) founded on concrete spread footings partially buried within a gravel pad. The structure contains three diesel gensets, including one 54 kW and two 117 kW units, and paralleling switchgear. Power is generated at 480 volts AC and stepped up to 12.47 kV using pole-mounted transformers. A 4-mile overhead powerline connects the power plant to the community power grid. The power plant’s close proximity to Fivemile Creek makes a hydroelectric plant at this location a clear choice. Based upon 2010 PCE data, Chitina’s current average electrical demand is approximately 60kW, with peaks of 115 kW. The 2011 PCE report shows that the CEI power plant used 40,753 gallons of fuel at an average cost of $3.55/gal. Each gallon of fuel produced 13.6 kWh. The total generation was about 554,137 kWh, equivalent to a continuous power output of 62kW. 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. Currently, the community is totally reliant on its diesel generators for all power production. Without a renewable source to supplement the diesel systems, the Utility will continue to struggle with volatile fuel prices and the resulting economic instability. The proposed Fivemile Creek hydroelectric project is a long term, cost effective, renewable resource answer to Chitina’s current and future energy needs. The project would substantially reduce operating costs (fuel avoidance) and help to stabilize energy costs in the community. The proposed project would reduce the runtime of the existing diesel plant, thereby reducing the amount of “recovered” heat available from the plant. Recovered heat is currently utilized to heat the Clinic building and heat the power plant fuel tank to allow the use of #2 diesel. However, excess energy from the proposed hydroelectric plant will be used to heat these facilities in place of the diesel genset recovered heat. Further, when excess hydro power is available, dispatchable, low cost heat will be available for many other facilities in town such as the Chitina One Stop Grocery, ADOT maintenance building, fire hall, community building, local hotel, and HUD housing, etc. Other immediate benefits to the community may include extending the operating hours / season for the One Stop Grocery and local guide services due to the availability of lower cost electric heating. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 21 7/1//2011 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. 2010/2011 annual electrical consumption in the community was approximately 554,000 kWh, representing a 7% increase compared to the previous year. This increase is the result of recently connecting the new clinic, ADOT maintenance building and a local RV park to the distribution system. For this economic planning/analysis three different population growth scenarios were modeled: zero growth, a linear growth equation of around 4 persons per year, and an exponential growth equation of 4.76% annually. In all cases electrical demand is assumed to increase at the same rate as population growth. As previously discussed, the proposed hydroelectric powerhouse will dramatically reduce diesel fuel consumption and help to stabilize pricing. When available, excess power will be offered to large consumers at a reduced rate, providing a more cost effective method of heating structures than with diesel fuel or wood. Several existing businesses, including the local grocery/gas station and local guide services, have indicated they would consider extending their operating seasons if heating costs could be reduced. Chitina is actively developing its tourism potential. x The local hotel was recently renovated by a new owner willing to invest over a million dollars. x The local RV campground is constantly being improved by the city. x A modern and scenic multi-million dollar bike path was just completed this last summer x Dip netting along the Copper River brings approximately 10,000 fishermen, tourists, and campers into Chitina annually. The proposed project will help to facilitate these and other business growth opportunities in the community. 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: x A description of renewable energy technology specific to project location x Optimum installed capacity x Anticipated capacity factor x Anticipated annual generation x Anticipated barriers x Basic integration concept x Delivery methods System Design -As previously discussed, the proposed Fivemile Creek project would be designed as a high head system, with about 950 feet of elevation drop between the intake and the powerhouse An exposed bedrock channel at the intake location will allow for construction of a diversion structure to capture the necessary flows. The diversion structure will likely be constructed of reinforced concrete. The intake will be designed to withstand water and debris Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 21 7/1//2011 impacts from annual spring floods and ice loading. Other design considerations will include freeze protection and a self-cleaning screen system to prevent debris from entering the pipeline. Power and communication lines will be run to the intake location along the penstock alignment. A pressure transducer at the intake will monitor water availability. The intake will be accessible via gravel access road for construction and maintenance. Water from the diversion structure will be transported to the turbine powerhouse via a 10,000 LF +/- penstock. The penstock will consist of a combination of High Density Polyethylene (HDPE) and steel pipe sections; the diameter of the pipeline will be in the range of 12-inches. The pipeline will be buried where soil conditions allow. Above grade pipe sections, if any, will be insulated and protected from environmental hazards. The pipeline will be designed using proven methods for thrust resistance, air release / vacuum protection, water hammer effects, etc. It is envisioned that the penstock will cross the Edgerton Highway via directionally drilling methods. The penstock will terminate at a hydroelectric powerhouse situated adjacent to the existing Fivemile Creek channel. The powerhouse will house a pelton turbine, generator, and necessary controls. Water from the turbine tailrace will be directed back into Fivemile Creek. Optimum and Anticipated Capacity -Based upon the hydrologic data collection and modeling, the expected maximum design output of the powerhouse is 300kW at a penstock flow of 5 cfs, with a typical expected winter low output of around 96 kW at 1.57 cfs. The selected turbine size provides reasonable efficiency at average expected loads, while also providing adequate surplus power during periods of high flow to power the expected heating loads. Anticipated Annual Generation -The annual cumulative potential energy output of the system is estimated at 1,796,000 kWh. Specific powerhouse technologies and automation will be selected during final design. Basic Integration Concept -The proposed hydro system controls will be connected to, and integrated with, the existing diesel power plant controls. The hydro will be capable of providing prime power to the community year around, with the diesel plant operating as a backup system. The community’s recently constructed diesel plant has state of the art PLC-based controls that will readily interface and synchronize with the hydro plant controls. The proposed hydro plant will include a full Supervisory Control And Data Acquisition (SCADA) control system, including high-speed internet link and video cameras allowing anchorage based technicians to monitor and assist the local operators with troubleshooting the system when necessary. Delivery Method -The hydro plant will generate power at 480 volts, and transformers adjacent to the plant will step the voltage up to 12.47 KV. Power from the hydro plant will be delivered to consumers via the existing overhead electric power distribution grid. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 21 7/1//2011 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. Land required for the development of the proposed improvements is owned by the Chitina Native Corporation, and will be provided to the utility as an in-kind donation. As CEI is owned by the Chitina Native Corporation, provision of the land has been agreed upon as a benefit to the community and Corporation members. The proposed penstock will also pass through the Edgerton Highway Right of Way (ROW), owned by the Alaska Department of Transportation (ADOT). An ADOT utility permit will be required. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. x List of applicable permits x Anticipated permitting timeline x Identify and discussion of potential barriers Required state and federal permits are identified in the Conceptual Design Report (attached). Scoping meetings were held with applicable regulatory agencies. Based upon initial agency input, it is anticipated that permitting for the proposed project will take approximately 6-months to complete. The following permit requirements are anticipated for the proposed project: x Preparation of an Environmental Assessment (EA) in accordance with AEA requirements. x Review by the State Historic Preservation Officer – A preliminary review of the area revealed two existing historical sites (VAL_00489, & VAL_00014) in the general project vicinity. Neither is within 300-feet of the proposed facilities. x ADOT Right of Way Permit for penstock crossing of Edgerton Highway. x Corps of Engineers Jurisdictional Determination and nationwide permit for in stream facilities. x USFWS approval (Endangered Species Act Compliance) – Chitina has No Listed Species Present/No Effect as determined during a 2004 records search. x FAA-Form 2120 “Notice of Proposed Construction or Alteration” x ADF&G Habitat Permit – Scoping meeting was held with Mark Somerville & Mac McLean with the ADF&G, and Kim Saigger with the ADNR. No apparent habitat concerns above the Edgerton Highway and downstream concerns could likely be mitigated. x ADNR water rights – Kim Saigger with ADNR has been contacted and an application for water rights will be filed. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 21 7/1//2011 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: x Threatened or Endangered species x Habitat issues x Wetlands and other protected areas x Archaeological and historical resources x Land development constraints x Telecommunications interference x Aviation considerations x Visual, aesthetics impacts x Identify and discuss other potential barriers Threatened or Endangered species -Threatened or endangered species are not anticipated to be impacted by this project based on the attached correspondence between AEA and the US Fish and Wildlife Service (USFWS) (see attached CDR Appendix D), but USFWS—Endangered Species Act Compliance will be reviewed. Habitat issues -Utility Pole lines will be designed with raptor concerns in mind. The State of Alaska Department of Fish and Game does (ADF&G) not list Fivemile Creek as an anadromous stream and, initial aquatic data gathering and scoping meetings with ADF&G indicated no apparent habitat concerns above the Edgerton Highway. Downstream concerns could likely be mitigated through the placement of the tailrace (see attached CDR Appendix A). Therefore, maintaining a base flow in the creek above the proposed turbine house will likely not be a permitting requirement. Wetlands and other protected areas -Research into the USFWS National Wetlands Inventory does not show any wetlands within the project area; wetlands are not anticipated to be an issue for the Fivemile project. However COE Nationwide Permits stipulations may apply for work within the streambed. Archaeological and historical resources -Based on a preliminary review of the Alaska Heritage Resource Survey (AHRS), two existing historical sites (VAL_00489, & VAL_00014) are in the general project vicinity, though neither is within 300-feet of the proposed facilities, and are not anticipated to be encountered during this project. However to comply with State Historic Preservation Office procedures a Pre-construction Notification will be submitted. Land development constraints -With the exception of the ADOT ROW (Edgerton Highway) the project involves lands owned by the Chitina Native Corporation. The corporation plans to donate these lands as an in-kind contribution; there are no zoning restrictions on the affected lands. Telecommunications interference -There are no anticipated telecommunication conflicts. Aviation considerations -Facilities near the airport will be included in FAA-Form 2120 “Notice of Proposed Construction or Alteration”. Visual, aesthetics impacts -As much of the facilities will be buried and/or hidden within wooded areas. Visual impacts are not anticipated to be an issue for this project. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 16 of 21 7/1//2011 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: x Total anticipated project cost, and cost for this phase x Requested grant funding x Applicant matching funds – loans, capital contributions, in-kind x Identification of other funding sources x Projected capital cost of proposed renewable energy system x Projected development cost of proposed renewable energy system Total anticipated project costs: $4,405,000 Grant Funding Received to date: $580,000 (REF Round II & IV) Requested Round V grant funding: $3,325,000 Community In-Kind Contribution: $500,000 -Land value Projected project capital costs: $3,825,000.00 - Cost to construct intake, penstock, powerhouse, turbine/generator, electrical controls, transmission line, and value of land contribution. Projected project development costs: $ 580,000.00 –Conceptual design report, design/survey fieldwork & investigation, business and operation plan, final design, site control, and permitting. 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.) Maintenance costs for the proposed hydro plant will likely be similar or slightly higher than those for CEI’s existing diesel power plant. Some additional maintenance tasks associated with the proposed hydro facility include: Maintaining & plowing the road to the intake structure, clearing the bar rack of debris, and cleaning the deposited silt/rock from behind the intake on an as needed basis. Operating costs for the proposed hydro plant are expected to be significantly lower than the existing diesel plant due to avoided diesel fuel savings. A detailed business plan will be developed during the design phase to assist CEI with operational management and financial planning for the facility. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 17 of 21 7/1//2011 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: x Identification of potential power buyer(s)/customer(s) x Potential power purchase/sales price - at a minimum indicate a price range x Proposed rate of return from grant-funded project The existing and future CEI consumers will remain the potential power buyers for the renewable energy generation that will replace/supplement the existing diesel generation. CEI intends to pursue green energy credit sales and interruptible electric heating sales. The detailed business plan to be developed upon grant approval will include assessing impact on fuel surcharge effects of the power costs. Due to PCE effects, consumers may not see significant rate reductions. However, cost benefits will be realized from rate stabilization in future follow on years, and utility sustainability from a consistent energy supply that will not fluctuate with oil prices. Based on the most recent fuel purchase records ($3.55 per gallon) and the estimated diesel avoidance at the power plant (around 40,000-gallons per year) and heating oil savings at the store, hotel, community center, fire hall, and other facilities eligible for reduced cost electric heat (estimated at around 15,000-gallons per year) the payback period for the project capital cost is 17 years. This estimate is conservative, assuming zero growth and flat fuel costs. With minimal growth, the payback period will likely be less than 15 years. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The project worksheet (attached) was prepared as a joint effort between CEI, the project design team, and potential equipment vendors. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 18 of 21 7/1//2011 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: x Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project x Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) x Potential additional annual incentives (i.e. tax credits) x Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) x Discuss the non-economic public benefits to Alaskans over the lifetime of the project Annual fuel Displacement due to Hydro: Assumptions: No Growth, Fuel Price Remains Constant for Life of Project at $3.55 per gallon. Diesel For Power Generation: 40,753 gal @ $3.55/gal = $144,673 Heating Oil (replaced w/ low cost electric): 15,000gal @ $3.55/gallon = $53,250 Total Annual Diesel Displacement Cost Savings: $144,673 + $53,250 = $197,923 50-Year Diesel Displacement Value = 50 yr x $197,923/yr = $9,896,150 and 2,787,650 gals The proposed power purchase/sale price is $0.60/kW. At this rate and the 2011PCE Chitina annual community usage of 554,137 kW.The anticipated annual revenue would be $332,482. The other potential economic benefits of green credits, or environmental improvement have not been calculated in terms of dollars. Federal and State legislation on the proposed carbon tax could have a significant positive impact on the economical payback of the hydro project and will be monitored closely. Non-economic public benefits of the proposed project include the following: x Lower emissions will result in cleaner, healthier air for the community and its visitors, and a smaller carbon footprint. x Successful use of alternative energy will encourage other communities to pursue green technology. x Reduced handling and transport of fuel oil will reduce the potential for a spill and better protect the environment. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: x Proposed business structure(s) and concepts that may be considered. x How you propose to finance the maintenance and operations for the life of the project x Identification of operational issues that could arise. x A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation x Commitment to reporting the savings and benefits Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 19 of 21 7/1//2011 The proposed project will be owned and operated by Chitina Electric, Inc. CEI’s existing management structure and administrative department will remain in place. The overall operation of the utility will change little as a result of this project. The Utility will continue to operate and maintain its facilities, and bill its customers for services provided. It is anticipated that operation and maintenance efforts will increase initially while CEI’s staff familiarize themselves with the Hydro plant. However, once startup is completed, the Hydro plant should require little, if any more maintenance than the existing diesel system. The diesel system will need to be exercised on a regular basis to insure it is ready for backup service. Similarly, during periods of low water when the diesel plant is carrying the load, the Hydro will need to be maintained in a ready condition. Operation, maintenance and management requirements will be addressed in the project business plan. The Plan will provide an organizational structure to help the Utility transition to Hydro power. The proposed business plan consultant, Aurora Consulting, has assisted dozens of communities, and utilities with similar business plans. In addition to the business plan, administrative and operator training will be provided on an as-needed basis as part of the startup services. 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. Chitina Electric Inc. is requesting $3,325,000 to fund construction of the proposed Fivemile Creek Hydro Project. Work completed since award of the REF Round II and Round IV Grants is as follows: x LIDAR Mapping of Fivemile creek project area. x Aerial photography of Fivemile creek catchment basin. x Preliminary control/design survey. x Regulatory scoping meetings/preliminary permit applications with USFWS, ADF&G, ADNR, SHPO, and FERC. x Site control research. x Detailed hydrology analysis of Fivemile creek resource. x Detailed economy analysis of proposed system. x 35% level design drawings & equipment selection. x Draft Conceptual Design Study report summarizing project data collected to date and recommendations for moving the project forward. The recent award of Round IV REF funding will be utilized for final design and permitting for the project. It is anticipated that final design will be complete by August 2012. The award of construction funding (Round V REF Funding) would allow for a seamless transition from design to procurement, and construction activities. Once the design and permitting is complete, it will be important to move quickly into construction to prevent escalating costs due to inflation, and avoid permits expiring. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 20 of 21 7/1//2011 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. The proposed project is fully supported by the residents and local businesses (consumers), the utility (owner/operator), and the local Corporation (land owner). Please see the grant application cover letter submitted by the CEI President, Mr. Martin Finnesand, in support of the project and the attached corporation resolution in support of the project. The utility has offered to provide free use of its limited spread of heavy equipment for the project. In addition, the Corporation has agreed to donate the necessary land for the project. The residents of Chitina are excited about the potential project; the idea of powering their community with clean, renewable energy has energized the community. 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. Include an estimate of budget costs by milestones using the form – GrantBudget5.doc Chitina Electric Inc. is requesting $3,325,000 to fund construction of the proposed Fivemile Creek Hydro Project. Land required for the development of the proposed improvements valued at $500,000 is owned by the Chitina Native Corporation, and will be provided to CEI as an in- kind contribution. Thank you for your consideration of Chitina Electric Inc.’s request for grant funding. The project team is excited to continue work on this critical infrastructure improvement for the community of Chitina. A. Resumes    Your community. Your resources. Your world. www.crweng.com What makes us stand out from other firms? O ur Crew. We go above and beyond to meet our clients’ needs and expectations on every project, whether for public agencies, private developers, construction contractors, or community organizations. We value relationships, and most of our clients are long-time repeat customers. - CRW is about people. Our Services CRW delivers a broad range of services and a wide variety of project expertise. We are local to Alaska, with years of cold-weather project experience in: transportation & transit, parks & trails, land & site development, power & fuel systems, water resources & treatment, sewage collection & disposal, and storm water & wastewater collection & treatment. - CRW is about service. In our work and in our volunteer efforts, CRW strives to have a positive influence on our neighbors, be they in the house next door or on a remote island in the Aleutians. Engineering is about working with people to create meaningful solutions, providing basic services that improve the quality of life in the places where we live. CRW listens to our neighbors’ needs, develops plans to address human and environmental factors, supports community interests, and designs technical solutions to better our world. - CRW is about community.Civil Engineering Electrical Engineering Planning & Public Involvement Construction Administration Land Surveying & Mapping Our Staff Our staff creates CRW’s spirit and personality. Our team is proud to work at CRW. We have an open management style that builds on the strength of our staff as individuals. Most importantly, we operate as a team, collectively responsible for upholding our mission. CRW emphasizes community and having fun. Whether floating down the Kenai River on our annual raft trip, playing on one of many sports teams, cleaning up trash for Adopt-A-Trail, or helping out during United Way’s Day of Caring, we work hard to play hard and contribute to Alaska’s communities. - CRW is about teamwork. “Our mission is to provide outstanding engineering services through enthusiastic employees who work in a fun environment and who recognize the impor- tance of each and every client.” Our Company CRW Engineering Group, LLC. was founded in 1981 by Willy Van Hemert, PE. The founding philosophy of the firm was to become a viable part of the engineering work force in Alaska by maintaining a high level of excellence in our work product and at the same time developing a satisfying atmosphere and work environment for our staff. The firm grew from three people in 1981 to a current full-time staff of 62 people. Our emphasis is on civil infrastructure projects, including transportation, water and wastewater systems, parks and trails, fueling & energy facilities, site development and storm water collection and treatment systems. We provide a full range of services from planning & permitting through construction management in more than 90 Alaska communities. Our in-house capabilities include civil and electrical engineering as well as land surveying and mapping & public involvement. www.crweng.com Your community. Your resources. Your world. CRW Engineering Group, LLC 3940 Arctic Blvd., Suite 300 Anchorage, AK 99503 p (907)562.3252 | f (907)561.2273 CRW ENGINEERING GROUP, LLC | Firm Profile Your Community, Your Resources, Your World. Page | 1 Background | CRW Engineering Group, LLC was established in 1981 and has been performing work in Alaska continuously for 28 years. The organization started as a sole-proprietorship but converted to a Limited Liability Company in 2002. There are nine active owners in the LLC. CRW Firm Profile The firm’s strengths are in utility and transportation development in urban and rural Alaska. CRW has a full-time staff of 61 people, including 22 registered civil engineers, one registered electrical engineer, four registered professional land surveyors, 15 graduate engineers, a certified planner, 10 technicians, and two construction administrators. Thirteen members of our staff have been with CRW for eight years or more, providing stability and continuity to our clients. CRW’s client base is primarily governmental although we do perform services for select private sector clients. Primary clients include the Municipality of Anchorage, State of Alaska (Alaska Department of Transportation and Public Facilities (ADOT&PF), Alaska Energy Authority (AEA), ADEC Village Safe Water (VSW) Program, the Alaska Native Tribal Health Consortium (ANTHC), the Alaska Village Electrical Cooperative (AVEC), and a variety of municipalities throughout Alaska, including Whittier, Seward, Valdez, Homer, Bethel, Juneau, and the Ketchikan Gateway Borough. Facilities | CRW is fully equipped with the latest technology to serve our clients, including individual workstations, and state-of-the- art printers, scanners, servers, and other equipment. CRW maintains a public web site (www.crweng.com), a company intranet, and an FTP site, which provides current information on key projects. Data integrity is provided by redundant file server storage, battery backup power systems, daily tape backups, and offsite storage of backups. CRW Firm Profile Our computer system includes a gigabit Ethernet network with dual-screen workstations at each desktop and broadband internet access. Data security is provided by robust firewalls, automatic virus protection, redundant file server storage, daily backups and offsite data storage. We have four copiers, five scanners, and more than 15 monochrome and color output devices for printing from letter size to E size (plotter). Our more than 12 digital cameras allow us to efficiently document field conditions during the design and construction process. We have presentation equipment, including LCD projectors, podium, speakers, wireless microphones, notebook computers, and display boards. CRW uses the latest version of AutoCAD, AutoCAD Civil 3D, and Autodesk Design software for roadway and site design, surveying, watershed modeling, and drafting. We also use the most current version of Land Design Desktop (LDD) computer design and drafting software. We use Microsoft Office for correspondence, spreadsheets, and project scheduling, and we use Adobe software for publishing and graphic design. CRW’s survey department is equipped with efficient and reliable tools, including GPS receivers, robotic total stations, and digital levels that allow us to perform survey tasks in a cost-effective manner. The use of this digital field equipment reduces the potential for errors by streamlining data collection and minimizing manual data input. In some cases, a single person can gather data. Our reflectorless distance meters reduce or eliminate the need to occupy a point to record its location, which is especially helpful when physical access is difficult including on private property and near barriers. We keep our fully equipped survey vehicles ready to go in our garage/shop located next to our midtown office. Our survey crews travel with fully loaded notebook computers, enabling them to check data integrity prior to leaving the project site. CRW ENGINEERING GROUP, LLC | Firm Profile Your Community, Your Resources, Your World. Page | 2 Project Experience | CRW Engineering Group is an Anchorage-based consulting firm specializing in cold region and arctic engineering design and application. The firm's strengths are in utility and transportation development for public and private sector clients. Our expertise includes the following: CRW Firm Profile ◦ Site development for major commercial buildings and subdivisions ◦ Bulk fuel facilities ◦ Rural power systems, including alternative energy systems ◦ Drainage facility design, including snow disposal facilities ◦ Water quality enhancements ◦ Road improvements ◦ Water and wastewater systems ◦ Recreational facilities, including parks, trails and stadiums We offer a full range of services, including planning, project management services, surveying and mapping, design, electrical engineering, and construction support, including rural community force account construction methods. We have provided design for municipal water and wastewater treatment facilities ranging from small, modularized arctic camps to full-size municipal systems in Alaska's major communities. We have extensive experience in water and sewer system development throughout the state. Water system designs have included storage tankage, booster stations, traditional buried water mains, recirculating water mains and above-ground arctic pipe systems. We also provide water system modeling, leak detection analysis, and water system evaluations. In the area of transportation, CRW provides planning as well as design for roadway systems ranging from urban expressways to residential subdivisions. We have worked extensively with federal 3R (rehabilitation) projects as well as the federal TEA-21 program through contracts with ADOT&PF. For the Municipality of Anchorage, we specialize in arterial and collector roadways as well as major trail projects. CRW provides signal system design for major intersections, roadway illumination systems, signing and striping, and traffic control plans associated with construction road closures. CRW also provides design for bulk fuel facilities, fueling dispensing stations, and rural power systems. We have worked in more than 20 rural communities and Anchorage on designing, permitting, and providing construction support for fuel facilities. We have also evaluated and designed alternative energy systems using both wind energy and hydraulic power. Our experience also encompasses site development projects, including commercial buildings, residential complexes and municipal parks. CRW also designed the two outdoor artificial turf stadiums in Alaska. Some of our more recent projects of interest include: Design of a number of collector roadways in Anchorage including Kincaid Parkway, Elmore Road, Pine Street, E.84 and Spruce, McRae and 35th, Independence Drive, Bayshore Subdivision and E Street. Development of a number of parks and bike trails in Anchorage including Kincaid Park, the Campbell Creek trail, the Fish Creek trail, the mid-town north-south trail and enhancements to the Coastal Trail. We are also designing transit and pedestrian improvements in the University/Hospital area in Anchorage. CRW ENGINEERING GROUP, LLC | Firm Profile Your Community, Your Resources, Your World. Page | 3 Design for the rehabilitation of the Old Glenn Highway through Eagle River. We are currently working on the segment from the North Eagle River exit to Peters Creek which also includes water and sewer upgrades. Planning and design of major water improvements for the Northern Communities of Anchorage including lift stations and water booster stations. Design and construction management for two water treatment plants in Bethel. We are currently working with the community in constructing a piped water and sewer system and designing an upgrade to their backbone sewer system. Major water and sewer improvement projects in local Southcentral communities of Seward (master planning and water extension), Whittier (new water and sewer system), and Valdez (water system extension, water storage). Sanitation improvement projects in a number of rural communities including Napaskiak, Nunapitchuk, Kwinhagak, Beaver, Tanacross, Klukwan, Twin Hills, Noorvik, Coffman Cove and Mekoryuk. Multiple projects at the Anchorage International Airport (ANC) including master planning, taxiway upgrades, snow disposal site development, and roadway and drainage improvements. Bulk fuel and rural power system design and construction support for the Alaska Energy Authority in more than 15 rural Alaska communities. Replacement of the artificial turf at Anchorage Football stadium which was the furthest north installation of its kind. We also designed a similar field for the City and Borough of Juneau at Kennedy-Adair School. In addition to our technical accomplishments, CRW is also proud to be part of the Alaska community, supporting various organizations and events, including participation in United Way’s Day of Caring, Adopt A Trail, support for local activities and organizations, and funding of an annual Engineering Week College Scholarship. CRW has also been one of the CENews Top 25 Best Firms To Work For for three years. Learn more about CRW at www.crweng.com.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Utility Business Planning & Training 1 Experience & Expertise AURORA CONSULTING UTILITY BUSINESS PLANNING & TRAINING EXPERIENCE & EXPERTISE Aurora Consulting’s staff has many years of experience with community development and other projects, preparing and submitting funding proposals and implementing community-based projects throughout the state. We have provided organizations and communities with development plans, grant-writing assistance, business plans, proposal development and project implementation assistance essential to long-term success. UTILITY PLANNING EXPERIENCE Over the past 30 years, our staff has devoted a considerable amount of its individual business and community economic development expertise solving the unique problems that present themselves in the communities and businesses of rural Alaska. Of all the tasks we’ve undertaken, one of the most prevalent has been the universal need for better utilization or management of community energy resources or utilities. For example, working with the Alaska Energy Authority, State of Alaska Village Safe Water and the Alaska Village Electric Cooperative, our team has developed more than 100 operating plans for bulk fuel facilities, electric utilities and water/wastewater utilities undergoing upgrades. Additionally, we provided managerial monitoring and business skills training for approximately 75 bookkeepers and managers for rural bulk fuel facilities and electric utilities. We have worked with Alaska's largest utilities including the Anchorage Water and Wastewater Utility and Municipal Light and Power to develop planning documents, policies and procedures and operations manuals. And, we have worked with coalitions of utilities to advance their collective projects -- Chugachmiut-area villages to develop a strategy for developing utility fees, communities and engineering firms developing new alternative energy projects and Interior Alaska village utilities to assist them in establishing a utility cooperative. Sample client engagements for Aurora Consulting, and its principal Ann Campbell, include: Alaska Energy Authority (AEA) – Rural Energy Project Business Planning, 2001 to Present Aurora Consulting provides professional consulting services to the Alaska Energy Authority under a Term Services Contract to assist the Alaska Energy Authority with the development of a Denali Commission approved business operating plan template and associated documents for rural energy projects. Aurora Consulting assists the Rural Energy Group with preparing templates for business plans, operation and maintenance schedules, repair and replacement schedules, regulatory agency coordination and other business related tasks for both the Bulk Fuel Upgrade program and the Rural Power System Upgrade program. Additionally, Aurora Consulting provides follow-up monitoring and evaluation of completed rural energy projects, as well as on-going business training and development. Additionally, working with the Alaska Energy Authority’s design/engineering term contractors, Aurora Consulting has provided a variety of business planning services for rural bulk fuel and electric utility operations, including the development of business operating plans for the communities of Utility Business Planning & Training 2 Experience & Expertise Akiachak, Akhiok, Akutan, Atka, Atmautluak, Beaver, Bettles, Buckland, Chalkyitsik, Chefornak, Chenega Bay, Chignik Bay, Chitna, Clarks Point, Crooked Creek, Deering, Diomede, Egegik, Elfin Cove, Ewkok, False Pass, Fort Yukon, Golovin, Gustavus, Hoonah, Iguigig, King Cove, Kokhanok, Kongiganak, Koyukuk, Kwethluk, Kwigillingok, Karluk, Larsen Bay, Levelock, Manokotak, Nanwalek, Napakiak, Nelson Lagoon, Newtok, Nikolski, Nikolai, Nelson Lagoon, Newhalen, Newtok, Nikolski, Pedro Bay, Pelican, Point Baker, Port Lions, Pilot Point, Port Heiden, Ruby, Seldovia, Stony River, Sleetmute, Takotna, Tenekee Springs, Tuluksak, Twin Hills, Tyonek, Unalakleet, Venetie, White Mountain, Whitestone and many others. Through the process of developing these services to the Alaska Energy Authority, Aurora Consulting has worked closely with the rural communities, the Alaska Energy Authority and its contractors, and the Denali Commission; performed a variety of research and analysis tasks; conducted interviews of project participants and engineering firms; and communicated findings back in well organized and understandable oral, written and electronic formats. The level of assistance provided requires excellent communication skills and a broad understanding, interpretation and application of the local, state and federal utility codes and regulations, operating policies and procedures and application and governance of these at the local level. STG, Inc. – Nome/Unalakleet Wind Energy Project Planning Working with STG, Inc., our team developed an alternative energy grant application for a wind energy project for Nome and Unalakleet and coalesced the myriad project elements into a cohesive plan, identified and quantified economic and public project benefits and identified project operational and maintenance costs as well as other operational issues. These efforts resulted in an award of $8 million in grant funds for construction of the wind project. Following up as the project was constructed, our team worked with STG, Inc. and the Unalakleet Valley Electric Cooperative to develop a Wind Project Business Plan that provided a guideline for the electric cooperative’s maintenance, operation and sustainability of the wind project. The Plan included minimum estimates of operation and maintenance needs and costs, general and administrative costs, depreciation and/or renewal and replacement needs and costs, an average per kilowatt hour (kWh) charge and total electrical costs. UTILITY TRAINING EXPERIENCE Much of our experience includes training and teaching adult learners new skills, processes and concepts. Whether it is teaching a group of people how to function as a Board or a Council, a group of first-time business owners how to develop marketing strategies or schooling adults on the finer points of managing a utility’s/facility’s business, our team works to bring out the best methods for problem solving or to stimulate creating thinking as the end result. We develop training programs that are customized to meet a client’s needs. Programs range in size and scope and may include a three-day customer service training for a hotel property, a 40-hour business skills training for rural utility managers or a two-day marketing training for small business owners. We develop highly engaging, interactive training programs geared to today's adult learners. We specialize in presenting complex concepts in a manageable, understandable manner, thereby allowing for a broader and more successful readership or training experience. Our expertise in communicating a difficult idea from a more understandable perspective, allows for more people to "get it." Sample client engagements for Aurora Consulting, and its principal Ann Campbell, include: Utility Business Planning & Training 3 Experience & Expertise Management Guides: Electric Utility/Bulk Fuel Upgrade Business Operating Plan" – April 2008 Under the guidelines of Denali Commission funding, a funded energy project is required to have a business plan that outlines how the Denali Commission-funded project will be operated and maintained and how the facility will be replaced and renewed over a period of years - 40 years for rural energy projects. Aurora Consulting has assisted the AEA and rural communities with the development of over 75 business operating plans as well as follow-up classroom and on-site business plan training. As part of the training effort, Aurora Consulting developed a "Management Guide: Bulk Fuel Upgrade Business Operating Plan" and a "Management Guide: Electric Utility Upgrade Business Operating Plan" to provide management information and tools for a variety of business management topics - including reporting requirements, price-setting, fuel inventory management, budgeting and depreciation. For many rural utility managers and bookkeepers, this is a first-time introduction to these complicated, multi-step procedures and practices. Aurora Consulting specializes in presenting complex concepts in a manageable, understandable manner, thereby allowing for a broader and more successful readership or training experience. Our expertise in communicating a difficult idea from a more understandable perspective allows for more people to "get it." Taking the accounting concept of "depreciation" for example, and breaking it down into very basic terms has been extremely successful in the AEA training settings and manuals. Bulk Fuel/Electric Utility Bookkeeper/Manager Training Courses – 2004 to 2010 Alaska Energy Authority/State of Alaska, Dept of Community & Economic Development Aurora Consulting, and its principal Ann Campbell, conducted Bulk Fuel Bookkeeper/Manager Training courses for the Alaska Energy Authority (AEA) and the State of Alaska, Department of Community and Economic Development (DCED) utilizing the AEA/DCED training materials. These courses included the material on financial management, personnel management, accounting and bookkeeping (including budgeting, chart of accounts, setting up accounts, accounts receivable and accounts payable), operations management and bulk fuel facility business operating plans referenced in the RFP (which were developed by Aurora Consulting under contract to DCED in 2004). Subsequently, in 2008, Aurora Consulting, under contract to the Alaska Energy Authority, developed a Bulk Fuel Business Training class and an Electric Utility Business Training class which combined the concepts and materials from the manager class and the bookkeeping class. The audiences for these classes were rural Alaskan adults who were either working, or would be working, for a bulk fuel facility that had a required business operating plan as a condition to receiving funding for an upgrade to their facility. Each of these courses was 32 hours and averaged 12-14 participants. Subsequent follow-up technical assistance was provided in their home communities – including (1) an assessment of current bulk fuel management identifying areas of need and noncompliance with Denali Commission approved business operating plans, and (2) technical assistance in areas identified by the assessment. Aurora Consulting worked closely with AEA staff with the coordination of course development and delivery and outcomes of follow-up training. Bulk Fuel Manager Training - May 2004, May 2005, November 2005, April 2007 Bulk Fuel Bookkeeper Training - May 2004, April 2005, October 2005, March 2007 Electric Utility Manager/Bookkeeper Training – April 2007 Bulk Fuel Business Training - April 2008, November 2008 Electric Utility Business Training - May 2008, March 2009 B. Cost Worksheet  Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11 Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements. 1. 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) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 3 diesel generators ii. Rated capacity of generators/boilers/other 117, 117, 54 kW iii. Generator/boilers/other type Diesel generation iv. Age of generators/boilers/other 3 years v. Efficiency of generators/boilers/other 13.6 kWh per gallon on 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 30,000 ii. Annual O&M cost for non-labor 20,000 c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh]554,137 (FY 2011 PCE Figures) ii. Fuel usage Diesel [gal]40,753 (FY 2011 PCE Figures) Other iii. Peak Load 115 kW iv. Average Load 62 kW v. Minimum Load vi. Efficiency 13.6 kWh per gallon on diesel fuel vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu]20,000 gals in buildings which will have electric heat installed ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11 3. 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] 300kW Hydro-electric b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh]554,137 (excluding new electric heat) ii. Heat [MMBtu]430,000 kWh (current anticipated demand) 812,000 kWh (additional available energy as needed) 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 None 4. Project Cost a) Total capital cost of new system $3,825,000.00 b) Development cost $580,000.00 c) Annual O&M cost of new system $50,000.00 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 40,753 gal/year ii. Heat 15,000 gal/year (assuming buildings with electric heat presently use 20,000 gal) iii. Transportation b) Current price of displaced fuel $197,923/year (Assuming $3.55/gallon) c) Other economic benefits O&M on the diesel generation will be significantly reduced. d) Alaska public benefits Emissions and noise from the diesel plant will be reduced. 6. Power Purchase/Sales Price a) Price for power purchase/sale $0.60/kWh 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.21 Payback (years)17 years   C. Grant Budget Form  Renewable Energy Fund Grant Round V Grant Budget Form Summary 8/26/2011 Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project.See Attached Milestone list. ) Summary of Costs Reconnaissance $0 $0 $0 Feasibility 10/15/2011 $185,000 (Round II RE)$0 $185,000 Design and Permitting 7/15/2012 $395,000 (Round IV RE) $500,000 (Land)In-kind $895,000 Construction 9/15/2014 $3,325,000 -$3,325,000 $0 $0 $0 $0 $0 TOTALS $3,905,000 $500,000 $4,405,000 Direct Labor & Benefits $50,000 $50,000 Travel & Per Diem $25,000 $25,000 Equipment $42,000 $42,000 Materials & Supplies $18,000 $18,000 Contractual Services $665,000 $665,000 Construction Services $3,105,000 $3,105,000 Other $500,000 Land $500,000 TOTALS $3,905,000 $500,000 $4,405,000 Notes: Milestone or Task Anticipated Completion Date TOTALS Budget Categories: 1. $303,000 funded from RE Round II + $277,000 from RE Round IV for a total of $580,000. RE- Fund Grant Funds Grantee Matching Funds Renewable Energy Fund Grant Round V Grant Budget Form Reconnaissance 8/26/2011 RE- Fund Grantee Matching Source of Matching Funds: Grant Funds Funds Cash/In-kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project.See Attached Milestone list. ) Reconnaissance "Preliminary Evaluation of Hydropower Alternatives for Chitina, Alaska" APA Completed (1981)--- "Chitina Hydro Evaluation " EPS Completed (2003)--- "Fivemile Creek Inspection and Concept Design " Polarconsult.Completed (2007)--- TOTALS $0 $0 $0 Direct Labor & Benefits Travel & Per Diem Equipment Materials & Supplies Contractual Services Construction Services Other TOTALS $0 $0 $0 Notes: Budget Categories: 1. Reconnaissance is essentially complete with the exception of land use, permitting, and environmental analysis that will be covered in the Conceptual Design Report and Design & Permitting. Milestone or Task Anticipated Completion Date TOTALS Renewable Energy Fund Grant Round V Grant Budget Form Feasibility 8/26/2011 RE- Fund Grantee Matching Source of Matching Funds: Grant Funds Funds Cash/In-kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project.See Attached Milestone list. ) Feasibility Conceptual Design Report (CDR) (Includes; Identification of land and regulatory issues, preliminary permitting and environmental analysis, conceptual design analysis and cost estimate, final report and recommendations) 10/15/2011 $115,000 -$115,000 Geotechnical Investigation and Report 10/15/2011 $50,000 -$50,000 Conceptual business and operations plan 10/15/2011 $20,000 -$20,000 TOTALS $185,000 $0 $185,000 Direct Labor & Benefits $0 Travel & Per Diem $0 Equipment $0 Materials & Supplies $0 Contractual Services $185,000 -$185,000 Construction Services $0 Other $0 TOTALS $185,000 $0 $185,000 Notes: Milestone or Task Anticipated Completion Date TOTALS Budget Categories: Renewable Energy Fund Grant Round V Grant Budget Form Design and Permitting 8/26/2011 RE- Fund Grantee Matching Source of Matching Funds: Grant Funds Funds Cash/In-kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project.See Attached Milestone list. ) Design and Permitting Permitting and Final environmental assessment 5/15/2012 $15,000 -$15,000 Land acquisition 5/15/2012 -$500,000 In-kind $500,000 Site Control 5/15/2012 $65,000 -$65,000 65% Design 3/15/2012 $180,000 -$180,000 Final Design 7/15/2012 $120,000 -$120,000 Final business and operational plan 7/15/2012 $15,000 -$15,000 TOTALS $395,000 $500,000 $895,000 Direct Labor & Benefits $0 Travel & Per Diem $0 Equipment $0 Materials & Supplies $0 Contractual Services $395,000 -$395,000 Construction Services $0 Other (Land)-$500,000 $500,000 TOTALS $395,000 $500,000 $895,000 Notes: Milestone or Task Anticipated Completion Date TOTALS Budget Categories: Renewable Energy Fund Grant Round V Grant Budget Form Construction 8/26/2011 RE- Fund Grantee Matching Source of Matching Funds: Grant Funds Funds Cash/In-kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project.See Attached Milestone list. ) Construction Bid documents and contractor selection 11/15/2012 $10,000 -$10,000 Administration NA $150,000 -$150,000 Construction Tasks: Improvements to Fivemile Mine Road and Construction of access road along penstock route 9/30/2013 $350,000 -$350,000 Blasting at Intake and Portions of penstock route 9/30/2013 $250,000 -$250,000 Low Pressure HDPE Penstock 9/30/2013 $350,000 -$350,000 Powerhouse Building (20'x20')10/30/2013 $270,000 -$270,000 Turbine 6/15/2014 $330,000 -$330,000 Intake / Diversion Structure 7/30/2014 $105,000 -$105,000 Edgerton Highway penstock crossing 8/15/2014 $35,000 -$35,000 High Pressure Welded Steel Penstock 8/30/2014 $1,030,000 -$1,030,000 Electrical Controls and Transmission Line 8/30/2014 $385,000 -$385,000 Final Testing and Project Close Out 9/15/2014 $60,000 -$60,000 TOTALS $3,325,000 -$3,325,000 Direct Labor & Benefits $50,000 -$50,000 Travel & Per Diem $25,000 -$25,000 Equipment $42,000 -$42,000 Materials & Supplies $18,000 -$18,000 Contractual Services $270,000 -$270,000 Construction Services $2,920,000 -$2,920,000 Other $0 -$0 TOTALS $3,325,000 $0 $3,325,000 Notes: Milestone or Task Anticipated Completion Date TOTALS Budget Categories:   D. Letter Demonstrating Local Support  F. Authorized Signers Form